# F U T U R E R E A DY
Empowering
customers
for tomorrow's
world
INTEGR ATED ANNUAL REPORT
2020-21
THE TATA POWER COMPANY LIMITED
About this report
We, at The Tata Power Company Limited, welcome our stakeholders to our second
Annual Integrated Report FY2020-21 (FY21). In furtherance to our FY2019-20 annual
integrated report, this report presents our financial and non-financial performance from 1st April
2020 to 31st March 2021. The report aims to provide our stakeholders with a concise and complete
assessment of Tata Power’s contribution nationally, our vision, performance against strategy,
and value creation journey.
REPORTING BOUNDARY AND SCOPE
The report covers the business activities of Tata Power across
its business clusters and all its subsidiaries. This includes our
business of renewables, conventional generation, transmission
and distribution, next-gen power solutions, power trading,
renewable energy products, utility scale solar EPC and services
business. We aim to focus on material topics that have the
potential to influence our business operations and long-term
value creation for our stakeholders. Furthermore, in FY21
we have strengthened our long-term strategy with defined
sustainability goals and targets. We have not made any material
restatement in this report.
FRAMEWORKS REFERRED
Our Integrated Report is guided by the principles and
requirements of the
Integrated Reporting
International
Council’s (IIRC) Integrated Reporting Framework. The
content of the report is also in accordance with the Global
Reporting Initiative (GRI) standards: Core option, with linkages
to India’s National Voluntary Guidelines (NVG) on Social,
Environmental and Economic responsibilities of business.
The report also provides linkages to the United Nations
Sustainable Development Goals (UN SDGs) and United
Nations Global Compact Principles (UNGCP). 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.
INTEGRATED THINKING
At Tata Power, we actively adopt integrated thinking to build
robust internal processes and consistently work towards
sustainable business operations. This approach is showcased
through our value creation model, which provides a holistic
view of the Company’s use of resources and effect on its 6
capitals, thereby strengthening our viability and resilience
over time.
OUR APPROACH TO INTEGRATED REPORTING
Our integrated report aims to showcase a balanced and
transparent outlook of how we create, preserve, or enhance
value over time. The report also introduces our stakeholders to
the Company’s business model, strategy and the use of various
capitals to highlight how we translate promise into action.
In furtherance to the Stakeholder Engagement and Materiality
Assessment (SEMA) carried out in FY20, we conducted a
materiality review in FY21 to understand matters that have
become more relevant during the year. Our prioritised material
topics define the contours of this report and are further
emphasised across our six capitals to showcase how we aim to
strengthen our value creation journey.
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
The non-financial information disclosed in this report has
been independently assured by Ernst & Young Associates LLP
(EY). The independent assurance statement can be accessed
on page 465 of this report. The consolidated annual financial
statements have been audited by M/s. S R B C & CO. LLP (SRBC).
FEEDBACK
Your valuable insights and feedback on this report would help
us to strengthen our future reporting initiatives. Your inputs
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.
This report was prepared under unprecedented challenges due to the COVID-19 pandemic. We, at The Tata Power Company Limited would like to
take this opportunity to thank all stakeholders involved for the Integrated Report FY21. We would like to express our gratitude towards colleagues
involved across essential services during this pandemic.
Manufactured Capital
Intellectual Capital
Our robust business structure and operational
processes, inclusive of our physical assets as
well as our products and services that help us to
develop energy efficient solutions.
Our brand and product value, R&D, innovation
capacity
that
support us to develop smart energy solutions
empowering our customers to be future ready.
strategic partnerships
and
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Page no. 66
Human Capital
Social & Relationship Capital
and
agile workforce
vibrant work
Our
environment as well as expansive skill-set and
technical know-how that enable innovative and
sustainable solutions for our customers and long-
term value creation for our stakeholders.
Robust stakeholder relationships, inclusive of the
local communities in which we operate, to build a
strong, holistic and thriving society and economy.
We empower our customers with cost effective
energy efficient solutions for brighter tomorrow.
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Page no. 86
Financial Capital
Natural Capital
Our promoter’s equity, funding from investors,
lenders that support the
debt capital from
progress of our business activities, ensuring
sustained value for all our stakeholders.
The responsible use of natural resources across
our business operations and key operational
efficiency initiatives which enable us to reduce
our carbon footprint and enhance our bio-
diversity conservation measures.
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Page no. 110
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The Tata Power Company Limited Integrated Annual Report 2020-21
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Overview
6
8
10
12
13
14
16
CEO and MD’s Message
Performance Highlights
Business at a Glance
National Reach
Awards and Accolades
Key Milestones
Corporate Governance
CEO AND MD’S MESSAGE
Being proactive. Staying resilient.
The year 2020 was fraught with multiple
challenges and an uncertain global outlook.
Yet, we collectively stood strong
in the
face of adversity, demonstrating resilience,
innovation and agility across the organisation.
As a purpose driven Company, we tapped into
all our resources and capabilities to produce
for our stakeholders
actionable
and help combat a profound health and
humanitarian crisis. The road ahead is clear
and we are committed to achieving equitable
growth that makes a positive difference to our
people and our planet.
impact
Dear Stakeholders,
The year 2020 has been like no other before in living memory,
characterised by extraordinary challenges. However, it has also been
a year in which we recommitted ourselves to our vision of providing
future ready energy solutions to our customers to empower them for
tomorrow’s world. Our employees and partners were not discouraged by
our strategic business objectives and meeting the evolving requirements
of our customers. As India went into one of the world’s largest COVID-19
lockdowns, our employees ensured uninterrupted electricity supply
across the country. We proactively adopted strategic measures to
combat the adverse impacts across our operations, workforce, and
communities. Despite downside risks posed by COVID 2.0, we remain
cautiously optimistic and will continue to build a resilient tomorrow and
advance our sustainability agenda.
Building future-ready solutions
In FY21, we took effective steps to de-leverage our balance sheet.
This strategy resulted in greater investor confidence in our performance
and our market capitalisation increased by 214% from ₹10,496 crore in
FY20 to ₹32,990 crore in FY21. Furthermore, we raised ₹2,600 crore by way
of issuing equity share capital on preferential basis to Tata Sons Private
Limited ("Tata Sons") reinforcing their commitment to strengthening
our Company’s financials by increasing their shareholding from 35.27%
in FY20 to 45.21% in FY21. The completion of sale of the South African
assets, shipping assets as well as defence business and the consequent
reduction in debt and a corresponding upgrade in credit ratings has
enabled the Company to further reduce financing costs. This has
accelerated our ambitious plans to expand our business portfolio across
renewables, transmission and distribution, as well as customer centric
businesses of Solar Rooftops, Solar Pumps, Microgrids, EV charging,
Energy Services (ESCO), Home Automation and Floating Solar, amongst
others. Your Company achieved a major strategic milestone by winning
bids in the privatisation of the Discoms in Odisha. This has expanded our
operational footprint and increased our customer base in distribution to
12 million customers.
In line with India’s Nationally Determined Contributions (NDC), we have
furthered our vision for a sustainable tomorrow with our commitment to
achieving Carbon Neutrality before 2050. We are increasing our efforts
in this direction with our commitment to set emission reduction targets
in line with the Science Based Targets initiative (SBTi). Additionally,
we plan to phase out coal based capacity and expand our clean and
green capacity to 80% by FY30. As India’s largest integrated solar EPC
company, we delivered strong performance in FY21 with Tata Power
Solar’s order book over ₹8,700 crore and a capacity of around 2,800
MW. This achievement also strengthens our position as the No. 1 Solar
EPC player for seven years in a row. As of date, we have five renewable
projects registered under the Clean Development Mechanism (CDM)
programme by United Nations Framework Convention on Climate
Change (UNFCCC). It is noteworthy that 87,351 Certified Emission
Reductions (CERs) were traded from these projects in FY21, generating
around ₹1.77 crore gross revenue. #Futureready for a cleaner tomorrow,
we aim to capitalise on opportunities across hybrid and offshore wind
projects, floating solar, hydrogen fuel and strengthen our partnerships
for battery storage projects.
We believe, a key step towards our transition towards carbon neutrality
is to make sustainable products and services more affordable and
accessible to our customers. This will enable us to strengthen our current
stakeholder relationships and expand a suite of products and services
that make our business more resilient as we move into the next decade
of sustainability. With a deeply entrenched customer centric strategy, we
continue to leverage innovation and technology to develop affordable
and low carbon energy solutions for our customers. We also continued
to strengthen our investments in SMART grid technologies to ensure
an efficacious and resilient network as well as identified opportunities
to transition towards an Energy as a Service (EaaS) business model.
Strengthening our position as a B2C company, we continue to leverage
smart choices to light up the lives of our customers in a more sustainable
manner.
Driving valued impact, we stand by our responsible procurement
practices across the value chain. We are committed to local sourcing and
increased ESG transparency with our Business Associates (BA). We also
encourage local businesses with 99% of non-fuel procurement locally
sourced in FY21. Additionally, 46% of our overall procurement budget,
including fuel was spent on local suppliers. We thus aim to minimise any
adverse environmental and social impacts across our value chain.
Energised by our teams to deliver impact
Caring for our people and the communities we work with is deeply
ingrained in our core values. We focus on upskilling and reshifting our
teams across functions and businesses to enhance innovation, enable
positive impact and light up the lives of our customers across the nation.
We remain committed to fuel each and every employee’s passion, hone
their inherent talents and empower a diverse and inclusive workplace.
In FY21, we continued to advance diversity and inclusion across our
businesses and leadership. By enabling supportive gender diversity
policies, women at Tata Power represent 8% of our total workforce in
FY21. Additionally, women represent 31% of selected candidates in FY21
across campus recruitment.
With workforce mobility and employee well being a critical issue in
FY21, we further strengthened our Business Continuity Plan (BCP) in
response to the COVID-19 pandemic. This enabled effective operational
preparedness and proactive measures to ensure the safety of our
employees, while they worked hard to keep the power on in each and
every home. Even during these unprecedented times, our employees
remained steadfast in our vision to ensure sustainable, affordable,
and innovative energy solutions for all our stakeholders. Their support
enabled us to accelerate our own transformation to a new energy world.
To enable a seamless transition to the new work from home paradigm,
we leveraged on various training modules and programmes to bolster
digital transformation across the organisation.
We continue to build deeper partnerships with our stakeholders and
drive positive impact across communities. Bolstering our Corporate Social
Responsibility (CSR) vision and thrust areas, we aim to positively impact
30 million lives directly and through the enabling community institutions
around the regions we operate in. In FY21, our CSR expenditure stood at
₹39.24 crore with around 17,000 employees volunteering 57,257 hours
to enable positive impact across communities. Furthermore, all our CSR
initiatives are aligned to the United Nations Sustainable Development
Goals (UN SDGs). We also encouraged inclusivity across our CSR
interventions with 56% of our CSR beneficiaries being women in FY21.
In our endeavour to transform India’s rural landscape, we continued
“Despite downside risks posed by
COVID 2.0, we remain cautiously
optimistic and will continue
to build a resilient tomorrow
and advance our sustainability
agenda.”
to install microgrids across 200 villages, with value added services
implemented for our rural customers, including EMI schemes, Energy
Efficient Applications and Micro Financing Institute (MFI) linkage for
commercial and industrial customers.
Going beyond our thrust areas, we continued to work relentlessly
to support responsible citizens in augmenting energy and resource
conservation across the country. Owing to the pandemic, we could not
conduct on ground programmes but capitalised on digital platforms to
introduce ‘E-learning Fridays’ and bi-weekly webisode series for children
and their parents. These efforts encouraged people to adopt sustainable
living practices amid the lockdown with a successful 35,000 views across
the webisode series.
Transforming sustainably to empower millions
We will continue to draw on our collaborative spirit to transform and
ensure the resilience of our Company through new challenges in the
coming years. There is much to do and we have a clear direction and a
strategy for the future. I have strong faith in our leaders and employees,
who continue to effectively execute strategy and deliver sustainable
value to all our stakeholders.
Before I conclude, I must extend my heartfelt gratitude to all our go-
getters-frontline workers who overcame challenges posed by the
pandemic to ensure uninterrupted power supply to millions of citizens
across the country. We will continue to focus on sustainable growth while
delivering future ready solutions to our customers and empowering
the nation.
Yours sincerely,
Dr. Praveer Sinha
CEO & MD
The Tata Power Company Limited
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The Tata Power Company Limited Integrated Annual Report 2020-21
#Futureready: Empowering customers for tomorrow’s world
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements PERFORMANCE HIGHLIGHTS FY21
Delivering with responsibility
As India’s largest integrated power company, we aim to be the partner of choice for all our
stakeholders and usher in a future of smart energy solutions for our customers
The integrated and responsible use of our
Natural, Financial and Manufactured capitals
boosts our efforts to provide smart, future
ready energy solutions for our customers
We create a culture of innovation, facilitating
our inspired workforce to develop energy
efficient
sustainable
solutions
technologies
and
We engage and empower our customers and
other stakeholders to embrace tomorrow’s
smart energy solutions
Responsible resource
consumption
Robust financial growth
Enhanced generation &
distribution of power
0.687 tCO2e/MWh
Carbon intensity
₹33,079 crore
Revenue generated
31%
Clean & green capacity
4 Discoms
acquired
in Odisha
7.5%
reduction in coal consumption
₹1,439 crore
Profit After Tax
500+ MW
Rooftop solar
30,000+
Solar pumps
Diverse & talented workforce
Innovations to deliver operational excellence
8.6%
New employee hire rate
40 member
Innovation council across divisions
20%
women leaders on Tata Power’s
Board of Directors
6
patents filed in FY21
Improving the lives of our customers and communities
532 Public EV charging points
in over 92 cities, showcasing our
commitment towards green mobility
installed
161 microgrids
Commissioned with over 4.8 MW
installed capacity, building a future ready
rural India
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The Tata Power Company Limited Integrated Annual Report 2020-21
#Futureready: Empowering customers for tomorrow’s world
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements BUSINESS AT A GLANCE
Enabling smart energy solutions
for a future ready customer
Our Businesses
Our Vision
Our value generated outcomes
At Tata Power, we aim to translate promise into action and
build a future that supports sustainable energy transition. With
a 107 year old legacy, we continue to empower customers to
be #Futureready and pave the way for a smarter and greener
tomorrow. Driven by the ambition to contribute to the global
agenda of sustainable development, our vision and innovation
driven culture enable us to leverage sustainable solutions
to become a benchmark in the utility sector. Our integrated
presence across the energy value chain has been further
strengthened with our diverse business portfolio supporting our
ambition as the first power utility in India to commit to ‘Carbon
Neutrality’ before 2050. 1 We have a focused 3-D framework
of Decarbonization, Decentralization and Digitalization.
Additionally, to foster collaborative growth, we regularly interact
with government bodies, institutions, NGOs and industry players
across a myriad of member platforms.
Power Supply
With strengthened partnerships and a
collective vision to deliver uninterrupted
power supply, Tata Power goes beyond
the meter to deliver solutions that
enhance
and
satisfaction with presence across the
entire value chain.
customer experience
solar
India’s undisputed
Solar Rooftops
As
rooftop
leader, Tata Power provides Engineering,
Procurement and Construction
(EPC)
India, across residential,
solutions pan
commercial, industrial and institutional
consumers.
Solar modules and cells
As one of the globally recognised Tier-1
bankable solar module manufacturers,
we consistently augment technology
i n n o v a t i o n w i t h c u t t i n g e d g e
manufacturing capabilities.
Solar RO systems
To address the challenge of availability
and accessibility to clean and safe
drinking water, Tata Power provides
solar powered water purifier solutions
with the latest technologies of Reverse
Osmosis (RO) or Ultra Filtration (UF) in
remote and rural India.
Creating an empowered
workforce driven by passion
& purpose
‘Leadership with Care’ for all
stakeholders
EV Charging
Tata Power drives innovative and
seamless Electric Vehicle (EV) charging
experiences for its customers across
Home, Offices, Malls, Hotels, Retail
Outlets and places of public access,
enabling green mobility.
Solar Pumps
Tata Power provides a range of sustainable
solar water pumps that provide myriad
solutions to empower communities and
drive the renewables growth agenda of
India.
Microgrids
To augment the provision of dependable,
affordable and clean power supply to
rural households and enterprises, Tata
Power continues to scale up innovative
microgrid
robust
partnerships and unique collaborations.
solutions
through
Home automation solutions
In our endeavor to drive energy
efficiency, we offer innovative home
automation solutions
for all our
consumers, enabling the convenient
and remote use of home appliances
along with safe and satisfied user
experience.
Utility scale solar EPC
As India’s largest integrated solar EPC
Company, TPSSL manufactures solar
cells and modules and provides end
to end solutions to our customers for
establishing utility scale rooftop and
other solar projects.
Our memberships and associations are provided in Annexure 1. We have 59 subsidiaries (inclusive of 7 foreign-based), 33 Joint Ventures (JV) and 5 associates
which are further detailed in Annexure 2. Of the subsidiaries, 3 companies have been classified as JVs under Indian Accounting Standards (Ind AS).
1 https://www.tatapower.com/pdf/investor-relations/edelweiss-esg-conference-mar2021.pdf
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The Tata Power Company Limited Integrated Annual Report 2020-21
#Futureready: Empowering customers for tomorrow’s world
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Renewable Energy Generation
Empower a billion lives
through sustainable,
affordable and innovative
energy solutions
Transmission & Distribution
Our Mission
Keeping the customer at the
center of all we do
Operating assets and
executing projects at
benchmark level through
technology & innovation
Sustainable growth with a
focus on profitability and
market leadership
Manufacturing
Utility scale solar EPC
Conventional Energy Generation
New Business
Power trading
Services Business
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements NATIONAL REACH
AWARDS AND ACCOLADES
Powering India at scale
Winning at the centre stage
Tata Power has a significant global footprint with 12,808 MW
generation capacity. Together with our subsidiaries and Joint
Ventures (JVs), we have built a strong presence across the entire
value chain of conventional and renewable energy as well as next-
generation energy solutions for customers. We have now begun
to expand in the Energy as a Service (EaaS) space. Tata Power’s
holding structure is detailed in the AOC-I on page 441. For
FY21, there have been no significant changes in the location
of suppliers, structure of the supply chain or relationships with
suppliers. The share capital structure has undergone a change
since last year with the shareholding of Tata Sons increasing
from 35.27% in FY20 to 45.21% in FY21.
14
17
16
Delhi
12
6
2
Powerlines
Ajmer
1
Mumbai
3
10
13
4
Odisha
9
11
15
5
8
7
1. Gujarat | 4,444 MW
10. Madhya Pradesh | 174 MW
4,150
194
100
130
44
2. Uttar Pradesh | 1,981 MW
11. West Bengal | 120 MW
1,980
1
3. Maharashtra | 1,801 MW
447
239
930
185
120
12. Delhi | 111 MW
108
3
13. Bihar | 41 MW
4. Jharkhand | 1,725 MW
41
1,597
120
8
14. Punjab | 36 MW
18
5. Karnataka | 616 MW
36
Fuel Mix (Both Domestic + International)
8,859 MW
12,808 MW
Total
Thermal
932 MW
375 MW
Wind
Waste Heat Recovery
/BFG
880 MW
Hydro
1,762 MW
Solar
Distribution of installed capacity (Domestic & International)
566
50
15. Telangana | 16 MW
6. Rajasthan | 400 MW
16
215
185
16. Haryana | 1 MW
7. Tamil Nadu | 373 MW
1
253
120
17. Uttarakhand | 2 MW
8. Andhra Pradesh | 305 MW
69%
Thermal
31%
Clean & Green
14%
Solar
7%
Hydro
7%
Wind
3%
Waste Heat Recovery
/BFG
205
100
9. Odisha | 175 MW
135
40
2
18. Andaman and Nicobar Islands
| 0.2 MW
0.2 MW
Ranked as
one of India’s most respected
companies by Business World
Recognized as one of
the most sustainable company of India
by Sustain Labs Paris with a rank of 13 and A+ rating across
31 diverse parameters
Honored with
best risk management framework
& systems award
- Power & Risk Governance Award
Honored with Edison award
for its Club Enerji #switchoff2switchon campaign under
social innovation category and social energy solutions
subcategory
Won a gold at Brandon Hall 2020 human
capital management excellence awards
under “best advance in competencies and skill
development” category
Won 5 platinum and 5 gold awards
at the CII National Kaizen Competition-2021 and a
platinum award at CII National 3M Competition-2021
Received Environment Excellence Award
by Indian Chamber of Commerce
Won the best ESG disclosure award
under ESG category midcap at investor relations society
awards held jointly with BSE and KPMG
Won the gold award for
“rooftop solar EPC company of the year”
under industrial category at the India Rooftop Solar
Congress
Won best asset management team
EPC utility solar in the RE Asset Management Awards
ceremony
Won two gold awards for
CSR Initiatives Saheli World (e-com
platform launched during Covid) and
Adhikaar (financial inclusivity) volunteering
in 9th ACEF Asia Leadership Award
Won gold award for best financial
reporting
from Institute of Chartered Accountants of India
Thermal
Hydro
Waste Heat/BFG
Wind
Solar
Distribution
Transmission
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The Tata Power Company Limited Integrated Annual Report 2020-21
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements KEY MILESTONES
A century of leading
with sustainability
Tata Power has been championing
sustainability since its inception
in 1915
1915
Commissioned first hydroelectric power
generating system of 40 MW, subsequently
upgraded to 72 MW at Khopoli
1922
Commissioned second hydro power station of
40 MW, subsequently upgraded to 72 MW at
Bhivpuri
1927
Commissioned third hydro power station of
90 MW, subsequently upgraded to 150 MW at
Bhira
2007
Completed 50.4 MW Khandke wind farm
project
2011
Commissioned 3 MW Mulshi solar plant in
Maharashtra
2012
Commissioned 25 MW solar plant at Mithapur,
Gujarat
2014
Acquired 39.2 MW wind farm near Dwarka,
Jamnagar in Gujarat
Completed commissioning of 32 MW wind
farm project in Maharashtra
Commissioned 28.8 MW solar power project at
Palaswadi, Maharashtra
2015
Commissioned first cross border hydro power
project registered under the United Nation
Framework Convention on Climate Change’s
(UNFCCC) Clean Development Mechanism for
126 MW at Dagachhu, Bhutan
2016
Commissioned 120 MW Itezhi tezhi hydro
power project in Zambia
Strengthened its renewable portfolio by
commissioning 44 MW Lahori wind farm
project in Madhya Pradesh
Acquired 1,010 MW renewable assets
of Welspun
2017
Constructed 187 MW hydro project in Georgia
Increased non-fossil operating capacity to
3060 MW
2018
Integrated EV charging stations in Mumbai
Launched extensive residential solar rooftop
solution across India
Developed 250 MW of solar projects in
Tumkur, Karnataka and commissioned 100
MW Anantapur solar park in Andhra Pradesh
2019
Won 105 MWp bid for one of the world’s
largest floating solar plant to be installed at
Kayamkulam, Kerala
Recognised for addressing the challenge
of open defecation by the Government of
Netherlands
Developed a 100 MW and a 250 MW solar
project in Gujarat
Commissioned 150 MW solar project in
Rajasthan
Partnered with NTT Com-Netmagic to build
50 MW solar power project
Our key achievements FY21
Ū Committed to achieve Carbon Neutrality before 2050.
Ū Reduced carbon intensity in FY21 to 0.687t/Mwh from
0.695t/Mwh in FY20.
Ū 10.4% reduction in SOx emissions in FY21.
Ū No further development of coal based capacity and
phasing out of existing capacities.
Ū Increased our outreach for power distribution in central,
western, southern and northern* parts of Odisha.
Ū Signed a Power Purchase Agreement (PPA) with Tata
Motors Limited, commissioning India’s largest carport
to reduce ~1.6 lakh tonnes of carbon emissions of
Tata Motors in its lifetime.
Ū Signed a PPA with Apollo Gleneagles Hospital,
commissioning biggest carport in Indian Health Sector
to reduce 80 kgs of carbon emission annually.
Ū Collaborated with central railway to launch EV charging
points at Mumbai’s railway stations.
Ū Signed a PPA with The Indian Hotels Company Limited to
provide ~60% of green energy to reduce nearly 22.9
million kg of CO2 emissions.
Ū Signed a PPA with Tata Steel Limited to develop a 15
MW solar project at Jamshedpur, Jharkhand.
Ū TP Renewable Microgrid Ltd. marked its first anniversary
by commissioning 100th solar microgrid project in
Ratnapur, Uttar Pradesh.
Ū Tata Power is the only Indian utility to co-create the first
SDG roadmap for power utilities along with 10 other
global power companies. This was published by the
World Business Council for Sustainable Development
(WBCSD).
Ū Tata Power has successfully completed 50 years of
conservation efforts for the blue-finned Mahseer and
helped increase numbers. The International Union for
Conservation of Nature (IUCN) has acknowledged the
efforts and moved the species from endangered to the
‘least concern’ status.
* northern acquired from 1st April 2021
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The Tata Power Company Limited Integrated Annual Report 2020-21
#Futureready: Empowering customers for tomorrow’s world
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements CORPORATE GOVERNANCE
Custodians of responsible
governance
At Tata Power, we leverage our vision and responsible governance practices to create value for
our stakeholders
Tata Power’s Policies
Corporate Environment Policy
Health and Safety Policy
The status of stakeholder complaints received in FY21 have been
provided below:
Stakeholder
Received in FY21
Satisfactorily resolved by
the management (%)
Corporate Sustainability Policy
Human Rights Policy
Whistle Blower Policy
Responsible Supply Chain
Management Policy
Risk Management Policy
Safety Code of Conduct
Investors
Employees
Vendors
Customer
13
63 (including 9 contract
employees)*
15
1
Further details on our policies are available on www.tatapower.com
*Inquiry is under progress for 2 concerns
100
97
100
100
Mr. Natarajan
Chandrasekaran
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. Kesava Menon
Chandrashekhar
Mr. Hemant Bhargava
Mr. Saurabh Agrawal
Mr. Banmali Agrawala
Mr. Ashok Sinha
Dr. Praveer Sinha
Chairperson
Non-Executive
Non-Independent
Nominee
Independent
CEO & Managing Director
We are guided by the principles of the Tata Code of Conduct and
the Tata Business Excellence Model. These principles guide the
organisation’s growth along a sound and sustainable pathway.
Our esteemed Board comprises of experts with rich experience
across diverse fields.
Our Board represents the highest authority across the Company’s
governance and management paradigm.
It continues to
exemplify trust, transparency and
integrity, supported by
Tata Power’s ethical and inclusive Corporate Governance (CG)
mechanism. This responsible approach to governance enables
us to maximise value for all our stakeholders in line with a
balanced and sustainable strategy to achieve our long-term
business objectives and aspirations.
Ownership Structure
46.86%
33.03%
Promoter and
promoter group
Public (Holding)
Public (Institutional
Investors)
53.14%
20.11%
Public (Others)
Sustainability governance
The Board of Directors at Tata Power have guided the
organization’s strategy based on the Company’s external
and regulatory environment, material issues and stakeholder
requirements. We have a robust sustainability model that
is driven by a beyond compliance approach. With our core
objective of ‘Leadership with Care’, we aim to drive initiatives
that are material to the Company and its stakeholders as well as
in line with national thrust areas for development. Furthermore,
we have strengthened our sustainability strategy in line with
our goal to become carbon neutral before 2050. An augmented
element of sustainability to Tata Power’s core governance
structure has paved the way for numerous sustainability related
policies that effectively govern our strategic direction and value
creation process.
We hold periodic sessions during the year to appraise the Board
of Directors on regulatory changes, CSR and sustainability related
matters to gain valued perspective and strategic orientation for
the future performance of the Company. In addition, we have
implemented a Senior Leaders’ Development Programme (SLDP)
in partnership with IIM, Ahmedabad. This is a 15 month on
campus leadership development journey which covers diverse
modules, such as emerging business models, customer centric
strategic planning, digital transformation, design thinking and
disruptive innovation among others. In FY21, we also introduced
e-trainings on ‘‘COVID-19: Building a Resilient Response’, Business
Continuity Management and Managing Shifting Realities and
so on.
Efficacious tax governance
Tata Power carries out a detailed assessment with regard to
the tax planning for the Annual Business Plan (ABP) period,
which ranges from one to five years. The taxation department
at Tata Power is headed by a senior officer responsible for the
tax planning and litigation of Tata Power Group Companies
operating in India. We also ensure a routine tax compliance
which is overseen by the Chief Financial Officers (CFOs) of
respective subsidiaries/joint ventures to maintain consistency
in the Company’s management approach. Actual tax liability
versus the ABP estimation is compared every year and during
the Union Budget exercise, we submit respective representation
to the Government of India, proposing benefits accrued to the
sector and in best interest of the Industry. Tax to the government
is accrued as per relevant provisions and we are humbled to
state that there have been no non-compliances with regard to
taxation, with the exception of any ambiguity in the provision
which would be subject to litigation in the best interest of the
Company.
We track tax compliance details as well as timelines on our
compliance portal which is updated in a timely manner with
the status of compliance against due dates. In order to ensure
the effective monitoring and review of tax compliance, the
compliance report is also provided independently to senior
management by the risk and compliance department. In order
to mitigate unethical or unlawful behaviour, we maintain all tax
workings and positions for future reference and advance tax
payments are made only with the approval from the Financial
Controller (FC) and Chief Financial Officer (CFO). We also prepare
contingent liability statements every quarter and revise all
pending litigations with a regular update of tax positions.
Further information on our Corporate Governance structure and
committees are detailed in our Report on Corporate Governance,
page 184.
Leading with responsibility and empathy
Tata Power employs a responsible approach to enhance
organizational performance across the economic, environment,
social and governance paradigm. We consciously conduct
business in an ethical and fair manner, propagating a corporate
culture that is socially and environmentally responsible. For FY21,
there were no cases pending in line with unfair trade practices,
irresponsible advertising and/or anti-competitive behaviour.
Additionally, there were no cases of corruption with reference to
our employees or our business partners.
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)
• Environment Conservation
• Efficient use of Energy
• Investment in Green Technology
What needs to be done (material to both
stakeholders and us)
Care for our shareholders
and customers
What we are good at doing which is
linked to our business objectives
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
New Technology
Benchmarking.
Going beyond compliance
Architecture of Care
Enablers
Objective and its Elements
Encompassing values
We strongly encourage respect for human rights and the
dignity of all people in line with Tata Power’s core values. We
are humbled to state that there have been no complaints
concerning the rights of indigenous people, child labour, forced
labour, freedom of association, the right of collective bargaining
and gender or social discrimination. Besides, we comply with
product and service regulations in regard to health and safety
impacts, marketing communication as well as information and
labelling. In FY21, there were no pending or unresolved show-
cause notices issued from the Central Pollution Control Board
(CPCB) or State Pollution Control Board (SPCB). At Tata Power,
compliance is fundamental to our value creation story and we
are proud to state that there have been no significant regulatory
fines or sanctions for non-compliance with environmental or
social, local and national laws.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements Our emphasis
on value
Our Strategy
Risk Management
Our COVID-19 Response
Value Creation Model
Sustainable Development Goals
Stakeholder Engagement
20
24
28
40
42
44
46 Materiality Assessment
OUR STRATEGY
Strategically positioned to deliver
value and empower lives
As India’s largest integrated power company, Tata
Power is committed to its vision to ‘Empower
a billion lives through sustainable, affordable
and innovative energy solutions’. We prioritise
long-term value creation to deliver sustainable
outcomes and equitable benefits to all our
stakeholders. In FY21, we conducted a 360 degree
review of business impact on all our stakeholders,
bringing the Environment Social and Governance
(ESG) paradigm and commitment to carbon
neutrality to the core of our business strategy.
At Tata Power, we have an established and integrated approach
to formulate and implement a purpose driven strategy. We
conduct an annual strategy review, enabling efficacious
performance assessment, evaluation of the current strategy and
establishing avenues to capitalize on our stakeholder’s needs. A
thorough assessment of our existing business activities as well as
their interdependence is conducted with regard to the evolving
external and regulatory environment, geo-political challenges,
macro economic environment and innovation, among others.
Our 4 phase approach representing a feedback loop supports
the seamless and effective implementation of our strategy and
forms the core of our strategic planning process.
Translating promise into action
We understand that progress in sustainability is driven by
enhancing value generated for our stakeholders. Building on
our vision, we aim to understand our role in society, our ability
to facilitate enhanced economic activity, progress towards
holistic development and ultimately augment our capabilities
to create value. A strong foundation of our values guided by
our vision and customer-centric approach, enables us to SCALE
new heights and establish robust Strategic Business Objectives
(SBOs) through an interactive feedback loop. We then leverage
our key businesses to strategically translate our SBOs into long-
term sustainable outcomes.
Tata Power’s Vision
Empower a billion lives through sustainable, affordable
and innovative energy solutions.
Our Values
SAFETY
Safety is a core value over which no business
objective can have a higher priority
CARE
Care for Environment, Shareholders, Customers
(both existing and potential), our Community
and our People (our Employees and Partners)
AGILITY
Speed, Responsiveness and being Proactive,
achieved
and
Empowering Employees
Collaboration
through
LEARNING
Building future ready skill sets through learning
and training. Maximise usage of e-learning
platforms
ETHICS
Achieve the most admired standards of Ethics
through Integrity and mutual trust
Tata Power’s Customer-Centric Approach
SCALE new heights
Feedback loop
GATHER & ANALYSE
Encompassing internal
and external analysis
DEPLOY
At an enterprise level
with actionables trickling
down to individual KRAs
SET DIRECTION
By discerning strategic
challenges and
advantages
PLAN
By chalking out clear
strategic objectives and
strategic enablers
Our Strategic Business Objectives and targets
SBO 1
Profitable scale-up of Renewables, Distribution,
Services and Energy Solutions business
Targets
y
y
y Being the leading EV charging network provider in India with over 1 lakh chargers installation
Increase share of clean and green energy in Company's portfolio to 80% by FY30
40 million customer base across distribution businesses by FY26
by FY26
SBO 2
Focus on Sustainability with an intent to
attain carbon neutrality
y Attain Carbon Neutrality before 2050
y Reduce specific fuel consumption by improving operational efficiency
y Benchmark in waste management (Gainful fly ash utilisation)
SBO 3
Maintaining financial leverage at targeted levels
Strengthening of balance sheet by reducing debt to a more sustainable level
y
y Adopt debt-light models through innovative financial engineering and restructuring
SBO 4
Leverage digital platforms to drive new
customer centric businesses
y
y
Establish digital platforms for new businesses like EV Charging, Home Automation and Energy Services
Leveraging data analytics to deliver customized solutions and Value Added Services (VAS) to
customers
y Generating insights from various customer data across businesses to improve offerings
SBO 5
Develop future energy products and solutions
y
Focus on adapting and introducing new models for satisfying energy needs of the customers
y Becoming the one stop solution provider for varied customer needs on energy through integrated
SBO 6
Create an engaged, agile, customer centric
and future ready workforce
offerings
Enhancing employee engagement and targeting to be amongst the employers of choice
y
y Building organizational capabilities to drive customer-centricity
y Create next generation leaders
y
Focus on Diversity & Inclusion
y Nurture existing core competencies and build new competencies in the areas of innovation,
technology and digital platform
SBO 7
Minimizing coal cost under recovery in CGPL
y Optimising the coal cost under recovery through better coal sourcing, optimal blending and
freight management
SBO 8
Set new benchmarks in operational excellence
and financial returns for existing businesses
y Operating plant at optimum efficiency levels and achieving better operational parameters
y Achieve benchmark performance in various operational parameters in Thermal and Hydro plants
y Maximise incentives in regulated business
y Operating RE portfolio at benchmark and above design parameters to increase the yield
y AT&C loss reduction in Odisha Discoms
y
Improve asset performance by maximizing digital initiatives
Leveraging our strategic business objectives to power a sustainable future
Conventional
Energy Generation
Hydroelectric,
Thermal and Waste
Heat Recovery Plants
Renewables
Solar and wind
generation, Solar
cell and module
manufacturing, Utility
scale EPC, Floating
Solar, microgrids Solar
rooftop and pumps
Transmission &
Distribution
Transmission
services, Distribution
services, Demand
Side Management
programmes, Energy
Management Solutions,
SMART meters
Primary Services
Business
O&M Management
Services
Project Management
Services
Corporate
Management Services
Next generation
power solutions
EV Charging solutions,
Home automation,
Smart electrical
appliances, Battery
storage, Round-the-
clock renewables,
Hybrid renewables
Power Trading
Trading power
through exchanges
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR STRATEGY
Aspirations that drive us
forward
At Tata Power, we are always inspired by the challenges and
opportunities and strive to energize our customers for smart,
future ready energy solutions. We take conscious and measurable
actions to transform our business in response to the evolving
needs and preferences of our stakeholders. Additionally, we take
cognizance of the diverse range of stakeholder perspectives to
build our strategy and strengthen our performance.
2025
2026
2030
2050
Pursue 2 GW of solar
and hybrid capacities
annually to grow from
4 GW to 15 GW
353 Villages to be
empowered through
microgrids
Expand clean and green
capacity* to 60%
Achieve 100% water
neutrality and zero
waste to landfill
(biodegradable)
Positively impact 30
million lives
*Clean & green Capacity – Includes wind, solar, hydro and waste heat gas based capacity
Achieve clean & green
capacity* of 80%
Achieve carbon
neutrality
Pursue 2 GW of solar
and hybrid capacities
annually to grow more
than 25 GW
Become 100% water
positive
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements RISK MANAGEMENT
Guiding a sustainable future
At Tata Power, we are committed to building a vibrant and sustainable future. Our Enterprise Risk
Management (ERM) supports an efficient and risk-conscious business strategy, delivering minimum
disruption to business and creating value for our stakeholders.
Risk governance and management
Considering the pervasiveness of
industry risks, diversity
of our business portfolio and geographical locations of our
operations, we have devised a robust Risk Management Policy.
Our process for risk identification is consciously guided by the
Company’s objectives, external environment, industry reports
as well as internal and external stakeholders, among others. This
process ensures that the Company is adequately positioned to
understand and develop mitigation measures as a response
to risks that could potentially impact the execution of our
strategy and ability to create value. In FY21, we implemented
a new concept in our Risk Management System, termed ‘Risk
Velocity’, which measures how fast a risk exposure can impact
the organization. We also ensure regular monitoring of the
mitigation measures for high velocity risks.
Risk Identification and management at Tata Power
Risks are identified across
sector specific, technology,
regulator y, commercial,
financial, business, climate
c h a n g e a n d b u s i n e s s
continuity parameters
We designate a risk owner
and champion responsible
for
structuring mitigation
plans against identified risks
The outcomes of the first two
stages are collectively mapped
into our internal system with
designated responsibilities
and timelines to achieve risk-
related targets
r i s k m a n a g e m e nt
O u r
system enables Cluster Risk
Management Committees
(CRMCs) to ensure seamless
monitoring and review of
current and future risk plans
A Risk Mitigation Completion
Index (RMCI)
is employed
to determine and monitor
the level of completion of
mitigation actions
When the RMCI percentage
is
lower than the target,
the deviation in mitigation
action areas are reviewed for
requisite intervention
Insights
from the risk
mitigation process are
further incorporated in the
risk plan to enable cross
functional learning across
the organization and enable
efficacious risk management
Tata Power’s risk register lays
out concise and complete
details of our identified risks
and mitigation plans
We have also established a Board Risk Management Committee
(RMC) as per SEBI
(Listing Obligations and Disclosure
Requirement) Regulations, 2015 (amended), which constitutes
of 3 Independent Directors and 2 Non-executive Directors.
The RMC met three times in FY21 to review critical risks, which
are additionally monitored at the Cluster Risk Management
Committees (CRMC) level. We also discuss and implement any
corrective actions and revise mitigation plans, as and when
required.
Risk compliance
Our risk management approach lends impetus to ensure
compliance with relevant legislations. Additionally, we have an
established proprietary software to run an effective Compliance
Management System (CMS) that allows for keen monitoring
of the compliance status with regard to applicable laws and
regulations. The CMS at Tata Power also provides a robust
governance structure and a streamlined reporting system that
ensures cohesive compliance reporting to the management.
The regulatory compliance status report is presented to the Tata
Power Board on a quarterly basis.
Compliance Monitoring
Cell (CMC)
Apex Compliance
Committee (ACC)
Chief-Internal Audit &
Risk Management
Business cluster and
corporate function heads
Senior Management
Compliance reports are
regularly updated by the
Compliance Department and
independently reviewed by
senior management, allowing
for efficacious oversight across
compliance practices.
The CMS covers Tata Power
and all material domestic
subsidiaries.
The extensive benefits of
the software capture alerts
that inform us of changes
in laws/regulations, while
also updating the database.
If any legislations are no
longer applicable, they are
accordingly disabled in the
system.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements RISK MANAGEMENT
Our operating context and identified risks
At Tata Power, we have established robust processes to warrant an
efficacious system for Internal Financial Controls (IFCs). The support
of an internal audit function ensures continued effectiveness of
IFCs through a strategic and effective management approach.
Our internal audit team has integrated IFCs into the Risk Control
Matrix of enterprise processes in line with the requirements of
the Companies Act, 2013. These processes are additionally tested
with regard to approved internal audit plans. We also conduct
periodic reviews of the current anti-fraud framework and
Standard Operating Practices (SOPs) to ensure the relevance of
our processes. With our internal audit monitoring and equivalent
actions taken, there are no material adverse observations which
could have a financial or commercial impact or material non-
compliances that have not been addressed. Furthermore, we
employ a Control Self-Assessment (CSA) process which enables
the response of each process owner to be used in order to access
internal controls in each process. This, in turn supports enhanced
process improvement plans and enables certifications from CEO/
CFO for internal controls. Details of our identified risks, mitigation
strategy and linkage to our strategic business objectives are
provided below.
Classification of risk
Description
Mitigation strategy
Strategic Linkage
SBO 1
SBO 8
SBO 4
SBO 5
Sector-specific risk
Ū Poor financial performance of state
Ū Close monitoring of Distribution
Discoms
Companies (Discoms)
Ū Credit worthiness and business
continuity of the customers
Ū Sustained advocacy authorities
Ū Diversification of renewable portfolio
Technology risk
Ū Cyber security risk threatening data
privacy and having the potential to
impede operational transactions.
across various procurers, tariff structures
and states
Ū Automated detection and preventive
solutions
Ū Reinforcement of security policies and
procedures
Ū Enterprise wide training and awareness
programs on information security
Ū Inputs from Computer Emergency
Response Team (CERT) and other private
cyber intelligence agencies
Ū Periodic testing to validate effectiveness
of controls through vulnerability
assessment and penetration testing
Ū Regular internal and external audits
Ū Investment in cyber insurance
Ū ISO27001 certification for Digitalization
& Information Technology (D&IT)
Ū Implementation of Security Operations
Centre (SOC) as service
Regulatory risk
Ū CGPL coal under-recovery
Ū Continuity of businesses post expiry
Ū Advocacy with Ministry and regulatory
bodies at various levels
SBO 7
SBO 8
of PPAs
Ū Water securitization of hydro plants:
Risk of reduced generation
Ū Risk of violating environment norms
Ū Non cost reflective tariff leading to
accumulation of regulatory assets.
Ū New avenues to utilise fly ash in
ready mix concrete, slag cement,
fertiliser among others for 100% ash
utilization, implementation of Flue Gas
Desulphurization plant (FGD)
Classification of risk
Description
Mitigation strategy
Strategic Linkage
Commercial risk
Ū Non-compliance and renegotiations
of PPAs
Ū Risk accumulation in large projects,
EPC business and rooftop solar
Ū Moderation of solar and wind tariff
putting pressure on margin in
renewable sector
Ū Meeting set Aggregated Technical
and Commercial (AT&C) losses in
initial years for Odisha Discoms
Ū Disallowance of costs / schemes in
transmission
Financial risk
Ū Availability of cost- effective capital:
Availability of debt
Ū High leverage: Increased
borrowings over last few years
primarily due to losses in CGPL
Ū Renewal of operating license of
investments
Ū Liquidation of regulatory assets
SBO 1
SBO 5
SBO 8
Ū Policy advocacy at the central and state
level and legal remedial action, selective
bidding and avoiding specific identified
states
Ū Credit risk assessment of private
customers, advocacy for enforcement of
payment security mechanism of Letter
of credit
Ū Mitigation through prudent operations
management, resource optimization and
prudent bidding practices
Ū Focus on installation of new meters and
replacement of faulty meters; increasing
efficiency in billing
Ū Advocacy with State Transmission
Utility (STU)/ regulator for acceptance of
schemes through cost-benefit analysis
Ū Diversification of lenders base
Ū Monetization of non-core assets
Ū Advocacy with relevant government
SBO 1
SBO 3
authorities
Ū Advocacy with regulators and
government for tariff increase
Business Risk
Ū Availability of fuel for thermal plant
Ū Exploration of alternate coal sources
SBO 8
at optimal cost
Climate change and
business continuity
linked risks
Ū Climate change linked transitional
risk: Possibility of capping of carbon
emissions
Ū Climate change linked Physical risks:
Ū For operations located in coastal
area
Ū 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.
Ū Improvement in operational efficiency
SBO 1
SBO 2
SBO 8
Ū Rise in water temperature
for thermal power plants
potentially affecting processes
Ū Extreme weather events such
as floods and draughts, fuel and
water scarcity
Ū Risk of pandemic and other natural
disasters
Ū Installation of pollution control and
energy efficient equipment
Ū Establishment of robust Business
Continuity and Disaster Management
Plan (BCDMP) evidenced through
recertification on ISO 22301:2012 from
the British Standards Institute (BSI)
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Plan. Protect. Enhance (PPE)
Tata Power deployed a ‘PPE’ strategy, further to our Business Continuity Plan (BCP), to safeguard
its employees, stakeholders and the larger community from the adverse impacts of the
COVID-19 pandemic.
COVID-19 extracted a huge toll on lives and livelihoods of millions
of people in India and other parts of the world. It also severely
impacted the Indian economy and all other industries including
the power sector which observed a decline in electricity demand,
disruption in the power supply chain and financial stress due to
the lockdown. The worst decline was observed in the southern
and western regions with national demand reducing by 19%.
Despite being an essential service, the sector grappled with
multiple challenges to serve power to the citizens.
At the onset of the pandemic, Tata Power experienced challenges
across its business activities and operations. However, with the
efforts of a dedicated workforce, we managed uninterrupted
generation, transmission and distribution of power across the
country. 70 renewable plants, 11 hydro generation and thermal
plants of Tata Power, along with its transmission network across
five cities ran at full capacity to ensure power supply across
various locations during the pandemic.
The Tata Power Company Limited
Plan
Page no. 31
Protect
Page no. 32
Enhance
Page no. 38
A glimpse into Tata Power’s COVID-19 interventions
10,03,251
people supported with food
grains, meal donation and Public
Distribution System (PDS) linkages
8,322
migrant workers surveyed for
essential service benefits
Distributed digital devices
to students across Delhi Government
Schools to support education for
all during the pandemic
6,42,880
people covered under health
awareness, disinfectant spray and
drinking water initiatives
7,08,238+
masks created and distributed
by women artisans at DHAAGA
(Tata Power initiative) across
states
Promoted self-meter
reading
to ensure consumer safety
2,262
Tata Power employees contributed
1-day salary to Tata Community
Initiative Trust for COVID-19
response
68,400 kgs
vegetable supplied by 5,000 Self
Help Group members & farmers to
local mandis
9,000 people
Across 71 location were covered by
mobile dispensaries deployed by us
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Powering through the pandemic
During the pandemic, Tata Power identified various challenges
across its operations, workforce and communities as well as
adopted strategic measures to combat identified adverse
impacts. These measures are broadly categorised under our
PPE approach (Plan. Protect. Enhance), which includes our
robust BCP, protection of our workforce by ensuring adequate
health and safety measures and contributions made towards
the communities. It also focuses on the enhancement of our
technological interventions to minimize COVID-19 risk and
optimize our business operations.
Plan
Though the COVID-19 pandemic represented an unprecedented
crisis, Tata Power through its robust BCP, ensured minimum
impact of adverse events on its business activities and employees.
The BCP supported our efforts to ensure our plants would run at
full capacity. Furthermore, we implemented a ROTA system for
employees, factoring in backups followed by dry backup teams
who could take charge if one of the ROTA teams was impacted.
Additionally, we are equipped with a workforce who are trained
by continuous mock drills and disaster management exercises
for possible emergency situations. Taking into account 'The New
Normal' we have devised a long-term business continuity plan
which accommodates risks such as plant locations declared as
containment zones or disruption of supply chain and restricted
mobility due to lockdowns.
SOME OF THE STRATEGIES OF OUR LONG‑TERM
BCP INCLUDE:
Ū Alternate access for mobility and basic supplies
Ū Planning for minimum workforce confinement
inside facility
Ū Usage of e-platforms for managing businesses
remotely
Ū Identifying
activities
local expertise to perform onsite
Ū Maintaining stocks of critical equipment and
mutual agreement with industries for sharing
them
Ū Increasing fuel reserve period
Ū Pooling inventory
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Protect
Employees
Tata Power undertook various initiatives to assist its employees
and contractual workforce during the pandemic.
SOME OF THE INITIATIVES INCLUDE:
Ū Conduced vaccination drives, organized camps to conduct
rapid antigen test drive at plant premises and ensured
availability of oxygen, beds, ambulance, quarantine facilities,
testing and injections in collaboration with Tata Medica,
Mission Hospital, Apollo Hospital, Tata Motors Hospital,
Tinplate Hospital and Tata Main Hospital. Vaccination for
contract employees was also facilitated through tie-ups with
government hospitals.
Ū Provided benefits such as work from home and Group Term
Life Insurance through a tie up with Mediassist and one-to-
one helpline to ensure employees' mental wellbeing.
Ū Ensured the supply of emergency logistics and medicines
to employees and their families during the lockdown. The
initiative was extended to our retired employees.
Ū Acquired approvals from regulatory authorities to allow the
travel of employees in local trains
Ū Created awareness among employees and contract work
force while maintaining regular communication through
virtual meetings to ensure transparency and emergency
preparedness on critical risks. We also ensured wages to all
workmen who could not report for duty during the lockdown.
Ū Ensured adherence to COVID-19 protocols by
issuing
guidelines for individuals, families, housing societies, offices
and travelling. Post COVID-19 guidelines were also circulated
to manage post-recovery vulnerabilities.
Ū Provided advisory protocols on safety and precautionary
measures regularly and frequent awareness sessions on
COVID-19 by an in-house doctor
Ū Processed salaries on time and provided advance cash to our
contractual workforce
Ū Provided special attention to women employees with children
Ū Ensured smooth operations by providing regular IT support
Ū Partnered with institutions such as TMTC, TPSDI and Coursera
for conducting virtual workshops to enhance the knowledge
of our employees on safety, managerial skills and project
management
Ū Provided dedicated transport service to contract work force
Ū Launched a 24*7 helpline for employees to connect to the
to ensure their health and safety
business HR team in case of any emergency
Ū Ensured regular sanitisation and disinfection at all sites/
offices
Ū Conducted tele-OPD for the employees staying in Trombay
colony and provided voluntary OPD facility for non-
hospitalization expenses.
Ū Provided facilities like cashless mediclaim and medical
advance to most of the COVID-19 positive cases at various
corporate hospitals. We also provided special sick leaves
for affected employees and a term policy with minimum
premium.
Ū Prepared sanitizers in our DM plants and distributed to our
employees
Ū Provided PPE kits to security teams
Ū Provided 24*7 occupational health center in plant premises
for taking care of outsourced workmen with medicines,
consultancy and health checkups.
Ū Provided special COVID-19 leaves for employees who are
tested positive
Ū Formed emergency response teams at central and local levels
to aid employees with all COVID related emergencies
Ū Launched ‘Doctors Speak’ awareness session throughout the
organization to address the concerns of employees related to
COVID-19 and create awareness amongst them
Ū Tied up with Hotel Siddharth at Jamshedpur to provide
isolation centers and medical assistance to our COVID
affected employees
24x7
occupational health center provided in
plant premises
Doctors speak
awareness session launched
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Government
Tata Power, in liaison with government agencies took initiatives
to strengthen the battle against COVID-19.
SOME OF OUR INITIATIVES INCLUDE:
Ū Requested Discoms to reduce the requirement of hard copies
of Joint Meter Reading (JMR) as it became a challenge during
the pandemic due to the safety protocols. Ministry of New
and Renewable Energy (MNRE) and Solar Energy Corporation
of India (SECI) also released an official circular for the same.
Ū Ensured business continuity of organizations by requesting
Discoms to adapt to e-meetings and e-hearings as restricted
movement represented a challenge in conducting operations
Ū Supported Haldia Development Authority with COVID
healthcare facilities
Ū Associated with Ministry of Social Justice, Government of
India and ‘Khana Chahiye’ to initiate community kitchen
operations enabling food and livelihood security in Mumbai
amidst the lockdown
Ū Provided 4,000 rapid Antigen kits and 3 oxygen concentrators
to support district government authorities
4,000
rapid Antigen kits provided to support
District Government Authorities
Communities
At Tata Power, caring for the community is an enduring
commitment. We have rolled out initiatives for communities
across various locations.
SOME OF OUR INITIATIVES INCLUDE:
Ū Distributed 7.00 lakh reusable masks and over 50,000 grocery
kits, food, fruits and sanitisers to over 2.4 lakh workers across
10 states. Similarly, food packets and 1,000 masks were
distributed across villages of Uttar Pradesh (UP) and Bihar.
Ū Formed a Corona Village Disaster Management committee to
ensure the health and safety of villagers.
Ū Supported anganwadi sevikas, health workers and field
animators throughout the course of the pandemic
Ū Enabled 39.49 lakh worth order of tailoring & stitching,
essence sticks and mushroom farming for women Special
Help Groups (SHGs)
Ū Conducted COVID-19 general awareness sessions by putting
banners, leaflets and initiatives like “COVID Rath”.
Ū Provided medicines to local primary health care centers in
Gujarat, benefitting ~300 households
Ū Prepared and distributed food for more than 9,000 labourers
and slum dwellers with the help of government officials
Ū Efforts were made by Mumbai transmission team to remove
the overhead conductor and make way for the 1,000 bed
make-shift COVID-19 hospital at Bandra Kurla Complex (BKC)
ground.
Ū Distribution of ration/grocery kits including daily essentials to
over 2,500 beneficiaries was done by TPDDL with the support
of Tata Realty, who distributed nutrition and hygiene kits to
1,000 migrant workers across Delhi.
Ū TPDDL, in partnership with the Delhi Government, sponsored
3 lakh meals to underprivileged communities and migrant
workers. We also coordinated with Taj Hotels and provided
4,000+ meals/day to doctors, nurses, medical staff and
COVID-19 patients in government hospitals in Delhi.
Ū TPDDL along with Tata Motors provided manpower to
disinfect 500 Delhi Transport Corporation (DTC) buses and
1,000 auto rickshaws daily during lockdown.
Ū TPDDL ensured continuous portable water supply to over
1 lakh people every day and operated and maintained
RO plants at 22 locations, 8 Jhuggi Jhopri clusters and 14
government schools which were all converted into isolation
wards and shelter homes
Ū Initiated helplines to implement COVID-19 relief packages
and benefitted ~45,000 people.
Ū Provided tele-medical facility for maternal and child health
services to 5,000 people with partnership of Integrated Child
Development Services (ICDS).
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Ū Provided 500 home isolation kits, 3 machines for sanitization
at adjoining villages, 10,000 RAT kits to district administration
and 300 beds and mattresses to COVID care hospital set up by
district administration
Ū Supported farmers with paddy seeds to ensure food security
and enhance livelihood options during the pandemic which
benefitted 1,350 farmers.
Ū Provided thermal scanners, disposable masks and grocery
items to police station and tahsildar office at Karjat
Ū Provided bus facility for villagers to get vaccinated at Patnus
gram panchayat
Ū Assisted government hospital at Shiroli
to establish
vaccination center in Patnus by providing one nursing
assistant, one computer system, 3 beds, PPE kits for staff and
transportation facility
Ū Distributed over 6,100 PPE kits, 15,250 immunity booster
herbal support items, 7,625 hand sanitizers, 30,500 filter
based SHG-95 Masks and 12,200 tablets across regions in the
country
Ū Donated over 2,000 oxygen concentrators at Odisha and
Delhi through Tata COVID-19 task force. We also provided
5,000 oximeters, 5 generators and 250 cylinders along with
PPE kits and sanitizers to Delhi.
Ū Contributed ₹3.5 lakh to art of living foundation for facilitating
virtual sessions on COVID resilience mind sets and techniques
Ū Enabled over 100 SHG women to produce technically superior
filter-based cotton masks (SHG-95) by collaborating with the
innovative Billion Social Masks Alliance and produced over
20,000 masks as a part of the first phase.
Ū All our employees contributed to a fund to support around
350 families with 2 week ration during lockdown in Karandih,
Gadra and nearby locations
Ū Shared video clips to bust the myths associated with COVID
by using a network of 2,500 SHG members
Ū Provided passes to vehicles with advocacy from APMC for
carrying out agricultural activities during lockdown which led
to marketing of 80 tons of melons and generated income of
₹8 lakh to 50 farmers.
2,000
oxygen concentrators donated at
Odisha and Delhi
Locations
We ensured that adequate measures are taken to manage the
COVID-19 crisis across all our sites/locations.
Some of our initiatives include:
Ū TP Ajmer Distribution Limited – Implemented COVID-19
protocols such as social distancing, wearing masks, thermal
screening and glass partitions, among others to avoid direct
contact with consumers and ensured these measures were
being strictly followed at the consumer service centre
Ū Maithon Power Limited – Executed the annual overhaul
activity of unit 2 by strictly adhering to COVID-19 SOPs at
site. The activity was planned in a phased manner with an
established quarantine centre. We ensured all workmen
were shifted to the hostel only after 100% RT-PCR tests were
conducted. This was followed by a safety induction training
at TPSDI and continuous monitoring by the medical team till
the end of the activity
Ū Tata Power Delhi Distribution Limited – Conducted
in an appropriate manner by
COVID-19 management
constituting an Apex Committee for regular monitoring
of initiatives. A ROTA system was implemented along with
several initiatives for the workforce such as work from home,
work from site, adhering to Health & Safety SOPs, disposable
PPE kits for lineman, mapping of operation staff, hostel facility
and ensuring adequate quantity and availability of protective
gears and medicines
Ū Tata Power Haldia Plant – Conducted COVID-19 awareness
sessions with Self Help Groups in neighbouring villages.
Ū Coastal Gujarat Power Limited – Coordinated with
authorities for plying of fodder trucks in the field along with
providing uninterrupted supply of water for fishermen and
preparing masks for distribution. We also conducted several
awareness sessions towards government schemes such as PM
Garibkalyan Yojna for extra food support.
Ū Provided 50 oxygen cylinders at Mangaon and Mulshi, 6 at
Jamshedpur and 10 at KPO facility along with 30 oxygen
concentrators at Maithon, 5 at Pratapgarh, 6 at Neemuch, 3 at
Prayagraj, 2 at Jojobera and 2 at KPO facility. COVID resilience
kits were also distributed across 64 sites.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements OUR COVID‑19 RESPONSE
Enhance
Business Operations
Despite the challenges faced due to the COVID-19 pandemic, we
continued to run our operations at optimal level by endeavoring
power connectivity across all locations.
SOME OF OUR INITIATIVES INCLUDE:
Ū Ensured availability of critical spares at ~70 sites across
11 states, despite the restriction of movement during the
lockdown by coordinating with communities as well as local,
district and state authorities.
Ū Achieved a minimum downtime of critical equipment by
making safe accommodation arrangements for contracts and
employees at the control room.
Ū Promptly obtained necessary permissions and resumed
our operations at all project locations amidst the lockdown
ensuring seamless business activity.
Ū Provided accommodations to workers and other staff
members to resume work and avoid their interaction with the
community to ensure their health & safety.
Ū Enhanced our operations by expanding our manufacturing
facilities with high degree of automation. This was carried out
with the support of our engineers and officials in Germany
through telephonic conversations and video conference.
Ū Provided green power to new shops, household consumers
and a bucket manufacturing plant at Bakhara village of
Muzaffarpur district in Bihar.
Ū Successfully executed the first-ever transportation of solar
modules by rail to National Thermal Power Corporation
(NTPC) Central Public Sector Undertakings (CPSU) project site
in Rajasthan.
Innovation & Technological Advancements
Tata Power adopted a variety of technological innovations across
its business activities to combat the challenges of COVID-19,
thus ensuring the safety of its employees and enhancing our
ability to create value.
Ū Integrated portable cameras, apps and CCTV surveillance on
the mobile for remote diagnosis and safety of our workforce.
Ū Equipped with UV-C sanitization boxes for disinfecting
portable tools and electronic items, among others at
Transmission & Distribution (T&D) Mumbai.
Ū Installed a contactless hand sanitizer dispenser for sanitising
hands without touching at Industrial Energy Limited (IEL),
Kalinganagar
Ū Established an extended control room for addressing
concerns related to operations of Boiler Turbine & Generator
(BTG) equipment and logistical challenges. It was also
used as a substitute for central control room in case of any
COVID-19 case.
Ū Installed UV-C sanitisation system to disinfect the surfaces
and various other regular use items. A portable form of
this system was also installed to sanitize the electronic
instruments at offices.
Ū Installed a tabletop social distancing device at T&D Mumbai
that buzzed in case of any breach in adhering to the protocol.
Ū Incorporated smart wearable and safe pass system for social
distancing alert. It also measure the temperature, provided
the facility of contact tracing and real time alerts and
notifications.
Ū Enhanced the surveillance and automatic analysis of videos
at remote sites by integrating Artificial Intelligence in our
CCTV camera network. It also ensured social distancing,
compliance to PPE and safety rules.
Ū Implemented digital aspects for operational activities to
avoid physical contact
Ū Ensured adherence to Government Regulations of restricted
mobility by appealing our customers to use digital platforms
for making payments. Our customer touchpoints were also
operated with limited resources via e-mail and SMS.
Ū Initiated a social media challenge of taking a pledge with a
single action and posting a picture of the same. This challenge
was named as #MyTataPowerPledge.
Ū Our employees focussed on
optimising our business
operations diligently. They continued to work at remote sites
on a shift basis and 400 of them volunteered to contribute
over 800 hours in TPSSL.
Ū Ensured 100% adherence to operations and maintenance
schedules of the plants and completed 3 annual shutdowns
successfully.
Ū Regularly conducted COVID-19 Task force meetings, Cross-
functional Team (CFT) audits and tabletop exercise to ensure
preparedness level at site.
Ū Formed COVID Core Committee at Jamshedpur to carry out
health care responsibilities.
100%
adherence to operations and
maintenance schedule of plant
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The Tata Power Company Limited Integrated Annual Report 2020-21
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements VALUE CREATION MODEL
Co-creating sustainable value for all
Our business model builds on the integrated approach of Tata Power’s businesses to transform the
entire power value chain. With a customer-centric approach, we leverage our strategic objectives to
create sustainable value for our stakeholders and generate tangible outcomes across the six capitals
Our Inputs
What We Depend On
Financial Capital
₹35,946 crore
of Net Debt on
consolidated basis
₹25,250 crore
total equity capital. Infusion
of ₹2,600 crore from Tata Sons
in FY21
Manufactured Capital
3,536 Ckm
of Transmission lines
₹8,700 crore
of order book for
Solar EPC business
₹752 crore
investments to acquire
Orissa Discoms
Intellectual Capital
₹7.44 crore
invested in R&D
Investment in
SMART meters
Investment in
EV charging
infrastructure
Human Capital
18,626
Employee strength
51.8%
of Union
employees
88,000+
learning resource completed
through "Gyankosh"
Social & Relationship Capital
Local sourcing
(orders in India):
99% non-fuel procurement
46% including fuel purchased
₹39.24 crore
invested in CSR
Natural Capital
₹22,555 crore
invested in Renewable
Energy Projects
18.3 million MT
of coal consumed for
conventional energy business
1 millions+
trees planted a year
Our Business Model
Our Vision
Empower a billion lives through sustainable,
affordable and innovative energy solutions
Our stakeholders
Board of Directors &
Leadership
Employees and
Employee Unions
Suppliers
Investors
Lenders
Regulators
Customers
Community
Civil Society
Media
O u r B usinesses
b l e E n e r gy
i o n
t
a
r
e
EV Chargin
Infrastructure
n
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R e n
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a
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S
o
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S af e t y
Custo
m
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s
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a
C
Our Values
E
t
h
i
c
s
L
e
arning
P
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g ility
A
e ss
s i n
u
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M
a
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Conv
Energy G
Our Strategic
Business Objectives
SBO 1
Profitable scale-up of Renewables,
Distribution, Services and Energy
Solutions business
SBO 2
Focus on Sustainability with an intent to
attain carbon neutrality
SBO 3
Maintaining financial leverage at
targeted levels
SBO 4
Leverage digital platforms to drive new
customer centric businesses
SBO 5
Develop future energy products and
solutions
SBO 6
Create an engaged, agile, customer
centric and future ready workforce
Our Outcomes
What We Create
Financial Capital
₹33,079 crore
Consolidated Revenue
Manufactured Capital
31%
of clean and green
portfolio
Intellectual Capital
6
Patents filed
Human Capital
100%
of our operations assessed
for human rights practices
₹32,990 crore
Market Capitalization
6%
Return on Equity
11.8 million
of Distribution
customers
161
Microgrids (4.8 MW)
commisioned
2,700
SMART meters installation
by Mumbai Distribution
532
EV charging points
across 92 cities
83%
Employee
Engagement Score
2.1%
attrition rate
Social & Relationship Capital
4,000 MWh+
of energy saved in Mumbai
distribution and 6,000 energy
efficient appliances distributed
Customer satisfaction scores
Generation: 92%, Mumbai Transmission: 97%
Mumbai Distribution: 99%, TP Delhi Distribution: 96%
SBO 7
Minimizing coal cost under recovery in
CGPL
46.65 lakh
beneficiaries of CSR
SBO 8
Set new benchmarks in operational
excellence and financial returns for
existing businesses
Natural Capital
2,694 MW
of RE portfolio (21% of total
generation)
17.18 m3/Mwh
Specific water consumption (overall)
0.687 tCO2e/MWh
Carbon intensity achieved
70,000 tCO2e/annum
mitigated from trees planted
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements
SUSTAINABLE DEVELOPMENT GOALS
Transforming the way
we do business
We are steadily augmenting our capabilities to remain future ready and empower our customers
for tomorrow’s world. This is part of our collective endeavour to deliver value-accretive outcomes
across the triple bottom line parameters. Our long-term strategy takes into cognisance the issues
highlighted by the 17 Sustainable Development Goals (SDGs). We reinforced our commitment to
the SDGs by undertaking an SDG-mapping study in FY18, identifying SDG focus areas, high-impact
initiatives and an established roadmap to achieve our goals. Additionally, we have adopted three-
year targets for each of our prioritised businesses and CSR thrust areas in alignment with relevant
UN SDGs. The interconnected nature of the SDGs and our enhanced efforts will amplify our impact
and enable us to achieve our goals.
SDGs
Action areas
SDGs
Action areas
2050 Goals
Business Area
Solutions
2026 Goals
CSR Thrust Area
Objectives
Achieve Carbon Neutrality
Renewables and Next
Generation Power
Solutions
- Expand clean and green, energy efficient power generation capacity
- Development, construction and operation of wind and solar power assets
- Operating Renewable Energy (RE) assets at benchmark levels
- Solar rooftop and pumps
- Microgrid
- EV charging solutions
- Home automation
Benchmark in the utility sector
Tata Power
Renewable Microgrid
Limited
- Mitigation of irregular, low-voltage or no power supply
- Offset of extensive kerosene or diesel consumption
- Local power usage monitoring through connection of microgrid and
battery bank with computers
100% zero waste to landfill
Conventional
Generation
- Benchmark water and waste management
- Benchmark operation efficiency parameters
- Waste heat recovery measures
- Coal blending to optimize cost with a focus on GHG emissions
Financial inclusivity
- Empowering women through Self-Help Groups (SHGs)
- Ensuring social safety nets for the marginalized population
Livelihood & skill
building
- Enhancing food security by diversified crop production
- Enhancing income of farmers and youth
- Ensure sustainability of initiatives
100% coverage of marginalized
and deprived communities to
access government entitlements
Support target communities &
regional institutions by enabling
capacities & skills for water
recharge & management, health &
nutrition
Benefit 4 lakh youth - directly
& indirectly through digitally
enabled, integrated vocational
training centers
Build capacities of 25,000 SHGs in
target regions
Co-develop 10 unique sustainable/
recycled products, services
Facilitate scalability & regular
business pipeline for SHGs
Train 10,000 Trainers/Community
Leaders to deliver blended
learning through Govt. schools/
training institutions
Education
-
Improving learning level of children in primary education and reducing
dropouts
- Encouraging adolescents to complete their schooling
- Promoting students from Affirmative Action (AA) communities for higher
education
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements STAKEHOLDER ENGAGEMENT
Building stronger relationships
As India’s largest integrated power company, we are profoundly connected to the environment
and communities of our operations. At Tata Power, our ability to create, preserve and deliver value
is strengthened through our strategic partnerships and robust relationships with our stakeholders.
Our transparent communication and established stakeholder engagement strategy is instrumental
for co-creation of value and sustainable growth.
Our approach for efficacious stakeholder
engagement
At Tata Power, we consciously look to our stakeholders for their
valued inputs and guidance that enables us to capitalise on
opportunities and strengthen existing partnerships. In order to
really make a difference, we engage with our stakeholder groups
to understand what matters most to them and how we can meet
their expectations. Through transparent dialogue, we enhance
our outlook towards relevant material issues for our stakeholders
and business. This process helps identify key improvement areas
and also drives organizational strategy.
We stand strong with our stakeholders
The COVID-19 pandemic substantially impacted the lives
of all our stakeholders. During this tumultuous period, we
ensured extensive interaction with all our stakeholders to
address key challenges. We undertook various initiatives
to support our stakeholders during the pandemic which
can be accessed on page 28.
Engaging with our stakeholders
Key details of our stakeholder engagement mechanisms and outcomes have been provided below.
Stakeholder
Groups
Why are they
important?
Investors
Provide equity
capital
Engagement Mechanisms
Stakeholder Recommendations
Tata Power’s response to
stakeholder recommendations
- Scheduled investor
meets
- Quarterly results call
- Participation in events/
platforms organised by
investors
- Reduce leverage
- Growth and profitability of ESG
- Divestment of non-core assets.
- Thrust on growing through energy
oriented business
- Better communication to
stakeholders
efficient businesses
- Regular communications and
interaction with investors
Lenders
Provide debt capital
- Periodic meetings
- Financial status of Distribution
- Regular monitoring of the
-
Companies (Discoms)
Increased disclosure on ESG
aspects
health of Discoms and portfolio
diversification
- Ensuring transparency and periodic
communication with lenders
- Climate change related rules/
- Regular engagement,
Regulatory
Authorities
Provide guidance for
conducting business
and resolving
disputes
- Scheduled meetings
- Regular liasoning
Industry forums
-
regulations
- Optimal tariff to consumers
- Optimal utilisation of natural
resources
Customers
Ultimate recipient
of our products and
services
- Customer satisfaction
- Quality and reliability of power
surveys
- Formal and informal
-
feedback
supply
Improved notifications of
disruption, failures, or maintenance
for customer transparency
communications and advocacy
with regulatory authorities
- Strict compliance with rules and
regulations-tracking compliance
through digital platforms
-
Improvement of operational
efficiency measures.
- Reduction in forced outages
- Cost effective energy solutions
- Regular safety awareness
campaigns for customers
Stakeholder
Groups
Why are they
important?
Engagement Mechanisms
Stakeholder Recommendations
Board of
Directors &
Leadership
Provide collective
guidance and
direction for the
Company’s strategy
and operations
- Scheduled Board
Meetings
- Scheduled and special
Board Committee
meetings
- Market Leadership
- Maximise shareholder value
- Focus on sustainable businesses
- Focus on customer-centric policies
and ethical business conduct
- Proactive interaction with investors
-
for ESG initiatives and strategy
- Periodic review of perceived risks
Tata Power’s response to
stakeholder recommendations
- Periodic review of business strategy
and performance
- Greater emphasis on growth
through non-fossil-based business
ventures
Increased focus towards
ESG disclosures and clear
communication on ESG aspirations
Employees
Forms the backbone
of our business
activities
Suppliers/
Vendors
Civil Society
Local
Community
Media
Employee
Unions
Help us develop
our business
ecosystem, support
our sustainability
initiatives, and create
shared value
Enable better
implementation of
our environment
and social initiatives
and give feedback
Provide a better
socio-economic
context in
our operating
environment
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
and mitigation strategy
- Sustained focus on CSR activities
- Work-life balance
- Transparent appraisal and
promotion policy
- Stability of internal policy
- Fair remuneration structure
- Training and seminars
- Meetings and reviews
- HR programmes
- Employee satisfaction
surveys
- Departmental meetings
- Townhall meetings
- Quarterly management
communication
for identified thrust areas
- Successful implementation of work
from home, ROTA system.
- Robust appraisal system and
-
-
redressal process
Implementation of internal audit
and control system
Benchmarking salary structure to
be among the best in the industry
- Regular Supplier / Vendor
- Formal supplier assessment to
- Evaluation of vendors/suppliers
meets
- Contract revision and
negotiation meetings
-
verify ESG performance
Increased awareness to partner
green initiatives
through ESG criterion
- Shared common vision through
vendor meets
- Contractual clauses to reflect
organisational expectations on ESG
parameters
- Project-based
stakeholder meets
- Periodic meetings
- Augmented community
- Robust internal and financial
involvement
control system
- Transparency in business practices
- Emphasis on community
and their impacts
- Project-based
stakeholder meets
- Participation in CSR
activities
- Relief work for COVID-19
-
Increased infrastructure for training
community members
- Safety and security of facilities as
well as electricity supply
- Media briefings
- Press releases
- Marketing
communication
-
Increased transparency and clarity
in shared information
development and affirmative
action initiatives
- Training and skill development of
contractors undertaken by Tata
Power Skill Development Institute
(TPSDI)
- Regular safety awareness
campaigns undertaken for
customers and other community
stakeholders.
- Presence of a robust corporate
communications team
- A strong media and
communication strategy across the
Company
- Scheduled meetings
- Dedicated surveys
- Ethical and responsible business
- Adherence to Tata Code of Conduct
conduct
for all employees
- Equal opportunities for all
- Continuous support of
management to promote diversity
- Formulation and implementation
of Human Rights policy
- Support for collective bargaining
through union employees
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The Tata Power Company Limited Integrated Annual Report 2020-21
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements MATERIALITY ASSESSMENT
What really counts
We judiciously apply the principle of materiality to determine the contours of our Integrated
Report. We leverage the perspectives of our management and stakeholder fraternity to validate
and review key material topics that could impact the Company’s strategy, business activities and
our capabilities to create and preserve value over time.
Our materiality determination process
Our materiality assessment represents an opportunity to understand material topics relevant to our stakeholders and our business
activities, in addition to providing insight on how we create value on Environment, Social and Governance (ESG) landscape
Considering the unprecedented challenges and evolving ESG landscape in FY21, we undertook a detailed materiality review for the
reporting period. This process led to the addition of seven material topics, further to those reported in FY20.
Our materiality determination process is further
elaborated below.
IDENTIFICATION OF
MATERIAL TOPICS
PRIORITISATION OF
MATERIAL TOPICS
REVIEW OF MATERIAL
TOPICS
VALIDATION OF
MATERIAL TOPICS
FY20
FY21
- Developed an extensive list of material topics based on sectoral
insights, stakeholder concerns, the macro economic and regulatory
environment.
-
Identified topics in line with the IIRC Framework, GRI (Global
Reporting Initiatives) Standards and SASB (Sustainability Accounting
Standards Board) metrics.
- Prioritised Tata Power’s material topics, considering their relevance
to our stakeholders and impact on our strategic intent and business
activities.
-
Inputs from internal and external stakeholders were captured using
survey-based assessment forms.
- Engaged with various internal stakeholders to seek their feedback
on Tata Power’s current material topics and any new focus areas that
the Company should consider about the evolving ESG landscape
and unprecedented challenges encountered in FY21.
- Realised evolving perspective of external shareholders and their
concerns on Tata Power’s current material topics as well as on
external environment through our materiality review process.
- Materiality topic, thus reviewed, were further validated by Tata
Power’s Senior Management.
- The materiality review process enabled us to further strengthen our
strategy and risk management
- Categorised our material topics based on the magnitude of impact
and likelihood of occurrence to enable an efficacious organisational
strategy.
- This process further helped us to understand the diverse set of
challenges and opportunities in an ever-dynamic operational and
business environment.
Tata Power’s material topics FY21
Our material topics guide our strategic planning process, operational management and capital
investment decisions
Material topics
KPI's
SDGs in focus
Reference
Climate Change
Management
Increase in renewables portfolio
-
- Carbon emission management
- Operational efficiency
- Demand-side management
Environmental
Stewardship
- Waste and Water Management
- Resource availability
- Biodiversity
Workforce Wellbeing
- Training, education and
development
- Occupational health and safety
- Human rights
-
Impact on business due to
change in coal pricing
- Sustainable investing
-
Innovation in process, service
and solutions
- Digitization*
- Cybersecurity*
- Disaster management and
planning*
Local sourcing*
-
- ESG compliance*
- Risk management*
- Customer satisfaction
Future Ready and
Business Continuity
Corporate
Governance
Customer
Relationships
* New Materiality topic FY21
IR reference
46
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Financial
Manufactured
Intellectual
Human
Social And
Relationship
Natural
Corporate
Governance and Risk
Management
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements Our
value-creation
paradigm
50 Manufactured Capital
66
72
86
104
110 Natural Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Financial Capital
MANUFACTURED CAPITAL
Co-creating the future of
sustainable energy
Tata Power is committed to fulfilling the growing energy
requirements of a developing India in a sustainable
manner. We have embarked on an ambitious journey
to transform our energy generation portfolio towards
‘clean and green’ energy sources and attain carbon
neutrality before 2050.
Our ambition and commitment stem from our vision and purpose to serve our
customers’ needs as well as address the risks associated with climate change. We are
focused on overcoming the challenges associated with sourcing of materials, regulatory
pressures, and uncertainty in renewables, to develop and deliver eco-friendly energy to
our customers.
Strategic Business Objectives
Governance enablers
Material topics
SBO1: Profitable scaleup of
Renewables, Distribution, Services and
Energy Solutions business
SBO5: Develop future energy products
and solutions
SBO8: Set new benchmarks in
operational excellence and financial
returns for existing businesses
Ū Risk Management Committee
Ū Executive Committee of the Board
Ū Committee of Directors
Ū Risk Management Policy
Ū Corporate Sustainability Policy
Ū Increase in renewables portfolio
Ū Operational efficiency
Key performance indicators
Key risks addressed
Sustainable Development Goals
Ū Installed capacity
Ū Clean and green capacity %
Ū Investments made in RE portfolio
Ū Technology risk
Ū Regulatory risk
Ū Commercial risk
Interaction of manufactured capital
with other capitals
HUMAN
INTELLECTUAL
FINANCIAL
Capital
tradeoffs
Enhancing generation
and manufacturing
capacity provides
suitable work
opportunities for our
employees
Dedicated thrust in
our clean and green
capacity enables
us to deliver future
ready products for our
customers
Impact
across the
capitals
8.6%
new employee hire
rate in FY21
225 MW
of hybrid RE asset
under construction
Profitable growth
in renewables
business through
prudent bidding and
cost optimization,
generation of income
through Carbon
Emssion Reduction
(CER) trading
₹5,888 crore
revenue from
renewable segment-
higher by 48% from
FY20
SOCIAL &
RELATIONSHIP
NATURAL
Leveraging our
products and services
to delight customers
with future-ready
energy solutions
Our clean and
green capacity
enable us to reduce
carbon emissions
and other negative
environmental
impacts
Over 30,000
customers for solar
rooftop
2,694 MW
of renewable
portfolio
domestically
50
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements MANUFACTURED CAPITAL
Powering a sustainable economy –
our generation capacity
We have consistently increased our generation capacity to meet the growing demands of our consumers and help elevate the
quality of life of millions of people. We have witnessed over four fold growth in capacity addition in the past decade. While the initial
growth phase was primarily from fossil fuel based generation (coal / oil / gas), we are now primarily focusing on growing through
renewables, transmission & distribution, services and energy solutions business to address the future requirements and challenges.
The absence of any thermal addition in the reporting period is a testament to this commitment.
Cumulative Annual Capacity growth
Fuel mix (domestic + international)
16,000
12,000
8,000
5
6
3
2
,
5
0
7
2
,
4,000
4
9
9
2
,
8
2
1
3
,
)
W
M
(
y
t
i
c
a
p
a
c
e
v
i
t
a
l
u
m
u
C
1
7
6
8
,
4
3
7
8
,
2
7
8
8
,
0
5
1
9
,
5
0
8
4
,
2
4
7
2
1
,
8
0
8
2
1
,
5
1
6
0
1
,
7
5
7
0
1
,
7
5
9
0
1
,
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
1
2
Y
F
69
31
7
3
7
14
Other
Wind
Thermal
Solar
Waste Heat
Recovery / BFG
Hydro
Domestic Assets
Fuel source
State / Union
Territory
Location
Normative
capacity under
management
(MW)
PPA tenure
Return profile
Total capacity
by fuel source
(MW)
Thermal
(Coal / Gas / Oil)
Gujarat
Mundra
4,150
Long-term
Bid-based
8,805
Maharashtra
Mumbai
930
Medium-term
Regulated
Jharkhand
Maithon
1,050
Long-term
Regulated
Jharkhand
Jojobera
547
Long-term
- Regulated returns
- Bilaterally negotiated
(captive)
Odisha
Kalinganagar
40
Long-term
Tolling / Fixed tariff
Uttar Pradesh
Prayagraj
1,980
Long-term
- 90% Regulated
- 10% Merchant
New Delhi
Jharkhand
Rithala (Gas
based)
Jamshedpur
Thermal (Waste
heat recovery)
108*
None
Non-operational
120
Long-term
Odisha
Kalinganagar
135
Long-term
West Bengal
Haldia
120
Short-term
375
Bilaterally negotiated
(captive)
Bilaterally negotiated
(captive)
Merchant sale and
bilateral contracts
Hydro
Maharashtra
Bhira
300
Medium-term
Regulated
447
Maharashtra
Khopoli
Maharashtra
Bhivpuri
72
75
Medium-term
Regulated
Medium-term
Regulated
As on 31st March 2021, our total generation capacity nationally and internationally was 12,321 MW and 487 MW, respectively.
Renewables
Business Model
Eco-friendly generation capacity (MW)
2
3
15
37
22
21
Renewables
Non-fossil source
Clean & Green energy
2,694
2,637
2,325
3,574
3,508
3,018
3,949
3,883
3,393
Regulated Tariff
PPA / Fixed Tariff
(Renewable)
PPA / Fixed Tariff
(Bid / Others)
FY21
FY20
FY19
Captive
Merchant
Under Platform
Management
Note:
Renewables: Solar and Wind capacity
Non-fossil source: Renewables and Hydro
Clean & Green energy: Non-fossil source and Waste Heat Recovery
Wind Farms
932
Long-term
Feed-in tariff and bid-
driven contracts
2,694
Solar
Photovoltaic
(PV)
1,762
Long-term
Feed-in tariff and bid-
driven contracts
Maharashtra,
Gujarat, Madhya
Pradesh,
Karnataka, Tamil
Nadu, Rajasthan,
and Andhra
Pradesh
Andaman &
Nicobar, Andhra
Pradesh, Bihar,
New Delhi,
Gujarat, Haryana,
Jharkhand,
Karnataka,
Madhya Pradesh,
Maharashtra,
Punjab, Rajasthan,
Tamil Nadu,
Telangana, Uttar
Pradesh and
Uttarakhand
*Classified as assets held for sale
Total domestic capacity
12,321
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements
MANUFACTURED CAPITAL
International Assets
Fuel source
State / Union
Territory
Location
Thermal
(Coal / Gas / Oil)
Indonesia
Thermal (Waste
heat recovery)
Bhutan
Zambia
Georgia
PT Citra
Kusuma
Perdana
Dagachhu
Itezhi Tezhi
Normative
capacity under
management
(MW)
PPA tenure
Return profile
Total capacity
by fuel source
(MW)
54
Long-term
Bilaterally negotiated
(captive)
126
120
187
Short-term
Merchant sale
Long-term
PPA/Fixed tariff
Long-term
PPA/Fixed Tariff
Total international capacity
54
246
187
487
Our portfolio has a diverse mix of PPA/ Fixed tariff and Return on Equity (RoE) based regulated tariff which provides a natural
balance and guarantees a stable return even in fluctuating business conditions especially in a lower margin renewable
environment due to competitive bidding. For details of our business portfolio, you may also refer page 161 Management
Discussion and Analysis.
Creating a greener India –
our renewables story
Climate change is one of the biggest challenges of the 21st
century, with the energy sector contributing 25% (Source: IPCC
AR5 2014) to the global GHG emissions. As energy is an essential
requirement for economic growth and societal wellbeing,
renewable energy (RE) is gaining prominence globally and is at
the centre of all our GHG mitigation plans.
Aligning with our commitment
towards environmental
stewardship, we commissioned our first wind asset at Supa in
Maharashtra in 2001 and first solar asset at Mulshi in Maharashtra
in 2011. Additionally, our largest renewable acquisition of
Welspun Energy
(in 2016) accelerated our commitment
towards increasing the renewables portfolio. Today, we have an
impressive renewable portfolio of 2,694 MW domestically, which
makes over 22% of our domestic generation portfolio and has
under construction capacity of 1,314 MW.
Furthermore, we have our presence across value chains of
renewable business, be it products (solar pumps, solar RO
system, solar modules and cells), utility scale solar EPC, solar
rooftop solutions, Microgrids, hybrid renewables, floating solar
as well new future ready business ventures.
Our 100% subsidiary,Tata Power Solar Systems Limited (TPSSL),
is India’s largest utility scale solar EPC company with presence
across 11 states in India and has order book of over 2,800 MW
with value of around ₹8,700 crore as on 31st March 2021.
It has also been manufacturing solar cells and modules since
1989 (oldest in India) and has enabled us to provide end-to-end
solutions to our customers.
During this financial year, we have made significant expansion
of our state of the art manufacturing facility in Bengaluru, taking
the total production capacity of the cells and modules to 1,100
MW.
Leveraging the opportunities to offset carbon emissions, Tata
Power currently has five renewable projects registered under
the Clean Development Mechanism (CDM) programme by the
United Nations Framework Convention on Climate Change
(UNFCCC). These include wind assets at Gadag (Karnataka),
Khandke
(Maharashtra), Samana and NewGen Saurashtra
(Gujarat), and solar assets in Mithapur (Gujarat).
State wise RE Portfolio
BH
40
JH
15
RJ
100
194
PB
36
215
150
185
UP
225
100
680
GJ MP
130
44
MH
178
239
564
50
KA
134
TS
15
AP
205
100
TN
249
120
A total of 87,351 Certified Emission Reductions (CERs), better
known as carbon credits, were traded from these projects in
FY21, generating gross revenues of around ₹ 1.77 crore. Walwhan
Renewable Energy Limited (WREL) has eight CDM registered
projects but no CERs were issued or traded in FY21.
Empowered by our rich experience in the renewable sector
and a very clear vision towards the future, we are well poised
to strengthen our industry position and brand recall. We are
committed to take our clean and green portfolio from 31% in
2021 to around 80% by 2030.
Total RE Portfolio
4,008 MW
Solar
2,851 MW#
Wind
932 MW
Hybrid
225 MW@
Operating Wind Asset
Operating Solar Asset
Under Construction Solar Asset
Under Construction Hybrid Asset
# includes u/c solar capacity of 1,089 MW @ u/c
Hybrid capacity of 225 MW
Cumulative capacity of renewable energy
installed (MW)
932 / 1,762
932 /1705
932 / 1,393
932 / 1,190
811 / 935
FY21
FY20
FY19
FY18
FY17
FY16
FY15
FY14
FY13
FY12
FY11
FY10
623 / 56
519 / 56
487 / 30
487 / 30
416 / 30
228 / 4
218
FY09
100
FY08
100
Wind
Solar
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements MANUFACTURED CAPITAL
Tata Power’s Renewable Portfolio
State / Union Territory
Andaman & Nicobar
Andhra Pradesh
Bihar
New Delhi
Gujarat
Haryana
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Punjab
Rajasthan
Tamil Nadu
Telangana
Uttar Pradesh
Uttarakhand
Total
Financial assistance from government
Ū ₹50.76 crore exemption of customs duty on import of raw
materials to manufacture solar modules and solar cells and
import of solar inverters and solar trackers for large projects
Ū Viability Gap Funding of ₹49.10 crore receivable from
Solar Energy Corporation of India Limited for 100 MW
Ananthapuram Project and 30 MW Palaswadi Project.
#FutureReady technologies implemented in
RE portfolio:
Ū Maintenance of drones to detect offline strings, Hot spots,
diode defaults, revers faults, string mismatch, microcracks
and surface faults
Ū Robotic waterless cleaning
Ū String level monitoring on real-time basis to track the output
and performance of solar panels
Focus areas envisaged to be #FutureReady:
Ū Competitive bidding to ensure profitable growth
Ū Hybrid project opportunities
Ū Round the clock renewables solutions
Ū Offshore wind projects
Ū Strategic tie-ups for battery storage projects
Ū Floating solar (coupled with hydro power)
Ū Hydrogen as alternate fuel - Green Hydrogen
Solar (MW)
Wind (MW)
Total (MW)
0.2
205
41
3
100
1
8
566
130
185
36
215
253
16
1
2
1,762
Nil
100
Nil
Nil
194
Nil
Nil
50
44
239
Nil
185
120
Nil
Nil
Nil
932
0.2
305
41
3
294
1
8
616
174
424
36
400
373
16
1
2
2,694
Cumulative Investments in Renewable Energy
(in ₹crore)
19,227
20,310
22,555
FY19
FY20
FY21
Microgrids — making rural India future ready
Despite the Government's efforts to improve electricity access
in India through household electrification, energy crisis is a big
challenge in many parts of rural India. The situation is further
worsened by the poor financial health of Discoms, impairing
the service quality in villages. The lack of reliable and affordable
power supply and grid connectivity compels the inhabitants
to switch to polluting diesel generators. This situation in large
measure restricts the overall growth opportunities of rural India,
and also adds to the country’s carbon footprint.
We have embarked upon an ambitious new initiative to help
transform rural India through many micro-enterprises, powered
by clean, affordable and reliable energy from renewable
microgrids. So far, we have set up microgrids in rural regions of
Bihar (6 districts) and Uttar Pradesh (3 districts).
in
increase
Investments
Our steady
in renewable assets
underlines our commitment to grow responsibly without
compromising the energy need of customers.
Government of India is also providing impetus to the growth
of non fossil based energy solutions in the country through
increased focus and financial assistance, which is expected to
increase further in future.
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Tata Power’s Aspirations
Highlights
Ū Electrify villages using renewable mini grids in selected
states.
Ū Provide affordable, reliable, high-quality 24x7 service
to customers
Ū Roll out value-added services e.g. water treatment
plant to provide clean drinking water in rural India
Ū Drive economic growth via small enterprises and
agriculture
Ū Promoting affordable and energy efficient appliances
Ū Work with relevant central and state governmental
bodies to advance thoughtful policy reforms
Installed microgrids
161 (4.8 MW)
Microgrids under construction
40 (1.2 MW)
Villages covered
200
Customers connected
3,887
Tata Power’s efforts on energy transition is targeted to bridge the
gap between unreliable power supply for micro-enterprises and
socio-economic development of the country. We have rolled out
microgrids in rural India to provide innovative solutions for the
under-served communities and expanded our global microgrid
footprint. We are constantly looking for ways to further scale up
this business.
Rooftop Solar
As a leading player promoting rooftop solar solutions, we
are encouraging the shift of consumers to prosumers and
maximising our solar potential through innovative models. We
have also launched a campaign across India titled ‘SOLAROOF’
Kamai Badhaye Dildaar Banaye to promote solar rooftops as
a solution to conserve energy, reduce energy costs and help
protect the environment. This is augmented by our customised
offerings for a diverse set of consumers (residential, MSMEs
SMEs, commercial and industrial).
We have over two decades of pioneering excellence in the
rooftop solar segment and are a partner of choice for over
30,000 customers. Our solar rooftops business continued
its growth trajectory with over 6,000 customer sites in FY21,
approximately 100% growth over that of previous financial year.
Our accomplishments have been acknowledged by the leading
Renewable Consultancy Bridge to India, which has recognised
us as the No.1 EPC rooftop player for seven years in a row.
Flagship Projects
World’s largest solar-powered
cricket stadium - Brabourne
Stadium, Mumbai
India’s largest carport
installation in Pune
India’s largest vertical solar
farm for Dell in Bengaluru
World’s largest rooftop solar
system at Radha Swamy
Satsang Beas, Punjab
Rooftop business Y-o-Y installations (MW)
Highlights
175
86
114
FY19
FY20
FY21
Cumulative customers
30,000+
Residential customers
15,000+
Installed
500+ MW
~40% CAGR (FY18-21)
Pan India network of
250+ channel
partners
Ranked
No 1 Solar EPC Player
for 7 years in a row
Solar Water Pumps
A large proportion of India’s population still depends on agriculture for their sustenance. The high dependence on monsoons to
irrigate crops leads to opportunity losses for farmers in drier months, as well as increases the use of expensive, polluting fuels to
operate conventional irrigation systems. Solar water pumps are a cheaper and cleaner alternative to farmers, which enables them
to improve their productivity throughout the year. This further benefits society through the creation of environment friendly
employment opportunities and less hardship on women and children while carrying water.
Annual sales (no. of pumps)
12,896
12,928
4,506
FY19
FY20
FY21
Highlights
Pumps across India
30,000+
Turn Around Time (TAT)
reduced by
50-70%
Leading player in solar pumps
Customers have benefited with
₹200+ crore
subsidy from government under the KUSUM programme
India
To propagate its twin priorities of agriculture and renewable
energy, the Government of
is heavily focusing on
distribution of solar water pumps. It aims to benefit 3.5 million
farmers by providing them solar pumps with 60% subsidy
through the Pradhan Mantri Kisan Urja Suraksha Evem Utthan
Mahabhiyan (KUSUM) scheme. Tata Power is proud to support
this future focused initiative of the Government of India and is
leveraging its strong network to reach out to rural geographies
of the country. Till date, we have built a portfolio of 30,000+ solar
water pumps across India. Thus, we are enabling sustainable
growth of the agriculture sector through dedicated focus on
setting up around 1 million solar pumps by FY26.
