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You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
Tata Power Company Ltd(Industry :   Power Generation And Supply)
 
BSE Code:500400NSE Symbol: TATAPOWERP/E  (TTM): 17.16
ISIN Demat:INE245A01021Div Yield %:2.2EPS   (TTM) :3.45
Book Value (Rs):57.3300836Market Cap (RsCr):16011.41Face Value (Rs) :1
  Change Company 






Notes forming part of the Financial Statements









1. Background:

The Company, pioneered the generation of electricity in India nine decades ago. Prior to 1st April, 2000 the Tata Electric Companies comprised of the following three Companies -

• The Tata Hydro-Electric Power Supply Company Limited, established in 1910 (Tata Hydro).

• The Andhra Valley Power Supply Company Limited, established in 1916 (Andhra Valley).

• The Tata Power Company Limited, established in 1919 (Tata Power).

With effect from 1st April, 2000, Andhra Valley and Tata Hydro merged into Tata Power to result in one large unified entity. The Company has an installed generation capacity of 3075 MW in India and a presence in all the segments of the power sector viz. Fuel and Logistics, Generation (thermal, hydro, solar and wind), Transmission and Distribution.

2.1. Significant Accounting Policies:

(a) Basis for Preparation of Accounts:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

(c) Cash and Cash Equivalents (for purposes of Cash Flow Statement):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(d) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(e) Tangible/Intangible Fixed Assets:

(i) Fixed assets are carried at cost less accumulated depreciation/amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets upto the date the asset is ready for its intended use. The Company has adopted the provisions of para 46A of AS-11 "The Effects of Changes in Foreign Exchange Rates", accordingly exchange differences arising on restatement/settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

(ii) Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

(iii) Capital Work-in-Progress:

Projects under which tangible fixed assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing costs.

(iv) Intangible Assets under Development:

Expenditure on Research and Development [Refer Note 2.1 (l)] eligible for capitalisation are carried as intangible assets under development where such assets are not yet ready for their intended use.

(Rs) Impairment:

The carrying values of assets/cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

(g) Depreciation/Amortisation:

Depreciation in respect of its electricity business is provided at the rates as well as methodology notified by the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 (CERC) w.e.f. 1st April, 2009 and at the rates as per the Power Purchase Agreements (PPA) for capacities covered under PPAs, wherever higher than those notified by CERC.

In respect of assets relating to other businesses of the Company, depreciation has been provided for on written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

Intangible assets are amortised over the useful economic life of the assets or 5 years, whichever is lower.

Leasehold Land is amortised over the period of the lease, ranging from 20 years to 95 years.

(h) Leases:

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment.

Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight line basis.

(i) Investments:

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments determined on an individual basis. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

(j) Inventories:

Inventories of stores, spare parts, fuel and loose tools are valued at lower of cost (on weighted average basis) and net realisable value. Work-in-progress and property under development are valued at lower of cost and net realisable value. Cost includes cost of land, material, labour and other appropriate overheads.

(k) Taxes on Income:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty supported by convincing evidences that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

Current and Deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

(l) Research and Development Expenses:

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for tangible fixed assets and intangible assets.

(m) Warranty Expenses:

Anticipated product warranty costs for the period of warranty are provided for in the year of sale.

(n) Foreign Exchange Transactions:

Initial recognition:

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date:

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences:

Exchange differences arising on settlement/restatement of short-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognised as income or expense in the Statement of Profit and Loss. The exchange differences on restatement/settlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in a "Foreign exchange translation reserve" until disposal/recovery of the net investment.

The exchange differences arising on revaluation of long-term foreign currency monetary items are capitalised as part of the depreciable fixed assets to which the monetary items relates and depreciated over the remaining balance life of such assets and in other cases amortised over the balance period of such long-term foreign currency monetary items. The unamortised balance is carried in the Balance Sheet as "Foreign currency monetary item translation account" net of the tax effect thereon.

Accounting of forward contracts:

Premium/discount on forward exchange contracts, which are not intended for trading or speculation purposes, are amortised over the period of the contracts if such contracts relate to monetary items as at the Balance Sheet date. Refer Note 2.1(o) for accounting for forward exchange contracts relating to firm commitments and highly probable forecast transactions.