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#Futureready renewable energy
solutions for tomorrow
Hybrid/ Round the Clock/
Solar plants with battery
Tata Power is of the belief that going forward the emerging trend
and general direction of growth in the renewables sectors would
be in the form of hybrid/Round the clock RE solutions. The hybrid
solutions would include a combination of wind and solar plants
along with some battery electric storage solutions (BESS). In this
regard, Tata Power is already constructing our first hybrid project
of 225 MW, developing land bank for wind site and engaging into
strategic tie up with Wind Turbine manufacturers. Tata Power
has already an operational 10 MW/10 MWH BESS solution in
their TPDDL facility. Tata Power is leveraging on this experience
of assimilating BESS technology and operating the largest BESS
installation in India to undertake strategic tieup with Battery
Original Equipment Manufacturers (OEM). It has also developed
the engineering team to evaluate the rapid changes in battery
chemistry and specification to be able to have the optimum
techno commercial solution for the future opportunities. These
opportunities could range from small scale storage with Roof
top solutions to utility scale application for peaking shifting and
ancillary services required for frequency regulation.
Floating Solar
We are executing 70 MW floating solar project at Kayamkulam in
Kerala, on backwaters owned by NTPC in Rajiv Gandhi Combined
Cycle Power Plant. This will be the second largest floating solar
project in India and largest in the state of Kerala. We expect to
commission it by the end of this year.
Being #FutureReady – Our New Services Business
Electric Vehicle (EV) Charging-Greener Mobility
A complementary mix of policies is being carefully laid out
by the Government of India to promote EV adoption in
India. In addition to reducing the pollution load on the roads,
especially in urban areas, this shift promises more jobs in the
EV manufacturing space. To complement the EVs being sold,
presence of a suitable public charging infrastructure is crucial for
successful transformation of mobility in India.
Tata Power has made significant impact in developing an EV
ecosystem and encouraging EV adoption in the country. We are
committed to playing a key role along with our stakeholders to
achieve the national goal of transition to Green mobility.
In addition to its partnership with Tata Motors and Jaguar Land
Rover in FY21, Tata Power has also partnered with MG Motors, for
developing EV charging infrastructure for their customers and
dealers.
Charging points for public
532
National Highways catered
27 city pairs
Cities served
92
Home chargers installed
3,000
In FY21, we have launched our software platform and mobile
application which plays a crucial role in a customer’s journey
of EV charging by helping them to locate EV charging stations,
charging EVs and paying bills online. Our charging platform
has been conferred Gold Award by India Smart Grid Forum to
recognise the innovative solutions deployed through it. We
expect to expand our current network of 532 EV charging points
across 92 cities to over 1 lakh charging points across the country
by FY26.
Energy Services
Our interventions via a dedicated Energy Service Company (ESCO) business encourage large commercial and industrial clients
to embrace digitalisation and monitor energy savings. The ESCO vertical aims to substantially reduce carbon footprint and lower
the energy consumption through its integrated Energy as a Service (EaaS) offerings supported with digital technologies. We have
associated with multiple partners including global companies, which are into smart energy management and have commenced
offering solutions to clients primarily in industrial and commercial segments. We envision ESCO to be the one-stop solution by
leveraging on the diverse offerings in the power value chain.
Energy saving services
Ū Audits
Ū Design and retrofit
Ū Financing
Ū Implementing solutions
Ū Real-time monitoring
Energy management
Ū Transactions from exchange
Ū Optimizing power procured
Ū Open Access power
Ū Monitoring energy consumption patterns
Ū Renewable Purchase Obligation (RPO) compliance
We plan to leverage our diverse offerings in various segments of the power value chain to create a one stop solution for our customers.
This would enable us to provide enhanced service level to our clients to meet their present, latent and future energy requirements.
We anticipate a steep rise in revenue from ESCO to the tune of over ₹3,500 crore by FY26.
Home Automation-Smart Energy Management
India is home to a growing middle class population with the
ambition and drive to improve their quality of life. Aligning with
Tata Group’s philosophy, we aim to cater to the rising needs of
these consumers by providing innovative solutions at affordable
prices. Empowering our customers is key to our pursuit of our
new-age energy solutions.
Home automation solutions are aligned to enable cost savings,
energy efficiency and consequently reduce emissions. Being the
leader in green and sustainable initiatives, Tata Power developed
Internet of Things (IoT) based home automation solutions as
part of its smart energy management tools. We introduced Tata
Power EZ Home products for customers across the country. This
helps Customers to monitor, operate and schedule any kind of
home appliances such as ACs, geysers, lights, fans from anywhere
through EZ Home app. The solution has the analytical capability
to track and optimise energy consumption at appliance/room/
home level and predict monthly consumption.
We have launched the Tata Power EZ Home products in Delhi,
Mumbai, Pune, Bengaluru, Bhubaneswar and Surat so far through
rooftop solar channel partners. We are also planning to sell our
Home Automation products through E-commerce platforms
such as Amazon, Flipkart, Tata CLiQ and modern retail stores
such as Croma. We are planning to introduce more categories of
products to have a wide product range and are targeting to sell
2.0 lakh EZ Home devices through various network throughout
the country in FY22.
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Saluting our stalwarts –
future of conventional energy generation
Guided by our founder’s vision that clean, cheap and abundant
power is one of the basic ingredients for the economic
progress of a City, State or Country, we commissioned our first
generation capacity of clean energy i.e. Hydro Power Plant of
40 MW at Khopoli in Maharashtra in 1915. Ensuring stability
and sovereignty of electricity is of paramount importance to a
developing India. With a combination of hydroelectric and fossil
fuel based thermal capacity, we are providing equitable power
to people for over 104 years.
This approach has also enabled us to meet our customers’ needs
at affordable rates. However, as the energy demands continue
to grow and we became cognizant of the harmful impacts of
burning fossil fuels, we have taken a conscious business decision
to not develop any new projects based on fossil fuels. The equity
acquisition of Prayagraj Power Generation Company Limited
(PPGCL) by our foreign JV, Resurgent, in the previous year
remains to be our last foray in this sector.
Tata Power’s aspirations in thermal sector
Ū No new coal based capacity to be developed
Ū No further acquisition of coal based stressed assets
Ū Phase out coal based generation upon end of asset life or expiry of existing PPAs
Ū Selective waste heat based thermal generation through Tata Group companies to be pursued
Our domestic hydro portfolio, currently at 447 MW, continues to
operate strong due to our focused interventions in management
and optimisation of the assets. We undertake risk assessment
for existing projects as well as planned expansions or new
undertakings to ensure long-term availability of electric supply.
In addition, we also ensure that the impacts of hydro projects on
the surrounding biodiversity is minimised and we aspire to add
value to the lives of the neighbouring communities.
Focus areas for Hydros
Ū Maximise Plant Load Factor
Ū Centralised operation of plants
Ū Hydro Analytics – Inflow prediction and integrated maintenance with drone and video
Ū Support micro & mini hydro generation
Ū Large scale afforestation
Ū Western ghats biodiversity hotspot conservation
Illuminating lives – Transmission & Distribution
Efficiently transporting the power generated from stations to
the end users is an important segment in the power value chain.
Transmission and Distribution (T&D) is poised to attract 25% of
the investment in power sector between FY21 and FY25, with
suitable policies and regulations playing an important role to
initiate the investment cycle. An opportunity can be realised,
wherein the need for inter-regional corridor, dedicated green
corridor (for RE), enhanced capacity and improved efficiencies
will drive growth in the T&D space. Tata Power is further focusing
on creating a ‘Utility of the Future’ by developing an integrated
management system for advanced real time monitoring and
control of operations, which would further enhance customer
experience.
Our strategic focus on customer-centricity has enabled us to
emerge as one of India’s largest private power distribution
company. We have a well-established T&D portfolio in Mumbai
and New Delhi to serve our customers most effectively. We also
operate distribution service in Ajmer (franchisee based) to cater
to end user requirements. In line with the Company’s expansion
strategy
in distribution, we have recently acquired four
distribution companies in Odisha through competitive bidding
and expanded our customer base to 11.8 million. This business
vertical provides an opportunity to closely interact with our
customers We envisage serving 40 million customers by FY26.
To help conserve the environment, we go beyond our
business priorities to encourage our customers to reduce
their energy consumption. This is achieved through Demand
Side Management (DSM) initiatives, which helps reduce the
customer’s energy bills. Further details can be found on page 92.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements MANUFACTURED CAPITAL
Current T&D Portfolio
Transmission-Circuit KM
Mumbai Transmission
Powerlinks (Joint Venture)
Total
Distribution-Consumers (in million)
Mumbai
Delhi
Ajmer
Central Odisha
Western Odisha
Southern Odisha
Northern Odisha *
Total
*Acquired 51% stake w.e.f. 1st April 2021
Aggregated Technical & Commercial Losses
Mumbai Distribution
Delhi Distribution
Ajmer Distribution
Business Model
Distribution License
Distribution License
Distribution Franchisee
Distribution License
Distribution License
Distribution License
Distribution License
FY21
1,211
2,325
3,536
FY21
0.73
1.82
0.15
2.71
2.14
2.34
1.91
11.80
FY21
0.7%
7.3%
10.2%
FY20
1,206
2,325
3,531
FY20
0.72
1.75
0.15
Nil
Nil
Nil
Nil
2.62
FY20
1.4%
7.9%
10.0%
Focus areas for Transmission business
Focus areas for Distribution business
Ū Mergers and acquisitions
Ū Acquiring new distribution areas
Ū Greenfield opportunities to leverage project execution
Ū SMART meter installations
strength
Ū Process outsourcing, advisory and consultancy
Ū Discom privatisation and PPP business models
Initiatives to reduce AT&C losses
To reduce the length and load on 66kV and 33kV feeders, we conducted policy advocacy and introduced more 220kV grids near
load areas. This has not only led to the reduction in circuit length of incoming circuits, but also ensured reliable power supply to our
customers. To reduce AT&C losses further, we continued our activities across the following three focus areas:
Process Management
Commercial Management
Infrastructure
Ū Special electricity court for theft
and electricity dues
Ū Outsourcing collection of
outstanding amounts
Ū Focus on meter reading & billing
Ū Customer counselling group
Ū Installation of electronic meters
and automated meter reading
for high revenue customers
quality check
leading recovery
Ū Revision of meter specifications
Ū High revenue customer data
Ū Disconnection drives along with
analysis
zonal staff for recovery
Ū Mass enforcement raids in high
Ū Recovery of arrears from
loss areas
‘disconnection with due’ cases
Ū Camp connections in slum areas
Ū Optimizing revenue billing cycle
Ū Data analytics – defaulter / theft
prediction
Ū Energy audit module developed
to calculate loss
Ū Increasing payment avenues for
augmenting digital payments,
improving collection efficiency
and liquidating backlogs
Ū SMART metering: Tie-ups with
manufacturers and backward
integration
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements INTELLECTUAL CAPITAL
Innovation to reinvent
energy for tomorrow
Innovation is the key catalyst of value creation at Tata
Power. The intellectual capital that we have nurtured
and grown for years resides at the core of our strategy
and operational excellence. Our approach is to leverage
on our intellectual capital and steadily enhance and
enrich our business portfolio to drive sustainable growth
and deliver smart energy solutions, empowering our
customers to be future ready.
Strategic Business Objectives
Governance enablers
Material topics
SBO1: Profitable scale-up of
Renewables, Distribution, Services and
Energy Solutions busines
SBO4: Leverage digital platforms to
drive new customer centric businesses
SBO5: Develop future energy products
and solutions
Ū Committee of Directors
Ū Apex Management Committee
Ū Increase in renewables portfolio
Ū Innovation in process, services and
solutions
Ū Digitisation
Ū Cybersecurity
Key performance indicators
Key risks addressed
Sustainable Development Goals
Ū Research and Development (R&D)
activities and business collaboration
Ū Technology risk
Ū Climate change and business
Ū Energy efficiency and renewable
continuity linked risks
energy technologies
Ū Distributed energy
Ū Transmission and distribution
technologies
Ū Advance generation and
technologies
Ū Innovation sustainability related
services
Interaction of intellectual capital with
other capitals
HUMAN
MANUFACTURED
FINANCIAL
SOCIAL &
RELATIONSHIP
NATURAL
Capital
tradeoffs
Employee are key
partners in Innovation
process. Enhancing
capabilities of
our workforce by
leveraging through
various digital learning
platforms
Developing
innovative
technologies
enhances our future
ready product
portfolio
Innovative future ready
solutions in developing
new customer base
in energy efficient
businesses such as
home automation,
ESCO and thereby
contributing to
bottom-line
Energy efficient
solutions and
digitalisation
augments customer
satisfaction and
improves the
quality of life for our
communities
Innovative and
clean technology
improves operational
efficiency, reduces
GHG emissions and
reduces waste
Impact
across the
capitals
1,668
new ideas generated
in our innovation
workshop with our
employees
2 patents
granted in FY21
to improve the
metering system
and performance of
Solar PV installations,
respectively
₹3,500 crore
expected revenue
from ESCO business by
FY 2026
2
collaboration projects
rolled out in FY21
10,000 m3
of DM water saved
in CGPL due to
innovative water
conservation
measures
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements INTELLECTUAL CAPITAL
Entrenching innovation at the heart of our operations
With a 107 year old history, Tata Power’s intellectual capital
represents the Company’s knowledge and capability, inclusive of
patents, copyrights, software, rights and licenses intrinsic to our
business activities. We leverage digital solutions and innovative
technologies to enhance and enrich our market
leading
portfolio, enabling smart and value generated outcomes for all
our stakeholders. We continue to strengthen our investments
towards SMART grid technologies such as SMART meters, sensors
and IOT based technological solutions to ensure an intelligent
and efficient network (The Power of SMART). Additionally, we
provide impetus to the development and upgradation of energy
storage and battery systems to meet the high energy demand
of EV charging solutions as well as renewable business. This
approach enables us to inculcate fresh perspective across Tata
Power’s strategy to augment value creation and empower our
customers to be future ready.
Leveraging our intellectual capital
for value creation
To accelerate our value creation journey and push the edge of our innovation envelope, we follow a three step process to capitalise
on market differentiating opportunities and deliver value added services for our customers.
Ideate and strategise
- We build innovative capabilities through
Guide innovative thinking
- The Innovation Council set up at the
employee training programmes and across
competitions. Forums such as Power
Innovista, Shikhar, ACE, Idea Crucible and
Hackathon.
divisional level propels a stimulating work
culture. It ensures seamless implementation
of ground breaking ideas and prioritised
projects.
- Tata Power also participates at group level
innovation activities such as Tata Innovista
and e-Hackathon.
- We assess market needs to establish
short, medium and long-term technology
roadmaps with regard to emerging
customer requirements.
- We leverage partnerships with academic
institutions such as IIT Bombay, industry
partners such as Tata Trusts and the
Government of India to encourage and
implement sustainable, high quality and
affordable solutions.
- We continue to enhance our innovation
hub along with the Tata Group Innovation
Management System (GIMS), which
represents an integrated platform to post
and track theme based as well as ‘Blue Sky’
ideas and innovative solutions.
- We evaluate and shortlist ideas to current
business priorities and emerging customer
needs.
Drive efficacious implementation
- Our innovation projects are reviewed at
divisional and corporate levels.
- We conduct an annual business planning
exercise to track progress and improvements
in projects across divisions/functions.
- Tata Power’s Board of Directors approves the
final investment decisions.
- The Company implements a stage gate
process to launch a potential innovative
product or service.
- We earmark a separate budget to undertake
work on innovation projects that meet a
certain minimum criterion defined in the
stage gate process
KEY HIGHLIGHTS
KEY HIGHLIGHTS
KEY HIGHLIGHTS
- Established the Clean Energy International
Incubation Centre (CEIIC) in 2018. This
centre provides state of the art laboratory
facilities with qualified experts, specialists
and sector leaders for trials and testing of
products and services.
-
Identified improvement areas to
implement technologies to ensure a
resilient distribution grid and automated
support for our customers. Along with
this it also encouraged value added
services such as demand response, home
automation, solar rooftop and energy
efficiency initiatives.
-
Identified opportunities to transition
towards Energy as a Service (EaaS)
Business Model.
- 8 major collaboration projects are in the
implementation phase, of which 2 have
been rolled out in FY21.
- Tata Power’s divisional innovation council
includes a diverse set of members, which is
built on a strong foundation of inclusivity.
- Tata Power has filed 6 patents in FY21
- Granted 2 patents for ‘Tamperproof Metering
System’ and ‘Method to recover and prevent
potential induced power degradation in solar
photovoltaic devices’ in FY21.
- Enabled development of in-house projects
such as Remote Breaker Rack In/Out BoT
platform, among others.
-
-
In FY21, our R&D expenditure stood at ₹7.44
crore.
In FY21, Tata Power completed projects such
as Uniflow Generator, Painting BoT and Low
Voltage High Intensity Lighting. Projects
such as Solar Panel Cleaning BoT, Air Gap
inspection, Transmission Line Inspection,
Solar Panel Hot & Cold Detection, Switchyard
Inspection, PID, Clean Coal Centre with IITB
and AI integration for Discoms are still in
progress.
- Our innovative technology to address
grease leakage as well as pitch bearing
failure across our wind operations won
the Gold Award in the 39th National CII
Kaizen Competition in FY21.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements INTELLECTUAL CAPITAL
Investing in best in class technology
to drive sustainable growth
At Tata Power, we believe in accelerating innovation to drive maximum value for our businesses and stakeholders. We ensure
continuous improvement to enhance overall operational efficiency and propel innovative products or services across the
organisation. Taking into cognisance the macroeconomic environment, regulatory changes, technology disruption and future global
challenges, we have developed a technology roadmap with emphasis on evolving business opportunities. These include hydrogen
as an energy source, carbon capture and valorisation, Energy as a Service (EaaS), Battery Storage, SMART metering solutions and
growth in innovative solutions in renewables like hybrd, round the clock model, floating solar among others.
ENERGY AS A SERVICE (EAAS)
-
Introduced multitude Demand Side Management initiatives to augment CO2 reduction
- Lighting scheme for LED and Anti-Bac LED bulbs
- Electric Leakage Circuit Breaker (ELCB) at discounted rates
- Dedicated EaaS programme for ESCO opportunities
- Discount base AC scheme for all consumers
- Customer Engagement Interface at TPDDL Connect for frequently requested services
RENEWABLE ENERGY SOLUTIONS
-
Implemented 17 grid-injected solar plants with a total capacity of 1.7 MWp. This includes the largest
Utility Owned 1MWp grid-connected roof-top solar plant commissioned in 2010.
DISTRIBUTED ENERGY SOLUTIONS
- EV products and services
- DC fast charge
- Battery swap stations
- Demand response Hot Spot
- Energy transition with renewables based tariff for open access consumers
TRANSMISSION AND DISTRIBUTION TECHNOLOGIES
- 10 MWh system Battery Energy Storage System (BESS) installed at Rohini Grid Station. This system addresses
peak load management, enhances solar grid capacity and supports the Delhi Metro during exigencies, among
others.
-
Implementation of Advanced Metering Infrastructure (AMI) and roll-out 2,700 smart meter in Mumbai
distribution
- Launch of SMART Meter Reading and Dispatch app (SMRD)
INNOVATIVE SUSTAINABILITY RELATED SERVICES
- Deployed Radio Frequency (RF) mesh canopy in areas of operation and rolled out smart meters for customers.
-
Initiated smart metering on NBIoT communication technology for non-smart clusters with a target of 20,000
NBIoT smart metering in FY21.
- Tata Power and Social Alpha have jointly invested in Industrial IOT startup ‘URJA’ - an innovative
solution consisting of Smart Sensors and Analytics platform. URJA has been awarded a patent on the
sensor technology and analytics platform that generates ‘real-time actionable insights’ for factory floor
monitoring & automation. With this offering, Tata Power aims to be a fully integrated Energy as a Service (EaaS)
solution provider with niche Smart Energy Management offerings.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
- Launched a Heath Advisory System to provide healthcare recommendations with regards to the COVID-19
pandemic and work-from home challenges.
-
Introduced automated solutions such as load demand prediction, dues verification and a Unified Functional
Testing tool (UFT) for SAP application, meter reading entry, billing, invoice purchase requisition or order
creation, among others. We also implemented a selenium tool for automation testing of web applications.
- Encouraged implementation of analytics and e-security initiatives such as cloud based analytics delivery for
distribution utilities and ThreatCop Phishing Simulation Solution to reduce security risks to the organization.
-
Implemented Network topology correction to leverage the use of smart meter data analytics and provide
prescriptive anomalies in DT to CA mapping, derived from smart meter events
KNOWLEDGE‑BASED PLATFORMS
- Robust presence of group level knowledge based platforms such as Tata Ideas/ Idealogy, Tata Edge and Tata
Innovista
- Enhanced our in-house platforms to capture explicit and tacit knowledge such as:
- SHINERGY (platform for registering of improvement projects)
- Gyan Sangam (repository for SEEKH Sessions organised throughout the organisation)
-
-
IMS process approval and document availability
IMS and 6S Audit System
- Business Excellence Maturity Index
ADVANCED GENERATION AND TECHNOLOGIES
- Urban Micro Grids to enhance power supply to rural areas without the need of laying long rural feeders.
- Ground fault neutraliser system to enhance reliability and help with earth fault without the need of any
outage.
- Low Voltage Automation through Internet of Things (IoT) to support in load balancing and stable voltages.
- Community Storage at Distribution Transformer (DT) level for customized bus arrangement and battery
storages for reducing asset stress during peak hours.
- Tariff Reforms and subsidy design to enable better policy advocacy.
- Network optimization and RE impact to help reduce technical losses and forecast RE impacts.
- Deployed projects such as EV charging, Demand Response (DR) & Energy Transition (ET) and I-Electrix.
COLLABORATIVE PROJECTS FOR INNOVATION
- Tata Power set up the Central Control Room for Renewable Assets (CCRA) in 2019 to ensure regular monitoring
of assets, predictive maintenance analytics and enhance our overall initiatives across the renewable power
generation business.
-
-
Implemented an in-build peak power control at our solar operating plant to compensate for energy loss
during peak hours.
Introduced new products such as solar trees, solar artefacts, solar car ports and elevated solar solutions across
our EPC business.
- SAT-Bifacial system to harness energy from bifacial solar module maximizing the reflection from the rear side.
Further details regarding our digital initiatives and technologies can be accessed in Management Discussion and Analysis (MD&A)
Page 174 and in Board Report Annexure III (Page 146-149) respectively.
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements HUMAN CAPITAL
Fostering a differentiated
employee value proposition
At Tata Power, our human capital is not only a
strategic differentiator, but is at the heart and soul
of our existence. We consistently strive to create an
environment that supports our employees’ growth and
aspirations. Together with a 107-year old legacy, we
leverage our robust and collective pool of knowledge,
skills, competence, technical expertise, experience
and innovative culture to drive shared organisational
objectives and maximise stakeholder value.
Strategic Business Objectives
Governance enablers
Material topics
SBO6: Create an engaged, agile,
customer centric and future ready
workforce
Ū Tata Code of Conduct
Ū Human Rights Policy
Ū HR Policies
Ū Prevention of Sexual Harassment
Policy
Ū Employee well-being
Ū Training, education and
development
Ū Occupational health and safety
Ū Human Rights
Key performance indicators
Key risks addressed
Sustainable Development Goals
Ū Technology risk
Ū Climate change and business
continuity linked risks
Ū Talent retention and succession
Ū Labour management relations
Ū Diversity and equal opportunity
Ū Non-discrimination
Ū Risk of incidents concerning child
and forced labor
Ū Freedom of association and
collective bargaining
Ū Human rights assessment and
training
Ū Average hours of training for
employees
Ū Regular performance and career
development for employees
Ū Programs to upgrade employee
skills
Ū Hazard identification, risk
assessment and incident
investigation
Ū Worker training on Occupational
Health and Safety (OHS)
Ū Work related injuries and ill health
Interaction of human capital with other capitals
INTELLECTUAL
MANUFACTURED
FINANCIAL
SOCIAL &
RELATIONSHIP
NATURAL
Capital
tradeoffs
Building a culture of
innovation and out of
the box thinking helps
build a future ready
organization with
innovative offerings
and solutions
Impact
across the
capitals
Increased employee
participation in Power
Innovista and Shikhar
Learning and
development
programmes designed
to augment and
enhance employee
skill set and build
capabilities resulting
in growth in new
business initiatives and
development of future
ready technology and
energy solutions
Required availability
maintained even
during the time
of pandemic
for generation,
transmission &
distribution networks
Depletion of financial
capital to increase
investments in
employee training and
development. Strategic
programmes would
enable significant
return on investment
in the medium and
long term
₹4.94 crore
spend on training
& development of
workforce to enable
strategic financial
decision-making
Channeling employee
skill sets and
productivity levels to
enhance customer
satisfaction and drive
value creation for our
communities
Presence of
sustainability
awareness across
our workforce to
promote green
initiatives and reduce
environmental
impact
17,000
employees
volunteered across
1,380 CSR activities
Over 1,000
green heroes as part
of the Greenolution
initiative
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements HUMAN CAPITAL
Leading the way for
value creation
At Tata Power, we nurture a high performance and innovation
driven culture. Our Human Resource (HR) strategy aims to create
a work environment that is driven by our purpose and values.
We continue to focus on strengthening employee capabilities in
alignment with the Company’s objectives, while safeguarding
the welfare of our workforce. Additionally, we leverage seven
focus areas of our HR strategy to enhance employee engagement
and development to deliver sustained growth.
Tata Power’s workforce FY21*
Employee Category
Female
Senior Management
Middle Management
Junior Management
Workmen**
FDA***
Total
Contractual Workforce
Permanent employees with
disabilities*****
Male
351
1,100
4,860
9,273
1,550
17
71
762
377
265
1,492
17,134
1,792****
40,025****
3
33
Talent
acquisition and
retention
Human
rights
Employee
engagement
HR-Focus Areas
Succession
planning
Health and
safety
Diversity
Employee
welfare
Aged <30
years
Aged 30-50
years
Aged >50
years
0
2
1,407
292
788
2,489
N/A
1
125
796
3,765
6,167
661
11,514
N/A
18
243
373
450
3,191
366
4,623
N/A
17
Total
368
1,171
5,622
9,650
1,815
18,626
41,817
36
* Includes only manpower numbers of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, NELCO, TPDDL,
TPSODL, TPCODL, TPWODL
** Workmen includes Non-Management Employees
*** FDA includes employees and supervisory trainees on direct contract with the Company
****The gender wise data for contractual workforce is an estimate
*****Excludes data for TPCODL
Employee engagement
and wellbeing
At Tata Power, employee well-being represents the cornerstone
of our HR strategy. We continue to enhance our human capital
by understanding our employees’ aspirations and ambitions
through a two-way open channel. We ensure that our workforce
is engaged, commited and deeply connected to Tata Power’s
core values and vision.
Together with our employees, we co-create our HR policies,
ensuring regular communication across various forums. These
policies are further hosted on an online platform to enable easy
access and feedback across geographies.
Additionally, we recognise the integrated nature of employee
performance and a sustainable work culture. We understand the
value of employee engagement and welcome a blended nature
of work that ensures employee productivity and organisational
success. In addition, our Employee Engagement Survey (EES)
provides deep insight into the level of satisfaction and points
towards key organisational attributes that influence workforce
productivity.
Building on our Best Employer Category- Employee Engagement
Score of 83% in FY20, we are in the process of implementing
focused action plans to keep our workforce engaged and
enhance productivity levels. We seek continuous feedback from
our employees to identify improvement areas. It also helps us
to understand key requirements of our employees on which we
remain committed in a timebound manner. Besides, we monitor
employee engagement action plans through SAMIKSHA and our
Engagement Action Planning Dashboard.
Consistent focus on employee well-being helps build a dedicated
and motivated workforce We also put enough emphasis on a
healthy work-life balance. The COVID-19 pandemic disrupted
the traditional workplace with a profound adverse impact on
the lives of our people. While it was a period tainted by physical
and emotional challenges, we implemented myriad initiatives
to support our employees through various mental health
programmes. We also augmented heath insurance schemes
with required top-ups and additional provisions catering to the
special needs of the hour.
Detailed initiatives into Tata Power’s
COVID-19 response for its employees
Page no. 28
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements HUMAN CAPITAL
A glimpse into our employee engagement platforms and wellness initiatives are provided below.
Employee Engagement Platforms
MD AND SENIOR LEADERSHIP
COMMUNICATION MEET
Virtual communication with leadership
TOWN HALLS AND #LEADERS SPEAK
Virtual communication with leadership
BAATON‑BAATON MEIN ON MS
TEAMS LIVE AND COFFEE WITH
MANAGER
Virtual communication with leadership
REWARDS & RECOGNITION
PLATFORM AND POLICY
Employee awards and recognition
YOUTH POWER CONFLUENCE AND
TALENT NEXT
Leadership and talent recognition platform
HR CONNECT
HR outreach platform
ACTION PLANNING WORKSHOPS
Involving employees in journey to improve
engagement
PERFORMANCE MANAGEMENT
SYSTEM
The Leadership Competency Model - AMP
(Aspire-Motivate-Perform)
FORGOTTEN PASSIONS
Encouraging employees to talk about their
hobbies
Employee Wellbeing Initiatives
EMPLOYEE ASSISTANCE PROGRAMME
(EAP)
Professional counselling services
MEDICAL ADVANCE FACILITY ON
HOSPITALISATION
(Self and Immediate Family)
DOCTOR SPEAK : ASK THE EXPERT
SESSION
Addressing all doubts and guiding scientifically
VIRTUAL FAMILY GET TOGETHER
Continuing our efforts to involve families even
during COVID
GROUP TERM LIFE INSURANCE
LAUNCHED
Helping employees to build peace of mind and
security
CRECHE AND “NANNY @ HOME”
FACILITY FOR WOMEN EMPLOYEES
Supporting Diversity
FLEXIBLE WORKING OPTIONS FOR
WOMEN EMPLOYEES RETURNING
FROM MATERNITY LEAVE
Supporting Diversity
TRANSPORT FACILITIES FOR WOMEN
EMPLOYEES WORKING LATE
Ensuring safe transit of women employees
ONLINE SESSION ON YOGA &
MEDITATION
Furthering Mental Wellness
COVID-19-Taking care of mental health
During these tough times, Tata Power has been sensitive to
the employees’ needs to ensure overall wellbeing. ’Power
Within‘ was launched as an initiative to engage them in
small competitive activities, based on physical and mental
health, encouraging exercise, healthy food habits, and
expressing gratitude to family and colleagues. Employees
were encouraged to share their experiences on the internal
social media platform, which brought about a sense of
connectedness, despite limited in person interactions.
’Forgotten Passions‘
initiative utilised the time saved
due to the lack of work-related travel to enable employees
revisit old hobbies and interests. Employees could engage
and share their skills in areas such as growing vegetables,
cooking, crafts, photography, poetry, and painting, thereby
connecting them with others sharing similar interests.
Talent management strategy
Our commitment to building a diverse workforce and vibrant
work culture is at the core of Tata Power’s talent management
strategy. We support our employees to effectively manage
their careers and augment professional growth. In this regard,
we continue to deploy effective talent acquisition practices,
implement learning and development programmes as well as
help employees to enhanced performance through suitable
opportunities and job rotations to deliver value for all our
stakeholders and build a meritocratic workplace. As we journey
through the COVID-19 pandemic and prepare for the aftermath,
we emphasize on the importance of attracting and retaining
TATA POWER’S TALENT MANAGEMENT STRATEGY
Special sessions focusing on healing through yoga, breathing
techniques and meditation were organised for employees to
help lift morale during stressful times. This also enabled them
to continue to be pillars of support at home and at work.
Since the beginning of the pandemic, we leveraged our
partnership with ‘1to1help’ to spread awareness through
mailers, webinars, mindfulness sessions and worshops
to identify early signs of stress in colleagues. In addition
to benefiting from articles and webinars, the counselling
sessions were attended by 120+ employees across the
Company.
talented and committed professionals to support evolving
business needs. We thus continue to empower our employees
with specific skill-sets to hone their inherent talents in new focus
areas. Along with encouraging diverse and innovative thinking,
our talent management strategy identifies and assesses training
and functional behavioral skill sets with a systematic approach to
workforce upskilling and realising each employee’s professional
goals.
Business strategy
plans
Enhancing training and
development needs in line with
the organisation’s strategy and
emerging skill-sets in the industry
Individual development
needs
Identification of learning needs
through ‘goal setting’ exercises with
appraisers and through the People
Potential Development System
Focus group
needs
Identification of training and career
progression needs by the Capability
Building Team, Business HR Heads
and HODs for each department/
team
Succession
management
Identification of development
needs for successors to ensure
business continuity
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Our performance management system is at the heart of our
talent management strategy. In line with our strategic business
objectives, we aim to create an engaged, agile, customer centric
and future ready workforce. In this regard, we focus on building
core capabilities to drive innovation and customer centricity,
supporting our workforce to deliver sustainable solutions to our
customers. Furthermore, our performance management system
ensures efficacious talent management with all our employees
having received regular performance appraisal and feedback
in FY21.
We consistently aim to attract and retain a diverse and talented
workforce in line with the evolving requirements of the power
industry. We also have robust internal mechanisms to ensure fair
and transparent recruitment practices across the organisation.
Furthermore, the presence of numerous diversity policies at
Tata Power have enabled a holistic and progressive workplace
with women who represent 8% of our total workforce. In
FY21, notwithstanding the adverse impact of the COVID-19
pandemic, we were able to provide employment opportunities
and witnessed a 8.6% new employee hire rate. Furthermore,
our employee engagement and benefit programmes helped
us retain talent and led to only 2.1% attrition. We maintain a
constant communication with our employees using various
digital platforms. Also, for any operational or significant
developments in the organisation’s management or strategy,
we provide a minimum notice period of 3 months to all our
employees.
Attrition rate
3.8%
4.5%
2.1%
FY19
FY20
FY21
New Joinee & Attrition
Type
New Joinees FY21*
Attrition FY21*
Female
252
51
Male
1,355
331
Aged
<30 years
Aged
30-50 years
Aged
>50 years
1,170
127
367
98
70
157
Total
1,607
382
* Includes data of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, NELCO, TPDDL, TPSODL, TPCODL, TPWODL
** Employee figures include only Management, Non-Management and Supervisory trainees on direct contract with the Company
Learning and development
Learning and development is one of our core values at Tata Power. We employ numerous avenues of learning such as internal and
external training, focused group training, e-learning, coaching, mentoring, on the Job training (OJT), and action learning and higher
education, among others.
In light of the COVID-19 pandemic, we shifted from classroom training to live instructor led virtual trainings. These training
modules continue to evolve and encompass a variety of areas such as Safety, Job specific Functional & Technical skills, Behavioral
skills, Leadership skills, Contractor Safety Code of Conduct, Tata Code of Conduct (TCoC), Prevention of Sexual Harassment (POSH),
Sustainability Leadership, Business Excellence, etc. A glimpse into our training programmes and talent development initiatives has
been provided below:
Tata Power’s training modules and programmes
ASPIRE‑MOTIVATE‑PERFORM (AMP) LEADERSHIP
COMPETENCY MODEL
Ū Leadership model for behavioral competencies
Ū Competency model based on existing and future
competencies
FUNCTIONAL CAPABILITY BUILDING
Ū Future skill academies - digital & data analytics, sales
project management and culture centricity
Ū Gyankosh - certifications and technical courses
Ū दaksha – reskilling and redeployment
Ū Capacita – technical and domain-specific skill building
Ū PACE - Progressive Approach to Competency
Enhancement System (T&D cluster)
LEADERSHIP DEVELOPMENT AND TRANSITION ASSISTANCE PROGRAMMES
Ū Advanced Management Programme - A 15 month leadership development journey for Apex and Senior Leaders at IIM
Ahmedabad.
Ū myCoach – A coaching intervention for Apex and Senior Leaders comprising of a Hogan assessment, stakeholder
discussions and chemistry meetings
Ū Achieving your Leadership Potential (AYLP) – A 6-month leadership development journey for high performing and
high potential mid-level officers
HIGHER EDUCATION AND CAREER GROWTH
Ū External training programmes
Ū Higher Education Sponsorship Programme (HESP) policy.
Ū Integrated Senior Leaders’ Development Program (SLDP).
Ū Organising Work Integrated Learning Programme (WILP)
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Our eLearning platform ‘Gyankosh’ has over 88,000 learning resources,
accessible round the clock, across any device. It has been extremely popular
with all our employees, having achieved global benchmarks in terms of a
user adoption rate of 99.69% in FY20 and 98.52% in FY21 and a learning
resource completion rate of 80.24% in FY20 and 77.84% in FY21, respectively.
‘Gyankosh’ has also won Skillsoft’s Programme of the year Award 2020 for
excellence in the digital learning space. In FY21, our employees completed
over 5,09,872 learning modules on ‘Gyankosh’.
Average hours of training per employee FY21*
Employee Category
Senior Management
Middle Management
Junior Management
All employees (Including workmen and FDA)
Male
26.2
29.8
34.2
20.1
Female
30.6
36.2
32.9
27.0
* Includes only training data of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL,
IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, TPDDL
88,000+
learning resources
Human Rights
Our human rights management is embedded in our core values
with Tata Brand name synonymous with respect and upholding
of Human Rights. Our Human Rights Policy is aligned to the
principles of the International Labour Organisation (ILO) and
United Nations Global Compact (UNGC). This Policy is refined
periodically to ensure its relevance with global standards and
practices. Along with stringent adherence to the Tata Code
of Conduct, our pre-induction training and periodic refresher
modules span varied programmes on the protection of
human rights.
We consistently uphold fundamental human rights across
our operations and have a zero tolerance approach towards
discrimination on any ground. As a responsible company, we
strictly prohibit child and forced labour across our value chain.
Furthermore, we consistently strive to ensure that our work
environment is free from any prejudice or harassment. We
uphold the freedom of association and collective bargaining
among employees, enabling strong support for our labour
unions to address matters across employee health and safety,
notice periods and wages, among others.
Our security personnel and contractors
adhere to the Tata Code of Conduct,
which includes detailed aspects of
human rights
No complaints raised on the grounds of
child or forced labour, human rights and
discriminatory employment
51.8% (workmen cadre) of our employees
are covered by collective bargaining
agreements
No violations of the rights of indigenous
people
100% of our operations have undergone
human rights reviews
Resolved all 3 cases of sexual harassment
A canvas of diversity
Diversity at Tata Power is the foundation for our Company’s
success. We enable a value-creation journey that is efficient,
insightful and resilient leveraging upon diverse and varied
capabilities, skill sets and competencies covering across
gender and different cross sections of society . Being an equal
opportunity employer, we aim to create an inclusive workplace
to createe sustainable competitive advantage and build
a well-functioning meritocracy.
A glimpse into our policies to safeguard the diversity of our workforce are provided below.
Gender Diversity and
Inclusion Policy
Maternity and
Paternity leave
Health and Wellness
Policy
Medical Fund
Policy on Prevention of
Sexual Harassment of
Women
Empowering women
and an inclusive work
environment
Tata Power provided 6
months of maternity
leave before mandated
by law
Supporting our
employees and their
families for chronic
illness
Industry benchmark
for employee benefits
over and above the
Mediclaim scheme
Supporting women’s
right to work with
dignity in a welcoming
environment
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 : 1.04
1 : 0.93
1 : 1.04
1 : 1
1 : 1.06
1 : 0.93
1 : 1.14
1 : 1
Parental Leave:
191 employees availed of paternity leave
41 employees availed of maternity leave
95% return to work rate (male employees)
78% return to work rate (female employees)
*NOTE: Considers remuneration for employees of Tata Power, TPREL, CGPL,
TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR only
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Building a safe work environment
Tata Power remains committed to establishing a safe work
environment for its employees, union workforce, contractual
labor, suppliers, visitors and partners. Tata Power Safety
Management Framework covers all our business activities and
is aligned with the Tata Group Health and Safety Management
System as well as ISO 45001:2018 requirements. In line with
our aspiration to be a leader in safe work premises and
practices, we have an established Hazard Identification and Risk
Assessment (HIRA) process for both routine and non-routine
jobs. We regularly provide HIRA and Job Safety Assessment (JSA)
trainings to our operation, maintenance and service engineers.
Furthermore, through our internal audit process, we identify
key improvement areas to strengthen workplace safety. In this
regard, we also have an established SAP-EHSM platform to
ensure efficacy through incident reporting and investigation.
This reassures our workers and encourages them to report any
unsafe work conditions, with immediate action taken to resolve
safety aspects that pose a risk to our workforce. This is further
facilitated by leveraging digital tools, such as the Suraksha
mobile application, for convenient and swift reporting of unsafe
conditions and tracking of subsequent remedial measures.
We have established Safety Committees at division and site
levels to provide requisite guidance on all health and safety
matters. We value our workers feedback and ensure that their
inputs are taken into consideration during the HIRA process,
safety capability building sessions and incident investigations,
among others. Additionally, we also ensure that our workers are
apprised of requisite health and safety information, provided
across the incident learning platform such as Red Stripe Bulletin,
among others. We also organise safety campaigns and drives to
ensure maximum worker participation and awareness outreach.
Our Enterprise Process Model (EPM) process is established across
divisions. This enables us to continuously improve our health
and safety management systems. It also guides our critical safety
procedures and provides instructions for safe operations and
maintenance.
To safeguard the health of our workers, we have an established
process to minimise risks and enable effective identification and
elimination of work related hazards. Additionally, we provide
regular health and safety trainings to improve the effectiveness
of our health, safety and emergency management systems
across our business operations.
OCCUPATIONAL HEALTH SERVICES
- Presence of on-site trained and experienced medical professionals with a formal qualification in industrial and occupational health
- Established in-house laboratory to help implement periodic statutory health check ups
- Robust partnerships with various ISO certified laboratories to enable workplace occupational health checks at smaller sites
- Periodic maintenance of health check reports for individual risk mitigation through an online health management system
- Annual internal audits to ensure quality of services provided
- Daily inspection of all laboratory instruments for quality checks, annual services and calibration with authorised vendors
CONFIDENTIALITY OF WORKERS AND HEALTH‑RELATED INFORMATION
- All employee health records are maintained online with password protection
- Access to our cloud-based storage of employee health records is available with only those vendors who have signed a confidentiality agreement
with Tata Power
- Only aggregate health data (without employee details) is provided for management review meetings
- Our partnerships with outsourced laboratories are subject to confidentiality agreements with Tata Power
- As mandated by law, occupational health reports are only shared with relevant Government authorities or certified doctors and surgeons
- Analysis of aggregate health records supports us in implementing group level initiatives for the top occupational health risks identified
- No information is provided to any other private medical group or pharmaceutical group for any favourable or unfavourable treatment of our
workers
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Occupational health and safety training
Tata Power safety capability building
model (Employees)
Tata Power safety capability building
(Contract workers)
Ū Safety training provided at an induction and lateral
Ū Trainings and certifications provided by Tata Power Skill
movement stage
Development Institute (TPSDI)
Ū Certifications for critical safety procedures
Ū Job specific safety programs provided during induction
Ū Trainings for established health and safety management
Ū Supervisor certification programs
systems
Ū Safety behaviour and leadership programmes
Ū First aid and firefighting programmes
Ū Emergency response and preparedness programmes
Ū E-learning modules for critical safety procedures
Ū First aid and firefighting programs
Ū Emergency response and preparedness programs
Ū Safety behaviour programs
PERMANENT EMPLOYEES
Safety Induction Training
23,396 Manhours
Safety Capability Training
49,224 Manhours
CASUAL/ TEMPORARY/ CONTRACTUAL EMPLOYEES
Safety Induction Training
73,608 Manhours
Safety Capability Training
3,56,528 Manhours
In FY21, 16,777 trainees from our contractual workforce
benefitted from health and safety trainings conducted by
TPSDI, 67% of total trainees.
At Tata Power, we adopt a proactive and responsible approach
to safeguard the welfare of our employees. In this regard, we
provide many non-occupational and voluntary health services
for our employees and workforce.
Ū Medical fund and V-OPD insurance schemes to support
medical expenses not covered by insurance
Ū Medical advance policy for hospitalization without
cashless facility
Ū Out Patient Department (OPD) facility for employees
and their families for consultation, testing and
treatment of acute cases
Ū Disbursement of medicines for diverse chronic
conditions like Diabetes, HT and TB, etc.
Ū Programmes on diet and nutrition
Ū Walkathon programs to promote physical activity
Ū Monthly health seminars on managing diabetes,
hypertension, cancer awareness, among others
Ū Annual health check-up
Ū ‘Doctor Speak - Ask the Expert’ online session for
employees and their families
Our safety performance
The nature of our industry exposes our employees and workers
to common work-related hazards, such as working close to
live electrical systems , working at heights, among others. Our
robust and comprehensive health and safety management
system ensures effective hazard identification, risk management
and implementation of appropriate control measures at all our
sites. Further, we undertake a systematic investigation when any
incident occurs, which includes conducting a root cause analysis
as well as sharing learnings with other sites for implementing
preventive measures. Our efforts ensured that there were no
incidents of work related ill health or occupational health hazard
in FY21.
Safety linked metrics
Permanent employees
Fatalities (as a result of work related injury)
High consequence work related injuries (excluding fatalities)
Recordable work related injuries
Lost days
Manhours worked
*Rate of fatalities
*Rate of high consequence work related injuries
*Rate of recordable work related injuries
*Lost day rate
Safety linked metrics
Contract employees
Fatalities (as a result of work related injury)
High consequence work related injuries (excluding fatalities)
Recordable work related injuries
Lost days
Manhours worked
*Rate of fatalities
*Rate of high consequence work related injuries
*Rate of recordable work related injuries
*Lost day rate
*Rates have been calculated as per 10,00,000 manhours worked
Male
Female
0
2
4
143
0
0
0
0
1,46,06,268
21,72,200
0
0.14
0.27
9.79
0
0
0
0
Male
Female
2
7
13
12,222
0
0
0
0
5,07,99,366
10,26,600
0.04
0.14
0.26
240.59
0
0
0
0
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CAPITAL
Collective growth through
shared value
As India’s largest integrated power company, we strive
to delight our customers with smart and future ready
energy. We continue to co-create a sustainable future
along with our stakeholders by building a resilient
society and drive sustainable growth.
Strategic Business Objectives
Governance enablers
Material topics
SBO 2: Focus on sustainability with an
intent to attain carbon neutrality
Ū Tata Code of Conduct
Ū Corporate Social Responsibility
SBO4: Leverage digital platforms to
drive new customer centric businesses
SBO5: Develop future energy products
and solutions
Committee
Ū Stakeholders Relationship
Committee
Ū Demand side management
Ū Customer satisfaction
Ū Local sourcing
Ū Cybersecurity
Key performance indicators
Risk and opportunities
Sustainable Development Goals
Ū Climate change and business
continuity linked risks
Ū Demand side management
Ū Energy savings for customers
Ū Proportion of local suppliers
Ū Consumer health and safety
initiatives
Ū Products/services information,
labelling and marketing
Ū Compliances
Ū Customer Privacy
Interaction of Social & Relationship
capital with other capitals
HUMAN
MANUFACTURED
FINANCIAL
INTELLECTUAL
NATURAL
Capital
tradeoffs
Tata Power’s strong
sense of commitment
towards social
value provides our
employees with a
sense of purpose and
motivation
Our ethical and
responsible business
partners ensure a
robust supply chain
to consistently build
assets and provide
us with necessary
impetus to come up
with innovative and
future ready energy
solutions.
Investments in CSR
activities and local
businesses enable
robust collective
financial growth of
our communities
Evolving needs of our
customers propel us
to develop innovative
and future ready
technologies
Impact
across the
capitals
57,257 hours
volunteered by
employees collectively
200 villages
covered under
Microgrids, connecting
3,887 customers
99%
non-fuel
procurement was
locally sourced
2,700
SMART meters
installed in Mumbai
Distribution
Increasing adoption
of energy efficient
appliances and
smart technologies
significantly mitigate
any adverse impact
on our environment
and biodiversity
4,000+ Mwh
of energy saved in
Mumbai Distribution
area through various
DSM schemes.
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Empowering customers
for future-ready utility
Customer-centricity is at the heart of Tata Power’s strategy.
We strive to empower our relationship with customers by
strengthening our presence as a B2C company. Tata Power
applies a ‘Trust, Act, Transform and Assess’ (TATA) approach for all
its customer centric initiatives. Our corporate customer service
policy guides these initiatives to ensure that we deliver value-
added services and consistently exceed their expectations.
Furthermore, we partner with our customers in various energy
saving initiaves thus reinforcing our commitment towards
environmentally responsible growth.
TRUST
Engaging with our customers through multiple touchpoints to build trust and strengthen transparency, while addressing
their queries and concerns.
Ū Customer Relationship Centre
Ū Call centre
Ū Facebook
(CRC) (24/7 support)
Ū Email
Ū Customer web portal
Ū Customer support chatbot
Ū Mobile app
Ū SMS
Ū WhatsApp
Ū Twitter
Ū Communication by letter
Ū Microsoft Kaizala
ACT
Delivering quality products and services to meet the expectations of our customers, while safeguarding their health, safety
and data privacy
Ū No incidents of non-compliances pertaining to products/services information and labelling, marketing
communication and health and safety
Ū Conducted lifecycle assessments for all products/services across our portfolio to implement the highest standards
of health and safety
Ū Zero complaints regarding customer privacy breach or customer data leak, theft or loss.
TRANSFORM
Transforming our business activities to augment customer-centric initiatives, empowering them for tomorrow’s world.
Solar rooftop, Solar Pumps & EPC Business
Ū Enhancing
experience of over 30,000
customers through various digital assets
such as:
Ū Solar calculator to save energy cost
Ū Chatbot
on websites
and mobile
applications
Ū 3D visualisation and sizing tool
Ū Supporting 275 channel partners through
Channel Partners' (Sales) Incentive
Ū Solar EPC solution for customers
Ū Schemes during COVID-19 pandemic to help
grow their business
Ū Changing the landscape of rural India through
dedicated focus on setting up around 1 million
Solar Pumps by FY26
Microgrids
Ū Benefited about 3,887 rural customers with
adequate and cheap power supply, and
provided green jobs to local youth
Ū Commissioned 161 microgrids with over 4.8
MW installed capacity
Ū Launched mobile application for monitoring
and ease of payment options
EV Charging
Ū Installed 532 public charging points in over
92 cities, so far, on our way to create a thriving
EV ecosystem for customers
Ū Launched our software platform and mobile
application to help customers
locate EV
charging stations, charge EVs and pay bills
online
Ū Aim to integrate 1 lakh EV charging stations by
FY26
Ū Invest in and promote the development of
Charging Point Operators (CPOs) in the next
four years
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ESCO
Ū Energy Service Company (ESCO) business
dedicated to encourage large commercial and
industrial clients to embrace digitalisation for
effective monitoring and saving of energy
Ū Associated with multiple partners to provide
integrated Energy as a Service (EaaS) offerings,
supported with digital technologies
Ū Committed to providing enhanced service to
our clients and meet their present, latent and
future energy needs by leveraging our reach
throughout the power value chain
New Business Services
Ū Leveraging our reach in the power value chain
and existing Discoms experience to provide
customised new-age solutions and enhance
customer experience:
Ū Home automation
(Tata Power EZ
home products and EZ home app) – IoT
based efficient and cost effective home
automation solutions to enable customers
to monitor, operate and schedule home
appliances
Ū Value added services – e.g. Energy Analytics,
Energy Storage
Ū Floating solar – Augment the energy
potential of existing hydro projects by
utilising reservoir surface
Ū Battery storage solutions – Ensuring
for
availability
uninterrupted power
customers
ASSESS
Addressing customer feedback effectively through grievance redressal mechanisms (supported by SAP-CRM system) and
conducting annual customer satisfaction surveys.
CSAT score
Generation
Mumbai Transmission
Mumbai Distribution
TPDDL
Average CSAT score
89.5%
93.8%
96.0%
FY19
FY20
FY21
92%
92%
90%
97%
98%
85%
99%
90%
89%
96%
95%
94%
FY21
FY20
FY19
Enhancing customer experience
Customer concerns
Concern redressal and service improvement
Network reliability
Availability of lines
Tripping of transmission
lines due to bird hits
Failures and tripping of
lines; quality of power
Ū Reducing the forced outage of equipment
Ū Improving customer communication on service interruptions
Ū Optimising utilisation of assets
Ū Commissioning additional lines for interconnecting with other Discoms to improve the reliability of power supply
Ū Commissioning new gas insulated switchgears and transformers at receiving stations to meet load growth
Ū Reducing outage time through remote operation of line isolators carried out from Supervisory Control and Data
Acquisition (SCADA) system
Ū Implementing hot line working and carrying out hot line washing
Ū Ensuring line patrolling, thermal vision scanning and sensitising local stakeholders about safety hazards around
transmission lines
Ū Installing bird repelling contraptions on transmission towers
Ū Installing Power Quality meters such as SMART Meter Reading and Dispatch (SMRD) application
Ū Implementing systems to reduce fault level and impact of voltage fluctuations at receiving stations
Ū Carrying out detailed energy audit for consumers
Ū Replacing old insulators
Voltage fluctuations
Ū Adding capacitor banks at receiving stations
Electrical safety awareness
among communities
Quick response and
flexibility in incorporating
changes for EPC projects
Continuous and affordable
electricity supply through
Microgrids
Ū Sensitising communities (through partnerships) about safety precautions around transmission lines and
importance of ISI marked electrical equipment
Ū Conducting safety awareness sessions and audits for consumers
Ū Communicating through clearly defined modes – contractual and formal
Ū Improving Turn Around Time (TAT) and adhering to project schedule through stronger review mechanisms
Ū Providing 24 hour supply for domestic and commercial establishments
Ū Introducing EMI options for connection charge
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Demand side management
Energy conservation is at the forefront of all our endeavours and we partner with our customer on various energy saving
initiatives. Going above and beyond our business operations and priorities, we continue to promote customer focused, energy
efficient solutions to reduce energy cost for the customers . We provide seamless online registration facilities for our customers
on the Tata Power website, which also enable monitoring of the energy saved.
Demand Side Management (DSM) initiatives in FY21:
Awareness and energy-efficient programmes
Ū Brushless Direct Current (BLDC) super efficient ceiling fans
programme
Ū ACs exchange programme
Ū LED tube light programme
Energy audit to identify energy saving opportunity
Discount based energy efficient program with Crompton Greaves
Energy saved
4,000+ MWh
Load shifted
2 MW
Benefits
CUSTOMERS
UTILITY
SOCIAL
Ū Reduced energy expenditure
Ū Reduced cost of service
Ū Reduced environment
Ū Improved productivity
Ū Improved customer service
Ū Improved service value
Ū Improved operational efficiency
Ū Encouraged safe behavior
Ū Reduced capital needs
degradation
Ū Maximized customer welfare
Ū Mitigated impacts of climate
change
Enhancing energy efficiency
Green power tariff
We have arranged for energy efficient appliances such as LED
tube light, BLDC celling fans, refrigerators, and AC, among
others, to our Mumbai customers at discounted prices, enabling
them to increase energy efficiency and reduce energy bills. With
an approved rebate from the Maharashtra Electricity Regulatory
Commission (MERC), 6,000 appliances were arranged for our
consumers in FY21. This led to over 4,000 MWh of energy savings
in Mumbai Distribution. In FY21, a total of 6,750 customers in
Mumbai Distribution owned rooftop solar plants with a collective
capacity of 174 MWp. We also motivate our bulk consumers to
carry out energy audits through accredited auditors from the
Bureau of Energy Efficiency (BEE), to identify the potential for
energy savings.
Aligning with the Government of India’s ambitious goals of
carbon emission mitigation, Indian corporates are increasingly
seeking to shoulder the responsibility and become a zero carbon
company. Tata Power is humbled to support their endeavours by
offering 100% green energy to customers by levying a Green
Power Tariff.
Tata Power brought this concept for the first time in Maharashtra,
enabling customers to source 100% RE power by paying Green
Power Tariff of ₹0.66/kWh in addition to regular tariff. We also
issue Green Energy Certificate to consumers opting for 100%
green energy for their monthly consumption, adding credibility
to the customer’s stance of being a zero carbon enterprise.
Promoting solar rooftops
We have actively encouraged widespread adoption of solar
rooftops to add value at scale to our society and the planet.
Our campaigns under “#TataPowerSolar” have promoted the
affordability and cost saving potential of solar rooftops and
urged existing customers to be Solar Ambassadors.
Twitter campaigns under #TataPowerSolar
1,02,312
Reach
8,183
Post clicks
284
Likes, Comments & Shares
1,50,552
Impressions
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Responsible supply chain management
We have a Responsible Supply Chain Management (RSCM) Policy (https://www.tatapower.com/pdf/aboutus/RSCM-14.pdf ) that
guides our engagement with vendors and suppliers, and promotes fair and transparent business practices. It also provides guidelines
to select responsible suppliers and service providers. The policy is an integral part of our supplier relations to ensure alignment with
Environment, Health and Safety, Human Rights, Ethics and Compliance parameters.
We ensure that our service providers, suppliers and vendors comply with all statutory norms and fundamental labour principles. The
Tata Code of Conduct supports the RSCM policy by requiring all our associates to conduct business with fairness and transparency.
Our Procurement Policy caters to multiple business requirements across fuel sourcing, materials and services procurement, material
management and inventory management. No significant changes were observed in our supply chain during FY21.
Driving valued impact -
Empowering target communities
As a responsible corporate citizen, we continue to leverage our partnerships with stakeholders for betterment of life in our
local communities and deliver long term value. We envision our communities to be sustainable and future ready by improving
education and livelihoods while empowering the women, youth, institutions, and community collectively. Through the Tata
Power Community Development Trust (TPCDT), we introduce initiatives that focus on diverse community based projects
that support causes close to our hearts. Our approach is collaborative, data driven and outcome based for all community
initiatives enabling us to translate our values into scalable impact across communities.
We ensure a responsible supply chain through:
Our approach to sustainable supply chain
Supplier assessment
Ū Assessment of Business Associates (BAs) to ensure strong
commitment on Environmental, Social and Governance (ESG)
policies
Ū Evaluation of quantifiable measurement of willingness
exhibited by the BA towards a positive ESG impact
Promotion of Sustainable and Local sourcing
Ū Enhance skill and capacity development of the
local
workforce and community for higher safety, productivity and
quality standards
Ū Ensuring BAs comply with Human Rights clauses in all
significant contracts issued (non-fuel contracts)
Ū Encouraging
local business, with 99% of non-fuel
procurement being locally sourced in FY21. A total of 46%
of overall procurement budget (including fuel) was spent on
local suppliers
e-Business Associates meet 2021
A one of a kind initiative, where we conducted a digital
event for our stakeholders and partners to provide support
and solidarity during the pandemic
Highlights
Affirmative Action (AA)
Ū Promoting the inclusion of SC/ST in business opportunities,
driven at the corporate and division/site level
100% of our new suppliers with PO value
more than ₹5 crore (other than traders), were
screened through ESG criteria in FY21.
Ū Encouraging entrepreneurship skill among communities
through vendor enlistment and ordering (for FY21, ₹9.63
crore order to 24 vendors from SC/ST community)
Ū Supporting Self-Help Group (SHG) members, youth, women,
livelihood
farmers, and fishermen through skillset and
initiatives.
These vendors represent 62% of total value of
POs (other than fuel) issued in FY21
24,914
TPSDI trainees
7% unemployed youth trained
(of which 28.61% belonged to
SC/ST community)
69% eligible youth provided with
employment opportunities
In FY21, all our suppliers were found to have
no negative (significant or potential) social and
environmental impact
Our CSR Vision 2026
To impact 30 million lives positively around
the regions we operate in
Aligning action towards UNSDGs
Encouraging employees to volunteer
for 15 hours every year
Fostering sustainable interventions through
programme management excellence
Furthering livelihoods readiness, life skills,
digital and financial literacy
Creating sustainable partnership with
civil societies, governments, corporates,
and academia
Affirmative Action and social inclusion
efforts for systematically marginalized
groups
Highlights
₹39.24 crore
CSR expenditure
102%
CSR expenditure
target achieved
46.65 lakh
beneficiaries against
target of 30 lakh
56%
of all CSR beneficiaries
are women
57,257
hours volunteered collectively by around 17,000
employees across 1,380 activities
CSR Beneficiaries
(in lakh)
122%
24.67
20.30
118%
27.10
22.90
46.65
156%
30.00
FY19
FY20
FY21
Achieved
Targeted
% Achieved
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Contributing to a thriving and resilient society
Tata Power – a responsible utility
At Tata Power, we leverage our resources to build a thriving and empowered society. Our CSR vision and strategic objectives are
translated into action across our thrust areas. Additionally, our CSR activities are guided by a robust governance system which
enables us to refine our initiatives in line with independent monitoring and evaluation frameworks.
Our CSR approach is detailed below.
Thrust Areas
CSR Aspirations 2026
Community Welfare
Education
Ū Train 10,000 Trainers/Community Leaders to deliver blended learning through
Govt. schools/training institutions
Community Empowerment
Skilling & Livelihoods Readiness
Ū Benefit 4 lakh youth - directly & indirectly through digitally enabled, integrated
vocational training centers
Ū Build capacities of 25,000 SHGs in target regions
Ū Co-develop 10 unique sustainable/recycled products and services
Ū Facilitate scalability & regular business pipeline for SHGs
Financial and digital inclusivity
Ū Coverage of marginalised and deprived communities to access government
entitlements and schemes
Ū Support target communities & regional institutions by enabling capacities & skills for
water recharge & management, health & nutrition
At Tata Power, our CSR activities are guided by our Corporate
Social Responsibility policy. We monitor the outcomes and
milestones of our programmes regularly, and commission
independent impact assessments in three to five year cycles.
To address these impacts, we have implemented necessary
legislative compliances,
preventive measures, ecological
voluntary conservation efforts and community enabling
programmes to sustain their livelihood and income.
We are cognisant of the significant impacts that some of our
power generation activities have had on local communities.
These impacts are associated with land acquisition, air pollution
and consumption of industrial water supply among others.
As a socially conscious company, we ensure consistent
improvements across our CSR programmes and translate our
promise of ‘Care for Community’ into a shared value creation as
well as generating long term employment.
Tata Power’s Corporate Social Responsibility Governance
CSR committee
Ū 3 Board Directors (including 2 independent directors)
Ū Guides the CSR policy
Ū Identifies, outlines and reviews thematic focus areas, geographies,
target communities, and resource allocation for CSR activities
Ū Deploy development interventions through Tata Power Community
Development Trust (TPCDT) and other not for profit partnerships
Ū Activities implemented by a team of over 35 community development
professionals
to
15
We extended our COVID-19
states
response
across India with enhanced
focus towards migrant and
vulnerable communities. We
are humbled to report that
the Company covered 16.59
lakh beneficiaries
through
its
community
COVID-19
response and relief activities,
which can be accessed on
page 28 of this report.
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Our CSR Programmes
Our CSR focuses on areas covering education, health and sanitation, livelihood and skill building, water and financial inclusivity. We
are humbled to have contributed ₹39.24 crore for the welfare and empowerment of communities which benefited over 3 million
people.
Community welfare
Education
Vidya
initiatives under Vidya
includes
The
remedial coaching for children, digital
education,
teachers,
academic coaching and counselling up
to primary level.
training
for
Explored partnerships with digital service
providers like TCSiON, learning delight,
ALIG and provided solutions to ensure
continuity of curriculum in rural and
urban schools.
Water security
Amrutdhara
initiatives
11.85 lakh beneficiaries covered under
demand and supply side management
of water
across Delhi,
Maharashtra, Gujarat, Rajasthan, Madhya
Pradesh, Jharkhand and Tamil Nadu. We
collaborate with various government
schemes to enhance our outreach.
Ū Implemented
innovative
irrigation
practices across the farming sector
Ū Provided
integrated
drinking water management systems
sustainable
Health and sanitation
Arogya
This programme includes initiatives for
maternal and child health, sanitization,
immunization and health awareness.
We also collaborate with NGOs and
government health services to spread
awareness regarding behavioral change
amongst communities.
Ū Provided Tele Medicine support to
community members
Ū Increased health awareness and access
to government health services
Community empowerment
Financial and digital inclusion
Adhikaar
Aims to inform, enable and empower
marginalised communities
including
SHGs
4.59 lakh beneficiaries covered worth
₹312 crore under various government
schemes
Won Gold award in 9th ACEF Asian
Leaders Forums for excellence in CSR
for Adhikaar.
awareness
Inculcating
across
communities on various government
schemes and facilitating linkage with
them.
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Livelihood and skill building
ACHIEVED
Ū Adopted microenterprise-based capacity building
activities for upskilling and improving livelihood
opportunities for women and Self-Help Group
members.
Ū Provided vocational skills to the youth for
augmentation of household income
Ū Strengthened
village
trainings and enhanced leadership skills
institutions
through
Ū 1,239 Self Help Group (women) with 14,325
members involved in various flagship initiatives
including Dhaaga, Abha, Bijuli didi, Sakhi, Roshni
and Samriddhi, generating cumulative revenue of
₹4.70 crore.
Anokha Dhaga & Saheli World
Ū Upskills women’s SHGs
& tailoring, generating
participating
chain of identified goods & services
in stitching
income and
in the economic value
Daksh
Ū Augmenting skill building among
the youth to provide employment
opportunities.
Ū Over 47,000 youth
skilled
(11%
Ū Promoted and sold through Saheli
belonging to the AA community)
Samriddhi
Creating opportunities for
communities, particularly farmers to
build assets, adopt new livelihoods and
seek opportunities for growth.
World (e-commerce platform)
Ū Provided around 6 lakh reusable cotton
masks. New SHG 95 - Filter based mask
introduced by SHG members
TPSDI
Ū Empowering the youth and addressing the skill-gap challenge
Ū Provided modular training and certification on employable skills
Ū 6 TPSDI training centres in India
Ū Trained over 17,000 youth on safety and soft skills
TPSDI-ABHA
Promoting employment
for women through skill
development initiatives
Over 1,700 women
trained
TPSDI – skills on wheels
Providing mobile skill training
to neighboring electricians,
along with Recognition for Prior
Learning (RPL), domestic wiring,
and solar skills
Maval Dairy Enterprise
Facilitation Project
Ū Supports women
empowerment
through an association with the Maval
Dairy Board, local leaders and technical
partners.
Ū Over 1,500 women have been skilled,
supported and enabled to further this
community-led enterprise benefiting
over 20 villages in the vicinity.
Tata Power- Youth employment
programme
Ū Collaborating with TCS to increase
employment rate of youth in organized
sectors
Ū Providing
training on soft skills,
business communication and etiquette
Ū Qualified candidates are placed in the
BPS/KPO services of TCS
ABHAs, Bijuli Didis & SAKHI
Programme
Ū TPDDL evolved a unique model
furthering women's
livelihoods,
customer care & safety and shared
value generation by upskilling &
involving women's SHGs in Metering,
Billing & Collections operations.
Ū This is being successfully furthered in
Delhi, Odisha and Mumbai serving a
large customer-base in slum & rural
areas.
Ū Over 1,900 women benefit from this
inclusive business model
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Beyond our thrust areas
Social Inclusivity & Affirmative Action policy
As part of Tata philosophy & focus on social inclusivity, Tata Power
continues to focus on the upliftment of target communities
from Scheduled Castes and Scheduled Tribes through defined
‘E’s- Employment, Entrepreneurship, Employability, Education
and Essential amenities around our operating sites. In FY21,
we have covered over 4 lakh beneficiaries under AA initiatives.
Additionally, the Tata Power Skill Development Institute (TPSDI)
inducted 25% trainees from AA communities and ensured
exemplary placements after training. We also support SHG
members with the provision of income generation activities.
farmers and
Additionally, we supported youth, women,
fishermen through skilling and livelihood initiatives. These
initiatives demonstrated an overall increase in income level and
supported us to make community members self-reliant.
Club Enerji
Club Enerji is Tata Power’s nationwide movement relentlessly working towards spreading the message of being responsible citizens
by conserving energy and resources across the country with a strategic focus on nation building.
Won Gold for “Say No to Plastics” module in
multimedia CD Rom based presentation in
ABCI 2020
Won Silver for “Switch Off to Switch On”
campaign under “Most admired Not for Profit
Marketing” category at 9th ACEF Leaders
Forum Award
The programme was launched 12 years ago with the aim
to create awareness among school students on energy and
resource conservation. Through a myriad of learning modules,
Club Enerji has become a holistic movement to save energy
and natural resources enabling children to become responsible
citizens and proactive leaders of the future.
In FY21, due to the COVID-19 pandemic, we could not conduct
any on-ground programmes. However, we have launched our
'E-learning Fridays' module, which comprises bi-weekly webisode
series and quizzes for children and their parents. The webisode
series aims to help them adopt sustainable living practices amid
the lockdown. 'E-learning Fridays' supports us to reach out to the
future generation through a digital platform and deliver relevant
and practical
information regarding sustainability. These
modules covered topics on energy and resource conservation,
fuel conservation, water management, afforestation, ‘Say No to
Plastic’ and disaster management, among others. The success of
the same was reflected through 35,000 views for the webisode
series.
EDUCATE
School children about
energy conservation
measures
ENGAGE
With peers and community
to spread awareness
ENHANCE
Initiatives by increasing
participation from schools
EMPOWER
Communities through self-
sustaining mini clubs
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Creating lasting value with
a prudent approach
At Tata Power, we consistently strive towards sustained
value creation of all our stakeholders. With the
confidence and undeterred support of our shareholders,
we continue to secure cost effective resources required
to scale-up our business and generate risk adjusted
sustainable returns for our shareholders.
Strategic Business Objectives
Governance enablers
Material topics
SBO1: Profitable scale-up of
Renewables, Distribution, Services and
Energy Solutions business
SBO2: Maintaining financial leverage at
targeted levels
SBO3: Minimizing coal cost under
recovery in CGPL
Ū Audit Committee
Ū Risk Management Committee
Ū Finance Committee
Ū Internal Financial Controls (IFC)
Ū Internal Audit System
Ū Impact on business due to change
in coal pricing
Ū Sustainable investing
Ū Reduce leverage
Key performance indicators
Key risks addressed
Sustainable Development Goals
Ū Return on Equity (RoE)
Ū Return on Capital Employed (RoCE)
Ū Improvement in leverage ratios
Ū Free cashflow generated
Ū Investment in renewable,
transmission and distribution
business
Ū Market capitalisation
Ū Availability of cost- effective capital
including debt capital
Ū High leverage
Ū Liquidation of regulatory assets
Interaction of financial capital with
other capitals
HUMAN
INTELLECTUAL
MANUFACTURED
SOCIAL &
RELATIONSHIP
NATURAL
Capital
tradeoffs
Investments in
learning and
development to
augment and enhance
employee skill set and
also build capability
Investments in R&D
enable development
of innovative
technologies and
improves our patent
profile
Provides the required
capital for enhancing
our asset portfolio
and manufacturing
pipeline
Funding CSR
initiatives and an
increased share of
spending on local
suppliers enhances
the livelihood of our
local communities
Impact
across the
capitals
₹4.94 crore
investments in training
programs to enhance
employee skill sets
₹7.44 crore
investment in R&D
₹22,555 crore
cumulative investment
in renewable energy
₹39.24 crore
CSR expenditure
(consolidated basis)
Investment in
improvement
measures and
operational
efficiency technology
to reduce GHG
emissions. Also
focus investments
renewable ventures
help reduce CO2
intensity numbers
₹5.48 crore
spent in various
environment &
sustainability
activities in FY21
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Our overarching objective has always been to create
sustainable value for all stakeholders, despite macro -
economic headwinds and industry challenges. We realised
that financial fitness is the key to the future of the Company.
In the last 2 years, all efforts were towards deleveraging the
Balance Sheet.
This is evident from the increase in the market capitalisation
of the Company from ₹10,496 crore in FY20 to ₹32,990 crore
in FY21, registering 214% increase. The Company raised
`2,600 crore by way of issue of equity shares on preferential
basis to Tata Sons Private Limited, helping the Company in
its objective of deleveraging.
The Company repaid external debt amounting to ₹7,613
crore during the previous year and the net external debt
stands at ₹35,946 crore as at FY21 on a consolidated basis.
Market Capitalisation
(in ` crore)
32,990
FY21
FY20
10,496
214%
As of 31st March 2021
The initiatives that helped the Company in deleveraging are:
Ū Prudent management of operations and working capital
Ū Disinvestment of non-core assets
Ū Cost optimisation
Ū Infusion of Equity by the Promoters
All the above actions as well as optimal refinancing have resulted
in upgrade in credit rating from AA- to AA. This has helped us
reduce our average interest cost to 7.40% p.a compared to 8.30%
p.a last year.
We continue to channelise our efforts towards expanding our
renewables portfolio, distribution and emerging businesses of
rooftop solar panels, solar pumps and electric vehicle charging
infrastructure and push the bar on performance across the
value chain.
The Company’s capital allocation principles are based on
a balanced approach towards risk and rewards with clear
preference to Renewables, Transmission & Distribution and new
consumer business.
The support of all our stakeholders helps strengthen our
commitment to positively impact lives. Understanding and
being responsive to the interests of our stakeholders through
effective dialogue and engagement is critical to delivering on
our commitment.
AA
upgrade in credit rating
GOLD award from Institute of Chartered
Accountants of India for “Best Financial
Reporting” for FY20
‘Best ESG Disclosure’ Award under the ESG
Category - Midcap at the IR Society – Investor
Relations Awards 2020 held jointly with BSE &
KPMG
Focus Areas
Consistent Revenue Growth
Strengthen Balance Sheet
Ū Develop balanced portfolio of business
Ū Simplify corporate structure by reducing the number of
Ū Prudent bidding for diverse projects
Ū Cost management
Ū Efficient working capital management
subsidiaries
Ū Deleveraging
investments
through divestment of non-core
Ū Long-term resolution for Mundra project
Ū Asset and debt light growth structure
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FINANCIAL CAPITAL
Key Financial Trends and Ratios
EBITDA
(in ₹ crore)
Net Profit After Tax
(in ₹ crore)
FY21
FY20
FY19
FY18
FY17
8,851
7,978
9,269
8,317
8,636
7,235
7,850
6,296
7,419
6,193
Underlying EBITDA
EBITDA
FY21
FY20
FY19
FY18
FY17
1,439
1,316
1,100
2,606
2,611
Return on Equity*
(%)
Net Debt/Equity and Net Debt/EBITDA
Economic Value Creation at Tata Power
10.8
Tata Power generated a positive economic value retained for the last 2 years aided by the initiatives on deleveraging, cost
optimisation and efficient working capital management.
7.0
6.6
5.8
6.0
7.4
6.2
2.8
7.1
5.7
2.4
6.2
5.2
2.2
5.2
4.7
2.0
4.5
4.1
1.4
Particulars (in ₹ crore)
Revenue Generated1
Economic value distributed
Operating costs2
Employee wages and benefits
Payments to providers of capital3
Payments to government by country4
Community investments-CSR
FY18
26,863
28,673
21,491
1,382
5,158
602
40
FY19
30,370
30,592
24,151
1,339
4,557
506
39
Economic value retained = Direct economic value generated less
economic value distributed.
(1,810)
(222)
FY20
29,510
29,110
22,352
1,441
4,674
609
34
400
FY21
33,518
33,161
26,090
2,156
4,429
447
39
357
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)
FY17
FY19
* figures before exceptional items
FY18
FY20
FY21
FY17
FY18
FY19
FY20
FY21
Net Debt/Equity
Net Debt/Underlying EBITDA
Net Debt/Reported EBITDA
Net Debt (in ₹ crore) and Interest Coverage Ratio
Free Cash Flow
(in ₹ crore)
1.3
1.1
1.2
1.3
1.3
45,655
44,609
44,853
43,559
35,946
FY21
FY20
FY19
FY18
FY17
2,539
2,271
-3,334
-1,443
295
FY17
FY18
FY19
FY20
FY21
Net Debt
Interest Coverage Ratio
You may refer to “Management Discussion and Analysis” section on page number 161
for more details on financial performance of the Company.
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Strategic Business Objectives
Governance enablers
Material topics
Catering to our customers’
needs in harmony with
nature
As India’s largest integrated power company, Tata Power
is cognizant about the scale of impact its operations
has on the environment. Proudly embracing our
responsibilities, we have chosen to lead by example
on environmental stewardship and ensure a positive
outcome for our customers, communities and other
stakeholders. We have taken ambitious targets to realize
our vision of being carbon neutral, internalising circular
economy on water and waste management and being
a benchmark in the utility sector.
SBO1: Profitable scale-up of
Renewables, Distribution, Services and
Energy Solutions business
SBO2: Focus on Sustainability with an
intent to attain carbon neutrality
SBO8: Set new benchmarks in
operational excellence and financial
returns for existing businesses
Ū Risk Management Committee
Ū Risk Management Policy
Ū Corporate Sustainability Policy
Ū Corporate Environment Policy
Ū Carbon emission management
Ū Operational efficiency
Ū Resource availability
Ū Waste management
Ū Biodiversity
Key performance indicators
Key risks addressed
Sustainable Development Goals
Ū GHG emissions
(Scope 1, 2 and 3) and mitigation
Ū Auxiliary power consumption
Ū Station Heat rate
Ū Water consumption and recycling
Ū Waste generated & disposed
Ū Habitats protected/restored
Ū Regulatory risk
Ū Climate change and business
continuity linked risks
Interaction of natural capital with
other capitals
HUMAN
MANUFACTURED
FINANCIAL
SOCIAL &
RELATIONSHIP
INTELLECTUAL
Capital
tradeoffs
Interventions
across eco-
friendly initiatives
instils a sense of
environmental
stewardship across
our workforce
Our drive towards
carbon neutrality
and circular economy
creates a suitable
environment for
the proliferation
of renewables and
energy-efficient
products
Operational efficiency
measures not only
reduces GHG emission,
it also reduces
costs and impacts
profitability
Responsibly
managing waste and
water pollutants as
well as reducing our
emissions creates a
healthy environment
for the communities
in which we operate
Unique challenges
in attaining
sustainability targets
spurs innovative and
integrated thinking
across the Company
Impact
across the
capitals
49
employees of
CGPL participated
in garden plant
nursery initiative
and sapling
distribution
0.687 tCO2e/
MWh
of carbon intensity
achieved
₹1.77 crore
Income from
CER trading from
designated projects
in FY 21
6,750
customers own
rooftop solar plants
with 174 mWp
capacity
100%
Fly ash utilized in
Jojobera due to
innovative solutions
such as reduction
in drying time and
increase in depth of
Ash pond.
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Progressively reducing our
environmental impact
We are committed to amplify our climate action and create a
postive impact for the community and environment in which
we operate. Leading by example, Tata Power became India’s
first power utility to publicly pledge to ‘Carbon neutrality’ before
2050. We aim to leverage our unparalleled synergies across the
Renewables Energy (RE) value chain to deliver scalable growth in
the renewables space and realise our climate ambitions.
We continue to consciously align our efforts with the UN SDGs
and the goals of the Paris Agreement, and have committed to
setting scientific emission reduction targets through Science
Based Targets initiative (SBTi). The targets will be aligned to
keeping global temperature rise well below 2°C, compared to
pre-industrial levels. The SBTi aligned targets will also provide the
pathway to develop integrated solutions for becoming carbon
neutral. To fulfil these commitments, Tata Power plans to conduct
a thorough scenario analysis to identify interventions areas. Our
overarching strategy and goals for decarbonisation, circular
economy and thought leadership can be read on page 22.
Our approach to managing GHG emissions:
BUSINESS
Ū Phasing out coal-based power plants and ramping up
renewables and other forms of clean energy
Ū Improving operational efficiencies
Ū Providing clean energy to customers through RE 100
commitments*
Ū Exploring viable technologies
Ū Storage technology (hydrogen)
Ū Carbon capture / mitigation
Ū Undertaking afforestation
Ū Implementing zero waste to landfill
(biodegradable waste)
Ū Promotion of E-billing-1.5 lakh customer opted for
e-billing in Mumbai distribution which saved around
2,630 trees.
EMPLOYEES
Ū Reducing travel by utilising digital forums
Ū Tracking travel emissions through a mobile application
to identify reduction opportunities
Ū Promoting paperless office
Ū Implementing energy-saving initiatives
Ū Volunteering in afforestation programmes
Ū Championing ‘Greenolution’ with 1000+ Green Heroes
* RE100 is the global initiative bringing together hundreds of large and
ambitious businesses committed to 100% renewable electricity.
GHG emission scope
Million tCO2e*
Scope 1
Scope 2
Scope 3
Total
*GHG emission includes T&D losses
34.500
0.031
0.003
34.534
CO2 intensity (tCO2e/MWh)
PM emissions (in MT)
FY21 Total 6,696
0.712
0.695
0.687
5
4
5
3
,
0
0
5
3
,
0
5
1
3
,
4
1
5
1
,
4
0
5
1
,
8
4
1
1
,
0
8
7
5
8
5
0
1
4
0
8
6
1
,
7
4
7
1
,
2
3
6
1
,
CGPL
FY19
Maithon
Trombay
Jojobera
FY20
FY21
NOx emissions (in MT)
9
3
7
3
4
,
8
5
7
1
4
,
0
8
7
7
3
,
FY21 Total 93,461
9
5
4
4
2
,
7
0
5
3
2
,
4
9
6
9
1
,
1
1
7
2
2
,
0
0
6
1
2
,
9
4
3
0
1
,
1
1
6
3
,
5
2
2
4
,
3
6
6
3
,
CGPL
FY19
Maithon
Trombay
Jojobera
FY20
FY21
SOx emissions (in MT)
FY21 Total 1,49,441
,
0
0
0
0
2
1
,
,
7
6
8
1
1
1
,
8
9
0
6
9
,
2
8
6
4
2
,
2
5
8
7
2
,
8
2
8
7
2
,
1
5
2
2
2
,
7
9
8
1
2
,
2
3
1
1
2
,
4
9
9
4
,
8
8
1
5
,
3
8
3
4
,
Maithon
Trombay
Jojobera
FY20
FY21
CGPL
FY19
FY19
FY20
FY21
In line with our sustainability commitments, we have steadily
expanded our renewable energy portfolio over the years. This
along with our operational efficiency measures has led to the
decrease in our carbon emissions per unit of energy we produce,
enabling us to serve our customers with cleaner energy every
year.
Addressing air pollution
In addition to GHG, we are conscious about other air pollutants
released from our operations. Further to compliance with
regulatory norms, we have implemented measures to reduce
emissions at source and ensure a healthy environment for our
communities in which we operate. Acting on the precautionary
principles, Tata Power curtailed SOx emissions from both units
of Trombay thermal power plant by installing sea water-based
Flue Gas Desulphurisation (FGD) units. This was undertaken
much before the recent regulatory notification on control of SOx
emissions was released. To address the issue of NOx emissions,
‘Low Burners’ and ‘Over Fire Air Dampers’ have been made an
integral part of the installed boilers.
Air emissions trends from our four major thermal power plants
(CGPL, Maithon, Trombay and Jojobera) are provided below:
Initiatives to reduce air pollution
Ū Electrostatic precipitators made an integral part of
boilers
Ū FGD installation planned at all coal plants by 2024 to
reduce SOx emissions
Ū Reduced carbon monoxide generation through close
monitoring of air fuel mix
Ū NOx emissions controlled through
Ū Combustion optimisation over fire damper
Ū Proper burner tilt operation
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Delivering power efficiently
In the business of generating and delivering energy to our consumers, we also consume a part of this energy for our own operations
to ensure that we deliver without interruptions. We drive efficiencies in our processes to conserve maximum energy and provide
more output to our customers.
Auxiliary Power Consumption (APC)
Initiatives taken to reduce APC
Ū Stoppage of Cooling Tower fans during winter season and low load operation
Ū Stoppage of high-tension equipment during low load operation
Ū Optimisation of excess O2 in boilers
Ū Conventional lamps replaced by LED lights in section of operational area of boiler and thermal generation
Ū Reducing operating pressure in feed water system
Aux energy consumption (% of total energy consumed)
8
7
.
7
7
.
7
7
.
9
5
.
1
6
.
6
5
.
2
5
.
4
5
.
3
5
.
9
6
.
7
6
.
4
6
.
7
9
.
9
9
.
8
9
.
.
3
0
1
.
0
0
1
9
9
.
Total 11.78 million GJ
2
9
.
2
9
.
9
8
.
3
8
.
9
7
.
6
7
.
8
1
.
7
1
.
7
1
.
CGPL
Maithon
Trombay
Jojobera
IEL PH6
IEL-Unit5
Jamshedpur
IEL
Kalinganagar
Haldia
Hydro
(Consolidated)
FY19
FY20
FY21
Station Heat Rate (SHR)
Further to our efforts to reduce auxiliary power requirements at
the power station, we also focus on improving the conversion
efficiency of our power generation systems. Reducing the
heat rate not only results in lower coal consumption without
compromising on customer energy requirements, but also
reduces GHG emissions. Our SHR has remained consistent
despite aging of plant.
Station Heat Rate (GJ/kWh)
CGPL
Maithon
Trombay
Jojobera
IEL-Unit5 Jamshedpur
0.009
0.009
0.009
0.010
0.010
0.010
0.010
0.010
0.010
0.011
0.011
0.011
0.011
0.011
0.011
FY21
FY20
FY19
Initiatives taken to reduce SHR
CGPL
Ū Laser-based combustion and
temperature optimisation
Ū Power consumption optimisation
of electrostatic precipitator and
compressed air system
Maithon
Ū Optimisation of set points regarding
coal flow, air flow, burner tilt position
and so on
Ū Optimisation in steam consumption
required for soot-blowing
Trombay
Ū Maintenance optimisation
under Reliability Centered
Maintenance (RCM) approach
and Asset Performance
Management (APM) analytics
Jojobera
Ū Optimisation of mill and Cooling
Water Pump (CWP) operation
Ū Boiler Feed Pump de-staging for
optimising APC
Ū Compressed air optimisation
through low-pressure and high-
volume independent conveying air
compressors
IEL Kalinganagar
Ū Modified the Coke Oven Gas (COG)
Haldia
Ū Replacement of existing
burner
cooling tower glass-reinforced
plastic blade fans with
high efficiency light weight
fiberglass-reinforced plastic
blades fans
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Generating power responsibly
Water stewardship
India is projected to experience severe shortage of water
availability especially in the urban areas. Impacts of climate
change has only exacerbated this risk further. Currently, a
majority of the country’s power requirements are met by thermal
power plants which consume a significant amount of water for
daily operations. To ensure a water secure future for our citizens,
we are making conscious efforts to reduce our dependence on
freshwater and maximise the potential recycle and reuse of our
process water in line with principles of circularity.
These efforts have led us to be water neutral in thermal
generation business and water positive in the T&D and RE
business, supporting our progress to be a benchmark in water
management within the Indian utility sector. Going beyond
our operations, we have developed rainwater harvesting
structures and are also scaling up our participatory groundwater
management programmes to increase groundwater recharge
and ensure water availability for our communities.
Fresh water (Total Dissolved Solids <1000 mg/l) consumption (all figures are in million litres):
Source of water withdrawal
Surface water
Ground water
Third-party water*
Total fresh water
Plant
Maithon
Trombay
IEL Kalinganagar
Bhira
Bhivpuri
Khopoli
Wind
Solar
Total
Solar
Total
Trombay
Jojobera
IEL PH6
IEL Kalinganagar
Haldia
Wind
T&D
Total
Plant
CGPL
Trombay
Total
Water withdrawn Water discharged Water consumed
15,156
4
392
Nil
Nil
Nil
Nil
73
15,625
194
194
787
9,119
2,446
2,902
2,281
3
80
17,618
33,437
15,156
4
392
7,72,800
2,34,040
2,16,887
Nil
73
12,39,352
194
194
878
9,119
2,446
2,902
2,281
3
80
17,709
12,57,255
Nil
Nil
Nil
7,72,800
2,34,040
2,16,887
Nil
Nil
12,23,727
Nil
Nil
91
Nil
Nil
Nil
Nil
Nil
Nil
91
12,23,818
Water withdrawn Water discharged Water consumed
1,85,202
57,305
2,42,507
2,42,507
46,93,967**
6,72,824
53,66,791
53,66,791
45,08,765
6,15,519
51,24,284
51,24,284
*Third party water data comprises of water purchased from municipal corporation, third-party treated effluent (e.g. Tata Steel provides clarified/treated water
at IEL Kalinganagar) and packaged drinking water
Other water (Total Dissolved Solids <1000 mg/l) consumption
Source of water withdrawal
Seawater*
Total other water
*Sea water is used for cooling only
**Water withdrawn from water stress area
Note: All figures are in million liters
Our major thermal power plants have Zero-Liquid Discharge
(ZLD) (except sea water used for cooling), wherein the waste
water is treated and reused. The quality of effluent discharge
is ensured as per regulatory requirements at all applicable
locations. Our hydro operations use minimal water for facility
inhabitants and Sewage Treatment Plants are installed for
recycling waste water for gardening. Almost all of the water
withdrawn for power generation is discharged into lower
reservoir maintaining acceptable quality. In FY21, there were no
incidents of non-compliance pertaining to the discharge limits
at any locations.
Specific water consumption (m3/MWh)
9
1
0
.
6
1
0
.
5
1
0
.
8
1
0
.
4
1
0
.
2
1
0
.
0
9
2
.
2
7
2
.
9
5
2
,
9
5
2
.
1
7
2
.
3
6
2
.
7
0
3
.
7
8
2
.
2
9
2
.
7
0
3
.
2
9
2
.
1
3
3
.
2
2
3
.
0
0
3
.
0
0
2
.
2
3
2
.
7
2
2
.
0
0
2
.
CGPL
Trombay
Maithon
Jojobera
IEL PH6
IEL-Unit5
IEL-
Haldia
Jamshedhpur
Kalinganagar
FY19
FY20
FY21
FY19
FY20
FY21
Note: Specific water consumption at CGPL and Trombay considers water used for steam generation only. Cooling requirements are excluded as both plants
utilise sea water for cooling.
Initiatives taken to reduce water consumption
CGPL
Ū Reduced Demineralized (DM) Water consumption through:
Ū Commissioning of condensate drain transfer system
Ū Optimisation of steam consumption by reducing pressure
Ū Strengthened system of daily checks with dashboard for
monitoring deviation in DM water consumption
Ū Achieved specific water consumption of 0.15 m3/MWh
against the target of 0.170 m3/MWh and saved over 10,000
m3 of DM water in FY21
Ū Reduced service water consumption through:
Ū Phase wise replacement of Mild Steel (MS) water pipeline
with Carbon Steel (CS) having internal coating for corrosion
resistance thereby reducing leakages
Ū Treated guard pond water used for dust suppression system
Hydro
Ū Loading hydro stations at their best efficiency to reduce water
consumption and generate more units led to savings of 15.27
million m3 of water which is equivalent to 19 MUs.
Ū Utilising 2,100 m3 of water during monsoon for ground water
recharge and gardening led to reduction in auxiliary consumption
thereby reducing the loss and cost to the Mumbai consumers.
Trombay
Several initiatives taken in combination to optimise raw water
consumption and reduce DM water requirements
Ū Rain water harvesting structure commissioned with expected
collection potential of 15,000 m3
Ū Cross-functional team set up to swiftly identify and address leaks
in water lines
Ū Diverted overflow water in the separator tank of vacuum pump
Ū Led to savings of 2,054 m3 of service water daily
towards gardening requirements
Maithon
Ū Reduced fresh water consumption by recovering water from
storm water drain and buffer pit
Jojobera
Unused recovery water from ash pond is filtered and used as make-
up water for unit basin thereby reducing freshwater requirement
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Judicious management of
raw materials
As we transition towards renewable energy, we are reducing our
dependence on conventional fuels and the risks associated with
their availability. This has a substantial benefit on our environment
in terms of decreasing the risks arising from the natural resource
extraction process. As we phase out our conventional generation
operations at the end of life, we anticipate decreasing trends
in consumption of these resources. Our superior monitoring
and improvement of operational efficiency measures also
reduce resource consumption significantly. Further, we plan
our operations and maintenance prudently to minimise forced
shutdowns, thereby reducing consumption of light diesel oil and
heavy furnace oil.
Power station
Coal (MT)
Light diesel oil (KL) Heavy furnace oil (KL)
Natural gas (MT)
CGPL
Maithon
Trombay
Jojobera
IEL PH 6
1,03,04,531
40,20,482
16,75,287
22,69,890
N/A
527
586
229
1,278
1,594
4,272
726
584
N/A
N/A
N/A
N/A
3,02,483
N/A
N/A
Coal consumption (in MT)
Light diesel oil (in KL)
Preparing for a circular
economy through waste
management
Tata Power takes pride in going beyond compliance and has
taken bold steps to improve waste management practices
across its operations. We aim to benchmark our waste
management practices in the industry, facilitate circular
economy and maximise fly ash utilisation in the Indian utility
sector thereby progressing towards zero waste to landfill.
We take a precautionary approach when we explore new
business opportunities. In line with regulations, all business
processes are assessed for probable waste generation before
the start of operations. To minimise waste generation and
optimise waste management, we evaluate various options
of resources, technologies and processes which are further
approved by statutory authorities.
During business operations, these processes are continuously
reviewed and improvement initiatives are suitably undertaken
and monitored for effectiveness.
Objectives
Benchmark waste & fly-ash
management
(100% utilization)
Zero waste to landfill
biodegradable waste by 2026
.
3
1
1
.
0
1
1
.
3
0
1
CGPL
FY19
3
4
.
9
3
.
0
4
.
3
2
.
.
3
72
1
.
5
2
.
5
2
.
3
2
.
5
7
5
4
2
6
7
2
5
8
4
1
1
,
8
7
6
6
8
5
0
7
4
2
1
9
2
2
8
3
2
3
,
8
7
2
1
,
6
8
8
4
4
6
1
,
3
8
4
1
,
4
9
5
1
,
Maithon
Trombay
Jojobera
CGPL
Maithon
Trombay
Jojobera
IEL PH6
FY20
FY21
FY19
FY20
FY21
Heavy furnace oil (in KL)
Natural gas (in ‘000 MT)
2
3
2
4
,
2
7
2
4
,
1
9
9
3
,
7
0
3
5
3
2
2
0
3
9
9
2
1
,
7
6
3
1
,
6
2
7
0
4
69
5
5
4
8
5
CGPL
Maithon
Trombay
Trombay
FY19
FY20
FY21
FY19
FY20
FY21
118
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Quantifying waste management:
Plant
CGPL
MPL
Trombay
Jojobera
IEL PH 6
IEL Kalinganagar
Haldia
Bhira
Bhivpuri
Khopoli
Wind
Total
Type of waste
Hazardous
Non-hazardous
Hazardous
Non-hazardous
Hazardous
Non-hazardous
Hazardous
Non-hazardous
Hazardous
Hazardous
Non-hazardous
Hazardus
Hazardous
Non-hazardous
Hazardous
Non-hazardous
Non-hazardous
Hazardous
Non-hazardous
Hazardous
Non-hazardous
Generated (MT)
28.3
7,59,555
20.7
16,15,834
30.3
42,398.2
14.3
8,41,452.1
14.5
184.7
495.5
0.6
16.0
119.0
4.3
179.0
114.3
0.1
0.3
313.8
32,60,147.4
Diverted from disposal (MT)
7.6
5,83,437.1
20.7
7,64,468
30.2
34,200.2
14.3
5,99,690
14.5
Nil
Nil
Nil
16.0
119.0
4.3
179.0
114.3
Nil
Nil
107.6
19,82,207.6
Diverted to disposal (MT)
20.7
53,563.9
Nil*
19,06,906
0.1
8,873
Nil*
4,49,515
Nil
184.7
495.5
0.6
Nil
Nil
Nil
Nil
Nil
0.1
0.3
206.2
24,19,353.7
Note 1: Waste diverted from or to disposal may include leftover stock from waste generated in FY20
Note 2: Hazardous waste includes e-waste, battery waste and biomedical waste for the purpose of reporting here
*Negligible amount of biomedical waste generated, which is disposed of through incineration at Common Biomedical Waste Treatment Facility
Waste diverted from disposal
Hazardous waste
Reuse
Recycling
Other recovery options
Total
Non-hazardous waste
Reuse
Recycling
Other recovery options
Total
Waste diverted to disposal
Hazardous waste
Incineration
Landfilling
Other disposal options
Total
Non-hazardous waste
Incineration
Landfilling
Other disposal options
Total
Onsite (MT)
Offsite (MT)
Total (MT)
Nil
4.3
Nil
4.3
8
Nil
Nil
8
Nil
58.5
44.8
103.3
Nil
62.8
44.8
107.6
Nil
19,82,180.6
19.0
19,82,199.6
8
19,82,180.6
19.0
19,82,207.6
Onsite (MT)
Offsite (MT)
Total (MT)
Nil
Nil
Nil
Nil
Nil
Nil
1,213
1,213
20.8
4.5
180.9
206.2
20.8
4.5
180.9
206.2
Nil
24,17,593
547.7
24,18,140.7
Nil
24,17,593
1760.7
24,19,353.7
Waste management initiatives and practices:
CGPL
Ū Waste generation points analysed for prioritisation and collection
Jojobera
Ū Reduced ash generation by using coal with low ash percentage
Ū Enhanced awareness on waste segregation and management
among employees and residents
Ū Food waste transported to Ashiyana Township for composting
Ū In association with M/s NEPRA, collection centre and Material
Recycle Facility (MRF) at plant as well as township were set up to
systematically manage waste and increase waste recycled
(utilising the Government’s Shakti Scheme)
Ū Reduced oil waste generation through RCM process and condition
monitoring, along with the use of additives and offline filtration to
maintain oil quality
Ū Waste oil undergoes the centrifuge separation and ultrafiltration
process to reduce contamination and enable oil to be recycled,
leading to ₹7,146 per barrel savings
Maithon
Ū Coal reject stone and ash gainfully utilised in road repair
Ū Metallic scrap value increased after segregation and separate
auctioning process as per metal types
Ū Ensured that biomedical waste is disposed in an environment-
friendly manner by implementing a barcode system for tracking
(through GPS) till the authorised disposal centre.
Trombay
Ū Fly ash utilised for manufacturing Ready Mix Concrete (RMC) and
bricks
Ū Bottom ash utilised for quarry filling (outside plant premises) and as
Haldia
Ū 90% of used oil recycled through different filter machines
(Centrifuge, Low Vacuum Dehydration & Degasification (LVDH) &
Electrostatic Liquid Cleaner (ELC))
Ū Minimised wooden packaging waste by encouraging suppliers to
use minimal metal structure which is reusable (added advantage
of reducing fire load)
a substrate for green lawns (within premises)
Ū Reusing damaged metal boiler tubes as structural handrail, safety
Ū Procuring biodegradable plastic and ensuring safe plastic waste
barricade, cycle/helmet stand, canopy and so on.
disposal through government approved vendor
Ū Empty chemical
jars
in unusable condition were cleaned
Ū Reducing waste oil generation by reconditioning used oil through
thoroughly and used as containers for plants and trash
filtration machine
Ū Reject cartridge filters from DM plant are reused to improve
IEL Kalinganagar
Ū Supported customer (Tata Steel) in complying with statutory
requirements by collaborating in waste management practices and
efficient handling of hazardous waste
aquarium water quality
Ū ₹6.5 lakh cost savings on procurement of fresh materials in
addition to waste minimisation, safety empowerment and
community satisfaction
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Case study
Ash management at Jojobera
Greenolution
Our teams drive our progress. We encourage them to contribute to developing future-ready solutions to today’s waste problems
thereby turning employees into ‘Green Heroes’. We support their ideas on waste recycle/reuse and inform them about the positive
impacts in terms of environmental and financial benefits.
Caring for our common habitat –
Enhancing biodiversity
We, at Tata Power, are deeply committed to conserving natural
habitats and strengthening biodiversity.
We firmly believe that our operations are in harmony with the
environment in which we operate. We ensure that we undertake
initiatives across our operations not only to minimize our
impact on the surrounding biodiversity but also enhance it.
Our aspirations have triggered a change in our approach from
conservation of species to entire ecosystems, providing a holistic
outcome to our efforts. We have a formal governance structure
and execution strategy in place which enables us to effectively
manage biodiversity across the organization.
Tata Power’s principles for biodiversity management
Ū Integrating biodiversity into our operations
Ū ‘Beyond the Fence’ projects – i.e. outside the area of impact
Ū Creating a culture of care for biodiversity
ENTERPRISE
- Providing governance
-
expertise
Issuing guidance
documents
- Partnering with experts
SITE‑SCALE
- Developing action plan
- Monitoring compliance
- Managing impacts
INDIVIDUAL LEVEL
- Promoting sensitisaton
through exposure
- Volunteering
Mahseer
Tata Power has completed 50 years of Mahseer conservation for
the blue-finned Mahseer (Tor Khudree), protecting and increasing
the numbers of these Tiger of the Waters. The consistent efforts
along with state fisheries department and communities has
brought this species back from the brink of extinction and
The International Union for Conservation of Nature (IUCN) has
acknowledged Tata Power’s efforts and upgraded the species
from Endangered to the ‘Least Concern’ category
Challenges:
Ū High ash content (30-45%) in Indian coal, leading to the
generation of fly ash of 4000MT/day (80% fly ash, 20% bottom
ash)
Policy advocacy to improve utilisation
Ū Discussions with NHAI to supply pond ash to use as sub-base for
road construction, as well as embankment filler
Ū Discussions with nearby industries to fill bare land and reduce
Ū Unfavourable conditions – difficult rail route, dense population,
costs
high cost of disposal
Partnerships to address the issues:
Ū Tie up with fly-ash consumers Nuvoco (nearby) and Shree
Cement (within 90 km)
Ū Negotiated with Shree Cement and Damia in West Bengal to
dispatch 30% of ash generated and maintain higher utilisation
pace
Ū Modernisation at Nuvoco led to increased demand, accounting
for 40-45% fly ash utilisation
Ū Discussions with real estate organisations for another avenue to
improve utilisation and reduce costs
Upcoming plans to reduce disposal costs:
Ū Reducing moisture content in pond ash
Ū Council of Scientific and Industrial Research (CSIR) Jamshedpur
research for brick manufacturing from pond ash
Ū Increase number of trips using one-time tare weighment facility
and installation of higher-sized weigh bridge
Ū Improving drying time and larger operation depth in ash ponds
by using smart cutting technology
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Highlights of our biodiversity initiatives:
Grassland ecosystem conservation (at solar sites)
Ū First of its kind of project focused around Grassland ecosystem conservation
Ū Outcome of the change in our approach from species conservation to ecosystem conservation
Ū Temperature and humidity levels are beneficially affected by grassland, thereby improving efficiency of solar panels
Ū Seasonal biodiversity is assessed for harmonious integration of plantation initiatives
Ū The International Union for Conservation of Natura (IUCN) critically endangered species are being identified for planning
conservation efforts
Ū Facilitates in water conservation, soil erosion and carbon storage in soil
Ū This approach will be replicated across additional solar installations
Tree Mittra: A large-scale afforestation drive
Ū More than 3.5 million trees planted till date (mitigating approx. 70,000 tCO2e/annum)
Ū Over 1 million trees planted a year.
Ū An area of 6,000 hectares was aerially dispersed with over 100 tons of seeds of different tree species before onset of
monsoon.
Ū Indigenous species selected to preserve ecosystem and improve survival rate
Ū Fruit bearing trees being included to increase benefit to community
Ū Wild orchid propagation and medicinal plant cultivation undertaken
Ū Involving diverse stakeholders: Customers, communities (Club Enerji), Employees (Greenolution), MoEFCC (species
selection) etc.
Ū E-Platform under development to enable pledging for tree plantation during pandemic induced lockdown
Western Ghats biodiversity hotspot conservation
As the Hydro operations are in the proximity of pristine areas of high biodiversity value, Tata Power has set the following
objectives to be observed by such sites:
Ū Protecting the existing flora and fauna
Ū Increasing green cover
Ū Preventing soil erosion and reducing siltation
Highlights of our conservation efforts include:
Ū Over 50 years of Mahseer conservation efforts (more than 12.6 million fish seeds produced till date)
Ū 300 fishery scientists trained
Ū 5 endemic and endangered orchid species selected for profileration
Ū 5 national workshops held for Knowledge Exchange
Ū Published books on "Birds of Lonavla and Khandala", "Wild orchids of the Northern Western Ghats", "Reptiles of Northern
Western Ghats" and a monograph on “The Mighty Mahseer”
Transmission corridors
For operational transmission lines, trees are trimmed to maintain safe distance. Area adjacent to the corridor remains
untouched, except for occasional maintenance requirement. This helps conserve and sustain habitat in and around the
transmission lines. To support the conservation efforts, seeds and saplings are planted in the green belt areas.
Case study
Going beyond compliance at CGPL
Ū Coastal Gujarat Power Limited (CGPL) had a regulatory
mandate of maintaining 33% green cover (as per
Environmental Clearance obtained). As CGPL procured
1,242 hectares of land in total, 409.86 hectares of greenbelt
was to be developed. However, CGPL developed additional
11.53 hectares to promote environmental conservation in
its operations, aligning with SDG 13 and SDG 15.
Ū This was not a one-off initiative – dedicated protocol
was set to obtain reliable ground-based Measurement,
Reporting and Verification (MRV). 133 unique species
were observed in the greenbelt. Since inception, CGPL has
planted 62 different plant species belonging to 12 different
groups (e.g. climber, grass, herbs, shrub, tree etc.)
Ū Results were confirmed using GIS (Geographic Information
System) based mapping study, which also identified new
plantation areas for further coverage. This study further
recommended additional species to be considered for
plantation based on agro-climatic zone and ecological
characteristics of the region.
Ū Manmade ponds were developed in the green belt
using recycled water. These ponds are intended to serve
as potential eco-restoration zones and provide suitable
habitat for diverse local and migratory species.
Additional initiative undertaken along with employees –
Garden plant nursery ‘NIDHIVAN’
Ū 165 m2 nursery developed for nurturing plants and
distributing saplings
Ū Reused discarded items (e.g. paper cups, trays, empty
drums etc.) used as sapling containers. Scrap material
used to build nursery shed
Ū Local seeds used for growing saplings
Ū 300 nos of saplings (Mango and Papaya) distributed
Ū 49 employees participated
124
The Tata Power Company Limited Integrated Annual Report 2020-21
#Futureready: Empowering customers for tomorrow’s world 125
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements GRI Content Index
Disclosure Title
GRI Standard
General Disclosures
Organizational Profile
Report Reference
Page Number
GRI 102-1: Name of the organization
GRI 102-2: Activities, brands, products, and services
GRI 102-3: Location of headquarters
GRI 102-4: Location of operations
GRI 102-5: Ownership and legal form
GRI 102-6: Markets served
GRI 102-7: Scale of the organization
About this report
Business at a glance
Back cover
National Reach
About this report
Corporate governance
Business at a glance
Business at a glance
GRI 102-8: Information on employees and other workers
GRI 102-9: Supply Chain
Leading the way for value creation - Human
Capital
Responsible supply chain management - Social &
Relationship Capital
GRI 102-10: Significant changes to the organization and its
supply chain
Responsible supply chain management - Social &
Relationship Capital
GRI 102-11: Precautionary principle or approach
Risk Management
GRI 102-12: External initiatives
GRI 102-13: Membership of associations
Sustainable Development Goals
Annexure 1 - List of memberships
GRI 102: General
Disclosures 2016
GRI 102-14: Statement from senior decision-maker
GRI 102-15: Key impacts, risks, and opportunities
GRI 102-16: Values, principles, standards, and norms of
behaviour
GRI 102-17: Mechanisms for advice and concerns about
ethics
GRI 102-18: Governance structure
GRI 102-19: Delegating authority
GRI 102-21: Consulting stakeholders on economic,
environmental, and social topics
GRI 102-30: Effectiveness of risk management processes
GRI 102-31: Review of economic, environmental, and
social topics
GRI 102-32: Highest governance body’s role in
sustainability reporting
GRI 102-33: Communicating critical concerns
GRI 102-40: List of stakeholder groups
GRI 102-41: Collective bargaining agreements
GRI 102-42: Identifying and selecting stakeholders
GRI 102-43: Approach to stakeholder engagement
GRI 102-44: Key topics and concerns raised
GRI 102-45: Entities included in the consolidated financial
statements
GRI 102-46: Defining report content and topic Boundaries
GRI 102-47: List of material topics
GRI 102-48: Restatements of information
GRI 102-49: Changes in reporting
GRI 102-50: Reporting period
GRI 102-51: Date of most recent report
GRI 102-52: Reporting cycle
126
CEO & MD's message
Risk Management
Business at a glance
Corporate governance
Corporate governance
Report on Corporate Governance
Corporate governance
Report on Corporate Governance
Corporate governance
Stakeholder engagement
Risk Management
Risk Management
About this report
Report on Corporate Governance
Stakeholder engagement
Human Rights - Human Capital
Stakeholder engagement
Stakeholder engagement
Stakeholder engagement
Annexure 2 - List of Subsidaries
About this report
Materiality assessment
About this report
Materiality assessment
About this report
About this report
About this report
2
10 & 11
Back cover
12
2 & 16
10 & 11
10 & 11
74
94
94
24
42 & 43
132
6 & 7
26 & 27
10, 11, 16
& 17
16, 17 & 208
16, 192-196
16
44
24-26
24-26
2
208
44 & 45
80
44
44
44 & 45
132
2
47
2
47
2
2
2
The Tata Power Company Limited Integrated Annual Report 2020-21 GRI Standard
Disclosure Title
Report Reference
Page Number
GRI 102-53: Contact point for questions regarding the
report
GRI 102-54: Claims of reporting in accordance with the GRI
Standards
GRI 102-55: GRI content index
GRI 102-56: External assurance
About this report
About this report
GRI Content Index
About this report
2
2
126-131
2, 465 & 466
Topic Specific Disclosures
Manufactured Capital
Increase in renewables portfolio
GRI EU 1
Installed capacity, broken down by primary energy source
and by regulatory regime
Powering a Sustainable Economy – Our
Generation Capacity - Manufactured Capital
Operational Efficiency
GRI EU 2
GRI EU 12
Net energy output broken down by primary energy
source and by regulatory regime (Cost plus, Bid and PPA)
Powering a Sustainable Economy – Our
Generation Capacity - Manufactured Capital
Transmission and distribution losses as a percentage of
total energy
Illuminating lives – Transmission & Distribution -
Manufactured Capital
Intellectual Capital
GRI 103:
Management
Approach 2016
GRI 103-1: Explanation of the material topic and its
boundary
GRI 103-2: The management approach and its
components
GRI 103-3: Evaluation of the management approach
Innovation in process, service & solutions
GRI EU 8
Human Capital
GRI 103:
Management
Approach 2016
"Research and development activity and expenditure
aimed at providing reliable electricity and promoting
sustainable development
"
GRI 103-1: Explanation of the material topic and its
boundary
GRI 103-2: The management approach and its
components
GRI 103-3: Evaluation of the management approach
Employee well-being
Innovation to reinvent energy for tomorrow -
Intellectual Capital
Innovation to reinvent energy for tomorrow -
Intellectual Capital
Fostering a differentiated employee value
proposition - Human Capital
52-54
52-54
64
67-71
66-71
67-71
69-71
73-85
72-85
73-85
GRI 401-1: New employee hires and employee turnover
Talent management strategy - Human Capital
78
GRI 401:
Employment 2016
GRI 401-2: Benefits provided to full-time employees that
are not provided to temporary or part-time employees
Employee engagement and well-being - Human
Capital
75 & 76
GRI 402: Labour
management
relations 2016
GRI 405: Diversity
and equal
opportunity 2016
Human Rights
GRI 401-3: Parental leave
A canvas of diversity - Human Capital
GRI 402-1: Minimum notice periods regarding operational
changes
Talent management strategy - Human Capital
GRI 405-1: Diversity of governance bodies and employees
GRI 405-2: Ratio of basic salary and remuneration of
women to men
Corporate governance
Leading the way for value creation - Human
Capital
A canvas of diversity - Human Capital
GRI 410: Security
Practices 2016
GRI 410-1: Security personnel trained in human rights
policies or procedures
Human Rights - Human Capital
81
78
16 & 74
81
80
127
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world Report Reference
Page Number
GRI Content Index
GRI Standard
Disclosure Title
Training, Education and Development
GRI 404: Training
and Development
2016
GRI EU 14
GRI 404-1: Average hours of training per year per
employee
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
Programs and processes to ensure the availability of a
skilled workforce
Occupational Health & Safety
GRI 403:
Occupational
Health & Safety
2018
GRI 403-1: Occupational health and safety management
system
GRI 403-2: Hazard identification, risk assessment, and
incident investigation
GRI 403-3: Occupational health services
GRI 403-4: Worker participation, consultation, and
communication on occupational health and safety
GRI 403-5: Worker training on occupational health and
safety
GRI 403-6: Promotion of worker health
GRI 403-7: Prevention and mitigation of occupational
health and safety impacts directly linked by business
relationships
GRI 403-8: Workers covered by an occupational health and
safety management system
GRI 403-9: Work-related injuries
GRI 403-10: Work-related ill health
Learning and development - Human Capital
Talent management strategy - Human Capital
Building a safe work environment - Human
Capital
Our safety performance - Human Capital
GRI EU 18
Percentage of contractor and subcontractor employees
that have undergone relevant health and safety training
Building a safe work environment - Human
Capital
Social & Relationship Capital
GRI 103:
Management
Approach 2016
Local sourcing
GRI 204:
Procurement
Practices 2016
GRI 308: Supplier
Environmental
Assessment 2016
GRI 414: Supplier
social assessment
2016
GRI 103-1: Explanation of the material topic and its
boundary
GRI 103-2: The management approach and its
components
GRI 103-3: Evaluation of the management approach
GRI 204-1: Proportion of spending on local suppliers
GRI 308-1: New suppliers that were screened using
environmental criteria
GRI 308-2: Negative environmental impacts in the supply
chain and actions taken
GRI 414-1: New suppliers that were screened using social
criteria
GRI 414-2: Negative social impacts in the supply chain and
actions taken
Collective growth through shared value - Social &
Relationship Capital
Responsible supply chain management - Social &
Relationship Capital
128
80
79
78
77-80
82
82
83
82-84
84
84
84
82-84
85
85
84
87-103
86-103
87-103
94
94
94
94
94
The Tata Power Company Limited Integrated Annual Report 2020-21 GRI Standard
Disclosure Title
Customer relationship
GRI 416: Customer
Health and Safety
2016
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
Report Reference
Page Number
91
91
GRI 417-1: Requirements for product and service
information and labelling
Empowering customers for future-ready utility -
Social & Relationship Capital
89, 90, 92
& 93
GRI 417: Marketing
and Labelling 2016
GRI 417-2: Incidents of non-compliance concerning
product and service information and labelling
GRI 417-3: Incidents of non-compliance concerning
marketing communications
Cybersecurity
GRI 418: Customer
Privacy 2016
GRI 418-1: Substantiated complaints concerning breaches
of customer privacy and losses of customer data
Empowering customers for future-ready utility -
Social & Relationship Capital
Demand-side management
GRI G4 DMA (EU)
Natural Capital
GRI 103:
Management
Approach 2016
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
Empowering customers for future-ready utility -
Social & Relationship Capital
GRI 103-1: Explanation of the material topic and its
boundary
GRI 103-2: The management approach and its
components
GRI 103-3: Evaluation of the management approach
Catering to our customers’ needs in harmony
with nature - Natural Capital
Resource availability
GRI 301: Materials
2016
GRI 301-1: Materials used by weight or volume
Judicious management of raw materials - Natural
Capital
Carbon emission management
GRI 302: Energy
2016
GRI 305: Emissions
2016
Water
GRI 303: Water and
Effluents 2018
GRI 302-1: Energy consumption within the organization
GRI 302-3: Energy intensity
Delivering power efficiently - Natural Capital
GRI 302-4: Reduction of energy consumption
GRI 305-1: Direct (Scope 1) GHG emissions
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
GRI 303-1: Interactions with water as a shared resource
GRI 303-2: Management of water discharge-related
impacts
GRI 303-3: Water withdrawal
GRI 303-4: Water discharge
GRI 303-5: Water consumption
Progressively reducing our environmental impact
- Natural Capital
Generating power responsibly - Natural Capital
88
88
88
92
111-125
110-125
111-125
118
114
115
115
112
112
112
113
112
113
116 & 117
116 & 117
116
116
116
129
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world GRI Content Index
GRI Standard
Disclosure Title
Waste Management
Report Reference
Page Number
GRI 306: Effluents
and Waste 2016
Biodiversity
GRI 304:
Biodiversity 2016
GRI 306-1: Waste generation and significant waste-related
impacts
GRI 306-2: Management of significant waste-related
impacts
GRI 306-3: Waste generated
GRI 306-4: Waste diverted from disposal
GRI 306-5: Waste directed to disposal
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
Financial Capital and MDA
GRI 103:
Management
Approach 2016
GRI 103-1: Explanation of the material topic and its
boundary
GRI 103-2: The management approach and its
components
GRI 103-3: Evaluation of the management approach
Preparing for circular economy through waste
management - Natural Capital
Caring for our common habitat – Enhancing
biodiversity - Natural Capital
Management Discussion & Analysis
GRI 201: Economic
Performance 2016
GRI 201-1: Direct economic value generated and
distributed
Economic value creation at Tata Power - Financial
Capital
Future ready
Non-GRI
Frequency of strategy review and planning
Our Strategy
119-122
119-122
120
120
120
124 & 125
123-125
123 & 124
161-166
166-167
167-176
108
20 & 21
Sustainable investing
Non-GRI
Reallocation of capital by divestment of coal business to
transition to more sustainable fuels
Impact on business due to change in Coal tax or coal pricing
Our Strategy
Saluting our stalwarts - Future of conventional
energy generation - Manufactured Capital
20, 21 & 62
Non-GRI
Investments in renewable energy to reduce impact from
changes in coal tax
Creating a Greener India – Our Renewables Story
- Manufactured Capital
56
Corporate Governance
Report on Corporate Governance
185 & 210
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
Corporate governance
Corporate governance
GRI 406-1: Incidents of discrimination and corrective
actions taken
Corporate governance
Human Rights - Human Capital
GRI 407-1: Operations and suppliers in which the right to
freedom of association and collective bargaining may be
at risk
Corporate governance
Human Rights - Human Capital
GRI 408-1: Operations and suppliers at significant risk for
incidents of child labour
Corporate governance
Human Rights - Human Capital
GRI 409-1: Operations and suppliers at significant risk for
incidents of forced or compulsory labour
Corporate governance
Human Rights - Human Capital
17
17
17 & 80
17 & 80
17 & 80
17 & 80
GRI 205: Anti-
Corruption 2016
GRI 206: Anti-
competitive
Behaviour 2016
GRI 406: Non
Discrimination 2016
GRI 407: Freedom
of Association
and Collective
Bargaining 2016
GRI 408: Child
Labour 2016
GRI 409: Forced and
Compulsory labour
2016
130
The Tata Power Company Limited Integrated Annual Report 2020-21 GRI Standard
Disclosure Title
Report Reference
Page Number
GRI 411: Rights of
Indigenous Peoples
2016
ESG compliance
GRI 307:
Environmental
Compliance 2016
GRI 419:
Socioeconomic
Compliance 2016
GRI 411-1: Incidents of violations involving rights of
indigenous peoples
Human Rights - Human Capital
307-1: Non-compliance with environmental laws and
regulations
419-1: Non-compliance with laws and regulations in the
social and economic area
Corporate governance
Corporate governance
80
17
17
131
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world Integrated Report Annexures
Annexure 1 – List of Memberships
The Tata Power Company Limited – Memberships
Association of Power Producers
Bombay Chamber of Commerce & Industry
Confederation of Indian Industry
Electrical Research and Development
Association
Central Power Research Institute
IMC Chambers of Commerce and Industry
India Energy Exchange
Indian Wind Power Associations
National Safety Council
Annexure 2 – List of Subsidiaries
The Tata Power Company Limited – Domestic subsidiaries
Af-Taab Investment Company Limited
Chirasthayee Saurya Limited
Clean Sustainable Solar Energy Private Limited
Coastal Gujarat Power Limited
Dreisatz Mysolar24 Private Limited
Dugar Hydro Power Limited#
Industrial Energy Limited#
NDPL Infra Limited
Nivade Windfarm Limited
Powerlinks Transmission Limited#
Tata Power Delhi Distribution Limited
Maithon Power Limited
NELCO Limited
MI Mysolar24 Private Limited
Nelco Network Products Limited
Northwest Energy Private Limited
Poolavadi Windfarm Limited
Solarsys Renewable Energy Private Limited
Supa Windfarm Limited
Tata Power Green Energy Limited
Tata Power Jamshedpur Distribution Limited
Tata Power Renewable Energy Limited
Tata Power Solar Systems Limited
Tata Power Trading Company Limited
Tatanet Services Limited
TCL Ceramics Limited
(formerly known as Tata Ceramics Limited)
TP Ajmer Distribution Limited
TP Akkalkot Renewable Limited
TP Central Odisha Distribution Limited
TP Kirnali Limited
TP Kirnali Solar Limited
TP Renewable Microgrid Limited (formerly
known as Industrial Power Utility Limited)
TP Roofurja Renewable Limited
TP Saurya Limited
TP Solapur Limited
TP Solapur Solar Limited
TP Southern Odisha Distribution Limited
TP Western Odisha Distribution Limited
Vagarai Windfarm Limited
Walwhan Solar AP Limited
Walwhan Solar KA Limited
Walwhan Solar PB Limited
Walwhan Solar TN Limited
Walwhan Energy RJ Limited
Walwhan Solar BH Limited
Walwhan Solar MH Limited
Walwhan Solar Raj Limited
Walwhan Urja Anjar Limited
Walwhan Wind RJ Limited
The Tata Power Company Limited – Foreign Subsidiaries
Bhira Investments Pte Limited (formerly
known as Bhira Investments Limited)
Khopoli Investments Limited
Bhivpuri Investments Limited
PT Sumber Energi Andalan Tbk
Trust Energy Resources Pte. Limited
The Tata Power Company Limited – Joint Ventures
Adjaristsqali Georgia LLC
Adjaristsqali Netherlands B.V.
TP Wind Power Limited (formerly Indo Rama
Renewables Jath Limited)
Walwhan Renewable Energy Limited
Walwhan Solar Energy GJ Limited
Walwhan Solar MP Limited
Walwhan Solar RJ Limited
Walwhan Urja India Limited
Far Eastern Natural Resources LLC
Tata Power International Pte. Limited
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 Private Limited
Mandakini Coal Company Limited
Prayagraj Power Generation Company Limited PT Antang Gunung Meratus
PT Arutmin Indonesia
PT Citra Prima Buana
PT Baramulti Suksessarana 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 Nusa Tambang Pratama
Resurgent Power Ventures Pte. Limited
The Tata Power Company Limited – Associates
Brihat Trading Private Limited
Solace Land Holding Limited
The Associated Building Company Limited
# Classified as Joint Ventures as per Indian Accounting Standards (Ind AS)
Yashmun Engineers Limited
132
PT Mitratama Perkasa
Renascent Power Ventures Private Limited
Tubed Coal Mines Limited
Dagachhu Hydro Power Corporation Limited Tata Projects Limited
The Tata Power Company Limited Integrated Annual Report 2020-21 Board’s Report
To the Members,
The Directors are pleased to present to you the second Integrated Report (prepared as per the International Integrated
Reporting Council (IIRC) framework and in accordance with Global Reporting Initiatives (GRI) standards: Core options) and
One Hundred and Second Annual Report on the business and operations of your Company along with the audited Financial
Statements of Account for the financial year ended 31st March 2021.
1. Financial Results
Sl.
No.
Particulars
Less: Operating Expenditure
Less: Depreciation & Amortisation
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
(a) Net Sales / Income from Other Operations*
(b)
(c) Operating Profit
(d) Add/(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 /(Credit)
(o) Net Profit after Tax from Continuing Operations
(p)
(q) Add/(Less): Tax Expenses /(Credit) from Discontinued Operations
(r) Net Profit/(Loss) after Tax from Discontinued Operations
(s) Net Profit for the year
(t) Net Profit for the year attributable to -
Profit/ (Loss) before Tax from Discontinued Operations
- 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)
Standalone
FY21
6,480
4,387
2,093
24
1,249
1,519
1,847
669
1,178
NIL
1,178
(109)
1,069
(101)
968
(220)
174
(46)
922
922
NIL
185
1,107
1,107
NIL
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
Figures in ` crore
Consolidated
FY21
33,079
25,474
7,605
(66)
439
4,010
3,968
2,745
1,223
873
2096
(109)
1,987
(502)
1,485
(220)
174
(46)
1,439
1,127
311
(380)
1,059
747
312
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
1,017
299
836
2,153
1,856
297
2. Financial Performance and the State of
the Company’s Affairs
2.1. Consolidated
The Operating Revenue was at ` 33,079 crore in FY21
compared to ` 28,948 crore in FY20 on a consolidated basis.
This is mainly due to acquisition of three Odisha Distribution
Companies (Discoms) and execution of major solar
Engineering, Procurement and Construction (EPC) projects
during the year. Operating Profit was at ` 7,605 crore which
is marginally lower by 3% compared to previous year
mainly due to favourable tariff order in Maithon Power
Limited (MPL) in previous year, lower PLF from wind farms
offset by lower losses in Coastal Gujarat Power Limited
(CGPL) on account of lower coal prices and higher profit
from Prayagraj acquisition. Finance costs decreased from
` 4,494 crore to ` 4,010 crore mainly due to repayment of
loans from sale of non-core assets, issue of preferential
capital and lower rate of interest. The profits from
Joint Ventures (JV) and Associates were lower mainly due
to lower profits from Indonesian coal mines due to lower
coal prices.
The Consolidated Profit after tax in FY21 was at ` 1,439
crore compared to ` 1,316 crore in FY20 mainly due to
lower losses in CGPL on account of lower coal prices, higher
profit from Prayagraj acquisition and lower finance cost.
133
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur value-creation paradigm#Futureready: Empowering customers for tomorrow’s world
2.2. Standalone
The Operating Revenue stood at ` 6,480 crore
in
FY21 compared to ` 7,075 crore in FY20 on a standalone
basis. The decrease was mainly due to lower generation
and sales on account of lower demand from procurers
and customers due to COVID-19 pandemic. The profit
in FY21 was ` 922 crore as compared to ` 148 crore in
FY20. The increase in the profit was mainly due to higher
dividend from foreign subsidiary and lower impairment
loss in Strategic Engineering Division (SED) compared to
the previous year.
Refer to Management Discussion and Analysis (MD&A)
(Pages 161-183) for more details.
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 your 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
link:
https://www.tatapower.com/pdf/investor-relations/
analyst-presentation-may-21.pdf.
following
2.4. Integrated Report
3.
Continuing with your commitment towards a sustainable
future and focus towards governance-based reporting,
your Company has progressed to second Integrated Report
highlighting the Company’s efforts to empower all
categories of customers and stakeholders with future-
ready, smart, energy solutions.
Improvement in Leverage Ratios and
Cash from Operations
Your Company’s Net Debt/Underlying EBIDTA ratio has
shown improvement from 4.7 to 4.1 from FY20 to FY21 on a
consolidated level reinforcing the Company’s commitment
to deleverage its balance sheet. Consequently, Net Debt/
Equity on a consolidated level has improved from 2.0 to
1.4 from FY20 to FY21. Your Company’s efficient working
capital management has resulted in an increase of 15% in
cash from operations over FY20 (FY21-` 8,458 crore vis-à-
vis FY20-` 7,375 crore). A brief discussion on the highlights
of financial performance of your Company and financial &
return ratios is presented in the financial capital section of
Integrated Report (Pages 104-109).
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
is annexed
to this Report.
(Listing Regulations),
134
5. Dividend
The Directors of your Company recommend a dividend
of ` 1.55 per share of ` 1 each subject to the approval
of the Members.
Pursuant to the Finance Act, 2020, dividend income is
taxable in the hands of the shareholders w.e.f. 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.
The Register of Members and Share Transfer Books of the
Company will remain closed from Saturday, 19th June 2021
to Monday, 5th July 2021 (both days inclusive) for the
purpose of payment of dividend for the financial year
ended 31st March 2021.
According to Regulation 43A of the Listing Regulations,
the top 1000 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 on the website of the listed entity and
a web-link shall also be provided in their annual reports.
Accordingly, the Dividend Policy of the Company can be
accessed using the following link: https://www.tatapower.
com/pdf/aboutus/dividend-policy.pdf.
6. Current Business
Your Company is present 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 EPC services,
Consumer-facing businesses such as solar rooftop, solar
pumps, EV charging, home automation and microgrid.
Leading position in many of these segments places
your Company as one of
integrated
power companies.
largest
India’s
As on 31st March 2021, your Company had an installed
capacity of 12,808 MW out of which 3,948 MW is from
“Clean and Green sources” (Hydro, waste heat recovery,
wind and solar) which constitutes about 31% of the
total portfolio.
Moving 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, your Company has decided to focus on renewable
generation, consumer-facing businesses 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. Your Company has
acquired four (4) Discoms in Odisha through competitive
bidding which will cater to around 9 million consumers
and pursuing similar growth opportunity in distribution.
Your Company has installed around 161 microgrid projects
as on 31st March 2021 with another 40 projects in the
The Tata Power Company Limited Integrated Annual Report 2020-21Board's Report
pipeline in line with its commitment to provide the rural
population with affordable, clean and reliable power.
concerned shareholders, creditors of the parties or the
public at large.
Furthermore, your Company has launched smart energy
solutions with the idea of “power of smart” through
Internet of Things (IOT) based Home Automation solutions,
smart energy management tools and various other
home automation products encouraging customers to
implement efficient and cost-effective home automation
solutions to manage electricity usage.
Focussing on achieving growth in an environmentally
responsible and sustainable manner, your Company
has added 50 MW Solar PV assets in operating portfolio
for supply of power to captive consumers and around 6
MW of rooftop projects in the balance sheet of Tata Power
Renewable Energy Limited (TPREL). Your subsidiary,
Tata Power Solar Systems Limited (TPSSL) has built a
portfolio of 406 MW of solar rooftop projects and have
an order book of over 2,800 MW with value of around
` 8,700 crore as on 31st March 2021. In the solar products
domain, your Company is a leading player, with a portfolio
of over 33,000 solar agricultural pumps in 16 states.
Your Company’s business portfolio has been discussed
in a greater detail
in the Manufactured Capital of
Integrated Report (Pages 50-65).
6.1 Preferential Allotment of Equity Shares to Tata Sons
Private Limited
Subsequent to approval accorded by the shareholders
at the 101st Annual General Meeting of the Company on
30th July 2020, the Company
issued and allotted
49,05,66,037 Equity Shares of the Company to its Promoter,
Tata Sons Private Limited, at a price of ₹ 53 (including a
premium of ₹ 52) per Equity Share, aggregating up to
₹ 2,600 crore, for cash consideration, on a preferential basis.
The proceeds of the said Preferential Issue were utilized for
repayment of debts of the Company and its subsidiaries.
6.2 Scheme of Amalgamation
With a view to simplify the Corporate structure, your
Company has filed the following schemes of merger
with the Hon’ble National Company Law Tribunal (NCLT),
Mumbai Bench, under the applicable provisions of the
Companies Act, 2013 (the Act):
a.
Scheme of Amalgamation of Af-Taab Investment
Company Limited with the Company.
b. Composite Scheme of Arrangement of Coastal
Gujarat Power Limited and Tata Power Solar Systems
Limited with the Company along with capital re-
organisation after the merger.
The aforesaid Schemes are
interest of the
shareholders, creditors and all other stakeholders of
the parties and is not prejudicial to the interests of the
in the
the
Both
Regulatory authorities including NCLT.
schemes are pending approvals
from
7. Reserves
As per Standalone financials, the net movement in the
reserves of the Company for FY21 and FY20 is as follows:
Figures in ₹ crore
Particulars
Capital Redemption Reserve
Capital Reserve
Securities Premium
Debenture Redemption Reserve
General Reserve
Retained Earnings
Equity Instruments through OCI
Statutory Reserve
As at
31st
March
2021
2
62
8,186
297
3,854
3,370
128
660
As at
31st
March
2020
2
62
5,635
297
3,854
3,027
(45)
660
The Board of Directors has decided to retain the entire
amount of profits for FY21 in P&L account.
8. Subsidiaries/Joint Ventures/Associates
As on 31st March 2021, the Company had 59 subsidiaries
(44 are wholly owned subsidiaries), 33 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)
The Company has acquired 51% stake in the following
Odisha Discoms:
i)
ii)
TP Central Odisha Distribution Limited
TP Western Odisha Distribution Limited
iii)
TP Southern Odisha Distribution Limited
Note: The Company has also acquired 51% stake
in TP Northern Odisha Distribution Limited on
1st April 2021.
b)
The following companies have been incorporated as
subsidiaries of the Company:
i)
ii)
iii)
iv)
v)
TP Kirnali Solar Limited
TP Solapur Solar Limited
TP Saurya Limited
TP Akkalkot Renewable Limited
TP Roofurja Renewable Limited
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A report on the performance and financial position of each
of the subsidiaries, JVs and Associates has been provided
in Form AOC-I as per Section 129(2) of the Act.
10. Directors and Key Managerial Personnel
During the year under review, there was no change in the
composition of the Board.
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 at 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 FY21.
Pursuant to Section 134(5) of the Act, the Board of Directors,
to the best of its knowledge and ability, confirms that:
i.
ii.
iii.
iv.
v.
vi.
in the preparation of the annual accounts, the
applicable accounting standards have been followed
and there are no material departures;
they have selected such accounting policies and
applied them consistently and made judgments and
estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the
profit of the Company for that period;
taken proper and sufficient care
they have
the maintenance of adequate accounting
for
the provisions
records
of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud
and other irregularities;
in accordance with
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;
they have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems are adequate and
operating effectively.
136
In accordance with the requirements of the Act and the
Company’s Articles of Association, Mr. N. Chandrasekaran
retires by rotation and is eligible for re-appointment.
Members’ approval is being sought at the ensuing 102nd
Annual General Meeting (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 and
commission, as applicable, received by them.
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 has received
declarations from all the Independent Directors confirming
that they meet the criteria of independence as prescribed
under the Act and the Listing Regulations.
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
impact
reasonably anticipated that could
their ability to discharge their duties. Based upon the
declarations received from the Independent Directors, 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.
impair or
In terms of Section 150 of the Act read with Rule 6 of the
Companies (Appointment and Qualification of Directors)
Rules, 2014, as amended, Independent Directors of the
Company have included their names in the data bank of
Independent Directors maintained with the Indian Institute
of Corporate Affairs.
Ms. Anjali Bansal, Ms. Vibha Padalkar and Mr. Sanjay
Bhandarkar were appointed as Independent Directors
by the Members on 23rd August 2017, for a period of five
years commencing with effect from 14th October 2016
upto 13th October 2021.
The Board, on 12th May 2021, based on
the
recommendations of Nomination and Remuneration
Committee (NRC) and pursuant to performance evaluation
of Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar respectively
as a Member of the Board and considering their background,
experience and contribution, the continued association
of these individuals would be beneficial to the Company,
The Tata Power Company Limited Integrated Annual Report 2020-21Board's Report
their
recommended
re-appointments as
respective
Independent Directors of the Company, not liable to retire
by rotation, for a second term of five (5) years commencing
with effect from 14th October 2021 upto 13th October 2026
for approval of the Members by way of a Special Resolution
at the ensuing 102nd AGM of the Company.
Accordingly, Members’ approval is being sought at the
ensuing 102nd AGM for their respective re-appointments.
Eight Board Meetings were held during the year
under review. For further details, please refer to the
Report on Corporate Governance, which forms part of the
Annual Report.
In terms of Section 203 of the Act, the following are the
Key Managerial Personnel (KMP) of the Company as on
31st March 2021:
•
•
•
Dr. Praveer Sinha, CEO and Managing Director
Mr. Ramesh N. Subramanyam, Chief Financial Officer
Mr. Hanoz M. Mistry, Company Secretary
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 based
on 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
based on criteria such as the composition of committees,
effectiveness of Committee meetings, etc.
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.
The NRC reviewed the performance of individual directors
on the basis of criteria such as the contribution of the
individual director to the Board and Committee meetings
like preparedness on the issues to be discussed, meaningful
and constructive contribution and inputs in meetings, etc.
the
The above criteria are broadly based on
Guidance Note on Board Evaluation
issued by the
Securities and Exchange Board of India on 5th January 2017.
the Board,
In a subsequent Board meeting, the performance
of
individual
its Committees,
Directors was also discussed. Performance evaluation
of Independent Directors was done by the entire Board,
excluding the Independent Director being evaluated.
and
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 determining
independence
qualification, positive attributes and
of a Director. The NRC
for
recommending to the Board, a policy relating to the
remuneration of the Directors, Key Managerial Personnel
and other employees. In line with this requirement, the
Board has adopted the Policy on Board Diversity and
Director Attributes, which is provided in Annexure - I to
this Report and Remuneration Policy for Directors, Key
Managerial Personnel and other employees of the
Company, which is reproduced in Annexure - II to
this Report.
responsible
is also
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 the composition, terms of reference and number
of meetings held for respective committees are given in
the Report on Corporate Governance, which forms part of
the Annual 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
includes Code of Conduct for Independent Directors
which suitably incorporates the duties of 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.
137
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
All Senior Management personnel have affirmed
compliance with the Tata Code of Conduct (TCoC).
The CEO & Managing Director has also confirmed and
certified the same. The certification
is enclosed as
Annexure - I at the end of the Report on Corporate
Governance.
14. Conservation of Energy and Technology
Absorption
Your Company continues its journey of growth in a
sustainable and responsible manner and has achieved
significant conservation of energy through its various
Demand Side Management (DSM) initiatives as well as
fostering energy efficient appliances at highly discounted
prices among its customers. More than 6,000 energy
efficient appliances like ceiling fans, air conditioners
and LED tube lights have been provided to customers
in FY21. Furthermore, around 4,000 Mwh of energy
savings have been achieved due to the DSM programme
in Mumbai license area. These initiatives have been
discussed
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 - III to this Report.
in greater details
in the
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
forms part of the Annual 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.
Pursuant to Section 177(9) of the Act, a vigil mechanism
was established for directors and employees to report to
the management instances of unethical behaviour, actual
or suspected, fraud or violation of the Company’s code of
conduct or ethics policy. The Vigil Mechanism provides a
mechanism for employees of the Company to approach the
Chief Ethics Counsellor/Chairman of the Audit Committee
of the Company for redressal. No person has been denied
access to the Chairman of the Audit 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
effectiveness of internal financial controls by adopting a
systematic approach to its work. The development and
implementation of risk management policy has been
covered in the Integrated Report (Pages 24-27).
Internal Financial Control Systems and their Adequacy
Your 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.
Your Company has implemented robust processes to
ensure that all internal financial controls are effectively
working. For details on internal financial control systems,
please refer Integrated Report (Page 26).
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 your Company’s operations in future.
19. Statutory and Branch Auditors
Members of the Company at the AGM held on
23rd August 2017, approved the appointment of M/s. S R B C
& CO. LLP (SRBC) (ICAI Firm Registration Number: 324982E/
E300003), as the statutory auditors of the Company for a
period of five years commencing from the conclusion of
the 98th AGM held on said date until the conclusion of
103rd AGM of the Company to be held in 2022.
The Company has in its Notice sought approval from
the Members for passing a resolution vide Item No.8
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
Ind AS notified under Section 133 of the Act.
The Statutory Auditor’s report does not contain any
qualifications, reservations, adverse remarks or disclaimers.
The Statutory Auditors were present in the last AGM.
17. Risk Management
Your Board has
a Risk Management
Committee to frame, implement and monitor the risk
management plan for the Company. The Committee
formed
21. Cost Auditor and Cost Audit Report
Your Board has appointed M/s. Sanjay Gupta and
Associates (Firm Registration No.000212), Cost Accountants,
138
The Tata Power Company Limited Integrated Annual Report 2020-21Board's Report
as Cost Auditors of the Company for conducting cost
audit for the FY22. A resolution seeking approval of the
Members for ratifying the remuneration of ₹ 6,50,000
(Rupees Six lakh fifty thousand) plus applicable taxes,
travel and actual out-of-pocket expenses payable to
the Cost Auditors for FY22 is provided in the Notice to
the ensuing 102nd AGM. 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 FY21. 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 except the observation
that the Annual Performance Report (APR) for Itezhi Tezhi
Power Corporation Limited (ITPC) is still in the process
of filing. This was on account of the delay in approval of
accounts by ITPC board. The Secretarial Audit Report is
provided in Annexure - IV to this Report.
The Secretarial Audit report does not contain any
qualifications, reservations, adverse remarks or disclaimers.
As per the requirements of the Listing Regulations,
Practicing Company Secretaries of the material unlisted
subsidiary of the Company have undertaken secretarial
audit for FY21. The Audit Report of such material unlisted
subsidiary confirms that they have complied with the
provisions of the Act, Rules, Regulations, and Guidelines and
that there were no deviations or non-compliances.
The Secretarial Audit Report of the unlisted material
subsidiary viz. Tata Power Delhi Distribution Limited has
been annexed along with the report of the Company.
23. Compliance with Secretarial Standards
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
24. Loans, Guarantees,
Securities
and
Investments
Your 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 required to be provided.
25. Related Party Transactions
In
line with the requirements of the Act and the
Listing Regulations, the Company has formulated a
Policy on Related Party Transactions and the same can be
accessed using the following link: https://www.tatapower.
com/pdf/aboutus/rpt-policy-framework-guidelines.pdf.
During the year under review there were no material
transactions of the Company with any of its related parties.
Therefore, the disclosure of Related Party Transactions as
required under Section 134(3)(h) of the Act in Form AOC-2
is not applicable to the Company for FY21 and hence the
same is not provided.
26. Sustainability
Your Company
to sustainable
remains committed
growth, resource conservation, energy efficiency, habitat
protection as a responsible corporate citizen with an aim
to achieve carbon neutrality. Your Company’s efforts on
sustainability were recognized at various platforms and
a testimony to this were the various awards bestowed
upon it. Your Company won the best Environment Social
and Governance (ESG) disclosure at the Investor Relations
Award 2020 and ranked 13th in India’s most sustainable
companies with an A+ rating by BW Business world and
Sustain lab Paris. Your Company is the only Indian power
utility to co-create Sustainability Development Goal (SDG)
roadmap for Electric Utilities with World Business Council for
Sustainable Development (WBCSD) along with 10 global
power utilities.
26.1 Care For Our Community/Community Relations
Your Company
focusses on five thrust areas viz.
education, health and sanitation, livelihood and skill
building, water and financial inclusivity. In these areas,
key flagship interventions were undertaken, Tata Power
(Standalone) covered around 12.85 lakh people from
Maharashtra, Jharkhand and West Bengal and at group
level, your Company’s CSR Initiatives covered around
46.65 lakh beneficiaries across 61 locations in 15 states.
The Initiatives are aligned to 6 UN SDGs and Schedule VII
to the Act.
As a part of its COVID-19 response initiatives, your
Company extended extensive support with a focus on
migrant and vulnerable communities to 15 states across
the country impacting around 16.59 lakh beneficiaries.
Flagship initiatives undertaken across various locations
during FY21 can be summarized as below:
•
Financial inclusivity program was undertaken across
lakh beneficiaries
all major
locations with 4.59
139
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
•
•
•
•
covered with resources worth ₹ 312 crore accessed
under various Government Schemes by communities.
1,239 Self-Help Group (SHG) (women) covering 14,325
members involved in various flagship initiatives such
as Dhaaga, Abha, Sakhi, Roshni and Samriddhi with
cumulative revenue generation of ₹ 4.70 crore.
New integrated Vocational Training (VT) centres
(Roshni) intervention was launched across Bihar,
Maharashtra, Karnataka, Jharkand, Odisha and
Tamil Nadu. Total 13 VT centres were set up across
all the locations with 88% candidates employed/self-
employed through these centers.
70,000
Over
under
youth were
Daksh intervention and TPSDI initiatives with 25%
youth from Affirmative Action (AA) community
benefit from the intervention.
skilled
Water Initiatives resulted in a coverage of 11.85
lakh beneficiaries under demand and supply side
management of water
initiatives across Delhi,
Maharashtra, Gujarat, Rajasthan, Madhya Pradesh,
Jharkhand and Tamil Nadu.
The CSR policy of the Company has been provided on the
Company’s website at https://www.tatapower.com/pdf/
aboutus/csr-policy.pdf.
The Company’s standalone CSR spend for FY21 stood
at ₹ 3.45 crore against the 2% CSR obligation of ₹ 3.45
crore. Details of the consolidated CSR activities of your
Company and its key subsidiaries are described in Social and
Relationship Capital of Integrated Report (Pages 86-103)
as well as in the Business Responsibility Report (BRR).
The annual report on CSR activities (standalone) is provided
in Annexure - V to this Report. On a consolidated basis, the
Tata Power Group entities' expenditure on CSR activities
stood at ₹ 39.24 crore against the CSR obligation of ₹ 38.60
crore (calculated as per Section 135 of the Act) in FY21.
26.2 Affirmative Action
As a part of AA, your Company continued in its journey
of working with local vendors and promoting inclusion
of SC/ST in business opportunities. This is driven by
Corporate Contracts department with a single point
of contact at the Corporate level, as well as at Division/
Site level (Procurement Heads at Division level) to facilitate
inclusion of SC/ST vendors. AA process for vendor
enlistment and ordering was deployed to encourage and
evolve entrepreneurship skill among the communities and
enable them to be a part of business ecosystem. It also
made them compete with positive discrimination element
by offering a price preference of 5% over the L1 bidder
and gives incentive of 1% of contract value for engaging
140
50% workforce from SC/ST community. Your Company
also promoted entrepreneurship at community level
by supporting enterprise development. In this year,
business worth ₹ 9.63 crore was given to 24 vendors from
SC/ST community. SHG members were also supported
through income generation activities. Your Company
supported youth, women, farmers and fishermen through
skilling and livelihood initiatives with a focus to increase
the income level making community members self-
reliant. This has been further described in greater detail in
Social and Relationship Capital of Integrated Report.
26.3 Sustainability Reporting
its second
IIRC-IR Framework
Your Company has adopted the
to prepare
Integrated Report 2020-21.
SEBI recommended Integrated Reporting 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 (NVG) on
Social, Environmental and Economic responsibilities of the
business as well as the United Nations 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 as well as commitment to empower
the customers for future-ready energy providing smart
energy solutions paving the way for a sustainable future.
1.
its
Environment
Your Company continues to strive for efficiency in
operations and maintenance through adoption
of best practices optimizing
efficiency
parameters like heat rate and auxiliary resulting
in lower resource consumption and lower carbon
emissions. Continuing on its path to be a pioneer for
environmental stewardship in power industry, your
Company further focusses on efficient use of water,
prudent recycling and waste disposal measures and
remains committed to comply with regulations.
Your Company also has been strategically focussing
on scaling up renewables business, venturing into
new energy efficient green business
initiatives
like Microgrids, EV charging, Home Automations,
Solar Rooftop as well as exploring new opportunities
initiatives
in distribution businesses, All these
reinforces your Company’s commitment towards
sustainable “Green” growth and encouraging the
customer to avail energy efficient, future-ready, smart
energy solutions. A brief outline of your Company’s
efforts towards protection of environment and
biodiversity is given in the Natural Capital section of
Integrated Report (Pages 110-125).
The Tata Power Company Limited Integrated Annual Report 2020-21Board's Report
2. Health and Safety
Your Company is consciously committed to health
and safety of all employees and other stakeholders
with a defined safety vision “To be a leader in
Safety Excellence in the global power and energy
business”. Your Company employs a pro-active and
pre-emptive approach to occupational health and
safety and is committed to actively drive the agenda
through the length and breadth of the organization.
Consequently, 100% of your contractual workforce is
trained on various aspects of Occupational health and
safety. Close monitoring of the safety management
system helped your company to enhance standard
is
of Health and Safety. Suraksha mobile app
one such monitoring
intervention that enables
employees to conveniently report unsafe conditions.
Furthermore, your Company’s commitment towards
ethos of safety was further demonstrated on various
responses during COVID-19 pandemic with a working
theme of “Learn from disaster and prepare for
a safer future”. The key focus of this theme was
to ensure that health and safety of employees as
well as other stakeholders who are fundamental
to business are protected and to strengthen your
safety measures
rigorous
innovation. Furthermore, your Company has already
started venturing towards application of advanced
technologies like usage of drones, remote monitoring,
safe systems for high risk activities etc. to eliminate
and minimize the risks associated with various
activities for betterment of safety performance.
is
More deployment of advanced technologies
planned in near future for further enhancement
of safety performance. A detailed description of
Health and Safety including COVID-19 initiatives
taken by your Company is outlined in Human Capital
section of Integrated Report (Pages 72-85).
through numerous
Customer Relationship
Your Company
is working consistently towards
a dedicated theme of energizing and sensitizing
your customers for smart and future-ready energy
solutions to ensure a sustainable future. This involves
various IOT based home automations and smart
metering solutions for customers across all segments
as well as various DSM programs. Furthermore,
your Company has been instrumental in raising
energy conservation awareness and reducing the
energy cost for the consumers through initiatives
such as “Be Green”, solar rooftop off-grid solutions
and other awareness campaigns. Your Company is
steadily transitioning from a B2B or a B2G company
to a B2C company with enhanced customer-
centricity. The customer base
is getting more
divergent with ventures such as rural electrification
3.
(microgrids), solar rooftop solutions, Electric Vehicle
(EV) charging etc. Your Company has numerous
touchpoints to be
in constant communication
with customers as well as a structured process of
tracking complaints and ensuring resolution within
pre-defined timelines. Your Company has also
been a pioneer in leveraging digital technology to
serve customers efficiently. Few of such initiatives
(KYEC),
are Know Your Energy Consumption
Webchat integrated chatbot TINA, e-Nach, all women
customer relations centre, etc. Webchat integrated
chatbot TINA went live on customer portal on
6th January 2021 through which consumer can
have live communication with Company officials.
Furthermore, through implementation of e-billing,
your Company reinforces its commitment towards
saving of trees and ecosystem.
In FY21, your
Company has added more than 1 lakh customers
resulting in a total of more than 1.4 lakh customers
availing the facilities of e-billing in Mumbai license
area. A detailed description of your customer
relation measures
in the Social and
is given
Relationship Capital section in the Integrated Report
(Pages 86-103).
4. Human Resource Management
A key area of focus for your Company is to safeguard
health and well-being of employees and their families
while the employees remain steadfast in their service
to the nation by providing electricity. Many policies
and benefits were introduced and innovative work
formats were
implemented to maximize safety
during pandemic situation. Your Company also
continues to endeavour to create a work environment
which is collaborative and learning and growth
oriented to enable employees to perform at their
full potential. Your Human Resource (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 aim to develop competencies to rise
to new challenges especially posed by venturing
into various segments of renewable energy and new
business initiatives. Some of the key HR programmes
of your Company are Talent Next, Youth Power
Confluence, Gyankosh, Reward & Recognition, etc.
A detailed description is given in the Human Capital
section of the Integrated Report (Pages 79-80).
26.4 Business Responsibility Report
the
The BRR is in line with the SEBI requirement based
on
"National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business"
notified by MCA, Government of India, in July 2011.
Your Company reported its performance for FY21 as per
the BRR framework, describing initiatives taken from an
environmental, social and governance perspective.
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As per Regulation 34 of the Listing Regulations, the
BRR is attached as a part of this Annual Report. Since the
Company is publishing Annual Report under IIRC, report
on the nine principles of the NVG on social, environmental
and economic responsibilities of business as framed by the
MCA, is provided in relevant sections of Integrated Report
with suitable references to the BRR.
30. 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.
31. Foreign Exchange - Earnings and Outgo
26.5 Prevention of Sexual Harassment
Disclosures in relation to the Sexual Harassment of
Women at Workplace
(Prevention, Prohibition and
Redressal) Act, 2013 have been provided in the Report on
Corporate Governance as well as MD&A.
27. Annual Return
Pursuant to Section 92 of the Act and Rule 12 of the
Companies
(Management and Administration) Rules,
2014, the Annual Return is available on the website of the
Company on the following link: https://www.tatapower.
com/pdf/investor-relations/Annual-Return-MGT-20-21.pdf
28. Particulars of Employees and
Remuneration
The information required under Section 197(12) of the
Act read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, is
attached as Annexure - VI.
Statement containing particulars of top 10 employees
and the employees drawing remuneration
in excess
of limits prescribed under Section 197 (12) of the Act
read with Rule 5(2) and (3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
is provided in the Annexure forming part of this report.
In terms of proviso to Section 136(1) of the Act, the Report and
Accounts are being sent to the Members excluding the
aforesaid Annexure. The said Statement is also available
for inspection with the Company. Any Member interested
in obtaining a copy of the same may write to the
Company Secretary at investorcomplaints@tatapower.com.
into five
Officers of the organisation are classified
management work levels i.e. MA, MB, MC, MD and ME.
The work levels are further divided into grades. Non-
management employees are across different grades and
also have been classified as unskilled, semi-skilled, skilled
and highly skilled.
29. Disclosure requirements
The Company has devised proper systems to ensure
the provisions of all applicable
compliance with
Secretarial Standards issued by the Institute of Company
Secretaries of India and such systems are adequate and
operating effectively.
Particulars - Standalone
Foreign Exchange Earnings
Foreign Exchange
Outflow mainly on account of:
• Fuel purchase
•
Interest on foreign currency
borrowings, NRI dividends
• Purchase of capital equipment,
components and spares and other
miscellaneous expenses
Figures in ₹ crore
FY21
FY20
809
843
706
4
125
1,301
1,070
3
133
228
32. Acknowledgements
On behalf of the Directors of the Company, I would like to
place on record our deep appreciation to our shareholders,
customers, business partners, vendors - both international
and domestic, bankers, financial institutions and academic
institutions for all the support rendered during the year.
The Directors are thankful to the Government of India, the
various ministries of the State Governments, the central
and state electricity regulatory authorities, communities
in the neighbourhood of our operations, municipal
authorities of Mumbai and local authorities in areas where
we are operational in India; as also partners, governments
and stakeholders in international geographies where
the Company operates, for all the support rendered
during the year.
The Directors regret the loss of life due to COVID-19
pandemic and are deeply grateful and have immense
respect for every person who risked their life and safety, to
fight this pandemic.
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,
N. Chandrasekaran
Chairman
(DIN: 00121863)
Mumbai, 12th May 2021
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The Tata Power Company Limited Integrated Annual Report 2020-21Board's Report
Annexure - I : 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.
Additional Attributes
•
The directors should not have any other pecuniary
relationship with the company,
its subsidiaries,
associates or joint ventures and the company’s
promoters, besides sitting fees and commission.
•
•
•
•
The directors should not have any of their relatives
(as defined in the Act and Rules made thereunder) as
directors or employees or other stakeholders (other
than with immaterial dealings) of the company, its
subsidiaries, associates or joint ventures.
The directors should maintain an arm’s
length
relationship between themselves and the employees
of the company, as also with the directors and
employees of
joint
ventures, promoters and stakeholders for whom the
relationship with these entities is material.
its subsidiaries, associates,
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
or
whilst
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.
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Board's Report
Annexure - II : REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND
OTHER EMPLOYEES
(Ref.: Board's Report, Section 12)
o
o
o
o
o
o
o
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,
visits,
induction and training (organised by the company
for directors) and in obtaining professional advice
from independent advisors in the furtherance of his/
her duties as a director.
site
for
The philosophy
remuneration of directors, Key
Managerial Personnel (“KMP”) and all other employees of
The Tata Power Company Limited (“company”) is based on the
commitment of fostering a culture of leadership with trust.
The remuneration policy is aligned to this philosophy.
This remuneration policy has been prepared pursuant to the
provisions of Section 178(3) of the Companies Act, 2013
(“Act”) and Regulation 19 read with Part D of Schedule
II of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”). In case of any inconsistency between
the provisions of law and this remuneration policy, the
provisions of the law shall prevail and the company shall
abide by the applicable law. While formulating this policy,
the Nomination and Remuneration Committee (“NRC”) has
considered the factors laid down under Section 178(4) of the
Act, which are as under:
"(a)
(b)
(c)
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.”
Key principles governing this remuneration policy are as
follows:
• Remuneration
independent
for
directors and non-independent non-
executive directors
o
Independent directors (“ID”) and non-independent
non-executive directors (“NED”) may be paid sitting
fees (for attending the meetings of the Board and
of committees of which they may be members) and
commission within regulatory limits.
o Within the parameters prescribed by law, the payment
of sitting fees and commission will be recommended
by the NRC and approved by the Board.
144
The Tata Power Company Limited Integrated Annual Report 2020-21 • Remuneration for managing director
(“MD”)/executive directors (“ED”)/KMP/
rest of the employees1
o
retain
suitable
for every
The extent of overall remuneration should be
talented and
to attract and
sufficient
qualified
role.
individuals
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.
o
In terms of remuneration mix or composition:
The remuneration mix for the MD/EDs is as per
the contract approved by the shareholders.
In case of any change, the same would require
the approval of the shareholders.
Basic/fixed salary is provided to all employees
to ensure that there is a steady income in line
with their skills and experience.
In addition to the basic/fixed salary, the
company provides employees with certain
perquisites, allowances and benefits to enable
a certain level of lifestyle and to offer scope for
savings and tax optimization, where possible.
The company also provides all employees
with a social security net (subject to limits) by
covering medical expenses and hospitalisation
through re-imbursements or insurance cover
and accidental death and dismemberment
through personal accident insurance.
The
benefits as applicable.
retirement
company
provides
to
addition
the basic/fixed
In
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
________________________________________________
1Excludes employees covered by any long term settlements
or specific term contracts. The remuneration for these
employees would be driven by the respective long term
settlements or contracts.
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Board's Report
Annexure - III : CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
(Ref.: Board's Report, Section 14)
A. Conservation of Energy
The steps taken for impact on conservation of energy:
Renewables Business
Major
initiatives
highlighted below:
taken
in
renewables business
is
is a pioneer
Your Company
in cultivating energy
conservation and operational efficiency with an
ultimate goal to reduce emissions, pollutants and
deliver cost effective and environment friendly energy
solutions to customers.
1.
2.
Re-conduiting & upliftment of DC power cables
in solar sites.
Installation of
reactive power
inverters with
compensation in solar sites to reduce auxiliary power.
License
In Mumbai
your Company has
area,
distributed more than 6,000 energy efficient appliances
at discounted prices encouraging
to
save on their electricity consumption cost as well
in FY21.
as fostering energy conservation measures
More than 4,000 Mwh of energy has been saved in
the year in Mumbai as a result of various Demand Side
Management (DSM) schemes of your Company.
customers
One of the significant steps taken
is
introduction of the concept of “paperless office” through
e-billing. During the year, around 1.5 lakh customers
opted for e-billing in Mumbai resulting in saving of
approximately 2,630 trees.
in Mumbai
Your Company continues to strive for new avenues
to
improve operational efficiency across generation,
renewables and transmission and distribution businesses
leading to conservation of energy and optimization of
resource consumption.
Generation Business
initiatives
Major
highlighted below:
taken
in Generation business
is
1.
Installation of Sonic Soot blower in Regenerative
Air Preheater (RAPH) at Maithon Power Limited.
2. Optimisation of mill and Cold Work Pressure (CWP)
operation in Jojobera.
3. Optimization under Reliability Centric Maintenance
(RCM) approach and GE APM analytics in Trombay.
3.
Rooftop solar Arrangement for SCADA back-up.
4.
Protection of Wind Turbine Generator
(WTG)
transformer and PM3000 in Inox Make WTG in
wind sites.
Transmission and Distribution Business
Major
Distribution business is highlighted below:
initiatives
taken
in
Transmission
and
1.
2.
3.
4.
5.
Introduced Smart Meter Reading and Bill Distribution
(SMRD) for improving process efficiency in meter
reading and bill dispatch activities.
Centralized monitoring of operational parameters
of LT
load balancing and
in
stable voltages.
feeder helping
Battery
arrangements for reducing asset stress during peak.
preferred
storage
with
bus
Installation of energy efficient Microgrid that can
supply power to consumers in rural areas.
Introduction
automated Meter reading.
of
SMART
Meters
for
6. Use of Artificial Intelligence (AI) model for auto
segregation and auto email responses.
7.
Use of Intelligent Voice Chat bot for customers.
Coke-oven Gas
Industrial Energy Limited (Kalinganagar).
(COG) burner modification
in
8.
Voice operated switchgear for safe operation.
based
combustion
Laser
temperature
optimization solution and power consumption
optimization of Electrostatic Precipitators (ECP) in
Coastal Gujarat Power Limited.
&
9.
Unmanned automated Substation.
10. 100% automated billing activity to avoid manual error.
4.
5.
146
The Tata Power Company Limited Integrated Annual Report 2020-21
11. Completed installation of 2,700 Smart meters in
March 2021 in Mumbai license area out of which 930
Smart meters installed at M/s J P Elara, making it the
first residential complex in Mumbai where supply
released through 100% smart metering system.
Your Company has also initiated net metering for rooftop
solar and integration of consumer solar plants with
Tata Power grid in Mumbai facilitating customers to
harness solar energy. Consumers are able to export excess
generation to grid and get a set-off in their electricity
bill. In Mumbai area 64 customers owned rooftop solar
PV plants having a capacity of around 1.5 Mwp which have
been integrated with grid in FY21.
Furthermore, your Company facilitated energy audits and
walk down energy surveys for industrial and commercial
consumers through energy auditors accredited by Bureau of
Energy Efficiency (BEE) helping them to get precise and
actionable recommendations for energy saving.
Your Company remains committed to deliver superior
customer value by leveraging on digital technologies.
In FY21, webchat integrated chatbot TINA were made live
on customer portal enabling consumer to interact with the
Company officers directly through live chat. Furthermore,
your Company introduced availability of hourly, daily
and monthly consumption graphs, peer consumption
comparison, alerts for consumption slab cross overs
and increase in daily consumptions by Smart Meter
Analytics are few of the initiatives undertaken to enhance
customer experience.
Your Company’s mission of 'being the lead adopter of
technology with a spirit of pioneering and calculated risk
taking' is geared to make the Company future ready for all
technological disruption coming up in the near future.
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Board's Report
B. Research and Development
1
Specific area in which R&D
carried out by the Company
a) Robotic applications for maintenance and inspection of plant equipment.
b) Low-cost industrial safety products.
c) Electric Vehicle charging stations.
d) Wearable industrial thermal inspection device.
e) Use of hydrogen as fuel for power generation.
f) In association with IIT Bombay, different CO2 Capture and storage solutions being
developed at lab scale.
g) Underwater inspection Device for leakage identification.
h) Air Gap inspection BOT for large vertical generator.
i) Deployment of energy storage/battery and EV charging station.
2
Benefits derived as a result
of the above R&D
a) Energy Conservation/improvement in Efficiency.
b) Reduction in Carbon Footprint.
c) Sustaining plant availability by reduction in equipment breakdown.
d) Improvement in equipment and overall plant performance.
e) Improvement in efficiency and reduced maintenance cost of Solar Panels.
f) Good business potential by upscaling of low-cost customized products / devices.
3
Future Plan of Action
a) Investments towards SMART grid technologies such as Smart Meters, Sensors, IOTs to
make network more intelligent and efficient.
b) Development and upgradation of energy storage and battery system specially to
meet high energy demand due to EV charging solutions, etc.
C. Technology Absorption
1
Efforts, in brief, made towards
Technology Absorption,
adaptation and innovation
a) Deployment of Unmanned Aerial Vehicles with customized payloads for industrial
applications like, Switchyard Thermography, Hydro Penstock and DAM Inspection,
Solar Plant Thermography, Structures and Chimney Inspections.
b) Deployment of Remotely Operated Vehicle (ROV) for under water inspections and
leakage identification.
c) Deployment of robotics for large vertical generator air gap and tunnel inspection.
d) Deployment of IoT based solution for home energy monitoring and remote
site monitoring.
2
Benefits derived as a result of
the above efforts
a) Increased equipment availability by reducing downtime.
b) Reduction in cost, time and efforts for preventive maintenance and inspection.
c) Better planning of critical equipment outages.
d) Digitization of inspected objects for future reference.
e) Lowering the inspection time with quality output and enhanced safety.
148
The Tata Power Company Limited Integrated Annual Report 2020-21 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
Nil
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 (in ₹ crore)
a) Capital
b) Revenue
a) Business Collaboration Pliot Project (Indigenization and digitalization) - ₹ 0.6 crore
SED- ₹ 6.74 crore
b) ₹ 0.10 crore
Mumbai, 12th May 2021
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
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Annexure - IV : Secretarial Audit Report
(Ref.: Board's Report, Section 22)
FORM No. MR-3
SECRETARIAL AUDIT REPORT
For the Financial Year
Ended 31st March, 2021
[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,
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, 2021 (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, 2021
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;
150
(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’):
1.
India
The Securities and Exchange Board of
(Substantial Acquisition of Shares and Take
overs) Regulations, 2011;
2.
3.
4.
5.
6.
7.
8.
The Securities and Exchange Board of
(Prohibition of Insider Trading) Regulations, 2015;
India
The Securities and Exchange Board of India (Issue
of Capital and Disclosure Requirements) Regulations,
2018;
and
Securities
The
of
India (Share Based Employee Benefits) Regulations,
2014; (Not Applicable to the Company during
the Audit Period)
Exchange
Board
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
and
Securities
The
of
India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and
dealing with client;
Exchange
Board
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).
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
The Tata Power Company Limited Integrated Annual Report 2020-21 During the period under review the Company has
complied with the provisions of the Act, Rules, Regulations,
Guidelines and Standards, etc mentioned above except
Itezhi Tezhi
the Annual Performance Report (APR) for
Power Corporation Limited which is still in the process of filing.
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.
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,
under Central and
Commissions/Authority
regulations and applicable order(s)
State Electricity Regulatory
(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. Further, there were no changes in
the composition of the Board of Directors that took place during
the Audit period.
Adequate notice is 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.
We further report that during the audit period, the
Company has
(i)
the Company has
allotted 37,000
issued
Unsecured, Redeemable, Taxable, Listed, Rated, Non-
Convertible Debentures (NCDs) amounting to ₹ 3,700 crore.
and
(ii)
the company has increased Authorized Share Capital
vide shareholders approval through postal ballot dated
24th June, 2020 from ₹ 5,79,00,00,000 to ₹ 7,79,00,00,000.
Subsequently, the Company altered the provisions of
Memorandum of Association.
(iii)
the Company has
issued and allotted 49,05,66,037
Equity Shares at a price of ₹ 53/- per Equity Share to Tata Sons
Private Limited aggregating to ₹ 26,00,00,00,000/- through
preferential issue.
For Makarand M. Joshi & Co.
Practicing Company Secretaries
Makarand Joshi
Partner
FCS No. 5533
CP No. 3662
UDIN: F005533C000283140
Peer Review No: P2009MH007000
Place: Mumbai
Date: 12th May, 2021
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.
151
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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 procedures 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: F005533C000283140
Peer Review No: P2009MH007000
Place: Mumbai
Date: 12th May, 2021
Board's Report
‘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.
3. We have not verified the correctness and appropriateness
of financial records and Books of Accounts of the company.
152
The Tata Power Company Limited Integrated Annual Report 2020-21 Secretarial Audit Report of Tata Power
Delhi Distribution Limited (The Unlisted
Material Subsidiary)
FORM No. MR-3
SECRETARIAL AUDIT REPORT
For the Financial Year Ended 31st March 2021
[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,
Tata Power Delhi Distribution Limited
NDPL House,
Hudson Lines, Kingsway Camp,
Delhi 110 009
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by Tata Power Delhi Distribution
Limited having CIN U40109DL2001PLC111526 (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 my
opinion thereon.
Based on our verification of Tata Power Delhi Distribution
Limited’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 2021 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 Tata Power
Delhi Distribution Limited (“the Company”) for the financial
year ended on 31st March 2021 according to the provisions of:
ii.
iii.
iv.
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder; Not Applicable
The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment and
External Commercial Borrowings;
The Company has complied with the provisions,
rules & regulations of FEMA to the extent applicable.
The Company is not having any FDI, ODI and ECB.
v.
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’) including any statutory modification or
re-enactment thereof: -
a.
b.
c.
d.
e.
f.
g.
h.
The Securities and Exchange Board of
India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011; Not Applicable
The Securities and Exchange Board of
(Prohibition of
Insider
1992; Not Applicable
India
Trading) Regulations,
The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2009; Not Applicable
The Securities and Exchange Board of
India
(Employee Stock Option Scheme and Employee
1999;
Stock
Not Applicable
Scheme) Guidelines,
Purchase
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
Not Applicable
and
Securities
The
of
India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and
dealing with client; Not Applicable
Exchange
Board
Securities
of
The
India (Delisting of Equity Shares) Regulations, 2009;
Not Applicable and
Exchange
Board
and
The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; Not Applicable
We further report that, having regard to the compliance
system prevailing in the Company and on the examination
of relevant documents and records in pursuance thereof,
on test check basis, the Company has complied with the
following laws applicable specifically to the Company
i.
The Companies Act, 2013 (the Act) and the rules
made thereunder;
•
•
The Electricity Act, 2003
The Electricity (Supply) Act, 1948
153
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Board's Report
•
•
•
The Indian Electricity Rules, 1956
Rules,
The
applicable
order(s) under Central and State Electricity
Regulatory Commission/Authority
regulations
and
The Energy Conservation Act, 2001
The Company has also complied with various provisions
of Labour Laws and Environment Laws to the extent
applicable to the Company.
We have also examined compliance with the applicable
clauses of the following:
i.
ii.
Secretarial Standards issued by The Institute of
Company Secretaries of India: Secretarial Standard-1
on the Meetings of the Board of Directors and
Secretarial Standard-2 on General Meetings.
Listing Agreements
The
the Company with
applicable; Not Applicable
entered
Stock
Exchange(s),
into by
if
During the period under review, the Company has complied
with the provisions of the Acts, Rules, Regulations,
Guidelines, Standards, etc. as aforesaid.
We further report that
The Board of Directors of the Company is duly constituted
with proper balance of Non-Executive Directors,
Women Directors and
Independent Directors. There
were no changes in the composition of the Board of
Directors during the period under review.
Adequate notice is 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
the meeting.
Majority decision is carried through while the dissenting
members’ views are captured and recorded as part
of the minutes.
for meaningful participation at
We further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable
laws, rules, regulations
and guidelines.
We further report that during the audit period the
Company had no specific events or actions which are having
a major bearing on the Company’s Affairs in pursuance
of the above referred laws, rules, regulations, guidelines,
standards, etc. referred to above except as under:
154
in Authorised Share Capital of
Increase
the
Company and amendment in the Capital Clause of
the Memorandum of Association by Capitalization of
reserves of the Company through issue and allotment
of New Bonus Equity Shares at par amounting to ₹ 500
crore to the existing shareholders of the Company
increased
its authorized share
The Company had
from the existing authorised share capital
capital
of ₹ 1,250,00,00,000/-
(Rupees One Thousand Two
Hundred and Fifty Crore only) divided into 75,00,00,000
(Seventy Five Crore) Equity Shares of ₹ 10/- (Rupees Ten
Only) each aggregating to ₹ 750,00,00,000 (Rupees Seven
Hundred and Fifty Crore only) and 5,00,00,000 (Five Crore),
12% Cumulative Redeemable Preference Shares of
₹ 100/- (Rupees Hundred Only) each aggregating to
₹ 500,00,00,000
(Rupees Five Hundred Crore only)
to ₹ 1,750,00,00,000/- (Rupees One Thousand Seven
Hundred and Fifty Crore only) divided into 125,00,00,000
(One Hundred Twenty Five Crore) Equity Shares of ₹ 10/-
(Rupees Ten Only) each aggregating to ₹ 1,250,00,00,000
(Rupees One Thousand Two Hundred and Fifty Crore only)
and 5,00,00,000 (Five Crore) 12% Cumulative Redeemable
Preference Shares of ₹ 100/- (Rupees Hundred Only)
each aggregating to ₹ 500,00,00,000
(Rupees Five
Hundred Crore only) by creation of additional 50,00,00,000
(Fifty crore) Equity Shares of ₹ 10/- (Rupees Ten Only)
each aggregating to ₹ 500,00,00,000
(Rupees Five
Hundred Crore only) ranking pari-passu with the existing
equity shares of the Company.
The Company had capitalized a sum of ₹ 500 crore standing
to the credit of the capital redemption reserve account of
the Company for the purpose of issue and allotment of
New Bonus Equity Shares (50 crore of ₹ 10/- each) at par,
credited as fully paid-up equity shares to the holders of the
existing equity shares of the Company in consideration of
their shareholding i.e. 51% of total bonus equity shares to
The Tata Power Company Limited, which holds 51% shares
in the Company and 49% of total bonus equity shares to
Delhi Power Company Limited, which holds 49% shares
in the Company.
For Siddiqui & Associates
Company Secretaries
Place: New Delhi
K.O.SIDDIQUI
Date: 14th April 2021 FCS 2229; CP 1284
UDIN:F002229C000087041
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.
The Tata Power Company Limited Integrated Annual Report 2020-21
‘Annexure A’
3. We have not verified the correctness and appropriateness
of financial records and Books of Accounts of the Company.
To,
The Members,
Tata Power Delhi Distribution Limited
NDPL House,
Hudson Lines, Kingsway Camp,
Delhi 110 009
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. Wherever
required, we
the
Management representation about the compliance of
laws, rules and regulations and happening of events etc.
obtained
have
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 procedures 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 Siddiqui & Associates
Company Secretaries
Place: New Delhi
K.O.SIDDIQUI
Date: 14th April 2021 FCS 2229; CP 1284
UDIN: F002229C000087041
155
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Board's Report
ANNEXURE - V : ANNUAL REPORT ON CSR ACTIVITIES
(Ref.: Board's Report, Section 26)
1. Brief outline on CSR Policy of the Company:
Tata Power is committed to ensuring the social wellbeing of the communities in the vicinity of its business operations through
Corporate Social Responsibility initiatives (CSR) in alignment with Tata Group Focus Initiatives.
Tata Power shall engage with the community by undertaking the following principles and activities:
• Consult pro-actively with the community and other key stakeholders for understanding needs and designing initiatives for
the social wellbeing of the community.
• Undertake activities as per 5 major thrust areas, which include: -
1. Education
2. Health and Sanitation
3. Livelihood & Skill Building
4. Financial Inclusivity
5. Water (Drinking and Irrigation)
The Company focussed on synergy, scale and simplification for process improvement. 15 key initiatives across locations
helped to achieve scale and deliver 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 or proposed to be undertaken, is provided on the Company’s website.
2. Composition of CSR Committee:
Name of the Director
Category of Directorship
Sl.
No.
No. of CSR Committee
Meetings held during tenure
No. of CSR Committee
Meetings attended
(i) Ms. Anjali Bansal, Chairperson
Independent, Non-Executive
(ii) Mr. K. M. Chandrasekhar
Independent, Non-Executive
(iii) Dr. Praveer Sinha
Executive
4
4
4
4
4
4
3. Web-link where composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the
website of the company:
https://www.tatapower.com/corporate/board-committees.aspx
https://www.tatapower.com/pdf/aboutus/csr-policy.pdf
https://www.tatapower.com/sustainability/social-capital/thrust-areas.aspx
4.
Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014, if applicable (attach the report): Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Not Applicable
Sl.
No.
Financial Year
Amount available for set-off from
preceding financial years (in ₹)
Amount required to be set off for the
financial year, if any (in ₹)
---------------------------------------------------------------------------------NA--------------------------------------------------------------
6. Average net profit of the company as per section 135(5): ₹ 172.63 crore
156
The Tata Power Company Limited Integrated Annual Report 2020-21
7.
(a) Two percent of average net profit of the company as per section 135(5): ₹ 3.45 crore
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.: NA
(c) Amount required to be set off for the financial year, if any: NA
(d) Total CSR obligation for the financial year (7a+7b-7c): ₹ 3.45 crore
8.
(a) CSR amount spent or unspent for the financial year:
Total Amount
Spent for the
Financial Year
(in `)
Total Amount transferred
to Unspent CSR Account as
per section 135(6)
Amount Unspent (in `)
Amount transferred to any fund specified under
Schedule VII as per second proviso to section 135(5)
Amount
Date of Transfer Name of the Fund
Amount
Date of Transfer
₹ 3.45 crore
------------------------------------------------------------NA-----------------------------------------------------------
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1)
Sl.
No.
(2)
Name
of the
Project
(4)
Local
area
(Yes/
No)
(3)
Item
from
the
list of
activities
in
Schedule
VII to
the Act
(5)
Location
of the
project
(6)
Project
duration
(7)
Amount
allocated
for the
project
(in `)
(8)
Amount
spent in
the
current
financial
Year
(in `)
State District
(11)
Mode of
Implementation -
Through Imple-
menting Agency
(10)
Mode
of
Imple-
men
tation -
Direct
(Yes/No)
(9)
Amount
transferred
to
Unspent
CSR
Account
for the
project
as per
Section
135(6)
(in `)
Name
CSR
Registration
number
---------------------------------------------------------------------------------NA------------------------------------------------------------------
157
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Board's Report
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1)
Sl.
No.
(2)
Name
of the
Project
1.
Education
2.
3.
4
5
Health
and
Sanitation
Livelihood
and
Skill Building
Financial
Inclusivity
Others
TOTAL
(4)
Local
area
(Yes/
No)
(5)
Location
of the
project
State
District
(6)
Amount
spent
for the
project
(in ` crore)
(7)
Mode
of
Implemen
tation -
Direct
(Yes/No)
(8)
Mode of
Implementation -
Through Imple-
menting
Agency
Name
CSR
Registration
number
(3)
Item
from
the
list of
activities
in
Schedule
VII to
the Act
Item (ii)
Yes
• Maharashtra
• West Bengal
Item (i)
Yes
• Maharashtra
• West Bengal
Pune
Purba
Medinipur
Mumbai &
Pune
Purba
Medinipur
0.14
Yes
TPCDT
CSR00002946
0.54
Yes
TPCDT
CSR00002946
2.21
Yes
TPCDT
CSR00002946
Item (ii)
Item (i)
Yes
• Maharashtra
Mumbai,
Pune &
Palghar
Purba
Medinipur
Yes Maharashtra Mumbai &
• West Bengal
Item (ii) (x)
Yes Maharashtra Mumbai &
0.22
Pune
Pune
3.39
0.28
Yes
Yes
TPCDT
CSR00002946
TPCDT
CSR00002946
(d) Amount spent in Administrative Overheads: ₹ 0.06 crore
(e) Amount spent on Impact Assessment, if applicable: Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ₹ 3.45 crore
(g) Excess amount for set off, if any: Nil
Two percent of average net profit of the company as per section 135(5)
Sl. No.
(i)
(ii) Total amount spent for the Financial Year
(iii) Excess amount spent for the financial year [(ii)-(i)]
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous
Particular
Amount (in ₹ crore)
3.45
3.45
NIL
NIL
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)]
NIL
158
The Tata Power Company Limited Integrated Annual Report 2020-21 9.
(a) Details of Unspent CSR amount for the preceding three financial years:
Sl.
No.
Preceding
Financial
Year
Amount
transferred
to Unspent
CSR account
under
section 135
(6) (in ₹)
Amount
spent in the
reporting
Financial Year
(in ₹)
Amount transferred to any fund specified under
Schedule VII as per section 135(6), if any
Name
Date of
Amount
of the
transfer
(in ₹)
Fund
Amount
remaining
to be spent
in succeeding
Financial
Year
(in ₹)
------------------------------------------------------------------------NA ------------------------------------------------------------------------
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1)
Sl.
No.
(2)
Project
ID
(3)
Name
of the
Project
(4)
Financial Year
in which the
project was
commenced
(5)
Project
duration
(6)
(7)
Total
amount
allocated
for the
project
(in ₹)
Amount
spent on the
project in
the
reporting
Financial
Year
(in ₹)
(8)
Cumulative
amount
spent
at the end of
reporting
Financial
Year.
(in ₹)
(9)
Status of the
project -
Completed
/ Ongoing
------------------------------------------------------------------------NA ------------------------------------------------------------------------
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year (asset-wise details): NA
(a) Date of creation or acquisition of the capital asset(s): NA
(b) Amount of CSR spent for creation or acquisition of capital asset: NA
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address, etc: NA
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset): NA
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): NA
Praveer Sinha
CEO & Managing Director
(DIN: 01785164)
Mumbai
12th May 2021
Anjali Bansal
Chairperson, CSR Committee
(DIN: 00207746)
159
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Board's Report
Annexure - VI : DISCLOSURE OF MANAGERIAL REMUNERATION
(Ref.: Board's Report, Section 28)
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
Dr. Praveer Sinha, CEO and
Managing Director
Ratio of Director’s
remuneration to the
median remuneration
of the employees
of the Company for
the financial year
N.A.
4.71
5.05
5.05
4.67
3.83
N.A.
N.A.
5.01
50.90
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
Dr. Praveer Sinha, CEO and
Managing Director (KMP)
Mr. Ramesh N. Subramanyam,
Chief Financial Officer (KMP)
Mr. Hanoz M. Mistry,
Company Secretary (KMP)
N.A.
20.22
12.58
18.82
21.11
28.23
N.A.
N.A.
64.17
33.64
(5.57)
0.01
$ 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.
The percentage increase in the median remuneration of
employees in the financial year: (11.36%).
•
The number of permanent employees on the rolls of the
company: 2,673.
f)
increase
Average
of
in
Managers (defined as MD and ED on the Board of
your Company) was 33.64%.
remuneration
Affirmation
remuneration policy of the Company:
remuneration
that
the
is as per
the
Average percentile increase already made in the salaries of
employees other than the managerial personnel in the last
financial year, its comparison with the percentile increase
in the managerial remuneration, justification thereof and
point out if there are any exceptional circumstances for
increase in the managerial remuneration:
•
increase
in the salaries of
than managerial personnel
Average percentile
employees other
was 7%.
is affirmed that the remuneration
is as per the
It
for Directors, Key Managerial
'Remuneration Policy
Personnel and other employees' adopted by the Company.
On behalf of the Board of Directors,
Mumbai, 12th May 2021
N. Chandrasekaran
Chairman
(DIN: 00121863)
c)
d)
e)
160
The Tata Power Company Limited Integrated Annual Report 2020-21
Management Discussion & Analysis
1.
Industry Developments
Global Power Sector
The global power sector is on the cusp of a major
transformation with new energy sources and new players
entering the arena of energy supply. Nations, corporates,
individuals across the globe are rising to the cause of
climate change, and are consciously opting for greener
sources of energy, resulting
in the rising share of
renewables in the debate on power sector’s transition
portfolio mix. The COVID-19 pandemic has further
stimulated the debate on power sector’s transition from
fossil fuels to cleaner energy sources. Additionally, electric
vehicles, digitalisation, battery storage, cyber security,
big data analytics, hydrogen fuel are some of the key
emerging trends that could profoundly define the way
the global power and renewable markets operate in the
coming years.
The COVID-19 pandemic brought about unprecedented
changes in 2020 to the power sector worldwide, with
significant demand disruptions, supply chain bottlenecks,
decline in fuel prices, changes in energy consumption
profiles, asset sales and acquisitions. It imparted the worst
ever impact delivered by any crisis on the global economy
and the power sector. Global Gross Domestic Product
(GDP) posted the biggest decline of -3.3% as per IMF April
2021 report in the past 20 years and the power demand
contraction of 1% was the sharpest registered in more
than 50 years. Power demand is likely to recover slowly
from the COVID-19 disruptions, driven by developing
economies such as China and India, which have shown
growth resilience and a steady increase in power demand,
following the easing of lockdown measures. While the
extent of demand revival in 2021 remains to be seen,
the roll out of vaccines and policy support-led revival in
economic activities (6% world GDP growth projected for
2021 by IMF) create grounds for the recovery of power
demand in most countries.
With an increasing number of nations responding to
the challenge of climate change, the energy landscape
is undergoing change, with greater focus being lent to
cleaner sources of energy. More than 100 countries have
pledged carbon neutrality by 2050 and many more such
commitments are on the horizon. Similar announcements
on the corporate front have gathered pace worldwide. Be
it energy companies or those in the IT/technology space,
both utility and non-utility companies are undertaking
100% carbon free initiatives.
Falling costs of wind and solar power are making way
for increased investments in renewables that are now
the preferred mode for energy generation and sourcing.
Renewable capacity addition has beaten all previous
records, with more than 260 GW being added in 2020,
exceeding 2019 growth by 50% as per the report released
by International Renewable Energy Agency (IRENA). Share
of renewables in new capacity additions rose considerably
for the second year in a row, accounting for more than 80%
of the capacity additions, with solar and wind accounting
for 91% of the renewables. As per International Energy
Agency (IEA) World Energy Outlook 2020, renewables
are expected to overtake coal as the primary means of
producing global electricity in 2025.
While the general sentiment is against coal globally, coal
projects are unlikely to be halted overnight. The global
coal plant pipeline remains concentrated in the Asian
economies, mostly in China. Coal capacity expansion is
expected to face an overall squeeze, with global financiers
increasingly withdrawing from coal projects and global
capital focusing on Environmental, Social and Governance
(ESG) norms as an investment criterion. Even non-power
companies are not unscathed by this transformation.
The lucrative renewables market has garnered interest
among oil and gas majors as well, with many increasingly
investing in green energy, prompted by revenue
diversification, future-readiness and government
regulation on carbon emissions. Declining oil prices and
rising share of renewables in the global primary energy
mix is promoting the increased energy transition of oil and
gas companies into renewables. Many have announced
huge renewable plans while foraying into other segments
such as retail power and gas distribution and Electric
Vehicle (EV) charging.
Reduction in costs of newer technologies is helping
greater penetration of such technologies and shifting the
power profile towards more variable capacities. The same
is leading to rising flexibility needs for power systems.
Coal and gas fired power plants are currently the main
source of flexibility in many systems, with additional
contributions from hydro and nuclear. Energy storage
systems are gaining strength, as evidenced from the rising
number of new solar projects that come with battery
storage, lower costs, improved performance indices and
policy support are creating opportunities for battery
storage market. The global energy storage market grew
significantly even in the pandemic year, achieving record
installations of 5.3 GW in 2020 from 3.4 GW in 2019, led by
China, and followed by the US and Europe. It is expected
to grow substantially in the next couple of years, with the
Asia-Pacific region accounting for more than 50% of the
global market share.
EV have been in the spotlight for a while now and
are witnessing significant growth owing to growing
environmental concerns and the rising demand for
sustainable and energy-efficient transportation.
Governments across the world have introduced various
schemes to incentivize EV purchase over conventional
vehicles. Strong demand for EVs in a tough year was a
161
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world
Management Discussion & Analysis
bright spot in the automotive industry. Sales grew by
39% to 3.1 million units in 2020, compared to a 14% sales
decline in the total passenger car market in the year.
Several car manufacturers are announcing new EV targets
and this is encouraging industry participants to invest in
the EV supply chain, including large power utilities and
oil majors who are investing in EV charging infrastructure
through acquisitions. This market segment is also
attracting a lot of start-ups with new innovative charging
solutions.
is the next
Green hydrogen
level of technological
advancement that is gaining traction. This has captured
the attention of political and market players, given the
immense role it can play in energy transition. Recognising
its potential to disrupt the energy sector, some countries
have already set ambitious targets to advance their green
hydrogen strategies. The global race to develop this
nascent and costly technology gathered momentum with
2021 witnessing over 30 countries release their hydrogen
roadmaps. As per a Hydrogen Council report, there are
more than 200 large-scale projects for a combined $ 300
billion of proposed investment through 2030. Around $ 80
billion of this amount has gone into advanced planning
or has passed a final investment decision or has gone
to projects that are under construction or have been
commissioned. Scaling up of projects with the right policy
framework in place, could help in faster decline of costs,
making green hydrogen a strong contender among green
technologies.
is resulting
Decarbonisation of power systems
in
is making
decentralised power generation, which
digitalisation essential to serve varied needs. The three
Ds – Decentralisation, Decarbonisation and Digitalisation
– are driving transformation of the energy sector, creating
opportunities for new business models like Energy-as-
a-Service (EaaS), which is likely to further disrupt the
utility sector. The future of power utilities is not about
just selling energy, but also technology, analytics,
personalised services and even access to the grid. The
focus is shifting from asset-focused, centralised power
generation and its sale to consumers, to offering end-
to-end management of a customer’s energy assets and
services. Digitalisation forms the most important element
in offering such customised services, thus giving IT and
technology firms the extra edge. Given the requirements
of physical, communication and digital infrastructure, a
wide range of players can be a part of the future power
market, capitalising on their strengths and leading to
a lot of collaboration and Merger & Acquisition (M&A)
activities. Though still relatively nascent, this market is
poised to grow and diversify, especially with the advent of
EVs, smart cities and energy storage.