(o) Derivative Contracts:

The Company enters into derivative contracts in the nature of foreign currency swaps, currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions. Derivative contracts which are closely linked to the existing assets and liabilities are accounted as per the policy stated for foreign currency transactions and translations. All other derivative contracts are mark-to-market and losses are recognised in the Statement of Profit and Loss. Gains arising on the same are not recognised, until realised, on grounds of prudence.

(p) Employee Benefits:

Employee benefits consist of Provident Fund, Pension, Superannuation Fund, Gratuity Scheme, Compensated Absences, Long Service Awards, Post Retirement Benefits and Directors Retirement Obligations.

Defined contribution plans:

The Company's contributions paid/payable during the year to Provident Fund, Superannuation Fund and Employee State Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made.

Defined benefit plans:

For defined benefit plans in the form of gratuity fund, post retirement benefits and Director's pension scheme, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur. Long-term employee benefits:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

(q) Revenue Recognition:

(i) Revenue from Power Supply and Transmission Charges are accounted for on the basis of billings to consumers/state transmission utility and includes unbilled revenues accrued upto the end of the accounting year.

(ii) The Company determines surplus/deficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the year in respect of its Mumbai and Jojobera regulated operations (i.e. Generation, Transmission and Distribution) based on the principles laid down under the respective Tariff Regulations as notified by Maharashtra Electricity Regulatory Commission (MERC) and Jharkhand State Electricity Regulatory Commission (JSERC) on the basis of Tariff Orders issued by them. In respect of such surplus/deficit, appropriate adjustments as stipulated under the regulations have been made during the year. Further, any adjustments that may arise on annual performance review by MERC and JSERC under the aforesaid Tariff Regulations will be made after the completion of such review.

(iii) Delayed payment charges and interest on delayed payments are recognised, on grounds of prudence, as and when recovered/confirmed by consumers.

(iv) Interest income and guarantee commission is accounted on an accrual basis. Dividend income is accounted for when the right to receive income is established.

(v) Amounts received from consumers towards capital/service line contributions are accounted as a liability and are subsequently recognised as income over the life of the fixed assets.

(vi) Revenue from infrastructure management services is recognised as income as and when services are rendered and no significant uncertainty to the collectability exists.

(vii) Income on contracts in respect of Strategic Engineering Business and Project Management Services are accounted on "Percentage of Completion" basis measured by the proportion that cost incurred upto the reporting date bear to the estimated total cost of the contract.

(r) Issue Expenses and Premium on Redemption of Bonds and Debentures:

(i) Expenses incurred in connection with the issue of Euro Notes, Foreign Currency Convertible Bonds, Unsecured Perpetual Securities, Global Depository Receipts and Debentures are adjusted against Securities Premium Account in the year of issue.

(ii) Discount on issue of Euro Notes is amortised over the tenure of the Notes.

(iii) Premium on Redemption of Bonds/Debentures, net of tax impact, are adjusted against the Securities Premium Account in the year of issue.

(s) Borrowing Costs:

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

(t) Segment Reporting:

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/(loss) amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market/fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under "unallocable revenue/expenses/assets/liabilities"

(u) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present values and are determined based on the best estimate required to settle the obligations at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements and are disclosed in the Notes. A Contingent asset is neither recognised nor disclosed in the financial statements.

(v) Earnings Per Share:

Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

2.2. The Company has been providing depreciation on assets at rates and methodology relating to the electricity business in accordance with the Central Government notification under the Electricity (Supply) Act, 1948 (repealed).

Vide its notification dated 31st May, 2011, the Ministry of Corporate Affairs (MCA) has clarified that companies engaged in the generation and supply of electricity can provide for depreciation at rates and methodology notified by Central Electricity Regulatory Commission (CERC). The CERC, under the provisions of The Electricity Act, 2003, notified the rates and methodology effective 1st April, 2009, under the Terms and Conditions of Tariff Regulations, 2009. These rates would be applicable for purposes of tariff determination and accounting in terms of the provisions of National Tariff Policy notified by the Government of India.

Management had sought clarifications and guidance from the MCA on the applicability of the CERC rates as the Company has both regulated and non-regulated generating capacity.