Indian Power Sector
India’s power sector witnessed many successes in the
recent years, including energy access being extended to
millions of households, the adoption of energy-efficient
LED lighting by most households and expansion of
renewable power sources, led by solar. However, the
COVID-19 crisis has complicated the efforts to resolve
other pressing issues that loom large across the power
value chain. Among these are reliable power supply,
the ailing financial health of Distribution Companies
(Discoms) and rising pollution levels.
The year 2020 was marked by one of the biggest health
challenges faced by the world. It impacted all segments
of the economy, and the power sector was no exception.
India’s demand for power fell significantly by 8.5% in the
first half of FY21 but picked up pace in the second half
of the fiscal, with the easing of lockdown measures. In
fact, the country recorded the highest ever peak power
utilisation of 190 GW in FY21.
India’s growing urban population, revival in economic
in the coming quarters after a sizable
activities
population gets vaccinated and its quest for affordable,
clean and reliable power provide a huge scope for
continued growth in power demand.
The coal sector is set for revival in 2021, buoyed
by
the
improving economic activities, although
government’s thrust on renewable energy sources
continues and the need for clean energy appearing to be
more pressing than in pre-COVID times. The Government
of India is focussing on renewable energy growth in
alignment with sustainability and carbon emission
reduction targets. It plans to raise renewable energy
capacity from targeted level of 175 GW in 2022 to 450 GW
by 2030. Even India’s coal behemoth, Coal India Limited
(CIL), and its largest thermal power PSU, NTPC Limited,
are diversifying into cleaner energy technologies.
Another major focus area of the government has
been increased participation of private players in the
Transmission and Distribution (T&D) space, through
the Tariff-based Competitive Bidding (TBCB) route in
transmission and PPP (Public-Private Partnership) or
franchisee models in the distribution segment in a bid
to improve performance. Distribution continues to be
the weakest link in the power value chain, which faces
challenges of high Aggregate Technical & Commercial
(AT&C) losses, insufficient tariff hikes resulting in a
widening Average Cost of Supply (ACS)–Average Revenue
Realised (ARR) gap, accumulation of regulatory assets
and cross-subsidisation. COVID-19 induced challenges
162
The Tata Power Company Limited Integrated Annual Report 2020-21
led to further deterioration in the financial position of
Discoms as the deferment of bill payments by consumers
reduced collections, thereby putting pressure on their
revenues and limiting their ability to pay the Generating
Companies (Gencos). This is further adding to the stress
in the sector. Given the importance of the segment, the
government focused on power sector reforms even
during COVID-19 with some landmark initiatives to help
Discoms overcome the challenges.
Government has over the last year moved several
regulatory and legislative changes to bring in reforms
in the sector. Some of these changes are covered in
the following section and the key highlights include
privatization of Discoms in States and Union Territories, a
special one-time liquidity infusion of ₹ 90,000 crore (that
was scaled up to ₹1.35 lakh crore), focus on consumer
rights through the Draft Electricity (Rights of Consumers)
Rules, 2020, impetus to domestic solar manufacturing
through Basic Custom Duty (BCD)
imposition and
Performance Linked Incentives (PLI) scheme, opening
up commercial mining
for private players, and
announcement of ₹3.05 trillion reform-based result
linked scheme for distribution. The success of some of
these interventions like privatisation of Odisha Discoms
will be key for setting trend in the sector.
Generation
India’s installed generation capacity stands at 382.15 GW
as on 31st March 2021, which excludes 55 GW of captive
generation capacity. Grid connected capacity addition
during FY21 was 12 GW vis-à-vis 14 GW in FY20.
Thermal Generation
Coal-based capacities still account for more than half of
India’s total installed capacity, though the share has been
consistently declining over the past ten years from 75% in
FY11 to about 55% in FY21, indicating subdued investor
interest in the sector. This is also evident in the Plant
Load Factor (PLF) of thermal plants that have witnessed a
declining trend in the last decade, falling from 75% in FY11
to 54.49% in FY21.
Renewable Generation
Installation of renewables capacity has been on the rise
from 11% share in FY11 to 25% in FY21. Several policy
initiatives by the government have provided the much-
needed boost to the sector. Favourable cost economics has
also provided impetus for the rapid increase in renewable
based capacities. The government’s push towards clean
energy has garnered interest among global investors, and
this is reflected in project tenders getting oversubscribed
amid strong participation by global investors and the
cost of solar projects dropping further, as seen in the new
record low tariff of ₹ 1.99/unit discovered in 500 MW solar
projects of the Gujarat Urja Vikas Nigam Ltd. (GUVNL).
Sustained enabling regulations for the renewables sector
are visible through various policy interventions by the
government, catering to both the demand and supply
side, such as the ‘Must Run’ status for renewables, lifting
of the tariff cap, thrust on domestic solar manufacturing,
enhancing the Pradhan Mantri Kisan Urja Suraksha evam
Utthaan Mahabhiyan (PM-KUSUM) scheme, priority sector
lending, Domestic Content Requirement (DCR) projects
and so on. However, delay in Power Purchase Agreement
(PPA) tie-ups, renegotiation/cancellation of bids, land
issues, supply chain disruptions, etc. are some of the
challenges that need to be resolved for the sector to meet
its targeted growth
INSTALLED CAPACITY (GW)
9
0
2
4
9
4
9
6
4
8
3
5
2
8
1
75
8
1
11
Coal
Gas
Nuclear
Hydro Renewables Others
FY11
FY21
(Source: MoP, GoI, CEA)
Fuel
Coal produced by CIL and its subsidiaries declined by 1%
during FY21 to 596 MT (from 602 MT in the previous fiscal),
missing its FY21 target of 660 MT. The decline is mainly
due to lower demand from power plants during the
fiscal amid reduced electricity requirement. Thermal coal
imports declined sharply by 18% due to firm prices and
high freight rates in the international market.
163
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world
Management Discussion & Analysis
GLOBAL COAL PRICE AND
INDIA’S COAL IMPORTS
)
n
t
/
D
S
U
140
120
100
80
60
40
20
0C
(
e
c
i
r
P
a
o
l
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
8
1
-
r
p
A
8
1
-
p
e
S
9
1
-
b
e
F
9
1
-
l
u
J
9
1
-
c
e
D
0
2
-
y
a
M
0
2
-
t
c
O
1
2
-
r
a
M
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 4.42 lakh Ckms and 10.25 lakh MVA respectively,
reflecting an increase of about 16,750 Ckms and 57,575
MVA over the previous year. The National Electricity Plan
(Volume II-Transmission) i.e. NEP-Trans, has been notified
to review the development of transmission system during
the 12th Plan Period, the current planning period 2017-22
and the subsequent period 2022-27.
With changing power generation mix on account of
increase in renewables, the government is emphasizing
on augmenting the transmission infrastructure to support
demand growth. In order to expedite the development of
ALL INDIA AT&C LOSS, %
.
6
9
3
2
6
1
Y
F
0
5
3
2
.
7
1
Y
F
8
2
2
2
.
8
1
Y
F
.
3
0
2
2
9
1
Y
F
.
0
1
9
1
0
2
Y
F
(Source: PFC Report on Performance of State Power Utilities 2018-19,
UDAY portal)
164
transmission lines for solar parks under Green Corridor II
(Under Green Corridor-I, Power Grid Corporation of India
Limited is responsible for strengthening transmission
transmission
networks and constructing
network for connecting renewable energy-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 TBCB.
inter-state
in
India
Distribution
The distribution sector
is going through a
transformation. The issues of AT&C losses, payables to
Gencos and overall effective management of the utility
have been affecting the performance of the sector over the
years. Discoms’ overdue to Gencos had crossed the ₹ 1 lakh
crore mark in FY21 and stood at ₹ 67,417 crore as of February
2021, indicating the stress in the sector. The government
has announced schemes and decisions towards addressing
the issues in the sector with a liquidity injection of ₹ 90,000
crore (scaled up to ₹ 1.35 lakh crore) being announced
under the COVID-19 relief package in May 2020. It also
announced the push for the privatisation of Discoms of
Union Territories (UT) and states. The Electricity Amendment
Bill under discussion also highlights several measures
planned, including delicensing the distribution business to
increase competition in the sector and improve services for
the customers. The Union Budget 2021-22 also saw a ₹3.05
trillion reform scheme for system improvement and smart
metering in the distribution sector. Effective implementation
of the proposed reforms would be key to ensuring the long
term recovery and sustenance of the sector in the country.
The past year saw the distribution utilities of Odisha
(CESU, WESCO, NESCO & SOUTHCO) entering into PPP for
improving their performance. The bids for privatisation in
UTs of Chandigarh, Dadra and Nagar Haveli and Daman
and Diu had also been floated and are in advanced stages.
Many other states and UTs are also evaluating the PPP route,
which opens the opportunity for better supply and services
for 4.5 crore customers across the country. With reform
schemes focusing on operational and financial performance
improvement, opportunities for services segment including
smart meters, smart grids, LED street lighting and advisory
services projects are also expected to get an impetus.
Power Trading
Around 133 Billion Units (BUs) of electricity were traded
in the short-term power market during FY21, as compared
to a total of 137 BUs traded during FY20. Out of this,
about 47% of the trading took place on power exchange
platforms. The trading margins were under immense
pressure due to the stiff competition amongst traders. The
market is concentrated among ~10 larger players, with the
remaining traders operating in regional pockets largely
for trading their own power.
The Tata Power Company Limited Integrated Annual Report 2020-21
At ₹ 2.819 per unit, the average clearing price for spot
markets in FY21 decreased by 6% as compared to the
previous fiscal. This decrease
largely attributable
to lower demand, primarily because of the impact of
COVID-19 in FY21 on the economy and the manufacturing
sector, and higher merchant capacity available for power
sale on exchange platforms.
is
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 issued the Electricity Amendment Bill
2021, which, inter alia, proposes to replace the process of
distribution license with the proposed Discom registration
process. This would ultimately enable consumers to choose
one from multiple Discoms. Essentially, the Electricity
Amendment Bill 2021 delicenses the distribution business,
brings in competition, the appointment of member from
law background in every commission, strengthens the
Appellate Tribunal for Electricity (APTEL) and prescribes
rights and duties of consumers.
In addition, Electricity (Rights of Consumers) Rules, 2020,
notified on 31st December 2020, establishes the rights of
consumers, including the rights of prosumers. Further, the
Rules inter alia have stringent provisions for timelines for
new connections and mandatory use of smart/prepayment
meters and so on. The State Commissions are expected to
notify the standards of performance for the distribution
licensees.
The Ministry of Power also notified the Electricity (Late
Payment Surcharge) Rules, 2021 on 22nd February 2021. In
the said Rules, late payment surcharge is linked to marginal
cost of funds-based lending rate for one year of the State
Bank of India.
On 26th February 2021, the Ministry of Power issued a letter
on the ‘Implementation of Smart pre-payment meter/pre-
payment meter’. Vide the said letter, Discoms are, inter alia,
required to provide all new connections through smart pre-
payment meters/pre-payment meters.
On 31st March 2021, the Ministry of Environment, Forest
and Climate Change (MoEFCC) issued the Environment
(Protection) Amendment Rules, 2021 to further amend
the Environment (Protection) Rules, 1986. The aforesaid
amendment specifies relaxed timelines for compliance
with the emission norms for thermal generating plants
that fall in different categories determined by a task force
constituted by the Central Pollution Control Board. Penal
provision in the form of Environmental Compensation
has been introduced if there is delay in completion of
installation of the emission control equipment.
Following are some of the important regulatory and policy
changes introduced in FY21:
Maharashtra:
•
Maharashtra Electricity Regulatory Commission (MERC)
notified the Consumer Grievance Redressal Forum &
Electricity Ombudsman Regulations, 2020, directing
the distribution licensees to establish a forum and web-
based portal for redressal of consumer grievances/
complaints. The forum shall take cognisance and
redress the grievances as per the priority order set out
in the regulations
y MERC notified the Electricity Supply Code and
Standards of Performance of Distribution Licensees
including Power Quality Regulations, 2021. As per
the said regulations, special system of supply, including
multiple source of supply for specific consumers, may be
adopted. Further, the regulations specify that the cost
of network for providing connection to an extra high
voltage consumer shall be borne by the Transmission
Licensee. The Commission vide the said regulations
has also directed that all the new connections shall be
released with smart meter or meter having the facility
of remote reading.
y MERC notified the State Grid Code, 2020 with the
aim to lay down the rules, guidelines and standards to
be followed by state entities and users of Intra-State
Transmission System (InSTS).
CERC & JSERC
•
the Multi Year Tariff
Jharkhand State Electricity Regulatory Commission
(JSERC) notified
(MYT)
Regulations, 2020, applicable for the control period
from FY22 to FY26, wherein the Hon’ble Commission
has mostly kept the financial norms like the CERC Tariff
Regulations 2019, except for few variations.
y CERC (Terms and Conditions of Tariff) (First
Amendment) Regulations, 2020.
CERC (Terms and Conditions of Tariff) (Second
Amendment) Regulations, 2021.
As envisaged in the Principal Regulations, the Central
Electricity Regulatory Commission (CERC) has amended
the Principal Regulations through First Amendment
dated 3rd February 2021, to specify the regulatory
framework including financial parameters, operational
parameters and recovery mechanism for determination
of supplementary tariff for emission control system
related to the Gencos covered under the jurisdiction of
the Commission [Section 62 projects].
The Second Amendment dated 19th February 2021 is
meant for the Genco that has integrated mines and
stipulates provisions pertaining to determination of
input price of coal or lignite from integrated mine.
165
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Management Discussion & Analysis
Coal contract of work (Ccow) license for KPC expires on 31st December 2021. The Company has already applied for extension
2x10 years. Ministry of Mines and Energy is reviewing the application. So far all relevant data pertaining to resources and
reserves, exploration, etc. has been submitted.
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
PPA/ Fixed Tariff
(Renewables)
Feed In Tariff+ Bid Driven
PPA/ Fixed Tariff (Bid/
Others)
Bilateral Agreement +Bid
Driven
Maithon, Jojobera (Unit No 2 and 3),
TPDDL-Rithala
Wind and Solar Projects (Domestic)
Jojobera (Unit 1and 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
2,694
4,684
429
246
1,980
12,808
21.7
21.0
36.6
3.3
1.9
15.5
100
In the last fiscal year, your Company had significantly expanded its footprint in power distribution business through PPP
model and is now present in the following areas:
Model
Returns
Distribution Area / Entity
No. of Customers (million)
Distribution Licensee
Regulated return on equity Mumbai Distribution
Public-Private-Partnership (PPP) Regulated + Bid conditions
TPDDL, TPCODL, TPWODL, TPSODL and TPNODL*
Distribution Franchisee (DF)
Input energy growth and
investment driven
TPADL
driven
Total
*TPNODL acquired from 1st April 2021
0.73
10.92
0.15
11.80
The Indian market continues to remain the primary focus
of business for your Company. Currently, the domestic
market accounts for more than 90% of its generation
capacity. As highlighted earlier, your Company has plans
in place to grow in the areas of renewable generation,
transmission, distribution and new and service-led
businesses.
Renewables Generation
Your Company is a leading player in the renewable
generation space, with presence across the value chain.
With the focus of the government on clean energy
transition, specifically solar-based generation, significant
(both organic
growth opportunities
and inorganic) are expected to arise in the future. Your
Company plans to increase its footprint by capitalising
on those opportunities through value-accretive projects.
It will also evaluate opportunities for growth through
in renewables
upcoming models of hybrid, round-the-clock (RTC) supply
and renewables with storage. Opportunities in the captive
space for renewable generation are also being evaluated
by your Company. With significant focus on ‘Make in India’,
your Company is also planning to expand its solar cells
and modules manufacturing capacity in the coming year
to support its expansion plan as well as the renewables
Engineering, Procurement and Construction
(EPC)
Business for DCR tenders. Your Company had leveraged
this opportunity in last year and had doubled its solar PV
manufacturing capacity to 1,100 MW of cell and modules
under Tata Power Solar Systems Limited (TPSSL).
Thermal and Hydro Generation
In line with its intent of achieving carbon neutrality
before 2050, your Company plans to limit its exposure
to coal-based projects and does not intend to expand
its existing portfolio. Your Company does not have any
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The Tata Power Company Limited Integrated Annual Report 2020-21
greenfield or brownfield expansion plans in the near term
but would continue to maintain the existing thermal and
hydro operations in a sustainable manner. Your Company
will, however, be evaluating inorganic opportunities that
might come up in hydro power generation assets. It is also
looking at opportunities in Industrial Energy Limited (IEL)
waste heat recovery (WHR) based portfolio through its
Joint Venture (JV) with Tata Steel Limited.
Additionally, your Company
is 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
and upgrading transmission infrastructure in its Mumbai
operations. In addition, it will also look for suitable
few stressed
including acquiring a
opportunities
assets through M&A. While expanding its footprint,
your Company will also look at models for keeping the
expansions debt light.
Distribution
With a view to improve the financial health of the
distribution sector in India, the government is actively
looking at adopting the PPP route
for state-run
distribution utilities. The last fiscal year saw a significant
progress towards this intent, with bids for many utilities
of states and UTs under the PPP model. Your Company
foresees a considerable number of opportunities in this
space in the near future. During the last year, your Company
acquired 4 new distribution entities in Odisha state (CESU,
WESCO, SOUTHCO and NESCO). With this, your Company
now distributes electricity in the entire state of Odisha. It
will continue to pursue similar opportunities through the
PPP route in other states and UTs to fortify its leadership
position in this space. Moreover, it will continue to explore
services business opportunities in both domestic and
international markets.
Consumer Businesses
Your Company has major plans to scale up Consumer
businesses such as rooftop solar, EV charging, solar
pumps, microgrids, energy efficiency solutions and home
automation.
It has collaborated with Original Equipment Manufacturers
(OEMs) to roll out EV charging infrastructure and aims to
expand its presence further in many cities pf India. Your
Company has also developed a robust software platform
for customers of EV charging and has released a mobile-
based application (Tata Power EZCharge) towards the
same effect. This would enable your Company to offer
value-added services to its customers. With the increase in
EV adoption, your Company plans to cover the segments
of home, workplace and captive charging (including e-Bus
charging) through different models and approaches. It
is also actively evaluating opportunities in the electric
3-wheeler and 2-wheeler charging market.
In the space of rooftop solar, your Company has presence
in more than 180 districts of India and has rolled out
differentiated value-added services with its offerings
across segments (residential, commercial and Industrial,
including corporates, owners, MSMEs, institutions and
small commercial establishments). Your Company has
recognised the opportunities arising in rooftop solar
and is developing new offerings and models to enhance
its adoption among consumers,
including financing
solutions, extending the EPC model, recurring revenue
model and other value-added offerings.
Your Company has rolled out microgrids in rural India
to provide innovative solutions for the under-served
communities and expand the global microgrid footprint.
It has installed around 161 microgrids till March 2021 and
is evaluating different approaches and models for scaling
up this business.
Your Company has
identified eight business-wide
Strategic Business Objectives (SBO) for a focused approach
towards capitalising on the opportunities. You may refer
to page number 21 of the Integrated Report for a detailed
explanation of these SBOs along with goals and action
plans to achieve these objectives.
3. Business Performance
Consolidated operations of your Company can be
categorised into four segments: Generation, Transmission
& Distribution, Renewables and Others. Report on
the performance and financial position of each of the
subsidiaries, JVs and associate companies has been
provided in Form AOC-1.
Your Company’s business performance in FY21 was
mainly impacted by lower losses in Coastal Gujarat Power
Limited (CGPL), lower financing cost due to repayment of
borrowings and stable operational performance across all
businesses. A sizable portfolio of your Company’s business
under the regulated framework provides a steady and
reliable source for its finances. Also, your Company’s
portfolio is suitably structured to capitalise on favourable
market conditions for market-linked businesses in its
portfolio while ensuring stable returns from the regulated
businesses.
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Management Discussion & Analysis
Highlights of the operational performance of key entities
are listed below:
improved by 4.2% and 0.3% respectively, through various
initiatives taken during these two years.
Renewables
Tata Power Renewable Energy Limited - TPREL
(1,246 MW)
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net Sales (` crore)
PAT (` crore)
FY21
1,645
1,190
320
FY20
1,639
1,203
183
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY21
2,329
1,025
13
FY20
2,162
975
(51)
PAT has increased mainly due to reversal of Minimum
Alternate Tax (MAT) credit in FY20 on adoption of the new
tax regime, coupled with lower debt servicing cost in FY21
on account of interest rate reset and prepayment of loans.
TPREL’s higher sales were due to addition of 56 MW
solar capacity during the year and full year of operation
of the capacity commissioned in FY21. During the year,
the company added 50 MW solar PV assets in operating
portfolio for the supply of power to captive consumers
and 6 MW of rooftop solar assets.
PAT for the year increased due to dividend income from
Walwhan Renewable Energy Limited (WREL) and lower
interest cost on account of decrease in borrowing rates.
FY20 includes one-time impact of transition to the new
tax regime.
TPREL and its subsidiaries are executing 1,314 MW solar PV
projects under long-term PPAs in Gujarat, Uttar Pradesh,
Maharashtra, Rajasthan and Jharkhand; 400 MW of this
capacity will be based out of solar parks located in Gujarat
with long-term power tie up with GUVNL, and additional
120 MW is in non-solar park in Gujarat with long-term tie
up with GUVNL. The company has also signed PPA with
Tata Power Mumbai Distribution (TPC-D) for supply of 150
MW from a project in Rajasthan. The company has signed
a 100 MW PPA each with Uttar Pradesh Power Corporation
Limited (UPPCL), Noida Power Corporation Limited (NPCL)
and Maharashtra State Electricity Distribution Company
Limited.
The commissioned capacity at the end of FY21 was 1,246
MW, TPREL has entered into an agreement with Tata
Power for the purchase of 252 MW of renewable energy
assets through a Business Transfer Agreement.
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 FY21 was 1,645 MUs,
marginally higher than 1,639 MUs achieved in FY20. In
FY21, the availability of wind and solar assets of WREL has
Tata Power Solar Systems Limited – TPSSL
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY21
5,119
208
FY20
2,141
123
TPSSL continues to demonstrate significant growth
driven by growing demand for renewable power in the
country and capabilities of the company which have been
augmented over time.
The sales from the Large Projects segment, which
contributes a major portion of sales for TPSSL, has increased
by over three (3) times as compared to the previous year.
Further, the revenue from Rooftop Solar and Products
segments increased by 56% and 30% respectively as
compared to the previous year. As a result of improved
operations, the Company has seen an increase in PAT by
approximately two (2) times as compared to the previous
year.
During the year, TPSSL commissioned 406 MW of utility-
scale solar projects out of which 356 MW was for various
third parties.
During the year, TPSSL doubled
its manufacturing
capacity to 1,100 MW of cell and modules manufacturing.
In the solar products domain, the company was declared
a market leader, with over 30,000 solar agricultural pumps
installed in 16 states, a growth of more than 180% from
the previous year.
During the financial year, TPSSL saw significant growth
in the rooftop solar domain and achieved a portfolio of
406 MW of rooftop solar projects. The company also has an
open order book of over 2,800 MW with value of around
₹ 8,700 crore as on 31st March 2021.
TP Renewable Microgrid Limited - TPRMG
Type of entity: Wholly owned subsidiary
TPRMG has been setting up microgrids in rural villages of
Bihar (six districts) and Uttar Pradesh (three districts). The
company, as of 31st March 2021, has commissioned 161
microgrids with an installed capacity of 4.83 MW, while
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The Tata Power Company Limited Integrated Annual Report 2020-21
around 40 more microgrids (1.2 MW) are in various stages
of execution. The rural consumer base of the company has
increased to 3,887 and the consumers are getting power
supply from 156 operational microgrids.
As part of the value-added services delivery for its rural
consumers, the company has launched mobile apps as
well as EMI scheme for new connections for its consumers.
Further, the company has enabled the availability of
energy-efficient appliances and Micro finance institution
(MFI)
(C&I)
for Commercial and
consumers. In yet another sustainability initiative to
enable microenterprises and farmers to save money and
safeguard environment, the company has aided migration
of consumers using diesel generator to electric power
supply from the microgrid.
Industrial
linkage
This business is a pioneering effort in meeting the energy
needs of rural villages through a viable business model.
Renewables Division on Balance Sheet of the Parent
Company (379 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
FY21
555
FY20
643
The portfolio comprises 376 MW of wind assets and 3 MW
of solar assets at Mulshi. The Company has entered into
business transfer arrangement for transfer of 349 MW wind
and solar assets to wholly-owned subsidiaries, TPREL and
Tata Power Green Energy Limited (TPGEL), effective on or
after 1st April 2021. This resulted in one-time benefit on
account of the reversal of deferred tax liability amounting to
₹ 131 crore.
Tata Power Hydros (447 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)*
FY21
1,500
FY20
1,493
*Includes sales to Company’s distribution division
Availability for the year was 98.64% which was also higher
compared to the previous year as fewer major outages
were planned during the year. Significant reduction
in Auxiliary Power Consumption (APC) was achieved
through various energy conservation measures under
sustainability initiatives.
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)
FY21
24,536
7,006
FY20
24,463
7,017
(637)
(891)
Loss in FY21 was lower as compared to FY20 mainly due to
lower fuel under-recovery on account of lower benchmark
coal price, effective coal procurement strategy and
reduction in finance cost on pre-payment of long-term
loans.
Under-recovery of fuel cost is listed below:
Particulars
Total Revenue* (` crore)
EBITDA (` crore)
Fuel under-recovery**
(in ` crore)
(in ` per kWh)
FY21
7,006
922
FY20
7,037
810
(1,019)
(0.42)
(1,066)*
(0.44)*
* Total revenue consists of Revenue from Operations and other income
** 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 (due to lower benchmark
coal price and blending) partially offset by negative fuel-
tariff escalation rate and higher forex loss pertaining to
coal and freight exposures in FY21.
CGPL is also making efforts to reduce losses through
initiatives like sourcing of low-cost coal from other
geographies and increasing blending of low calorific
value coal.
Coal & Infrastructure Companies
Your Company, through its subsidiaries, holds a 30%
stake in PT Kaltim Prima Coal (KPC) and a 26% stake in PT
Baramulti Suksessarana Tbk (BSSR), which are strategic
assets to hedge imported coal price exposure at CGPL and
form an important part of the supply chain for its coal off-
take requirements.
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Management Discussion & Analysis
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 $225 million till March 2021. Your
Company is pursuing steps to conclude this transaction.
The mining license for KPC is due for renewal in December
2021. KPC has made an application for renewal of
license and has submitted all necessary documents. The
Government of Indonesia has amended the Mining Law,
which now gives more clarity on certain conditions for
the extension. KPC is working with the Government of
Indonesia to secure the extension in accordance with the
prevailing laws.
PT Kaltim Prima Coal, Indonesia
Particulars
Coal Production (Million Tons)
Net sales* (` crore)
PAT* (` crore)
FY21
59.1
21,996
910
FY20
61.2
24,628
1,206
*Figures are on 100% basis. Your Company’s share is 30%.
The coal price realisation for the year was at $48.8/tonne
as compared to $55.22/tonne in the previous year. KPC’s
profitability was adversely affected due to 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)
FY21
10.7
2,358
219
FY20
11.7
2,936
277
*Figures are on 100% basis. Your Company’s share is 26%.
PAT is lower mainly due to lower average price realisation
at $29.7/tonne as compared to $35.1/tonne in the previous
year.
The status of the infrastructure company at Indonesia, PT
Nusa Tambang Pratama was as under:
PT Nusa Tambang Pratama, Indonesia
Particulars
Net sales* (` crore)
PAT* (` crore)
FY21
935
653
FY20
1,065
639
*Figures are on 100% basis. Your Company’s share is 30%.
170
Trust Energy Resources Pte. Limited – TERPL
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY21
1,003
608
FY20
1,086
185
PAT for FY21 includes gain from the sale of three (3) vessels
(MV Trust Agility, MV Trust Integrity and MV Trust Amity)
along with contracts owned by TERPL. Post sale of vessels,
TERPL continues to perform freight services for CGPL at an
optimised freight rate under the Unified Freight Contract.
Thermal Generation
Maithon Power Limited – MPL (1,050 MW)
Type of entity: Subsidiary (Tata Power: 74%, DVC: 26%)
Particulars
Generation Sales (MUs)
Net sales* (` crore)
PAT* (` crore)
FY21
5,819
2,503
311
FY20
6,340
2741
338
*Figures are on 100% basis. Your Company’s share is 74%.
Profit for FY21 is lower mainly due to the impact of
favourable CERC orders in the previous year.
MPL maintained its strong financial position as evident
from the ratings given by CARE and CRISIL for the long-
term facilities (CARE AA Stable & CRISL AA+) and short-
term (CRISIL A1+) bank facilities. MPL completed a railway
infrastructure project for coal transportation.
After getting in-principle approval from CERC, construction
work for setting up of the flue gas desulphurisation system
has started.
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)
FY21
2,845
298
112
FY20
2,829
301
149
*Figures are on 100% basis. Your 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
(Powerhouse #6) in Jamshedpur, inside the Tata Steel plant,
which is based on blast furnace and coke oven gas. Two
out of the three 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 Tata Power Company Limited Integrated Annual Report 2020-21
PAT for the year is lower due to one-time impact in
the previous year on reversal of deferred tax liability
amounting to ₹ 48 crore on account of the company
opting for the new tax regime from FY32 post full
utilisation of MAT credit.
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 II of the
steel plant. MoU has been signed with Tata Steel for
multiple captive projects, including Captive Power Plant
# 2, various Coke Dry Quenching (CDQ) facilities, TRT
projects, DG projects and thermal projects.
Trombay (930 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)*
FY21
4,703
FY20
5,576
*Includes sales to your Company’s distribution division.
The station achieved an availability of 92.3% in FY21
(compared to last year’s availability of 93.6%). Unit 5
overhauling was successfully completed (all three turbine
modules were overhauled). The plant had undertaken
several operational improvement measures, including
reduction in make-up losses, optimising operational
expenses and reducing store inventory etc. The lower
station generation is because Unit #8 was out of service
for 184 days for zero scheduling due to the pandemic
situation.
Jojobera (428 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
Transmission
Mumbai Transmission
The transmission assets, which are a part of the Mumbai
licence area, had a grid availability of 99.89% in FY21 as
against the MERC norm of 98%. Availability was maintained
at high levels by proactive actions taken to reduce
forced shutdowns. These included effective preventive
maintenance practices, adoption of new technology and
initiatives for condition monitoring and
digitalisation
optimisation of planned outages by judicious planning and
execution.
Particulars
Grid Availability (%)
Transmission Capacity (MVA)
FY21
99.89
10,583
FY20
99.75
9,838
Powerlinks Transmission Limited – PTL
Type of entity: Subsidiary (Tata Power: 51%, PGCIL: 49%)
(Joint Venture under Ind AS)
Particulars
Net sales* (` crore)
PAT* (` crore)
FY21
117
102
FY20
92
121
*Figures are on 100% basis. The Company’s share is 51%.
The average availability of the lines was maintained at
99.96% during FY21 (previous year availability stood at
99.97%) as against the minimum stipulated availability
of 98.50%. The current year profit after tax is lower as
compared to that of the previous year mainly due to
higher MAT credit on account of one-time impact due to
change in MAT rate from 18.5% to 15% in FY20 as per the
New Tax Ordinance.
FY21
2,523
FY20
2,681
Distribution
Mumbai Distribution
Jojobera plant achieved availability of 93% in FY21 from
the previous year level of 97%. This is mainly due to
lower offtake from Tata Steel on account of the COVID-19
pandemic. The Jojobera Division secured 5.7 lakh MT coal
from Shakti B (iii) coal linkage auction in FY21.
Haldia (120 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
FY21
614
FY20
693
Generation sales in FY21 were lower than the previous year
mainly due to lower flue gas availability from Tata Steel
coke oven plant, mainly due to lower demand of coke on
account of the COVID-19 pandemic. Further, generation
was restricted due to non-availability of short term open
access (STOA) buyer for surplus available power.
The highlights of the Mumbai Distribution business are as
follows:
Particulars
Sales (MUs)
Consumer Base (Nos.)
FY21
4,184
FY20
4,573
7,30,515
7,20,310
Mumbai Distribution has added about 10,000 customers in
FY21. However, overall sales MUs dropped during the year
when compared to last year due to ongoing pandemic.
Some key highlights of the Mumbai Distribution Business,
including certain
improve customer
experience, are:
initiatives
to
y Mumbai city witnessed a rare power blackout
during October
last year, with supply getting
disrupted for many areas of the city and attracted
lot of public attention.
three
Subsequently
formed by Central Electricity
committees were
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OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial Statements#Futureready: Empowering customers for tomorrow’s world
Management Discussion & Analysis
Authority (CEA), Government of Maharashtra and
Maharashtra Electricity Regulatory Commission
(MERC) for investigation of the grid disturbance
and recommending corrective actions to be taken.
The assessment of the committees identified that
the cause of power shutdown was mainly due to
outages of the transmission lines at MSETCL system
and dependence of Mumbai demand from outside
Mumbai Metropolitan Region (MMR) generation and
the quality of systemic response to the emergency. The
committee has recommended actions to be taken in a
time bound manner. Most of the recommendations by
various committees, which were to be completed in
short term, have been complied with by the Company.
The Company is also in the process of implementing
additional
for more precise
operations and response mechanisms.
recommendations
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 complaint
management crew.
y Installed 930 smart meters at M/s J P Elara, making it
the first residential complex in Mumbai where supply
is released through 100% smart metering system
y 1.34 lakh e-bill registered consumers as on 31st March
2021.
y Completed subsidy tendering process for the Ministry
of New and Renewable Energy (MNRE); 8 vendors
empaneled. MNRE subsidy scheme launched (made
live).
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)
FY21
8,347
7,007
428
FY20
9,051
7,888
414
In FY21, TPDDL had a registered customer base of 18.24
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 7.3% (calculation based on collection adjustment
from FY21 to FY20, considering lockdown in the last week
of March 2020) as against 7.9% last year.
TPDDL was able to reduce the System Average Interruption
Duration Index (SAIDI) to a level of 16.63 hours against
23.74 hours in the previous year. Compared to the previous
year, the performance is better by 22%.
y Smart Meter Reading and Dispatch (SMRD) app was
rolled out for meter reading, online spot billing and
collection.
TPDDL has adopted Total Quality Management (TQM)
framework for taking operational excellence to the next
level.
y Became the first power utility to launch Kaizala, in
collaboration with Microsoft, a one-stop window
for information/alert sharing, bill and meter-related
information, and
for
consumers.
complaint management
y Added another all-women Customer Relations Centre
at Ghatkopar, Mumbai, taking the total number to 4.
y Launched Know Your Electricity Consumption (KYEC)
as part of the value-added services which help
consumers monitor and analyse energy usage; made
available in intervals of 15 minutes, to help consumers
take decisions.
y Green Power Tariff communication to all High Revenue
Billing (HRB) and High Tension (HT) consumers.
y Completed installation of 2,700 smart meters in March
2021.
Average System Availability Index has improved from
99.70% to 99.80%. Data Quality Index (DQI) introduced for
improving the quality of input data for System Average
Interruption Duration
(SAIDI)/System Average
Index
Interruption Frequency Index (SAIFI), No Current Complain
(NCC), energy audit and safety.
Customer Delight Index (CDI) has moved to 96 from 94
in FY19 and Dissatisfaction Index (DSI) has improved to
0.1 from 0.5 in FY19 (reduction of 80%). This indicates
jump by one level in the band from 91-95 to 96-100 and
achievement of the target band of 96-100 in FY21.
Key initiatives undertaken by TPDDL during the year are:
y Digital Payment Index has increased by 12.4% to 77.5%
current year against 68.91% during previous year.
y 7 MW of Rooftop capacity added; ~800 new
connections for EVs added upto FY21.
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The Tata Power Company Limited Integrated Annual Report 2020-21
y Smart Grid Lab recognised as ‘In-house R&D Unit’
by Department of Scientific and Industrial Research
(DSIR)
y Implementation of Advanced Metering Infrastructure
(AMI) and roll-out Smart Meter for its customers. Upto
FY21, 2.30 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 Tata Power-TPDDL
Mobile app. Revamped TPDDL Connect App, where
consumers with Smart Meters can monitor electricity
consumption pattern.
y Launched an
interactive bill
through
WhatsApp with the feature of audio description of bill,
6 months bill history details, nearby payment avenues
along with existing offers and schemes.
service
y Launched various energy efficiency Programs like
5-star AC Replacement Scheme, Super-Efficient BLDC
Fan, LED Lighting Products which helped 55 MUs
energy Saving & 35531 MT CO2 reduction since FY-
2015.
y Under the Horizon 2020 program, 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.
y Partnered with SUN Mobility to set up a Network
of Swap Points in New Delhi to cater the growth of
two and three-wheeler EV market. It has recently
established the Battery swapping station in Azadpur,
Delhi.
y Collaborated with Nexcharge to power up India’s First
grid connected – Community Energy Storage System
(CESS) at Rani Bagh, Delhi.
TP Ajmer Distribution Limited – TPADL
Type of entity: Wholly owned subsidiary
Particulars
Distribution Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY21
461
418
0.36
FY20
483
401
1.02
TPADL, a wholly-owned subsidiary of your Company,
has been operating as a franchisee for the supply and
distribution of power in Ajmer city over the past four
years.
The total area under the franchisee is around 190 sq. km.
The total consumer base in FY21 is 1.54 lakh and total peak
demand is 93.5 MW, which decreased by 28% compared
to last year due to the COVID-19 pandemic and lockdown.
In FY21, PAT is lower mainly due to increase in AT&C loss
from 9.96% in FY20 to 10.2% in FY21 due to the COVID-19
pandemic and lockdown.
For enhancing customer-centricity and reliability, various
initiatives were implemented, resulting in improvement
in business performance. This led to reduced customer
complaints by 10.71% compared to the previous year,
zero-meter faulty pendency within 30 days, reduction in
provisional billing from 1.81% in FY20 to 1.59% in FY21,
increase in digital payment from 33.4% in FY20 to 49.0%
in FY21. The average restoration time of tripping also
improved from 4.20 minutes in FY20 to 3.1 minutes in FY21
(30% reduction).
Acquisition of Odisha Discoms
During the year, your Company acquired a 51% stake
in TP Central Odisha Distribution Limited (TPCODL), TP
Western Odisha Distribution Limited (TPWODL) and TP
Southern Odisha Distribution Limited (TPSODL) as a
licensee to carry out the function of distribution and retail
supply of electricity covering the distribution circles of
central, western and southern Odisha for a period of 25
years effective from 1st June 2020, 1st January 2021 and
1st January 2021 respectively, thereby adding around 7
million customers in its portfolio.
Additionally, in April 2021, your Company has acquired
51% stake in TP Northern Odisha Distribution Limited
(TPNODL) as a licensee to carry out the function of
distribution and retail supply of electricity covering the
distribution circles of Balasore, Bhadrak, Baripada, Jajpur
and Keonjhar in the state of Odisha for a period of 25 years
effective from 1st April 2021. This added a further 1.91
million to your Company’s customer base.
Other Businesses
Services
In FY21, the Services division provided O&M management
services for 1,980 MW capacity, project management
services for 3,150 MW, corporate management services
for 1,425 MW and asset management services for 4 MW
of wind assets. In addition, the division also provided
advisory services for O&M, asset management systems
and other services to various clients with total capacity of
9,818 MW.
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Management Discussion & Analysis
Tata Power Trading Company Limited – TPTCL
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY21
10,626
265
33
FY20
10,155
248
41
TPTCL’s sales volumes are better than last year despite
the COVID-19 pandemic. However, PAT is lower compared
to last year owing to shrinking trading margins and loss
from the renewable assets shutdown due to COVID-19.
Also, last year, PAT was higher on account of lower tax
expenses benefit that followed from shifting to the
new tax regime in the current year. There is significant
improvement in the working capital cycle and efficient
receivable management, resulting in lower finance costs.
The Company has repaid all its long-term borrowings and
can be termed as a debt free company.
impact
Consumer Businesses- EV Charging
Your Company has made a significant
in
developing EV ecosystem and encouraging EV adoption
in the country. Your Company is committed to playing a
key role along with other stakeholders in achieving the
national goal of transition to electric-mobility. Tata Power
partnered with Tata Motors Limited, Morris Garages India
Limited and Jaguar Land Rover for developing EV charging
infrastructure for their customers and dealers and
installed 532 charging points across the country, including
those for e-buses used by multiple state transport utilities.
During the year, your Company rolled out Version 2.0 of
its software platform and mobile app that plays a crucial
role in 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
92 cities and various key highways 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.
Consumer Businesses- Home Automation
Your Company has developed an
IoT based home
automation solution and introduced home automation
products as a part of its Smart Energy Management Tool.
The purpose is to encourage customers to implement
efficient and cost-effective home automation solutions
to manage their electricity usage. These products enable
customers to monitor, operate and schedule any kind of
home appliances such as AC, geyser, light and fan from
anywhere through EZ Home app and can also be operated
through voice-enabled devices. The Tata Power EZ Home
products have been launched in six cities – Delhi, Mumbai,
Pune, Bengaluru, Bhubaneswar and Surat through rooftop
solar channel partners. In addition, we are also planning to
sell our home automation products through e-commerce
platforms and modern retail stores.
International Businesses
Dagachhu Hydro Power Corporation Limited – DHPC
(126 MW)
Type of entity: Associate (Tata Power 26%, DGPC &
Affiliates: 74%)
Particulars
Generation Sales (MUs)
Net sales* (` crore)
PAT* (` crore)
FY21
FY20
536
181
65
513
143
(43)
*Figures are on 100% basis. Your Company’s share is 26%.
Adjaristsqali Georgia LLC - AGL
Type of entity: Joint Venture (Tata Power through
TPIPL):50%, Clean Energy Invest: 50%
AGL has developed a 187 MW hydropower project
(Shuakhevi and Skhalta projects) on the Adjaristsqali River
and its tributaries in Georgia. This is one of the largest
infrastructure investments in Georgia. After restoration
work at the tunnels, both the 89 MW units of Shuakhevi
HPP have been tested and re-commissioned and have
commenced commercial operations in March 2020.
Further, the company concluded its negotiation with
the Government of Georgia for a 15-year PPA for power
generated from the Shuakhevi project.
The 9 MW Skhalta HPP, which is also a component of the
overall project, was commissioned in March 2021 and PPA
for this plant has also been executed for 15 years.
The company also negotiated a restructuring package
with the project lenders to sustain the viability of the
project.
Digital Initiatives
is
Your Company
leveraging digital
focusing on
technologies and solutions across business segments
to improve operational efficiency, enhance customer
experience and better customer service, create competitive
differentiation and support business growth. Tata Power
Digital & IT service has aligned with the accepted global
benchmarks with its sustained certification for Integrated
Management System (IMS) under ISO 27001:2013 and ISO
9001:2015.
Some of the key initiatives across business/functions
during the year are as follows:
174
The Tata Power Company Limited Integrated Annual Report 2020-21
Initiatives to enhance customer experience
y Customer portal enabled with live webchat facility by
interactive chatbots.
y Availability of hourly, daily and monthly consumption
graphs, peer consumption comparison, alerts for
consumption slab crossover and increase in daily
consumption etc. by Smart Meter Analytics.
y Energy calculator and bill calculations for customers on
portal during the lockdown period.
y Deployment of customer meter read upload feature on
customer portal and mobile app.
y Enabling customers on portal to opt for instalment
payment during the lockdown period.
y Tata Power rewards application for customers to view
and redeem their reward points.
y Automation of process related to Consumer Grievance
Redressal Forum and Electricity Ombudsman made
available on customer portal.
y Migrating customers from physical bill to e-bill by
assuring them an alternative option on customer portal
to register request for duplicate bill.
y DSM (Demand side management) green initiative
campaigns for energy-efficient appliances.
Initiatives to enhance employee productivity,
experience and learning
y Implementation of chatbot for quick online assistance
to employees.
y Introduction of employee health management portal
for employee well-being.
y Implementation of
‘Knowledge Management’ and
‘Achievers’ portals to enhance employee engagement.
y Implementation of employee facing applications like
‘Manager Connect’, ‘COVID-19 Declaration Form’ to
connect employees and managers during times of
pandemic.
y Implementation of
the onboarding portal
for
enhancing new joiners’ experience and enhance brand
image. Enhancing HR department productivity by
automating the entire joining process.
y Adoption of digital event platform to successfully
conduct E-AGM, strategy meet, Board Meetings and
various other business initiatives.
Initiative for business growth
y New features introduced in EV platform like Radio
Frequency Identification (RFID) based charging, switch
profile facility, anchor charging, additional payment
avenues like Billdesk/Tata Power Account, charge by
units/amount/time/state of charge etc.
y Launched mobile app and chatbot for rooftop solar
campaign.
y Tata Power Home Automation solutions with mobile
app and consumption analytics launched for customers.
y Dealers’ management: Implementation of Leads to
Opportunity to enhance business growth.
Initiatives to enhance Operational Efficiency (Asset
performance and digitisation of processes)
y SAP implementation for TPCODL to enhance business
processes in terms of productivity, better inventory
management, effective human resource management,
etc.
y Complete life cycle management of coal supply chain
process from coal sourcing, coal handling, inventory,
quality and final consumption by deployment of
different new-age IT analytical applications in thermal
generation plants.
y Introduction of hybrid infrastructure for smart meter
and unified Personal Identifier (PI) with new Human-
Computer
IPV6
Network protocol to improve agility, reliability and
security of the infrastructure.
Interaction (HCI) technology and
y Improved IT-OT integration by enhancing the perimeter
firewall under unified PI project at all generation plants.
y Automated asset management process to achieve
95% asset accuracy with digitalised asset registered by
integrating with Security Operation Centre (SOC).
y Deployment of
Intelligent Operational Excellence
Centre (i-OEC) tools - Real-time monitoring dashboards
and visualisation of auxiliary power consumption.
y Virtual forecasting for change overload prediction for
Mumbai Distribution.
y Real time monitoring and predictive analytics for
improvement in availability and performance of solar
sites.
y Power manager: Real time power management product
in collaboration with power system control centre.
y Successfully delivered efficient end-user support
Awards/recognition
during COVID-19 WFH scenario.
y IT helpdesk continues to service 24/7 even when WFH,
leveraging remote infrastructure management.
y Your Company has won the SAP ACE Award for the
year 2020 for successfully deploying AI-ML based email
automation model where machine identifies complaint
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Management Discussion & Analysis
category and customer sentiments, which helps in
prioritising the response.
Transmission Charges
(` in crore)
y Your Company has won the ISGF Innovation Gold
Award for Innovative EV Design and EV/EVSE Rollouts
of the year 2021.
4. Financial Performance – Standalone
Your Company recorded a profit after tax of ₹ 1,107 crore
during the financial year ended 31st March 2021 (PAT was
₹ 148.12 crore in FY20). Both the basic and the diluted
earnings per share were at ₹ 2.49 for FY21.
The analysis of major items of the Standalone Financial
Statements is shown below:
Revenue
Particulars
Revenue from Operations
Regulatory Deferral Balances
including deferred tax
recoverable/(payable)
Total
(` in crore)
FY21
6,180
300
FY20 Change
7,726
(1,546)
(651)
951
%
Change
(20)
146
6,480
7,075
(595)
(8)
The decrease in revenue is mainly due to lower generation
and sales on account of lower demand from procurers
and customers due to the COVID-19 pandemic.
Other Income
Particulars
Interest Income
Dividend Income
Gain/(Loss) on Investments
Other Non-operating Income
Total
FY21
FY20 Change
177
996
17
59
1,249
120
369
22
72
583
(` in crore)
%
Change
48
170
(23)
(18)
57
627
(5)
(13)
666
114
Particulars
FY21
FY20 Change
%
Change
Transmission Charges
258
214
44
21
Transmission charges were lower in Mumbai Regulated
Business on account of MYT order issued by MERC.
Employee Benefit Expenses
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Employee benefit expenses
649
611
38
6
Employee Benefit Expenses are higher mainly due to
normal increment and impact of reversal of performance
pay provision in the previous year offset by reduction in
retiral provisions on account of transfer of employees to
Odisha Discoms acquisition during the year.
Finance Costs
Particulars
Finance Costs
(` in crore)
FY21
FY20 Change
%
Change
1,519
1,510
9
1
Finance Costs were higher mainly due to increase in
borrowings to meet the fund requirement of the subsidiary
company. Your Company has earned incremental interest
income on loan given to subsidiary company amounting
to ₹ 106 crore.
Depreciation and Amortisation
Particulars
Depreciation and
Amortisation
(` in crore)
FY21
FY20 Change
%
Change
669
686
(17)
(2)
The increase in Other Income is mainly due to higher
dividend income from foreign subsidiary and higher
interest income from loans given to subsidiaries.
Depreciation has decreased mainly due to reduction in
depreciation rate for winds assets being offset by the
capitalisation during the year.
Cost of Power Purchased and Cost of Fuel
Operations and Other Expenses
(` in crore)
(` in crore)
Particulars
FY21
FY20 Change
Cost of Power Purchased
504
458
46
Cost of Fuel
2,186
2,766
(580)
%
Change
10
(21)
Cost of fuel was lower mainly due to lower generation and
lower fuel price.
Particulars
FY21
FY20 Change
%
Change
Repairs and maintenance
Others
Total
329
437
766
312
445
757
17
(8)
9
5
(2)
1
Repairs and Maintenance Expenses are higher mainly due
to generator replacement during the scheduled outage.
Other Expenses are lower mainly due to the reduction
in rates and taxes and forex gain offset by increase in
176
The Tata Power Company Limited Integrated Annual Report 2020-21
the provision for doubtful debts, consultancy fees and
insurance expenses.
Exceptional Items – Continued Operation
(` in crore)
Particulars
FY21
FY20 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)
Total
Nil
235
(235)
(100)
(109)
Nil
(276)
(265)
167
265
61
100
(109)
(306)
197
64
Standby Litigation
In the previous year, MERC vide its order dated 30th March
2020, allowed the recovery of part of the total standby
litigation amount from consumers. During the year, MERC
vide its order dated 21st December 2020, revised its earlier
order and disallowed the recovery of said standby charges.
Consequently, your Company has recognised an expense
of ₹ 109 crore (including carrying cost) and disclosed it as
an exceptional item.
Exceptional Items- Discontinued Operation
(Strategic Engineering Division)
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Impairment Loss on
Remeasurement to Fair Value
(160)
(361)
201
57
During the year, the Company completed the sale of its
Strategic Engineering Division (SED) to Tata Advanced
Systems Ltd. (TASL) and received upfront consideration of
₹ 597 crore (net of borrowings of ₹ 537 crore transferred
to TASL after certain adjustment as specified in the
scheme (‘Contingent Consideration’). During the year,
your Company reassessed the fair value of the Contingent
Consideration receivable and recognised an additional
impairment loss of ₹ 160 crore.
Tax Expenses for Continued Operations
Particulars
Current Tax
Deferred Tax
Deferred Tax relating to
earlier Year
(` in crore)
FY21
FY20 Change
%
Change
205
(104)
Nil
19
73
(25)
186
(177)
25
979
(243)
100
Total
101
(208)
309
(149)
Particulars
FY21
FY20 Change
%
Change
(` in crore)
Remeasurement of deferred
tax on account of new tax
regime (net)
Nil
(275)
275
100
Total
101
(208)
309
(149)
Current tax is higher mainly due to higher dividend
received from the foreign subsidiary.
Deferred Tax
During the year, your Company entered into a Business
Transfer Agreement with TPREL and TPGEL, wholly-
owned subsidiaries, for the transfer of renewable assets
(forming part of renewable segment) as a ‘going concern’
on a slump sale basis effective on or after 1st April 2021.
Consequently, as per the requirement of Ind AS 12,
your Company has reassessed its deferred tax balances
including its unrecognised deferred tax assets on capital
losses and has recognised gain of ₹ 131 crore.
Tax Expenses for Discontinued Operations
Particulars
Current Tax
Deferred Tax
Total
(` in crore)
FY21
FY20 Change
%
Change
(101)
(72)
(173)
Nil
(32)
(32)
(101)
(40)
(100)
(125)
(141)
(436)
During the year, your Company completed sale of its SED
to TASL. Consequently, your Company has recognised
current tax credit by deduction for impairment loss in
MAT calculation and reversal of deferred tax on account of
difference between the written down value as per books
and as per Income-tax Act.
Property, Plant and Equipment, Investment
Property & Intangible Assets
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Property, plant and
equipment
Intangible Assets
Capital Work-in-Progress
Total
8,201
7,974
227
3
55
286
62
403
8,542
8,439
(7)
(117)
103
(11)
(29)
1
The above assets
increased mainly due to higher
capitalisation offset by depreciation and amortisation for
FY21.
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Management Discussion & Analysis
Non-Current Investments
Finance Lease Receivable
Particulars
Investment in Subsidiary, JV
and Associate
Statutory Investments
Others
Total
(` in crore)
FY21
FY20 Change
25,524 20,743
4,781
168
437
168
416
Nil
21
26,129 21,327
4,802
%
Change
23
Nil
5
23
Investments
increased mainly due
Non-current
to
infusion of additional investments in CGPL for repayment
of external loans and acquisition of three Discoms in
Odisha, namely TP Central Odisha Distribution Limited,
TP Southern Odisha Distribution Limited and TP Western
Odisha Distribution Limited during the year.
Current Investments
Particulars
FY21
FY20 Change
%
Change
Mutual Funds (Unquoted)
Total
240
240
20
20
220
220
1100
1100
(` in crore)
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
530
37
567
553
32
585
(23)
5
(18)
%
Change
(4)
16
(3)
Finance Lease Receivable reduced due to recovery of
lease rentals during the year.
Other Financial Assets
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
%
Change
620
120
740
223
236
459
397
(116)
281
178
(49)
61
Other Financial Assets increased mainly due to higher
receivable from sale of SED business offset by decrease
in recoverable from consumers in the Mumbai Regulated
Business.
Current Investment is higher mainly due to higher
investment in mutual funds during the year.
Other Assets
Trade Receivables
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
Nil
911
911
Nil
1,109
1,109
Nil
(198)
(198)
%
Change
Nil
(18)
(18)
Decrease in Trade Receivables is mainly due to recovery
of dues from BEST in Mumbai Operations and from
TANGEDCO for wind farms.
Loans
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
490
1,524
2,014
42
550
592
448
974
1,422
%
Change
1,064
177
240
Increase in loans is mainly due to higher loans given to
related parties.
178
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
1,180
1,010
192
146
1,372
1,156
170
46
216
%
Change
17
31
19
increased mainly due to
Other Assets
recoverable
from consumers
Business and increase in pre-paid expenses.
in
in Mumbai Regulated
increase
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)
FY21
FY20 Change
%
Change
302
9
454
23
9
Nil
302
9
298
23
Nil
Nil
156
Nil
Nil
Nil
52
Nil
127
(118)
1,880
(1,880)
(93)
(100)
Total
797
2,639 (1,842)
(70)
Assets held for sale reduced due to completion of the sale
of SED to TASL and receipt of reimbursement of expenses
for Vikhroli Transmission lines from MERC.
The Tata Power Company Limited Integrated Annual Report 2020-21
Liability Classified as Held for Sale
Lease Liability
Total Equity
(` in crore)
Particulars
Non-current
Current
%
Change
(Less): Current Maturity of
Non-Current Borrowings
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Liability of Discontinued
Operations
Other Liabilities
Total
Nil
1,032
(1,032)
(100)
114
114
4
110
2,572
1,036
(922)
(89)
Liability held for sale has reduced mainly due to
completion of the sale of SED to TASL.
Regulatory Deferral Account – Asset/ (Liability)
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Regulatory Deferral – Asset
Less: Regulatory Deferral –
Liability
574
Nil
258
Nil
316
Nil
122
Nil
Total
574
258
316
122
Regulatory Deferral Assets (Net) pertains to regulatory
receivables in the Mumbai Distribution Business. The
same has increased mainly due to lower sales volume on
account of the COVID-19 pandemic.
Particulars
Equity Share Capital
Unsecured Perpetual
Securities
Other Equity
Total
FY21
FY20 Change
320
271
1,500
1,500
49
Nil
16,559 13,491
3,068
18,379 15,262
3,117
18
Nil
23
20
Total Equity has increased mainly due to allotment of
equity shares to Tata Sons Private Limited on a preferential
basis, amounting to ₹ 2,600 crore.
Borrowings
Particulars
Non-Current
Current
Current Maturity of Non-
Current
Total
(` in crore)
FY21
FY20 Change
13,168
5,596
1,788
9,826
6,212
1,764
3,342
(616)
24
%
Change
34
(10)
1
20,552 17,802
2,750
15
increased mainly due to
issue of Non-
Borrowing
Convertible Debentures, offset by the repayment of
commercial papers.
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
%
Change
210
27
237
237
42
279
(27)
(15)
(42)
(12)
(36)
(15)
Lease Liability decreased mainly due to payment of lease
rent during the year.
Trade Payables
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
Nil
Nil
1,137
1,002
1,137
1,002
Nil
135
135
%
Change
Nil
13
13
Trade payable increased mainly on account of payable for
fuel in the Mumbai Regulated Business.
Other Financial Liabilities
(` in crore)
FY21
FY20 Change
12
15
3,043
2,622
(1,788)
(1,764)
(3)
421
(24)
%
Change
(17)
16
(1)
Total
1,267
873
394
45
Other Financial Liabilities increased mainly due to increase
in fuel adjustment charges payable to the consumers in
Mumbai Distribution Business, repayment of standby
charges recovered from consumers as per MERC order and
higher interest accrued but not due on borrowings.
Other Liabilities
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
156
472
628
161
503
664
(5)
(31)
(36)
%
Change
(3)
(6)
(5)
Other Liabilities decreased mainly due to reduction in
statutory liabilities and liability towards consumers.
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Management Discussion & Analysis
Provisions
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
%
Change
261
25
286
222
62
284
39
(37)
2
17
(59)
1
No major movement in Provisions during the year.
Tax Liability/(Assets)
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Current Tax Liability
Deferred Tax Liability (Net)
(Less): Current Tax Assets
Total
133
135
(135)
133
108
307
(135)
280
25
(172)
Nil
(147)
24
(56)
Nil
(32)
During the year, your Company entered into a Business
Transfer Agreement with TPREL and TPGEL, wholly-
owned subsidiaries, for the transfer of renewable assets
(forming part of renewable segment) as a ‘going concern’
on a slump sale basis effective on or after 1st April 2021.
Consequently, as per the requirement of Ind AS 1, your
Company reassessed its deferred tax balances including
its unrecognised deferred tax assets on capital losses and
has recognised gain of ₹ 131 crore. This resulted in the
reduction in the Net Tax Liability during the year.
5. Financial Performance – Consolidated
(` in crore)
Particulars
Total Income*
FY21
FY20 Change
33,518 29,510
4,008
Depreciation & Amortisation
Finance Costs
2,745
4,010
PBT before Exceptional item 2,096
Exceptional Item
Profit Before Taxes
Profit for the year
2,634
4,494
2,142
226
(109)
1,987
2,368
1,439
1,316
%
Change
14
4
(11)
2
(148)
(16)
9%
111
(484)
46
(335)
(381)
122
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 the new
tax regime.
Property, Plant and Equipment, Investment
Property & Intangible Assets
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Property, plant and
Equipment
Intangible Assets
Capital Work-in-Progress
Total
48,749 44,663
4,086
9
1,346
3,600
1,362
1,612
(16)
1,988
53,695 47,637
6,058
(1)
123
13
The above assets
acquisition of
capitalisation in TPDDL and Mumbai Regulated Business.
increased mainly on account of
increased
three Odisha Discoms,
Goodwill
Particulars
Goodwill
(` in crore)
FY21
FY20 Change
%
Change
1,795
1,642
153
9
Goodwill increased on account of acquisition of three
Odisha Discoms during the year.
Non-Current Investments
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Investments in Joint Ventures
& Associates
Statutory Investments
Others
Total
11,921 13,203
(1,282)
(10)
168
561
168
464
Nil
97
12,650 13,835 (1,185)
Nil
21
9
Decrease in Non-current investment is mainly due to
higher dividend declared by the foreign joint venture
companies.
*Includes Regulatory Income/(Expenses)
y Total Income increased primarily due to acquisition
of three Odisha Discoms and execution of solar EPC
projects.
Current Investments
Particulars
FY21
FY20 Change
%
Change
(` in crore)
y Depreciation increased primarily due to increased
Statutory Investments
capitalisation.
Investments in Mutual Funds
y Finance Costs were lower mainly due to repayment of
Total
Nil
500
500
Nil
700
700
Nil
(200)
(200)
Nil
(29)
(29)
loans and reduction in interest rate.
y Exceptional items in FY21 included disallowance of
recovery of standby charges by MERC.
Current Investments are lower mainly due to lower
investment in mutual fund in WREL, TPDDL and Af-
taab Investment Company Limited offset by increase in
investment by Tata Power.
180
The Tata Power Company Limited Integrated Annual Report 2020-21
Trade Receivables
Other Assets
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
605
30
5,001
4,426
575
575
5,606
4,456
1,150
%
Change
1,917
13
26
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
1,465
1,185
917
770
2,382
1,955
280
147
427
%
Change
24
19
22
Increase in Trade Receivables was mainly due to increase
in receivable in TPSSL on account of execution of solar EPC
projects during March 2021.
Loans
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
%
Change
58
31
89
81
33
114
(23)
(2)
(25)
(28)
(7)
(22)
Decrease in loan is mainly due to write-off of security
deposit paid for Russian Coal Mine project.
Finance Lease Receivable
Non-current Assets increased mainly due to increase
in recoverable from consumers in Mumbai Regulated
Business and increase in capital advance in CGPL and
MPL due to Flue Gas Desulphurisation system (FGD)
projects. Current Assets increased mainly due to increase
in advances to vendors on acquisition of three Orissa
Discoms and higher pre-paid expenses in Tata Power.
Assets/(Liability) Classified as Held For Sale
(` in crore)
Particulars
FY21
FY20 Change
%
Change
Assets classified as held for
sale
(Less): Liability classified as
held for sale
3,047
6,253
(3,206)
(51)
(140)
(1,063)
923
87
(` in crore)
Total (Net)
2,907
5,190 (2,283)
(44)
Particulars
Non-current
Current
Total
FY21
FY20 Change
599
41
640
589
33
622
10
8
18
%
Change
2
25
3
Assets/(Liability) classified as held for sale decreased
mainly on account of completion of the sale of SED to TASL
and receipt of reimbursement of expenses for Vikhroli
Transmission lines from MERC.
Finance Lease Receivable increased due to reduction in
unearned finance income during the year.
Regulatory Deferral Account – Asset/ (Liability)
(` in crore)
Other Financial Assets
Particulars
FY21
FY20 Change
%
Change
(` in crore)
Regulatory Deferral – Asset
6,478
5,480
Particulars
Non-current
Current
Total
FY21
FY20 Change
1,577
579
998
310
1,412
(1,102)
1,887
1,991
(104)
%
Change
173
(78)
(5)
Non-current Financial Assets increased mainly due to
increase in deposit with maturity more than 12 months
on account of acquisition of Odisha Discoms and increase
in receivable from sale of SED division of Tata Power.
Current Financial assets decreased mainly as previous year
included receivable on sale of investment in Cennergi and
fair valuation gain on derivative contracts.
Less: Regulatory Deferral –
Liability
Total Regulatory Deferral
– Asset (Net)
(61)
Nil
998
(61)
18
(100)
6,417
5,480
937
17
Regulatory Deferral Assets (Net) pertains to regulatory
receivables in TPDDL, Odisha Discoms and Mumbai
Distribution Business. This has increased mainly due to
lower sales volume on account of the COVID-19 pandemic
and acquisition of three Odisha Discoms during the year.
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Management Discussion & Analysis
Total Equity
Trade Payables
Particulars
Equity Share Capital
Unsecured Perpetual
Securities
Other Equity
Total
(` in crore)
FY21
FY20 Change
320
271
1,500
1,500
49
Nil
20,503 17,795
2,708
22,323 19,566
2,757
%
Change
18
Nil
15
14
Total Equity of your Company has increased mainly due to
allotment of equity shares to Tata Sons Private Limited on
a preferential basis amounting to ₹ 2,600 crore.
Borrowings
Particulars
Non-Current
Current
Current maturity of Non-
Current
(` in crore)
FY21
FY20 Change
30,045 32,695
(2,650)
8,436 11,844
(3,408)
4,690
3,837
853
%
Change
(8)
(29)
22
Total
43,171 48,376 (5,205)
(11)
Decrease in borrowing is mainly due to repayment of
loans in CGPL and reduction in loan in lieu of dividend
from foreign joint venture.
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
17
Nil
17
7,120
5,095
2,025
7,137
5,095
2,042
%
Change
100
40
40
Trade Payable increased mainly in TPSSL on account of
payable to vendors for execution of solar EPC projects.
Other Financial Liabilities
Particulars
Non-current
Current
(Less): Current maturity of
Non- Current Borrowings
(` in crore)
FY21
FY20 Change
1,391
722
669
12,296
7,503
4,793
(4,690)
(3,837)
(853)
%
Change
93
64
22
Total
8,997
4,388
4,609
105
Other Financial Liabilities have increased mainly due to
acquisition of three Odisha Discoms, advance received
from sale of investments in Bhira and TERPL, additional
suppliers’ credit in CGPL, increase in fuel adjustment
charges payable to the consumers in Mumbai Distribution
Business and repayment of standby charges recovered
from consumers as per MERC order.
(` in crore)
Other Liabilities
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
6,218
2,052
2,085
1,453
4,133
599
8,270
3,538
4,732
%
Change
198
41
134
Other Liabilities increased mainly due to acquisition of
three Orissa Discoms, increase in advance from customers
in TPSSL and increase in statutory liabilities in Tata Power.
Lease Liability
Particulars
Non-Current
Current
Total
FY21
FY20 Change
3,142
3,180
395
380
3,537
3,560
(38)
15
(23)
%
Change
(1)
4
(1)
Lease Liability decreased mainly due to payment of lease
rent during the year.
182
The Tata Power Company Limited Integrated Annual Report 2020-21
During the year, your Company entered into a Business
Transfer Agreement with TPREL and TPGEL, wholly-
owned subsidiaries, for transfer of renewable assets
(forming part of renewable segment) as a ‘going concern’
on a slump sale basis effective on or after 1st April 2021.
Consequently, as per the requirement of Ind AS 12,
your Company has reassessed its deferred tax balances
including its unrecognised deferred tax assets on capital
losses and has recognised a gain of ₹ 131 crore. In addition,
MPL and TPDDL has also reversed the deferred tax liability
earlier recognised. These have led to reduction in the Net
Tax Liability during the year.
Provisions
Particulars
Non-current
Current
Total
(` in crore)
FY21
FY20 Change
840
270
1,110
407
116
523
433
154
587
%
Change
106
132
112
Provision increased mainly due to the acquisition of three
Odisha Discoms during the year.
Tax Liabilities /(Assets)
Particulars
Non-Current Tax Liability
Current Tax Liability
Deferred Tax Liabilities (Net)
(Less): Non-Current Tax
Assets
(Less): Deferred Tax Assets
Total (Net)
(` in crore)
FY21
FY20 Change
3
198
976
3
129
Nil
69
1,174
(198)
(328)
(342)
14
(184)
665
(74)
890
(110)
225
%
Change
Nil
53
(17)
(4)
148
(25)
183
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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.”
- Jamsetji N. Tata
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.
This philosophy is reflected and practised through the Tata Code
of Conduct (TCoC), the Tata Business Excellence Model (TBEM),
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 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 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:
Table 1
Material Aspect
Avoidance
of conflict of
interest
Company’s Approach
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 the Company’s prior written approval. For MD and EDs, such approval must be obtained from the Board.
Board independence
and minority
shareholders’
interests
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.
184
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
Material Aspect
Values, Ethics and
compliance
Company’s Approach
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 of Directors oversees compliance to internal
policies and external regulations.
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 or 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 2021 is as under:
As on 31st March 2021, 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 10 committees or acted as chairperson of more than 5 committees (being
Audit Committee and Stakeholders Relationship Committee, as per Regulation 26(1) of the Listing Regulations) across all the
public limited companies in which he/she is a Director. The necessary disclosures regarding committee positions have been
made by the Directors.
All IDs of the Company have been appointed as per the provisions of the Companies Act, 2013 (the Act) and Listing Regulations.
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. Eight 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 5th May 2020, 19th May 2020, 2nd July 2020, 12th August 2020, 10th September 2020,
10th November 2020, 4th February 2021 and 10th March 2021. Due to exceptional circumstances caused by the COVID
- 19 pandemic and consequent relaxations granted by MCA and SEBI, all Board meetings in FY21 were held through
Video Conferencing.
v. There are no inter-se relationships between the Board members.
185
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vi. The details of each member of the Board as on 31st March 2021 and their attendance at Board Meetings during the
year and 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
FY21
Whether
attended
last AGM
held on
30th July
2020
8
Yes
No. of other
Directorships*
No. of
Committee
positions held**
No. of
shares
held in the
Company
Directorship in other
listed entities
including debt listed
(Category of Directorship)
Table 2
Chair-
person
6
Member Chair-
person
0
0
Member
0
7,00,000
Tata Consultancy Services
Limited @
Tata Steel Limited @
Tata Motors Limited @
The Indian Hotels Company
Limited @
Tata Consumer Products Limited @
(formerly Tata Global Beverages
Limited)
Tata Chemicals Limited @
2. Ms. Anjali Bansal
DIN: 00207746
Independent,
Non-Executive
3. Ms. Vibha Padalkar
DIN: 01682810
4. Mr. Sanjay V.
Bhandarkar
DIN: 01260274
Independent,
Non-Executive
Independent,
Non-Executive
5. Mr. K. M. Chandrasekhar
DIN: 06466854
Independent,
Non-Executive
6. Mr. Hemant Bhargava
(Nominee of Life
Insurance Corporation
of India (LIC) as an
equity investor)
DIN: 01922717
7. Mr. Saurabh Agrawal
DIN: 02144558
Non-Independent
Non-Executive
Non-Independent
Non-Executive
8
Yes
0
7
0
3
Nil
Apollo Tyres Limited #
8
7
8
8
8
Yes
Yes
Yes
Yes
0
0
0
0
3
7
7
3
1
4
0
0
2
4
4
1
Voltas Limited #
Piramal Enterprises Limited #
Siemens Limited #
Tata Power Renewable Energy
Limited (Debt Listed) #
Nil
HDFC Life Insurance Company
Limited (MD & CEO)
16,262
(As a joint
holder)
Nil
Nil
HDFC Asset Management
Company Limited #
S Chand and Company Limited #
Walwhan Renewable Energy
Limited (Debt Listed) #
Tata Power Renewable Energy
Limited (Debt Listed) #
Tata Projects Limited
(Debt Listed) #
Coastal Gujarat Power Limited
(Debt Listed) #
Voltas Limited ^
Larsen & Toubro Limited ^
ITC Limited ^
Yes
4
2
0
2
Nil
Tata Steel Limited @
Voltas Limited @
Tata AIG General Insurance
Company Limited
(Debt Listed) @
Tata Capital Limited
(Debt Listed) @
186
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 Sl.
No.
Name of the
Director
Category of
Directorship
8. Mr. Banmali Agrawala
DIN: 00120029
Non-Independent
Non-Executive
Number of
Board
Meetings
attended
during
FY21
Whether
attended
last AGM
held on
30th July
2020
8
Yes
No. of other
Directorships*
No. of
Committee
positions held**
No. of
shares
held in the
Company
Directorship in other
listed entities
including debt listed
(Category of Directorship)
Chair-
person
4
Member Chair-
person
1
2
Member
0
Nil
Tata Realty and Infrastructure
Limited (Debt Listed) @
Tata Housing Development
Company Limited
(Debt Listed) @
Tata Projects Limited
(Debt Listed) @
9. Mr. Ashok Sinha
DIN: 00070477
Independent,
Non-Executive
8
Yes
0
6
4
1
Nil
Cipla Limited #
J. K. Cement Limited #
Navin Fluroine International
Limited #
Coastal Gujarat Power Limited
(Debt Listed) #
Maithon Power Limited
(Debt Listed) #
Tata Power Renewable Energy
Limited (Debt Listed) @
10. Dr. Praveer Sinha&,
Executive
8
Yes
3
4
0
0
Nil
CEO & Managing
Director
DIN: 01785164
Category of Directorship held:
@
Non-Independent, Non-Executive
# Independent, Non-Executive
^ Nominee Director
*
**
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.
&
Dr. Praveer Sinha, CEO & Managing Director is not an ID of any other listed company.
vii. The Company has not issued any convertible instruments.
x.
Skills/expertise/competencies of the Board of Directors
viii. Necessary disclosures regarding Committee positions in
other public companies as on 31st March 2021 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 Qualification
of Directors) Rules, 2014, as amended by MCA Notification
dated 22nd October 2019, regarding the requirement
relating to enrolment in the Data Bank created by MCA for
IDs, has been received from all the IDs.
The Board is satisfied that the current composition reflects
an appropriate 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
disclosure. The Board periodically evaluates the need for
change in its composition and size.
requires
The Company
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
187
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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
Dr. Praveer Sinha
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
√
√
√
√
√
-
-
-
√
-
-
√
√
√
√
√
-
√
√
√
-
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
√
-
√
√
√
-
√
Table 3
Government/
Regulatory
√
-
-
-
√
√
√
√
√
√
xi. Changes in Board composition
xiv. Letter of appointment issued to Independent
There are no changes in board composition during FY21.
xii. Term of Board membership
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 policy, the retirement age for MD/EDs is 65
years, NEDs is 70 years and IDs is 75 years.
xiii. Selection and appointment of new directors
The Board is responsible for the appointment of new
directors. The Board has delegated the screening
and selection process for new directors to the NRC.
Considering the existing composition of the Board
and requirement of new domain expertise, if any, the
NRC reviews potential candidates. The assessment of
members to the Board is based on a combination of
criteria that include ethics, personal and professional
stature, domain expertise, gender diversity and specific
qualification required for the position. The potential
Independent Director is also assessed on the basis of
independence criteria defined in Section 149(6) of the
Act read with rules framed thereunder and Regulation
16(1)(b) of the Listing Regulations. 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.
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 FY21, 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, two separate meetings
of the IDs were held on 18th December 2020 and 10th
March 2021. At the said meetings, the IDs discussed
strategic issues affecting the Company and updated
themselves on the sector outlook. They also reviewed the
performance of NEDs, of the Board as a whole and the
Chairman, after considering the view of the CEO & MD
and NEDs. They also assessed the quality, quantity and
timeliness of flow of information between the Company’s
management and the Board.
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
xvii. Details of
familiarisation programmes
for
xx. Remuneration to Directors
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. Separate
sessions are
organised with external domain experts to enable Board
members to update their knowledge of the sector.
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-20-21.pdf.
xviii. Code of Conduct
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
includes Code of Conduct for Independent Directors which
suitably incorporates the duties of Independent Directors
as laid down in the Act. 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).
Mr. Ramesh N. Subramanyam, Chief Financial Officer
(CFO) of the Company is the ‘Compliance Officer’ in
terms of this Code.
Details of remuneration to NEDs during and for the
year under review:
(Gross Amount in ₹) Table 4
Sl.
No.
Name of
the Director
Sitting Fees paid
during FY21
Commission for
FY21*
1. Mr. N. Chandrasekaran$
Chairman
3,30,000
N.A.
2. Ms. Anjali Bansal
3. Ms. Vibha Padalkar
4. Mr. Sanjay V. Bhandarkar
5. Mr. K. M. Chandrasekhar
6. Mr. Ashok Sinha
7. Mr. Hemant Bhargava@
8. Mr. Saurabh Agrawal #
9. Mr. Banmali Agrawala #
6,00,000
5,70,000
5,70,000
5,40,000
5,10,000
3,60,000
3,60,000
3,90,000
60,00,000
65,00,000
65,00,000
60,00,000
65,00,000
50,00,000
N.A.
N.A.
* Commission relates to the financial year ended 31st March
2021, which was approved by the Board on 12th May 2021, to be
paid during FY22.
$ As per the policy, Mr. N. Chandrasekaran has abstained from
receiving commission from the Company.
@ 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 2021 was
distributed based on the Company's performance and keeping
in mind the attendance of Directors at Board and Committee
meetings and their contribution at these meetings.
None of the NEDs had any pecuniary relationship or transactions
with the Company other than the Directors’ sitting fees and
commission, as applicable, received by them. The Company
reimburses the out-of-pocket expenses, if any, incurred by the
Directors for attending meetings.
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Details of remuneration and perquisites paid to the CEO & Managing Director during FY21:
(Gross Amount in ₹) Table 5
Name
Salary & allowances
Commission for
FY21@
Perquisites &
Benefits
Retirement
Benefits
Total
Dr. Praveer Sinha
1,51,47,000
4,50,00,000
84,99,320
26,24,400
7,12,70,720
@ Commission (variable component) relates to the financial year ended 31st March 2021, which was approved by the Board on 12th May 2021, to be paid
during FY22.
Salient features of the agreement executed by the Company with the CEO & Managing Director:
Table 6
Period of appointment
Remuneration
Commission
Incentive Remuneration
Benefits, perquisites and allowances (excluding Company's
contribution to Provident Fund, Superannuation, Gratuity,
Leave Encashment)
Terms of Agreement
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.
Notice period
Severance fees
Stock Option
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 recommendations of 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.
The Board has seven committees as on 31st March 2021,
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 2021:
(i) Audit Committee of Directors
(ii) Nomination and Remuneration Committee
(iii) Corporate Social Responsibility Committee
(iv) Stakeholders Relationship Committee
(v) Risk Management Committee
Audit Committee of Directors
The composition of the Committee as on 31st March 2021 and
attendance details of meetings during FY21, are as follows:
Name of
the Director
Mr. Ashok Sinha, Chairman
Mr. Sanjay V. Bhandarkar
Ms. Vibha Padalkar
Mr. Saurabh Agrawal
Ms. Anjali Bansal
Mr. K. M. Chandrasekhar
Table 7
No. of meetings
attended
No. of meetings
held during
FY21
4
4
4
4
4
4
4
4
3
4
4
4
All members are financially literate and bring in expertise
in the fields of finance, accounting, development, strategy
and management.
Meetings of the Committee were held on 18th May 2020,
11th August 2020, 9th November 2020 and 3rd February 2021,
with the requisite quorum.
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
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 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
its composition, role, responsibilities,
powers and processes.
inter alia
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.
All the recommendations made by the Committee during the
year under review were accepted by the Board.
Mr. Ashok Sinha, Chairman of the Committee, was present at the
last AGM held on 30th July 2020.
Nomination and Remuneration Committee
The composition of the Committee as on 31st March 2021 and
attendance details of meetings during FY21, are as follows:
Name of
the Director
No. of meetings
held during FY21
No. of meetings
attended
Table 8
Mr. Sanjay V. Bhandarkar,
Chairman
Mr. N. Chandrasekaran
Ms. Vibha Padalkar
3
3
3
3
3
3
Meetings of the Committee were held on 19th May 2020, 10th
November 2020 and 10th March 2021, with the requisite quorum.
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 I and II
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 Committee
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.
Mr. Sanjay V. Bhandarkar, Chairman of the Committee, was
present at the last AGM held on 30th July 2020.
191
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Corporate Social Responsibility Committee
The composition of the Committee as on 31st March 2021 and
attendance details of meetings during FY21, are as follows:
The Board has approved the Charter of the Committee defining
its composition, powers, responsibilities, etc. The terms of the
Charter broadly include:
Table 9
Name of
the Director
No. of meetings
held during FY21
No. of meetings
attended
Ms. Anjali Bansal, Chairperson
Mr. K. M. Chandrasekhar
Dr. Praveer Sinha
4
4
4
4
4
4
Meetings of this Committee were held on 18th May 2020,
11th August 2020, 9th November 2020 and 3rd February 2021
with the requisite quorum.
to be undertaken by
The Company has adopted a CSR policy which indicates
the activities
the Company as
specified in Schedule VII to the Act. The policy, including
overview of projects or programs proposed
to be
is provided on the Company’s website at
undertaken,
https://www.tatapower.com/pdf/aboutus/csr-policy.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 to 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 Committee, was present at
the last AGM held on 30th July 2020.
Stakeholders Relationship Committee
The composition of the Committee as on 31st March 2021 and
attendance details of meetings during FY21, are as follows:
Name of
the Director
Table 10
No. of meetings
held during FY21
No. of meetings
attended
Mr. Banmali Agrawala, Chairman
Mr. Hemant Bhargava
Ms. Anjali Bansal
2
2
2
2
2
2
Meetings of this Committee were held on 26th November 2020
and 24th March 2021 with the requisite quorum.
The Committee specifically discharges duties of servicing and
protecting the various aspects of interest of shareholders,
debenture holders and other security holders.
•
•
•
•
•
•
•
•
•
•
•
•
Review
security holders.
statutory
compliances
relating
to
all
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.
Ensure setting of proper controls and oversight of
performance of the Registrar and Share Transfer Agent (RTA).
Approve
of the Company.
issuance of duplicate
Approve transmission of securities.
share
certificates
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.
Carry out any other function as is referred by the Board
from time to time or enforced by any statutory notification/
amendment or modification as may be applicable.
Name, designation and address of the Compliance Officer:
Mr. H. M. Mistry, Company Secretary
Bombay House, 24, Homi Mody Street, Mumbai 400 001
Tel: 022 6665 8282
In accordance with Regulation 6 of the Listing Regulations, the
Board has appointed Mr. H. M. Mistry, Company Secretary as the
Compliance Officer. He is authorised to approve share transfers/
transmissions, in addition to the powers with the members
of the Committee. Share transfer formalities are regularly
attended to and atleast 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.
192
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 The status of total number of complaints received during the
year under review is as follows:
•
Reviewing
approving
and
Management (ERM) framework.
Enterprise-wide
Risk
Table 11
•
Review the alignment of the ERM framework with the
Total
strategy of the Company.
Sl.
No.
A.
Description
Letters received from
Statutory Bodies
Securities & Exchange
Board of India
Stock Exchanges
Depositories (NSDL/CDSL)
Ministry of Corporate
Affairs
Consumer Forum
B.
Dividends
Non-receipt of dividend/
interest warrants (pending
reconciliation at the time of
receipt of letters)
Total
Received
Replied
Pending
3
4
1
5
0
3
4
1
5
0
0
13
0
13
1*
0
0
0
0
0
1*
* 1 complaint of Mr. J. P. Balasubramanian, received through SEBI and
brought forward from last year, remains pending.
Mr. Banmali Agrawala, Chairman of the Committee, was present
at the last AGM held on 30th July 2020.
Risk Management Committee
The composition of the Committee as on 31st March 2021 and
attendance details of meetings during FY21, are as follows:
Name of
the Director
Ms. Vibha Padalkar, Chairperson
Mr. Sanjay V. Bhandarkar
Mr. Ashok Sinha
Mr. Hemant Bhargava
Mr. Banmali Agrawala
No. of meetings
held during FY21
Table 12
No. of meetings
attended
3
3
3
3
3
3
3
3
2
3
Meetings of this Committee were held on 15th July 2020, 26th
November 2020 and 24th March 2021 with the requisite quorum.
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.
•
•
•
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 Committee, was present
at the last AGM held on 30th July 2020.
❖ 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 2021:
• Mr. N. Chandrasekaran, Chairman
• Mr. Sanjay V. Bhandarkar
• Dr. Praveer Sinha
Terms of Reference:
The Committee covers a detailed review of the following
matters before they are presented to the Board:
•
•
•
•
Business and strategy review.
Long-term financial projections and cash flows.
Capital and revenue budgets and capital expenditure
programmes.
Acquisitions, divestments and business restructuring
proposals.
•
Any other item as may be decided by the Board.
193
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world The said matters were discussed in various Board meetings held
during the year under review in the presence of the Executive
Committee of the Board with the intent to avail expertise of
all Board members.
•
•
Committee of Directors
The Committee comprises the following as on 31st March 2021:
• Mr. Sanjay V. Bhandarkar, Chairman
• Mr. Banmali Agrawala
• Dr. Praveer Sinha
Terms of Reference:
The role of this Committee is as follows:
•
•
•
•
•
•
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:
recommend
investments and
Approve
investment
proposals to Tata Power group companies within overall
Board approved framework.
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.
•
•
•
involving
instructions
• 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
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.
To change the authorised signatories for all transactions,
contracts, agreement etc., entered into by the Company in
the ordinary course of business.
Grant authority to the Company’s officers to exercise
powers of a higher Work level under the Company’s
Schedule of Authorities.
the
•
•
•
The said matters were discussed in various Board meetings
held during the year under review in the presence of the
Committee of Directors with the intent to avail expertise of
all Board members.
Year ended
Day, Date & Time
Venue
Special Resolutions passed
31st March 2020
31st March 2019
31st March 2018
Thursday, 30th July 2020
at 3 p.m. (IST)
Tuesday, 18th June 2019
at 3 p.m. (IST)
Friday, 27th July 2018
at 3 p.m. (IST)
Virtual Meeting through
Video Conferencing / Other
Audio Visual Means
•
Issuance of Equity Shares to Tata Sons Private
Limited, Promoter of the Company, on a Preferential
basis
Birla Matushri Sabhagar,
Sir Vithaldas Thackersey
Marg, 19, New Marine
Lines, Mumbai
400 020
• Nil
• Private placement of Non-Convertible Debentures/
Bonds
Table 13
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
b) Extraordinary General Meeting:
No Extraordinary General Meeting of the Members was held during FY21.
c) Details of the meeting convened in pursuance of the order passed by the National Company Law Tribunal (NCLT):
During the year, pursuant to an order dated 5th January 2021, passed by the Hon’ble National Company Law Tribunal, Mumbai
Bench in the Company Scheme Application No. 1140/MB/2020, a meeting of the Equity Shareholders of the Company was held
through Video Conferencing / Other Audio Visual Means on Tuesday, 16th February 2021 at 3 p.m. (IST) to consider and approve
the Composite Scheme of Arrangement amongst Coastal Gujarat Power Limited and Tata Power Solar Systems Limited and The
Tata Power Company Limited and their respective shareholders under Sections 230 to 232 and other applicable provisions of
the Act and the Rules thereunder.
d) Postal Ballot:
(i) Details of special resolutions passed by postal ballot:
During the year under review, two ordinary resolutions were passed by means of postal ballot on 24th June 2020, the
details of which are as follows:
a) Increase in the Authorised Share Capital of the Company; and
b) Alteration of the Memorandum of Association of the Company.
(ii) Details of Voting Pattern:
Table 14
Ordinary
Resolution No
Ballots
Received
Total
Shares
In
favour
Against
Invalid
a)
b)
2,306
2,306
2,01,16,51,392
2,01,16,55,314
Ballots
2,194
2,176
Votes
2,00,67,30,821
2,00,67,70,930
Ballots
112
130
Votes
49,20,571
48,84,384
Ballots
Nil
Nil
Votes
Nil
Nil
(iii) Person who conducted the aforesaid postal
ballot exercise:
Mr. P. N. Parikh (ICSI Membership No. FCS 327),
Practising Company Secretary of Parikh & Associates
conducted the aforesaid postal ballot exercise in a fair
and transparent manner.
(iv) Whether any special resolution is proposed to be
conducted through postal ballot:
No Special Resolution is currently proposed to be
conducted through postal ballot.
(v) Procedure followed for Postal Ballot:
Pursuant to Sections 108, 110 and other applicable
provisions, if any, of the Act, (including any statutory
modification or re-enactment thereof for the time
being in force) read with Rule 22 of the Companies
(Management and Administration) Rules, 2014 (the
Rules), as amended from time to time, the General
Circular No. 14/ 2020 dated 8th April 2020 and the
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” issued by
the MCA, Government of India (the “MCA Circulars”)
and pursuant to other applicable laws and regulations,
the Company provided only the remote e-Voting
facility to its Members, to enable them to cast their
votes electronically.
The Company engaged the services of National
Securities Depository Limited (NSDL) for facilitating
remote e-Voting to enable the Members to cast their
votes electronically.
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, the Company sent
the Postal Ballot Notices in electronic form only to
its registered shareholders whose e-mail IDs were
registered/available with the Depository Participants
(DPs)/Registrars and Share Transfer Agents (RTA) as on
a cut-off date.
Voting rights were reckoned on the paid-up value of
the shares registered in the names of the Members
as on the cut-off date i.e. 19th May 2020. Members
desiring to exercise their votes by electronic mode
were requested to vote before close of business hours
on the last date of e-Voting.
The scrutinizer, after the completion of scrutiny,
submitted his report to Mr. H. M. Mistry, Company
Secretary who was authorised to accept, acknowledge
195
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
and countersign the Scrutinizer’s Report as well as
declare the voting results in accordance with the
provisions of the Act, the Rules framed thereunder
and the Secretarial Standard 2 on General Meetings.
The consolidated results of the voting by postal ballot
and e-Voting were then announced by Mr. Mistry. The
results were also displayed at the Registered Office
and the Corporate Office of the Company and on
the Company’s website at https://www.tatapower.
com/pdf/investor-relations/postal-ballot-voting-
results-24jun20.pdf besides being communicated to
BSE Limited (BSE), National Stock Exchange of India
Limited (NSE) and NSDL. The results were announced
on 24th June 2020.
Means of Communication to the shareholders
a) Calendar of financial year ended 31st March 2021
The Company follows April-March as the financial year. The
meetings of the Board of Directors for approval of quarterly and
annual financial results for the financial year ended 31st March
2021 were held on the following dates:
Particulars
Quarter ended 30th June 2020
Quarter/half-year ended 30th September 2020
Quarter/nine months ended 31st December 2020
Quarter/year ended 31st March 2021
Date
12th August 2020
10th November 2020
4th February 2021
12th May 2021
Table 15
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 Circulars
dated 5th May 2020 and 13th January 2021 and SEBI
Circulars dated 12th May 2020 and 15th January 2021, the
Notice of the AGM along with the Annual Report 2020-
21 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.
b) Quarterly, Half-yearly and Annual Results
Quarterly, half-yearly and annual financial 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
Loksatta - All editions
Jam-e-Jamshed Weekly
Vyapar + Phulchhab
Region
Ahmedabad, Vadodara, Mumbai, Chandigarh, New Delhi, Kolkata, Lucknow, Nagpur and Pune
Mumbai, Pune, Ahmedabad, New Delhi, Lucknow, Chandigarh, Kolkata, Hyderabad, Bengaluru,
Kochi and Chennai
Ahmednagar, Mumbai, Pune, Nagpur, Aurangabad and New Delhi
Mumbai
Vyapar (Mumbai) and Phulchhab (Rajkot)
Table 16
Language
English
English
Marathi
Gujarati
Gujarati
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
196
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 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 Stock Exchanges 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
based compliance reporting
identical and
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. Investors 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: Monday, 5th July 2021 at 3 p.m. (IST)
In accordance with the Circulars issued
by MCA and SEBI, the AGM will be held
through Video Conferencing (VC) / Other
Audio Visual Means (OAVM) only.
(b) Financial Year : 1st April to 31st March
(c) Dividend
: Dividend of ₹ 1.55 per Equity share of ₹ 1
each fully paid up (155%) for the financial
year 2020-21 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 Wednesday, 7th July 2021.
For the Members who are unable to
in their
receive the dividend directly
bank accounts,
the Company shall
dispatch the dividend warrant to them,
resumption of normal activities.
on
(d) Book Closure : From Saturday, 19th June 2021 to Monday,
5th July 2021 (both days inclusive)
(e) E-Voting Dates: The cut-off date for the purpose of
determining the shareholders eligible for
e-Voting is 28th June 2021.
The e-Voting commences on Thursday,
1st July 2021 at 9 a.m. (IST) and ends on
Sunday, 4th July 2021 at 5 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 2021:
• 436 (Issued in 1994 to Citibank NA)
• 2,180 (Issued in 2009 to Bank of New York, Mellon)
197
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Listing of Debt Securities: The various series of Debentures issued by the Company are listed as under:
Table 17
Sl.
No.
Series
Amount outstanding as
on 31st March 2021
(` in crore)
Listed on
Name of the Debenture trustees with full
contact details
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
7.60% Unsecured, Redeemable, Non-
Convertible Debentures
6% Unsecured, Redeemable, Non-
Convertible Debentures
8.21% Unsecured, Redeemable, Non-
Convertible Debentures
6.18% Unsecured, Redeemable, Non-
Convertible Debentures
7.05% Unsecured, Redeemable, Non-
Convertible Debentures
7.77% Unsecured, Redeemable, Non-
Convertible Debentures
100
NSE
90
210
1,500
1,500
1,200
250
500
750
1000
1000
300
400
500
500
NSE
NSE
NSE
BSE & NSE
BSE
NSE
NSE
NSE
NSE
NSE
NSE
BSE
BSE
BSE
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
SBICAP Trustee Company Limited
Apeejay House, 6th Floor, 3, Dinshaw Wachha
Road, Churchgate, Mumbai 400 020
Tel: 022 4302 5555
Fax: 022 2204 0465
Email: corporate@sbicaptrustee.com
Axis Trustee Services Limited
The Ruby, 2nd Floor, SW, 29 Senapati Bapat Marg,
Dadar West, Mumbai 400 028
Tel: 022 6230 0603
Mob: 98191 37920
Email: kulkarni.makarand@axistrustee.com
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
198
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 (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 2020-21 and 2021-22.
(j) Listing Details:
Name of the Exchange
BSE Limited
(physical form)
(demat form)
Table 18
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 2020
May 2020
June 2020
July 2020
August 2020
September 2020
October 2020
November 2020
December 2020
January 2021
February 2021
High
(`)
36.50
36.90
46.35
52.55
62.70
61.00
56.15
64.95
77.20
86.05
96.05
March 2021
113.25
BSE
Low
(`)
30.20
27.35
39.55
46.00
48.75
50.35
52.15
52.65
67.95
75.40
79.85
97.80
No. of shares
traded
97,96,045
3,57,26,976
5,38,42,806
4,20,80,116
5,32,39,856
3,08,05,672
1,90,55,204
4,30,71,972
5,89,06,626
5,15,29,304
7,94,95,763
High
(`)
36.50
36.90
46.35
52.50
62.65
60.95
56.15
64.90
77.20
86.05
96.00
11,79,26,430
113.25
NSE
Low
(`)
30.15
27.30
39.45
46.10
48.75
50.45
52.10
52.65
67.95
75.40
79.90
97.90
Table 19
No. of shares
traded
22,08,97,513
84,34,43,518
90,21,99,083
70,59,05,429
83,96,43,695
53,24,63,877
34,36,93,775
54,81,80,944
86,80,38,315
68,15,15,058
102,09,63,949
159,70,82,988
(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
Sensex and BSE Power Sensex in FY21:
Nifty and NSE Nifty Energy in FY21:
Tata Power
closing price
at BSE
BSE Sensex
Table 20
BSE Power
Sensex
Months
April 2020
May 2020
June 2020
July 2020
August 2020
September 2020
October 2020
November 2020
December 2020
January 2021
February 2021
31.75
36.60
44.90
48.70
58.70
53.15
52.15
64.95
75.65
75.40
95.10
March 2021
103.20
33,717.62
32,424.10
34,915.80
37,606.89
38,628.29
38,067.93
39,614.07
44,149.72
47,751.33
46,285.77
49,099.99
49,509.15
1,490.51
1,481.53
1,574.86
1,538.93
1,669.87
1,652.97
1,729.35
1,999.37
2,062.13
2,004.65
2,418.77
2,475.13
Months
April 2020
May 2020
June 2020
July 2020
August 2020
September 2020
October 2020
November 2020
December 2020
January 2021
February 2021
Nifty
Nifty Energy
Table 21
Tata Power
closing price
at NSE
31.70
36.55
44.85
48.70
58.75
53.30
52.15
64.90
75.65
75.40
95.15
9,859.90
9,580.30
13,154.70
13,060.50
10,302.10
14,396.55
11,073.45
15,309.15
11,387.50
15,605.25
11,247.55
15,026.95
11,642.40
14,977.80
12,968.95
16,251.85
13,981.75
16,922.50
13,634.60
16,159.20
14,529.15
18,793.35
March 2021
103.25
14,690.70
18,185.10
199
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world (iii) Performance in comparison to broad-based indices:
Table 22
NSE
31.55
103.25
227.26
Company's Share Price
As at 01.04.2020
As at 31.03.2021
Change (%)
BSE
31.55
103.20
227.10
Indices
As at 01.04.2020
As at 31.03.2021
Change (%)
Sensex
28,265.31
49,509.15
75.16
Table 23
Nifty
8,253.80
14,690.70
77.99
(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), C-101,
1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli
(West), Mumbai - 400 083, Tel: 022 6656 8484,
Fax : 022 6656 8494, Email: csg-unit@tcplindia.co.in,
Website: www.tcplindia.co.in
(ii) Branches of TSRD:
1. C/o. Mr. D. Nagendra Rao, "Vaghdevi" 543/A,
7th Main,
Cross, Hanumanthnagar,
Bengaluru - 560019, Tel: +91-80-2650 9004;
Email: tsrdlbang@tcplindia.co.in
3rd
2. C/o Link Intime India Private Limited, Vaishno
Chamber, Flat No. 502 & 503, 5th Floor, 6, Brabourne
Road, Kolkata - 700001, Tel: +91-33-4008 1986;
Email: tsrdlcal@tcplindia.co.in
Limited,
India
Noble Heights, 1st Floor, Plot No NH-2, C-1
Block, LSC, Near Savitri Market, Janakpuri,
New Delhi - 110058, Tel: +91-11-4941 1030;
Email: tsrdldel@tcplindia.co.in
3. C/o
Private
Intime
Link
4. Bungalow No. 1, 'E' Road, Northern Town Bistupur,
Jamshedpur - 831001, Tel: +91-657-2426937; Email:
tsrdljsr@tcplindia.co.in
5. C/o Link Intime India Private Limited, 5th Floor,
506 to 508, Amarnath Business Centre-1 (ABC-1),
Beside Gala Business Centre, Nr. St. Xavier's College
Corner, Off. C.G. Road, Ellisbridge, Ahmedabad -
380006, Tel: +91-79-26465179; Email: csg-unit@
tcplindia.co.in
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
FY21
Table 24
FY20
Number of transfers/
transmissions
581
1,046
Number of shares
9,02,808
22,40,811
(p) Shareholding details of the Company:
i. Distribution of Equity Shareholding as on 31st March 2021:
Range of Holdings
1 - 5000
5001 - 10000
10001 - 20000
20001 - 30000
30001 - 40000
40001 - 50000
50001 - 100000
100001 and above
Total
Physical
1,97,99,433
78,43,645
41,99,133
15,75,737
12,78,500
5,24,580
10,83,400
19,74,340
3,82,78,768
Number of shares
Number of shareholders
Table 25
Demat
26,70,05,594
7,00,18,980
6,28,57,222
3,22,18,651
1,80,44,304
1,46,08,265
3,88,46,809
265,34,60,954
315,70,60,779
% Physical
Total
15,602
8.98
28,68,05,027
1,136
2.44
7,78,62,625
300
2.10
6,70,56,355
66
1.06
3,37,94,388
36
0.60
1,93,22,804
12
0.47
1,51,32,845
17
1.25
3,99,30,209
6
265,54,35,294
83.10
17,175
319,53,39,547* 100.00
%
90.84
6.61
1.75
0.38
0.21
0.07
0.10
0.04
Demat
9,76,149
9,750
4,481
1,299
517
324
550
521
100.00 9,93,591
%
98.25
0.98
0.45
0.13
0.05
0.03
0.06
0.05
%
98.12
1.08
0.47
0.14
0.05
0.03
0.06
0.05
100.00 10,10,766 100.00
Total
9,91,751
10,886
4,781
1,365
553
336
567
527
*It only represents number of listed Equity shares. It excludes 28,32,060 equity shares not allotted but held in abeyance, 44,02,700 equity shares cancelled
pursuant to a Court Order, 4,80,40,400 equity 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 and 16,52,300 forfeited equity shares.
200
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
ii. Shareholding pattern of the Company as on 31st March 2021:
Promoters (including Promoter Group)
Particulars
Directors and their relatives
Insurance Companies
Financial Institutions/Banks
Mutual Funds / UTI
Provident Funds/ Pension Funds
Clearing Members
Corporate Bodies
Body Corporate-NBFC
Limited Liability Partnership-LLP
Alternate Investment Fund
Trusts
Resident Individuals & HUF
Central / State Governments
Foreign Portfolio Investors - Corporate
OCBs
OCBs-DR
Foreign National-DR
Global Depository Receipts
Non-Resident Indians
IEPF Suspense A/c
Total
iii. Top 10 Shareholders of the Company as on 31st March 2021
Sl. No.
Name of Shareholder
1
2
3
4
5
6
7
8
9
Tata Sons Private Limited
Life Insurance Corporation of India
Matthews Pacific Tiger Fund
ICICI Prudential Value Discovery Fund
Tata Steel Limited
General Insurance Corporation of India
Franklin India Equity Advantage Fund
HDFC Life Insurance Company Limited
The New India Assurance Company Limited
10
Nippon Life India Trustee Limited- Funds
Grand Total
Equity Shares of ` 1 each
Table 26
No. of Shares
149,72,57,565
7,16,262
33,84,20,490
1,06,71,777
28,20,71,479
25,40,735
1,74,44,396
3,78,90,107
55,175
9,01,914
75,43,949
10,31,819
53,84,12,544
2,56,09,803
38,87,58,487
4,000
3,73,990
5,631
4,14,300
3,63,52,770
88,62,354
%
46.86
0.02
10.59
0.33
8.83
0.08
0.54
1.19
0.00
0.03
0.24
0.03
16.85
0.80
12.17
0.00
0.01
0.00
0.01
1.14
0.28
319,53,39,547
100.00
Total holdings
144,45,13,021
16,41,25,329
14,93,84,497
8,91,12,249
3,91,22,725
3,81,00,100
3,22,07,715
3,15,96,717
2,63,43,839
2,44,33,343
Table 27
% to capital
45.21
5.14
4.68
2.79
1.22
1.19
1.01
0.99
0.82
0.76
203,89,39,535
63.81
Persons holding 1% or more of the equity shares in the Company as on 31st March 2021 excluding the list of top 10
shareholders of the Company: None
201
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
(q) Details of Equity Shares in dematerialised and physical form as on 31st March 2021:
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
294,95,61,001
20,74,99,778
315,70,60,779
3,82,78,768
319,53,39,547
% to total
92.31
6.49
98.80
1.20
100.00
Number
3,36,555
6,57,036
9,93,591
17,175
10,10,766
Table 28
% to total
33.30
65.00
98.30
1.70
100.00
* includes shares held by Tata Sons and promoter group representing 46.86% 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
Commodity
The
https://www.tatapower.com/pdf/aboutus/commodity.pdf.
Risk Management
Price
Policy
is
to commodities
available
on
including
through hedging:
at
Company’s website
the
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 2020-21 is approx. ₹ 1,191.53 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 29
% of such exposure hedged through
commodity derivatives
Domestic market
International market
Total
OTC
Exchange
OTC
Exchange
Coal
• Trombay Plant - ₹ 588.85 crore
• Trombay Plant - 1.72 Million MT (imported)
• Jojobera Plant - ₹ 602.68 crore
• Jojobera Plant - 1.54 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 uses 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.
202
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
(s) Plant locations of the Company and Group Companies:
Table 30
Type of plants
Thermal
Power
Generating
Plants
Trombay Generating Station, Mahul Road, Chembur, Mumbai, Maharashtra
Jojobera Power Plant, Jojobera, Jamshedpur, Jharkhand
Address of plants
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, Duburi, Odisha
Tata Power Delhi Distribution Limited, Rithala CCGT Power Plant, 2/9, Sub Station Building, Behind Char Dham Apartment, Sector 9,
Rohini, New Delhi
Hydro
Generating
Stations
Hydro Generating Station, Bhira P.O. Bhira, Taluka Mangaon, District Raigad, Maharashtra
Hydro Generating Station, Bhivpuri, P.O. Bhivpuri Camp, Taluka Karjat, District Raigad, Maharashtra
Hydro Generating Station, Khopoli, P.O. Khopoli Power House, Taluka Khalapur District Raigad, Maharashtra
Itezhi Tezhi Power Corporation Limited, Unit No. 13D, 2nd Floor Pangaea Office Park, Plot 2374, Great East Road, Show Grounds Area,
Postnet 239, Private Bag E891 Mandahill, Lusaka, Zambia
Dagachhu Hydro Power Corporation Limited, Dagapela, Dagana, Bhutan
Adjaristaqali Georgia LLC:
- Shuakhevi - 178 MW (2 x 89 MW) - Shuakhevi Hydro Power Plant, Adjara Region Shuakhevi Municipality, Village Akhaldaba, Georgia
- Skhalta - 9 MW (3 x 3 MW) - Skhalta Hydro Power Plant, Adjara Region Khulo Municipality, Village Tsablana, Georgia
Wind Farms 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
Tata Power Renewable Energy Limited:
- Agaswadi Wind Farm, Village Kannarwadi, Hiwarwadi & Agaswadi, Taluka Khatav, District Satara, Maharashtra
- Poolavadi Wind Farm, Villages Anikaduvu, Mongilphuluvu, Illupunagaram, Taluka Madathukulam, District Tripur, Tamil Nadu
- Samana Wind Farm, Village Mota Panchdevda, Taluka Kalavad, District Jamnagar, Gujarat
- Gadag Wind Farm, Hosur, Kanavi, Mulgund, Shiroland Harti, District Gadag, Karnataka
- Dalot Wind Farm, Village Raipur, Jungle, Khanpur, Talabkheda, Karaikhede, Taluka Arnod, District Pratapgarh, Rajasthan
- Rojmal Phase I Wind Farm, Village Sukhpur, Taluka Babra, District Amreli, Gujarat
- Rojmal Phase II Wind Farm, Village Sukhpur, Taluka Babra, District Amreli, Gujarat
- Dwarka Wind Farm, Village Bhatiya, District Khambhalia, Gujarat
- Lahori Wind Farm, Village Lahori, District Shajapur, Madhya Pradesh
- Dangri Wind Farm, Village Dangri, District Jaisalmer, Rajasthan
- Nimbagallu Wind Project, Nimbagallu Village, Uravakonda (Mandal), District Anantapur, Andhra Pradesh
- Visapur 32 MW Wind Farm, Village Kokrale, Visapur, Girijashankarwadi & Rajachekurle, Taluka Khatav, District Satara, Maharashtra
Tata Power Green Energy Limited:
- 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
The Tata Power Company Limited:
- Nivade Wind Farm, Village Sawarghar and Niwade, Taluka Patan, District Satara, Maharashtra
- Visapur 10 MW Wind Farm, Village: kakrole, Visapur, taluka - Khatav, District – Satara
TP Wind Power Limited, Jath, Dist-Sangli, Pin-416404, Maharashtra
Vagarai Wind Farm Limited, Appayampatti Village, Oddan Chatram Taluk, District Dindigul, Tamil Nadu
203
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Type of plants
Address of plants
Solar Plants 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, Tehsil 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 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
- Kayathar - 50 MW Plant, Metupirancheri Village, Manur Taluk, Tiruneliveli, District 627352, Tamilnadu
- Honda Cars India Limited, Plot No. A-1, Sector - 40/41, Surajpur Kasna Road, Greater Noida, Uttar Pradesh
- Honda Cars India Limited, SPL-1, Tapukara Industrial Area, Khuskhera, Alwar District, 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
Tata Power Renewable Energy Limited:
- Mulshi Solar Plant, Mulshi (Khurd), Post Male, Taluka Mulshi, District Pune, Maharashtra
- Roof top Solar, Delhi
- Bidar, Srinivasapura, Kanakagiri, Karnataka
- Noamundi Solar Power Plant, Jharkhand
- Palsawade Solar Plant, Palsawade, Taluka Maan, District Satara, Maharashtra
- Sastra University, Maharashtra
- Mithapur Solar Plant, Plot B, Survey No. 78, Mithapur, District Jamnagar, Gujarat
- Belampalli Village, Ankepalli and Venkapalli, Mandal, Tandur, District Mancherial, Telangana
- Plot No.6, Gujarat Solar Park Charanka, District Patan, Gujarat
- 400 MW 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
- 150 MW TPREL MSEDCL Chhayan Solar PV Plant, Chhayan I, Pokhran, District Jaisalmer, Rajasthan
Poolavadi Windfarm Limited, Netmagic 50 MW, Gholasgaon, Taluka: Akkalkot, District Solapur, Maharashtra, PIN: 413218
204
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 Type of plants
Transmission
and
Distribution
Division
Address of plants
Ambernath Receiving Station, Murbad road, Varap, P O (Via) Kalyan, Dist. Thane, Mumbai - 421301, Maharashtra
Backbay Receiving Station, 148, Lt. Gen. J. Bhonsle Marg, Nariman Point, Mumbai - 400021, Maharashtra
BKC Substation, Near Asian Heart Hospital, Opposite Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (E), Mumbai – 400051,
Maharashtra
Borivali Receiving Station, Tata Power House Road, Borivali (E), Mumbai- 400066, Maharashtra
Bhokarpada Receiving Station, Hiranandani Business Park, Opposite Maharashtra Jeevan Pradhikaran at - Bhokarpada Village, Post
Poyanje, Panvel, District – Raigad, Mumbai – 410206, Maharashtra
Carnac Receiving Station, 34, Sant Tukaram Road, Carnac Bunder, Mumbai - 400009, Maharashtra
Chembur Receiving Station, PO Box H O 18801, RCF Premises, Near Gate No.2, Chembur, Mumbai - 400074, Maharashtra
Dharavi Receiving Station, Matunga, Near Shalimar Industrial Estate, Dharavi, Mumbai - 400019, Maharashtra
Kalyan Receiving Station, Transmission Division, Shil Road, Netivli, Kalyan, Dist. Thane, Mumbai - 421301, Maharashtra
Kolshet Sub Station, Ghodbunder Road, Manpada, Thane (W), Mumbai - 400601, Maharashtra
Kurla Receiving Station, Tata Power, Kirol Road, Kamani, (Inside HDIL Premier SRA project, opposite building No. 29), Kurla(W), Mumbai
- 400070, Maharashtra
Malad Sub Station, Malad Marve Road, Malad (W), Mumbai - 400 095, Maharashtra
Mankhurd Sub Station, Near Mankhurd – Ghatkopar Highway, Mumbai Pune Road, Mankhurd, Mumbai - 400088, Maharashtra
Mahalaxmi Sub-Station, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, Maharashtra
Parel Receiving Station, G D Ambekar Marg (Parel Tank Road), Parel, Mumbai - 400 033, Maharashtra
Panvel Receiving Station, Old Mumbai Pune Road, Behind MSEDCL Bhingari, substation, Bhingari Panvel, Dist Raigad, Maharashtra
Powai Receiving Station, Near MTNL Hiranandani Kailas Complex Road, Powai, Mumbai - 400076, Maharashtra
Saki Receiving Station, 42, Saki Vihar Road, Andheri (East), Mumbai - 400072, Maharashtra
Sahar Receiving Station, Near Hotel Leela, Sahar T2 Airport Road, Andheri East, Mumbai - 400 059, Maharashtra
Salsette Receiving Station, Lake Road, Bhandup, Mumbai - 400 078, Maharashtra
Versova Sub Station, Off Andheri - Malad Link Road, Andheri (West), Mumbai - 400053, Maharashtra
Vikhroli Sub Station, Godrej Soap Premises, Vikhroli (East), Mumbai 400079, Maharashtra
Distribution Division, Senapati Bapat Marg, Lower Parel, Mumbai 400013, Maharashtra
Karanjade, Transmission project Site, Plot no 81A, Sector 5A, Karanjade Village, Panvel, Mumbai - 410206, Maharashtra
Waghiwali, Transmission project Site NMIA, Waghiwali Sector 17A, Navi Mumbai, Panvel, Mumbai - 400027, Maharashtra
Antophill, Transmission project Site, Shaikh Misree Road, Antop Hill, Wadala Landmark- Near Wamanrao Mahadik MCGM School
Mumbai- 400037, Maharashtra
(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,
Email: tatapower@tatapower.com; Website: www.tatapower.com
(u) Credit Rating:
During the year under review, Credit Rating Information
Services of India Limited (CRISIL) has upgraded its
rating on the
long term bank facilities and Non-
Convertible Debentures (NCDs) (including perpetual
and subordinated NCD) from CRISIL AA-/Positive to
CRISIL AA/Stable. The rating of AA/Stable awarded by
CRISIL reflects high degree of safety regarding timely
servicing of financial obligations and also indicates that
such instruments carry very low credit risk. The rating
of A1+ for the Company's short-term bank facilities and
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 its rating on
NCDs of the Company as AA- but revised the outlook from
Stable to Positive. The rating indicates highest degree of
safety regarding timely servicing of financial obligation
and the rated instruments carry very low credit risk.
Care Analysis and Research Limited (CARE Ratings) has
assigned the rating of AA/Stable to the long term bank
facilities of the Company and reaffirmed the rating on
NCDs (including perpetual bonds) of the Company, as
Care AA with the Stable Outlook.
India Ratings & Research Private Limited (Ind-Ra), a Fitch
Group Company, assigned the rating of IND A1+ to the
Commercial Papers issued by the Company and affirmed
the rating on NCDs (NCD program) as IND AA/Stable.
205
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Other Disclosures:
Particulars
Regulation/Schedule of
Listing Regulations
Details and Web link
Table 31
Web
for
link where policy
determining material subsidiaries is
disclosed
Regulation 16 (1)(c) and
Schedule V (C) 10(e)
The policy for determining material subsidiaries, adopted by the Board, is
uploaded on the Company’s website.
https://www.tatapower.com/pdf/aboutus/policy-for-determining-material-
subsidiaries.pdf
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 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
the Audit Committee of Directors.
https://www.tatapower.com/pdf/aboutus/whistle-blower-policy-and-vigil-
mechanism.pdf
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 arm’s length basis and were approved by the Audit Committee of
Directors. 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.
https://www.tatapower.com/pdf/aboutus/rpt-policy-framework-guidelines.pdf
The Audit Committee of Directors reviews the financial statements of subsidiaries
of the Company. It also reviews the investments made by such subsidiaries, the
statement of all significant transactions and arrangements entered into by the
subsidiaries, if any, and the compliances of each materially significant subsidiary
on a periodic basis. The minutes of board meetings of the unlisted subsidiary
companies are placed before the Board. Composition of the Board of material
subsidiaries is in accordance with Regulation 24(1) of the Listing Regulations.
Details of familiarisation program imparted to IDs are available on the Company’s
website.
https://www.tatapower.com/pdf/investor-relations/familiarisation-programme-
for-directors-20-21.pdf
The Archival Policy and Policy on Preservation of Documents, adopted by the
Board, are uploaded on the Company’s website.
https://www.tatapower.com/pdf/aboutus/archival-policy.pdf
https://www.tatapower.com/pdf/aboutus/preservation-policy-documents.pdf
The Policy on determination of materiality for disclosures, adopted by the Board,
is uploaded on the Company’s website.
https://www.tatapower.com/pdf/aboutus/determining-policy.pdf
Code of Conduct
Regulation 17
Details of establishment of Vigil
Mechanism, Whistle Blower policy,
and affirmation that no personnel
has been denied access to the Audit
Committee
Regulation
Schedule V (C) 10(c)
22
and
Disclosures on materially significant
related party transactions that may
have potential conflict with the
interests of listed entity at large and
Web link for policy on dealing with
related party transactions
Regulation
Schedule V (C) 10(f )
23
and
Subsidiary Companies
Regulation 24
Familiarisation Program
Regulation 25(7) read
with Regulation 46
Archival Policy and Policy on
Preservation of Documents
Regulation
Regulation 9
30
and
Policy
Materiality for Disclosures
on Determination
of
Regulation 30
206
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 Particulars
Regulation/Schedule of
Listing Regulations
Dividend Distribution Policy
Regulation 43A
Terms
Appointment of IDs
and
conditions
of
Regulation 46
Details of mandatory requirements
and adoption of the non-mandatory
requirements
Schedule II Part E
Details and Web link
The Dividend Policy, adopted by the Board, is uploaded on the Company’s
website.
https://www.tatapower.com/pdf/aboutus/dividend-policy.pdf
Terms and conditions of appointment/re-appointment of IDs are available on
the Company’s website.
https://www.tatapower.com/pdf/investor-relations/Terms-&-conditions-of-IDs-
appointment.pdf
All mandatory requirements of the Listing Regulations have been complied with
by the Company. The status of compliance with the discretionary requirements,
as stated under Part E of Schedule II to the Listing Regulations, is as under:
• 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.
Schedule V (C) 10(b)
There were no instances of non-compliance, penalties, strictures imposed on the
Company by the Stock Exchanges, SEBI or any statutory authority, on any matter
related to capital markets, during the last 3 years.
Details of non - compliance by
the Company, penalty, strictures
imposed on the Company by the
Stock Exchange or SEBI or any
statutory authority on any matter
related to capital markets
Disclosures of commodity price risks
and commodity hedging activities
Schedule V (C) 10(g)
Details of utilisation of funds raised
through preferential allotment or
qualified institutional placement as
specified under Regulation 32(7A)
Schedule V (C) 10(h)
certificate
A
Secretary
in
non-debarment/disqualification
practice
Company
for
from
Schedule V (C) 10(i)
The disclosure of commodity price risks and hedging activities is provided under
section ‘General Shareholder Information’. The policy on Commodity Price Risk
Management adopted by the Company is uploaded on the Company’s website.
https://www.tatapower.com/pdf/aboutus/commodity.pdf
At the AGM of the Company held on 30th July 2020, the Members approved
the issuance of 49,05,66,037 Equity Shares of ₹ 1 each at ₹ 53 per share for an
amount aggregating ₹ 2,600 crore to Tata Sons Private Limited on preferential
basis. The Company has allotted the said shares to Tata Sons Private Limited
on 13th August 2020. The Company has utilized the sum of ₹ 2,600 crore for
repayment of debts of the Company and it subsidiaries.
A certificate from 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.
Disclosure with respect to non-
acceptance of any recommendation
of any Committee of the Board
which is mandatorily required, along
with reasons thereof
Schedule V (C) 10(j)
All the recommendations of the various mandatory committees were accepted
by the Board.
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Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 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
(₹ in crore) Table 32
By the
Company*
By
Subsidiaries*
Total
Amount
4.03
0.38
0.02
4.43
3.33
1.57
0.11
5.01
7.36
1.95
0.13
9.44
* The above fees are exclusive of applicable tax.
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. 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
208
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 2021:
Sl. No.
Particulars
Table 33
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
3
0
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
(Ind-AS) in the preparation of its financial statements.
Indian Accounting Standards
follows
8. As required under Regulation 36(3) of the Listing Regulations
and the secretarial standards, particulars of Directors
seeking re-appointment at the forthcoming AGM are given
in the Notice of the AGM to be held on 5th July 2021.
9. 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
in respect of dividends declared upto the financial year
ended 31st March 2013 have been transferred to the IEPF.
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
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 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 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 2013 and remained unclaimed were
due to be 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 2020-21. 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 2020-21 are as follows:
Amount of unclaimed
dividend transferred
₹ 1,57,33,419.10
Number of Equity shares transferred
Table 34
8,65,891
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 2021)
13.08.2014
05.08.2015
21.09.2016
23.08.2017
27.07.2018
18.06.2019
30.07.2020
2,12,95,013.48
2,31,04,085.61
2,73,73,049.60
2,69,52,552.90
2,56,19,046.70
2,43,83,340.70
2,39,23,964.80
(Amount in `) Table 35
Last date for
claiming
payment from
TSRD
15.09.2021
07.09.2022
24.10.2023
20.09.2024
20.08.2025
17.07.2026
30.08.2027
It may be noted that the unclaimed dividend for
the financial year 2013-14 declared on 13th August
2014, is due to be transferred to the IEPF. The same
can, however, be claimed by the Members by 15th
September 2021. Members who have not encashed the
dividend warrant(s) from the financial year ended 31st
March 2014 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)
ii)
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.
regarding
Instructions
address,
nomination and power of attorney should be given
directly to the DPs.
change
of
➢ 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),
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.
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The Shareholders’ Relations Team
Registered Office of the Company.
is
located at the
➢ Reconciliation of Share Capital Audit:
A Company Secretary in practice carried out a quarterly
Reconciliation of Share Capital Audit to reconcile the total
admitted capital with NSDL and CDSL and the total issued
and listed capital. The audit report confirms that the total
issued/paid-up capital is in agreement with the aggregate
of the total number of shares in physical form and the total
number of shares in dematerialised form (held with NSDL
and CDSL). The Audit report is disseminated to the Stock
Exchanges on quarterly basis and is also available on our
website https://www.tatapower.com/investor-relations/
stock-exchange-intimation.aspx
➢ 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,
meeting with key stakeholders,
for
shareholders, online service and dedicated e-mail service
for grievances, corporate website and access to business
media to respond to queries, etc.
factory visits
For internal stakeholders - Employee satisfaction surveys,
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.
Contact Person: Mr. J. E. Mahernosh Tel.: 022 6665 7508
➢ 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
section
from
‘Investor Relations’ at https://www.tatapower.com/pdf/
nomination-form-14.pdf
the
➢ 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 No. : 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 No. : 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 FY21. The Secretarial Audit Report is provided
as Annexure IV to the Board’s Report.
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
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.
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.
iii) Confidentiality of security details
vi) Prevention of Frauds
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
Members should transact through a registered
intermediary does not
the
intermediary. In case the
act professionally, Members can
matter with SEBI.
take up
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 of Corporate policies and Charters
the Company’s website at
are available on
https://www.tatapower.com/corporate/policies.aspx.
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 2021.
DECLARATION
Annexure I
Mumbai, 12th May 2021
For The Tata Power Company Limited
Praveer Sinha
CEO & Managing Director
DIN: 01785164
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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 2021 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, 12th May 2021
Praveer Sinha
CEO & Managing Director
(DIN:01785164)
R. N. Subramanyam
Chief Financial Officer
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21
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, 2021, 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
UDIN: F005533C000282689
Peer Review No: P2009MH007000
Place: Mumbai
Date: 12th May 2021
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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, 2021.
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 Vijay Bhandarkar
Mr. Kesava Menon Chandrasekhar
Mr. Hemant Bhargava
Mr. Saurabh Mahesh Agrawal
Mr. Banmali Agrawala
Mr. Ashok Sinha
10.
Dr. Praveer Sinha
For Makarand M. Joshi & Co.
Practicing Company Secretaries
Kumudini Bhalerao
Partner
FCS No. 6667
CP No. 6690
Place: Mumbai
Date: 3rd May 2021
UDIN: F006667C000227206
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Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2020-21 Business Responsibility Report
The Tata Power Company Limited (Tata Power), India’s largest integrated power company has a presence across the power
value chain viz. generation of renewable as well as conventional power including hydro and thermal energy; transmission and
distribution and trading. In line with the Company's view on sustainable and clean energy development, Tata Power is steering the
transformation of traditional utilities to providers of integrated solutions by initiating new business models in EV charging, Solar
pumps and rooftops, Microgrids, Home automation and Smart meters.
Tata Power believes in conducting its business activities in a responsible and sustainable manner. Tata Power’s vision is to ‘Empower
a billion lives through sustainable, affordable and innovative energy solutions’. Tata Power has a pivotal role to play in the
global efforts to achieve the United Nation's Sustainable Development Goals (SDGs) and the Company’s contribution is essential to
the success of SDGs and for fulfilling India’s commitment to achieve SDGs by 2030. Tata Power undertook a detailed SDG mapping
study which resulted in the prioritization of 10 SDGs, 4 business SDGs and 6 CSR SDGs, for guiding our sustainability efforts.
As on 31st March 2021, the Tata Power group of companies has a generation capacity of 12,808 MW based on various fuel sources
- thermal (coal, gas and oil), hydroelectric power, renewable energy (wind and solar PV) and waste heat recovery. The Company
(including its subsidiaries) has nearly 31% of its capacity (in MW terms) in clean and green generation sources (hydro, wind, solar
and waste heat recovery).
The Business Responsibility Report (BRR) is aligned with National Voluntary Guidelines (NVGs) on Social, Environmental and
Economic Responsibilities of Business, issued by the Ministry of Corporate Affairs (MCA), 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 Information about the Company
1.
2.
3.
4.
5.
6.
7.
Corporate Identity Number (CIN) of the company
Name of the company
Registered address
Website
E-mail ID
Financial Year reported
Sector(s) that the Company is engaged in (industrial
activity code-wise)
8.
List three key products/services that the
Company manufactures/provides (as
in Balance Sheet)
L28920MH1919PLC000567
The Tata Power Company Limited
Bombay House, 24, Homi Mody Street, Mumbai - 400 001
www.tatapower.com
tatapower@tatapower.com
2020-21
NIC Code: 351 Electric Power Generation, Transmission and Distribution
Sector Description: Power Generation, Transmission & Distribution, Power Trading,
Electronic products and Services Business
-
-
-
- Next Generation Power Solutions – Solar Rooftop, EV Charging infrastructure,
Power through Conventional and Renewable Generation
Transmission and Distribution of electricity
Power Trading
Home Automation and Microgrids
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Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 1
1
1
1
3
1
2
6
International
Singapore
Georgia
Zambia
Bhutan
Indonesia
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 145 locations. The operational status as on 31st March 2021 is given below:
Thermal
Transmission Distribution
States
Andhra Pradesh
Andaman & Nicobar
Bihar
Delhi
Gujarat
Haryana
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Odisha
Punjab
Rajasthan
Tamil Nadu
Telangana
Uttar Pradesh
Uttarakhand
West Bengal
Total
No. of Project locations
6
1
2
28
12
1
9
13
2
35
4
1
10
9
4
4
3
1
145
Hydros
Wind
1
3
5
1
1
9
4
2
Solar
5
1
2
25
6
1
6
12
1
20
1
5
7
4
3
3
3
23
102
1
1
3
1
1
1
1
9
10. Markets served by the Company:
Local/ State/ National
Delhi License Area
Andhra Pradesh
Bihar
Delhi
Gujarat
Haryana
Mumbai License Area
Jharkhand (Jamshedpur Circle)
Madhya Pradesh
Maharashtra
Odisha
Punjab
Ajmer License Area
Rajasthan
Karnataka
Tamil Nadu
Telangana
Uttar Pradesh
Odisha License Area
West Bengal
Jharkhand
Uttarakhand
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 (%)
₹ 320 crore
₹ 6,480 crore
₹ 922 crore
2%*
List of activities in which expenditure in the above has been incurred
Tata Power undertakes CSR initiatives in alignment with the 5 Thrust areas as outlined in the CSR Policy. Tata Power (Parent) covered 12.85 lakh
people from Maharashtra, Gujarat, Jharkhand and West Bengal and at Tata Power group level CSR Initiatives covered 46.65 lakh beneficiaries
across 61 locations in 15 states. Further, Tata Power Standalone (Maharashtra, Gujarat, Jharkhand and West Bengal) covered 12.85 lakh people.
The Initiatives are aligned to 6 UN SDGs and Schedule VII to the Companies Act, 2013 (the Act).
Tata Power Standalone FY21 CSR spend:
Thrust Areas
Education
Health and Sanitation
Livelihood and Skill Building
Water
Financial Inclusivity
Misc. & Club Enerji
% Spend
10
20
52
5
3
10
The highlights of Tata Power Group entities' CSR Interventions are reported in Social and Relationship Capital section of Integrated Report
(Reference Pg. 95)
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Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2020-21
Section C: Other Details
1.
the Company have any Subsidiary Company/
Does
Companies?
As on 31st March 2021, the Company had 59 subsidiaries (44
are wholly owned subsidiaries), 33 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 Company/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.
(BR)
Details of the Director/ Directors responsible for
implementation of the BR policy/ policies
DIN Number 01785164
Name
Designation CEO & Managing Director
Dr. Praveer Sinha
b. Details of BR Head
DIN No.
Name
Designation
Contact
06716024
Ms. Jyoti Kumar Bansal
Chief- Branding, Corp. Communications,
CSR & Sustainability
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 conform to the
International standards like ISO 9000, 14000, and 45001, UNGC principles, ILO principles
and United Nations Sustainable Development Goals (SDGs). Tata Power follows
GRI standards (Global Reporting Initiative) for measuring and reporting its sustainability
performance, reports to Carbon Disclosure Project (CDP) on Climate Change and
Water and has also committed to Science based target Initiative (SBTi).
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 well-being are co-created, in which employees’ inputs are taken and
incorporated in the policy building process. These inputs along with internal and
external benchmarking, form the pillars of policy.
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3. Governance related to BR
a.
Indicate the frequency with which the Board of
Directors, Committee of the Board or CEO 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 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. The CEO & Managing Director reviews the
sustainability performance of Tata Power once
every two months.
quarterly meetings,
established
Apex
leadership
SBU Heads
Corporate
Sustainability Team
Sustainability SPOCs
Thermal, T&D, Hydros, Renewables, HR,
CSR, Ethics, IA&RM, Environment, etc.
Fig. Sustainability Governance Structure
b. Does
it
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 FY21 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/
sustainability/disclosures/iirc-alignment.aspx.
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?
Being a Tata Group company, Tata Power abides by the
TCoC, which is a comprehensive document with an
ethical road map for all internal and external stakeholders
of the Company, thus covering 100% of its operations.
218
TCoC consists of 10 sections with sub-clauses that cover
employees, customers, communities and the environment,
value chain partners, financial stakeholders, governments
and group companies. The TCoC extends to Group Joint
Ventures/ Subsidiaries/Suppliers/Contractors.
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.
Stakeholder
Received in
FY20-21
Employees including
contract employees
Vendor
Company
Society/ Community
Customers
Investor
54 from on roll
employees & 9 from
contract employees
15
0
0
1
13
Satisfactorily
resolved
by the
management (%)
97
100
NA
NA
100
100
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.
Tata Power is organised in four business clusters namely
Thermal Generation and Coal mining, Transmision &
Distribution, Renewables and New Businesses.
Generation: At all generating stations, conformance to
environmental norms, safety, occupational, health of the
employees (permanent/ contract) is considered a priority.
All thermal stations of Tata Power are IMS compliant.
Our renewable generation is focused on achieving growth
in an environmentally responsible and sustainable manner.
Tata Power commissioned around 50 MW of solar PV and
rooftop projects in FY21.
Transmission: Tata Power has always propagated the
importance of electrical safety awareness amongst
communities living in and around its operational areas.
As a responsible company, Tata Power takes utmost care of
the biodiversity around its transmission lines.
Distribution: Initiatives like Safety audits, Energy audits
in consumer premises, Club Enerji, energy efficient
appliance exchange Demand Side Management (DSM)
programs under ‘Be Green’ initiative creates awareness for
customers/ society at large on energy efficiency and its
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2020-21
conservation, safety, and reducing the carbon footprint.
Tata Power has secured IGBC Green building certification
for its new as well as existing GIS buildings in Mumbai.
trades/skill sets
though
Tata Power Skill Development Institute (TPSDI) training
centres for enhancing employability.
including entrepreneurship
Manufactured Capital in Integrated Report (Reference Pg.
54-55, 57-59 & 60-61)
Social & Relationship Capital
(Reference Pg. 89-90 & 92-93)
in
Integrated Report
2.
For each such product, provide the following details
in respect of resource use (energy, water, raw material
etc.) per unit of product (optional):
i.
in
during
reduction
sourcing/production/
Reduction
distribution achieved since the previous year
throughout the value chain?
Various
environment management measures
resulting
auxiliary power
in
rainwater
consumption, zero water discharge,
harvesting, ash utilization, energy conservation, and
scrap utilization, etc. are in place at all operating
locations. Tata Power has improved ash utilization
at all coal fired power plants and is continuously
working on reducing fresh-water consumption at
thermal power plants. Tata Power is in the process
of minimizing atmospheric pollution by installing
Desulphurization Systems at coal fired power plants.
Natural Capital (Reference Pg. 114-118)
ii. Reduction during usage by consumers (energy,
water) has been achieved since the previous year?
Social & Relationship Capital (Reference Pg. 92)
3. Does the Company have procedures in place for
sustainable sourcing (including transportation)?
Tata Power practises responsible sourcing with respect to
environment, safety, human rights and ethics, apart from
economic considerations. Strict conformation to labour
principles and related laws are mandatory requirements
for all 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.
4. Has the Company taken any steps to procure goods
and services from local & small producers, including
communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity
and capability of local and small vendors?
The Company engaged with community
the
neighbourhood as indirect workforce through business
associates and contractors based on relevant skill set
and nature of job. The contract workforce is trained at
TPSDI on various industrial vocations and safety aspects
to enhance their skills and efficiency in work practices.
Thus, the Company contributes to capability building of
the contractors and their workforce to ensure that the
workforce is adequately trained to safely perform the job
efficiently with higher productivity and quality standards.
In FY21, the total number of TPSDI trainees were 24,914 out
of which 69% of eligible youth were provided placement.
in
5. Does the Company have mechanism to recycle products
and waste? If yes, what is the percentage of recycling
waste and products?
Yes, the Fly Ash generated from thermal power stations is
the major waste. This is redirected towards construction
(RMC as per Fly Ash Notification) and Quarry filling (as
per SPCB NOC). Tata Power’s endeavour is to utilize
100% Fly ash at all locations and initiatives are in place
to utilize the bottom ash as well. For the renewable
operations, Tata Power conducted a study on end-of-life
considerations for photovoltaic solar panels. The study
portrays future projections with respect to PV panel waste
quantum, disposal problems and how to address them
through technology and advocacy.
Natural Capital (Reference Pg. 120)
Principle 3 (P3): Businesses should promote the wellbeing
of all employees
1.
Please indicate the total number of employees.
Total number of employees are 2673 as on 31st March 2021
for Tata Power Standalone.
Tata Power has established a formal mechanism of
supplier assessment to verify their ESG performance.
The evaluation is based on specific ESG criterion for which
they need to secure a minimum score for onboarding.
In addition to engaging local workforce and community
development, which is part of project development
commitments, Tata Power as part of national skill/ capacity
development programme, trains local youth in various
2.
3.
Please indicate the total number of employees hired
on temporary/ contractual/casual basis.
The total number of contract employees are 6473 as on
31st March 2021.
indicate
the number of permanent
Please
women employees.
Total number of permanent women employees are 295 as
on 31st March 2021.
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4.
Please indicate the number of permanent employees
with disability.
Total number of permanent employees with disabilities
are 3 (2 officers + 1 staff) as on 31st March 2021.
5. Do you have an employee association that
is
recognised by management?
Yes, there is an employee association that is recognized by
the management - Union
6. What percentage of your permanent employees are a
member of this recognised employee association?
30% of the permanent employees are unionized and
members of the employee union.
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.
Tata Power firmly supports human rights and the rights of
all its stakeholders. The Company is proud to declare that
it has 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.
Category
No. of complaints
filed during
the financial year
No. of complaints
pending as on end
of the financial year
Child labour/
forced labour/
involuntary labour
Sexual harassment
Discriminatory
employment
0
3
0
0
0
0
8. What percentage of your employees were given safety
& skill up-gradation training in the last year?
Health and Safety management is the Company’s topmost
priority with a defined safety vision. Your Company
employs a pro-active and pre-emptive approach to
occupational health and safety and is committed to
achieve goal of zero injuries and fatalities. 100% of
contractual workforce are trained on various aspects of
Occupational health and safety.
220
Permanent Employees (includes
women employees and employees
with disabilities)
Safety Induction Training
Safety Capability Training
Casual/Temporary/Contractual Employees
Safety Induction Training
Safety Capability Training
FY20-21
(Manhours)
23,396
49,224
73,608
3,56,528
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
a
Tata
Power
review
external stakeholders?
Yes,
comprehensive
conducted
Stakeholder engagement and materiality assessment
in 2020. We undertook a materiality
in
FY21 considering the evolving ESG scenario, and this
led to addition of 7 material issues for Tata Power to
focus.The Company engages with various stakeholder
groups like Lenders, Investors, Regulatory authorities,
Board of Directors, Customers, Employees, Suppliers,
NGO partners, Community, media, etc. through dedicated
listening mechanisms. This transparent communication
helps us to understand the expectations and co-create
value. The interactions with stakeholders enables 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 businesses.
Stakeholder Engagement (Reference Pg. 44 & 45)
2. Out of the above, has the Company identified
the disadvantaged, vulnerable & marginalised
stakeholders?
Social & Relationship Capital (Reference Pg. 102)
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.
Tata Power’s Community Empowerment program
is
an interlinked socio-economic and governance-based
initiative which aims to inform, enable and empower
marginalized communities through skill building and
livelihood generation. The program also
involves
Self-Help Groups (SHGs) and other vulnerable sections
of society. Community Empowerment Interventions are
run collaboratively with various implementation partners.
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2020-21
The Company has developed and enhanced the capacity
of the SHG members and provided them opportunity to
keep the Company cafeteria/canteens operational for the
employee and contractors. Numerous initiatives including
market
linkages have been provided to help them
generate sustained income and continuous livelihood
opportunities.
The present COVID-19 pandemic has put our corporate
social responsibility programs to test. Tata Power is striving
to modify its approach, forge new partnerships with NGOs,
work with the district administrations to deploy innovative
response during this unprecedented situation to sustain
the livelihood of our neighbouring communities spread
across 15 states i.e. Maharashtra, Delhi, Gujarat, Odisha,
West Bengal, Jharkhand, Telangana, Madhya Pradesh,
Andhra Pradesh, Karnataka, Bihar, Uttar Pradesh, Rajasthan,
Tamil Nadu and Punjab. We have strategized and deployed
our programs and initiatives to address both immediate
and long-term needs of our community.
Social & Relationship Capital (Reference Pg. 102)
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?
Tata Power respects Human Rights and has a dedicated
Policy on Human Rights with a commitment framework.
This policy is aligned with the UN Human Rights Declaration,
International Labour Organisation
(ILO) fundamental
conventions and other fundamental labour principles.
Through the policy, Tata Power ensures conformance to
fundamental labour principles including the prohibition
of child labour, forced labour, freedom of association
and protection from discrimination in all its operations
by imparting relevant training and aligning the conduct
of its employees.
Human Capital (Reference Pg. 80)
2. How many stakeholder complaints have been received
in the past financial year and what percent was
satisfactorily resolved by the management?
Tata Power 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. Human Capital
(Reference Pg. 80)
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?
Tata Power has a dedicated Environment policy along with
policies on Energy conservation, Sustainability, E-waste
management etc. The Environment policy encourages the
Company to conserve resources, reduce environmental
impact and seeks to enhance the awareness among
employees. The Company is conscious of its environmental
responsibility and considers it for future decision-making.
The Joint Ventures/Suppliers have developed their own
policies taking guidance from the Company policy.
However, the RSCM policy has environment protection as
one of its criteria applicable to all the vendors, contractors
and service providers.
Natural Capital (Reference Pg. 122-124)
Social & Relationship Capital (Reference Pg. 94)
2. Does the Company have strategies/initiatives to address
global environmental issues such as climate change,
global warming, etc.?
The energy sector has been at the centre of the climate
change debate globally. As the largest integrated power
utility in India, Tata Power is conscious of its responsibilities
and has committed to a focused 3-D framework of
Decarbonization, Decentralization and Digitalization.
Tata Power is also the first power utility in India to publicly
commit to Carbon neutrality by 2050. The Company has
put forth a commitment for no further coal-based growth
and to retire coal-based capacity on reaching end-of-life.
This will be supplemented by rapid growth in renewables
leading to an increase from 31% in 2021 through clean
sources to 60% by 2025, growth through distribution and
smart energy solutions for empowering customers and
committing to SBTi.
Tata Power collaborated with WBCSD and 10 global electric
utilities to co-create a report on the Sector Transformation:
An SDG roadmap for Electric Utilities. Tata Power was
the only Indian company involved in its development.
The roadmap provides a vision, direction and a platform
for collaboration that will enable the electric utilities sector
to drive forward the SDGs on the road to 2030.
3. Does the Company identify and assess potential
environmental risks?
Yes, environment and climate change related risks are
identified and added to the risk register for periodic
reviews. A risk owner and risk champion are assigned to
each identified risk who then analyse the risk for required
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mitigation measures. The senior management team and
Risk Management Committee of the Board reviews the
key risks along with status of mitigation measures on
a regular basis.
Risk Management (Reference Pg. 26-27)
the
Clean
Company
4. Does the Company have any project related to
Clean Development Mechanism? If so, provide details
thereof, in about 50 words or so. Also, if Yes, whether
any environmental compliance report is filed?
Yes,
Development
has
Mechanism (CDM) projects registered with United Nations
Framework Convention on Climate Change (UNFCCC).
Tata Power currently has five of its renewable projects
registered under
the CDM program by UNFCCC.
These projects include Wind projects at Gadag (Karnataka),
Khandke (Maharashtra), Samana and NewGen Saurashtra
(Gujarat). The Company also has Mithapur Solar project
registered in Gujarat under CDM. In FY21, volume of 87,351
Carbon Credits (CERs) were traded from these projects
combined. The gross revenue generated from such sale is
~ ₹ 1.77 crore. Walwhan Renewable Energy Limited (WREL)
has eight CDM registered projects but no CERs were issued
or traded in FY21.
5. Has the Company undertaken any other initiatives on
- clean technology, energy efficiency, renewable
energy, etc.? Y/N.
Tata Power has been a pioneer
through
development
Intellectual Capital (Reference Pg. 70-71)
technology
in
innovation and digitization.
conforms
Tata Power
limits
6. Are the Emissions/Waste generated by the Company
within the permissible limits given by CPCB/SPCB for
the financial year being reported?
the prescribed
Yes,
Pollution
permissible
(CPCB)/State Pollution Control Board
Control Board
(SPCB) for air emissions, effluent quality and discharge,
solid and hazardous waste generation and disposal.
Compliance reports/statements are submitted to SPCB as
well as Regional office, Ministry of Environment, Forest &
Climate Change (MoEF&CC) regularly, as applicable.
Central
per
as
to
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.
There are no pending or unresolved show cause/ legal
notices received from CPCB/SPCB as on 31st March 2021.
222
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:
The Company is member of various trade and chamber
associations. The major ones are:
•
•
•
•
•
Confederation of Indian Industry
Bombay Chamber of Commerce and Industry
Indian Energy Exchange Ltd
National Safety Council
India Energy Forum
2. Have
you
through
Inclusive
Reforms,
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,
Economic
Development
Policies, Energy security, Water, Food Security,
Sustainable Business Principles, Others)
Tata Power does not engage in any form of lobbying
in place to enhance
activities. Advocacy policy
competitiveness, effectiveness and positively contribute to
the development of the Power sector. The broad areas under
the purview of Advocacy policy include Energy Security,
Governance and Administration, enhancing competition
and transparency in power sector, structural changes for
facilitating capacity addition, overcoming coal related
challenges, electricity distribution reforms and promotion
of renewable energy.
is
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.
inclusive
There are programs aimed at providing
growth opportunities. The TPSDI
is a flagship
program with strategic intent of training at least 25%
of rural youth particularly from SC/ST communities.
So far, it has achieved training of 28.61% of rural youth
from SC/ST communities against its stated intent. Also,
the focus areas of Affirmative Action program, Education,
Employability, Entrepreneurship and Essential Amenities
support the marginalized communities. The Company
continues to support developmental projects related
to garment making unit at Maval (Maharashtra) and
Mushroom and Vermicompost making units established
in Jojobera and Maithon (Jharkhand). Both these projects
have incorporated effective use of fly ash into value
proposition creating economic benefit to the community
at large. Also, the financial inclusivity interventions have
enabled access to various Government schemes resulting
in 4.59 lakh beneficiaries on socio-economic aspects.
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2020-21
2. Are the programmes/projects undertaken through
foundation/external NGO/
team/own
in-house
Government structures/any other organisation?
Tata Power has a Community Relations function which sets
the strategy and plan for the community development
initiatives.
Tata Power Community Development
Trust (TPCDT), a registered trust formed by the Company is
the implementing vehicle for Tata Power group entities.
TPCDT partners with NGOs and Government organizations
to
community
leverage
development
thematic areas.
Tata Power encourages its employees to volunteer for
cause of their choice in pre-defined aspects that are aligned
initiatives. Tata Power
to community development
employees also actively participate 1380 activities during
the Tata Volunteering week dedicatedly for four weeks.
In FY21, 17,000 employees participated and clocked 57,257
volunteering hours.
synergies
initiatives under
in delivering
the
3. Have you done any impact assessment of your
initiative?
The Company has developed a scientific process of
measuring Social Performance using Community
Engagement Index at location level. Besides this, flagship
programs effectiveness is also measured on an annual
basis and reviewed by the CSR Committee under all five
thematic areas. Social Return on Investment Study was
conducted for 3 flagship initiatives and year on year
trend analysis showed increase by ₹ 5.04 return on every
Rupee Spent (70% improvement on YOY basis).
4. What
is your Company’s direct contribution to
community development projects-Amount in INR and
the details of the projects undertaken?
Tata Power as a Group contributed ₹ 39.24 crore as direct
contribution to community development projects in FY21
which included CSR expenses incurred by Joint Ventures
(Industrial Energy Limited and Powerlinks Transmission
Limited) which are considered as subsidiaries as
per
Industrial Energy Limited
and Powerlinks Transmission Limited, ₹ 33.89 crore
was direct contribution to community development
projects in FY21.
the Act. Excluding
5. Have you taken steps to ensure that this community
is successfully adopted
initiative
development
by the community?
The process of community engagement begins right from
business development stage, to projects and operations
stage. The socio-economic study and baselines form
the basis for identification of prioritized needs followed
by program planning with help of external experts.
This process is reviewed once every 3-5 years with the
objective of giving back to community. Every year, the
Company implements programs in consultation with the
location teams who assess community needs. Tata Power
CSR programs have impacted 46.65 lakh beneficiaries
across 15 states against a target of 30 lakh. The numbers
include the 16.6 lakh beneficiaries impacted through
digital and Covid related interventions.
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?
As on 31st March 2021, none of the customer complaints/
consumer cases beyond turnaround time (TAT) are pending.
2. Does the Company display product information on the
product label, over and above what is mandated as
per local laws?
Tata Power has been fully compliant with products
and service regulations concerning health and safety
impacts, marketing communication,
information and
labelling. Tata Power has displayed safety signage at
prominent
including the sub-stations and
Customer Relations Centers. In addition, the Company is
also creating safety awareness among consumers through
various virtual platforms.
locations
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?
There are no cases pending with regard to unfair
trade practices, irresponsible advertising and/ or anti-
competitive behavior as on 31st March 2021.
Corporate Governance (Reference Pg. 17)
4. Did your Company carry out any consumer survey/
consumer satisfaction trends?
Tata Power conducts Customer Satisfaction Surveys to
measure both customer satisfaction and dissatisfaction
levels on quarterly basis across all segments
i.e.
commercial, industrial and residential consumers using a 5
point rating scale. The results of the survey are shared with
the concerned departments to assess the improvement
areas and take necessary action. Overall Customer
Satisfaction Assessment total (CSAT) score in percentage
for FY21 is given below:
Customer
Residential
Industrial
Commercial
Satisfaction (%)
97
100
100
223
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Independent Auditor's Report
To the Members of
The Tata Power Company Limited
Report on
AS Financial Statements
the Audit of
the Standalone
Ind
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,
2021, 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, 2021, its profit including
other comprehensive income, its cash flows and the changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial
statements in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Standalone Ind AS Financial
Statements’ section of our report. We are independent of the
Company in accordance with the ‘Code of Ethics’ issued by
the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the
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, 2021. 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
Ind AS financial statements.
accompanying standalone
224
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2020-21 Key audit matters
Management’s assessment of appropriateness of Going Concern assumption (as described in Note 42.4.3 of the standalone
Ind AS financial statements)
The Company has current liabilities of Rs. 10,434.06 crores and
current assets of Rs. 3,874.50 crores as at March 31, 2021.
How our audit addressed the key audit matter
Our procedures included the following:
Current liabilities exceed 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.
• 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
assumptions,
in
developing business plan and cash flow projections
having regards to past performance and current
the
emerging
business and industry.
affecting
business
trends
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.
• Assessed the Company’s ability to refinance its short
term obligation based on the past trends, credit ratings,
analysis of solvency and liquidity ratios and ability to
generate cash flows and access to capital.
• Assessed the adequacy of the disclosures
in the
standalone Ind AS financial statements.
in the assessment and
Going Concern assessment has been identified as a key audit
matter considering the significant judgements and estimates
its dependence upon
involved
management’s ability to complete the planned divestments,
raising long term capital and / or successful refinancing of
certain current financial obligations.
Revenue recognition and accrual of regulatory deferrals (as described in Note 19 and Note 30 of the standalone Ind AS
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.
• Read the Company's accounting policies with respect to
accrual of regulatory deferrals and assessed its compliance
with Ind AS 114 “Regulatory Deferral Accounts” and
Ind AS 115 “Revenue from Contract with Customers”.
Our procedures included the following:
The Company recognizes revenue as the amount invoiced
to customers based on pre-approved tariff rates agreed with
regulator. As the Company is entitled to a fixed return on
equity, the difference between the revenue recognized and
entitlement as per the regulation is recognized as regulatory
assets / liabilities. The Company has recognized Rs. 1,148.45
crore for generation and transmission business and Rs. 573.60
crore for distribution business as accruals as at March 31, 2021.
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 which are in various
stages of dispute.
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 substantive audit procedures including:
o Evaluated
the key assumptions used by
the
Company by comparing it with prior years, past
precedents and the opinion of management’s expert.
o Considered
the
independence, objectivity and
competence of management’s expert.
o Assessed management’s evaluation of the likely
outcome of the key disputes based on past
precedents and / or advice of management’s expert.
o Assessed the impact recognized by the Company In
respect of tariff orders received.
the
disclosures
accordance
o Assessed
with
114
“Regulatory Deferral Accounts” and Ind AS 115
“Revenue from Contract with Customers”.
requirements
Ind AS
the
of
in
225
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Recognition and Measurement of Deferred Tax (as described in Note 35 of the standalone Ind AS financial statements)
The Company has recognized Minimum Alternate Tax (MAT)
credit receivable of Rs. 437.51 crores as at March 31, 2021.
The Company also has recognized deferred tax assets of
Rs. 492.56 crores on
loss on sale
of investments.
long term capital
Further, pursuant to the Taxation Laws (Amendment) Act, 2019
(new tax regime), the Company has measured its deferred tax
balances expected to reverse after the likely transition to new
tax regime, at the rate specified in the new tax regime.
The recognition and measurement of MAT credit receivable
and deferred tax balances; is a key audit matter considering
the significance of the amount, judgement involved in
assessing the recoverability of such credits, estimation of
the financial projections for determination of the year of
transition to new tax regime and judgements involved in the
interpretation of tax regulations and tax positions adopted
by the Company.
Our procedures included the following:
• Read Company'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 substantive audit procedures including:
o
tax
specialists who evaluated
Involved
the
Company’s tax positions basis the tax law and also
by comparing it with prior years and past precedents
o Discussed the future business plans and financial
projections with the management
o 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”.
Impairment of assets (as described in Note 5 and Note 7 of the standalone Ind AS 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
Rs. 3,555.00 crores with respect to Mundra CGU (comprising
of investment in companies owning Mundra power plant,
coal mines and related infrastructure), Rs. 446.09 crores
for investment in Company owning hydro power plant in
Georgia and Rs. 100 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.
Impairment of assets is a key audit matter considering
the significance of the carrying value, estimations and
the significant judgements involved in the impairment
assessment.
226
Our procedures included the following:
• Read
the Company's accounting policies with
respect to impairment in accordance with Ind AS 36
“Impairment of assets”
• Performed test of controls over key financial controls
related to accounting, valuation and recoverability of
assets through inspection of evidence.
• Performed substantive audit procedures including:
o Obtained the management’s impairment assessment
o 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.
o Obtained and evaluated the sensitivity analysis
• Assessed the disclosures
in accordance with the
requirements of Ind AS 36 “Impairment of assets”.
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2020-21 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
Ind AS Financial Statements
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to the
preparation of these standalone Ind AS financial statements
that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting records
in
accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making
judgments and
estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone Ind AS
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements,
management
is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern
basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone Ind AS financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken
on the basis of these standalone Ind AS financial statements.
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 with reference to standalone
Ind AS 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.
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.
227
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world •
Evaluate the overall presentation, structure and content of
the standalone Ind AS financial statements, including the
disclosures, and whether the standalone Ind AS financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone Ind AS financial
statements for the financial year ended March 31, 2021 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)
(c)
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
Sheet,
Balance
Statement
The
of
Profit and Loss including the statement of Other
Comprehensive
Flow
Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the
books of account;
Income,
Cash
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 as on March 31, 2021 taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2021 from
being appointed as a director in terms of Section 164
(2) of the Act;
(f) With respect to the adequacy of the internal
financial controls with reference to these standalone
Ind AS financial statements and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure 2” to this report;
(g)
(h)
In our opinion, the managerial remuneration for the
year ended March 31, 2021 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.
iii.
The Company has made provision, as required
law or accounting
under the applicable
standards, for material foreseeable losses,
if any, on
including
long-term contracts
derivative contracts - Refer Note 24 to the
standalone Ind AS financial statements;
There has been no delay in transferring
transferred,
amounts,
to
and
the
Protection Fund by the Company
Education
required
Investor
to be
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 21112773AAAADG2459
(d)
In our opinion,
standalone
Ind AS financial statements comply with the
the aforesaid
Mumbai
Date: May 12, 2021
228
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2020-21 Annexure 1 to the
Independent Auditor’s
Report referred to in paragraph 1 under the
heading ‘Report on Other Legal and Regulatory
Requirements’ of our report of even date on
the standalone Ind AS financial statements of
The Tata Power Company Limited
(iii)
(a)
The Company has granted
loans to sixteen
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 material
discrepancies were noticed on such verification.
(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
a.
aggregating
included
immovable properties
to
Rs. 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.
(iv)
(v)
b.
immovable properties aggregating to Rs.
8.01 crore acquired in earlier years for which
registration of title of deeds is in progress.
Further registration of title deed is in progress in respect of
leasehold land classified under Asset held for sale aggregating
to Rs. 215.56 crore (Gross value Rs. 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 Ind AS financials statements. The same has not been
independently confirmed by the bank and hence we are unable
to comment on the same.
(vi)
(ii)
conducted physical
The management has
verification of inventory at reasonable intervals
during the year and no material discrepancies were
noticed on such physical verification.
(b) The Company has granted loans to seventeen
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.
(iii)
(c)
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.
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.
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,
transmission and distribution of electricity, arms
and ammunitions, Radar, radio navigational aid
apparatus and electricals or electronic machinery
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.
229
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
(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
The Customs Act,
1962
Nature
of dues
Customs Duty
Amount in
Crores
34.43
Period to which
amount relates
2011-12 and 2012-13
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)
3.60
1.37
2004-05 to 2005-06
2004-05 to 2005-06
and 2009-10
Excise Duty
0.81
1993-94 to 1995-96
Cess
1.13
2009-10
2008-09
2009-10
2011-12 - 2014-15
2016-17
Income Tax
Tax deducted
at source
Service Tax
8.99
1.08
100.19
50.19
375.29
5.86
0.25
July 2012 to June 2017 High Court
2011-12 to 2014-15
2007-08
CESTAT
Joint
Commissioner
(Appeals)
The Central Excise
Act, 1944
The Water
(Prevention &
Control of Pollution)
Cess Act, 1977
Income Tax
Act, 1961
The Finance
Act, 1994
(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.
(ix)
In our opinion and according to the information and explanations given by the management and audit procedures performed
by us, 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.
230
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2020-21 (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
information and explanations given by the
to the
management, we report that no fraud by the Company or
no material fraud on the Company by the officers and
employees of the Company has been noticed or reported
during the year.
(xi) According to the information and explanations given by
the management, the managerial remuneration has been
paid / provided in accordance with the requisite approvals
mandated by the provisions of section 197 read with
Schedule V to the Companies Act, 2013.
(xii)
In our opinion, the Company is not a Nidhi company.
Therefore,
the
Order are not applicable to the Company and hence not
commented upon.
the provisions of clause 3(xii) of
(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.
(xiv) According to the information and explanations given by
the management and audit procedures performed by us,
the Company has complied with provisions of section 42
of the Companies Act, 2013 in respect of the preferential
allotment of shares during the year. According to the
information and explanations given by the management,
we report that the amounts raised, have been used for
the purposes for which the funds were raised. Further,
according to the information and explanations to us
and on an overall examination of the balance sheet, the
Company has not made any preferential allotment or
private placement of fully or partly convertible debentures
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.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 21112773AAAADG2459
Mumbai
Date: May 12, 2021
231
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
over financial reporting with reference to these standalone
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.
of
Internal
Financial
Controls Over
Meaning
Financial Reporting With Reference to these Standalone
Ind AS 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.
Independent Auditor’s
Annexure 2 to the
Report of even date on
the standalone
Ind AS financial statements of The Tata
Power Company Limited
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013, 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, 2021 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 (‘ICAI’).
These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the 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 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.
232
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2020-21 Inherent Limitations of Internal Financial Controls Over
Financial Reporting With Reference to these Standalone
Ind AS 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
or
improper management override of controls, material
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting with reference
to these standalone Ind AS financial statements to future
periods are subject to the risk that the internal financial control
over financial reporting with reference to these standalone
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, 2021, 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: 21112773AAAADG2459
Mumbai
Date: May 12, 2021
233
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Standalone Balance Sheet
as at 31st March, 2021
ASSETS
Non-current Assets
(a) Property, Plant and Equipments
(b) Capital Work-in-Progress
(c)
Intangible Assets
(d) Financial Assets
(i)
Investments
(ii) Loans
(iii) Finance Lease Receivables
(iv) 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
234
Notes
Page
As at
31st March, 2021
K crore
As at
31st March, 2020
K crore
5
6
7
9
10
11
12
13
246
250
252
258
260
261
262
262
8,200.75
7,974.07
285.45
55.39
402.87
62.22
26,128.40
21,327.20
490.18
529.57
619.88
135.00
42.10
553.03
222.77
135.00
1,179.50
1,009.64
37,624.12
31,728.90
14
263
632.94
635.01
15
8
16
17
9
10
11
13
263
257
264
265
258
260
261
262
18a.
265
240.01
910.87
75.37
123.67
19.00
1,523.89
36.52
120.38
191.85
3,874.50
796.73
20.00
1,108.68
83.41
158.54
20.40
550.09
31.89
235.58
146.26
2,989.86
2,639.40
42,295.35
37,358.16
19
268
573.60
258.32
42,868.95
37,616.48
20a.
20b.
21
269
270
270
319.56
1,500.00
270.50
1,500.00
16,559.00
13,491.47
18,378.56
15,261.97
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2020-21
Standalone Balance Sheet
as at 31st March, 2021 (Contd.)
Liabilities
Non-current Liabilities
(a) Financial Liabilities
(i)
Borrowings
(ii)
Lease Liabilities
(iii) 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
Notes
Page
As at
31st March, 2021
K crore
As at
31st March, 2020
K crore
22
23
24
25
26
27
272
275
276
276
277
285
13,168.52
9,825.33
209.72
12.09
135.36
261.38
155.70
237.03
14.60
307.25
222.46
161.34
13,942.77
10,768.01
28
23
285
276
5,595.70
27.39
6,212.31
41.82
(a) Total outstanding dues of micro enterprises and small enterprises
17.69
7.72
(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
276
285
277
285
1,119.31
3,042.60
133.47
25.37
472.53
994.15
2,621.62
107.67
62.02
502.87
10,434.06
10,550.18
Liabilities directly associated with Assets Classified as Held For Sale
18b.
266
113.56
1,036.32
Total Liabilities before Regulatory Deferral Account
Regulatory Deferral Account - Liability
TOTAL EQUITY AND LIABILITIES
24,490.39
22,354.51
19
268
Nil
Nil
42,868.95
37,616.48
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, 12th May, 2021
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
235
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Standalone Statement of Profit and Loss
for the year ended 31st March, 2021
Notes
Page For the year ended
31st March, 2021
K crore
For the year ended
31st March, 2020
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)
VII Profit/(Loss) Before Tax from Continuing Operations
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
286
290
32
33
291
291
5 & 6 246 & 250
34
292
19
19
19
7
39a.
35
35
35
35
35
268
268
268
252
299
293
293
293
293
293
IX Profit/(Loss) for the Year from Continuing Operations
X
Profit/(Loss) before tax from Discontinued Operations
18c.
266
6,180.59
1,248.96
7,429.55
504.30
2,186.38
258.18
649.07
7,726.39
582.62
8,309.01
457.59
2,765.61
214.00
610.71
1,518.77
1,510.38
668.89
765.68
685.75
756.69
6,551.27
7,000.73
878.28
258.00
Nil
41.62
299.62
1,177.90
Nil
(109.29)
Nil
(109.29)
1,068.61
205.31
(104.34)
Nil
Nil
100.97
967.64
(59.84)
1,308.28
(792.24)
(21.32)
162.16
(651.40)
656.88
235.00
(276.35)
(265.00)
(306.35)
350.53
18.61
73.08
(24.51)
(275.00)
(207.82)
558.35
(81.64)
Impairment Loss related to Discontinued Operations on remeasurement to
Fair Value
18c.
266
(160.00)
(361.00)
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.
266
XIII Profit/(Loss) for the Year
(101.48)
(72.17)
(173.65)
(46.19)
921.45
Nil
(32.41)
(32.41)
(410.23)
148.12
236
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2020-21
Standalone Statement of Profit and Loss
for the year ended 31st March, 2021 (Contd.)
Notes
Page For the year ended
31st March, 2021
K crore
For the year ended
31st March, 2020
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 Defined Benefit Plans
26
277
(b)
Equity Instruments classified at FVTOCI
(c)
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
293
293
XV Other Comprehensive Income/(Expenses) - Discontinued Operations
Add/(Less): Items that will not be reclassified to profit or loss
26
277
XVI Other Comprehensive Income/(Expenses) For The Year (Net of Tax)
XVII Total Comprehensive Income for the Year (XIII + XVI)
XVIII Basic and Diluted Earnings Per Equity Share (of ₹ 1/- each) (₹)
40
300
(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
16.83
17.63
155.87
Nil
(4.61)
185.72
(0.34)
185.38
1,106.83
1.99
2.64
(0.15)
2.49
(51.79)
(3.50)
(15.84)
0.77
17.40
(52.96)
0.20
(52.76)
95.36
3.23
1.44
(1.52)
(0.08)
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, 12th May, 2021
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
237
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Standalone Cash Flow Statement
for the year ended 31st March, 2021
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)
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)
Provision for standby litigation
Reversal of impairment of non-current investments and related obligation
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
238
For the year ended
31st March, 2021
K crore
For the year ended
31st March, 2020
K crore
1,068.61
(219.84)
350.53
(442.64)
668.89
(201.01)
Nil
(7.02)
(996.03)
1,543.68
(16.80)
(16.93)
Nil
(21.82)
(8.25)
11.00
2.43
30.49
109.29
(8.00)
160.00
0.10
(16.43)
317.31
18.83
(2.01)
0.07
(239.92)
(163.12)
(103.09)
57.00
(7.28)
(315.28)
685.75
(107.44)
(10.96)
(6.61)
(368.81)
1,546.53
(0.35)
(13.41)
(9.06)
(60.63)
(7.99)
17.00
6.05
2.85
Nil
(235.00)
361.00
(2.44)
1,250.02
2,098.79
1,796.48
1,704.37
(34.65)
(10.04)
6.93
(2.39)
9.25
141.11
123.64
(26.24)
1.18
(41.15)
740.68
(453.92)
1,644.87
908.32
2,612.69
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2020-21 Standalone Cash Flow Statement
for the year ended 31st March, 2021 (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
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)
Proceeds from sale of Strategic Engineering Division (Net) (Refer Note 18c)
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 issue of shares
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 liabilities
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, 2021
K crore
For the year ended
31st March, 2020
K crore
172.74
193.21
(2.68)
(14.93)
37.40
376.90
0.29
(277.60)
139.56
0.70
(12.66)
25.03
(80.47)
(24.05)
762.93
2,407.80
(80.03)
2,327.77
(913.49)
257.40
420.85
(4,801.23)
Nil
(203.08)
133.36
7.02
(6,514.95)
5,093.16
996.03
18.70
(0.01)
(5,506.24)
2,600.00
5,318.58
(2,107.27)
20,542.23
(21,157.79)
(1,442.76)
(419.24)
(171.00)
5.29
(30.99)
3,137.05
(41.42)
165.09
123.67
(229.49)
2,383.20
(74.40)
2,308.80
(705.05)
26.53
Nil
(284.11)
271.28
35.41
107.83
6.61
(3,259.41)
2,824.04
449.97
56.16
(0.25)
(470.99)
Nil
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
239
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Standalone Cash Flow Statement
for the year ended 31st March, 2021 (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
For the year ended
31st March, 2021
K crore
For the year ended
31st March, 2020
K crore
123.67
Nil
123.67
Nil
Nil
Nil
123.67
158.54
(1.05)
157.49
7.62
(0.02)
7.60
165.09
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, 12th May, 2021
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
240
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2020-21
Standalone Statement of Changes in Equity
for the year ended 31st March, 2021
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241
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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, 1913. The registered office of the Company is located at Bombay House, 24, Homi Mody Street,
Mumbai 400001, India. The Company is listed on the BSE Limited (BSE) and the 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. Generation (thermal, hydro, solar and wind), Transmission and Distribution.
2.
2.1
2.2
Significant Accounting Policies:
Statement of compliance
The Standalone 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 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
242
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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.
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.
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.
3.4
3.5
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.
243
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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 recorded in the statement
of profit and loss.
When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate
of its recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of
an impairment loss is recognised immediately in statement of profit or 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
Financial liabilities are subsequently measured at amortised cost using the effective interest method or FVTPL. 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
244
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
3.
Other Significant Accounting Policies (Contd.)
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.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if these are incurred for
the purpose of repurchasing in the near term. Financial liabilities at FVTPL are stated at fair value, with any gains or losses
arising on remeasurement recognised in the statement of profit and loss.
3.6.4 Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
statement of profit and loss.
3.6.5 Financial guarantee contracts
3.7
3.8
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.
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.
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.
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.
245
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
4.
Critical accounting estimates and judgements (Contd.)
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 Financial Statements.
The areas involving critical estimates or judgements are:
Estimations used for impairment of property, plant and equipments of certain cash generating units (CGU) - Note 5
Estimations used for fair value of unquoted securities and impairment 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 Note 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.
5.
Property, Plant and Equipments
Accounting Policy
Property, plant and equipments 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 equipments 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
equipments 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 equipments in respect of electricity business of the Company covered under Part B
of Schedule II of the Companies Act, 2013, has been provided on the straight line method at the rates 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.
246
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
5.
Property, Plant and Equipments (Contd.)
Estimated useful lives of the Regulated and Non-Regulated assets are as follows:
Type of assets
Hydraulic Works
Buildings-Plant
Buildings-Others
Coal Jetty
Railway Sidings, Roads, Crossings, etc.
Plant and Equipments (excluding Computers and Data Processing units)
Plant and Equipments (Computers and Data Processing units)
Transmission Lines, Cable Network, etc.
Furniture and Fixtures
Office equipments
Motor Cars
Motor Lorries, Launches, Barges etc.
Helicopters
Useful lives
40 years
5 to 40 years
25 to 60 years
25 years
25 to 40 years
5 to 40 years
3 years
25 to 40 years
10 to 40 years
5 years
5 years
25 to 40 years
25 years
Derecognition
An item of Property, plant and equipments is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipments is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognised in the statement of profit and loss.
Impairment
Impairment of tangible and intangible assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and
its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or group of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices
for publicly traded companies or other available fair value indicators.The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the
individual assets are allocated.
Impairment losses of tangible and intangible assets are recognised in the statement of profit and loss.
247
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
5.
B.
Property, Plant and Equipments (Contd.)
Right-of-Use Assets (Refer Note 23)
Description
Cost
Balance as at 1st April, 2020
Additions
Disposals
Balance as at 31st March, 2021
Accumulated depreciation and impairment
Balance as at 1st April, 2020
Depreciation Expense
Disposals
Balance as at 31st March, 2021
Net carrying amount
As at 31st March, 2021
Description
Cost
Balance on transition to Ind AS 116 as at 1 April 2019
Additions during the year
Reclassified as held for sale
Balance as at 31st March, 2020
Accumulated depreciation and impairment
Balance as at 1st April, 2019
Depreciation Expense
Balance as at 31st March, 2020
Net carrying amount
As at 31st March, 2020
Description
Net carrying amount
A. Owned Assets
B. Right-of-Use Assets
Total
Leasehold Land and
Plant and
Sub-surface rights
Equipments
420.95
Nil
(48.72)
372.23
35.21
18.35
(19.96)
33.60
338.63
11.43
Nil
Nil
11.43
4.57
4.57
Nil
9.14
2.29
Leasehold Land and
Plant and
Sub-surface rights
Equipments
395.56
69.31
(43.92)
420.95
Nil
35.21
35.21
11.43
Nil
Nil
11.43
Nil
4.57
4.57
` crore
Total
432.38
Nil
(48.72)
383.66
39.78
22.92
(19.96)
42.74
340.92
` crore
Total
406.99
69.31
(43.92)
432.38
Nil
39.78
39.78
385.74
6.86
392.60
As at
31st March, 2021
As at
31st March, 2020
` crore
` crore
7,859.83
340.92
8,200.75
7,581.47
392.60
7,974.07
249
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 6.
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 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.
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
Licences and franchises
Useful lives
5 years
5 years
5 years
250
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
6.
Intangible Assets (Contd.)
Description
Computer
softwares $
Copyrights, patents,
other intellectual
property rights,
services and
operating rights #
Licences and
franchises $
` crore
Total
250.62
18.26
(0.37)
268.51
188.40
25.09
(0.37)
213.12
` crore
Total
234.80
15.82
250.62
150.91
37.49
188.40
0.26
Nil
(0.26)
Nil
0.26
Nil
(0.26)
Nil
0.26
Nil
0.26
0.26
Nil
0.26
Nil
62.22
249.79
18.26
(0.11)
267.94
187.64
25.04
(0.11)
212.57
55.37
0.57
Nil
Nil
0.57
0.50
0.05
Nil
0.55
0.02
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
Nil
55.39
Computer
softwares $
Copyrights, patents,
other intellectual
property rights,
services and
operating rights #
Licences and
franchises $
Cost
Balance as at 1st April, 2020
Additions
Disposals
Balance as at 31st March, 2021
Accumulated amortisation and impairment
Balance as at 1st April, 2020
Amortisation expense
Disposals
Balance as at 31st March, 2021
Net carrying amount
As at 31st March, 2021
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
Notes:
# Internally generated intangible assets.
$ Other than internally generated intangible assets.
Depreciation/Amortisation - Continuing Operations:
Depreciation on Tangible assets
Depreciation on Right-of-Use Assets
Amortisation on Intangible assets
Total
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
620.88
22.92
25.09
668.89
` crore
608.48
39.78
37.49
685.75
251
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
7.
Non-Current Investments
As at
31st March,
2021
As at
31st March,
2020
Quantity
Quantity
Face Value
(in `
unless stated
otherwise)
As at
31st March,
2021
As at
31st March,
2020
` crore
` 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 9 below) 800,04,20,000
10,00,000
Bhira Investments Pte. Ltd.
800,04,20,000
10,00,000
10
10
10
10
USD 1
Euro 1
10
USD 1
USD 1
10
10
10
10
2
11.07
11.07
11.07
11.07
37.09
1,116.83
8,593.25**
4.10
4.08
0.02
255.20
607.95
200.93
10.00
8.05**
40.10
37.09
1,116.83
8,593.25**
4.10
4.08
0.02
255.20
607.95
200.93
10.00
8.05**
0.11
Nil*
Nil*
7,46,250
50,000
7,46,250
50,000
4,70,07,350
4,70,07,350
12,91,53,344
12,91,53,344
53,65,20,000
28,15,20,000
1,00,00,000
1,00,00,000
80,50,000
80,50,000
4,01,00,000
1,10,000
Nil
Nil
104,51,07,715
104,51,07,715
10
1,054.03
1,054.03
2,29,77,567
2,29,77,567
6,77,30,650
10,73,000
6,77,30,650
10,73,000
100
USD 1
100
15,30,00,000
10,20,00,000
15,30,00,000
1,10,00,000
1,15,65,090
50,000
50,000
50,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
10
10
10
10
10
10
10
10
322.98
577.55**
68.68
178.95
127.52
255.04
10.95
11.57
0.05
0.05
0.05
322.98
577.55**
68.68
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
13,485.02
12,860.85
4,009.14
9,475.88
4,009.14
8,851.71
Bhivpuri Investments Ltd.
Tata Power Green Energy Ltd.
Khopoli Investments Ltd.
Trust Energy Resources Pte. Ltd.
Tata Power Delhi Distribution Ltd.
(Refer Note 8 below)
TP Ajmer Distribution Ltd.
Tata Power Jamshedpur Distribution Ltd.
TP Renewable Microgrid Ltd. (formerly
Industrial Power Utility Ltd.)
TCL Ceramics Ltd.(Refer Note 6 Below)
(formerly Tata Ceramics Ltd.)
Tata Power Renewable Energy Ltd. (Refer
Note 9 below)
Tata Power Solar Systems Ltd.
Tata Power International Pte. Ltd.
Af-Taab Investment Co. Ltd.
TP Central Odisha Distribution Ltd. (Refer
Note 7 below)
TP Southern Odisha Distribution Ltd (Refer
Note 7 below)
TP Western Odisha Distribution Ltd (Refer
Note 7 below)
Supa Windfarm Ltd.
TP Kirnali Solar Ltd.
TP Solapur Solar Ltd.
TP Saurya Ltd.
TP Akkalkot Renewable Energy Ltd
** Less: Impairment in the value of Investments (Refer
Note 11 below)
Carried forward…….
9,486.95
8,862.78
252
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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
Unquoted
Yashmun Engineers Ltd.
The Associated Building Co. Ltd.
Tata Projects Ltd.
As at
31st March,
2021
As at
31st March,
2020
Quantity
Quantity
Face Value
(in `
unless stated
otherwise)
As at
31st March,
2021
` crore
9,486.95
As at
31st March,
2020
` crore
8,862.78
N.A.
N.A.
N.A.
N.A.
3,895.00
11,183.89
3,895.00
7,035.89
15,078.89
10,930.89
24,565.84
19,793.67
19,200
1,400
19,200
1,400
9,67,500
9,67,500
100
900
100
0.01
0.13
85.01
107.43
192.58
0.01
0.13
85.01
107.43
192.58
Dagachhu Hydro Power Corporation Ltd.
10,74,320
10,74,320
Nu 1,000
(C)
Investment in Joint Ventures
Investment in Equity Shares fully Paid-up
Unquoted
Tubed Coal Mines Ltd.
1,01,97,800
1,01,97,800
10
10.20**
10.20**
Nil
Nil
ZMW 1
Nil*
Nil*
Itezhi Tezhi Power Corporation
(Refer Note 9 below)
Mandakini Coal Company Ltd.
(Refer Note 9 below)
Powerlinks Transmission Ltd.
(Refer Note 9 below)
3,93,00,000
3,93,00,000
23,86,80,000
23,86,80,000
Industrial Energy Ltd. (Refer Note 9 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
10
10
10
10
10
39.30**
39.30**
238.68
492.84
Nil*
43.42**
824.44
59.50
764.94
238.68
492.84
Nil*
43.42**
824.44
67.50
756.94
Sub-total I (A) + I (B) + I (C)
25,523.36
20,743.19
Carried forward…….
25,523.36
20,743.19
253
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
7.
Non-current Investments (Contd.)
II Investments designated at Fair Value through
Other Comprehensive Income
Brought forward…….
As at
31st March,
2021
As at
31st March,
2020
Quantity
Quantity
Face Value
(in `
unless stated
otherwise)
As at
31st March,
2021
` crore
25,523.36
As at
31st March,
2020
` crore
20,743.19
Investment in Equity Shares fully Paid-up
Quoted
Voltas Ltd.
Tata Consultancy Services Ltd.
Tata Teleservices (Maharashtra) Ltd.
Bharti Airtel Ltd.
Unquoted
Tata Services Ltd.
Tata Industries Ltd. #
Tata Sons Pvt. Ltd. #
Haldia Petrochemicals Ltd.
Tata International Ltd. (Refer Note 8 below )
Tata Teleservices Ltd.
Others
2,33,420
766
Nil
62,919
2,33,420
766
Nil
Nil
1,112
58,28,126
6,673
2,24,99,999
5,250
Nil
1,112
58,28,126
6,673
2,24,99,999
3,500
Nil
1
1
10
10
1,000
100
1,000
10
1,000
10
23.39
0.24
Nil*
3.25
26.88
Nil
102.69
241.95
56.48
8.67
Nil*
0.50
410.29
11.13
0.14
Nil*
Nil
11.27
Nil
102.69
241.95
56.48
3.75
Nil*
Nil
404.87
437.17
416.14
III Investments carried at Amortised Cost
Investment in Subsidiaries
Investment in Preference Shares fully Paid-up
(A)
TCL Ceramics Ltd.(Refer note 6 below)
(formerly Tata Ceramics Ltd.)
(B) Government Securities (Unquoted) fully Paid-up
(C) Statutory Investments
Contingencies Reserve 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.).
Nil
Nil
100
Nil*
Nil
3.03
Nil*
Nil
40.00
164.84
127.87
167.87
167.87
26,128.40
21,327.20
# 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.
161.01
Aggregate Market Value of Quoted Investments
22.34
Aggregate Carrying Value of Quoted Investments
21,304.86
Aggregate Carrying Value of Unquoted Investments (Net)
Aggregate amount of impairment in value of Investments
4,076.64
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’.
236.28
37.95
26,090.45
4,068.64
Notes:
1.
2.
3.
4.
5.
254
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
7.
6.
7.
8.
9.
Non-current Investments (Contd.)
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 had 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 financial statements. The impact of the
sale on the Company's Standalone financial statement will not be significant.
During the year ended 31st March, 2021, the Company has acquired 51 % stake in TP Central Odisha Distribution Limited
('TPCODL'), TP Western Odisha Distribution Limited ('TPWODL') and TP Southern Odisha Distribution Limited ('TPSODL') for
` 178.95 crore, ` 255.04 crore and ` 127.52 crore respectively. TPCODL, TPWODL and TPSODL are the licensees to carry out
the function of distribution and retail supply of electricity covering the distribution circles of Central, Western and Southern
Odisha for a period of 25 years effective from 1st June, 2020, 1st January, 2021 and 1st January, 2021 respectively.
During the year, the Company has received bonus equity shares 25,50,00,000 Nos from Tata Power Delhi Distribution Ltd
and subscribed to right issue of equity shares 1,750 Nos from Tata International Ltd.
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, 2021
31st March, 2020
Subsidiary
Subsidiary
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Nos.
Nos.
4,08,02,14,200
3,10,25,44,200
25,81,14,935
25,81,14,935
4,52,500
4,52,500
2,00,43,000
2,00,43,000
23,86,80,000
23,86,80,000
25,13,48,400
25,13,48,400
* Classified as Asset Held For Sale (Refer Note 18a.)
10.
The Board of Directors of the Company in its meeting held on 12th August, 2020, have approved the Composite scheme of
Arrangement for merger of Coastal Gujarat Power Limited and Tata Power Solar Systems Limited (wholly owned subsidiaries) with
the Company along with the capital reorganisation after the merger. The Board of Directors have also approved the Scheme of
Amalgamation for merger of Af-taab Investment Company Limited (a wholly owned subsidiary) with the Company. The aforesaid
schemes have been approved by shareholders of the Company and are subject to the necessary approvals from regulatory
authorities including National Company Law Tribunal. Post necessary approvals, the merger will be accounted in accordance with
Appendix C of Ind AS 103 - 'Business combinations of entities under common control' using pooling of interest method.
11.
(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.
255
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7.
Non-current Investments (Contd.)
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 ` 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 ₹ 1,625 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 10.50% p.a. (31st March, 2020: 10.87% p.a.) and investment in coal mines and related infrastructure companies is
14.11% p.a. (31st March, 2020: 12.68% 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. During
the previous year, the Company has recognised a reversal of ` 235.00 crore comprising of reversal of ` 103.74 crore
towards financial guarantee obligation and impairment loss reversal of `131.26 crore which was disclosed as an
exceptional item in the statement of profit and loss.
256
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
8.
Trade Receivables
(Unsecured unless otherwise stated)
Current
Considered Good - Secured (Refer Note 1 below)
Considered Good (Refer Note 2 below)
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
245.75
689.41
31.51
966.67
55.80
910.87
234.48
886.82
30.09
1,151.39
42.71
1,108.68
Note:
1. Company holds security deposits of ` 245.75 crore (31st March, 2020 - ` 234.48 crore) in respect of electricity receivables.
2.
The carrying amount of trade receivable of ` 205.00 crore does not include receivables which are subject to a factoring
arrangement. Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange
for cash on non recourse basis. The Company, therefore, has derecognised the said receivables under the factoring
arrangement.
8.1
Trade Receivables
As at 31st March, 2021, ` 495.13 crore (31st March, 2020 - ` 639.18 crore) is due from Brihanmumbai Electric Supply &
Transport Undertaking, Maharashtra State Electricity Transmission Company Ltd.,Tamil Nadu Generation and Distribution
Corporation and Tata Steel Ltd. which represents Company's large customers who owe more than 5% of the total balance
of trade receivables.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based
on a provision matrix. The 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
Balance at the end of the year
Expected Credit loss (%)
As at
31st March, 2021
0.28%
0.20%
0.37%
15.28%
As at
31st March, 2020
0.00%
0.03%
0.10%
5.92%
As at
31st March, 2021
As at
31st March, 2020
` crore
515.68
210.85
95.64
144.50
` crore
550.31
340.41
50.04
210.63
As at
31st March, 2021
As at
31st March, 2020
` crore
42.71
13.09
55.80
` crore
46.75
(4.04)
42.71
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.
257
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
35.90
32.01
67.91
32.01
35.90
450.00
54.38
504.38
54.38
450.00
4.28
490.18
5.48
5.48
1,518.41
12.00
1,530.41
12.00
1,518.41
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
Total
1,523.89
550.09
258
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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
` crore
Maximum Principal Amount
Outstanding during the year
(excluding interest accrued)
31st March,
2021
31st March,
2020
31st March,
2021
31st March,
2020
Chirasthaayee Saurya Ltd.
Coastal Gujarat Power Ltd.
TP Wind Power Limited (formerly Indo Rama Renewables
Jath Ltd.)
Industrial Energy Ltd.
Maithon Power Ltd.
Mandakini Coal Company Ltd. $
Nelito Systems Ltd. $
(ceased to be an Associate w.e.f. 6th June, 2019)
Powerlinks Transmission Ltd.
Prayagraj Power Generation Company Ltd
Tata Power Green Energy Ltd.
Tata Power Renewable Energy Ltd.
Tata Power Solar Systems Ltd
Tata Power Trading Company Ltd.
TCL Ceramics Ltd. $
TP Ajmer Distribution Ltd.
TP Kirnali Ltd.
TP Kirnali Solar Ltd.
TP Renewable Microgrid Ltd. (formerly Industrial Power
Utility Ltd)
TP Saurya Ltd.
TP Solapur Solar Ltd.
Vagarai Windfarm Ltd.
Walwhan Solar MP Ltd.
Walwhan Solar TN Ltd.
Welspun Renewable Energy Pvt Ltd.
Subsidiary
Subsidiary
Subsidiary
Joint Venture
Subsidiary
Joint Venture
Associate
Joint Venture
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
255.00
182.00
8.00
Nil
Nil
54.39
Nil
Nil
Nil
29.82
789.60
509.83
Nil
12.00
95.00
4.00
24.70
27.95
1.00
33.00
8.50
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
54.39
1.27
Nil
Nil
0.07
450.00
Nil
Nil
12.00
95.00
Nil
Nil
1.55
Nil
Nil
Nil
Nil
Nil
Nil
255.00
740.70
8.00
2.60
Nil
54.39
Nil
Nil
Nil
37.07
1,974.50
586.82
30.00
12.00
115.00
4.00
40.00
39.74
1.00
33.00
8.50
Nil
Nil
207.00
Nil
252.00
Nil
Nil
200.00
54.39
1.27
1.00
13.43
0.07
450.00
100.00
80.00
17.69
190.00
Nil
Nil
1.55
Nil
Nil
Nil
15.09
81.00
200.00
Itezhi Tezhi Power Corporation #
Joint Venture
18.59
18.59
18.59
18.59
2,034.79
614.28
Total
Notes:
$ Provided for.
# Reclassified as held for sale (including interest accrued).
2,053.38
632.87
259
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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, 2021
As at
31st March, 2020
` crore
529.57
36.52
566.09
` crore
553.03
31.89
584.92
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 ` 84.66 crore (31st March, 2020 - ` 88.91 crore) as income for finance lease during the year ended 31st March, 2021.
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
` crore
Minimum Lease
Payments as at
31st March, 2021
Minimum Lease
Payments as at
31st March, 2020
113.49
109.62
108.46
107.36
105.56
544.49
535.95
1,080.44
514.35
566.09
111.96
108.66
107.66
106.57
105.57
540.42
630.10
1,170.52
585.60
584.92
Lessor - Operating Lease
The Company 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 Company has recognized an amount of ` 13.29 crore (31st March,
2020 - ` 11.16 crore) as rental income for operating lease during the year ended 31st March, 2021.
260
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
11. Other Financial Assets - At Amortised Cost (Unless otherwise stated)
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, 2021
` crore
As at
31st March, 2020
` crore
1.24
1.24
1.24
Nil
1.24
1.24
1.24
Nil
Advance towards Equity (Refer Note 1a,1b,1c below)
204.16
178.50
Balances with Banks:
In Deposit Accounts (with remaining maturity of
more than twelve months) (Refer Note 2 below)
Receivable on sale of Strategic Engineering Division
(at fair value through profit or loss) (Refer Note 18c)
(Refer Note 3 below)
Other Assets
Total
0.96
365.99
48.77
3.14
Nil
41.13
619.88
222.77
Notes:
1a. Odisha Electricity Regulatory Commission ('OERC') had issued a request for proposal (RFP) for sale of controlling interest in distribution
business of North Electricity Supply Utility of Odisha. The Company had bid for it and has been identified as the successful bidder. As per the
requirement of RFP, the Company had deposited ` 191.24 crore with OERC. Pending signing of sale agreements for the completion of sale,the
amount deposited is disclosed as non- current financial assets and will be converted to equity after signing of sale agreements.
1b. During the year, the company paid an advance of ` 12.92 crore for subscription of equity shares of TP Akkalkot Renewable Ltd. Pending
allotment of the shares as on 31st March, 2021, it has been disclosed as non-current financial asset.
1c. During the year, pursuant to the vesting order by the OERC for the completion of sale, the amount deposited of ` 178.50 crore with OERC in the
previous year for the acquisition of Central Electricity Supply Utility of Odisha has been converted to equity shares.