The Company has, during the year ended 31st March, 2013, based on a legal opinion, provided for depreciation in respect of its electricity business following the rates and methodology notified by the CERC w.e.f. 1st April, 2009 and at the rates as per the Power Purchase Agreements (PPA) for capacities covered under PPAs, if higher than those notified by CERC. Accordingly, depreciation of Rs 219.80 crore for the years 2009-10 to 2011-12 has been written back during the year ended 31st March, 2013. Further the depreciation charge for the year ended 31st March, 2013 is lower by Rs 48.02 crore. As a result, the current tax for the year ended 31st March, 2013, is higher by Rs 53.58 crore and the deferred tax charge for the year ended 31st March, 2013 is higher by Rs 204.28 crore.

2.3. (a) During the previous year, in line with the Notification dated 29th December, 2011 issued by the Ministry of Corporate

Affairs (MCA), the Company had selected the option given in paragraph 46A of the Accounting Standard-11 (AS-11) - "The Effects of Changes in Foreign Exchange Rates". Accordingly, the depreciated/amortised portion of net foreign exchange (gain)/loss on long-term foreign currency monetary items for the year ended 31st March, 2013 is Rs 83.84 crore (31st March, 2012 - f39.01 crore). The unamortised portion carried forward as at 31st March, 2013 is Rs 253.86 crore (31st March, 2012 - Rs 213.56 crore).

(b) During the previous year, the Company had changed its accounting policy pertaining to accounting for expenditure incurred on purchase/implemenation of application software which hitherto was being charged off in the year of accrual and is now being capitalised and amortised over the useful economic life or 5 years whichever is lower. This results in a more appropriate presentation. As a result of this change, the depreciation and amortisation for the previous year was lower by Rs 10.07 crore and the profit before tax was higher by Rs 10.07 crore.

3 Shareholders' Funds - Share Capital

As at 31st March, 2013

As at 31st March, 2012

Authorised Number Rs crore

Number

Rs crore
Equity Shares of Rs 1/- each 300,00,00,000 300.00

300,00,00,000

300.00

Cumulative Redeemable Preference Shares of Rs 100/- each 2,29,00,000 229.00

2,29,00,000

229.00

529.00

529.00

Issued
Equity Shares (including 23,03,080 shares not allotted but held in abeyance, 44,02,700 shares cancelled pursuant to a Court Order, 4,80,40,400 shares of the Company held by the erstwhile The Andhra Valley Power Supply Company Limited cancelled pursuant to the Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay) 242,94,70,840 242.95

242,94,70,840

242.95

Subscribed and Paid-up
Equity Shares fully Paid-up (excluding 23,03,080 shares not allotted but held in abeyance, 44,02,700 shares cancelled pursuant to a Court Order and 4,80,40,400 shares of the Company held by the erstwhile The Andhra Valley Power Supply Company Limited cancelled pursuant to the Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay) 237,30,72,360 237.31

237,30,72,360

237.31

Less: Calls in arrears [including Rs 001 crore (31st March, 2012 - Rs 001 crore) in respect of the erstwhile The Andhra Valley Power Supply Company Limited and the erstwhile The Tata Hydro-Electric Power Supply Company Limited] 0.04

0.04

237.27

237.27

Add: Equity Shares forfeited - Amount paid 16,52,300 0.06

16,52,300

0.06

Total Issued, Subscribed and fully Paid-up Share Capital 237.33

237.33

(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

31st March, 2013

31st March, 2012

Equity Shares Number Rs crore

Number

Rs crore
At the beginning and at the end of the year......................................... 237,47,24,660 237.33

237,47,24,660

237.33

(b) Terms/rights attached to Equity Shares

The Company has issued only one class of Equity Shares having a Par Value of Rs 1/- per share. Each holder of Equity Shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2013, the amount of per share dividend recognised as distribution to equity shareholders was Rs 1.15 per share of Face Value of Rs 1/- each (31st March, 2012 - Rs1.25 per share of Face Value of 1/- each).

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.