2. Balances with Banks held as Margin Money Deposits against Guarantees.
3. Represents contingent consideration on sale of SED, receivable by the company on achievement of certain milestone.
As at
31st March, 2021
` crore
As at
31st March, 2020
` 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
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
Other Receivables
Balances with Banks: (Refer Note 1 below)
In Deposit Accounts (with remaining maturity of
less than twelve months)
Total
Note:
1 Balances with Banks held as Margin Money Deposits against Guarantees.
0.64
3.48
6.63
47.28
0.55
1.40
59.98
1.95
58.03
58.13
0.03
4.19
62.35
120.38
0.50
3.51
6.85
3.09
0.55
1.40
15.90
1.95
13.95
221.45
0.18
Nil
221.63
235.58
261
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 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) Balances with Government Authorities
Unsecured, considered good
Advances
Amount Paid Under Protest
VAT/Sales Tax Receivable
(iii) Others
Unsecured, considered good
Prepaid Expenses
Recoverable from Consumers
Total
Current
(i) Balances with Government Authorities
Unsecured, considered good
Advances
VAT/Sales Tax Receivable
Doubtful
Less: Allowance for Doubtful Advances
(ii) Others
Unsecured, considered good
Prepaid Expenses
Advances to Vendors
Other Advances
Doubtful
Less: Allowance for Doubtful Advances
Total
262
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
135.00
135.00
135.00
135.00
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
8.87
0.11
8.98
0.11
8.87
0.61
0.33
7.81
8.75
5.06
0.12
5.18
0.12
5.06
0.90
16.22
25.73
42.85
0.82
1,161.06
1,161.88
0.89
960.84
961.73
1,179.50
1,009.64
6.83
7.89
0.37
15.09
0.37
14.72
93.39
57.49
26.25
0.19
177.32
0.19
177.13
191.85
4.86
Nil
0.46
5.32
0.46
4.86
38.58
102.07
0.75
0.13
141.53
0.13
141.40
146.26
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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, 2021
` crore
As at
31st March, 2020
` crore
226.36
89.13
129.19
0.28
289.75
60.62
133.80
0.27
187.98
150.57
632.94
635.01
1. Refer Note 22 for Inventories pledged as security for liabilities.
2. During the year ended 31st March, 2021, the Company has recognised ` 1.67 crore (31st March, 2020 - ` 6.83 crore) as an expense for the write down
of unserviceable stores and spares inventory.
15. Current Investments
Investments carried at Fair Value through Profit and Loss
Mutual Funds (Unquoted)
Total
Note:
As at
31st March, 2021
As at
31st March, 2020
` crore
` crore
240.01
240.01
20.00
20.00
Aggregate Carrying Value of Unquoted Investments.
240.01
20.00
263
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16. Cash and Cash Equivalents - At Amortised Cost
Accounting Policy
Cash and cash equivalents 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 comprise 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.
Balances with Banks:
In Current Accounts
Cash and Cash Equivalents as per Balance Sheet
Bank Overdraft
Cash and Cash Equivalents as per Statement of Cash Flows - Continuing Operations
(i) Balances with Banks:
In Current Accounts
(ii) Book Overdraft
Cash and Cash Equivalents as per Statement of Cash Flows - Discontinued Operations
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
123.67
123.67
Nil
123.67
Nil
Nil
Nil
158.54
158.54
(1.05)
157.49
7.62
(0.02)
7.60
Cash and Cash Equivalents as per Statement of Cash Flows
123.67
165.09
Reconciliation of Liabilities from Financing Activities
Particulars
As at
1st April,
2020
Cash flows
Proceeds
Repayment
Non-cash
Transactions
Changes
related to
Discontinued
Operations
` crore
As at
31st March,
2021
Non-current Borrowings (including Current
Maturities of Non-current Borrowings)
Current Borrowings (excluding Bank Overdraft)
Lease liabilities
Total
11,589.35
6,211.26
278.85
18,079.46
5,318.58
20,542.23
Nil
25,860.81
(2,107.27)
(21,157.79)
(30.99)
(23,296.05)
57.83
Nil
Nil
57.83
97.58
Nil
(10.75)
86.83
14,956.07
5,595.70
237.11
20,788.88
Particulars
As at
1st April,
2019
Cash flows
Proceeds
Repayment
Non-cash
Transactions
Reclassified
as part of
Discontinued
Operations
` crore
As at
31st March,
2020
Non-current Borrowings (including Current
Maturities of Non-current Borrowings)
10,720.72
3,403.59
(2,568.35)
28.59
Current Borrowings (excluding Bank Overdraft)
6,729.61
30,776.85
(31,295.20)
225.00
Nil
(11.78)
17,675.33
34,180.44
(33,875.33)
28.59
70.43
18,079.46
4.80
Nil
65.63
11,589.35
6,211.26
278.85
Nil
Nil
Lease liabilities
Total
264
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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, 2021
` crore
As at
31st March, 2020
` crore
Nil
19.00
19.00
2.00
18.40
20.40
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 equipments 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 financial statements mainly include amounts for continuing operations, unless
otherwise mentioned.
Land (Refer Note (i) below)
Building and Plant and Equipments (Refer Note (ii,iii and iv) below)
Investments carried at Fair Value through Other Comprehensive Income
Investments carried at Cost in Associates and Joint Ventures
Loans and other receivables from Joint Venture
Transmission Lines - Capital Work in Progress (Refer Note (v) below)
Assets of Discontinued Operations (Refer Note 18c)
Total
Notes:
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
301.58
8.67
178.68
275.75
22.74
9.31
Nil
796.73
301.66
8.67
22.81
275.75
22.74
127.70
1,880.07
2,639.40
(i) During the year, the Company sold Hadapsar land at the sale value of ` 26.44 crore (Book Value ` 0.08 crore) which was classified as held for sale.
The resultant gain of ` 26.36 crore has been disclosed in statement of profit and loss under Other Income.
(ii) During the previous year, the Company sold Metropolitan building at the sale value of ` 13.90 crore (Book Value ` 0.89 crore) The resultant gain
of ` 13.01 crore has been disclosed in the statement of proft and loss.
265
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18a. Assets Classified as Held For Sale (Contd.)
(iii) During the previous year, the Company has reclassified following assets from held for sale to Property, Plant and Equipments :
(a)
Building at Erangal ` 0.23 crore.
(b) Oil Tankage unit at Trombay (Land ` 0.04 crore, Building and Plant and Equipments ` 4.68 crore).
(iv) During the previous year, the Company has classified Helicopter (Book Value ` 0.17 crore) from Property, Plant and Equipments to held for sale.
(v) During the previous year, Maharashtra Electricity Regulatory Commission ('MERC') had ordered termination of Vikhroli Transmission Lines project,
carried out by the Company and decided to invite fresh bids for completion of the project. MERC had 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.During the year, the
Company has received an amount of ` 118.27 crore against the said project.
18b. Liabilities directly associated with Assets Classified as Held For Sale
Liabilities of Discontinued Operations
Advance received for land classified as held for sale
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
Nil
113.56
113.56
1,032.07
4.25
1,036.32
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 ` 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. On 31st October, 2020, the
Company has completed the sale of its SED to TASL and has received upfront consideration of ` 597.00 crores (net of borrowings of
` 537.00 crore transferred to TASL) after certain adjustments as specified in the scheme.
Results of Strategic Engineering Division for the year are presented below:
Particulars
Income
Revenue from Operations
Other Income
Total Income
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 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)
266
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
` crore
193.63
23.52
217.15
139.28
52.66
24.91
60.14
276.99
(59.84)
(160.00)
(101.48)
(72.17)
(173.65)
(46.19)
(0.34)
Nil
(46.53)
343.77
Nil
343.77
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)
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
18c. Assets Classified as Held For Sale - Discontinued Operations (Contd.)
Major classes of Assets and Liabilities of Strategic Engineering Division which was classified as held for
sale are as follows:
Particulars
Assets
Non-Current Assets
Property, Plant and Equipments
Capital Work-in-Progress
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
Less: 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
` 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
Note:
During the year the Company had reassessed the fair value of consideration receivable from TASL and had recognised an
impairment loss of ` 160.00 crore (31st March, 2020, ` 361.00 crore) in the Standalone financial statements. The fair value
on consideration had been determined based on the expected value of the consideration using discounted present value
technique. The fair value had 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:
Particulars
From 01 April 2020
to 31st October, 2020
For the year ended
31st March, 2020
Net Cash Flow from/(used in) in Operating Activities
Net Cash Flow from/(used in) in Investing Activities
Net Cash Flow from/(used in) 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 (Closing Balance)
Less: Transferred on sale of Strategic Engineering Division
Total of cash and cash equivalents (Net)
` crore
286.62
(32.30)
(85.62)
168.70
7.60
176.30
(176.30)
Nil
` crore
127.80
(44.99)
(81.32)
1.49
6.11
7.60
Nil
7.60
267
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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 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, 2021
` crore
As at
31st March, 2020
` crore
Nil
Nil
573.60
573.60
258.32
258.32
Rate Regulated Activities
(i) As per Ind AS 114 - 'Regulatory Deferral Accounts', the business of electricity distribution is a Rate Regulated activity
wherein Maharashtra Electricity Regulatory Commission ('MERC'), determines Tariff to be charged from consumers
based on prevailing regulations.
MERC Multi Year Tariff Regulations, 2019 ('MYT Regulations'), is applicable for the period beginning from 1st April, 2020
to 31st March, 2024. These regulations require MERC to determine tariff in a manner wherein the Company can recover
its fixed and variable costs including assured rate of return on approved equity base, from its consumers. The Company
determines the Revenue, Regulatory Assets and Liabilities as per the terms and conditions specified in MYT Regulations.
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities is as follows:
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
(A)
258.32
999.00
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) Billed 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/(Payable to) 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)
(B)
(C)
(D)
(E)
(F)
(G)
(A + B + C + D + E + F + G)
1,885.99
892.10
(2,520.09)
Nil
258.00
3.00
12.66
Nil
41.62
Nil
573.60
2,212.00
779.00
(3,460.00)
(323.24)
(792.24)
24.00
(15.28)
(21.32)
162.16
(98.00)
258.32
Note:
During the previous year, pursuant to receipt of true-up tariff order from the MERC for the year 2017-18 and 2018-19, the Company had recognised a
charge of ` 21.32 crore to revenue from operations.
268
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
20a. Share Capital
Authorised
Equity Shares of ` 1/- each
At the beginning of the year
Add: Increase during the year
Outstanding at the end of the year
Cumulative Redeemable Preference Shares of ` 100/- each
Issued
Equity Shares [including 28,32,060 shares (31st March, 2020 - 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,
2020 - 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 ` 0.01 crore (31st March, 2020 - ` 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
As at 31st March, 2021
As at 31st March, 2020
Number
` crore
Number
` crore
350,00,00,000
200,00,00,000
2,29,00,000
350.00 350,00,00,000
200.00
Nil
550.00
229.00
579.00
2,29,00,000
350.00
Nil
350.00
229.00
579.00
325,22,67,007
325.23 276,17,00,970
276.17
319,53,39,547
319.54 270,47,73,510
270.48
16,52,300
0.04
319.50
0.06
319.56
16,52,300
0.04
270.44
0.06
270.50
(i)
Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:
Equity Shares
At the beginning of the year
Issued during the year [Refer Note 21(5)]
Outstanding at the end of the year
As at 31st March, 2021
` crore
Number
As at 31st March, 2020
` crore
Number
270,64,25,810
49,05,66,037
319,69,91,847
270.50 270,64,25,810
270.50
49.06
Nil
Nil
319.56 270,64,25,810
270.50
(ii)
Terms/rights attached to Equity Shares
The Company has issued only one class of Equity Shares having a par value of ` 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
As at 31st March, 2021
As at 31st March, 2020
Number
% Holding
Number
% Holding
Equity Shares of ` 1/- each fully paid
Tata Sons Pvt. Ltd.
Life Insurance Corporation of India
Matthews Pacific Tiger Fund
ICICI Prudential Bharat Consumption Funds *
144,45,13,021
16,41,25,329
14,93,84,497
8,91,12,249
45.21
5.14
4.68
2.79
95,39,46,984
17,15,81,237
18,03,16,487
21,83,11,309
* Shareholding has been reported based on common Permanent Account Number
35.27
6.34
6.67
8.07
269
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20b. Unsecured Perpetual Securities
11.40% Unsecured Perpetual Securities
Movement during the year
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
1,500.00
1,500.00
Nil
Nil
1,500.00
1,500.00
In an earlier year, the Company raised ` 1,500 crore through issue of Unsecured Perpetual Securities (the "Securities"). These
Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. 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. Subsequent to the year
end, pursuant to debenture trust deed dated 23rd June, 2011, the Company has exercised the call option to redeem the
Securities on 2nd June, 2021 along with final interest.
21. Other Equity
General Reserve
Securities Premium
Opening Balance
Add: Increase on issue of shares during the year (Refer Note 5 below)
Closing Balance
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
Transfer from Debenture Redemption Reserve (Net)
Transfer from Equity Instrument through Other Comprehensive Income
(Refer Note 3 below)
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
Closing Balance
270
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
3,853.98
3,853.98
5,634.98
2,550.94
8,185.92
1.85
61.66
660.08
296.95
Nil
296.95
3,027.08
921.45
Nil
Nil
11.88
(419.24)
(171.00)
343.09
3,370.17
5,634.98
Nil
5,634.98
1.85
61.66
660.08
421.95
(125.00)
296.95
2,954.12
148.12
125.00
356.25
(33.42)
(351.99)
(171.00)
72.96
3,027.08
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
21. Other Equity (Contd.)
Equity Instruments through Other Comprehensive Income
Opening Balance
Add/(Less): Transfer to Retained Earnings (Refer Note 3)
Change in Fair Value of Equity Instruments through Other Comprehensive Income
Change in Fair Value of Equity Instruments classified as held for sale
Closing Balance
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
(45.11)
Nil
17.63
155.87
128.39
330.48
(356.25)
(3.50)
(15.84)
(45.11)
16,559.00
13,491.47
Notes:
1. Includes gain on fair valuation of land which is not available for distribution ` 222.31 crore (31st March, 2020 - ` 222.31 crore).
2. The shareholders of the Company in their meeting held on 30th July, 2020 approved final dividend of ` 1.55 per share
aggregating ` 419.24 crore for the financial year 2019-20. The said dividend was paid to the holders of fully paid equity
shares on 3rd August, 2020.
3. Represents gain/(loss) on sale of certain investments carried at fair value through other comprehensive income transferred to
Retained Earnings.
4. In respect of the year ended 31st March, 2021, 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 Standalone 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 ` 495.72 crore.
5. During the year, the shareholders in the Annual General Meeting dated 30th July, 2020 has approved the issuance of
49,05,66,037 equity shares of the face value of ` 1 each at ` 53 per equity share for an amount aggregating to ` 2,600
crores to Tata Sons Pvt Ltd on preferential basis.The Company has allotted the said equity shares to Tata Sons Pvt Ltd on
13th August, 2020.
Nature and purpose of reserves:
General Reserve
General Reserve is used to transfer profits from retained earnings for appropriation purposes. The amount is to be utilised
in accordance with the provision of the Companies Act, 2013.
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 creating additional debenture redemption reserve (DRR) from the
effective date of amendment. 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 law.
271
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21. Other Equity (Contd.)
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 equity instruments are disposed off.
22. Non-current Borrowings - At Amortised Cost
(i) Unsecured
Redeemable Non-Convertible Debentures
(a) 10.75% Series 2072
(b) 7.77% Series 2031
(c) 7.77% Series 2030
(d) 7.77% Series 2029
(e) 7.05% Series 2026
(f) 9.00% Series 2025
(g) 7.99% Series 2024
(h) 6.18% Series 2024
(i) 8.84% Series 2023
(j) 8.21% Series 2023
(k) 7.60% Series 2023
(l) 6.00% Series 2023
(m) 8.84% Series 2022
Term Loans from Banks
ICICI Bank
(n)
(o) Axis Bank
(p) First Abu Dhabi Bank
(q) Sumitomo Mitsui Banking Corporation
Deferred Payment Liabilities
(r) 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
ICICI Bank
Term Loans from Banks
(e) HDFC Bank
(f )
(g) Kotak Mahindra Bank
(h) State Bank of India
(i) Canara Bank
(j) Axis Bank
Term Loans from Others
(k) Housing Development Corporation Ltd
(l) Asian Development Bank
(m) Indian Renewable Energy Development Agency Ltd.
As at 31st March, 2021
As at 31st March, 2020
Non-current
Current* Non-current
Current*
Maturities
` crore
Maturities
` crore
1,496.25
197.47
148.09
148.09
495.74
249.81
898.16
396.64
748.43
300.07
995.39
985.96
499.55
7,559.65
Nil
Nil
65.74
283.53
349.27
(A)
Nil
7,908.92
180.95
73.92
80.00
209.80
544.67
1,450.44
386.61
487.25
1,078.07
55.00
290.36
3,747.73
967.20
Nil
Nil
967.20
Nil
Nil
Nil
Nil
Nil
Nil
300.00
Nil
Nil
Nil
Nil
Nil
Nil
300.00
225.00
166.67
67.00
215.00
673.67
2.83
976.50
16.25
16.00
20.00
Nil
52.25
140.00
120.00
161.48
75.64
5.00
226.67
728.79
30.00
Nil
Nil
30.00
1,494.40
Nil
Nil
Nil
Nil
249.74
1,197.21
Nil
749.12
Nil
Nil
Nil
499.40
4,189.87
223.56
166.58
132.54
199.70
722.38
Nil
Nil
Nil
Nil
Nil
Nil
300.00
Nil
Nil
Nil
Nil
Nil
Nil
300.00
337.50
166.67
67.00
100.00
671.17
2.83
4,915.08
5.67
976.84
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
Nil
16.25
16.00
25.00
Nil
57.25
74.37
150.00
150.95
118.68
Nil
226.66
720.66
Nil
6.33
2.94
9.27
Total
(A) + (B)
13,168.52
1,787.54
9,825.33
1,764.02
* Amount disclosed under Other Current Financial Liabilities (Refer Note 24)
(B)
5,259.60
811.04
4,910.25
787.18
272
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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), (i), (j) and (k) 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) Part of Loan 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 (l)
and (m) respectively have been secured by a charge on the movable and immovable properties situated at Khandke,
Brahmanvel and Sadawaghapur in Maharashtra including the projects' current and future receivables.
Terms of Repayment
Particulars
Amount
Outstanding
as at
31st March,
2021
Financial Year
FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-31 FY 31-32
and
onwards
` crore
(i) Unsecured - At Amortised Cost
Redeemable Non-Convertible Debentures
(a) 10.75% Series 2072 (Refer Note 1 below)
(b) 7.77% Series 2031
(c) 7.77% Series 2030
(d) 7.77% Series 2029
(e) 7.05% Series 2026
(f) 9.00% Series 2025
(g) 7.99% Series 2024
(h) 6.18% Series 2024
(i) 8.84% Series 2023
(j) 7.60% Series 2023
(k) 8.21% Series 2023
(l) 6.00% Series 2023
(m) 8.84% Series 2022
Term Loans from Banks (Refer Note 3 below)
(n)
ICICI Bank
(o) Axis Bank
(p) First Abu Dhabi Bank
(q) Sumitomo Mitsui Banking Corporation
Deferred Payment Liabilities
(r) Sales Tax Deferral (Refer Note 2 below)
1,500.00
200.00
150.00
150.00
500.00
250.00
1,200.00
400.00
750.00
1,000.00
300.00
1,000.00
500.00
-
-
-
-
-
-
300.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
300.00
300.00
400.00
-
-
750.00
- 1,000.00
-
300.00
- 1,000.00
-
500.00
-
-
-
-
-
250.00
300.00
-
-
-
-
-
-
-
-
-
-
500.00
-
-
-
-
-
-
-
-
225.00
166.67
133.00
500.00
225.00
166.67
67.00
215.00
-
-
66.00
100.00
-
-
-
105.00
-
-
-
45.00
-
-
-
35.00
2.83
2.83
-
-
-
-
200.00
150.00
150.00
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
273
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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) Canara Bank
(j) Axis Bank
Term Loans from Others (Refer Note 3 below)
(k) Housing Development Corporation Ltd
Less:
Impact of recognition of borrowing at
amortised cost using effective interest
method.
Notes:
Amount
Outstanding
as at
31st March,
2021
Financial Year
FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-31 FY 31-32
and
onwards
` crore
197.19
90.00
100.00
210.00
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
-
16.25
16.00
20.00
-
115.94
10.00
-
-
-
-
-
-
1,593.42
510.00
648.75
1,153.71
60.00
516.67
140.00
120.00
161.48
75.64
5.00
226.67
140.00
150.00
61.48
75.65
5.00
60.00
140.00
240.00
61.48
151.35
5.00
130.00
140.00
-
61.48
302.59
5.00
100.00
166.25
-
87.73
548.48
5.00
-
648.42
-
215.10
-
25.00
-
218.75
-
-
-
10.00
-
1,000.00
70.00
15,007.24 1,787.54 1,780.38 4,705.08
30.00
60.00
90.00
1,346.32
120.00
1,514.71
630.00
-
2,144.46 1,728.75
51.18
14,956.06
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 5.45% to 8.50 % (31st March, 2020 - 7.25% to 9.25%) and rate of interest for
term loans from others is 7.60% (31st March, 2020 - 9.36%).
274
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
23. Lease Liabilities
Accounting Policy
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 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 equipments used in its
operations. Leases of Leasehold land including sub-surface rights and plant and equipment generally have lease term
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
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
22.92
19.36
28.85
0.33
39.78
17.56
29.07
0.38
Refer Note 5B for additions to Right-of-Use Assets and the carrying amount of Right-of-Use Assets. Further, Refer Note 42.4.3 for
maturity analysis of lease liabilities.
275
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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
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
30.99
29.34
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
209.72
209.72
27.39
27.39
237.03
237.03
41.82
41.82
24. Other Financial Liabilities - At Amortised Cost (Unless otherwise stated)
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 Debentures
(e) Other Payables
Payables for capital supplies and services
Security deposits from electricity consumers
Security deposits from others
Payable to Consumers
Other Financial Liabilities
Derivative contracts (Net) (at Fair Value through Profit and Loss)
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
9.77
2.32
12.09
1,787.54
284.76
4.15
23.16
0.09
271.22
245.75
31.23
310.53
77.23
6.94
3,042.60
9.48
5.12
14.60
1,764.02
202.23
Nil
22.56
0.09
350.18
234.48
6.74
Nil
41.32
Nil
2,621.62
** Includes amounts outstanding aggregating ` 1.69 crore (31st March, 2020 - ` 1.48 crore) for more than seven years pending
disputes and legal cases.
25. Deferred Tax Liabilities (Net)
(Refer Note 35)
Deferred Tax Assets
Deferred Tax Liabilities
Net Deferred Tax Liabilities
276
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
1,028.59
1,163.95
135.36
940.99
1,248.24
307.25
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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.
Restructuring provisions are recognised only when the Company has a constructive obligation, which is when: (i) a detailed
formal plan identifies the business or part of the business concerned, the location and number of employees affected, a
detailed estimate of the associated costs, and the timeline; and (ii) the employees affected have been notified of the plan’s
main features.
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 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.
The cost of the defined benefit gratuity plan and other post-employment medical benefits 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 sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date. 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 are based on expected future inflation rates.
277
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26. Provisions (Contd.)
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.
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, 2021
As at
31st March, 2020
` crore
` crore
82.70
57.67
106.35
14.66
261.38
5.80
2.19
15.16
2.22
25.37
87.99
59.12
63.49
11.86
222.46
6.17
2.09
53.21
0.55
62.02
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 ` 7.84 crore (31st March, 2020 - ` 9.32 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 plan.
2. Defined benefit plans
2.1 The Company operates the following unfunded/funded defined benefit plans:
Funded:
Provident Fund
The Company makes Provident Fund contributions to defined benefit plans for eligible employees. Under the scheme, the
Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as
specified are paid to the provident fund trust set by the Company. The Company is generally liable for annual contributions.
However, any shortfall in the fund assets based on the government specified minimum rates of return are recognised as an
expense in the year it is incurred.
278
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
26. Provisions (Contd.)
Having regard to the assets of the fund and the return on the investments, the Company expects net shortfall of ₹ 6.50
crore which has been provided as an expenditure during the year.
The actuary has provided a valuation of provident fund liability based on the assumptions listed and determined the net
short fall of ₹ 6.50 crore as at 31st March, 2021 (31st March, 2020 - ₹ 10.52 crore) which has been recognised as an expense
during the year.
The significant assumptions used for the purpose of the actuarial valuations were as follows:
Particulars
Interest rate
Discount rate
Contribution during the year (` crore)
Short fall recognised as an expenditure for the year (₹ crore)
As at
31st March, 2021
As at
31st March, 2020
7.50% p.a.
6.60% p.a.
19.92
6.50
8.50% p.a.
6.50% p.a.
21.15
10.52
The movements in the net defined benefit obligation for provident fund are as follows:
Funded Plan:
Balance as at 1st April, 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
Amount recognised in Other Comprehensive Income
Employer contribution
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2020
Balance as at 1st April, 2020
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
Present value of
obligation
Fair value of plan
assets
` crore
760.31
22.02
56.34
78.36
Nil
(1.59)
(3.30)
13.84
8.95
Nil
49.34
(98.17)
8.97
807.76
807.76
18.87
48.84
67.71
Nil
Nil
52.89
22.34
` crore
752.04
Nil
57.21
57.21
(40.00)
Nil
Nil
Nil
(40.00)
21.13
49.34
(98.17)
8.97
750.52
750.52
Nil
47.79
47.79
68.73
Nil
Nil
Nil
Net
Amount
` crore
8.27
22.02
(0.87)
21.15
40.00
(1.59)
(3.30)
13.84
48.95
(21.13)
Nil
Nil
Nil
57.24
57.24
18.87
1.05
19.92
(68.73)
Nil
52.89
22.34
279
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 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, 2021
Gratuity
Present value of
obligation
Fair value of plan
assets
` crore
75.23
Nil
44.14
(124.23)
22.80
893.41
` crore
68.73
18.62
44.14
(116.10)
22.80
836.51
Net
Amount
` crore
6.50
(18.62)
Nil
(8.13)
Nil
56.91
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 trust regulations.
2.2 The principal assumptions used for the purposes of the actuarial valuations for funded and unfunded
As at 31st March, 2021
As at 31st March, 2020
6.60% p.a.
6.50% p.a.
7% p.a.
5% p.a.
6% p.a.
0.50% p.a.
2% p.a.
0.50% p.a.
4% 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.
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
8% p.a.
8% p.a.
plan 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
280
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements 26. Provisions (Contd.)
2.3
The amounts recognised in the Standalone financial statements and the movements in the net defined
benefit obligations over the year are as follows:
Gratuity Fund Plan:
Balance as at 1st April, 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
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, 2020 *
Balance as at 1st April, 2020*
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, 2021 *
* Net asset is classified as "Other Current Assets".
Present value of
obligation
` crore
Fair value of plan
assets
` crore
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
273.90
17.38
17.49
(0.89)
33.98
Nil
Nil
(1.76)
(3.16)
(0.34)
(5.26)
(24.61)
(22.36)
0.89
256.54
(280.29)
Nil
(20.74)
Nil
(20.74)
(8.32)
Nil
Nil
Nil
Nil
(8.32)
Nil
Nil
Nil
(309.35)
(309.35)
Nil
(20.11)
Nil
(20.11)
(16.60)
Nil
Nil
Nil
Nil
(16.60)
Nil
Nil
Nil
(346.06)
Net
Amount
` crore
(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)
(35.45)
17.38
(2.62)
(0.89)
13.87
(16.60)
Nil
(1.76)
(3.16)
(0.34)
(21.86)
(24.61)
(22.36)
0.89
(89.52)
281
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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, 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
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, 2020
Balance as at 1st April, 2020
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
282
Amount
` crore
102.69
5.24
Nil
13.21
9.15
0.07
27.67
(4.31)
11.36
(9.48)
0.41
(2.02)
(7.19)
Nil
(0.48)
Nil
120.67
120.67
5.38
Nil
Nil
7.77
Nil
13.15
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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
Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations
Balance as at 31st March, 2021
Employee Benefit Plans
Amount
` crore
Nil
1.55
(2.68)
Nil
(1.13)
(5.54)
(2.79)
0.10
Nil
124.46
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,
2021
31st
March,
2020
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,
2021
` crore
17.09
11.05
5.81
4.60
31st
March,
2020
` crore
15.83
11.32
5.43
4.81
31st
March,
2021
` crore
18.08
10.44
5.73
4.14
31st
March,
2020
` crore
17.19
10.70
5.35
4.30
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.
283
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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, 2021
` crore
31st March, 2020
` crore
31st March, 2021
` crore
31st March, 2020
` crore
31st March, 2021
` crore
31st March, 2020
` crore
Within 1 year
Between 1 - 2 years
Between 2 - 3 years
Between 3 - 4 years
Between 4 - 5 years
Beyond 5 years
61.74
101.81
94.42
93.72
86.54
533.46
67.02
105.84
96.20
85.16
84.05
413.74
19.83
31.63
31.53
31.68
26.77
20.87
33.66
32.08
30.55
34.41
166.99
167.80
8.98
9.41
9.59
9.48
9.61
54.45
8.85
9.08
9.16
9.29
9.15
65.39
The weighted average duration of:
Provident Fund
Gratuity Fund
As at
31st March, 2021
As at
31st March, 2020
7.0 Years
7.4 Years
7.0 Years
7.4 Years
The contribution expected to be made by the Company during the financial year 2021-22 is ` 19.20 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
Government Securities
Debt and other Instruments
Provident Fund
Gratuity
As at 31st March, 2021
As at 31st March, 2020
As at 31st March, 2021
As at 31st March, 2020
` crore
%
` crore
%
` crore
%
` crore
%
43.33
450.96
342.22
836.51
5%
54%
41%
100%
30.02
405.28
315.22
750.52
4%
54%
42%
100%
65.75
88.63
191.68
346.06
19%
26%
55%
100%
58.78
89.71
160.86
309.35
19%
29%
52%
100%
284
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
27. Other Liabilities
Non-current
Deferred Revenue - Service Line Contributions from Consumers
Deferred Rent Liability
Total
Current
Statutory Liabilities
Advance from Customers/Public Utilities
Statutory Consumer Reserves
Liabilities towards Consumers
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 ` 6,925 crore (31st
March, 2020 - ` 6,700 crore)]
Secured
From Banks
(a) Term Loans
Total
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
112.95
42.75
155.70
101.00
178.09
179.00
12.61
1.83
472.53
115.91
45.43
161.34
121.97
149.68
168.00
60.76
2.46
502.87
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
999.69
90.00
Nil
922.20
500.00
90.00
1.05
105.45
3,523.81
5,535.70
5,455.81
6,152.31
60.00
60.00
60.00
60.00
5,595.70
6,212.31
Notes:
1.
2.
The rate of interest for term loans from banks ranges from 6.50% to 8.90% (31st March,2020 - 8.00% to 9.40%) and loan from others
ranges from 3.13% to 7.50% (31st March,2020 - 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
As at
31st March, 2021
As at
31st March, 2020
` crore
133.47
133.47
` crore
107.67
107.67
285
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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 as per the relevant contracts 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 realisation 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 recognises Deferred tax recoverable/
payable against any Deferred tax expense/ income. The same is included in 'Revenue from Operations' in case of
Generation and Transmission business.
There are no significant judgements involved while evaluating the timing as to when customers obtain control of
promised goods and services.
286
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
30. Revenue from Operations (Contd.)
(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
Add/(Less): Deferred Tax Recoverable / (Payable)
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
` crore
4,656.54
157.00
(8.53)
44.80
4,849.81
6,410.55
(198.98)
5.49
31.41
6,248.47
(b) Revenue from Power Supply - Assets Under Finance Lease
942.03
1,051.27
(c) Project/Operation Management Services
(d) Income from Finance Lease
(e) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipments, etc.
Income in respect of Services Rendered
Income from Storage and Terminalling
Amortisation of Service Line Contributions
Sale of Fly Ash
Sale of Carbon Credits
Sale of Renewable Energy certificates
Miscellaneous Revenue
173.90
140.71
84.66
88.91
13.29
60.94
16.31
8.25
0.28
Nil
Nil
31.12
130.19
12.15
97.60
15.22
7.99
1.86
6.25
14.66
41.30
197.03
Total
6,180.59
7,726.39
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, 2021
` crore
For the year ended
31st March, 2020
` crore
6,048.34
27.24
6,075.58
7,590.18
38.28
7,628.46
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 where 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, 2021, other than those
meeting the exclusion criteria mentioned above is ` Nil (31st March, 2020 - ` 18.59 crore). The Company expects to recognise
it as revenue within next one year.
287
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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
Others
Total
For the year
ended
31st March,
2021
For the year
ended
31st March,
2020
For the year
ended
31st March,
2021
For the year
ended
31st March,
2020
For the year
ended
31st March,
2021
For the year
ended
31st March,
2020
` crore
` crore
` crore
` crore
` crore
` 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)
1,393.22
942.03
144.60
Nil
3.37
2,483.22
1,588.73
1,051.27
100.94
Nil
21.70
2,762.64
107.70
Nil
107.70
95.24
14.64
109.88
828.79
2,520.09
Nil
22.45
10.82
3,382.15
775.15
3,789.37
Nil
33.83
44.45
4,642.80
34.40
30.76
Unallocable Revenue (E)
40.87
44.10
Nil
Nil
Nil
84.66
14.58
99.24
Nil
Nil
Nil
Nil
Nil
299.62
Nil
27.23
326.85
Nil
5.78
Nil
Nil
Nil
88.91
15.52
104.43
1,393.22
942.03
144.60
84.66
17.95
2,582.46
1,588.73
1,051.27
100.94
88.91
37.22
2,867.07
Nil
8.02
8.02
107.70
Nil
107.70
95.24
22.66
117.90
Nil
Nil
(651.40)
Nil
20.76
(630.64)
828.79
2,520.09
299.62
22.45
38.05
3,709.00
775.15
3,789.37
(651.40)
33.83
65.21
4,012.16
Nil
34.40
30.76
3.00
46.65
47.10
Revenue from Continuing Operations
(including Net Movement in Regulatory
Deferral Balances) (A + B + C +D + E)
6,048.34
7,590.18
431.87
(515.19)
6,480.21
7,074.99
Revenue from Discontinued Operations
193.63
343.74
Nil
Nil
193.63
343.74
Reconciliation of Revenue
Revenue from Continuing Operations as per above table
Less: Net Movement in Regulatory Deferral Balances
Total Revenue from Operations
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
` crore
6,480.21
299.62
6,180.59
7,074.99
(651.40)
7,726.39
288
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements 30. Revenue from Operations (Contd.)
Contract Balances
Contract Assets
Recoverable from Consumers
Non-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, 2021
As at
31st March, 2020
` crore
` crore
1,161.06
1,161.06
960.84
960.84
12.61
12.61
966.67
75.37
58.13
(55.80)
1,044.37
2,218.04
60.76
60.76
1,151.39
83.41
221.45
(42.71)
1,413.54
2,435.14
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)
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
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
960.84
(60.76)
900.08
157.00
(8.53)
57.59
44.80
Nil
(2.49)
248.37
1,161.06
(12.61)
1,148.45
(A)
(B)
(A + B)
1,191.79
(11.50)
1,180.29
(198.98)
5.49
48.87
31.41
(167.00)
Nil
(280.21)
960.84
(60.76)
900.08
289
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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.
(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
Interest on Financial Assets - Subsidiaries
(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 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 Equipments (Net)
Delayed Payment Charges
Other Income
Total
Note:
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
` crore
2.36
38.59
11.80
124.37
177.12
4.82
65.69
17.43
18.58
106.52
Nil
13.03
177.12
119.55
941.51
47.74
Nil
6.78
996.03
16.93
Nil
16.93
21.82
17.17
7.02
12.87
58.88
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
1,248.96
582.62
During the previous 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.
290
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
32. Employee Benefits Expense
Salaries and Wages
Contribution to Provident Fund
Contribution to Superannuation Fund
Gratuity
Compensated Absences
Pension
Staff Welfare Expenses
Less:
Employee Cost Capitalised
Employee Cost Inventorised
Total
33. Finance Costs
Accounting Policy
For the year ended
31st March, 2021
` crore
521.68
19.92
7.84
13.87
13.21
14.39
95.72
686.63
For the year ended
31st March, 2020
` crore
468.42
21.15
9.32
17.08
24.96
10.78
93.58
645.29
27.12
10.44
37.56
24.59
9.99
34.58
649.07
610.71
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 - Related Parties
Others
Interest on Consumer Security Deposits - At Amortised cost
Interest on Lease Liabilities - At Amortised cost
Other Interest and Commitment Charges
Less: Interest Capitalised
Less: Interest Inventorised
(b) Other Borrowing Costs:
Other Finance Costs
Total
Note:
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
` crore
583.03
863.68
18.44
11.05
19.36
1.70
1,497.26
8.38
10.23
1,478.65
40.12
40.12
412.38
1,049.22
4.91
21.99
17.56
0.48
1,506.54
16.44
Nil
1,490.10
20.28
20.28
1,518.77
1,510.38
The weighted average capitalisation rate on the Company's general borrowings is 7.64 % p.a. (31st March, 2020 - 8.23 % p.a.).
291
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34. Other Expenses
Consumption of Stores and Oil
Rental of Land, Buildings, Plant and Equipments
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 (gain)/ Loss on Foreign Exchange
Allowance for Doubtful Debts and Advances (Net)
Legal Charges
Corporate Social Responsibility [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
Contribution to Tata Power Community Development Trust
Other expenses
Total
292
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
` crore
39.34
12.17
82.22
242.26
4.54
329.02
53.10
33.92
91.35
12.21
16.06
15.14
5.23
96.77
2.43
(24.08)
13.62
16.47
3.45
11.00
38.48
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)
21.61
3.80
17.00
16.77
765.68
756.69
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
` crore
4.03
0.15
0.23
0.02
0.80
5.23
3.54
0.12
0.55
0.15
0.78
5.14
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
` crore
3.28
0.17
3.45
3.16
0.64
3.80
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements 34. Other Expenses (Contd.)
Amount required to be spent as per section 135 of the Companies Act 2013
Amount spent during the year on:
(a) Construction/Acquisition of asset
(b) On purposes other than (a) above
35.
Income taxes
Accounting Policy
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
3.45
Nil
3.45
` crore
3.04
Nil
3.80
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 related to items recognised outside Statement of Profit and Loss are recognised 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
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
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.
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. 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.
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 of Income Tax Act, 1961), deferred tax assets or liabilities,
if any, have been recorded 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 related to items recognised outside profit or loss is recognised 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.
293
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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
For the year
ended
31st March, 2021
` crore
205.31
(104.34)
Nil
Nil
100.97
For the year
ended
31st March, 2020
` crore
18.61
73.08
(24.51)
(275.00)
(207.82)
Note:
Pursuant to the Taxation Laws (Amendment) Act, 2019 domestic companies have 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 in the previous year recognised deferred tax income of ` 275.00 crores after adjusting the Minimum
Alternate Tax credit write off. Further, the Company had also remeasured its regulatory asset balance against deferred tax liabilities and
had recognised expense of ` 98.00 crores pertaining to distribution business and ` 167.00 crores 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
For the year
ended
31st March, 2021
` crore
(101.48)
(72.17)
(173.65)
For the year
ended
31st March, 2020
` crore
Nil
(32.41)
(32.41)
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
For the year
ended
31st March, 2021
For the year
ended
31st March, 2020
` crore
1,068.61
(219.84)
848.77
` crore
350.53
(442.64)
(92.11)
Income tax expense @34.944% being the statutory enacted rate
296.59
(32.19)
Add/(Less) tax effect on account of :
Dividend income not taxable
Income taxed at lower rate
Non-Deductible expenses
Effect of tax holiday period
Remeasurement of past deferred tax balances on the expected sale of assets (Refer Note 2 below)
Utilisation of unrecognised capital loss on sale of asset
Unrecognised tax credit (MAT) for the year
Provision for impairment
Measurement of deferred tax at 25.17% expected to be reversed in the new tax regime
Reversal of impairment of non-current investments and related obligations
True up impact basis income tax return
Others
(146.65)
(72.35)
49.50
(66.77)
(131.00)
(11.52)
31.30
Nil
(20.38)
Nil
Nil
(1.40)
(83.27)
(3.80)
88.57
34.08
Nil
Nil
15.38
122.63
(275.00)
(82.12)
(24.51)
Nil
294
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
35.
Income taxes (Contd.)
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
Notes:
For the year
ended
31st March, 2021
For the year
ended
31st March, 2020
` crore
(72.68)
100.97
(173.65)
(72.68)
` crore
(240.23)
(207.82)
(32.41)
(240.23)
1. The rate used for calculation of deferred tax is 34.94% and 25.17% for balances expected to be reversed in the new tax regime.
2. During the year ended 31st March, 2021, the Company has entered into a Business Transfer Agreement with Tata Power Renewable
Energy Limited and Tata Power Green Energy Limited, wholly owned subsidiaries, for transfer of renewable assets (forming part of
renewable segment) as a “going concern” on a slump sale basis effective on or after 1st April, 2021. Consequently, as per the requirement
of Ind AS 12, the Company has reassessed its deferred tax balances including its unrecognized deferred tax assets on capital losses and
has recognized gain of ` 131.00 crore in the Standalone Financial Statements.
3.
Income tax recognised in other comprehensive income
Current Tax
Remeasurement of defined benefit obligation
Deferred tax
Remeasurements of defined benefit obligation
Total income tax recognised in other comprehensive income
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)
31st March, 2021
` crore
31st March, 2020
` crore
Nil
(0.77)
4.61
(17.40)
4.61
(18.17)
4.61
(18.17)
As at
31st March, 2021
` crore
As at
31st March, 2020
` crore
1,028.59
1,163.95
135.36
940.99
1,248.24
307.25
295
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
35.
Income taxes (Contd.)
2020-21
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
Unabsorbed losses
Deferred tax liabilities in relation to
Property, Plant and Equipments (including finance leases)
Right-of-use asset
Others
26.85
66.37
437.51
379.97
12.40
17.89
940.99
1,233.48
10.00
4.76
1,248.24
2.74
5.52
Nil
112.59
(10.75)
(17.89)
92.21
(76.29)
(8.01)
Nil
(84.30)
Deferred Tax Liabilities (Net)
307.25
(176.51)
Nil
(4.61)
Nil
Nil
Nil
Nil
(4.61)
Nil
Nil
Nil
Nil
4.61
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
Unabsorbed losses
Deferred tax liabilities in relation to
Property, Plant and Equipments (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
` crore
Closing
balance
29.59
67.28
437.51
492.56
1.65
Nil
1,028.59
1,157.19
1.99
4.76
1,163.95
135.36
` 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
Deferred Tax Liabilities (Net)
583.49
(258.84)
(17.40)
307.25
The amount and the expiry of unrecognised deferred tax asset is as detailed below:
As at 31st March, 2021
Within one
year
Greater than
one year, less
than five years
Greater than
five years
` crore
Closing
balance
Capital Loss on sale of investment and indexation benefit*
MAT credit
Total
Nil
Nil
Nil
Nil
Nil
Nil
1,306.80
124.94
1,431.74
1,306.80
124.94
1,431.74
296
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
35.
Income taxes (Contd.)
As at 31st March, 2020
Capital Loss on sale of investment and indexation benefit*
MAT credit
Total
Within one
year
Greater than
one year, less
than five years
Greater than
five years
Nil
Nil
Nil
Nil
Nil
Nil
1,310.03
97.52
1,407.55
` crore
Closing
balance
1,310.03
97.52
1,407.55
* The unrecognised deferred tax asset on impairment of investments of ` 947.99 crore (31st March, 2020 - ` 949.86 crore)
relating to capital loss shall expire within 8 years from the date of sale of investment.
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, for the purpose of disallowance under section 23.
31st March, 2021
31st March, 2020
` crore
23.09
0.20
Nil
Nil
Nil
0.20
` crore
7.72
Nil
Nil
Nil
Nil
Nil
37. Commitments
(a) Estimated amount of Contracts remaining to be executed on capital account and not provided for ` 284.17 crore (31st
March, 2020 - ` 413.08 crore.)
(b) Other Commitments
(i)
(ii)
(iii)
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 ` 19,777.14
crore (31st March, 2020 - ` 15,629.14 crore) to CGPL.
The Company has undertaken to arrange for the necessary financial support to its subsidiaries Bhira Investments Pte.
Ltd., Khopoli Investments Ltd., Bhivpuri Investments Ltd., TP Renewable Microgrid Ltd. (formerly Industrial Power Utility
Ltd.), Tata Power Jamshedpur Distribution Ltd. and Tata Power International Pte. Ltd.
In respect of Maithon Power Ltd. (MPL), the Company jointly with Damodar Valley Corporation (DVC) has undertaken
to the lenders of MPL, to provide support by way of base equity contribution and additional equity or subordinated
loans to meet the increase in Project Cost. Further, the Company has given an undertaking to MPL to fulfil payment
obligations of Tata Power Trading Company Ltd. (TPTCL) and Tata Power Delhi Distribution Ltd. (TPDDL) in case of their
default.
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38. Contingent liabilities
As at 31st
March, 2021
` crore
As at 31st
March, 2020
` crore
Contingent liabilities including:
(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 (excluding interest and penalty).
375.29
375.29
(ii) Way Leave fees (including interest) claims disputed by the Company relating to rates
charged.
(iii) Custom duty claims disputed by the Company relating to applicability and classification of
coal.
(iv) Access Charges demand for laying underground cables.
(v) Rates, Cess, Excise and Custom Duty claims disputed by the Company.
(vi) Compensation disputed by private land owners on private land acquired under the
provisions of Maharashtra Industrial Development Act, 1961.
(vii) Octroi claims disputed by the Company in respect of octroi exemption claimed by the
Company.
(viii) Other claims against the Company not acknowledged as debts.
45.87
34.49
30.14
10.20
Nil
Nil
44.28
540.27
43.18
34.49
30.14
26.63
22.00
5.03
34.51
571.27
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.
(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).
In an earlier year, Maharashtra State Electricity Distribution Company Limited (MSEDCL) had raised
a demand for determination of fixed charges for unscheduled interchange of power. The Company
had filed a petition against the said demand for which stay has been granted by the ATE till the
methodology for the determination is fixed. 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.
As at 31st March,
2021
` crore
As at 31st March,
2020
` crore
50.93
50.93
215.02
215.02
(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) Tata Power Renewable Energy Ltd.
298
As at 31st March,
2021
` crore*
As at 31st March,
2020
` crore*
6,909.94
913.97
7,544.17
1,676.21
(equivalent to USD
125.01 million)
1,425.75
(equivalent to USD
195.01 million)
Nil
(equivalent to
USD Nil)
2,962.87
(equivalent to USD
221.89 million)
1,462.64
(equivalent to USD
193.62 million)
348.31
(equivalent to USD
46.11 million)
1,612.53
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
38. Contingent liabilities (Contd.)
(vi) Tata Power International Pte. Ltd.
(vii) Chirasthaayee Saurya Ltd.
(viii) Walwhan Renewable Energy Ltd.
(ix) Walwhan Solar TN Ltd.
(x) Walwhan Wind RJ Ltd.
As at 31st March,
2021
` crore*
As at 31st March,
2020
` crore*
732.49
(equivalent to USD
100.19 million)
Nil
1,320.55
33.98
83.28
Nil
(equivalent to USD
Nil )
272.12
1,450.51
126.56
86.03
* The exposure is considered to the extent of borrowings outstanding (including accrued interest) of the respective
subsidiaries.
(d) The Company has provided a Bank Guarantee of USD 90 Million (` 657.99 crore) and Corporate Guarantee of USD 40
Million (` 292.44 crore) to Oldendorff as per the affreightment contract entered by Trust Energy Resources Pte. Ltd.,
wholly owned subsidiary of the Company.
(e) During the year, the Company has acquired 51% stake in TP Central Odisha Distribution Limited ('TPCODL'), TP Western
Odisha Distribution Limited ('TPWODL') and TP Southern Odisha Distribution Limited ('TPSODL') to carry out the
function of distribution and retail supply of electricity covering the distribution circles of central, western and southern
parts of Odisha. Pursuant to these acquisition and as per the terms of the vesting order, the Company has issued
bank guarantee to Odisha Electricity Regulatory Commission (‘OERC’) of `150.00 crore, `150.00 crore, `100.00 crore
respectively.
(f) OERC had issued a request for proposal for sale of controlling interest in distribution business of North Electricity
Supply Utility of Odisha. The Company had bid for it and has been identified as the successful bidder and accordingly
the Company issued bank guarantees to OERC of `150 crore.
(g) The Company has given performance guarantee and letter of credit on behalf of TP Ajmer Distribution Ltd of `106.17
crore (31st March, 2020 `105.00 crore) to Ajmer Vidyut Vitran Nigam Ltd as per the distribution franchisee agreement.
(h) The Company has given performance guarantee on behalf of Trust Energy Resources Pte. Ltd. to Maxpente Shipping
Corporation of USD 10 Million (` 73.11 crore) (31st March, 2020 USD 10 Million (` 74.88 crore) for its obligation under the
cost of affreightment contract.
The Company, in respect of the above mentioned contingent liabilities has assessed that it is only possible but not
probable that outflow of economic resources will be required.
39. Other disputes
a.
In the previous year, the Company has recognised an expense of ` 276.35 crore net of amount recoverable from customers
including adjustment with consumer reserve in relation to Hon'ble Supreme Court's judgement on standby litigation.
Further in the previous year, Maharashtra Electricity Regulatory Commission (MERC) vide its order dated 30th March,
2020 had allowed the recovery of part of the standby charges amount from the consumers. During the year ended 31st
March, 2021, MERC vide its order dated 21st December, 2020, has revised its earlier order and disallowed the recovery
of the said amount. Consequently, the Company has recognized an expense of `109.29 crore (including carrying cost)
and disclosed as an exceptional item.
In the earlier years, Maharashtra Electricity Regulatory Commission has disallowed certain costs amounting to ` 419.00
crore (adjusted upto the current year) (31st March, 2020 `359.85 crore) recoverable from consumers in the tariff true
up order. The Company has filed appeal against the said order to Appellate Tribunal for Electricity which is pending for
final disposal.
In an earlier year, Maharashtra Electricity Regulatory Commission has disallowed carrying cost and other costs
amounting to `269.00 (31st March, 2020 `269.00) which was upheld by the Appellate Tribunal for Electricity (ATE). The
Company has filed Special Leave Petition (SLP) against the order of ATE with the Supreme Court which is pending for
final disposal.
b.
c.
299
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40. 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 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
financial statements by the Board of Directors.
Particulars
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore*
` crore*
A. EPS - Continuing operations (before net movement in Regulatory Deferral
Balances)
Net Profit/ (Loss) from Continuing Operations
Net movement in Regulatory Deferral Balances
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime (Net)
[Refer Note 35(i)]
Income-tax attributable to Regulatory Deferral Balances
Net movement in Regulatory Deferral Balances (Net of tax)
Net Profit/ (Loss) (before net movement in Regulatory Deferral Balances)
Less: Distribution on Perpetual Securities (on accrual basis)
Profit/ (Loss) from Continuing Operations attributable to equity shareholders
(before net movement in Regulatory Deferral Balances)
A
B
C
D
E=(B+C+D)
F=(A-E)
G
967.64
299.62
Nil
(104.70)
194.92
772.72
(171.00)
558.35
(651.40)
(98.00)
261.87
(487.53)
1,045.88
(171.00)
H=(F+G)
601.72
874.88
Weighted average number of equity shares for Basic and Diluted EPS
3,01,80,73,391
2,70,76,05,570
EPS - Continuing Operations (before net movement in Regulatory Deferral
Balances)
- Basic and Diluted (In `)
1.99
3.23
B. EPS - Continuing Operations (after net movement in Regulatory Deferral
Balances)
Net Profit/ (Loss) from Continuing Operations
Less: Distribution on Perpetual Securities (on accrual basis)
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 `)
967.64
(171.00)
558.35
(171.00)
796.64
387.35
3,01,80,73,391
2,70,76,05,570
2.64
1.44
(46.19)
3,01,80,73,391
(410.23)
2,70,76,05,570
(0.15)
(1.52)
300
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
40. Earnings Per Share (Contd.)
Particulars
D. EPS - Total Operations (after net movement in Regulatory Deferral Balances)
Net Profit/(Loss) from Operations (after net movement in Regulatory Deferral Balances)
Less: Distribution on Perpetual Securities (on accrual basis)
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, 2021
For the year ended
31st March, 2020
` crore*
` crore*
921.45
(171.00)
148.12
(171.00)
750.45
3,01,80,73,391
(22.88)
2,70,76,05,570
2.49
(0.08)
* 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 Limited (Formerly known as
12) Bhivpuri Investments Ltd.
Power Utility Ltd.)
Bhira Investments Limited)
13) Khopoli Investments Ltd.
15) Trust Energy Resources Pte. Ltd.
17) NDPL Infra Ltd. **
19) PT Sumber Energi Andalan Tbk **
21) TCL Ceramics Ltd. (Formerly Tata Ceramics Ltd.)
23) Poolavadi Windfarm Ltd. **
25) TP Wind Power Limited
(Formerly known as Indo Rama Renewables Jath Ltd.)**
14) Tata Power International Pte. Ltd.
16) Energy Eastern Pte. Ltd.** (Merged with Trust Energy
Resources Pte. Ltd. w.e.f. 10th June, 2019)
18) Tata Power Jamshedpur Distribution Ltd.
20) Supa Windfarm Ltd.
22) Nivade Windfarm Ltd. **
24) Walwhan Renewable Energy 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. **
43) Clean Sustainable Solar Energy Pvt. Ltd. **
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. **
44) Chirasthaayee Saurya Ltd. **
301
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41. Related Party Disclosures (Contd.)
45) Solarsys Renewable Energy Pvt. Ltd. **
47) Nelco Network Products Ltd. **
49) TP Ajmer Distribution Ltd.
51) TP Solapur Ltd.**
53) TP Central Odisha Distribution Ltd.
55) TP Western Odisha Distribution Ltd.
57) TP Southern Odisha Distribution Ltd.
59) TP Saurya Ltd
** Through Subsidiary Companies
(ii) Employment Benefit Funds
46) Vagarai Windfarm Ltd. **
48) Far Eastern Natural Resources LLC **
50) Tata Power Delhi Distribution Ltd.
52) TP Kirnali Ltd.**
54) TP Kirnali Solar Ltd.
56) TP Akkalkot Renewable Ltd
58) TP Solapur Solar 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 and its related entities
Tata Projects Ltd.
The Associated Building Co. Ltd.
1)
3)
5) Nelito Systems Ltd (ceased to be an Associate w.e.f.
6th June, 2019)
TP Luminaire Pvt Ltd. **
7)
* Fund of Associates
** 100% Subsidiary of Associates
(ii) Joint Venture Companies
Tubed Coal Mines Ltd.
1)
Powerlinks Transmission Ltd.
3)
5)
PT Antang Gunung Meratus**
7) Adjaristsqali Netherlands BV**
9)
11) Renascent Power Ventures Pvt. Ltd. **
LTH Milcom Pvt. Ltd.
Yashmun Engineers Ltd.
2)
4) Dagacchu Hydro Power Corporation Ltd.
6)
Ind Project Engineering (Sanghai) Co Ltd **
8)
Tata Projects Provident Fund Trust*
2) Mandakini Coal Company Ltd.
Itezhi Tezhi Power Corporation
4)
PT Kaltim Prima Coal**
6)
Industrial Energy Ltd.
8)
10) Dugar Hydro Power Ltd.
12) Cennergi Pty. Ltd. ** (ceased to be JV w.e.f.
31st March, 2020)
13) Prayagraj Power Generation Co Ltd. ** (w.e.f. 12th
14) Adjaristsqali Georgia LLC **
December, 2019)
** Joint Venture of Subsidiaries
(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) :
1)
3)
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.
Infiniti Retail Ltd.
5)
7)
9)
11)
13) Tata Consulting Engineers Ltd.
2)
4)
Tata AIG General Insurance Company Ltd.
Tata Communications Ltd.
Tata International Ltd.
6)
8)
Tata Ltd.
10) Tata Sky Ltd.
12) Ecofirst Services Ltd.
14) Tata Housing Development Co. Ltd.
Employees Provident Fund
302
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
41. Related Party Disclosures (Contd.)
15) Niskalp Infrastructure Services Ltd.
(Formerly Niskalp Energy Ltd.)
17) Tata Housing Development Company Ltd.
19) Tata AIA Life Insurance Company Ltd.
21) Tata Teleservices Ltd.
23) Tata Unistore Limited (Formerly Tata
Industrial Services Limited)
(ceased to be a Subsidiary w.e.f. 27th March, 2019)
16) Tata Consultancy Services Employees Provident Fund
18) Tata Capital Financial Services Ltd.
20) Tata Teleservices (Maharashtra) Ltd.
22) Tata Advanced System Ltd.
24) Tata Communications Payment Solutions Ltd.
25) Tata Autocomp Systems Limited
26) Tata International DLT Pvt Ltd
(d)
Key Management Personnel
Banmali Agrawala
Kesava Menon Chandrasekhar
1) N. Chandrasekaran
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
12th August, 2019)
15) Ashok Sethi (ceased to be COO and Executive Director
w.e.f. 30th April, 2019)
Praveer Sinha CEO and Managing Director
Saurabh Agrawal
2)
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)
(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
` crore
Promoter
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 Property, Plant and
Equipments and Intangibles
4)
Sale of Property, Plant and
Equipments
5) Rendering of services
6) Receiving of services
7) Brand equity contribution
64.49
62.39
176.37
221.60
86.07
1.20
0.02
-
127.57
102.33
9.84
4.03
-
-
-
-
-
0.01
0.70
12.84
-
0.05
7.59
7.17
12.46
13.55
-
-
-
-
-
-
-
-
-
-
83.48
39.76
0.06
0.80
-
-
-
-
-
-
-
-
0.00 #
-
-
-
0.18
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.90
-
15.59
33.70
7.82
0.22
0.68
-
9.11
8.58
40.93
27.02
-
-
-
-
-
-
-
-
-
0.07
2.38
1.25
0.33
0.42
18.21
0.87
303
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41. Related Party Disclosures (Contd.)
Sr.
No.
Particulars
Subsidiaries
Associates
Joint
Ventures
key
Management
Personnel &
their relatives
Employee
Benefit
Funds /
Trust
Promoter
Group
Promoter
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, rights issue and
perpetual bonds)
23) Loans provided for as doubtful
advances (including interest)
24) Loans given written off
25) Loans taken repaid
-
-
10,532.81 $
5,743.33 $
9,420.64 $
7,717.53 $
-
-
-
-
-
-
124.37
18.57
18.35
4.91
941.51
267.18
-
-
21.82
60.63
3,886.09
5,400.65
6,512.35
3,244.98
-
131.46
4,785.08
50.00
-
6.85
-
5.69
3,069.34
5,295.58
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.08
0.08
-
9.68
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00 #
0.01
0.09
-
47.74
85.09
-
-
-
-
120.00
-
2.60
14.57
8.00
-
-
-
-
0.14
-
-
120.00
-
-
-
-
-
-
-
12.37 *
10.58 *
-
2.80
0.13
0.68
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29.93
34.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.89
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00 #
0.01
26.44
26.44
0.00 #
0.09
2.11
1.77
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6.67
6.67
147.86
109.17
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
304
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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
Promoter
26) Loans repaid
27) Deposits taken
28) Liability written back
29) Advance Given
30) Advance adjusted
31) Bad Debts
32) Allotment of Equity shares
(including securities premium
paid)
33) Consideration received on Sale of
SED (Note 18c)
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) Advance given outstanding
11) Guarantees, collaterals etc.
outstanding
12) Advance towards Equity
5,090.55
2,809.63
22.50
-
-
103.54
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
28,574.98
23,802.81
4,009.14
4,009.14
80.44
27.21
2030.87
561.70
926.35
105.52
12.00
12.00
22.50
-
0.01
-
15,951.26
14,839.09
12.91
-
-
-
-
-
-
-
13.39
11.11
2.51
-
1.16
-
-
-
-
-
0.70
0.70
-
-
2.60
14.43
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
192.58
192.58
1,100.19 @
1,100.19 @
-
-
8.84
4.17
-
1.27
-
-
-
1.27
-
-
19.64
8.76
-
-
-
-
59.50
67.50
17.81 @
32.91 @
72.98 @
72.98 @
-
-
54.39
54.39
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
0.19
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,600.00
-
597.00 **
-
197.50
197.50
36.50
36.50
290.28 @
129.39 @
-
-
-
-
-
-
241.95
241.95
-
-
2.12
1.73
-
-
-
-
-
-
2.00
2.00
-
-
-
-
-
-
305
-
-
89.52
35.45
-
-
371.33
4.59
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.22
0.21
-
-
-
-
-
-
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
41. Related Party Disclosures (Contd.)
Sr.
No.
Particulars
13) Other payables
` crore
Promoter
Subsidiaries
Associates
Joint
Ventures
Promoter
Group
key
Management
Personnel &
their relatives
7.32
8.04
Employee
Benefit
Funds /
Trust
56.91
43.63
21.31
3.66
16.86
0.04
68.85
9.95
3.33
4.24
0.09
0.27
Includes guarantees given and cancelled in foreign currency, converted in Indian currency by applying average exchange rates.
Notes:
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 financial statements. As these employee benefits are lump sum amounts provided on the
basis of actuarial valuation, the same is not included above.
** Net off borrowings of ` 537 crore transferred to TASL.
# 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
Receivable on sale of Strategic Engineering Division (Refer Note 18c)
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)
Derivative contracts (Net)
Other financial liabilities
Carrying value
Fair Value
As at
31st March,
2021
31st March,
2020
As at
31st March,
2021
31st March,
2020
` crore
123.67
19.00
910.87
75.37
2,014.07
566.09
240.01
437.17
171.35
365.99
370.79
Nil
178.68
22.74
5,495.80
158.54
20.40
1,108.68
83.41
592.19
584.92
20.00
416.14
171.38
Nil
454.84
667.35
22.81
22.74
4,323.40
123.67
19.00
910.87
75.37
2,014.07
566.09
240.01
437.17
176.76
365.99
370.79
Nil
178.68
22.74
5501.21
158.54
20.40
1,108.68
83.41
592.19
584.92
20.00
416.14
176.79
Nil
454.84
667.35
22.81
22.74
4,328.81
1,137.00
7,981.41
12,836.56
6.94
994.21
22,956.12
1,001.87
6,579.58
11,386.65
Nil
707.64
19,675.74
1,137.00
7,981.41
12,811.90
6.94
994.21
22,931.46
1,001.87
6,579.58
11,397.63
Nil
707.64
19,686.72
#
other than investments in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27 'Separate
Financial Statements'.
306
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
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, 2021 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 purchase of equity shares
Closing balance
Note:
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
404.87
404.87
2.03
Nil
3.39
410.29
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, 2021 and 31st March, 2020 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
(31st March, 2020: 5%)
5%
increase
the
(decrease)
transaction price would result in
increase (decrease) in fair value
by ` 3.26 crores (31st March,
2020: ` 2.82 crore).
in
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.
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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 and contingent consideration receivable.
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, 2021
Quoted prices
in active
markets
(Level 1)
` crore
Significant
observable
inputs
(Level 2)
` crore
Significant
unobservable
inputs
(Level 3)
` crore
Total
` crore
Asset measured at fair value
FVTPL Financial Investments
FVTOCI Financial Investments:
- Quoted equity shares
- Unquoted equity shares
- Assets classified as held for sale
Receivable on sale of Strategic Engineering Division
Asset for which fair values are disclosed
Amortised cost Financial Investments:
- Government securities
31st March, 2021
240.01
31st March, 2021
31st March, 2021
31st March, 2021
31st March, 2021
31st March, 2021
Date of valuation
26.88
Nil
178.68
Nil
176.76
622.33
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
240.01
Nil
410.29
Nil
365.99
26.88
410.29
178.68
365.99
Nil
776.28
176.76
1,398.61
Fair value hierarchy as at 31st March, 2021
Quoted prices
in active
markets
(Level 1)
` crore
Significant
observable
inputs
(Level 2)
` crore
Significant
unobservable
inputs
(Level 3)
` crore
Total
` crore
6.94
12,811.90
7,981.41
20,800.25
Liabilities measured at fair value
Derivative financial liabilities
Liabilities for which fair values are disclosed
Fixed rate borrowings
Floating rate borrowings
Total
31st March, 2021
Nil
6.94
31st March, 2021
31st March, 2021
7,430.32
1,261.88
8,692.20
5,381.58
6,719.53
12,108.05
Nil
Nil
Nil
Nil
Date of valuation
Fair value hierarchy as at 31st March, 2020
Quoted prices
in active
markets
(Level 1)
` crore
Significant
observable
inputs
(Level 2)
` crore
Significant
unobservable
inputs
(Level 3)
` crore
Total
` crore
31st March, 2020
31st March, 2020
31st March, 2020
31st March, 2020
20.00
11.27
Nil
22.81
31st March, 2020
176.79
230.87
Nil
Nil
Nil
Nil
Nil
Nil
Nil
20.00
Nil
404.87
Nil
11.27
404.87
22.81
Nil
176.79
404.87
635.74
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
308
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
Date of valuation
Fair value hierarchy as at 31st March, 2020
Quoted prices
in active
markets
(Level 1)
` crore
Significant
observable
inputs
(Level 2)
` crore
Significant
unobservable
inputs
(Level 3)
` crore
Total
` crore
Liabilities for which fair values are disclosed
Fixed rate borrowings
Floating rate borrowings
Total
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
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 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, 2021
20,840.67
123.67
20,717.00
18,378.56
39,095.56
52.99
` crore
As at
31st March, 2020
18,003.89
160.54
17,843.35
15,261.97
33,105.32
53.90
(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,
2021 and 31st March, 2020.
309
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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
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, 2021 and 31st March, 2020.
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 JPY
In CAD
In VND
Foreign Currency Assets
In USD
In ZAR
In SGD
In VND
In TAKA
As at 31st March, 2021
As at 31st March, 2020
Foreign Currency
(In Millions)
46.79
0.06
-
-
-
` crore Foreign Currency
(In Millions)
20.50
0.31
300.78
0.02
790.21
342.11
0.54
-
-
-
` crore
154.88
2.60
20.92
0.08
0.25
As at 31st March, 2021
As at 31st March, 2020
Foreign Currency
(In Millions)
9.05
0.41
0.04
56.76
0.20
` crore Foreign Currency
(In Millions)
6.42
0.03
0.08
35.88
0.21
66.16
0.20
0.21
0.02
0.02
` crore
48.53
0.01
0.41
0.01
0.02
(i) Foreign currency sensitivity analysis
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other
variables held constant. The impact on the Company’s equity is due to changes in the fair value of monetary assets and
liabilities is given as under.
310
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
As of 31st March, 2021
As of 31st March, 2020
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
` crore
Effect on profit before tax and
consequential impact on equity
(-) ` 3.77
(+) ` 3.77
(-) ` 1.41
(+) ` 1.41
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.
ii. Derivative financial instruments
The Company holds derivative financial instruments such as foreign currency forward to mitigate the risk of changes
in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank or a Financial
Institution. These derivative financial instrument are valued based on quoted prices for similar asset and liabilities in
active markets or inputs that is directly or indirectly observable in the marketplace.
The following table gives details in respect of outstanding foreign exchange forward :
Outstanding Contracts
Other Derivatives
Forward contracts
In USD
Other Derivatives
Forward contracts
In USD
Buy/ Sell
Foreign Currency
(in millions)
As at 31st March, 2021
Nominal Value in
` crore
Fair Value in
` crore
sell
130.00
950.46
(6.94)
Buy/ Sell
Foreign Currency
(in millions)
As at 31st March, 2020
Nominal Value in
` crore
Fair Value in
` crore
Nil
Nil
Nil
Note: Fair Value in () denote liability
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 non-designated
foreign currency forward contracts is given as under.
As of 31st March, 2021
As of 31st March, 2020
Rupee depreciate by ` 1 against USD
Rupee appreciate by ` 1 against USD
Rupee depreciate by ` 1 against USD
Rupee appreciate by ` 1 against USD
` crore
Effect on profit before tax and
consequential impact on equity
(-) 13.00
(+) 13.00
Nil
Nil
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.
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:
311
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42. Financial Instruments (Contd.)
Interest expense on loan
Effect on equity/profit before tax
42.4.2 Credit risk management
` crore
As at 31st March, 2021
As at 31st March, 2020
50 bps increase
(+) ` 32.55
(-) ` 32.55
50 bps decrease
(-) ` 32.55
(+) ` 32.55
50 bps increase
(+) ` 37.54
(-) ` 37.54
50 bps decrease
(-) ` 37.54
(+) ` 37.54
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
As at 31st March,
2021
910.87
2,014.07
566.09
740.26
75.37
201.42
4,508.08
` crore
As at 31st March,
2020
1,108.68
592.19
584.92
458.35
83.41
712.90
3,540.45
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.
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. 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.
Up to
1 year
1 to 5
years
5+
years
Total
31st March, 2021
Non-Derivatives
Borrowings #
Trade Payables
Lease Liabilities
Other Financial Liabilities
Total Non-Derivative Liabilities
Derivatives
Other Financial Liabilities
Total Derivative Liabilities
8,850.76
1,137.00
43.58
959.21
10,990.55
6.94
6.94
12,157.80
Nil
106.22
12.09
12,276.11
11,828.56
Nil
312.01
Nil
12,140.57
32,837.12
1,137.00
461.81
971.30
35,407.23
Nil
Nil
Nil
Nil
6.94
6.94
6.94
6.94
` crore
Carrying
Amount
20,840.67
1,137.00
237.11
971.30
23,186.08
31st March, 2020
Non-Derivatives
Borrowings #
18,003.89
Trade Payables
1,001.87
Lease Liabilities
278.85
Other Financial Liabilities
669.97
Total Non-Derivative Liabilities
19,954.58
# 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.
9,323.93
1,001.87
61.26
655.37
11,042.43
11,479.38
Nil
333.45
Nil
11,812.83
29,921.65
1,001.87
538.20
669.97
32,131.69
9,118.34
Nil
143.49
14.60
9,276.43
312
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
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
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.
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 revenue/expenses which are not attributable or allocable to segments have been
disclosed as unallocable. 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.
Segment Information:
(a)
Particulars
Segment Revenue
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(11) (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 #
Profit/(Loss) Before Tax from Discontinued Operations
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
3,843.06
228.90
3,709.00
34.40
7,815.36
(1,260.60)
(121.20)
6,433.56
193.63
6,627.19
739.58
45.73
724.69
(7.22)
1,502.78
(1,518.77)
(109.29)
Nil
Nil
1,193.89
1,068.61
(59.84)
(160.00)
(219.84)
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)
313
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
43. Segment Reporting (Contd.)
Particulars
Segment Assets
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Assets classified as held for sale #
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)
Add/(Less): Unallocable Revenue
Total Segment Revenue
Discontinued Operations- Others #
Total Segment Revenue as reported above
For the year ended
31st March, 2021
For the year ended
31st March, 2020
` crore
4,500.96
651.96
6,819.98
362.23
30,533.82
Nil
42,868.95
875.94
32.97
1,618.77
95.81
21,866.90
Nil
24,490.39
51.05
5.40
743.19
66.83
32.97
899.44
194.84
95.61
331.12
3.17
624.74
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
For the year ended
31st March, 2021
` crore
For the year ended
31st March, 2020
6,180.59
258.00
Nil
41.62
(46.65)
6,433.56
193.63
6,627.19
7,726.39
(792.24)
(21.32)
162.16
(47.10)
7,027.89
343.74
7,371.63
# Pertains to Strategic Engineering Division being classified as Discontinued Operation and disposed of during the year
ended 31 March, 2021 (Refer note 18c).
* Includes amount classified as held for sale other than Strategic Engineering Division.
Notes:
1. (a) Revenue from a DISCOM on sale of electricity with which Company has entered into a Power Purchase Agreement
(b) Revenue from another customer (Industrial undertaking) pertaining to Finance lease
(c) Revenue from one customer (transmission company) in the current year
accounts for more than 10% of Revenue
2. Transfer pricing between operating segments are on an arm's length basis in a manner similar to transactions with third
parties.
314
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Standalone Financial Statements
43. Segment Reporting (Contd.)
(b)
Geographic Information:
The Company's operations is majorly confined within India. Accordingly there are no reportable geographical segments.
44. Recent pronouncements
On March 24, 2021, the Ministry of Corporate Affairs (‘‘MCA’’) through a notification, amended Schedule III of the Companies
Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. Key amendments
relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian
Accounting Standards) Rules 2015 are:
Balance Sheet:
-
-
-
-
-
-
Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly distinguished as current or
non-current.
Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to
prior period errors and restated balances at the beginning of the current reporting period.
Specified format for disclosure of shareholding of promoters.
Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible
asset under development.
If a company has not used funds for the specific purpose for which it was borrowed from banks and financial
institutions, then disclosure of details of where it has been used.
Specific disclosure under ‘additional regulatory requirement’ such as compliance with approved schemes of
arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name
of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details
of benami property held etc.
Statement of profit and loss:
-
Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency
specified under the head ‘additional information’ in the notes forming part of the standalone financial statements.
The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.
45.
Impact of COVID-19
India and other global markets experienced significant disruption in operations resulting from uncertainty caused by the
worldwide coronavirus pandemic. 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 owning Mundra power plant, coal mines and related infrastructure). Based on sensitivity analysis,
management believes that the said uncertainty is not likely to impact the recoverability of Mundra CGU. As the situation is
still continuously evolving, the eventual impact may be different from the estimates made as of the date of approval of these
Financial Statements.
46. The Code on Social Security, 2020
The Code on Social Security 2020 ('Code') has been notified in the Official Gazette on 29th September, 2020.The Code is
not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the
period in which said Code becomes effective and the rules framed thereunder are notified.
47. 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.
48. Approval of Standalone Financial Statements
The Standalone financial statements were approved for issue by the Board of Directors on 12th May, 2021.
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, 12th May, 2021
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
315
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Independent Auditor's Report
To the Members of
The Tata Power Company Limited
Report on the Audit of the Consolidated
AS Financial Statements
Ind
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 2021, 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, 2021,
their consolidated profit/loss 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 46 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 a joint venture 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, 2021. 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.
316
The Tata Power Company Limited Integrated Annual Report 2020-21 How our audit addressed the key audit matter
Our audit procedures and procedures performed by
component auditors, included the following:
• Obtained an understanding of the process and tested
the internal controls associated with the management’s
assessment of Going Concern assumption.
Key audit matters
Management assessment of appropriateness of Going Concern assumptions (as described in Note 40.4.3 of the consolidated
Ind AS financial statements)
The Group has current liabilities of ` 30,768.09 crores and
current assets of ` 16,371.08 crores as at March 31, 2021.
Current liabilities exceed 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
Group uses significant short term borrowings to reduce its
borrowing costs.
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.
Revenue recognition and accrual of regulatory deferrals (as described in Note 18 and 28 of the consolidated Ind AS
financial statements)
the
estimates used
assumptions,
cash flow
in developing business plan and
projections having
to past performance
and current emerging business trends affecting the
business and industry.
• Assessed the Group’s ability to refinance its short term
obligation based on the past trends, credit ratings,
analysis of solvency and liquidity ratios and ability to
generate cash flows and access to capital.
Assessed the adequacy of the disclosures in the consolidated
Ind AS financial statements.
• Discussed with management and assessed
judgements
regards
and
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 as the amount invoiced to
customers based on pre-approved tariff rates agreed with
the regulator. As the Group is entitled to a fixed return
on equity, the difference between revenue recognized
and entitlement as per the regulation is recognized as
regulatory assets / liabilities. The Group has recognized
` 942.71 crores for generation and transmission business and
` 6,416.94 crores for distribution business as accruals as at
March 31, 2021.
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
in determining the
interpretation of tariff regulations.
accruals
Further certain disallowances of claims have been litigated
by the Group which are in various stages of dispute.
judgements are made
including
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,
Company 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.
Our audit procedures and procedures performed by
component auditors included the following:
• Read the Group's accounting policies with respect
to accrual of regulatory deferrals and assessing its
compliance with
Ind AS 114 “Regulatory Deferral
Accounts” and Ind AS 115 “Revenue from 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 substantive audit procedures including:
• Evaluated the key assumptions used by the Group 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.
• Assessed the management’s evaluation of the
likely outcome of the key disputes based on past
precedents and / or advice of management’s expert.
• Assessed the impact recognized by the Company in
respect of tariff orders received.
• Assessed the disclosures
in accordance with the
Ind AS 114 “Regulatory Deferral
requirements of
Accounts” and Ind AS 115 “Revenue from Contract
with Customers”.
317
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Recognition and measurement of deferred tax (as described in Note 12 of the consolidated Ind AS financial statements)
The Group has recognized Minimum Alternate Tax (MAT)
credit receivable of ` 1,298.79 crores as at March 31, 2021.
The Group also has recognized deferred tax assets of
` 410.56 crores on long term capital loss on sale of
investments.
Our audit procedures and procedures performed by
component auditors included the following:
• Read Group’s accounting policies with respect to
recognition and measurement of tax balances
in
accordance with Ind AS 12 “Income Taxes”
Further, pursuant to the Taxation Laws (Amendment) Act,
2019 (new tax regime), the Company has measured its
deferred tax balances expected to reverse after the likely
transition to new tax regime, at the rate specified in the
new tax regime.
The recognition and measurement of MAT credit receivable
and deferred tax balances; is a key audit matter considering
the significance of the amount, judgement involved in
assessing the recoverability of such credits, estimation of
the financial projections for determination of the year of
transition to new tax regime and judgements involved in the
interpretation of tax regulations and tax positions adopted
by the Company.
• Performed test of controls over recognition and
measurement of tax balances through inspection of
evidence of performance of these controls.
• Performed substantive audit procedures including:
•
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”.
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, 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.
•
Read the Group's accounting policies with respect
to
Ind AS 36
impairment
“Impairment of assets”
in accordance with
Our audit procedures and procedures performed by
component auditors, included the following:
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.
is carrying Goodwill of `1,794.57 crores
The Group
relating to acquisition of renewable energy businesses.
The Group is also carrying impairment provision amounting
to ` 1,119.77 crores with respect to Mundra CGU (comprising
Mundra power plant, investment in companies owning
coal mines and related infrastructure), ` 221.86 crores
for investment in company owning hydro power plant
in Georgia and ` 100 crores 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
the carrying value, estimations
the significance of
the
significant
and
impairment assessment.
judgements
involved
the
in
318
•
Performed test of controls over key financial controls
related to accounting, valuation and recoverability of
assets through inspection of evidence.
•
Performed substantive audit procedures including:
• 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 the
requirements of Ind AS 36 “Impairment of assets”.
The Tata Power Company Limited Integrated Annual Report 2020-21 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
the
for
India,
including
of Management
Responsibilities
Consolidated Ind AS financial statements
The Holding Company’s Board of Directors is responsible
for the preparation and presentation of these consolidated
Ind AS financial statements in terms of the requirements
of the Act that give a true and fair view of the consolidated
financial position,
consolidated financial performance
including other comprehensive income, consolidated cash
in equity
flows and consolidated statement of changes
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 Directors of the Holding Company, as aforesaid.
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 Ind AS financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated Ind AS financial statements as a
whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken
on the basis of these consolidated Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
•
•
•
Identify and assess the risks of material misstatement of
the consolidated Ind AS financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or
the override of
internal control.
Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the Holding Company has adequate
internal financial controls 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.
319
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Independent Auditor's Report
•
•
•
Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the ability of the Group and
its associates and joint ventures to continue as a going
concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report
to the related disclosures in the consolidated Ind AS
financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause
the Group and its associates and joint ventures to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content
of the consolidated Ind AS financial statements, including
the disclosures, and whether the consolidated Ind AS
financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the Group and its associates and joint ventures
of which we are the independent auditors and whose
financial information we have audited, to express an
opinion on the consolidated Ind AS financial statements.
We are responsible for the direction, supervision and
performance of the audit of the financial statements of
such entities included in the consolidated 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.
statements for the financial year ended March 31, 2021 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.
Other Matter
(a) We did not audit the financial statements and other
financial information, in respect of 3 subsidiaries, whose
financial statements include total assets of ` 11,202.64
crores as at March 31, 2021, and total revenues of ` 7,755.16
crores and net cash inflow of ` 8.05 crores for the year
ended on that date. These Ind AS financial statement 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 ` 622.76 crores for the year ended March 31, 2021, as
considered in the consolidated Ind AS financial statements,
in respect of 9 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.
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
320
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.
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
The Tata Power Company Limited Integrated Annual Report 2020-21
(b)
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 6 subsidiaries, whose financial statements and other
financial information reflect total assets of ` 60.54 crores
as at March 31, 2021, and total revenues of ` Nil and net
cash inflows of ` 7.39 crores 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 (loss) of ` (25.08) crores for the year ended March 31,
2021, as considered in the consolidated Ind AS financial
statements, in respect of 10 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.
and our
report on Other
Our opinion above on the consolidated Ind AS financial
statements,
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.
Legal
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit and
on the consideration of report of the other auditors on separate
financial statements and the other financial information of
subsidiaries, associates and joint ventures, as noted in the ‘other
matter’ paragraph we report, to the extent applicable, that:
(a) We/the other auditors whose report we have relied
upon have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the
aforesaid consolidated Ind AS financial statements;
(b) Attention is drawn to the matters described in Note 44
of the consolidated Ind AS financial statements related
to non-availability of certain records, documents and
reconciliations pertaining to pre-acquisition period of
the three subsidiaries acquired during the year. In our
opinion, except for the possible effects of the aforesaid,
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;
(c) Attention is drawn to the matters described in Note 44
of the consolidated Ind AS financial statements related
to non-availability of certain records, documents and
reconciliations pertaining
to pre-acquisition period
related to three subsidiaries acquired during the
year. In our opinion, except for the possible effects
of the aforesaid, the Consolidated Balance Sheet, the
Consolidated Statement of Profit and Loss including
Income,
the Statement of Other Comprehensive
the
and
Consolidated Statement of Changes in Equity dealt
with by this Report are in agreement with the books of
account maintained for the purpose of preparation of the
consolidated Ind AS financial statements;
Consolidated
Statement
Cash
Flow
(d)
the
our
aforesaid
consolidated
In
opinion,
the
statements
Ind AS financial
Accounting Standards specified under Section 133 of the
Act, read with Companies (Indian Accounting Standards)
Rules, 2015, as amended;
comply with
(e) On the basis of the written representations received from
the directors of the Holding Company as on March 31,
2021 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, 2021 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 with
reference to consolidated Ind AS financial statements
of the Holding Company and its subsidiary companies,
associate companies and joint ventures, incorporated
in India, refer to our separate Report in “Annexure 1”
to this report;
321
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world ii.
iii.
Provision has been made in the consolidated
Ind AS financial statements, as required under the
applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts
including derivative contracts;
There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Holding Company,
its subsidiaries, associates and
joint ventures,
incorporated
India during the year ended
in
March 31, 2021.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 21112773AAAADI9724
Independent Auditor's 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, 2021 has been
paid / provided by the Holding Company, its subsidiaries,
associates and joint ventures incorporated in India to their
directors in accordance with the provisions of section 197
read with Schedule V to the Act;
(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;
Mumbai
Date: May 12, 2021
322
The Tata Power Company Limited Integrated Annual Report 2020-21 Annexure 1 to the Independent Auditor’s Report of
even date on the Consolidated Ind AS Financial
Statements of The Tata Power Company Limited
financial controls with reference to 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 (hereinafter
referred to as the “Holding Company”) as of and for the year
ended March 31, 2021, we have audited the internal financial
Ind AS financial
controls with reference to consolidated
statements of the Holding Company and its subsidiaries (the
Holding Company and its subsidiaries together referred to
as “the Group”), its associates and joint ventures, which are
companies incorporated in India, as of that date.
in
India, are
responsible
incorporated
Management’s Responsibility for Internal Financial
Controls
The respective Board of Directors of the companies included
in the Group its associates and joint ventures, which are
companies
for
establishing and maintaining internal financial controls based
on, “the internal financial control over financial reporting
criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI)”.
implementation
These responsibilities
and maintenance of adequate
internal financial controls
that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the
respective company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under
the Companies Act, 2013.
include the design,
Auditor’s Responsibility
Our responsibility is to express an opinion on the company's
internal financial controls with reference to 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, specified
under section 143(10) of the Act, to the extent applicable to
an audit of internal financial controls, both issued by the ICAI.
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
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
with reference to consolidated Ind AS financial statements and
their operating effectiveness. Our audit of internal financial
controls with reference to consolidated
Ind AS financial
statements included obtaining an understanding of internal
financial controls with reference to 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
qualified audit opinion on the Holding Company’s internal
Ind AS
financial controls with reference to consolidated
financial statements.
Meaning of
Internal Financial Controls With
Reference to Consolidated Ind AS financial statements
A company's
internal financial control with reference to
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
with reference to 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 acquisition, use, or disposition
of the company's assets that could have a material effect on the
financial statements.
323
OverviewStatutory ReportsFinancial StatementsOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world essential components of internal financial controls stated in
the Guidance Note. We together with the joint auditors of the
said subsidiary companies have issued a disclaimer of opinion
on ICFR with reference to the standalone financial statements of
such subsidiary companies.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy
and operating effectiveness of the internal financial controls
with reference to consolidated Ind AS financial statements in so
far as it relates to three subsidiaries and an associate, which are
companies incorporated in India, is based on the corresponding
reports of the auditors of such companies incorporated in India.
We also have audited, in accordance with the Standards on
Auditing issued by the ICAI as specified under section 143(10)
of the Act, the consolidated Ind AS financial statements of the
Holding Company, which comprise the Consolidated Balance
Sheet as at March 31, 2021, and 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. The disclaimer of opinion with respect
to the subsidiary companies as referred above was considered
in determining the nature, timing, and extent of audit tests
applied in our audit of the March 31, 2021 consolidated Ind AS
financial statements of the Holding Company and this report
does affect our report dated May 12, 2021, which expressed an
unqualified opinion thereon.
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 12, 2021
Independent Auditor's Report
Inherent Limitations of Internal Financial Controls
With Reference to Consolidated Ind AS financial
statements
Because of the inherent limitations of internal financial controls
with reference to 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 with reference to
consolidated Ind AS financial statements to future periods
are subject to the risk that the internal financial control with
reference to 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.
Qualified Opinion
According to the information and explanations given to us
and based on the report issued by other auditors on internal
financial controls over financial reporting with reference to
these consolidated financial statements in case of subsidiary
companies, its associate companies and joint ventures, which
are companies incorporated in India, as at March 31, 2021:
its subsidiary companies,
In our opinion, except for the possible effects of the disclaimer
described below on the achievement of the objectives of the
control criteria in respect of three subsidiary companies, the
Holding Company,
its associate
joint ventures, which are companies
companies and
incorporated
in all material
India, have maintained
in
respects, adequate internal financial controls over financial
reporting (‘ICFR’) and such ICFR with reference to these
consolidated financial statements were operating effectively
as at March 31, 2021, based on the ICFR criteria established by
the Holding Company considering the essential components
of internal financial controls stated in the Guidance Note on
Audit of ICFR issued by the Institute of Chartered Accountants of
India (‘Guidance Note’).
the
year,
through
As described
in Note 44, during
the
Group has acquired power distribution businesses
in
to
three subsidiary companies. Prior
Odisha
acquisition, these businesses were administered and operated
by Odisha Electricity Regulatory Commission
through
GRIDCO Limited, a State Government Company and the
provisions of Companies Act, 2013, including the requirements
of ICFR, were not applicable to them. The three subsidiary
companies are in the process of strengthening their existing
internal controls, including maintenance of sufficient and
appropriate records over key processes considering the
324
The Tata Power Company Limited Integrated Annual Report 2020-21 Consolidated Balance Sheet
as at 31st March, 2021
ASSETS
Non-current Assets
(a) Property, Plant and Equipments
(b) Capital Work-in-Progress
(c) Goodwill
(d) Other Intangible Assets
(e)
Investments accounted for using the Equity Method
(f) Financial Assets
(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
Notes
Page
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
4
342
48,748.86
44,662.61
5 a
5 b
6 a
6 c
7
8
9
10
11
12 a
13
347
347
349
359
360
362
362
363
365
365
370
3,599.80
1,794.57
1,345.85
1,611.52
1,641.57
1,362.18
11,920.63
13,202.65
728.88
604.71
58.14
598.61
1,577.04
328.35
184.02
632.68
30.28
80.88
588.92
578.79
342.00
74.24
1,465.06
72,954.52
1,185.12
65,993.44
14
371
1,884.80
1,752.35
15
7
16 a
16 b
8
9
10
11
13
372
360
372
373
362
362
363
365
370
17 a
373
18
376
499.54
5,000.97
1,573.64
3,782.51
2,330.17
30.71
41.45
310.15
0.45
916.69
16,371.08
3,047.46
92,373.06
6,478.17
98,851.23
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
325
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Consolidated Balance Sheet
as at 31st March, 2021 (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
Notes
Page
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
19 a
19 b
20
378
379
379
21
22
23
24
12 b
25
26
27
22
23
24
25
26
382
383
385
386
365
386
394
395
383
385
386
386
394
17 b
374
18
376
319.56
1,500.00
20,502.70
22,322.26
2,927.30
25,249.56
270.50
1,500.00
17,795.52
19,566.02
2,332.04
21,898.06
30,045.03
3,142.48
17.36
1,390.99
3.03
976.15
839.58
6,217.95
42,632.57
8,436.21
394.83
7,120.08
12,296.46
198.38
270.11
2,052.02
30,768.09
139.78
73,540.44
61.23
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
TOTAL EQUITY AND LIABILITIES
98,851.23
89,748.15
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, 12th May, 2021
326
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
The Tata Power Company Limited Integrated Annual Report 2020-21 Consolidated Statement of Profit and Loss
for the year ended 31st March, 2021
I
II
III
IV
V
VI
Revenue from Operations
Other Income
Total Income
Expenses
Cost of Power Purchased
Cost of Fuel
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
Depreciation and Amortisation Expenses
Other Expenses
Total Expenses
Profit/(Loss) Before Movement in Regulatory Deferral Balances,
Exceptional Items, Tax and Share of Net Profit of Associates and Joint
Ventures accounted for using the Equity Method
Add/(Less): Net Movement in Regulatory Deferral 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
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
6b (ii)
37f
12
6b (i) (b)
359
413
365
359
VIII Profit/(Loss) Before Tax for the Year from Continuing Operations
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
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)
Notes
28
29
Page
396
403
For the year ended For the year ended
31st March, 2020
₹ crore
29,136.37
562.61
29,698.98
31st March, 2021
₹ crore
32,468.10
439.24
32,907.34
30
404
30
31
32
404
404
405
4 & 5 342 &
347
405
33
18
18
18
376
376
376
34a
12
406
365
12
365
17c
17c
375
375
8,334.41
9,074.96
504.60
2,628.19
28.89
0.41
2,156.48
4,010.39
2,744.94
6,220.46
9,922.39
214.00
957.18
111.74
(15.64)
1,440.64
4,493.73
2,633.56
2,812.48
32,295.75
2,342.78
28,320.84
611.59
529.24
Nil
81.80
611.04
1,378.14
(451.68)
(21.32)
284.31
(188.69)
1,222.63
1,189.45
873.39
2,096.02
Nil
(109.29)
Nil
Nil
(109.29)
1,986.73
647.57
(145.69)
Nil
Nil
501.88
1,484.85
(59.85)
(160.00)
(101.48)
(72.17)
(173.65)
(46.20)
1,438.65
952.55
2,142.00
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)
1,316.44
25
386
(296.71)
(87.56)
327
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Consolidated Statement of Profit and Loss
for the year ended 31st March, 2021 (Contd.)
Notes
Page
34a (iii)
34a (iii)
408
408
(b)
(c)
Movement in Regulatory Deferral Balance
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)
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) (₹)
38
414
(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 Consolidated Financial Statements
For the year ended For the year ended
31st March, 2020
₹ crore
Nil
(39.72)
31st March, 2021
₹ crore
310.07
230.77
(1.04)
(4.68)
(3.15)
(423.15)
(371.75)
93.57
86.75
(379.32)
(0.34)
(0.34)
(379.66)
1,058.99
1,127.38
311.27
1,438.65
(380.67)
1.01
(379.66)
746.71
312.28
1,058.99
2.33
3.32
(0.15)
3.17
13.22
13.73
2.23
430.63
128.84
(32.43)
407.06
836.00
0.20
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
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, 12th May, 2021
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
328
The Tata Power Company Limited Integrated Annual Report 2020-21
Consolidated Statement of Cash Flows
for the year ended 31st March, 2021
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
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)
Bad debts
Provision for Warranties
Provision for standby litigation
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
Amortisation of Leasehold Land
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
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
1,986.73
(219.85)
2,368.16
(442.64)
2,744.94
11.00
(67.76)
160.00
(5.60)
4,035.30
(175.65)
(6.78)
25.82
Nil
24.37
69.87
26.50
109.29
(66.27)
Nil
(152.19)
(8.26)
(873.39)
48.23
1.12
(16.75)
(93.26)
(1,103.76)
(885.35)
(17.94)
0.83
21.95
(270.14)
(156.71)
104.63
3.26
(998.00)
(242.80)
400.82
2,633.56
17.00
(235.00)
361.00
24.99
4,529.88
(135.55)
(85.87)
(53.39)
(532.51)
20.71
Nil
10.45
Nil
(49.46)
(3.15)
(89.18)
(9.40)
(952.55)
38.69
Nil
(105.59)
5,883.79
7,650.67
5,384.63
7,310.15
(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
329
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world Consolidated Statement of Cash Flows
for the year ended 31st March, 2021 (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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
Nil
3.68
(3,236.47)
609.31
1,709.92
729.58
(6.91)
1,081.05
356.79
61.23
128.52
430.66
(796.97)
448.63
141.53
233.51
26.04
Nil
(57.19)
69.40
4,490.84
8,905.04
(447.03)
8,458.01
64.95
7,984.41
(609.09)
7,375.32
B. Cash Flow from Investing Activities
Capital expenditure on Property, Plant and Equipments (including capital advances)
(3,335.79)
(2,225.81)
Proceeds from sale of Property, Plant and Equipments (including property, plant
and equipments classified as held for sale)
Proceeds from sale of Strategic Engineering Division (Net) (Refer Note 17c)
(Purchase)/ proceeds from sale of Current Investments (Net)
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
1,549.09
420.85
83.44
(720.75)
(80.26)
844.32
5.46
161.12
66.27
3.15
1,846.06
(175.36)
667.60
36.37
Nil
(305.51)
Nil
(615.26)
577.88
Nil
164.92
49.61
3.84
1,894.53
(123.50)
(542.92)
330
The Tata Power Company Limited Integrated Annual Report 2020-21
Consolidated Statement of Cash Flows
for the year ended 31st March, 2021 (Contd.)
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/(repayment) from Current Borrowings (Net)
Finance Cost Paid
Payment of Lease Liability
Dividend Paid
Additional Income-tax on Dividend Paid
Distribution on Unsecured Perpetual Securities
Net Cash Flow from/(used in) Financing Activities
C
Net Increase in Cash and Cash Equivalents (A + B + C)
Cash and Cash Equivalents as at 1st April (Opening Balance)
Cash and Cash Equivalents Acquired on Business Combinations
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)
In Current Accounts
(ii)
In Deposit Accounts (with original maturity of three months or less)
(b) Cheques on Hand
(c)
(d)
Cash on Hand
Bank Overdraft
Cash and Cash Equivalents relating to Continuing Operations
(a)
Balances with banks
(i)
In Current Accounts
(b)
Book Overdraft
Cash and Cash Equivalents relating to Discontinued Operations
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
2,996.06
155.16
5,602.19
(7,453.61)
(4,121.95)
(3,731.42)
(351.78)
(526.29)
Nil
(171.24)
(7,602.88)
1,522.73
1,834.39
446.29
(120.55)
3,682.85
1,128.34
2,543.84
45.16
65.17
(99.66)
3,682.85
Nil
Nil
Nil
20.07
80.10
7,188.37
(5,607.42)
(1,687.99)
(4,002.50)
(330.03)
(500.57)
(98.60)
(171.00)
(5,109.57)
1,722.83
61.52
Nil
50.04
1,834.39
935.27
919.77
6.44
0.02
(34.71)
1,826.79
7.62
(0.02)
7.60
Total Cash and Cash Equivalents
3,682.85
1,834.39
See accompanying notes to the Consolidated Financial Statements
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.324982E/E300003
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 12th May, 2021
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
331
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Consolidated Statement of Changes in Equity
for the year ended 31st March, 2021
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T
The Tata Power Company Limited Integrated Annual Report 2020-21
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.
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 12,808 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 3,949 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.
2.
2.1
Significant Accounting Policies:
Statement of compliance
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
notified under the Companies (Indian Accounting Standards) Rules, 2015 read with section 133 of the Companies Act, 2013
(as amended from time to time).
2.2
Basis of preparation and presentation
The consolidated financial statements have been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value or revalued amount:
- derivative financial instruments,
- certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
- employee benefit expenses (Refer Note 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 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 financial statements of the Group companies are consolidated on a line-by-line basis and intra-group
balances and transactions including unrealised gain/loss from such transactions are eliminated upon consolidation. These
consolidated financial statements are prepared by applying uniform accounting policies in use at the Group. Profit or loss
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.
333
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2.
Significant Accounting Policies(Contd.)
2.3.2 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 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.
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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
financial statements are as follows:
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.
Bhira Investments Pte. Ltd.
Bhivpuri Investments Ltd.
Khopoli Investments Ltd.
Trust Energy Resources Pte. Ltd.
TP Renewable Microgrid Ltd.
TCL 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.
Supa Windfarm Ltd.
TP Central Odisha Distribution Ltd.
TP Western Odisha Distribution Ltd.
TP Southern Odisha Distribution Ltd.
TP Kirnali Solar Ltd.
TP Solapur Solar Ltd.
TP Akkalkot Renewable Ltd.
TP Saurya Ltd.
TP Roofurja Renewable Ltd.
Subsidiaries (Indirect)
PT Sumber Energi Andalan Tbk. $
NDPL Infra Ltd.
Tatanet Services Ltd. (TNSL) (Consolidated with NELCO Ltd.)
Poolavadi Windfarm Ltd.
Nivade Windfarm Ltd.
TP Wind Power Ltd. (formerly known as Indo Rama Renewables Jath
Ltd.)
TP Solapur Ltd.
TP Kirnali Ltd.
Walwhan Renewable Energy Ltd.
Clean Sustainable Solar Energy Pvt Ltd. @
Country of
Incorporation/
Principal Place of
Business
%
voting power held
as at
31st March, 2021
%
voting power held
as at
31st March, 2020
India
India
India
India
India
India
Singapore
Mauritius
Mauritius
Singapore
India
India
Singapore
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Indonesia
India
India
India
India
India
India
India
India
India
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
100
51
51
51
74
100
100
100
100
92.50
51
50.04
74
100
100
100
100
100
100
100
100
100
100
100
100
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
92.50
51
50.04
74
100
100
100
100
100
99.99
99.99
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Significant Accounting Policies (Contd.)
Name
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. @
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, 2021
%
voting power held
as at
31st March, 2020
India
India
India
India
India
India
India
India
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
100
100
100
100
100
100
100
100
50.04
72
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
50.04
72
100
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2021.
@ Consolidated with Walwhan Renewable Energy Ltd.
$ Classified as held for sale.
Other Significant Accounting Policies, critical accounting estimates and judgements
Foreign Currencies
The Group’s consolidated financial statements are presented in Indian Rupee, which is also the parent company’s functional
currency. For each entity, the Group determines the functional currency and items included in the financial statements of
each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot
rates at the date the transaction first qualifies for recognition. However, for practical reasons, the Group uses an average rate
if the average approximates the actual rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of
exchange at the reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated
using 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
3.
3.1
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3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
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.
3.2
Current versus non-current classification
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated
as current when it is:
- expected to be realised or intended to be sold or consumed in normal operating cycle,
- held primarily for the purpose of trading,
- expected to be realised within twelve months after the reporting period, or
- cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the reporting period.
All other assets are classified as non-current.
A liability is current when:
-
-
-
-
it is expected to be settled in normal operating cycle,
it is held primarily for the purpose of trading,
it is due to be settled within twelve months after the reporting period, or
there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Group has identified twelve months as its operating cycle.
3.3 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
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 expenses 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.
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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 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.
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 and loss.
When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate
of its recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of
an impairment loss is recognised immediately in statement of profit and loss.
3.5.5 Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is primarily
derecognised (i.e. removed from the Group’s balance sheet) when:
- the right to receive cash flows from the asset have expired, or
-
the Group has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group
has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
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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 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 statement of profit and loss.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if these are incurred for the
purpose of repurchasing in the near term. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising
on remeasurement recognised in the statement of profit and loss.
3.6.4 Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
consolidated 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.
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3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
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.
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 statement
of profit and loss. Any gains or losses arising from changes in the fair value of derivatives are taken directly to consolidated
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 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 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 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 statement of profit and loss in the same period in which the hedged item affects the consolidated 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 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 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.
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3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
3.10 Government Grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grant will be received.
Government grants relating to income are determined and recognised in the consolidated 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 equipments 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.
3.13 Critical accounting estimates and judgements
In the application of the Group's accounting policies, the Management is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods. Detailed information about each of these
estimates and judgements is included in relevant notes together with information about the basis of calculation for each
affected line item in the consolidated financial statements.
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3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
The areas involving critical estimates or judgements are:
Estimates and judgements used for impairment assessment of property, plant and equipments 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 Note 28
Estimations used for determination of tax expenses and tax balances - Note 34 and Note 12
Estimates and judgements related to the assessment of liquidity risk - Note 40.4.3
Judgement to estimate the amount of provision required or to determine required disclosure related to litigation and claims
against the Group - Note 36 and Note 37
Estimates and judgement are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under
the circumstances.
4.
Property, Plant and Equipments
Accounting Policy
Property, plant and equipments 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 equipments 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 equipments as a replacement
if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the consolidated 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 equipments 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 equipments over estimated
useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management
believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are
likely to be used.
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4.
Property, Plant and Equipments (Contd.)
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
40 years
5 to 50 years
25 to 60 years
25 years
5 to 40 years
3 to 40 years
3 to 6 years
4 to 40 years
5 to 40 years
5 to 15 years
4 to 15 years
25 to 40 years
25 years
25 years
De-recognition
An item of property, plant and equipments is derecognised upon disposal or when no future economic benefits are expect-
ed 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 consolidated 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 writ-
ten down to its recoverable amount.
In assessing value in use, the estimated future post tax cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In de-
termining 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.
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 the 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 statement of profit and loss.
343
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
4.
b.
Property, Plant and Equipments (Contd.)
Right-of-Use Assets - ROU (Refer Note 22)
Description
Cost
Balance as at 1st April 2020
Exchange Movement
Additions
Disposals
Balance as at 31st March, 2021
Accumulated depreciation and impairment
Balance as at 1st April 2020
Depreciation Expense - Continuing Operations
Disposals
Exchange Movement
Balance as at 31st March, 2021
Net carrying amount
As at 31st March, 2021
As at 31st March, 2020
Description
Cost
Land
Plant and
Equipments
Building-
Plant
Port and
Intake
Channel
Ships
₹ crore
Total
1,022.01
Nil
14.21
(48.72)
14.52
(0.08)
Nil
Nil
11.97
2,362.54
Nil
17.82
Nil
Nil
59.77
Nil
669.98
(21.55)
Nil
Nil
4,081.02
(21.63)
91.80
(48.72)
987.50
14.44
29.79
2,422.31
648.43
4,102.47
119.26
50.68
(19.96)
Nil
4.88
5.58
Nil
Nil
2.95
4.20
Nil
Nil
73.36
75.50
Nil
Nil
53.60
52.66
Nil
(2.51)
254.05
188.62
(19.96)
(2.51)
149.98
10.46
7.15
148.86
103.75
420.20
837.52
902.75
3.98
9.64
22.64
2,273.45
544.68
3,682.27
9.02
2,289.18
616.38
3,826.97
Land
Plant and
Equipments
Building-
Plant
Port and
Intake
Channel
Ships
₹ crore
Total
Balance on transition to Ind AS 116 as at 1st April 2019
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
119.26
4.88
Nil
Nil
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
346
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
45,066.59
3,682.27
48,748.86
40,835.64
3,826.97
44,662.61
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements 5 a. Goodwill
Cost
Balance at beginning of year
Additions during the year (Refer Note 44)
Balance at end of year
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
1,641.57
153.00
1,794.57
1,641.57
Nil
1,641.57
Impairment assessment of Goodwill (other than acquired during the year)
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, 2021 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 8.86% 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, 2020 - 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)
8.86% (31st March, 2020 10.05% to 10.54%) 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 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 statement of
profit and loss unless such expenditure forms part of carrying value of another asset.
347
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5 b. Other Intangible Assets (Contd.)
Estimated useful lives of the Intangible Assets are as follows:
Type of asset
Copyrights, patents, other intellectual property rights, services and operating rights
Right-of-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
Description
Cost
Balance as at 1st April, 2020
Reclassified to Right-of-Use Assets as at 1st April, 2019
(Refer Note 4b)
Additions
Disposals
Balance as at 31st March, 2021
Accumulated amortisation and impairment
Balance as at 1st April, 2020
Amortisation expense - Continuing Operations
Disposals
Balance as at 31st March, 2021
Net carrying amount
As at 31st March, 2021
As at 31st March, 2020
Description
Copyrights,
patents, other
intellectual
property rights,
services and
operating rights #
Right-
of-Use
Assets
(Intake
Channel)
$
Customer
Contracts
acquired
under business
combination
Computer
Software
$
Power
Distribution
Rights @
₹ crore
Total
4.60
Nil
1,386.14
415.20
70.51
1,876.45
Nil
0.63
(0.26)
4.97
2.72
2.13
(0.26)
4.59
0.38
1.88
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
71.74
(0.11)
(0.32)
25.36
(0.06)
(0.32)
97.73
(0.43)
1,386.14
486.83
95.49
1,973.43
226.36
279.93
59.80
Nil
47.62
(0.11)
5.26
4.17
(0.04)
514.27
113.72
(0.41)
286.16
327.44
9.39
627.58
1,099.98
159.39
86.10 1,345.85
1,159.78
135.27
65.25
1,362.18
Copyrights,
patents, other
intellectual
property rights,
services and
operating rights #
Right-
Of-Use
Assets
(Intake
Channel)
$
Customer
Contracts
acquired
under business
combination
Computer
Software
$
Power
Distribution
Rights @
₹ crore
Total
Cost
Balance as at 1st April, 2019
Reclassified to Right-Of-Use Assets as at 1st April, 2019
(Refer Note 4b)
Additions
Disposals
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
Disposals
Balance as at 31st March, 2020
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
348
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
5 b. Other Intangible Assets (Contd.)
Net carrying amount
As at 31st March, 2020
As at 31st March, 2019
1.88
1.70
Nil
1,159.78
135.27
65.25
1,362.18
121.96
1,223.93
169.17
45.06 1,561.82
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.
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
As at
31st March, 2021
As at
31st March, 2020
₹ crore
2,442.60
188.62
113.72
Nil
₹ crore
2,315.57
197.18
123.76
2.95
2,744.94
2,633.56
6 a.
Investments accounted for using the Equity Method
As at
31st March,
2021
Quantity
As at
31st March,
2020
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2021
₹ crore
As at
31st March,
2020
₹ 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.
9,67,500
9,67,500
100
II
Investment in Joint Ventures
(a) Investment in Equity Shares fully Paid-up
A
0.01
3.69
4.28
97.30
690.73
796.01
0.01
3.30
4.28
80.47
642.20
730.26
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 B.V.
Khoromkheti Netherlands B.V.
Resurgent Power Ventures Pte. Ltd.
1,23,540
1,23,540
USD 100
4,395.44 **
4,357.21 **
300
82,380
18,000
3
300
USD 1
3,192.35
3,794.31
82,380
IDR 10,000
0.25
18,000
IDR 10,000
746.05
3
SGD 1
25.22
0.32
1,521.47
28.86
1,07,459
1,07,459
IDR 10,000
Nil *
Nil *
10,769
7,500
300
20,573
500
5,46,319
10,769
7,500
300
16,459
500
77,929
IDR
1,00,000
USD 100
USD 1
Euro 1
Euro 1
USD 1
10
68.63
205.16
0.82
284.89
204.91
0.90
231.18 **
265.88 **
Nil
436.52
488.80
Nil
353.00
484.43
349
Powerlinks Transmission Ltd. (Refer Note 4 below) 23,86,80,000 23,86,80,000
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
6 a.
Investments accounted for using the Equity Method (Contd.)
As at
31st March,
2021
Quantity
As at
31st March,
2020
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2021
₹ crore
As at
31st March,
2020
₹ crore
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
700.62
31.77
Nil
Nil
617.54
23.55
Nil
Nil
10,522.81
11,937.27
Quoted
PT Baramulti Sukessarana Tbk.
** Less: Impairment in the value of Investments
[Refer Note 6b (i) (a) & (b)]
68,02,90,000 68,02,90,000
IDR 100
1,339.63 **
1,346.74 **
11,862.44
13,284.01
B
1,004.68
10,857.76
1,030.69
12,253.32
(b) Investment in Perpetual Securities in Joint Ventures
Unquoted
Adjaristsqali Netherlands B.V.
N.A.
N.A.
Total
Notes:
*Denotes figure below ₹ 50,000
**Impairment in the value of Investments
C
A+B+C
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)
4. Shares pledged
266.86
266.86
219.07
219.07
11,920.63
13,202.65
503.41
588.31
1,069.11
1,067.23
10,851.52
12,135.42
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, 2021
Nos.
31st March, 2020
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, 2021
As at
31st March, 2020
A
B
Tata Projects Ltd.
Dagachhu Hydro Power
Corporation Ltd.
EPC Contracts
Hydro Power Generation
Company
India
Bhutan
47.78%
26.00%
47.78%
26.00%
350
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,310.59
14,682.94
(1,834.82)
1,842.34
12,822.83
(1,676.15)
(12,748.64)
(11,680.70)
1,410.07
9.32
1,400.75
1,308.32
10.73
1,297.59
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
12,187.38
10,687.05
125.70
(21.45)
104.25
Nil
104.25
108.65
(35.49)
73.16
96.00
169.16
Dividend received by the Group during the year
Nil
9.68
Reconciliation of the above summarised financial information to the carrying amount of the interest in Tata Projects Ltd.
recognised in the consolidated financial statements:
Net Assets of Tata Projects Ltd.
Proportion of the Group's ownership interest in Tata Projects Ltd.
Goodwill
Deferred Tax Liability on Unrealised profits
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
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,400.75
47.78%
667.43
23.30
Nil
690.73
1,297.59
47.78%
618.90
23.30
Nil
642.20
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,053.90
18.79
(647.78)
(50.87)
374.03
1,054.54
25.69
(715.82)
(54.78)
309.63
351
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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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
181.25
64.74
(0.33)
64.41
143.11
(42.58)
Nil
(42.58)
Dividend received by the Group 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 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, 2021
₹ crore
As at
31st March, 2020
₹ crore
374.03
26.00%
97.30
309.63
26.00%
80.47
IV
Details of individually not Material Associates
Name of Associate
Principal Activity
Yashmun Engineers Ltd.
Brihat Trading Private Ltd.
Billing and other related Services
Trading Business
The Associated Building Co. Ltd.
Services Provided for Building
Country of
Incorporation
and Principal
Place of
Business
India
India
India
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March, 2021
As at
31st March, 2020
27.27%
33.21%
33.14%
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
352
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
0.93
(0.01)
0.92
2.10
Nil
2.10
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
7.98
7.55
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
Nil
Nil
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
Nil
Nil
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
V
Details and Financial Information of Material Joint Ventures at the end of the reporting period is as follows:
Name of Joint Venture
Principal Activity
Sr.
No.
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, 2021
As at
31st March, 2020
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, 2021.
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
Dividend received by the Group 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, 2021
₹ crore
As at
31st March, 2020
₹ crore
2,633.42
4,824.48
(480.70)
(5,531.56)
1,445.64
484.60
(1,813.39)
Nil
4,752.12
4,592.79
(2,163.40)
(6,300.88)
880.63
461.55
(2,292.92)
(1,070.16)
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
21,662.75
909.59
(10.46)
899.13
1,757.62
2,524.56
43.10
140.67
852.85
24,628.04
1,205.85
11.75
1,217.60
1,678.78
1,369.55
56.20
69.99
1,212.38
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Kaltim Prima Coal
recognised in the consolidated financial statements:
Net Assets of PT Kaltim Prima Coal
Proportion of the Group's ownership interest in PT Kaltim Prima Coal
carried forward ...........................
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,445.64
30.00%
433.69
433.69
880.63
30.00%
264.19
264.19
353
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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
Dividend received by the Group 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, 2021
₹ crore
As at
31st March, 2020
₹ crore
433.69
3,961.75
4,395.44
(512.30)
3,883.14
264.19
4,093.02
4,357.21
(529.32)
3,827.89
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
Nil
2,042.62
Nil
(1,126.10)
916.52
1,151.62
2,740.87
Nil
(1,292.63)
2,599.86
Nil
Nil
(1,110.92)
(1,256.25)
Nil
Nil
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
Nil
16.33
Nil
16.33
491.14
Nil
22.15
Nil
Nil
Nil
53.48
Nil
53.48
Nil
Nil
34.76
Nil
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Indocoal Resources
(Cayman) Ltd. recognised in the consolidated financial statements:
Net Assets of Indocoal Resources (Cayman) Ltd.
Proportion of the Group's ownership interest in Indocoal Resources (Cayman) Ltd.
Goodwill
Carrying amount of the Group's interest in Indocoal Resources (Cayman) Ltd.
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
916.52
30.00%
274.96
2,917.39
3,192.35
2,599.86
30.00%
779.96
3,014.35
3,794.31
354
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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
Dividend received by the Group 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, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,917.41
1,464.92
(116.72)
(778.77)
2,486.84
123.76
(638.50)
Nil
2,130.73
4,421.75
(145.49)
(1,331.94)
5,075.05
211.14
(1,260.02)
Nil
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
934.63
652.61
0.13
652.74
1,064.97
639.04
(0.01)
639.03
Nil
Nil
147.17
51.79
62.40
164.99
140.54
79.47
62.47
212.74
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Nusa Tambang
Pratama recognised in the consolidated financial statements:
Net Assets of PT Nusa Tambang Pratama
Proportion of the Group's ownership interest in PT Nusa Tambang Pratama
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
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
2,486.84
30.00%
746.05
5,075.05
30.00%
1,522.52
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,220.39
786.12
(106.52)
(435.92)
1,464.07
1,314.57
593.23
(104.66)
(435.83)
1,367.31
355
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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
Dividend received by the Group during the year
The above profit/(loss) for the year include the following:
Depreciation and amortisation
Interest Income
Interest Expense
Income-tax Expense
281.06
(38.05)
(57.28)
250.22
(50.90)
(61.38)
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
2,358.18
222.07
(3.24)
218.83
19.29
107.74
2.58
5.90
70.42
2,935.80
277.02
(3.92)
273.10
18.43
125.46
1.87
8.02
93.54
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Baramulti
Suksessarana Tbk recognised in the consolidated financial statements:
Net Assets of PT Baramulti Suksessarana Tbk
Proportion of the Group's ownership interest in PT Baramulti Suksessarana Tbk
Goodwill
Carrying amount of the Group's interest in PT Baramulti Suksessarana Tbk
Impairment of Goodwill
Carrying amount of the Group's interest in PT Baramulti Suksessarana Tbk (net of
impairment)
E
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, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,464.07
26.00%
380.66
958.97
1,339.63
(270.52)
1,367.31
26.00%
355.50
991.24
1,346.74
(279.51)
1,069.11
1,067.23
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,637.24
268.09
(724.66)
(233.87)
946.80
6.50
(201.15)
(503.88)
1,635.15
265.75
(788.44)
(277.94)
834.52
3.83
(248.83)
(575.53)
356
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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/(Expense) for the year
Total Comprehensive Income/(Expense) for the year
Dividend received by the Group 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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
297.90
111.64
0.64
112.28
Nil
Nil
0.31
51.62
38.16
301.29
148.52
(0.37)
148.15
49.28
Nil
0.56
53.84
(3.82)
Reconciliation of the above summarised financial information to the carrying amount of the interest in Industrial Energy
Ltd. recognised in the consolidated financial statements:
Net Assets of Industrial Energy Ltd.
Proportion of the Group's ownership interest in Industrial Energy Ltd.
Carrying amount of the Group's interest in Industrial Energy Ltd.
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
946.80
74.00%
700.62
834.52
74.00%
617.54
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, 2021
As at
31st March, 2020
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
Koromkheti Netherlands BV #
Hydro power generation
Hydro 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
Singapore
India
India
India
India
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2021.
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
50.00%
40.00%
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%
26.00%
51.00%
50.00%
40.00%
33.33%
357
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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
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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
181.66
Nil
181.66
62.17
Nil
62.17
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,755.21
(221.86)
1,533.35
1,864.75
(221.86)
1,642.89
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
*
*
(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 equipments ₹ 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 result 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 10.50% p.a. (31st March 2020: 10.87% p.a.) and investment in coal mines and related infrastructure companies is
14.11% p.a. (31st March 2020: 12.68% p.a.).
6b.
(i)
358
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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, the Group performed the recoverability
assessment and recognised the reversal of impairment of ₹ 235.00 crore comprising of reversal of ₹ 103.74 towards
financial guarantee obligation and reversal of ₹ 131.26 towards its investment in ABV which has been disclosed as an
exceptional item in the statement of profit and loss.
(ii) During the previous year, 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, gain on hedge instrument of ₹ 105.09 crore has been recognised in
other income.
6 c. Other Investments
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.
Bharti Airtel Ltd
(b) Investment in Equity Shares fully Paid-up
Unquoted
Tata Industries Ltd. *
Tata Sons Pvt. Ltd. *
Haldia Petrochemicals Ltd.
Tata International Ltd. (Refer Note 4 below)
Tata Capital Ltd
Others
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)
As at
31st March,
2021
Quantity
As at
31st March,
2020
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2021
₹ crore
As at
31st March,
2020
₹ crore
2,33,420
766
3,57,159
51,022
7,94,416
62,919
2,33,420
766
3,57,159
51,022
7,94,416
Nil
1
1
10
10
2
10
68,28,669
6,673
2,24,99,999
36,000
23,33,070
68,28,669
6,673
2,24,99,999
24,000
23,33,070
100
1,000
10
1,000
10
23.39
0.24
10.78
0.65
82.26
3.25
120.57
115.47
194.70
56.48
59.40
12.29
0.50
438.84
559.41
11.13
0.14
2.53
0.16
50.12
Nil
64.08
115.47
194.70
56.48
18.77
12.29
Nil
397.71
461.79
2,94,00,000
2,94,00,000
AUD 1.50
1.44
2.86
6,000
6,000
25
0.16
1.60
0.16
3.02
359
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6 c. Other Investments (Contd.)
III
Investments carried at Amortised Cost
(a) Government Securities (Unquoted) fully Paid-up
(b) Statutory Investments
Contingencies Reserve Fund Investments
Government Securities (Unquoted) fully paid-up
Sub-total III (a) + III (b)
Total
Notes:
1. Aggregate Market Value of Quoted Investments
2. Aggregate Carrying Value of Quoted Investments
3. Aggregate Carrying Value of Unquoted Investments
As at
31st March,
2021
Quantity
As at
31st March,
2020
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2021
₹ crore
As at
31st March,
2020
₹ crore
3.03
40.00
164.84
167.87
127.87
167.87
728.88
632.68
122.01
122.01
606.87
66.94
66.94
565.74
4. During the year, the Group subscribed to right issue of equity shares 12,000 Nos. from Tata International Ltd.
*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 - (Refer Note 37d.)
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Current
Considered Good - Secured (Refer Note 1 below)
Considered Good - (Refer Note 2 and Note 3 below)
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Total
Notes:
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
604.71
1.18
605.89
1.18
604.71
453.83
4,571.43
413.36
5,438.62
437.65
5,000.97
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
1. The Group holds security deposits and Letter of Credit of ₹ 453.83 crore (31st March, 2020 - ₹ 515.48 crore).
2. The carrying amount of trade receivable of ₹ 205.00 does not include receivables which are subject to a factoring arrangement. Under this
arrangement, the Group has transferred the relevant receivables to the factor in exchange for cash on non recourse basis. The Group, therefore,
has derecognised the said receivables under the factoring arrangement.
3. Trade receivables include receivables amounting to ₹ 80.17 crore (31st March, 2020 - ₹ 299.79 crore) and ₹ 83.28 crore (31st March, 2020 -
₹ 86.03 crore) 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.
360
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
7.
7.1
Trade Receivables (Contd.)
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:
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
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
Balance at the end of the year
*Expected Credit Loss (%)
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
0.40%
2.58%
1.35%
16.26%
0.13%
1.79%
0.59%
13.11%
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
3,195.80
1,146.40
514.01
1,188.30
1,785.39
1,050.25
414.54
1,644.06
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
438.06
396.02
3.52
2.75
438.83
54.07
(12.03)
438.06
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.
361
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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, 2021
As at
31st March, 2020
₹ crore
₹ crore
53.52
32.41
85.93
32.39
53.54
Nil
54.39
54.39
54.39
Nil
4.60
58.14
28.44
5.48
33.92
5.48
28.44
Nil
35.23
35.23
35.23
Nil
2.27
30.71
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
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.
Finance Lease Receivable - Non-current
Finance Lease Receivable - Current
Total
362
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
598.61
41.45
640.06
588.92
33.20
622.12
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
9.
Finance Lease Receivable - At Amortised Cost (Contd.)
9.1
Leasing Arrangements
(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 ₹ 84.86 crore (31st March, 2020 ₹ 88.91 crore) as income for finance lease during the year ended 31st March, 2021.
(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
₹ 6.57 crore (31st March, 2020 ₹ 2.64 crore) as income for finance lease during the year ended 31st March, 2021.
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, 2021
Minimum Lease Payments
As at 31st March, 2020
₹ crore
126.75
120.12
118.93
117.79
115.94
599.53
641.50
1,241.03
600.97
640.06
117.66
114.26
113.24
112.13
111.10
568.39
680.20
1,248.59
626.47
622.12
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 ₹ 11.98 crore (31st March,
2020 - ₹ 10.81 crore) as rental income for operating lease during the year ended 31st March, 2021.
10. Other Financial Assets - At Amortised Cost
(Unsecured unless otherwise stated)
Non-current
(i) Receivables under Service Concession Agreement
(ii) Unbilled Revenue
(iii) Others
Unsecured, considered good
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
196.14
199.48
104.47
95.33
Advance towards Equity (Refer Note 1 below)
Government Grants Receivables*
In Deposit Accounts (with maturity more than twelve months)
191.24
14.82
623.61
181.78
22.32
36.38
363
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10. Other Financial Assets - At Amortised Cost (Contd.)
Receivable on sale of Strategic Engineering Division (at fair value through profit or
loss) (Refer Note 2 below)
Other Advances
Total
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
365.99
80.77
1,276.43
1,577.04
Nil
43.50
283.98
578.79
Notes:
1. Odisha Electricity Regulatory Commission ('OERC') had issued a request for proposal (RFP) for sale of controlling interest in distribution business
of North Electricity Supply Utility of Odisha. The Group had bid for it and has been identified as the successful bidder. As per the requirement of
RFP, the Group had deposited ₹ 191.24 crore with OERC. Pending signing of sale agreements for the completion of sale,the amount deposited is
disclosed as non- current financial assets and will be converted to equity after signing of sale agreements (Refer Note 44).
2. Represents contingent consideration on sale of SED, receivable by the Group on achievement of certain milestone (Refer Note 17c).
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
Derivative Contract (Fair Value through Profit and Loss)
Receivable on sale of Current Investments
Receivable on sale of Property, Plant & Equipments
Insurance Claims Receivable
Government Grants Receivables*
Recoverable from consumers
Other Advances
Balances with Banks: (Refer Note below)
In Deposit Accounts (with remaining maturity of less than twelve months)
Unsecured, considered doubtful
Other Advances
Less: Allowances for Doubtful Advances
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
5.34
30.56
6.63
5.22
1.40
49.15
1.40
47.75
4.08
1.48
Nil
2.74
4.16
32.35
75.65
122.75
19.19
2.35
260.67
(2.35)
258.32
4.91
3.51
6.85
2.64
1.40
19.31
1.40
17.91
2.88
301.64
736.76
2.64
0.10
30.40
232.17
87.93
Nil
2.63
1,394.27
(2.63)
1,391.64
Total
310.15
1,412.43
Note:
Balances with Banks held as Margin Money Deposits against Guarantees.
* 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.
364
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
11. Tax Assets
Non-current Tax Assets
Advance Income-tax (Net)
Total
Current Tax Assets
Advance Income-tax (Net)
Total
12. Deferred Tax
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
328.35
328.35
0.45
0.45
342.00
342.00
1.10
1.10
Accounting Policy
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit. 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.
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. 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.
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 of Income Tax Act, 1961), deferred tax assets or liabilities,
if any, have been recorded 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 related to items recognised outside profit or loss is recognised 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 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.
365
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
12. Deferred Tax (Contd.)
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
2020 - 21
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 Equipments*
Others
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
3,202.10
3,018.08
184.02
4,432.60
4,358.36
74.24
Opening
Balance
Recognised in
Profit or Loss @
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
41.69
9.97
7.51
23.63
3,173.69
(1,111.94)
0.15
78.94
184.56
76.76
859.92
6.92
7.12
(70.11)
17.35
(12.75)
(227.72)
42.79
Nil
Nil
Nil
93.57
0.05
Nil
Nil
Nil
Nil
49.20
33.60
2,061.75
100.84
8.88
201.91
64.01
632.20
49.71
4,432.60
(1,324.12)
93.62
3,202.10
4,322.80
35.56
(1,345.45)
(27.26)
4,358.36
(1,372.71)
Nil
32.43
32.43
2,977.35
40.73
3,018.08
Net Deferred Tax Assets
74.24
48.59
61.19
184.02
* including Right of Use and Intangible Assets
@ During the year, one of the subsidiaries while filing the income tax return of FY 2019-2020, transitioned to the new regime as per Taxation Laws
(Amendment) Act, 2019. Accordingly, current year movement includes remeasurement of deferred tax balances at new tax rate of 25.17%,
reversal of unabsorbed depreciation to the extent of additional depreciation claimed as a deduction in prior years and its corresponding
addition in written down value of property, plant and equipments as per tax books.
366
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
12. Deferred Tax (Contd.)
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 Equipments*
Others
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
12 b. Deferred Tax Liabilities
Deferred Tax Assets
Deferred Tax Liabilities
Total - Net Deferred Tax Liabilities
2020 - 21
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
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
2,108.97
3,085.12
976.15
1,838.55
3,012.59
1,174.04
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
59.30
92.61
69.64
77.92
297.97
1,173.73
0.95
29.01
12.40
25.02
6.23
12.43
60.25
27.93
112.57
61.05
(0.47)
3.89
(10.75)
2.02
1,838.55
275.15
Nil
(4.91)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
0.18
(4.73)
65.53
100.13
129.89
105.85
410.54
1,234.78
0.48
32.90
1.65
27.22
2,108.97
367
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
12. Deferred Tax (Contd.)
2020 - 21
Deferred tax liabilities in relation to
Property, Plant and Equipments*
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
2,737.96
9.39
24.00
107.67
32.43
99.99
1.15
3,012.59
130.81
2.02
2.30
(24.97)
Nil
(4.81)
(0.39)
104.96
Nil
Nil
Nil
Nil
(32.43)
Nil
Nil
(32.43)
2,868.77
11.41
26.30
82.70
Nil
95.18
0.76
3,085.12
Net Deferred Tax Liabilities
1,174.04
(170.19)
(27.70)
976.15
* including Finance lease receivables, Right of Use and Intangible Assets
2019 - 20
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
Deferred tax assets in relation to
Allowance for Doubtful Debts, Deposits and Advances
Provision for Employee Benefits, Entry Tax and Others
Unabsorbed Depreciation
Carry Forward Business Losses
Carry Forward Capital Loss
MAT Credit Entitlement
Government Grant
Deferred Revenue -Ind AS 115
Lease Liability
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
Derivative financial instruments designated for hedging
Undistributed Profits of Joint Ventures
Others
58.47
73.79
142.17
Nil
343.62
1,364.42
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
2,025.06
(204.97)
2,824.46
0.38
24.90
9.66
18.07
202.69
Nil
Nil
1.71
(86.50)
(0.38)
(24.90)
(0.27)
5.93
(95.02)
Nil
92.90
(0.33)
Nil
18.46
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
18.46
Nil
Nil
Nil
Nil
Nil
Nil
32.43
7.09
(0.23)
59.30
92.61
69.64
77.92
297.97
1,173.73
0.95
29.01
12.40
25.02
1,838.55
2,737.96
Nil
Nil
9.39
24.00
107.67
32.43
99.99
1.15
Net Deferred Tax Liabilities
1,056.81
96.40
20.83
1,174.04
*including Finance lease receivables, Right of Use and Intangible Assets
3,081.87
(108.57)
39.29
3,012.59
368
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
12. Deferred Tax (Contd.)
Notes:
i. The amount and the expiry of unrecognised deferred tax asset is as detailed below:
As at 31st March, 2021
Unrecognised deferred tax assets
Business losses
Unabsorbed depreciation
MAT credit
Capital Loss
Total
As at 31st March, 2020
Unrecognised deferred tax assets
Business losses
Unabsorbed depreciation
MAT credit
Capital Loss
Total
Within
one year
Greater than
one year, less
than five years
163.81
121.33
Nil
Nil
Nil
Nil
4.67
Nil
Greater
than five
years
670.70
Nil
212.98
359.80
No
expiry
date
Nil
1,788.49
Nil
8.48
₹ crore
Closing balance
955.84
1,788.49
217.65
368.29
163.81
126.00
1,243.48
1,796.97
3,330.26
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
360.17
No
expiry
date
Nil
2,227.40
Nil
14.11
₹ crore
Closing balance
1,467.70
2,227.40
189.54
376.47
557.86
1,365.41
2,241.51
4,261.11
ii. The Group has not recognized any deferred tax liabilities for taxes amounting to ₹ 2,617.47 crore (31st March, 2020 - ₹ 2,382.71 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 the
distribution and is not likely to cause the distribution 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, 2021
For the year ended
31st March, 2020
For the year ended
31st March, 2021
For the year ended
31st March, 2020
(48.59)
17.38
(61.19)
(2.13)
(170.19)
96.40
(27.70)
20.83
72.17
32.41
Nil
Nil
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)
(146.61)
146.19
(88.95)
18.70
369
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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) Deferred Expense
Unsecured, considered good
(v) 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) Other Loans and Advances
Unsecured, considered good
Prepaid Expenses
Advances to Vendors
Deferred Rent Expense
Unbilled Revenue (contract assets)
Power Banking Receivable
Other Advances
Doubtful
Less: Allowance for Doubtful Advances
Total
370
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
168.71
0.11
168.82
0.11
168.71
3.30
12.25
52.87
16.90
82.02
29.42
1.19
1,161.06
19.36
1.07
1,182.68
1.07
1,181.61
1,465.06
226.55
8.16
234.71
157.71
433.01
1.11
21.74
41.35
27.06
0.19
682.17
0.19
681.98
916.69
49.47
0.16
49.63
0.16
49.47
1.64
25.44
68.76
28.92
123.12
30.53
1.52
960.84
18.00
Nil
980.36
Nil
980.36
1,185.12
173.13
0.84
173.97
103.46
422.51
1.11
30.07
36.66
2.61
1.68
598.10
1.68
596.42
770.39
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements 14.
Inventories
Accounting Policy
Inventories are stated at the lower of cost and net realisable value. Cost of inventory includes cost of purchase and other costs
incurred in bringing the inventories to their present location and condition. Costs of inventories are determined on weighted
average basis. Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the
sale. Unserviceable/damaged stores and spares are identified and written down based on technical evaluation.
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 (Refer Note 1 below)
(e) Loose Tools
(f) Others
Property under Development
Total
As at
31st March, 2021
₹crore
As at
31st March, 2020
₹ crore
450.78
380.78
316.79
6.42
94.15
828.31
157.55
197.80
3.99
96.99
446.30
316.06
1.60
1.08
187.98
150.57
1,884.80
1,752.35
Notes:
1. The Group has recognised ₹ 5.72 crore (31st March, 2020 - ₹ 19.32 crore) as an expense for the write down of unserviceable stores and spares
inventory.
2. Refer Note 21 and Note 27 for Inventories pledged as security for liabilities.
371
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15. Current Investments
I
Investments carried at Fair Value through Profit and Loss
Unquoted
(a) Investment in Mutual Funds
Total
Notes:
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
499.54
699.51
499.54
699.51
Aggregate Carrying Value of Unquoted Investments
499.54
699.51
16 a. Cash and Cash Equivalents
Accounting Policy
Cash and cash equivalent comprise of 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 comprise 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.
(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 and Cash Credit 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
Reconciliation of liabilities from Financing Activities
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,128.34
2,543.84
45.16
65.17
3,782.51
(99.66)
3,682.85
Nil
Nil
Nil
Nil
935.27
919.77
6.44
0.02
1,861.50
(34.71)
1,826.79
7.62
(0.02)
7.60
Nil
3,682.85
1,834.39
Particulars
Non-current Borrowings (including Current
Maturity of Non-current Borrowings)
Current Borrowings (excluding Bank
Overdraft and Cash Credit from Bank)
Lease Liabilities
Total
As at
1st April,
2020
Cash flows
Proceeds
Repayment
Reclassification
₹ crore
Changes
related to
Discontinued
Operations
Foreign
Exchange
As at
31st March,
Others
2021
36,531.57
5,602.19
(7,453.61)
Nil
57.83
(125.27)
121.99
34,734.70
11,809.65
3,560.22
28,380.91
80.97
(32,090.32)
(365.10)
51,901.44
34,064.07
(39,909.03)
272.12
Nil
272.12
Nil
Nil
(50.92)
Nil
15.11
261.22
8,336.55
3,537.31
57.83
(176.19)
398.32
46,608.56
372
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
16 a. Cash and Cash Equivalents (Contd.)
Particulars
Non-current Borrowings (including Current
Maturity of Non-current Borrowings)
Current Borrowings (excluding Bank
Overdraft)
Lease Liabilities
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
51,387.83
42,412.07
Nil
49,600.44
(44,100.06)
(21.30)
(49,728.78)
166.29
Nil
86.54
Nil
Nil
Nil
38.80
8.06
Nil 108.84
125.14
430.27
11,809.65
3,560.22
51,901.44
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, 2021
₹ crore
As at
31st March, 2020
₹ crore
2,311.10
214.23
19.07
2, 330.17
18.45
232.68
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 equipments 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
Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as
profit or loss after tax from discontinued operations in the statement of profit and loss. Additional disclosures are provided
hereunder. All other notes to the financial statements mainly include amounts for continuing operations, unless otherwise
mentioned.
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17 a. Assets Classified as Held For Sale (Contd.)
Land [Refer Note (i) and (iii)]
Building [Refer Note (ii) and (iii)]
Other Property, Plant and Equipments [Refer Note (iii) and (v)]
Investments carried at Fair Value through Other Comprehensive Income
Investments in Associates and Joint Ventures
Loan to and other receivables from Joint Venture
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
Notes:
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
301.58
8.50
20.21
178.68
2,480.12
22.83
9.31
26.23
Nil
3,047.46
301.66
8.50
1,300.67
22.81
2,562.59
22.83
127.70
26.23
1,880.07
6,253.06
As at
31st March, 2021
₹ crore
139.78
Nil
139.78
As at
31st March, 2020
₹ crore
30.46
1,032.07
1,062.53
(i) During the year, the Group sold Hadapsar land at the sale value of ₹ 26.44 crore (Book Value ₹ 0.08 crore) which was classified as held for sale.
The resultant gain of ₹ 26.36 crore has been disclosed in statement of profit and loss under Other Income.
(ii) During the previous year, the Group sold Metropolitan building at the sale value of ₹ 13.90 crore (Book Value ₹ 0.89 crore) The resultant gain
of ₹ 13.01 crore has been disclosed in the statement of profit and loss.
(iii) During the previous year, the Group has reclassified following assets from held for sale to Property, plant and equipments
- Building at Erangal ₹ 0.23 crore
- Oil Tankage unit at Trombay Land ₹ 0.04 crore, Building and Plant and Equipments ₹ 4.68 crore
(iv) During the previous year, the Group has classified Helicopter (Book Value ₹ 0.17 crore) from Property, Plant and Equipments to held for sale.
(v) During the year, the Group has sold three ships which was owned by Trust Energy Resources Pte. Limited (a wholly owned subsidiary of the
Holding Company) for a consideration of ₹ 1,607 crore. The Group has simultaneously entered into a long term affreightment contract for the
shipping of coal with the buyer. Resultant gain on sale of ships has been deferred and would be recognized over the term of affreightment
contract in accordance with Ind AS 115 ‘Revenue from contract with customers.’
(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 ₹ 1,869.46
crore as at 31st March, 2021 (31st March, 2020 - ₹ 1,931.60 crore).
(b) During the previous year, the Group decided to divest its investment in Itezhi Tezhi Power Corporation (‘ITPC’) of ₹ 587.91 crore along with
loan and other receivables from ITPC amounting to ₹ 18.59 crore and ₹ 4.15 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, 2021.
(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 financial statements. The impact of the sale on the financial statement will not be significant.
(viii) During the previous 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 reclassified the said project as held for sale. During the
year, the Group has received an amount of ₹ 118.27 crore against the said project.
374
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
17 c. Assets Classified as Held For Sale - Discontinued Operations
During the earlier year, the Group approved sale of its Strategic Engineering Division (SED) to Tata Advanced Systems Ltd.
(TASL) [a wholly owned subsidiary of Tata Sons Pvt. Ltd.] as a going concern on slump sale basis, subject to regulatory
approvals at an enterprise value of ₹ 2,230 crore (out of which ₹ 1,040 crore payable at the time of closing and ₹ 1,190 crore
payable on achieving certain milestones). Accordingly, defence business segment is presented as discontinued operations.
On 31st October, 2020, the Group has completed the sale of its SED to TASL and has received upfront consideration of
₹ 597 crore (net of borrowings of ₹ 537.00 crore transferred to TASL) after certain adjustments as specified in the scheme.
Results of Strategic Engineering Division for the year are presented below:
Income
Revenue from Operations
Other Income
Total Income
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 Expenses/(Credit)
Current Tax
Deferred Tax
Total Tax Expenses/(Credit)
Profit/(Loss) before tax 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.
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
193.63
23.52
217.15
139.28
52.66
24.91
60.15
277.00
(59.85)
(160.00)
(101.48)
(72.17)
(173.65)
(46.20)
(0.34)
Nil
(46.54)
343.77
Nil
343.77
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)
Major classes of Assets and Liabilities of Strategic Engineering Division classified as held for sale are as follows:
Assets
Non-current Assets
Property, Plant and Equipments
Capital Work-in-Progress
Intangible Assets
Intangible Assets Under Development
Non-current Financial Assets
Other Non-current Assets
Current Assets
Inventories
Current Financial Assets
Other Current Assets
As at
31st March, 2020
₹ crore
382.27
422.58
124.13
356.71
3.68
35.40
83.30
663.67
169.33
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17 c. Assets Classified as Held For Sale - Discontinued Operations (Contd.)
Assets Classified as Held For Sale
Less: Impairment Loss on Remeasurement of 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
2,241.07
(361.00)
1,880.07
594.76
27.68
258.99
9.76
140.88
1,032.07
848.00
Note:
During the year, the Group has reassessed the fair value of consideration receivable from TASL and has recognised an impairment loss of
₹ 160 crore (31st March, 2020 ₹ 361 crore) in the consolidated 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 (Closing Balance)
Less: Transferred on sale of Strategic Engineering Division
Total of cash and cash equivalents (Net)
18. Regulatory Deferral Account
From 1st April, 2020
to 31st October, 2020
For the year ended
31st March, 2020
₹ crore
286.62
(32.30)
(85.62)
168.70
7.60
176.30
(176.30)
Nil
₹ crore
127.80
(44.99)
(81.32)
1.49
6.11
7.60
Nil
7.60
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
376
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
18. Regulatory Deferral Account (Contd.)
A separate line item is presented in the 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, 2021
As at
31st March, 2020
₹ crore
₹ crore
61.23
Nil
6,478.17
6,416.94
5,480.17
5,480.17
(i) As per the Ind AS-114 'Regulatory Deferral Accounts', the business of electricity distribution is a Rate Regulated activity
wherein the regulators determine Tariff to be charged from consumers based on prevailing regulations in place.
The Group is governed by the tariff regulations and tariff orders issued by Regulatory Commissions in Maharashtra,
Delhi and Odisha. These regulations 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 these Regulations.
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March,
2021, 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) Billed during the year as per approved Tariff
Net movement in Regulatory Deferral Balances (i + ii + iii)
Regulatory Assets/(Liabilities) on carrying cost recognised as revenue
Recovery from/(Payable to) Group's Generation Business
Net movement in Regulatory Deferral Balances in respect of
earlier years (Refer Note 1 below)
Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income)
Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income)
on account of new tax regime
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Closing Regulatory Asset (Net of Liabilities)
(A+B+C+D+E+F+G)
Movement in Regulatory Asset
- recognised in profit or loss
- in other comprehensive income
Total
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
5,480.17
5,758.13
10,132.62
8,569.70
4,196.36
(13,489.67)
839.31
3.00
12.66
Nil
81.80
2,666.99
(11,688.37)
(451.68)
24.00
(15.28)
(21.32)
284.32
Nil
6,416.94
(98.00)
5,480.17
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
529.24
310.07
839.31
(451.68)
Nil
(451.68)
Notes:
1. During the previous year, pursuant to receipt of true-up tariff order from MERC for the years 2017-18 and 2018-19 , the Group had recognised a
charge of ₹ 21.32 crore to revenue from operations.
377
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18. Regulatory Deferral Account (Contd.)
2.
In respect of the Group's power distribution business in Delhi, Delhi Electricity Regulatory Commission (DERC) vide its order dated 28th
August, 2020 has trued up regulatory deferral account balance up to 31st March, 2019 at ₹ 1,890 crore as against ₹ 4,579.69 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 equipments, 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 11th 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 shared the preliminary draft report
of physical verification of property, plant and equipments for the period from FY 2004-05 to FY 2015-16. The Group after analysing the draft
report have submitted the response along with necessary documents in support of capitalisation on 29th December, 2020.
19 a. Share Capital
Authorised
Equity Shares of ₹ 1/- each
At the beginning of the year
Add: Increase during the year
Outstanding at the end of the year
As at 31st March, 2021
₹ crore
Number
As at 31st March, 2020
₹ crore
Number
350,00,00,000
200,00,00,000
350.00
350,00,00,000
200.00
550.00
229.00
779.00
Nil
2,29,00,000
350.00
Nil
350.00
229.00
929.00
325,22,67,007
325.23
276,17,00,970
276.17
319,53,39,547
319.54
270,47,73,510
270.48
Cumulative Redeemable Preference Shares of ₹ 100/- each
2,29,00,000
Issued
Equity Shares [including 28,32,060 shares (31st March, 2020 -
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
fully Paid-up
Equity Shares
[excluding 28,32,060 shares
(31st March, 2020 - 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 ₹ 0.01 crore (31st March, 2020 -
₹ 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
16,52,300
0.06
16,52,300
319.56
0.04
319.50
0.04
270.44
0.06
270.50
(i)
Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:
Equity Shares
At the beginning of the year
Issued during the year [Refer Note 20(4)]
Outstanding at the end of the year
378
As at 31st March, 2021
As at 31st March, 2020
Number
₹ crore
Number
₹ crore
2,70,64,25,810
49,05,66,037
3,19,69,91,847
270.50 2,70,64,25,810
49.06
Nil
319.56 2,70,64,25,810
270.50
Nil
270.50
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
19 a. Share Capital (Contd.)
(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.
Life Insurance Corporation of India
Matthews Pacific Tiger Fund
ICICI Prudential Bharat Consumption Funds*
As at 31st March, 2021
As at 31st March, 2020
Number
% Holding
Number
% Holding
144,45,13,021
45.21
95,39,46,984
16,41,25,329
14,93,84,497
8,91,12,249
5.14
4.68
2.79
17,15,81,237
18,03,16,487
21,83,11,309
35.27
6.34
6.67
8.07
* 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, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,500.00
Nil
1,500.00
Nil
1,500.00
1,500.00
In an earlier year, the Company raised 1,500 crore through issue of Unsecured Perpetual Securities (the "Securities"). These
Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. 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. Subsequent to the year
end, pursuant to debenture trust deed dated 23rd June, 2011, the Company has exercised the call option to redeem the
Securities on 2nd June, 2021 along with final interest.
20. Other Equity
General Reserve
Closing Balance
Securities Premium
Add: Increase on issue of shares during the year (Refer Note 4 below)
Closing Balance
Capital Reserves
Statutory Reserves
As at
31st March, 2021
As at
31st March, 2020
₹ crore
4,086.53
4,086.53
5,647.80
2550.94
8,198.74
232.09
660.08
₹ crore
4,086.53
4,086.53
5,647.80
Nil
5,647.80
232.09
660.08
379
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20. Other Equity (Contd.)
Debenture Redemption Reserve
Opening Balance
Add/(Less): Amount transferred from/(to) Retained Earnings (Net)
Closing Balance
Capital Redemption Reserve
Opening Balance
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/(Loss) for the year
Other Comprehensive Income/(Expense) arising from Remeasurement of Defined Benefit
Obligation (Net of Tax)
Transfer from Equity Instrument through Other Comprehensive Income (Refer Note 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)
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
Effective Portion of Cash Flow Hedge
Opening balance
Add/(Less): Effective Portion of Cash Flow Hedge for the year
Closing Balance
Total
380
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
638.20
(13.14)
625.06
515.76
515.76
124.07
2.21
126.28
728.90
(90.70)
638.20
515.76
515.76
122.59
1.48
124.07
4,387.49
1,127.38
3,265.79
1,017.38
3.14
Nil
13.14
171.23
Nil
419.24
Nil
2.21
Nil
550.98
4,938.47
(7.54)
Nil
230.77
223.23
1414.63
(336.40)
1,078.23
96.41
(278.18)
(181.77)
Nil
666.34
90.70
170.76
56.12
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
Nil
96.41
96.41
20,502.70
17,795.52
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
20. Other Equity (Contd.)
Notes:
1.
2. The shareholders of the parent company in their meeting held on 30th July, 2020 approved final dividend of ₹ 1.55 per share aggregating
Includes gain on fair valuation of land which is not available for distribution ₹ 362.34 crore (31st March, 2020 - ₹ 362.34 crore).
3.
₹ 419.24 crore for the financial year 2019-20. The said dividend was paid to the holders of fully paid equity shares on 3rd August, 2020.
In respect of the year ended 31st March, 2021, 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 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 ₹ 495.72 crore (31st March, 2020 - ₹ 419.68 crore).
4. During the year, the shareholders in the Annual General Meeting dated 30th July,2020 has approved the issuance of 49,05,66,037 equity shares
of the face value of ₹ 1 each at ₹ 53 per equity share for an amount aggregating to ₹ 2,600 crore to Tata Sons Pvt. Ltd. on preferential basis. The
Company has allotted the said equity shares to Tata Sons Pvt. Ltd. on 13th August, 2020.
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 to transfer profits from retained earnings for appropriation purposes. The amount is to be utilised in
accordance with the provision of the Companies Act, 2013.
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 Group 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 Group is not creating additional debenture redemption reserve (DRR) from the
effective date of amendment. 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.
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.
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20. Other Equity (Contd.)
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 equity instruments 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
11,509.47
1,938.80
9,423.77
370.00
As at 31st March, 2021
As at 31st March, 2020
Non-current Current Maturities* Non-current Current Maturities*
₹ crore
₹ crore
₹ crore
₹ crore
Term Loans
From Banks
Deferred Payment Liabilities-Sales Tax Deferral
Others
1,769.55
Nil
673.67
2.83
2,185.01
2.83
943.28
20.26
13,279.02
2,615.30
11,611.61
1,333.54
(ii) Secured
Debentures
Redeemable Non-Convertible Debentures
2,411.82
247.26
2,460.13
87.25
Term Loans
From Banks
From Others
12,961.04
1,393.15
16,766.01
1,785.82
41.29
2,074.37
16,596.40
2,027.00
21,083.53
2,375.77
39.87
2,502.89
Total
30,045.03
4,689.67
32,695.14
3,836.43
*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.
382
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
21. Non-current Borrowings - At Amortised Cost (Contd.)
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, 2021
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
13,493.80
1,938.80
1,705.00
5,800.00
550.00
500.00
1,500.00
1,500.00
2,444.94
673.67
1,585.81
105.46
45.00
35.00
2.83
2.83
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2,666.19
247.25
559.75
467.05
319.45
361.75
710.94
Nil
14,773.26
1,438.60
1,785.83
41.29
2,653.42
102.33
2,421.08
112.80
1,442.36
133.28
1,571.70
165.25
3,892.34
866.29
1,006.52
17.36
34,819.62 4,689.67 6,606.31 8,906.39 2,490.09 2,633.70 6,969.57
2,523.88
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.
Total
82.13
2.79
34,734.70
Range of interest rates for:
1. Debentures - 6% to 10.75%
2. (a) Term loan of foreign Companies - 1.26% to 2.24%
(b) Term loan of Indian Companies - 4.30% to 9.40%
3. Term loan from others - 7.50% to 9.30%
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:
383
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22. Lease Liabilities (Contd.)
Plant and Machinery - 3 years
-
- Vessels - 12.5 years
-
-
The Group presents right-to-use assets that do not meet the definition of investment property in ‘Property, plant and
equipments.
Port Intake channel- 40 years
Leasehold Land including sub-surface rights- 2 to 95 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 ₹ 3,537.31 crore (31st March, 2020 - ₹ 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.
Leasing arrangement as Lessee
The Group has lease contracts for various items of plant, machinery, land, vehicles and other equipments 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 equipments 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
For the year ended
31st March, 2021
188.62
315.90
31.48
0.33
₹ 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, 2021. Further, refer Note 40.4.3
for maturity analysis of lease liabilities.
Amount as per the Statement of Cash Flows
Total cash outflow of leases
Non-current
Lease Liabilities
Total
Current
Lease Liabilities
Total
384
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
351.78
330.03
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
3,142.48
3,142.48
3180.48
3,180.48
394.83
394.83
379.74
379.74
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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
(e) Payable to Customer
Current
(a) Current Maturities of Long-term Debt (Refer Note 21)
(b) Interest accrued but not due on Borrowings from Others
(c)
(d) Investor Education and Protection Fund shall be credited
by the following amounts namely: (Refer Note 1 below)
Interest accrued but not due on Borrowings from Joint Ventures
Unpaid Dividend
Unpaid Matured Debentures
(e) Other Payables
Payables for Capital Supplies and Services
Advance Received for Sale of Investments [Refer Note 17b (vi)(a)]
Contingent Consideration Payable (Fair Value through Profit and Loss)
Derivative Contracts (Net)- (at Fair Value through Profit and Loss)
Security Deposits from Electricity Consumers (including interest accrued but not due)
Security Deposits from Customers
Tender Deposits from Vendors
Payable under 'Pass through arrangement' of trade receivables
Supplier's Credit (Refer Note 2 below)
Payable to employees
Payable to acquiree company (Refer Note 3 below)
Payable to Consumers
Other Financial Liabilities
Total
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
740.86
Nil
348.40
Nil
301.73
1,390.99
4,689.67
688.86
150.45
23.23
0.09
996.32
1,645.60
39.65
192.51
2,242.87
39.02
43.13
Nil
652.94
71.53
193.33
310.53
316.73
12,296.46
688.16
5.12
28.20
0.04
Nil
721.52
3,836.43
657.76
181.08
22.61
0.09
440.08
1,576.59
42.57
64.03
285.84
13.45
39.88
275.55
Nil
Nil
Nil
Nil
66.94
7,502.90
Notes:
1.
Includes amounts outstanding aggregating ₹ 1.69 crore (31st March, 2020 - ₹ 1.48 crore) for more than seven years pending disputes and legal
cases.
2. Certain coal suppliers have granted additional interest bearing credit period to the Group over and above their original credit period. To
leverage on better interest rate, the Group has entered into a Suppliers’ Credit Program (“Facility”) with a party whereby the party shall
pay the said coal suppliers on the original due date on behalf of the Group and the Group shall pay the party on the new due date along
with interest. This Facility is for USD 500 million and available for an initial period of 18 months. The Group has utilised USD 89.70 million
of this facility as at 31st March, 2021. As the Facility provided by the third party is within the credit period provided by the coal vendors, the
outstanding liability has been disclosed under other financial liabilities.
Pursuant to vesting order issued by the Odisha Electricity Regulation Commission ('OERC'), trade receivables for pre-acquisition period are not
transferred to the Group. However, the Group as a collection agent needs to collect these receivables and use the same amount for paying
obligations not transferred to the Group. The Group performs these activities purely as an agent of Western Electricity Supply Company of
Odisha ('WESCO'). (Refer Note 44)
3.
385
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24. Tax Liabilities
Non Current
Income-Tax Payable (Net)
Total
Current
Income-Tax Payable (Net)
Total
25. Provisions
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
3.03
3.03
3.03
3.03
198.38
198.38
129.49
129.49
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
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.
Restructuring provisions are recognised only when the Group has a constructive obligation, which is when: (i) a detailed
formal plan identifies the business or part of the business concerned, the location and number of employees affected, a
detailed estimate of the associated costs, and the timeline; and (ii) the employees affected have been notified of the plan’s
main features.
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 benefit 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 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 consolidated statement of profit and loss on the earlier of:
- the date of the plan amendment or curtailment, and
- the date that the Group recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the
following changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
- Net interest expense or income.
386
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
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. 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 are based on expected future inflation rates.
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.
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
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, 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, 2021
As at
31st March, 2020
₹ crore
₹ crore
183.22
88.37
62.82
428.94
25.31
788.66
50.92
50.92
171.94
51.79
60.88
69.30
16.59
370.50
36.90
36.90
839.58
407.40
29.38
27.79
3.16
117.90
4.08
182.31
10.94
74.86
2.00
87.80
30.50
7.99
3.12
55.43
2.06
99.10
9.18
3.64
4.50
17.32
270.11
116.42
Provision
for
Warranties
Provision
for Losses
of Joint
Ventures
Provision
for Losses/
Onerous
Contracts
Provision
for
Rectification
Work
39.23
10.45
(3.60)
Nil
46.08
83.45
Nil
Nil
14.74
3.16
(0.06)
(83.45)
Nil
(14.20)
3.64
13.40
Nil
(8.90)
Nil
4.50
₹ crore
Total
150.82
13.61
(12.56)
(97.65)
54.22
387
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25. Provisions (Contd.)
Provision
for
Warranties
Provision
for Losses
of Joint
Ventures
Provision
for Losses/
Onerous
Contracts
Provision
for
Rectification
Work
Balance as at 1st April, 2020
Additional provisions recognised
Reductions arising from payments
Reductions arising from remeasurements or settlement
without cost
Balance as at 31st March, 2021
46.08
26.49
(10.71)
Nil
61.86
Nil
Nil
Nil
Nil
Nil
3.64
71.22
Nil
Nil
74.86
4.50
Nil
(2.50)
Nil
2.00
Total
54.22
97.71
(13.21)
Nil
138.72
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.
5. During the year, the Group has acquired the electricity distribution business of central, southern and western Odisha. As a part of business
transfer, all the employees of the undertaking were transferred to the Group on a continuity of service conditions. Certain employees of said
electricity distribution business transferred to the Group are entitled to pension plan, gratuity plan and rehabilitation scheme (post-employ-
ment benefit plans) which are managed by separate trusts created for the purpose which is controlled and monitored by State Government.
As on the date of acquisition, the plan liabilities exceeds plan assets. The vesting order prescribes the mechanism for funding of such plan
liabilities based on request from the respective employee benefit trusts whereby the Group is required to fund the shortfall and is entitled to si-
multaneously recover the amounts from consumers. The Group has assessed these plans are defined benefit plans and accordingly recognised
it in the books of accounts. As the Group acts as an intermediary on behalf of the trusts to collect the amounts from the consumers, the amount
recoverable from consumers for the pre-acquisition period amounting to ₹ 223.34 crore are netted off with revenue from operations.
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 ₹ 69.31 crore (31st March, 2020 - ₹ 67.88 crore) for provident and pension fund contributions
and ₹ 9.25 crore (31st March, 2020 - ₹ 10.75 crore) for superannuation contributions in the consolidated statement of profit
and loss. The said amount is excluding of amounts recognised by the Strategic Engineering Division (SED) (Discontinued
operations). The contributions payable to these plans by the Group are at rates specified in the rules of the plans.
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 Group expects shortfall of ₹ 6.50 crore which
has been provided as an expenditure during the year.
1.
2.
2.1
388
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
The actuary has provided a valuation of provident fund liability based on the assumptions listed and determined the net
short fall of ₹ 6.50 crore as at 31st March, 2021 (31st March, 2020 - ₹ 10.52 crore) which has been recognised as an expense
during the year.
Pension Fund
The Odisha Distribution Companies acquired by the Group during the year have a defined benefit pension plan, the pension
plan is primarily governed by the Odisha Civil Services (Pension) Rules, 1992. The level of benefits, eligibility depends on the
date of joining, member's length of service and salary at the retirement date. The pension plan is funded plan. The fund is
in the form of a trust and is governed by Trustees appointed by the respective subsidiaries and regulations framed in this
regard. The Trustees are responsible for the administration of the plan assets and for defining the investment strategy in
accordance with the regulations.
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 recognised as an expenditure for the year (₹ crore)
As at
31st March, 2021
As at
31st March, 2020
7.50% p.a.
6.60% p.a.
1,70.29
6.50
8.50% p.a.
6.50% p.a.
21.15
10.52
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, 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
Amount recognised in Other Comprehensive Income
Employer contribution
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2020
Balance as at 1st April, 2020
Liability (includes amount recoverable from consumers for the pre-acquisition period -
Refer Note 25.5 above)
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 financial assumptions
Actuarial (gains)/losses arising from experience
Amount recognised in Other Comprehensive Income
₹ crore
760.31
22.02
56.34
78.36
Nil
(1.59)
(3.30)
13.84
8.95
Nil
49.34
(98.17)
8.97
807.76
807.76
4,235.09
47.40
189.92
237.32
0.18
37.87
326.17
364.22
₹ crore
752.04
Nil
57.21
57.21
(40.00)
Nil
Nil
Nil
(40.00)
21.13
49.34
(98.17)
8.97
750.52
750.52
524.52
Nil
67.03
67.03
76.02
Nil
Nil
76.02
Net
amount
₹ crore
8.27
22.02
(0.87)
21.15
40.00
(1.59)
(3.30)
13.84
48.95
(21.13)
Nil
Nil
Nil
57.24
57.24
3,710.57
47.40
122.89
170.29
(75.84)
37.87
326.17
288.20
389
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25. Provisions (Contd.)
Funded Plan:
Employer contribution
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Less: Amount recoverable from consumers for pre-acquisition period(Refer Note 25.5 above)
Balance as at 31st March, 2021
Present value
of obligation
Fair value of
plan assets
₹ crore
Nil
44.14
(350.00)
22.80
(3,855.88)
1,505.45
₹ crore
222.31
44.14
(343.92)
22.80
(326.86)
1,036.57
Net
amount
₹ crore
(222.31)
Nil
(6.09)
Nil
(3,529.02)
468.88
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 serv.ice.
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.
The gratuity plan of the Odisha Distribution Companies acquired by the Group during the year is governed by the Odisha
Civil Services (Pension) Rules, 1992 and 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
trust regulations.
2.2
The principal assumptions used for the purposes of the actuarial valuations for funded and unfunded
plan were as follows:
Valuation as at
Discount Rate
Salary Growth Rate
Turnover Rate
Pension Increase Rate
Mortality Table
As at
31st March, 2021
6.6% to 6.97% p.a
5% to 8% p.a.
0.5% to 8% p.a.
4% to 5% p.a.
Indian Assured Lives Mortality (2006-08)
(modified) Ult & 100% of Indian Assured
Lives Mortality
(2012-2014)
Annual Increase in Healthcare Cost
8% p.a.
390
As at
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.
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
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) Gratuity Fund Plan:
Balance as at 1st April, 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*
Balance as at 1st April, 2020 *
Liability (includes amount recoverable from consumers for the pre-acquisition period -
Refer Note 25.5 above)
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
Less: Amount recoverable from consumers for pre-acquisition period (Refer Note 25.5 above)
Balance as at 31st March, 2021*
* Net assets is classified as "Other Current Assets"
(b) Unfunded Plan - Gratuity and Other Defined Benefit Plans:
Balance as at 1st April, 2019
Current service cost
Past service cost
Present value
of obligation
₹ crore
Fair value of
plan assets
₹ crore
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
352.91
309.06
37.31
Nil
33.48
(0.89)
69.90
0.80
8.03
(6.23)
17.21
(0.34)
19.47
Nil
(90.03)
(22.85)
0.89
(269.36)
369.99
(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)
(358.73)
(94.70)
Nil
Nil
(26.22)
Nil
(26.22)
(16.99)
Nil
Nil
Nil
Nil
(16.99)
(47.96)
57.51
Nil
Nil
89.69
(397.40)
Net
amount
₹ crore
(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)
(5.82)
214.36
37.31
Nil
7.26
(0.89)
43.68
(16.19)
8.03
(6.23)
17.21
(0.34)
2.48
(47.96)
(32.52)
(22.85)
0.89
(179.67)
(27.41)
Gratuity
Amount
₹ crore
22.58
2.72
Nil
Other Defined
Benefit Plans
Amount
₹ crore
112.56
6.87
0.25
391
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25. Provisions (Contd.)
(b) Unfunded Plan - Gratuity and Other Defined Benefit Plans:
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
Balance as at 1st April, 2020
Liability (includes amount recoverable from consumers for the pre-acquisition period - Refer Note 25.5 above)
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: Amount recoverable from consumers for pre-acquisition period (Refer Note 25.5 above)
Balance as at 31st March, 2021
Reconciliation with amount presented in the Balance Sheet
Gratuity
Amount
₹ crore
Other Defined
Benefit Plans
Amount
₹ crore
Nil
1.60
Nil
4.32
(0.56)
2.33
3.64
Nil
5.41
(2.72)
0.56
Nil
30.15
30.15
Nil
2.99
0.06
Nil
1.88
Nil
4.93
0.04
(0.27)
8.58
0.61
8.96
(3.44)
11.51
Nil
Nil
52.11
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
131.49
157.38
9.02
5.68
Nil
8.09
Nil
22.79
(0.71)
1.55
(3.40)
(0.03)
(2.59)
(10.50)
(2.44)
0.10
(152.29)
143.94
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)
392
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
(27.41)
52.11
24.70
88.37
27.79
91.46
24.70
(5.82)
30.15
24.33
51.79
7.99
35.45
24.33
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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, 2021
₹ crore
612.82
428.94
As at
31st March, 2020
₹ crore
188.73
69.30
62.82
3.16
117.90
612.82
60.88
3.12
55.43
188.73
2.4
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:
Change in assumption
31st March,
2021
31st March,
2020
Increase in assumption
31st March,
2021
31st March,
2020
Discount rate
Salary/Pension growth rate
Mortality rates
Healthcare cost
0.50%
0.50%
1 year
0.50%
0.50%
0.50%
1 year
0.50%
Decrease by
Increase by
Decrease by
Increase by
Decrease in assumption
31st March,
2021
31st March,
2020
₹ crore
₹ crore
Increase by
1,325.53
Decrease by
1,273.68
Increase by
Decrease by
0.44
0.30
26.54
18.56
5.74
4.60
₹ crore
530.54
208.56
6.26
353.53
₹ crore
24.15
19.97
5.84
5.17
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.
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
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
596.35
523.32
454.90
106.05
155.63
145.32
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25. Provisions (Contd.)
Between 3 - 4 years
Between 4 - 5 years
Beyond 5 years
The weighted average duration of:
Provident Fund
Gratuity Fund
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
439.56
407.23
4,314.54
134.28
136.92
723.06
As at
31st March, 2021
As at
31st March, 2020
7.0 Years
7.4 Years
7.0 Years
7.4 Years
2.6
Risk exposure:
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan assets underperform
this yield, it will result in deficit. These are subject to interest rate risk. To offset the risk, the plan assets have been deployed in
high grade insurer managed funds.
Inflation rate risk:
Higher than expected increase in salary 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:
Gratuity
31st March, 2021 31st March, 2020 31st March, 2021 31st March, 2020 31st March, 2021 31st March, 2020
Provident Fund
Pension
Quoted Equity Instruments
Debt & Other Instruments
Government Securities
26. Other Liabilities
%
5%
54%
41%
%
4%
42%
54%
%
15%
30%
55%
%
18%
55%
27%
%
Nil
54%
46%
%
Nil
Nil
Nil
Non-current
Consumers' Benefit Account [Refer Note 37(f )]
Deferred Revenue - Service Line Contributions from Consumers
Advance from Customers
Deferred Rent Liability
Deferred Revenue Liability
Deferred Revenue Grant*
Government Grant towards cost of capital assets (Pending to be utilized)
Total
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
72.35
4,251.30
0.08
42.76
809.69
16.49
1,025.28
6,217.95
16.97
1,321.37
0.11
45.43
683.43
17.21
Nil
2,084.52
* The Group has recognised an income of ₹ 2.20 crore (31st March, 2020 - ₹ 0.89 crore) on account of Deferred Grants during the year in the
statement of profit and loss account.
394
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements 26. Other Liabilities (Contd.)
Current
Statutory Liabilities
Advance from Customers/Public Utilities
Advance from Consumers
Liabilities towards Consumers
Statutory Consumer Reserves [Refer Note 37(f )]
Deferred Revenue Liability
Other Liabilities
Total
27. Current Borrowings - At Amortised Cost
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
347.02
776.75
432.01
240.09
179.00
43.51
33.64
241.86
280.94
501.21
195.96
168.00
41.62
23.49
2,052.02
1,453.08
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
(i) Unsecured
From Debentures
(a) Redeemable Non-Convertible Debentures
Nil
370.00
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
(ii) Secured
From Banks
(a) Buyers' Line of Credit
(b) Short-term Loans
(c) Cash Credit from Bank
(d) Bank Overdraft - repayable on demand
Nil
82.39
2,487.68
612.97
Nil
3,922.76
7,105.80
62.62
1,250.52
13.78
3.49
1,330.41
9.23
34.71
1,562.44
2,022.78
140.28
6,630.18
10,769.62
Nil
1,074.74
Nil
Nil
1,074.74
Total
8,436.21
11,844.36
Note:
The Group had 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.
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.
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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:
Sale of Power - Generation (Thermal and Hydro)
(i)
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)
(iii)
(iv)
(v)
Sale of Power - Generation (Wind and Solar)
Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the
contracted rate. The transaction price is adjusted for significant financing component, if any and the adjustment is
accounted as finance cost.
Transmission of Power
Revenue from transmission of power is recognised net of cash discount over time for transmission of electricity.
The Group as per the prevalent tariff regulations is required to recover its Annual Revenue Requirement
('ARR') comprising of expenditure on account of operations and maintenance expenses, financing costs,
taxes and assured return on regulator approved equity with additional incentive for operational efficiencies.
Input method is used to 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.
Sale of Power - Distribution
Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the pre
determined rate.
Trading of power
In the arrangement 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.
396
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
28. Revenue from Operations (Contd.)
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.
(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
Add/(Less): Power Purchase Cost (where Group acts as an agent)
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
29,264.40
(418.49)
71.54
(8.53)
44.80
(1,884.00)
27,069.72
28,264.95
(69.40)
(665.32)
5.49
31.41
(2,182.90)
25,384.23
(b) Revenue from Power Supply - Assets Under Finance Lease
942.03
1,051.27
(c) Project/Operation Management Services
140.57
119.19
(d) Revenue from Sale of:
Solar Products
Electronic Products
3,274.86
41.28
3,316.14
1,418.28
44.37
1,462.65
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28. Revenue from Operations (Contd.)
(e) Income from Finance Lease
(f) Finance Income from Service Concession Agreement
(g) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipments, 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
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
91.23
36.61
11.98
86.84
361.11
Nil
2.58
149.60
16.31
187.93
13.97
Nil
0.59
1.01
1.43
2.51
35.94
871.80
91.56
38.70
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
Total
32,468.10
29,136.37
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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
32,020.25
28,836.15
(81.11)
418.49
(67.40)
69.40
32,357.63
28,838.15
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, 2021, other than those
meeting the exclusion criteria mentioned above is ₹ 1,11,308.19 crore (31st March, 2020 - ₹ 1,27,165.72 crore). Out of this, the
group expects to recognise revenue of around 6.01% (31st March, 2020 - 5.66%) within the next one year and the remaining
thereafter.
398
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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2
400
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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, 2021
For the year ended
31st March, 2020
₹ crore
₹ crore
33,079.14
(611.04)
32,468.10
28,947.68
188.69
29,136.37
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
1,161.06
Nil
21.74
1,182.80
809.69
43.51
0.08
432.01
Nil
240.09
1,525.38
960.84
Nil
30.07
990.91
683.43
41.62
0.11
501.21
Nil
195.96
1,422.33
605.89
5,438.62
34.83
4,859.41
75.65
232.17
104.47
1,573.64
(1.18)
(437.65)
7,359.44
10,067.62
95.33
799.42
(4.55)
(433.51)
5,583.10
7,996.34
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.
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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, 2021
As at
31st March, 2020
₹ crore
₹ crore
960.84
(195.96)
764.88
71.54
(8.53)
57.58
44.80
Nil
430.09
(423.26)
(16.13)
156.09
1,161.06
(240.09)
920.97
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
(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
402
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
30.07
501.32
725.05
1,256.44
(450.89)
487.33
81.11
(66.96)
50.59
21.74
432.09
853.20
1,307.03
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
(A)
(B)
(A+B)
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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 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 Disposals of Property, Plant and Equipments (Net)
Delayed Payment Charges
Other Income
Management Fees
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
63.14
49.97
13.25
0.84
0.64
18.93
146.77
7.13
153.90
6.78
6.78
39.14
Nil
39.14
Nil
8.26
5.97
66.27
16.21
142.71
239.42
18.11
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
Total
439.24
562.61
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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)]
Compensated Absences
Pension
Staff Welfare Expenses
Less:
Employee Cost Capitalised
Employee Cost Inventorised
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
₹ crore
197.80
2,747.18
2,944.98
316.79
2,628.19
156.89
998.09
1,154.98
197.80
957.18
3.99
6.42
(2.43)
96.99
94.15
2.84
0.41
2.93
3.99
(1.06)
82.41
96.99
(14.58)
(15.64)
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
₹ crore
1,723.01
239.60
9.25
48.61
44.42
34.05
165.55
2,264.49
97.57
10.44
108.01
1,214.92
89.03
10.75
26.17
35.80
13.35
151.03
1,541.05
90.42
9.99
100.41
Total
2,156.48
1,440.64
404
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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
Interest on Lease Liability - At Amortised cost
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, 2021
For the year ended
31st March, 2020
₹ crore
₹ crore
1,249.49
2,066.03
29.64
99.98
92.39
315.90
3,853.43
63.78
3,789.65
Nil
217.26
28.34
24.86
220.74
1,076.67
2,786.76
52.42
81.84
57.08
308.73
4,363.50
42.50
4,321.00
1.54
181.57
(0.88)
9.50
172.73
4,010.39
4,493.73
The weighted average capitalisation rate on the Group's general borrowings is in the range of 7.13 % to 8.01% per annum (31st March,
2020 - 7.74% to 8.63% per annum).
33. Other Expenses
Consumption of Stores, Oil, etc.
Rental of Land, Buildings, Plant and Equipments, etc.
Repairs and Maintenance -
(i) To Buildings and Civil Works
(ii) To Machinery and Hydraulic Works
(iii) To Furniture, Vehicles, etc.
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
167.79
56.99
109.63
822.13
73.90
1,005.66
₹ crore
150.04
25.57
115.55
653.28
69.54
838.37
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33. Other Expenses (Contd.)
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)
Net Loss on Foreign Exchange
(Profit)/Loss on Sale of Non-current Investments in Joint Ventures accounted using Equity
method
Legal Charges
Corporate Social Responsibility Expenses
Transfer to Contingency Reserve
Marketing Expenses
Miscellaneous Expenses
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
₹ crore
86.14
115.42
488.79
51.21
26.50
46.84
42.05
0.29
12.87
360.39
8.75
72.14
7.50
65.97
Nil
51.41
39.11
11.00
3.07
92.59
2,812.48
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
116.21
0.77
52.92
34.32
17.00
3.11
44.61
2,342.78
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 related to items recognised outside statement of profit and loss are recognised 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.
(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, 2021
₹ crore
31st March, 2020
₹ crore
647.57
(145.69)
Nil
Nil
501.88
494.30
330.95
(24.51)
(159.25)
641.49
406
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
34.
Income Taxes (Contd.)
(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, 2021
₹ crore
31st March, 2020
₹ crore
(101.48)
(72.17)
(173.65)
Nil
(32.41)
(32.41)
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
Utilization of unrecognized capital loss on sale of asset
Deferred tax not recognised on Impairment provision/(reversal) of non current investment
Effect of tax holiday period
MAT credit and deferred tax asset on losses pertaining to earlier years
Tax on dividend from subsidiaries, associate and joint ventures (eliminated)
Exempt Income
Unrecognized tax credit (MAT) for the current year
Profit taxable at different tax rates including for certain subsidiaries and measurement of
deferred tax @ 25.17% for deferred tax expected to be reversed in new tax regime
Non deductible expenses
Reassessment of deferred tax balances on expected sale of asset (Refer Note 3 below)
Tax in respect of earlier years
Others
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, 2021
₹ crore
31st March, 2020
₹ crore
1,986.73
(219.85)
1,766.88
617.42
(305.19)
(11.41)
Nil
(82.98)
(218.87)
348.80
(18.27)
180.89
(120.67)
76.45
(131.00)
Nil
(6.94)
328.23
501.88
(173.65)
328.23
2,368.16
(442.64)
1,925.52
672.85
(332.86)
Nil
45.36
24.36
(92.82)
143.31
(30.67)
351.68
(242.36)
94.74
Nil
(24.51)
Nil
609.08
641.49
(32.41)
609.08
Note:
1 The tax rate used for the years 2020-21 and 2019-20 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 financials statements of Parent Company and its
respective subsidiaries, being statutory enacted rates at Balance Sheet date.
3 During the year ended 31st March, 2021, the Holding Company has entered into a Business Transfer Agreement with Tata Power Renewable
Energy Ltd. and Tata Power Green Energy Ltd, wholly owned subsidiaries, for transfer of renewable assets (forming part of renewable segment)
as a “going concern” on a slump sale basis effective on or after 1st April, 2021. Consequently, as per the requirement of Ind AS 12, the Holding
Company has reassessed its deferred tax balances including its unrecognized deferred tax assets on capital losses and has recognized gain of
₹131.00 crore in the standalone financial statements.
407
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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, 2021
₹ crore
31st March, 2020
₹ crore
Nil
1.04
1.04
Nil
Nil
4.68
(93.57)
(88.89)
Nil
(13.22)
(13.22)
Nil
Nil
(13.73)
32.43
18.70
Total income tax recognised in Other Comprehensive Income
(87.85)
5.48
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
5.72
(93.57)
(87.85)
(26.95)
32.43
5.48
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
2,992.01
169.04
25.11
1,995.12
218.46
45.32
(i) Vendor purchase commitments and contracts to provide future post sale services.
425.01
1,273.20
(ii) During the year, the Group has entered into a long term freight Contract with Oldendorff for the supply of coal through ships for
a period of 12 years. The remaining commitment against the said contract is 55.098 million MT and total estimated freight cost at
current price would be ₹ 3,400 crore over the remaining period of 11 years.
(iii) As per the terms of the vesting orders for the acquisition of TPCODL, TPWODL, TPSODL (subsidiaries of the Group), the Group has
committed capital expenditure of ₹ 4,370 to be incurred by the respective subsidiaries over the next 5 years. Further, subsequent
to the year end, the Group has acquired controlling stake in North Eastern Electricity Supply Company of Odisha Ltd. (NESCO) via
special purpose vehicle "TP Northern Odisha Distribution Ltd.". As per the terms of the vesting order for NESCO, the Group has
committed capital expenditure of ₹ 1,270 to be incurred by TP Northern Odisha Distribution Ltd.
408
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements 36. Contingent Liabilities
a) Contingent liabilities
Claims against the Group not probable and hence not acknowledged as debts
consists of
(i)
Interest and penalty pertaining to Customs Duty claims disputed by the Group
relating to applicability and classification of coal.
(ii)
Demand disputed by the Group relating to Service tax.
(iii) Way Leave fees (including interest) claims disputed by the Group relating to
rates charged.
(iv)
(v)
(vi)
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.
(vii) Disputes relating to power purchase agreements.
(viii)
Legal cases with employees and others of newly acquired subsidiary engaged in
distribution business of Central Odisha (Refer Note d below).
(ix)
(x)
(xi)
Legal cases related to subsidiaries acquired during the year (In case of
unfavourable outcome, amount paid will be recoverable from customers).
Access Charges demand for laying underground cables.
Other Claims.
Claims against the Group's share of Joint Ventures and Group's share of
Associates not acknowledged as debts consists of
Group's share of Joint Ventures
(i) Demand for royalty payment is set-off against recoverable Value Added Tax (VAT)
paid on inputs for coal production.
(ii) Other Claims.
Group's share of Associates
Other Claims.
As at
31st March, 2021
As at
31st March, 2020
₹ crore
₹ crore
110.81
484.44
59.35
585.00
Nil
Nil
209.47
955.60
117.73
30.14
176.41
110.81
375.29
43.18
587.05
5.03
22.00
161.33
Nil
Nil
30.14
160.19
21.86
37.45
51.70
37.00
247.34
232.62
3,035.60
1,816.34
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.
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36. Contingent Liabilities (Contd.)
b) Other Contingent Liabilities:
As at
31st March, 2021
₹ crore
As at
31st March, 2020
₹ crore
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 ₹ 9.30 crore (31st March, 2020 - ₹ 9.19 crore)].
188.84
188.73
In an earlier year, Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) had raised
a demand for determination of fixed charges for unscheduled interchange of power. The
Group had filed a petition against the said demand for which stay has been granted by the
ATE till the methodology for the determination is fixed. 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.
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
215.02
110.62
Nil
215.02
114.30
2.50
As at
31st March, 2021
Nos.
As at
31st March, 2020
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) i) Central Electricity Supply Utility of Orissa (CESU) had filed an application to Regional Provident Fund Commissioner,
Bhubaneswar (RPFC) for exemption from applicability of the Employees Provident Funds and Miscellaneous
Provisions Act, 1952 for which adjudication is pending. CESU had formed its own trust and deposited the employer
and employee’s contribution in the said trust @ 10% of the eligible salary. Although the adjudication for exemption
was pending, RPFC vide its assessment order dated 13th October, 2014 raised a total demand of ₹ 551.62 crore
(₹ 279.39 crore dues for non-remittance of Employer and Employee contribution to RPFC and ₹ 272.23 crore as
interest) on CESU for the period from November, 1997 to December, 2011.The order also contended that CESU is
required to make contribution @12% of the eligible salary instead of 10%. The order of RPFC was challenged by
CESU before the Hon'ble High Court. The Hon'ble High Court, on 18th November, 2014, directed that the impugned
assessment orders shall remain stayed subject to deposit of ₹ 30 crore by CESU with the RPFC. The order of the
Hon'ble High Court was complied with by CESU. The said writ petition is still pending adjudication before the
Hon'ble High Court.
Subsequently, after the subsidiary company (TPCODL) taking over power distribution business from the erstwhile
CESU with effect from 01.06.2020, it has continued to deposit Employer and Employee contribution @ 10 % each
for the erstwhile employees in the contributory trust as the matter is sub judice. However, on 3rd March, 2021 RPFC
issued a notice for inspection to the Group on the PF issue for the period from January 2012 till May 2020 and for the
period from 1st June, 2020.
410
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
Based on a legal opinion, the subsidiary company is of the view that it has a strong case against the demand of
₹ 551.62 crore (November 1997 till December 2011) plus any further demand, if raised by RPFC (January 2012 - May
2020) and accordingly, no provision has been recognized in respect of the same. Further, for the period of operations
from 1st June, 2020 pertaining to the subsidiary company, it has been decided that employer’s and employee’s
contributions shall be deposited with RPFC and accordingly, the subsidiary company expects that there shall be no
demand payable from 1st June, 2020.
ii) Central Electricity Supply Utility of Orissa (CESU) had entered into agreement with distribution franchisees namely
Riverside Utilities Private Ltd. (‘RUPL’) and Seaside Utilities Private Ltd. (‘SUPL’) on 30th January, 2013. As per the terms
of agreement, franchisees were responsible for carrying out all commercial activities including certain performance
parameters such reduction of AT&C losses, smart metering, minimum capital expenditure, timely collection etc.
However, due to poor performance of RUPL/SUPL and non-compliance of the terms of agreement, erstwhile CESU
did not extend the franchisee period. Writ petition was filed by the franchisees before the Hon’ble Orissa High Court
for renewal of existing franchise agreements along with total claim of ₹ 403.98 crore (₹ 301.75 crore by RUPL and
₹ 102.23 crore by SUPL). CESU had filed a counter claim of ₹ 598.89 crore (₹ 396.87 crore against RUPL and ₹ 202.02 crore
against SUPL). The Hon’ble Orissa High Court vide its order dated 27th March, 2019 ordered termination of franchise
agreement and ordered CESU and the franchisees to reconcile the dues. On failure of reconciliation process, the
High Court vide its order dated 19th February, 2021 ordered CESU and franchisee to settle the claims by way of
arbitration proceedings for which Arbitration Tribunal shall be constituted. The matter is currently pending before
Arbitration Tribunal for adjudication.
Based on merits of the matter, the subsidiary Company is of the view that it has a strong case and accordingly, no
provision has been recognized in respect of the same.
e) During the year, the Group has acquired 51 % stake in TP Central Odisha Distribution Ltd. ('TPCODL'), TP Western
Odisha Distribution Ltd. ('TPWODL') and TP Southern Odisha Distribution Ltd. ('TPSODL') to carry out the function of
distribution and retail supply of electricity covering the distribution circles of central, western and southern parts of
Odisha. Pursuant to these acquisition and as per the terms of the vesting order, the Group has issued bank guarantee
to Odisha Electricity Regulatory Commission (‘OERC’) of ₹ 150.00 crore, ₹ 150.00 crore, ₹ 100.00 crore respectively.
f) OERC had issued a request for proposal (RFP) for sale of controlling interest in distribution business of North
Electricity Supply Utility of Orissa. The Group had bid for it and has been identified as the successful bidder and
accordingly the Group issued bank guarantee to OERC of ₹ 150.00 crore.
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.
37. Other Disputes and Settlements
a) With respect to Mundra Thermal Power Plant, 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. The Supreme Court has granted an Interim
Stay in the matter. On 22nd April, 2021, MOEF has issued a draft notification which allows legacy fly ash to be disposed /
utilized in a phased manner over a period of 10 years. Once the draft notification comes into effect, it would supersede
all existing notifications and prior orders. The Group has been making concerted efforts for achieving 100% utilisation
of fly ash generated. The Group has, on a prudent basis, recognized a provision of ₹ 21.74 crore (As at 31st March, 2020 -
₹ 4.74 crore) in its financial statements for disposal of past accumulated fly ash 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
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37. Other Disputes and Settlements (Contd.)
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 Respondent
('State of Bihar') has filed the counter affidavit on February 2019 and now the matter is pending for argument.
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, 2021.
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
Delhi Vidyut Board (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 Government of National Capital Territory of Delhi (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) i) 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 Ltd., ultimate holding company of the group, is also a Member
of NSEFI and thereby party to petition filed by NSEFI. The TNERC has now issued Order dated 22nd December 2020 on
the petition filed by the NSEFI and decided the matter in favour of TANGEDCO. The Group has challenged the ruling
of TNERC at the Appellate Tribunal for Electricity (ATE) through NSEFI. Based on legal assessment, the management of
the Group is of the view that the claim of the Group for payment toward units supplied in excess of 19% CUF is entirely
tenable and it is confident of getting a favourable order.
Accordingly, the Group has a trade receivable balance of ₹ 90.85 crore (31st March, 2020 - ₹ 87.92 crore) for such excess
units as on 31st March, 2021. The Group has also recognised a revenue of ₹ 2.93 crore (31st March, 2020 - ₹33.20 crore)
for such excess units as on 31st March 2021. Considering signed PPA and its independent legal evaluation, the Group
believes that these amounts are fully recoverable along with interest and no provision has been recognized in the
consolidated financial statements.
ii) Trade Receivables include ₹ 363.57 crore ( 31st March, 2020 - ₹ 567.09 crore ) receivable from TANGEDCO including
₹ 80.17 crore ( 31st March, 2020 - ₹299.79 crore ) relating to bill discounting with recourse and ₹ 90.85 crore (31st March,
2020 ₹ 87.92 crore) pertaining to CUF adjustment as mentioned above. The Group is of the view that these receivables
are fully recoverable with late payment surcharge.
e) The Group entered into long-term Power Purchase Agreements (“PPAs”) of 200 MW wind and solar plant with the
Southern Power Distribution Company of Andhra Pradesh Ltd. (""APSPDCL"" or “APDISCOM”) to supply power that is
valid for a period of 25 years. 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.
412
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
37. Other Disputes and Settlements (Contd.)
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. Thereafter, the Group had filed an appeal in AP High Court in front of two
members bench challenging the matter being referred to the APERC. Further, the APERC has deferred the hearing in
view of the case being filed in the AP High Court, till the AP High Court passes an order in the matter.
The Group has now filed an application for implement in Hon'ble Supreme Court (SC) in the SLP of APSPDCL and transfer
petition before the SC from the AP High Court inter alia on the ground of delays in hearing of the matter by the AP High
Court and the financial hardship that has resulted due to delay in payment by APDISCOM.
During the year ended 31st March 2021, the Group has received an amount of ₹ 38.34 crore ( 31st March, 2020 -
₹ 112.69 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 ₹ 1,142.37 crore (31st March, 2020 - ₹ 1,222.25 crore) and has recognised a revenue of
₹ 174.3 crore (31st March, 2020 - ₹ 174.07 crore) for the year ended 31st March, 2021 and has a trade receivable balance
of ₹ 341.16 crore (31st March, 2020 - ₹ 206.17 crore) as on 31st March, 2021 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 financial
statements.
f)
In the previous year, the Group has recognised an expense of ₹ 276.35 crore net of amount recoverable from customers
including adjustment with consumer reserve in relation to Hon'ble Supreme Court's judgement on standby litigation.
Further in the previous year, Maharashtra Electricity Regulatory Commission (MERC) vide its order dated 30th March,
2020 had allowed the recovery of part of the standby charges amount from the consumers. During the year ended
31st March, 2021, MERC vide its order dated 21st December, 2020, has revised its earlier order and disallowed the recovery
of the said amount. Consequently, the Group has recognized an expense of ₹ 109.00 crore (including carrying cost) and
disclosed as an exceptional item.
g) 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.
h) 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 Delhi Vidyut Board (DVB) Employees Terminal Benefit Fund, 2002 (‘the Trust’)
with respect to pay-out 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 pay-out 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
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37. Other Disputes and Settlements (Contd.)
₹ 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
₹ 85.47 crore as at 31st March, 2021 (as at 31st March, 2020 ₹ 84.88 crore), leaving a balance recoverable ₹ 0.29 crore as at
31st March, 2021 (as at 31st March, 2020 ₹ 0.88 crore) from the SVRS Trust which includes current portion of ₹ 0.03 crore
(as at 31st March, 2020 ₹ 0.33 crore).
i) In the earlier years, Maharashtra Electricity Regulatory Commission has disallowed certain costs amounting to ₹ 419.00
crore (adjusted upto the current year) (31st March, 2020 - ₹ 359.85 crore) recoverable from consumers in the tariff true up
order. The Group has filed appealed against the said order to Appellate Tribunal for Electricity which is pending for final
disposal.
j) In an earlier year, Maharashtra Electricity Regulatory Commission has disallowed carrying cost and other costs amounting
to ₹ 269.00 crore (31st March, 2020 - ₹ 269.00 crore) which was upheld by the Appellate Tribunal for Electricity (ATE). The
Group has filed Special Leave Petition (SLP) against the order of ATE with the Supreme Court which is pending for final
disposal.
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
For the year ended
31st March, 2021
₹ crore#
For the year ended
31st March, 2020
₹ 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 (Net of tax) - Owners Share
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime
(Net) (Refer Note 12)
Total 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 ₹)
1,127.38
1,017.38
46.20
1,173.58
298.24
Nil
298.24
875.34
(171.00)
410.23
1,427.61
(88.50)
(98.00)
(186.50)
1,614.11
(171.00)
A
B
C
D=(B+C)
E=(A-D)
F
G=(E+F)
704.34
1,443.11
3,01,80,73,391
2,70,76,05,570
2.33
5.33
414
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
38. Earnings Per Share (EPS) (Contd.)
Particulars
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 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 ₹)
For the year ended
31st March, 2021
₹ crore#
For the year ended
31st March, 2020
₹ crore#
1,173.58
(171.00)
1,427.61
(171.00)
1,002.58
1,256.61
3,01,80,73,391
2,70,76,05,570
3.32
4.64
(46.20)
(410.23)
3,01,80,73,391
2,70,76,05,570
(0.15)
(1.52)
1,127.38
(171.00)
1,017.38
(171.00)
956.38
846.38
3,01,80,73,391
2,70,76,05,570
3.17
3.12
# All numbers are in ₹ crore except weighted average number of equity shares and Basic and Diluted EPS
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)
Employment Benefit Funds
1)
2)
3)
Tata Power Superannuation Fund
Tata Power Gratuity Fund
Tata Power Consolidated Provident Fund
4) M/s Maithon Power Gratuity Fund (Fund)
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39. Related Party Disclosures: (Contd.)
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)
7) CESCO Employees Pension Trust
8) CESCO Employees Gratuity Trust
9) CESCO Employees Provident Fund Trust
10) WESCO Employees Pension Trust
11) WESCO Employees Gratuity Trust
12) WESCO Employees Provident Fund Trust
13) SOUTHCO Employees Pension Trust
14) SOUTHCO Employees Gratuity Trust
15) SOUTHCO Employees Provident Fund Trust
(b)
Associates and Joint Venture Companies (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.
7)
9)
TP Luminaire Pvt Ltd. **
Tata Projects Provident Fund Trust*
* Fund of Associate
** 100% Subsidiary of Associates
(ii) Joint Venture Companies
1)
3)
Tubed Coal Mines Ltd.
Industrial Energy Ltd.
5) Dugar Hydro Power Ltd.
7)
9)
PT Mitratama Perkasa
IndoCoal Resources (Cayman) Ltd.
11) PT Nusa Tambang Pratama
13) PT Dwikarya Prima Abadi
15) PT Baramulti Sukessarana Tbk
17) Koromkheti Netherlands B.V.
2)
4)
Yashmun Engineers Ltd.
The Associated Building Co. Ltd.
6) Nelito Systems Ltd (ceased to be an Associate w.e.f.
6th June, 2019)
Ind Project Engineering (Shanghai) Co Ltd **
8)
2) Mandakini Coal Company Ltd.
4)
6)
8)
Powerlinks Transmission Ltd.
Itezhi Tezhi Power Corporation Ltd.
PT Kaltim Prima Coal
10) PT Indocoal Kaltim Resources
12) PT Marvel Capital Indonesia
14) PT Kalimantan Prima Power
16) Adjaristsqali Netherlands B.V.
18)
IndoCoal KPC Resources (Cayman) Ltd.
19) Resurgent Power Ventures Pte Ltd.
20) Renascent Ventures Pvt. Ltd.
21) Prayagraj Power Generation Co Ltd.
(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
22) PT Arutmin Indonesia
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)
416
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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) :
C-Edge Technologies Ltd.
Ewart Investments Ltd.
Tata International DLT Pvt Ltd
Tata AIG General Insurance Company Ltd.
Infiniti Retail Ltd.
1)
3)
5)
7)
9)
11) Tata International Singapore Pte. Ltd.
13) Niskalp Infrastructure Services Ltd.
(Formerly Niskalp Energy Ltd.)
Tata Advanced Material Ltd
TRIL Infopark Ltd.
Tata SIA Airlines Ltd.
Tata Autocomp Systems Ltd.
2)
4)
6)
8)
10) Tata Consultancy Services Ltd.
12) Tata Consulting Engineers Ltd.
14) Tata Housing Development Company Ltd.
15) Tata Advanced System Ltd.
16) Tata Industries Ltd. (ceased to be Subsidiary and became
a Joint Venture w.e.f. 27th March, 2019)
17) Tata Unistore Ltd. (Formerly Tata Industrial Services Ltd.)
18) Tata International Ltd.
(ceased to be Subsidiary w.e.f. 27th March,2019)
19) Ecofirst Services Ltd.
21) Tata AIA Life Insurance Company Ltd.
23) Tata Ltd.
25) Tata Communications Ltd.
27) Tata Housing Development Co. Ltd..
Employees Provident Fund
20) Tata Investment Corporation Ltd.
22) Tata Realty and Infrastructure Ltd.
24) Tata Teleservices (Maharashtra) Ltd.
26) Tata Teleservices Ltd.
28) Tata Capital Financial Services Ltd.
29) Tata Consultancy Services Employees Provident Fund
31) Tata Elxsi Ltd.
33) Tata Sky Broadband Pvt. Ltd. (Formerly Quickest
30) Tata Communications Payment Solutions Ltd.
32) Tata Sky Ltd.
34) Tata Communications Collaboration Services Pvt. Ltd.
Broadband Pvt. Ltd.)
(d)
Key Management Personnel
1) N. Chandrasekaran
Banmali Agarwala
3)
5)
2)
4)
Praveer Sinha CEO and Managing Director
Saurabh Agrawal
Kesava Menon Chandrasekhar
6) Ashok Sinha (w.e.f. 2nd May, 2019)
Sanjay V. Bhandarkar
7) Vibha U. Padalkar
9)
11) Ramesh N. Subramanyam - Chief Financial Officer
13) Deepak M. Satwalekar (ceased to be Director w.e.f.
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 & Executive Director
w.e.f. 30th April, 2019)
(e)
Relative of Key Managerial Personnel (where transactions have taken place during the year and previous year /
balances outstanding) : Neville Minoo Mistry (Brother of Hanoz Minoo Mistry)
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Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
39. Related Party Disclosures: (Contd.)
f)
Details of Transactions ₹ crore
Particulars
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds
Promoter
Group
Promoters
Sr.
No.
1
2
3
4
5
6
7
8
9
Purchase of goods/power (Net of Discount Received
on Prompt Payment)
Sale of goods/power (Net of Discount on Prompt
Payment)
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 (including distribution on unsecured
perpetual securities)
14
Dividend income
15
Dividend paid
16
Loans given
17
Impairment of Investments- Reversal
18
Impairment of Investments
19
Loans repaid (including loan converted into equity)
20
Loans provided for as doubtful advances (including
interest)
418
187.32
2,776.60
155.19
2,954.11
2.78
17.55
0.70
12.84
-
0.05
7.59
7.25
23.50
22.22
-
-
-
-
0.01
-
228.67
175.69
0.06
0.83
-
-
-
-
-
-
-
-
-
-
-
-
0.08
0.08
-
-
-
-
-
-
-
-
-
-
0.64
0.63
26.18
52.29
-
1,839.30
9.68
1,861.27
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.60
14.57
8.00
-
118.74
-
2.60
14.43
-
0.14
-
-
-
-
-
-
-
-
-
-
0.18
-
-
-
-
-
12.93 *
10.92 *
-
2.80
0.13
0.68
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
318.61 #
39.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
302.70
8.36
25.50
54.18
22.47
0.22
0.68
-
35.44
45.81
85.78
92.37
-
0.07
-
-
-
-
-
-
-
-
0.00 $
0.01
26.44
35.15
1.43
1.94
2.11
1.77
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.22
2.44
1.32
12.55
5.96
20.42
1.76
-
-
-
-
-
-
-
-
-
-
-
-
6.67
6.67
147.86
109.17
-
-
-
-
-
-
-
-
-
-
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements 39. Related Party Disclosures: (Contd.)
Sr.
No.
Particulars
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds
Promoter
Group
Promoters
21
Deposits taken
22
Advance given
23
Advance adjusted
24
Purchase of Investments
25
Loan taken
26
Loan taken repaid
27
Allotment of Equity shares (including securities
premium paid)
28
Provision for doubtful receivables
29
Bad debts
30
Consideration received on sale of SED (Refer Note 17c)
Balances outstanding
Unsecured Perpetual Securities
Redeemable Non-Convertible Debentures
Other receivables
Loans given (including interest thereon)
Loans provided for as doubtful advances (including
interest thereon)
Deposits taken outstanding
Advance given outstanding
Other payables
Loans taken (including interest thereon)
1
2
3
4
5
6
7
8
9
-
-
110.85
11.11
2.51
-
-
-
-
-
-
-
-
-
-
-
1.16
-
-
-
-
-
-
109.28
7.65
-
1.27
-
-
-
-
-
-
63.34
-
120.00
-
120.00
-
-
-
0.64
-
-
-
-
0.70
0.70
-
-
74.83 @
96.44 @
72.98 @
75.62 @
-
54.39
1.27
-
-
19.64
8.76
10.82
10.89
-
-
54.39
10.96
12.80
-
-
2,472.76
2,071.63
763.28
2,203.86
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7.34
8.05
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89.81
36.32
-
0.01
-
-
-
-
-
-
56.91
43.63
-
-
0.01
0.19
-
-
-
-
16.91
-
-
-
-
-
-
-
-
-
-
-
597.00 **
197.50
197.50
36.50
36.50
386.63
17.15
-
-
-
-
0.22
0.21
-
-
26.46
17.80
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,600.00
-
-
-
-
-
-
-
-
-
-
14.32
7.66
-
-
-
-
2.00
2.00
-
-
19.44
0.87
-
-
419
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 39. Related Party Disclosures: (Contd.)
Notes:
1. All outstanding balances are unsecured.
2. The Group's principal related parties consist of Tata Sons Pvt. 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.
Including amount collected from customers for past liability [Refer Note 25(5)].
@ Includes amount reclassified as held for sale.
#
$ Denotes below ₹ 50,000.
* 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.
** Net off borrowings of ₹ 537 crore transferred to TASL.
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
Receivable on sale of Strategic Engineering Division (Refer Note 17c)
Carrying value
Fair Value
As at
31st March, 2021
As at
31st March, 2020
As at
31st March, 2021
As at
31st March, 2020
₹ crore
3,782.51
2,330.17
5,605.68
1,573.64
88.85
640.06
501.14
559.41
198.43
1.48
365.99
1,861.50
232.68
4,456.18
799.42
113.88
622.12
702.53
461.79
167.87
301.64
Nil
3,782.51
2,330.17
5,605.68
1,573.64
88.85
640.06
501.14
559.41
171.35
1.48
365.99
1,861.50
232.68
4,456.18
799.42
113.88
622.12
702.53
461.79
176.79
301.64
Nil
Other Financial Assets
1,489.16
1,689.58
1,489.16
1,689.58
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
Nil
178.68
22.83
667.35
22.81
22.83
Nil
178.68
22.83
667.35
22.81
22.83
17,338.03
12,122.18
17,310.95
12,131.10
7,137.44
19,804.57
23,632.08
3,537.31
192.51
8,540.27
5,095.44
18,891.49
29,484.45
3,560.22
64.03
4,323.96
7,137.44
20,106.39
23,632.08
3,537.31
192.51
8,540.27
5,095.44
20,116.49
29,492.81
3,560.22
64.03
4,323.96
62,844.18
61,419.59
63,146.00
62,652.95
420
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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, 2021, 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
Gain/(Loss)
- in other comprehensive income
- in profit or loss
- changes on purchase of equity shares
Closing balance
Unlisted shares
irrevocably designated as at
FVTOCI
₹ crore
Unlisted shares
carried at FVTPL
Year ended
31st March,
2021
Year ended
31st March,
2020
Year ended
31st March,
2021
Year ended
31st March,
2020
397.71
397.71
0.16
0.16
20.83
Nil
19.80
Nil
Nil
Nil
438.84
397.71
Nil
Nil
Nil
0.16
Nil
Nil
Nil
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, 2021 and 31st March, 2020 are as shown below:
421
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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, 2020: 5%) increase (decrease) in the
transaction price would result in increase (decrease) in
fair value by ₹ 6.41 crore (31st March, 2020: ₹ 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 and contingent consideration receivable.
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, 2021
Quoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
₹ crore
₹ crore
₹ crore
₹ crore
31st March, 2021
500.98
Nil
0.16
501.14
120.57
Nil
Nil
178.68
Nil
171.35
971.58
Nil
Nil
1.48
Nil
Nil
Nil
1.48
Nil
438.84
Nil
Nil
365.99
120.57
438.84
1.48
178.68
365.99
Nil
171.35
804.99
1,778.05
Nil
Nil
Nil
192.51
20,106.39
23,632.07
31st March, 2021
Nil
192.51
31st March, 2021
13,239.48
6,866.91
31st March, 2021
2,302.09
21,329.98
15,541.57
28,389.40
Nil
43,930.97
Asset measured at fair value
FVTPL Financial Investments
FVTOCI Financial Investments:
- Quoted equity shares
- Unquoted equity shares
31st March, 2021
31st March, 2021
Derivative instruments not in hedging relationship
31st March, 2021
Assets Classified as Held For Sale
Receivable on sale of Strategic Engineering Division
Asset for which fair values are disclosed
Investment in Government Securities
31st March, 2021
31st March, 2021
31st March, 2021
Liabilities measured at fair value
Derivative Financial Liabilities
Liabilities for which fair values are disclosed
Fixed rate Borrowings
Floating rate Borrowings
Total
422
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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, 2020
Quoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
₹ crore
₹ crore
₹ crore
₹ crore
31st March, 2020
702.37
31st March, 2020
31st March, 2020
64.08
Nil
Nil
31st March, 2020
22.81
31st March, 2020
176.79
966.05
Nil
Nil
Nil
301.64
Nil
Nil
0.16
702.53
Nil
397.71
Nil
Nil
Nil
64.08
397.71
301.64
22.81
176.79
301.64
397.87
1,665.56
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
Derivative instruments not in hedging relationship
31st March, 2020
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 (%)
As at
31st March, 2021
₹ crore
₹ crore
As at
31st March, 2020
₹ crore
44,010.22
6,093.61
37,916.61
22,322.26
60,238.87
62.94
49,214.78
2,075.73
47,139.05
19,566.02
66,705.07
70.67
423
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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,
2021 and 31st March, 2020.
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, 2021 and 31st March, 2020.
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, 2021. 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.
424
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
When a derivative is entered into for the purpose of being a hedge, the Group negotiates the terms of those derivatives to
match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure
from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or
payable that is denominated in the foreign currency.
The following table 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 ZAR
In VND
In TAKA
* Denotes figures below 50,000/-
As at 31st March, 2021
As at 31st March, 2020
Foreign
Currency
(In Millions)
₹ crore
Foreign
Currency
(In Millions)
₹ crore
200.90
1,468.86
207.01
1,563.81
0.09
Nil
5.90
Nil
0.75
Nil
0.39
Nil
2.55
0.06
328.72
790.21
21.09
0.59
22.86
0.25
As at 31st March, 2021
As at 31st March, 2020
Foreign
Currency
(In Millions)
3.09
0.41
56.76
0.20
₹ crore
22.62
0.20
0.02
0.02
Foreign
Currency
(In Millions)
4.58
0.03
35.88
0.21
₹ crore
34.59
0.01
0.01
0.02
(i)
Foreign currency sensitivity analysis
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other
variables held constant. The impact on the Group’s profit before tax and impact on equity is due to changes in the fair value
of monetary assets and liabilities including non-designated foreign currency forward and option contracts given as under.
Effect on Equity (before tax)
Effect on Profit (before tax)
₹ crore
As of 31st March, 2021
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
As of 31st March, 2020
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
(+) ₹ 38.52
(-) ₹ 38.52
(+) ₹ 2.82
(-) ₹ 2.82
(-) ₹ 39.61
(+) ₹ 39.61
(-) ₹ 43.02
(-) ₹ 43.02
Notes:
1) +/- Gain/Loss
2) The impact of depreciation/ appreciation on foreign currency other than USD 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 marketplace.
425
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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
Other Derivatives
Forward contracts
In USD
In ZAR
In YEN
Option contracts
In USD
Buy/ Sell
Foreign Currency
(In Millions)
As at 31st March, 2021
Nominal Value in
₹ crore
Fair Value
in ₹ crore
Buy
1,317.20
9,631.22
(181.45)
Foreign Currency
(In Millions)
As at 31st March, 2020
Nominal Value in
₹ crore
Buy/ Sell
Fair Value
in ₹ crore
Buy
Sell
Buy
Buy
596.95
1,300.00
2.94
4,509.49
548.96
0.20
174.18
52.49
*
286.57
2,164.82
74.15
Note: Fair Value in brackets denotes liability.
* Denotes figures below 50,000/-
b.
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s
long-term debt obligations with floating interest rates.
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The
Group’s policy is to keep upto 50% of its borrowings at fixed rates of interest. To manage this, the Group enters into fixed
rate loan, Bonds and interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed
and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.
(i)
Interest rate sensitivity
The sensitivity analysis below have been determined based on exposure to interest rates for term loans and debentures
at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held
constant throughout the reporting period in case of term loans and debentures that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on
Interest expense for the respective financial years and consequent effect on Group's profit in that financial year would have
been as below:
Interest expense on loan
Effect on Equity/Profit before tax
As of 31st March, 2021
As of 31st March, 2020
50 bps increase
50 bps decrease
50 bps increase
50 bps decrease
(+) ₹ 117.15
(-) ₹ 117.15
(+) ₹ 147.46
(-) ₹ 147.46
(-) ₹ 117.15
(+) ₹ 117.15
(-) ₹ 147.46
(+) ₹ 147.46
₹ crore
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.
(ii)
426
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
The following table gives details in respect of outstanding receive floating pay fixed contracts:
31st March 2021
Nominal amounts
Fair value assets (liabilities)
31st March 2020
Nominal amounts
Fair value assets (liabilities)
40.4.2 Credit risk management
Less than 1 year
1 to 5 years
100.00
9.25
1,473.08
(14.38)
Nil
Nil
923.16
(36.05)
₹ crore
5 years +
Nil
Nil
128.18
(13.16)
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
At as
31st March, 2021
At as
31st March, 2020
₹ crore
5,605.68
88.85
640.06
1,887.19
201.51
1,573.64
9,996.93
4,456.18
113.88
622.12
1,991.22
712.99
799.42
8,695.81
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.
Having regards to the nature of the business wherein the Group is able to generate fixed cash flows over a period of time
and to optimize the cost of funding, the Group, from time to time, funds its long -term investment from short-term sources.
The short-term borrowings can be rollforward or, if required, can be refinanced from long term borrowings. Hence, the
Group considers the liquidity risk as low.
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, 2021
Non-Derivatives
Borrowings #
Trade Payables
Lease Liabilities
Other Financial Liabilities
Total Non-Derivative Liabilities
Derivatives
Other Financial Liabilities
Total Derivative Liabilities
15,656.17
26,668.34
19,143.30
61,467.81
7,120.08
413.01
6,574.97
Nil
1,528.20
695.29
Nil
7,655.21
695.70
7,120.08
9,596.42
7,965.96
44,013.00
7,137.44
3,537.31
7,965.96
29,764.23
28,891.83
27,494.21
86,150.27
62,653.71
192.51
192.51
Nil
Nil
Nil
Nil
192.51
192.51
192.51
192.51
427
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
40. Financial Instruments (Contd.)
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
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
# 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
Information reported to the Chief Operating Decison Maker (CODM) for the purpose of resource allocation and assessment
of segment performance focuses on business segment which comprises of Generation, Renewables, Transmission &
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. It also comprises of coal - mining,
trading, shipping and related infra business.
Renewables: Comprises of generation of power from renewable energy sources i.e. wind and solar. It also comprises EPC
and maintenance services with respect to solar.
Transmission and Distribution: Comprises of transmission and distribution network, sale of power to retail customers
through distribution network and related ancillary services. It also comprises of power trading business
Others: Comprises of project management contracts/infrastructure management services, property development, lease
rent of oil tanks, satellite communication and investment business
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 revenue/expenses which are not attributable or allocable to segments have been
disclosed as unallocable. 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.
428
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
41. Segment Reporting (Contd.)
(a)
Segment Information:
Particulars
Segment Revenue
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 37f )
Add/(Less): Exceptional Item - Transmission and Distribution (Refer Note 12)
Add/(Less): Exceptional Item - Unallocable Income/(Expense) (Refer Note 6b (ii))
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 #
Profit/(Loss) Before Tax from Discontinued Operations
Segment Assets
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Assets classified as held for sale #
Total Assets
Segment Liabilities
Generation
Renewables
Transmission and Distribution
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
13,432.77
5,887.65
16,669.66
262.16
36,252.24
(2,904.83)
(267.72)
(11.31)
14,532.74
3,977.45
14,002.70
255.53
32,768.42
(3,582.99)
(235.61)
(12.56)
33,068.38
28,937.26
193.63
343.74
33,262.01
29,281.00
2,709.81
1,494.25
1,677.02
83.16
2,765.46
1,499.66
1,922.14
193.12
5,964.24
6,380.38
(4,010.39)
(109.29)
Nil
Nil
142.17
1,986.73
(59.85)
(160.00)
(219.85)
37,717.32
22,702.98
25,554.98
1,469.98
11,405.97
Nil
(4,493.73)
(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
98,851.23
89,748.15
4,690.36
3,752.74
13,841.81
3,685.28
1,596.45
5,294.05
429
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world 41. Segment Reporting (Contd.)
Particulars
Others
Unallocable*
Liabilities classified as held for sale #
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)
Add/(Less): Unallocable Revenue
Total Segment Revenue
Discontinued Operations- Others #
Total Segment Revenue as reported above
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
118.89
51,197.87
Nil
128.71
56,113.53
1,032.07
73,601.67
67,850.09
429.70
1,235.85
1,314.53
124.61
32.97
292.04
692.51
1,120.75
45.06
45.74
3,137.66
2,196.10
1,055.41
1,079.30
827.25
792.35
25.47
837.22
634.92
22.31
2,700.48
2,573.75
For the year ended
31st March, 2021
For the year ended
31st March, 2020
₹ crore
32,468.10
529.24
Nil
81.80
(10.76)
29,136.37
(451.68)
(21.32)
284.31
(10.42)
33,068.38
28,937.26
193.63
343.74
33,262.01
29,281.00
# Pertains to Strategic Engineering Division being classified as Discontinued Operation and disposed of during the year ended 31 March, 2021
(Refer note 17c).
* Includes amount classified as held for sale other than Strategic Engineering Division.
Notes:
1. Comparative figures for statement of profit and loss items are for the year ended 31st March, 2020 and Balance Sheet items are as at
31st March, 2020.
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 pricing between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
(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:
430
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
41. Segment Reporting (Contd.)
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, 2021
For the year ended
31st March, 2020
₹ crore
33,101.95
160.06
33,262.01
28,911.24
369.76
29,281.00
59,903.68
10,466.86
70,370.54
52,470.93
11,971.70
64,442.63
10,422.09
174.46
10,596.55
8,616.26
291.84
8,908.10
6,478.17
6,478.17
5,480.17
5,480.17
11,405.97
10,917.25
98,851.23
89,748.15
3,124.10
13.56
3,137.66
2,196.09
0.01
2,196.10
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.
431
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
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434
The Tata Power Company Limited Integrated Annual Report 2020-21Notes 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
32,907.34
611.04
Nil
33,518.38
217.15
33,735.53
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, 2021
31st March, 2020
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, 2021
₹ crore
As at
31st March, 2020
₹ crore
3,789.32
689.33
(1,609.51)
(668.75)
2,200.39
3,741.21
860.24
(1,337.24)
(1,195.78)
2,068.43
1,628.73
571.66
1,531.08
537.35
435
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
43.1 Summarised Financial Information of Material Non Controlling Interests
(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
436
For the year ended
31st March, 2021
₹ crore
2,503.38
17.15
(1.18)
(1,500.33)
(40.27)
(136.09)
(246.07)
(280.11)
316.48
(5.46)
311.02
0.94
311.96
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
230.85
81.11
133.20
46.80
249.99
87.83
259.00
91.00
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
1,024.74
(427.17)
(614.88)
(17.31)
1,355.86
(295.63)
(975.68)
84.55
As at
31st March, 2021
₹ crore
4,463.51
962.13
20.04
5,511.71
(4,624.61)
(2,562.67)
3,770.11
As at
31st March, 2020
₹ crore
4,408.09
1,090.56
20.04
5,221.85
(4,946.65)
(2,320.76)
3,473.13
1,922.78
1,847.33
1,771.32
1,701.81
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
43.1 Summarised Financial Information of Material Non Controlling Interests
(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, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
7,296.89
116.02
(5,306.26)
(557.12)
(343.91)
(353.82)
(294.27)
Nil
557.53
(129.36)
428.17
1.28
429.45
219.02
210.43
67.56
64.92
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
61.09
58.69
For the year ended
31st March, 2021
₹ crore
For the year ended
31st March, 2020
₹ crore
816.76
(266.89)
(542.29)
7.58
671.99
(625.09)
(32.62)
14.28
44. Business Combinations
44.1
Summary
During the year, pursuant to vesting order issued by the Odisha Electricity Regulation Commission ('OERC'), the Group has
acquired distribution business of Central, Western and Southern Odisha through its three subsidiaries acquired during the
year. Accordingly, the Group is a licensee to carry out the function of distribution and retail supply of electricity covering the
distribution circles of Central, Western and Southern Odisha for a period of 25 years.
Below are the details of subsidiaries acquired:
Name of the acquired Subsidiaries
Principal Activity
Date of Acquisition
TP Central Odisha Distribution Ltd. (TPCODL)
Distribution business of Central Odisha
1st June, 2020
TP Western Odisha Distribution Ltd. (TPWODL)
TP Southern Odisha Distribution Ltd. (TPSODL)
Distribution business of Western Odisha
1st January, 2021
Distribution business of Southern Odisha 1st January, 2021
Proportion of voting
equity interest
acquired
51%
51%
51%
The above subsidiaries were acquired pursuant to order issued by Orissa Electricity Regulatory Commission ('OERC') which is
in line with Group's expansion plan for Distribution Business.
437
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
44. Business Combinations (Contd.)
44.2
Consideration transferred and Net Assets acquired
The Group has accounted for these acquisitions on provisional basis in accordance with Ind AS 103 ‘Business Combination’.
The details of these acquisitions are as follows:
Particulars
Consideration transferred
Add: Non-Controlling Interest
Less: fair value of identifiable net assets acquired (Refer Note 44.3 below)
Goodwill
TPCODL
178.50
147.00
(300.00)
25.50
TPWODL
255.00
147.00
(300.00)
102.00
TPSODL
127.50
98.00
(200.00)
25.50
₹ crore
Total
561.00
392.00
(800.00)
153.00
Acquisition related costs amounting to ₹ 0.50 crore have been excluded from the consideration transferred and have been
recognised as an expenses in profit and loss in the current year, under the head "Other expenses".
44.3 Details of assets acquired and liabilities recognised at the date of acquisition
The erstwhile management of these utilities are in the process of finalizing their audited financial statements as at the
respective acquisition dates. Pending audit of financial statements as at acquisition date, the Group has allocated the
purchase consideration on a provisional basis considering the Vesting Orders. The following table summarises the recognised
provisional amounts of assets acquired and liabilities assumed at the date of acquisition:
Particulars
Non-current Assets
Property, Plant and Equipments
Capital Work-in-Progress
Other Financial Assets
Other Non-Current Assets
Current Assets
Inventories
Cash and Cash Equivalents
Bank balances other than above
Other Financial Assets
Other Current Assets
Non-current Liabilities
Other Non-current Liabilities
Other Financial Liabilities
Current Liabilities
Borrowings
Trade Payables
Other Financial Liabilities
Other Current Liabilities
TPCODL
TPWODL
TPSODL
2,053.97
618.59
1.82
Nil
30.00
80.17
1,235.10
11.47
66.39
1,267.27
152.50
168.80
1.08
23.28
231.90
823.75
39.28
0.29
423.99
349.92
326.41
2.78
6.96
134.23
Nil
10.84
11.27
₹ crore
Total
3,745.23
1,121.01
497.03
3.86
60.24
446.30
2,058.85
61.59
77.95
(989.27)
(1,523.97)
(210.90)
(885.48)
(424.86)
(27.59)
(1,625.03)
(2,437.04)
(157.54)
(213.66)
(844.78)
(68.29)
(336.49)
(20.68)
(950.45)
(4.15)
(172.98)
(139.54)
(291.40)
(10.03)
(667.01)
(373.88)
(2,086.63)
(82.47)
Fair value of Net Assets acquired
300.00
300.00
200.00
800.00
438
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
44. Business Combinations (Contd.)
Certain documents, information, records and reconciliations for the balances as at the acquisition dates are incomplete and
have not been made available to the Group. The subsidiary companies are in discussions with the erstwhile management
and OERC for the resolution of such matters. Adjustments, if any, will be recognized post completion of such resolution. As
per vesting order, any change in the value of assets and liabilities transferred on account of the reconciliation / resolution
of said matters and/ or any other matter identified in future will be allowed to be recovered by the Group in the manner
specified in the vesting order. Hence, the Group believes that the reconciliation / resolution of the above matters will not
have any impact on the financial position and financial performance of the Group as reflected in the financial statements.
44.4
Further, prior to the acquisition, these businesses were administrated and operated by OERC through GRIDCO Ltd., a State
Government Group and accordingly the provisions of Companies Act, 2013, including the provisions of section 143(3)(i) of
the Companies Act, 2013 related to directors and auditors reporting on existence of internal financial controls system and
their operating effectiveness were not applicable to these utilities. Post acquisition, the subsidiary companies are in the
process of strengthening the existing internal controls, including maintenance of sufficient and appropriate records over
key processes considering the essential components of internal controls stated in the Guidance Note.
44.5
Revenue and profit or loss of the acquiree since the acquisition date included in the consolidated statement of
profit and loss of the Group:
Particulars
Revenue from Operations (Including Net Movement
in Regulatory)
Profit before tax
TPCODL
2,886.14
9.02
TPWODL
822.61
(1.33)
TPSODL
309.93
13.24
Total
4,018.68
20.93
As the records and complete financial statements of erstwhile utilities before acquisition date are not available to the Group,
accordingly, the revenue and profit or loss of the combined entity for the current financial year if the Business Combination
had taken place on 1st April, 2020 has not been disclosed.
44.6
Subsequent to the year, the Group has acquired 51% stake in TP Northern Odisha Distribution Limited (‘TPNODL’) for ₹
191.24 crore. TPNODL is the licensee to carry out the function of distribution and retail supply of electricity covering the
distribution circles of Balasore, Bhadrak, Baripada, Jajpur and Keonjhar in the state of Odisha for a period of 25 years effective
1st April, 2021. Pending audit of financial statements of the acquiree as at acquisition date and details of assets and liability
transferred, said acquisition is recognized on provisional basis.
45
Recent Pronouncement
On 24th March, 2021, the Ministry of Corporate Affairs ('MCA') through a notification, amended Schedule III of the Companies
Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from 1st April, 2021. Key amendments
relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian
Accounting Standards) Rules 2015 are:
Balance Sheet:
•
Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly distinguished as current or non-
current.
• Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior
period errors and restated balances at the beginning of the current reporting period.
•
•
•
Specified format for disclosure of shareholding of promoters.
Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset
under development.
If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions,
then disclosure of details of where it has been used.
439
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
44. Business Combinations (Contd.)
•
Specific disclosure under ‘additional regulatory requirement’ such as compliance with approved schemes of arrangements,
compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans
and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property
held etc.
Statement of Profit and Loss:
• Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency
specified under the head ‘additional information’ in the notes forming part of the consolidated financial statements.
The amendments are extensive and the Group will evaluate the same to give effect to them as required by law.
46
Impact of COVID-19
India and other global markets experienced significant disruption in operations resulting from uncertainty caused by the
worldwide coronavirus pandemic. Management believes that there is not much of an impact likely due to this pandemic
on the business of the Group 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 owning Mundra power plant, coal mines and related infrastructure). Based on
sensitivity analysis, management believes that the said uncertainty is not likely to impact the recoverability of Mundra CGU.
As the situation is still continuously evolving, the eventual impact may be different from the estimates made as of the date
of approval of these financial statements.
47 The Code on Social Security, 2020
The Code on Social Security 2020 ('Code') has been notified in the Official Gazette on 29th September, 2020.The Code is not
yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period
in which said Code becomes effective and the rules framed thereunder are notified.
48 Approval of Consolidated Financial Statements
The Consolidated financial statements were approved for issue by the Board of Directors on 12th May, 2021.
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, 12th May, 2021
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
HANOZ M. MISTRY
Company Secretary
Mumbai, 12th May, 2021
440
The Tata Power Company Limited Integrated Annual Report 2020-21Notes to the Consolidated Financial Statements
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3
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,
Statutory ReportsFinancial StatementsOverviewOur Emphasis on ValueOur Value-creation Paradigm#Futureready: Empowering customers for tomorrow’s world
Notice
NOTICE IS HEREBY GIVEN THAT THE ONE HUNDRED
AND SECOND ANNUAL GENERAL MEETING OF THE
TATA POWER COMPANY LIMITED will be held on
Monday, the 5th day of July 2021 at 3 p.m. (IST) through
Video Conferencing/Other Audio Visual Means, 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 2021, 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 2021, together with the Report of the
Auditors thereon.
To declare a dividend on Equity Shares for the financial
year ended 31st March 2021.
To appoint a Director in place of Mr. N. Chandrasekaran
(DIN:00121863), who retires by rotation and, being eligible,
offers himself for re-appointment.
Special Business:
5.
Re-appointment of Ms. Anjali Bansal (DIN:00207746)
as an Independent Director
To consider and, if thought fit, to pass the following
resolution as a Special Resolution:
“RESOLVED that pursuant to the provisions of Sections
149, 152 and other applicable provisions, if any, of the
Companies Act, 2013 (the “Act”) (including any statutory
modification or re-enactment thereof for the time being
in force), read with Schedule IV to the Act, the Companies
(Appointment and Qualifications of Directors) Rules, 2014
(the “Rules”), as amended from time to time, Regulation
17 and other applicable regulations of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”),
as amended from time to time, Ms. Anjali Bansal (DIN:
00207746), who was appointed as an
Independent
Director at the 98th Annual General Meeting of the
Company and who holds office upto 13th October 2021
and who is eligible for re-appointment and who meets
the criteria for independence as provided in Section
149(6) of the Act along with the Rules framed thereunder
and Regulation 16(1)(b) of the Listing Regulations and
who has submitted a declaration to that effect and in
respect of whom the Company has received a Notice in
writing from a Member under Section 160(1) of the Act
proposing her candidature for the office of Director, be
and is hereby re-appointed as an Independent Director of
444
the Company, not liable to retire by rotation, to hold office
for a second term of 5 years commencing with effect from
14th October 2021 upto 13th October 2026, based on the
recommendation of the Nomination and Remuneration
Committee and the Board.”
6.
Re-appointment of Ms. Vibha Padalkar
01682810) as an Independent Director
(DIN:
To consider and, if thought fit, to pass the following
resolution as a Special Resolution:
“RESOLVED that pursuant to the provisions of Sections
149, 152 and other applicable provisions, if any, of the
Companies Act, 2013 (the “Act”) (including any statutory
modification or re-enactment thereof for the time being
in force), read with Schedule IV to the Act, the Companies
(Appointment and Qualifications of Directors) Rules, 2014
(the “Rules”), as amended from time to time, Regulation
17 and other applicable regulations of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing
Regulations”), as amended from time to time, Ms. Vibha
Padalkar (DIN:01682810), who was appointed as an
Independent Director at the 98th Annual General Meeting
of the Company and who holds office upto 13th October
2021 and who is eligible for re-appointment and who
meets the criteria for independence as provided in Section
149(6) of the Act along with the rules framed thereunder
and Regulation 16(1)(b) of the Listing Regulations and
who has submitted a declaration to that effect and in
respect of whom the Company has received a Notice in
writing from a Member under Section 160(1) of the Act
proposing her candidature for the office of Director, be
and is hereby re-appointed as an Independent Director of
the Company, not liable to retire by rotation, to hold office
for a second term of 5 years commencing with effect from
14th October 2021 upto 13th October 2026, based on the
recommendation of the Nomination and Remuneration
Committee and the Board.”
7.
Re-appointment of Mr. Sanjay V. Bhandarkar (DIN:
01260274) as an Independent Director
To consider and, if thought fit, to pass the following
resolution as a Special Resolution:
“RESOLVED that pursuant to the provisions of Sections
149, 152 and other applicable provisions, if any, of the
Companies Act, 2013 (the “Act”) (including any statutory
modification or re-enactment thereof for the time being
in force), read with Schedule IV to the Act, the Companies
(Appointment and Qualifications of Directors) Rules, 2014
(the “Rules”), as amended from time to time, Regulation
17 and other applicable regulations of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing
Regulations”), as amended from time to time, Mr. Sanjay
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
NOTES:
1.
V. Bhandarkar (DIN:01260274), who was appointed as an
Independent Director at the 98th Annual General Meeting
of the Company and who holds office upto 13th October
2021 and who is eligible for re-appointment and who
meets the criteria for independence as provided in Section
149(6) of the Act along with the rules framed thereunder
and Regulation 16(1)(b) of the Listing Regulations and
who has submitted a declaration to that effect and in
respect of whom the Company has received a Notice in
writing from a Member under Section 160(1) of the Act
proposing his candidature for the office of Director, be
and is hereby re-appointed as an Independent Director of
the Company, not liable to retire by rotation, to hold office
for a second term of 5 years commencing with effect from
14th October 2021 upto 13th October 2026, based on the
recommendation of the Nomination and Remuneration
Committee and the Board.”
8.
Appointment of Branch Auditors
To consider and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of Section
143(8) and other applicable provisions, if any, of the
Companies Act, 2013 (the “Act’’) (including any statutory
modification or re-enactment thereof for the time being
in force) and the Companies (Audit and Auditors) Rules,
2014, as amended from time to time, the Board of Directors
(which term shall be deemed to include any Committee
of the Board constituted to exercise its powers, including
the powers conferred by this Resolution) be and is hereby
authorised to appoint as Branch Auditor(s) of any Branch
Office of the Company, whether existing or which may be
opened/acquired hereafter, outside India, in consultation
with the Company’s Auditors, any persons, qualified to act
as Branch Auditors within the provisions of Section 143(8)
of the Act and to fix their remuneration."
9. 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 2021-22."
2.
3.
In view of the outbreak of COVID-19 pandemic and its
continuation in the current year, the Ministry of Corporate
Affairs (the “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”,
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)” and General Circular No. 02/
2021 dated 13th January 2021, 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) Regulations 2015 - Covid-19 pandemic”
and Circular No. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated
15th January 2021,
in relation to “Relaxation from
compliance with certain provisions of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
due to the CoVID -19 pandemic” (collectively referred to as
“SEBI Circulars”) 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
Circulars 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
Monday, 5th July 2021, at 3 p.m. (IST) through VC/OAVM
and the voting for items to be transacted in the Notice to
this AGM is only through remote electronic voting process
(“e-Voting”). The deemed venue for the 102nd AGM will be
Bombay House, 24, Homi Mody Street, Mumbai 400 001.
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 9 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 9 above and the relevant details of the Directors
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Notice#Futureready: Empowering customers for tomorrow’s world
seeking re-appointment as set out in Item Nos.4 to 7
above as required under Regulation 36(3) of the Listing
Regulations and as required under Secretarial Standard -
2 on General Meetings issued by The Institute of Company
Secretaries of India, is annexed hereto as Annexure-A.
9.
10.
PuRSuANT TO THE PROVISIONS OF THE ACT, A
MEMBER ENTITLED TO ATTEND AND VOTE AT THE
AGM IS ENTITLED TO APPOINT A PRO xy TO ATTEND
AND VOTE ON HIS/HER BEHALF AND THE PROxy NEED
NOT BE A MEMBER OF THE COMPAN y. 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 CIRC uLARS AND
THE SEBI CIRCuLARS, 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.
Institutional Investors, who are Members of the Company
and Corporate Members intending 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 by e-mail at
cs@parikhassociates.com with a copy marked to evoting@
nsdl.co.in and investorcomplaints@tatapower.com.
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.
11.
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
(“NSDL”) e-Voting website at
Depository Limited’s
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. However, the large
shareholders (i.e. shareholders holding 2% or more
shareholding),
Investors,
Directors, Key Managerial Personnel, the Chairpersons
of the Audit Committee of Directors, Nomination and
Remuneration Committee and Stakeholders Relationship
Committee, Auditors, etc. may be allowed to attend the
meeting without any restrictions on account of first come
first served basis.
Institutional
Promoters,
4.
5.
6.
7.
8.
446
In terms of the MCA Circulars and the SEBI Circulars, the
Company is sending the Notice of the AGM along with the
Annual Report for Fy21 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 Fy21 have 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.
The Register of Members and the Share Transfer
Books of the Company will remain closed from
Saturday, 19th June 2021 to Monday, 5th July 2021,
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 wednesday, 7th July
2021, 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 Friday, 18th June 2021;
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 Friday,
18th June 2021.
Pursuant to the Finance Act, 2020, dividend income is
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 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 7th June 2021.
12.
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
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21 Private Limited (“TSR”), at C-101, 1st Floor, 247 Park, Lal
Bahadur Shastri Marg, Vikhroli west, Mumbai 400 083,
latest by Friday, 25th June 2021:
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:
i)
Name and Branch of Bank and Bank
Account type;
ii)
Bank Account Number and type allotted
by your bank after implementation of Core
Banking Solutions; and
iii)
11 digit IFSC Code.
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.
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.
31st March 2021 had been fixed as the cut-off date for
re-lodgement of transfer deeds and the shares that are
re-lodged for transfer shall be issued only in demat mode.
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 dematerialized
form. Members can contact the Company or Company’s
Registrar and Share Transfer Agent, TSR at csg-unit@
tpclindia.co.in for assistance in this regard.
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.
17.
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.
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.
14.
19.
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,
through postal or courier services.
In case of any
disruption of postal or courier services due to prevalence
of COVID-19 in containment zones, upon normalisation
of such services.
15. As per Regulation 40 of the Listing Regulations, as
listed companies can be
amended, securities of
transferred only
in dematerialised form with effect
from 1st April 2019, except in case of request received
for transmission or transposition of securities. Further,
in terms of the Circular issued by the Securities and
Exchange Board of India dated 2nd December 2020,
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 form 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 or in electronic mode
to csg-unit@tpclindia.co.in, 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
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Notice#Futureready: Empowering customers for tomorrow’s world 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. 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/
web form No. IEPF-5 available on www.iepf.gov.in. The
Members/Claimants can file only one consolidated claim
in a financial year as per the IEPF Rules. For details, please
refer to Report on Corporate Governance, which is a part
of this Annual Report.
22. Members desiring inspection of statutory registers during
the AGM may send their request in writing in advance 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 upto 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 p.m. (IST) on Friday, 25th June 2021.
25. Process for registration of e-mail addresses to receive
the Notice of AGM and the Integrated Annual Report
for FY21 electronically and cast votes electronically:
(i)
Registration of email addresses with TSR:
To
facilitate Members to receive this Notice
electronically and cast their votes 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 p.m. (IST) on Friday, 25th June
2021 pursuant to which, any Member may receive
on the e-mail address provided by the Member,
Notice of the AGM along with the Integrated Annual
Report for Fy21.
448
process
The
address is as under:
for
registration
of
e-mail
I.
II.
For Members who hold
Electronic form:
a)
shares
in
of
the
name
https://tcpl.linkintime.co.in/EmailReg/
email_register.html
Select
the
Company from dropdown.
Enter details in respective fields such
as DP ID and Client ID, Name of the
Shareholder, PAN details, mobile
number and e-mail ID.
System will send OTP on mobile
number and e-mail ID.
Enter OTP received on mobile number
and e-mail ID and submit.
For Members who
in Physical form:
a)
hold
shares
of
the
name
https://tcpl.linkintime.co.in/EmailReg/
email_register.html
the
Select
Company from dropdown.
Enter details in respective fields such
as Folio no. and Certificate no., Name
of the Shareholder, PAN details, mobile
number and e-mail ID.
System will send OTP on mobile
number and e-mail ID.
Enter OTP received on mobile number
and e-mail ID and submit.
b)
c)
d)
e)
b)
c)
d)
e)
After successful submission of the
e-mail address, NSDL will e-mail a copy
of the Integrated Annual Report for
Fy21 along with the remote e-Voting
user ID and password on the e-mail
address registered by the Member.
In case of any queries, Members may
write to csg-unit@tpclindia.co.in or
evoting@nsdl.co.in.
(ii) Registration of e-mail address permanently
with Company/DP:
Members are requested to register their e-mail
address with their concerned DPs, in respect of
electronic holding and with the RTA, in respect
of physical holding, by writing to them at
csg-unit@tpclindia.co.in.
(iii) Alternatively, those Shareholders who have not
registered their email addresses are required to
send an e-mail request to evoting@nsdl.co.in along
with the following documents for procuring user ID
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
and password for e-Voting for the resolutions set
out in this Notice:
•
In case shares are held in physical mode,
please provide Folio No., Name of shareholder,
scanned copy of the share certificate (front
and back),
scanned copy
of PAN card, self-attested scanned copy
of Aadhar Card.
self-attested
•
•
In case shares are held in Demat mode,
please provide DP ID-Client ID (8 digit DP ID
+ 8 digit Client ID or 16 digit beneficiary ID),
Name, client master or copy of Consolidated
Account statement, self-attested scanned
copy of PAN card, self-attested scanned copy
of Aadhar Card.
If you are an Individual shareholder holding
securities in Demat mode, you are requested
to refer to the
login method explained
at para VI below under step 1 (A) i.e.
Login method for remote e-Voting and
joining virtual meeting for Individual
shareholders/Members holding securities
in Demat mode.
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 DPs
and in respect of physical holdings, with the RTA.
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 electronic voting system during the VC/
OAVM proceedings at the AGM and Members
26.
27.
28.
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.
IV. Members of the Company, holding shares
either in physical form or electronic form, as on
the cut-off date of Monday, 28th June 2021, may
cast their vote by remote e-Voting. The remote
e-Voting period commences on Thursday,
1st July 2021 at 9 a.m. (IST) and ends on Sunday,
4th July 2021 at 5 p.m. (IST). The remote
e-Voting module shall be disabled by NSDL for
voting thereafter. Once the vote on a resolution
is cast by the Member, the Member shall not be
allowed to change it subsequently.
V.
The instructions for Members attending the AGM
through VC/OAVM are as under:
A.
The Members will be provided with a
facility to attend the AGM through VC/
OAVM through the NSDL e-Voting system.
Members may access the same by following
the steps mentioned below for "Access to
NSDL e-Voting system". The link for VC/OAVM
will be available in "Member login" where
the EVEN of the Company will be displayed.
After successful login, the Members will be
able to see the link of "VC/OAVM" placed
under the tab "Join General Meeting" against
the name of the Company. 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.
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
tablets or
from mobile devices or
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Notice#Futureready: Empowering customers for tomorrow’s world 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
financial statements or any other matter
from their
to be placed at the AGM,
registered
address, mentioning
e-mail
their name, DP ID and Client ID number/
to
folio number and mobile number,
reach the Company’s e-mail address at
investorcomplaints@tatapower.com before
3 p.m.
(IST) on wednesday, 30th June
2021. 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 Monday, 28th June 2021 (9 a.m.
IST) and Thursday, 1st July 2021 (5 p.m. IST).
The Company reserves the right to restrict
the number of speakers depending on the
availability of time for the AGM.
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: Access to NSDL e-Voting system
A.
Log-in method for remote e-Voting and joining virtual meeting for the Individual Shareholders/Members
holding securities in Demat mode
In terms of the Circular issued by the Securities and Exchange Board of India dated 9th December 2020, on
“e-Voting facility provided by Listed Companies”, e-Voting process has been enabled to all the individual Demat
account holders, by way of single login credential, through their Demat accounts/websites of Depositories/ DPs
in order to increase the efficiency of the voting process. Individual Demat account holders would be able to cast
their vote without having to register again with the e-Voting service provider ("ESP") thereby not only facilitating
seamless authentication but also ease and convenience of participating in e-Voting process.
Shareholders are advised to update their mobile number and e-mail ID with their DPs in order to access
e-Voting facility.
Log-in method for Individual Members holding securities in Demat mode is given below:
Type of
Members
For Members
who hold
shares in
Demat mode
with NSDL
Log-in Method
A. NSDL IDeAS Facility
If you are already registered, follow the below steps:
i) Visit the e-Services website of NSDL. Open web browser by typing the following uRL:
https://eservices.nsdl.com/ either on a Personal Computer or on a mobile.
ii) Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under
"Login" which is available under "IDeAS" section.
iii) A new screen will open. you will have to enter your user ID and Password. After successful
authentication, you will be able to see e-Voting services.
iv) Click on "Access to e-Voting" appearing on the left hand side under e-Voting services and you
will be able to see e-Voting page.
450
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
Type of
Members
For Members
who hold
shares in
Demat mode
with NSDL
For Members
who hold
shares in
Demat mode
with CDSL
For Members
who hold shares
in Demat mode
logging in
through the
depository
participants
Log-in Method
v) Click on options available against company name or e-Voting service provider - NSDL and you
will be re-directed to NSDL e-Voting website for casting your vote during the remote e-Voting
period or joining virtual meeting and e-Voting during the meeting.
If you are not registered, follow the below steps:
i) Option to register is available at https://eservices.nsdl.com/.
ii) Select "Register Online for IDeAS" Portal or click at https://eservices.nsdl.com/Secureweb/
IdeasDirectReg.jsp
iii) Please follow steps given in points 1-5 of Point A.
B. e-Voting website of NSDL
i) Open web browser by typing the following uRL: https://www.evoting.nsdl.com/ either on a
Personal Computer or on a mobile.
ii) Once the home page of e-Voting system is launched, click on the icon "Login" which is available
under "Shareholder/Member" section.
iii) A new screen will open. you will have to enter your user ID (i.e. your sixteen digit Demat account
number held with NSDL), Password/OTP and a verification code as shown on the screen.
iv) After successful authentication, you will be redirected to NSDL Depository site wherein you
can see e-Voting page. Click on options available against company name or e-Voting service
provider - NSDL and you will be redirected to e-Voting website of NSDL for casting your vote
during the remote e-Voting period or virtual meeting and e-Voting during the meeting.
i) Existing users who have opted for Easi/Easiest, they can login through their user ID and password.
Option will be made available to reach e-Voting page without any further authentication. The
uRL for users to login to Easi/Easiest are https://web.cdslindia.com/myeasi/home/login or
www.cdslindia.com and click on New System Myeasi.
ii) After successful login of Easi/Easiest the user will be also able to see the e-Voting Menu. The
Menu will have links of e-Voting service provider i.e. NSDL. Click on NSDL to cast your vote.
iii) If the user
is not registered
for Easi/Easiest, option to register
is available at
https://web.cdslindia.com/myeasi/Registration/EasiRegistration.
iv) Alternatively, the user can directly access e-Voting page by providing Demat Account Number
and PAN from a link in www.cdslindia.com home page. The system will authenticate the user by
sending OTP on registered Mobile and Email as recorded in the Demat Account. After successful
authentication, user will be provided links for the respective ESP i.e. NSDL where the e-Voting
is in progress.
i) you can also login using the login credentials of your Demat account through your Depository
Participant registered with NSDL/CDSL for e-Voting facility.
ii) upon login, you will be able to see e-Voting option. Once you click on e-Voting option, you will
be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can
see e-Voting feature.
iii) Click on options available against company name or e-Voting service provider - NSDL and you
will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting
period or joining virtual meeting and e-Voting during the meeting.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget
Password option available at the abovementioned website.
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Notice#Futureready: Empowering customers for tomorrow’s world
Helpdesk for the Individual Shareholders/Members holding securities in Demat mode in case of any
technical issues related to Log-in through Depository i.e. NSDL and CDSL:
Helpdesk details
v)
your user ID details are given below:
Log-in
Method
Securities
held with
NSDL
Securities
held with
CDSL
sending a
Please contact NSDL helpdesk
by
request at
evoting@nsdl.co.in or call at
toll free no.: 1800 1020 990
and 1800 22 44 30
sending a
Please contact CDSL helpdesk
request at
by
helpdesk.evoting@cdslindia.com
or contact at 022 - 23058738 or
022 - 23058542 - 43
B.
Log-in method for remote e-Voting and
joining virtual meeting for the Members
other than Individual Members holding
securities in Demat mode and Members
holding securities in physical mode
How to Log-in to NSDL e-Voting website?
i)
ii)
iii)
iv)
Visit the e-Voting website of NSDL. Open
web browser by typing the following:
h t t p s : // w w w. e v ot i n g . n s d l . c o m /
either on a Personal Computer
or on a mobile.
Once the home page of e-Voting
system is launched, click on the icon
"Login" which
is available under
"Shareholder/Member" section.
A new screen will open. you will have
to enter your user ID, your Password/
OTP and a Verification Code as shown
on the screen.
Alternatively, if you are registered for
NSDL eservices i.e. IDeAS, you can
log-in at
https://eservices.nsdl.com/
with your existing IDeAS login. Once
log-in to NSDL eservices after
you
using your
log-in credentials, click
on e-Voting and you can proceed to
Step 2 i.e. cast your vote electronically
on NSDL e-Voting system.
452
Manner of
holding shares i.e.
Demat (NSDL or
CDSL) or Physical
a) For Members
who hold shares
in Demat account
with NSDL
b) For Members
who hold
shares in
Demat account
with CDSL
c) For Members
holding shares
in Physical Form
Your User ID is:
8 Character DP ID
followed by 8 Digit
Client ID
For example if your
DP ID
is IN300*** and
Client ID is
12****** then your
user ID is
IN300***12******
16 Digit
Beneficiary ID
For example if your
Beneficiary ID is
12**************
then your user ID is
12**************
EVEN Number
followed by Folio
Number registered
with the Company
For example if
Folio Number is
001*** and EVEN is
101456 then user ID
is 101456001***
vi)
your password details are given below:
a)
If you are already registered for
e-Voting, then you can use your
existing password to login and
cast your vote.
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
b)
c)
for
the first
If you are using NSDL e-Voting
system
time,
you will need to retrieve the
"initial password" which was
communicated to you by NSDL.
Once you retrieve your "initial
password", you need to enter
the "initial password" and the
to
system will compel you
change your password.
How
"initial password"?
to
retrieve
your
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 in your
mailbox from evoting@nsdl.com.
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
for
shares held in physical form. The
.pdf file contains your "user ID"
and your "initial password".
folio number
vii)
If you are unable to retrieve
the
or have not
"initial password"
have
or
forgotten your password:
received
a)
b)
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.
User
"Physical
Reset
Password?" (If you are holding
in
shares
physical mode)
option
available on www.
evoting.nsdl.com.
c)
If you are still unable to get
the password by
aforesaid
two options, you can send a
request at evoting@nsdl.co.in
mentioning
Demat
account number/folio number,
your PAN, your name and your
registered address.
your
d) Members can also use the One
Time Password
(OTP) based
login for casting the votes on the
e-Voting system of NSDL.
viii) After entering your password, tick on
Agree to "Terms and Conditions" by
selecting on the check box.
ix)
x)
Now, you will have
"Login" button.
to click on
After you click on the "Login" button,
Home page of e-Voting will open.
Step 2: Cast your vote electronically on
NSDL e-Voting system.
How to cast your vote electronically on
NSDL e-Voting system?
A.
B.
After successful login at Step 1, you
will be able to see all the companies
"EVEN" in which you are holding shares
and whose voting cycle and General
Meeting is in active status.
Select "EVEN" of Company for which
you wish to cast your vote during the
remote e-Voting period and casting
your vote during the virtual meeting.
For joining virtual meeting, you need to
click on "VC/OAVM" link placed under
"Join General Meeting".
C.
Now you are ready for e-Voting as the
Voting page opens.
453
Notice#Futureready: Empowering customers for tomorrow’s world
D.
E.
F.
G.
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
"Submit" and also
and click on
"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.
B.
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.
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.
C. Members who have voted through Remote
e-Voting will be eligible to attend the
AGM. However, they will not be eligible to
vote at the AGM.
D. Members who need assistance before or
during the AGM, can contact Ms. Pallavi
Mhatre, Manager - NSDL or Mr. Amit Vishal,
Senior Manager - NSDL at evoting@nsdl.co.in
or call on : 1800 1020 990 and 1800 22 44 30.
General Guidelines for Members
i)
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.
ii)
(FAQs)
In case of any queries, you may refer the
for
Frequently Asked Questions
Shareholders and e-Voting user manual for
Shareholders available at the download
section of www.evoting.nsdl.com or call on
toll free no.: 1800 1020 990 and 1800 22 44
30 or send a request at evoting@nsdl.co.in.
iii)
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 Monday, 28th June 2021.
Ix.
Any person holding shares in physical form and non-
individual shareholders, 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. Monday, 28th June 2021, may obtain the login ID
and password by sending a request at evoting@nsdl.co.in
or the Company/TSR.
However, if the person is already registered with NSDL for
remote e-Voting, then the existing user ID and password
of the said person can be used for casting vote. If the
person forgot his/her password, the same can be reset
by using “Forgot user Details/Password” or “Physical
user Reset Password” option available on www.evoting.
nsdl.com or by calling on toll free no. 1800 1020 990 and
1800 22 44 30. In case of Individual Shareholders holding
securities in Demat mode who acquires shares of the
Company and becomes a Member of the Company after
sending of the Notice and holding shares as of the cut-
off date i.e. Monday, 28th June 2021 may follow steps
mentioned in the notes to Notice under “Access to NSDL
e-Voting system”.
x.
xI.
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)
or failing him, Ms. Sarvari Shah (FCS 9697) 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.
454
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
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 Meeting
and, thereafter, unblock the votes cast through remote
e-Voting, in the presence of at least two witnesses not in
the employment of the Company and shall make, not later
than two working days from the conclusion of the AGM,
a Consolidated Scrutinizer’s Report of the total votes cast
in favour or against, if any, to the Chairman or a person
authorised by him in writing, who shall countersign the
same and declare the result of the voting forthwith.
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
the
www.evoting.nsdl.com,
immediately
after
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, 12th May 2021
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
455
Notice#Futureready: Empowering customers for tomorrow’s world 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 9
of the accompanying Notice dated 12th May 2021:
Item Nos.5 to 7: Ms. Anjali Bansal (DIN:00207746), Ms. Vibha
(DIN:01682810) and Mr. Sanjay V. Bhandarkar
Padalkar
(DIN:01260274) were appointed as Independent Directors of the
Company by the Members of the Company at the 98th Annual
General Meeting held on 23rd August 2017, for a period of five
years commencing with effect from 14th October 2016 upto
13th October 2021.
Based on the recommendation of the Nomination and
Remuneration Committee and pursuant to the performance
evaluation of Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar
respectively, as a Member of the Board and considering their
background, experience and contribution, the continued
association of these Directors would be beneficial to the
Company, the Board, at its meeting held on 12th May 2021,
proposed their respective re-appointment as Independent
Directors of the Company, not liable to retire by rotation, for a
second term of five years commencing with effect from 14th
October 2021 upto 13th October 2026. The Company has, in
terms of Section 160(1) of the Act received in writing a notice
from a Member, proposing their respective candidatures for the
office of Director.
The Company has received from Ms. Bansal, Ms. Padalkar and
Mr. Bhandarkar respectively, (i) Consent to act as Director in
Form DIR-2 pursuant to Rule 8 of the Companies (Appointment
and Qualifications of Directors) Rules, 2014 (the “Rules”);
(ii) Intimation in Form DIR-8 in terms of the Rules to the effect
that he/she is not disqualified under the provisions of Section
164(2) of the Act; (iii) Declaration to the effect that he/she meets
the criteria of independence as provided in Section 149(6) of
the Act read with Regulation 16 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended
("Listing Regulations"); (iv) Confirmation in terms of Regulation
25(8) of the Listing Regulations that he/she is not aware of any
circumstance or situation which exists or may be reasonably
anticipated that could impair or impact his/her ability to
discharge his/her duties and (v) Declaration pursuant to BSE
Circular No. LIST/COMP/14/2018-19 dated 20th June 2018, that
he/she has not been debarred from holding office of a Director
by virtue of any order passed by Securities and Exchange Board
of India or any other such authority.
They have also confirmed respectively that they are
in
compliance with Rules 6(1) and 6(2) of the Rules, with respect
to the registration with the data bank of Independent Directors
maintained by the Indian Institute of Corporate Affairs.
456
A brief profile of the Directors proposed to be re-appointed
is given below:
(i) Ms. Anjali Bansal is the Founder of Avaana Capital which
invests in technology and innovation led startups for
catalysing returns and impact at scale.
Ms. Bansal is former Non-Executive Chairperson of Dena
Bank (now Bank of Baroda) appointed by the Government
of India to steer the resolution of the stressed bank. She
was earlier a global Partner and Managing Director with
TPG Growth Private Equity. Earlier she was Global Partner
and India CEO with Spencer Stuart and co-led their Asia
Boards practice and a strategy consultant with McKinsey
and Co in New york. She started her career as an engineer.
Ms. Bansal serves as an Independent Non-Executive
Director on leading boards including Piramal Enterprises,
Tata Power, Voltas and Delhivery. She has previously
chaired the India board of women's world Banking and
was on the Advisory Board of the Columbia university
Global Centers, South Asia.
She is a charter member of TiE, and is closely associated
with NITI Aayog’s women Entrepreneurship Platform,
Digital solutions and the Atal Innovation Mission. She
has invested in and mentored various successful startups
including Delhivery, urbanClap, Darwinbox, Nykaa
and Lenskart.
She has been elected as President Bombay Chamber of
Commerce and Industry and serves on the CII National
Committee on Corporate Governance. As an active
contributor to the dialogue on corporate governance and
diversity, Ms. Bansal previously co-founded and chaired
the FICCI Center for Corporate Governance program for
women on Corporate Boards. She is a member of the
young Presidents Organization.
Ms. Bansal has a BE in Computer Engineering from Gujarat
university, a Masters in International Finance and Business
from Columbia university and the yPO Presidents Program
at Harvard Business School.
(ii) Ms. Vibha Padalkar is the Managing Director & Chief
Executive Officer of HDFC Life Insurance Company Limited
(HDFC Life), a leading, listed life insurer with assets under
management in excess of ₹ 1.7 trillion.
Prior to her appointment with HDFC Life, she has worked
in varied sectors such as Business Process Management,
Global FMCG and in a Big 4 audit firm.
Ms. Padalkar is a Chartered Accountant from England &
wales and is also a member of the Institute of Chartered
Accountants of India.
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21
(iii) Mr. Sanjay V. Bhandarkar has over three decades of
corporate finance, advisory and
investment banking
experience in the country. He is an Independent Non-
Executive Director on the boards of three listed companies
viz. The Tata Power Company Limited, S Chand & Company
Limited and HDFC Asset Management Company Limited
since late 2016 and on the board of the National Investment
and Infrastructure Fund Limited as a shareholder nominee.
He has been recently appointed as an Independent Non-
Executive Director on the boards of Tata Projects Limited
and Chemplast Sanmar Limited.
Mr. Bhandarkar is on the Investment Committee ("IC") of a
SEBI registered seed capital fund called Contrarian Vriddhi
as an external IC member. The fund has fully invested its
corpus. He is also on the IC of the uS $ 170 million South
Asia Growth Fund II of GEF Capital Partners as an external
IC member. He is on the advisory board of 1Crowd, a seed
capital stage online investing platform which has also
raised a SEBI approved fund for seed stage investing.
He started his career with ICICI in 1990 and ISec, the joint
venture between ICICI and JP Morgan and then spent two
years with Peregrine Capital. He was part of the founding
team of Rothschild India in 1998 and played a key role in
establishing Rothschild as a well-recognised and respected
pure play advisory investment banking firm in India. He led
the Rothschild India business from December 2005 to June
2016 when he stepped down from his full-time role.
Mr. Bhandarkar’s focus at Rothschild was on M&A as well as
equity capital market advisory for Indian and international
companies. He led the teams that worked closely with the
Government of India on the 3G and BwA spectrum auctions,
the first e-auctions done in India and on the restructuring
of the Enron and GE owned Dabhol power project, one of
the largest and most complex restructurings to date.
He did his MBA from xLRI, Jamshedpur in 1990.
In the opinion of the Board, Ms. Bansal, Ms. Padalkar and
Mr. Bhandarkar are persons of integrity, fulfil the conditions
specified in the Act and the Rules made thereunder read with
the provisions of the Listing Regulations, each as amended, and
are independent of the Management of the Company. Having
regard to their qualifications, experience and knowledge, the
Board considers that their association would be of immense
benefit to the Company and it is desirable to avail the services
of Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar, respectively,
Independent Directors. The terms and conditions of
as
Independent Directors are available for
appointment of
inspection without any
fee payable by the Members.
Members who wish to inspect the same can send a request to
investorcomplaints@tatapower.com.
Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar would be entitled to
sitting fees for attending the meetings of the Board of Directors
and Committees thereof where they are a Member. In addition,
they would be entitled to commission as determined each
year by the Board of Directors within the limits approved by
the Members of the Company for the Non-Executive Directors
of the Company.
In compliance with the provisions of Sections 149, 152 and other
applicable provisions of the Act read with Schedule IV to the Act
and the Rules made thereunder, and in terms of the applicable
provisions of the Listing Regulations, each as amended, the
re-appointment of Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar,
respectively, as Independent Directors of the Company for
a second term commencing with effect from 14th October
2021 upto 13th October 2026 is now being placed before the
Members for their approval by way of special resolutions.
The Board recommends the Resolutions at Item Nos.5 to 7
of the accompanying Notice for approval by the Members
of the Company.
Other than Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar and
their respective relatives, who are concerned or interested in
the respective Resolutions relating to their re-appointment,
none of the Directors or Key Managerial Personnel (KMP) of
the Company and their respective relatives are concerned or
interested in the Resolutions set out at Item Nos. 5 to 7 of the
accompanying Notice.
Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar are not related to
any Director or KMP of the Company.
Item No.8: 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.8 of the accompanying Notice.
Item No.8 of
The Board recommends the Resolution at
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.8 of the accompanying Notice.
457
Notice#Futureready: Empowering customers for tomorrow’s world
Item No.9: Pursuant to Section 148 of the Act, the Company is
required to have the audit of its cost records conducted by a cost
accountant in practice. On the recommendation of the Audit
Committee of Directors, the Board of Directors has approved
the re-appointment of M/s. Sanjay Gupta and Associates (SGA)
(Firm Registration No.000212) as the Cost Auditors of the
Company to conduct audit of cost records maintained by the
Company for Fy22, 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.9 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.9 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, 12th May 2021
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
458
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21 Details of the Directors seeking re-appointment at the 102nd Annual General Meeting
(In pursuance of Regulation 36(3) of the Listing Regulations and
Secretarial Standard - 2 on General Meetings)
Annexure - A
Name of Director
DIN
Designation/Category
of Directorship
Date of Birth (Age)
Date of Appointment
Expertise in specific
functional areas
Mr. Natarajan Chandrasekaran
00121863
Chairman, Non-Independent, Non-Executive
Ms. Anjali Bansal
00207746
Independent, Non-Executive
2nd June 1963 (57 years)
11th February 2017
Mr. Natarajan Chandrasekaran is the Chairman
of the Board at Tata Sons Private Limited, the
holding company and promoter of all Tata group
companies. The Tata group companies, across
10 business verticals, have aggregate annual
revenues over uS $110 billion.
He joined the Board of Tata Sons in October 2016
and was appointed Chairman in January 2017. He
also chairs the Boards of several group operating
companies, including Tata Steel, Tata Motors, Tata
Power and Tata Consultancy Services (TCS) – of
which he was Chief Executive from 2009 to 2017.
His appointment as Chairman followed a 30-year
business career at TCS, which he joined from
university. He rose through the ranks at TCS to
become CEO and Managing Director of the leading
global IT solution and consulting firm. under
his leadership, TCS generated total revenues of
uS $16.5 billion in 2015-16 and consolidated its
position as the largest private sector employer in
India and the country’s most valuable company.
In addition to his professional career at Tata,
Mr. Chandrasekaran is a Director on the Board of
India's Central Bank, the Reserve Bank of India,
since 2016. He is on the International Advisory
Council of Singapore’s Economic Development
Board. He is the Chairman of Indian Institute of
Management Lucknow as well as the President of
the Court at Indian Institute of Science, Bengaluru.
He is the member of Bocconi's International
Advisory Council and the Co-Chair India uS CEO
Forum. He is on the Board of Governors of New
york Academy of Sciences.
He has been awarded
several honorary
doctorates by leading universities in India and
including an honorary Doctor
internationally,
of Letters from Macquarie university, Australia,
Doctor of Letters from the Regional Engineering
College, Trichy, Tamil Nadu, where he completed
a Masters degree in Computer Applications before
joining TCS in 1987.
Mr. Chandrasekaran is also the author of Bridgital
Nation, a ground-breaking book on harnessing
technological disruptions to bring Indians closer
to their dreams.
25th February 1971 (50 years)
14th October 2016
Ms. Anjali Bansal is the Founder of Avaana Capital
which invests in technology and innovation led
startups for catalysing returns and impact at scale.
Ms. Bansal is former Non-Executive Chairperson
of Dena Bank (now Bank of Baroda) appointed by
the Government of India to steer the resolution of
the stressed bank. She was earlier a global Partner
and Managing Director with TPG Growth Private
Equity. Earlier she was Global Partner and India
CEO with Spencer Stuart and co-led their Asia
Boards practice and a strategy consultant with
McKinsey and Co in New york. She started her
career as an engineer.
Ms. Bansal serves as an
Independent Non-
Executive Director on leading boards including
Piramal Enterprises, Tata Power, Voltas and
Delhivery. She has previously chaired the India
board of women's world Banking and was on the
Advisory Board of the Columbia university Global
Centers, South Asia.
is
is a charter member of TiE, and
She
closely associated with NITI Aayog’s women
Entrepreneurship Platform, Digital solutions and
the Atal Innovation Mission. She has invested in
and mentored various
startups
including Delhivery, urbanClap, Darwinbox, Nykaa
and Lenskart.
successful
She has been elected as President Bombay
Chamber of Commerce and Industry and serves
on the CII National Committee on Corporate
Governance. As an active contributor to the
dialogue on corporate governance and diversity,
Ms. Bansal previously co-founded and chaired the
FICCI Center for Corporate Governance program
for women on Corporate Boards. She is a member
of the young Presidents Organization.
Ms. Bansal has a BE in Computer Engineering
from Gujarat university, a Masters in International
Finance and Business from Columbia university
and the yPO Presidents Program at Harvard
Business School.
459
Notice#Futureready: Empowering customers for tomorrow’s world Name of Director
Qualifications
Mr. Natarajan Chandrasekaran
Masters in Computer Applications from Regional
Engineering College, Trichy, Tamil Nadu.
Directorships held
in other companies
(excluding
foreign companies)
•
•
•
•
•
•
•
•
Tata Sons Private Limited
Tata Consultancy Services Limited
Tata Steel Limited
Tata Motors Limited
The Indian Hotels Company Limited
Tata Consumer Products Limited
Tata Chemicals Limited
TCS Foundation
Committee
position held in other
companies
Nomination and Remuneration Committee
Member
•
•
•
•
•
•
•
Tata Sons Private Limited
Tata Consultancy Services Limited
Tata Steel Limited
Tata Motors Limited
The Indian Hotels Company Limited
Tata Consumer Products Limited
Tata Chemicals Limited
Corporate Social Responsibility Committee
Chairman
•
•
Tata Sons Private Limited
Tata Consultancy Services Limited
Executive Committee of the Board
Chairman
•
•
Tata Consultancy Services Limited
Tata Steel Limited
Remuneration
Sitting Fees as approved by the Board from time
to time.
Ms. Anjali Bansal
B.E. (Computer Engineering), Gujarat university,
M.A. International Finance & Business,
Columbia university.
Siemens Limited
•
•
Piramal Enterprises Limited
• Voltas Limited
• Apollo Tyres Limited
•
• Kotak Mahindra Asset Management
Tata Power Renewable Energy Limited
Company Limited
• C&S Electric Limited
• Delhivery Private Limited
• Avaana Advisory Services Private Limited
• Bombay Chamber of Commerce and Industry
• Unnati Employment Network
Audit Committee
Member
•
•
• Kotak Mahindra Asset Management
Siemens Limited
Tata Power Renewable Energy Limited
Company Limited
Nomination and Remuneration Committee
Chairperson
• Kotak Mahindra Asset Management
Company Limited
• Delhivery Private Limited
Member
•
• Voltas Limited
•
Piramal Enterprises Limited
Tata Power Renewable Energy Limited
Corporate Social Responsibility Committee
Member
• Voltas Limited
• Apollo Tyres Limited
•
Tata Power Renewable Energy Limited
Investment Committee
Member
• Voltas Limited
Safety Committee
Member
• Voltas Limited
Committee of Board
Member
• Voltas Limited
Sitting Fees and Commission as approved by the
Board from time to time.
8
8
No. of meetings of
the Board attended
during the year
460
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21 Name of Director
No. of shares held:
(a) Own
(b) For other persons
on a beneficial
basis
Terms and Conditions
of re-appointment
Mr. Natarajan Chandrasekaran
Ms. Anjali Bansal
7,00,000 equity shares
Nil
Nil
Nil
Re-appointment in terms of Section 152(6) of the
Companies Act, 2013.
Re-appointment as an Independent Director, not
liable to retire by rotation, for a second term of 5
years, commencing with effect from 14th October
2021 upto 13th October 2026.
461
Notice#Futureready: Empowering customers for tomorrow’s world Ms. Vibha Padalkar
01682810
Independent, Non-Executive
Mr. Sanjay V. Bhandarkar
01260274
Independent, Non-Executive
Name of Director
DIN
Designation/Category
of Directorship
Date of Birth (Age)
Date of Appointment
Expertise in specific
functional areas
5th May 1968 (53 years)
14th October 2016
Ms. Vibha Padalkar is the Managing Director &
Chief Executive Officer of HDFC Life Insurance
Company Limited (HDFC Life), a leading, listed life
insurer with assets under management in excess
of ₹ 1.7 trillion.
Prior to her appointment with HDFC Life, she
has worked in varied sectors such as Business
Process Management, Global FMCG and in a
Big 4 audit firm.
Ms. Padalkar is a Chartered Accountant from
England & wales and is also a member of the
Institute of Chartered Accountants of India.
26th March 1968 (53 years)
14th October 2016
Mr. Sanjay V. Bhandarkar has over three decades
of corporate finance, advisory and investment
banking experience in the country. He is an
Independent Non-Executive Director on the
boards of three listed companies viz. The Tata
Power Company Limited, S Chand & Company
Limited and HDFC Asset Management Company
Limited since late 2016 and on the board of the
National
Infrastructure Fund
Limited as a shareholder nominee. He has been
recently appointed as an
Independent Non-
Executive Director on the boards of Tata Projects
Limited and Chemplast Sanmar Limited.
Investment and
Mr. Bhandarkar is on the Investment Committee
("IC") of a SEBI registered seed capital fund called
Contrarian Vriddhi as an external IC member. The
fund has fully invested its corpus. He is also on
the IC of the uS $ 170 million South Asia Growth
Fund II of GEF Capital Partners as an external IC
member. He is on the advisory board of 1Crowd, a
seed capital stage online investing platform which
has also raised a SEBI approved fund for seed
stage investing.
He started his career with ICICI in 1990 and ISec,
the joint venture between ICICI and JP Morgan,
and then spent two years with Peregrine Capital.
He was part of the founding team of Rothschild
India in 1998 and played a key role in establishing
Rothschild as a well-recognised and respected
pure play advisory investment banking firm in
India. He led the Rothschild India business from
December 2005 to June 2016 when he stepped
down from his full-time role.
Mr. Bhandarkar’s focus at Rothschild was on M&A
as well as equity capital market advisory for Indian
and international companies. He led the teams
that worked closely with the Government of India
on the 3G and BwA spectrum auctions, the first
e-auctions done in India and on the restructuring
of the Enron and GE owned Dabhol power
project, one of the largest and most complex
restructurings to date.
He did his MBA from xLRI, Jamshedpur in 1990.
Degree in Management from xLRI, Jamshedpur.
Qualifications
Member of the Institute of Chartered Accountants
in England and wales.
Member of
the
Accountants of India.
Institute of Chartered
462
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21 Name of Director
Directorships held
in other companies
(excluding
foreign companies)
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
• HDFC Life Insurance Company Limited
• HDFC Pension Management
Company Limited
• HDFC Investments Limited
S. Chand and Company Limited
Tata Power Renewable Energy Limited
•
•
• Walwhan Renewable Energy Limited
• HDFC Asset Management Company Limited
• National Investment and
Infrastructure Fund Limited
Committee
position held in other
companies
Audit Committee
Chairperson
• HDFC Investments Limited
Member
• HDFC Pension Management Company Limited
Stakeholders Relationship Committee
Member
• HDFC Life Insurance Company Limited
• Vagarai Windfarm Limited
•
Tata Projects Limited
• Chemplast Sanmar Limited
• Newage Power Company Private Limited
Audit Committee
Chairman
•
• Walwhan Renewable Energy Limited
• Vagarai Windfarm Limited
•
Tata Projects Limited
Member
•
• HDFC Asset Management Company Limited
• National Investment and Infrastructure
Tata Power Renewable Energy Limited
S Chand and Company Limited
Nomination and Remuneration Committee
Member
• HDFC Pension Management Company Limited
• HDFC Investments Limited
Limited
Stakeholders Relationship Committee
Member
• HDFC Asset Management Company Limited
Corporate Social Responsibility Committee
Member
• HDFC Life Insurance Company Limited
Risk Management Committee
Member
• HDFC Life Insurance Company Limited
• HDFC Pension Management Company Limited
Investment Committee
Member
• HDFC Life Insurance Company Limited
• HDFC Pension Management Company Limited
Policyholder Protection Committee
Member
• HDFC Life Insurance Company Limited
With Profits Committee
Member
• HDFC Life Insurance Company Limited
Capital Raising Committee
Member
• HDFC Life Insurance Company Limited
Nomination and Remuneration Committee
Chairman
• Vagarai Windfarm Limited
Member
•
• Walwhan Renewable Energy Limited
•
Tata Power Renewable Energy Limited
Tata Projects Limited
Tata Power Renewable Energy Limited
Corporate Social Responsibility Committee
Chairman
•
Member
• Walwhan Renewable Energy Limited
• National Investment and Infrastructure
Limited
Tata Projects Limited
•
Risk Management Committee
Member
• HDFC Asset Management Company Limited
Share Transfer Committee
Member
• HDFC Asset Management Company Limited
Share Allotment Committee
Member
• HDFC Asset Management Company Limited
Finance Committee
Member
• Walwhan Renewable Energy Limited
463
Notice#Futureready: Empowering customers for tomorrow’s world Name of Director
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
Terms and Conditions
of re-appointment
Ms. Vibha Padalkar
Sitting Fees and Commission as approved by the
Board from time to time.
8
Mr. Sanjay V. Bhandarkar
Sitting Fees and Commission as approved by the
Board from time to time.
7
Nil
Nil
16,262 equity shares (as a joint holder)
Nil
Re-appointment as an Independent Director, not
liable to retire by rotation, for a second term of 5
years, commencing with effect from 14th October
2021 upto 13th October 2026.
Re-appointment as an Independent Director, not
liable to retire by rotation, for a second term of 5
years, commencing with effect from 14th October
2021 upto 13th October 2026.
For other details such as relationship with other directors and KMP in respect of Mr. Natarajan Chandrasekaran, Ms. Anjali Bansal,
Ms. Vibha Padalkar and Mr. Sanjay V. Bhandarkar, please refer to the Report on Corporate Governance, which forms part of
this Annual Report.
464
NoticeThe Tata Power Company Limited Integrated Annual Report 2020-21 Ernst & Young Associates LLP
5th Floor, Block B-2
Nirlon Knowledge Park
Off. Western Express Highway
Goregaon (E), Mumbai – 400063, India
Tel: +91 22 6192 0000
Fax: +91 22 6192 3000
ey.com
INDEPENDENT ASSURANCE STATEMENT
The Board of Directors and Management
The Tata Power Company Limited
Mumbai, India
Ernst & Young Associates LLP (EY) was engaged by The Tata Power Company Limited (the ‘Company’) to
provide independent assurance of its Integrated Report (the ‘Report’) for the Financial Year 2020-21.
The sustainability data reported in the Report is based on Global Reporting Initiative (GRI) Sustainability
Reporting Standards 2016 (‘GRI Standards’) and its subsequent updates in 2018 and 2020; its content and
presentation is the sole responsibility of the management of the Company. EY’s responsibility, as agreed
with the management of the Company, is to provide independent assurance on the report content as
described in the scope of assurance. Our responsibility in performing our assurance activities is to the
management of the Company only and in accordance with the terms of reference agreed with the Company.
We do not therefore accept or assume any responsibility for any other purpose or to any other person or
organization. Any dependence that any such third party may place on the Report is entirely at its own risk.
The assurance report should not be taken as a basis for interpreting the Company’s overall performance,
except for the aspects mentioned in the scope below.
Scope of assurance
The scope of assurance covers the following aspects of the Report:
• Data and information related to the Company’s sustainability performance pertaining to the GRI
Standards listed below, for the period 1st April 2020 to 31st March 2021;
• The Company’s internal protocols, processes, and controls related to the collection and collation of
specified sustainability performance data;
• Remote Verification of sample data and related information through consultations with the Company’s
representatives at the following locations of operations:
1) Thermal Power Plant at Trombay, Maharashtra
2) Thermal Power plant at Mundra, Gujarat (Coastal Gujarat Power Limited)
3) Solar Power Plant at Neemuch, Madhya Pradesh
4) Wind Power Plant at Agaswadi, Maharashtra
5) Power Distribution at Delhi (Tata Power Delhi Distribution Limited)
• Review of data on a sample basis, at the above-mentioned locations, pertaining to the following
disclosures of the GRI Standards:
o Environmental Topics: Material (301-1), Energy (302-1, 302-3), Water & Effluent (303-3, 303-
4, 303-5), Emissions (305-1, 305-2, 305-3, 305-4 ,305-7), Waste (306-3, 306-4 & 306-5);
o Social Topics: Employment (401-1), Occupational health and safety (403-9), Training &
Education (404-1).
Limitations of our review
The assurance scope excludes:
• Operations of the Company other than those mentioned in the ‘Scope of Assurance’;
• Aspects of the Report and data/information other than those mentioned above;
• Data and information outside the defined reporting period i.e. 1st April 2020 to 31st March 2021;
•
The Company’s statements that describe expression of opinion, belief, aspiration, expectation, aim or
future intention provided by the Company;
• Review of the Company’s compliance with regulations, acts, guidelines with respect to various
regulatory agencies and other legal matters;
• Data and information on economic and financial performance of the Company
A member firm of Ernst & Young Global Limited
465
Page 1 of 2
Independent Assurance Statement #Futureready: Empowering customers for tomorrow’s world
Assurance criteria
The assurance engagement was planned and performed in accordance with the International Federation of
Accountants’ International Standard for Assurance Engagements Other than Audits or Reviews of Historical
Financial Information (ISAE 3000). Our evidence-gathering procedures were designed to obtain a ‘Limited’
level of assurance (as set out in ISAE 3000) on reporting principles, as well as conformance of sustainability
performance disclosures as per GRI Standards.
What we did to form our conclusions
In order to form our conclusions, we undertook the following key steps:
•
Interviews with select key personnel and the core team responsible for the preparation of the Report to
understand the Company’s sustainability vision, mechanism for management of sustainability issues and
engagement with key stakeholders;
Interactions with the key personnel at the Company’s locations of operations to understand and review
the current processes in place for capturing sustainability performance data;
•
• Data assurance through desk reviews covering the Company’s corporate office and other operational
locations as mentioned in the ‘Scope of Assurance’ above;
• Review of relevant documents and systems for gathering, analyzing and aggregating sustainability
performance data in the reporting period.
• Review of the Report for detecting, on a test basis, any major anomalies between the data/information
reported in the Report and the relevant source;
Our observations
The Company has demonstrated its commitment to sustainable development by reporting its performance
on various material topics for FY 2020-21. The Company has prepared Report having sustainability data in
accordance with GRI standards (Core). The Report includes a description of the Company’s stakeholder
engagement process, materiality assessment and relevant performance disclosures on the identified
material topics. Areas of further improvement wherever identified have been brought before the attention
of the management of the company. Specific observations have been provided in the management letter
which has been submitted to the company separately. These observations do not affect our conclusion
presented in this statement.
Our conclusion
On the basis of our review scope and methodology, nothing has come to our attention that causes us not to
believe that the data has been presented fairly, in material respects, in keeping with the GRI Standards and
the Company’s reporting principles and criteria.
Our assurance team and independence
Our assurance team, comprising of multidisciplinary professionals, has been drawn from our climate change
and sustainability network and undertakes similar engagements with a number of significant Indian and
international businesses. As an assurance provider, EY is required to comply with the independence
requirements set out in International Federation of Accountants (IFAC) Code of Ethics for Professional
Accountants1. EY’s independence policies and procedures ensure compliance with the Code.
for Ernst & Young Associates LLP,
Chaitanya Kalia
Partner
10.06.2021
Mumbai
1 International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants. This Code establishes ethical
requirements for professional accountants.
Page 2 of 2
A member firm of Ernst & Young Global Limited
466
Assurance CertificateThe Tata Power Company Limited Integrated Annual Report 2020-21
Glossary of Abbreviations
AA
ABCI
ABP
AC
ACC
AI
ALIG
AMP
APC
APM
Integrated Reporting
Affirmative Action
Association of Business Communicators of India
Annual Business Plan
Air Conditioner
CEO
CFO
CER
CERT
CG
Chief Executive Officer
Chief Financial Officer
Certified Emission Reduction
Computer Emergency Response Team
Corporate Governance
Apex Compliance Committee
CGPL
Coastal Gujarat Power Limited
Artificial Intelligence
A Literacy Initiative Group
Aspire-Motivate-Perform
Auxiliary Power Consumption
Asset Performance Management
APMC
Agricultural Produce Market Committee
ASO
AT&C
BA
B2C
BCC
Asset Supply Optimization
Aggregate Technical & Commercial Losses
Business Associates
Business-to-Customer
Behavioural Change Communication
BCDMP
Business Continuity and Disaster Management Plan
BCP
BEE
Business Continuity Plan
Bureau of Energy Efficiency
BESS
Battery Electric Storage Solutions
BFG
BIS
Blast Furnace Gas
Bureau of Indian Standards (formerly
Indian Standards Institution)
CII
CMC
CMS
COG
CO2
CPCB
CPO
CPSU
CRC
Confederation of Indian Industries
Compliance Monitoring Cell
Compliance Management System
Coke Oven Gas
Carbon Dioxide
Central Pollution Control Board
Charging Point Operators
Central Public Sector Undertaking
Customer Relation Centre
CRMC
Cluster Risk Management Committees
CS
CSA
CSAT
CSIR
CSR
CWP
Carbon Steel
Control Self-Assessment
Customer Satisfaction
Council of Scientific and Industrial Research
Corporate Social Responsibility
Cooling Water Pump
DISCOM
Distribution Company
D&IT
Digitalization & Information Technology
BITS Pilani Birla Institute of Technology and Sciences, Pilani
BKC
Bandra Kurla Complex
BLDC
Brushless Direct Current
BoT
BSE
BSI
CAGR
CCRA
CEIIC
Robot
BSE Limited
British Standards Institution
Compounded Annual Growth Rate
Central Control Room for Renewable Assets
Clean Energy International Incubation Centre
DM
DR
DSM
DT
DTC
EaaS
EAP
EES
ELC
Demineralisation
Demand Response
Demand Side Management
Distribution Transformer
Delhi Transport Corporation
Energy-as-a-Service
Employee Assistance Programme
Employee Engagement Surveys
Electrostatic Liquid Cleaner
467
Glossary of Abbreviations#Futureready: Empowering customers for tomorrow’s world ELCB
EPC
EPM
ERM
ESCO
ESG
ET
EV
EY
FC
Earth-leakage Circuit Breaker
Engineering, Procurement and Construction
Enterprise Process Model
Enterprise Risk Management
Energy Services
Environment Social Governance
Energy Transition
Electric Vehicle
Ernst & Young Associates LLP
Financial Controller
FENR
Far East Natural Resources LLC
Flue Gas Desulphurisation
Greenhouse Gas
Group Innovation Management System
Geographic Information System
Gigajoule
Global Reporting Initiative
Gigawatt
Higher Education Sponsorship Program
Hazard Identification and Risk Assessment
Head of Department
Human Resource
Internal Audit and Risk Management
Indian Accounting Standards
Integrated Child Development Services
Industrial Energy Limited
Internal Financial Control
Indian Institute of Management
Indian Institute of Technology
International Labour Organization
Integrated Management System
Indian rupee
Internet of Things
International Integrated Reporting Council
FGD
GHG
GIMS
GIS
GJ
GRI
GW
HESP
HIRA
HOD
HR
IARM
IAS
ICDS
IEL
IFC
IIM
IIT
ILO
IMS
INR
IoT
IIRC
468
IITB
IUCN
JMR
JSA
JV
KPI
KPO
kWh
LED
Indian Institute of Technology - Bombay
International Union for Conservation of Nature
Joint Meter Reading
Job Safety Assessment
Joint Venture
Key Performance Indicator
Knowledge Process Outsourcing
Kilowatt hour
Light Emitting Diode
LVDH
Low Vacuum Dehydration and Degasification
MD
Managing Director
MD&A
Management Discussion and Analysis
MERC
Maharashtra Electricity Regulatory Commission
MFI
Micro Financing Institutes
MNRE
Ministry of New and Renewable Energy
MoEFCC
Ministry of Environment,
Forest and Climate Change
MPL
MRF
MRV
MS
Maithon Power Limited
Material Recycle Facility
Measurement, Reporting and Verification
Mild Steel
MSME
Micro, Small and Medium Enterprises
MT
MU
MW
MWh
NDC
Metric Tonne
Million Unit
Megawatt
Megawatt hour
Nationally Determined Contributions
NELCO
NELCO Limited
NGO
NHAI
NOx
NTPC
NVG
Non-Governmental Organisation
National Highway Authority of India
Nitrogen Oxide
NTPC Limited
National Voluntary Guidelines
Glossary of AbbreviationsThe Tata Power Company Limited Integrated Annual Report 2020-21 ODF
OEMs
O&M
OJT
OPD
PACE
PDS
PID
PM
PPP
PV
RAT
RCM
R&D
RE
RF
RMC
RMC
RMCI
RO
Open Defecation Free
Original Equipment Manufacturers
SBO
SBTi
Strategic Business Objectives
Science Based Targets Initiatives
Operation and Maintenance
SCADA
Supervisory Controlled and Data Acquisition
On-the-Job Training
Out-Patient Department
Progressive Approach to
Competency Enhancement System
Public Distribution System
Proportional Integral Derivative controller
Particulate Matter
POSH
Prevention of Sexual Harassment
PPA
PPE
Power Purchase Agreement
Personal Protective Equipment
PPGCL
Prayagraj Power Generation Company Limited
Public Private Partnership
Solar Photovoltaic
Rapid Antigen Test
Reliability Centred Maintenance
Research and Development
Renewable Energy
Radio Frequency
Risk Management Committee
SC
Scheduled Caste
SDGs
United Nations Sustainable Development Goals
SEBI
SECI
SEMA
SHG
SHR
SIDBI
SOx
SLDP
SMEs
SOC
SOP
SPCB
SROI
ST
STU
TAT
Securities and Exchange Board of India
Solar Energy Corporation of India
Stakeholder Engagement and
Materiality Assessment
Self-Help Groups
Station Heat Rate
Small Industries Development Bank of India
Sulphur oxides
Senior Leaders' Development Program
Small and Medium Enterprises
Security Operations Centre
Standard Operating Practices
State Pollution Control Boards
Social Return on Investment
Scheduled Tribe
State Transmission Utility
Turn-Around-Time
Ready Mix Concrete
TCOC
Tata Code of Conduct
Risk Mitigation Completion Index
TCS
Tata Consultancy Services Limited
Reverse Osmosis
ROCE
Return on Capital Employed
RoE
Return on Equity
ROTA
Rotation (job planning)
RPL
RPO
Recognition for Prior Learning
Renewable Purchase Obligation
RSCM
Responsible Supply Chain Management
RT-PCR
Reverse Transcription Polymerase Chain Reaction
SAP-EHSM SAP Environment Health and Safety Management
SASB
Sustainability Accounting Standards Board
TCSiON
Tata Consultancy Services (TCS)- Mobile &
Web Education platform
T&D
TP
Transmission & Distribution
Tata Power
TERPL
Trust Energy Resources Pte Limited
TMTC
Tata Management Training Centre
TPADL
TP Ajmer Distribution Limited
TPCDT
Tata Power Community Development Trust
TPCL
The Tata Power Company Limited
TPCODL
TP Central Odisha Distribution Limited
469
Glossary of Abbreviations#Futureready: Empowering customers for tomorrow’s world TPDDL
Tata Power Delhi Distribution Limited
UF
Ultra Filtration
TPGEL
Tata Power Green Energy Limited
TPREL
Tata Power Renewable Energy Limited
TPRMG/
TPRML
TP Renewable Microgrid Limited
UNFCCC
United Nations Framework Convention
on Climate Change
UN
United Nations
UNGC
United Nations Global Compact Principles
TPSDI
Tata Power Skill Development Institute
WBCSD
TPSODL
TP Southern Odisha Distribution Limited
TPSSL
Tata Power Solar Systems Limited
TPTCL
Tata Power Trading Company Limited
TPWODL
TP Western Odisha Distribution Limited
UFT
United Functional Testing tool
WILP
WREL
Y-o-Y
ZLD
World Business Council for
Sustainable Development
Work Integrated Learning Programme
Walwhan Renewable Energy Limited
Year on Year
Zero Liquid Discharge
470
Glossary of AbbreviationsThe Tata Power Company Limited Integrated Annual Report 2020-21 Leading business
transformation
responsibly
Disclaimer: Some of the images showcased in the report were taken pre-COVID.
THE TATA POWER COMPANY LIMITED
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
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