(c) Details of Shareholders holding more than 5% shares in the Company

31st March, 2013

31st March, 2012

Equity Shares of Rs 1 each fully paid Number % holding

Number

% holding

Tata Sons Limited 70,75,11,570 29.81

70,75,11,570

29.81

Life Insurance Corporation of India 30,60,52,963 12.90

31,18,23,233

13.14

(d) In an earlier year, the Company issued 3,000 1.75% Foreign Currency Convertible Bonds (FCCB) with Face Value of USD 100,000 each aggregating to USD 300 million. The bondholders have an option to convert these Bonds into Equity Shares, at an initial conversion price of Rs 145.6125 per share at a fixed rate of exchange on conversion of Rs 46.81 = USD 1.00, at any time on and after 31st December, 2009, upto 11th November, 2014. The conversion price is subject to adjustment in certain circumstances. The FCCB may be redeemed, in whole but not in part, at the option of the Company at any time on or after 20th November, 2011 subject to satisfaction of certain conditions. Unless previously converted, redeemed or repurchased and cancelled, the FCCB fall due for redemption on 21st November, 2014 at 109.47 percent of their principal amount together with accrued and unpaid interest.

4. Shareholders' Funds - Reserves and Surplus

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Special Reserve
Opening Balance Nil

13.00

Less: Amount transferred to Surplus in Statement of Profit and Loss as no longer required Nil

13.00

Closing Balance Nil

Nil

Capital Reserve 61.66

61.66

Capital Redemption Reserve 1.60

1.60

Securities Premium Account
Opening Balance 3,662.04

3,679.77

Less: Issue Expenses pertaining to Unsecured Perpetual Securities Nil

17.73

Issue Expenses pertaining to Debentures 18.63

Nil

Closing Balance 3,643.41

3,662.04

Debenture Redemption Reserve
Opening Balance 557.74

246.95

Add: Amount transferred from Surplus in Statement of Profit and Loss 157.27

310.79

Closing Balance 715.01

557.74

Foreign Exchange Translation Reserves (Net)
Opening Balance (67.36)

(91.39)

Add: Effect of foreign exchange rate variations during the year [including deferred tax
Rs 4521 crore (31st March, 2012 - T Nil)] (72.01)

Nil

Less: Effect of foreign exchange rate variations during the year [net of deferred tax Rs Nil
(31st March, 2012 - Rs 1151 crore)] Nil

24.03

Closing Balance (139.37)

(67.36)

Foreign Currency Monetary Item Translation Account
Opening Balance (136.41)

Nil

Add: Effect of foreign exchange rate variations during the year (85.49)

(170.82)

Less: Amortised during the year 74.41

34.41

Closing Balance (147.49)

(136.41)

General Reserve
Opening Balance 3,490.17

3,240.17

Add: Amount transferred from Surplus in Statement of Profit and Loss 102.47

250.00

Closing Balance 3,592.64

3,490.17

Surplus in Statement of Profit and Loss
Opening Balance 2,819.38

2,649.65

Add: Profit for the year 1,024.69

1,169.73

Transfer from Contingencies Reserve Fund (Net) Nil

6.00

Transfer from Special Reserve (Net) Nil

13.00

Less: Distribution on Unsecured Perpetual Securities [net of tax Rs Nil (31st March, 2012 - Rs 2842 crore)] 171.20

113.61

Income-tax reversal on distribution on Unsecured Perpetual Securities in respect of earlier year 28.42

Nil

Proposed Dividend [amount Rs 115 per share (31st March, 2012 - Rs125 per share)] 273.17

296.92

Additional Income-tax on Dividend 28.54

39.75

Additional Income-tax on Dividend in respect of earlier years Nil

7.93

Transfer to Contingencies Reserve Fund 7.00

Nil

Transfer to Debenture Redemption Reserve 157.27

310.79

Transfer to General Reserve 102.47 256.62

250.00 169.73

Closing Balance 3,076.00

2,819.38

Total 10,803.46

10,388.82

5 Unsecured Perpetual Securities

As at 31st March, 2013

As at 31st March, 2012

Rs crore

Rs crore

Opening Balance 1,500.00

Nil

Add: Issued during the year Nil

1,500.00

Closing Balance 1,500.00

1,500.00

During the previous year, the Company raised Rs 1,500 crore through issue of Unsecured Perpetual Securities (the "Securities"). These Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. The distribution on the said Securities, which may be deferred at the option of the Company under certain circumstances, is set at 11.40% p.a., with a step up provision if the Securities are called after 10 years. As these securities are perpetual in nature and ranked senior only to the Share Capital of the Company, these are considered to be in the nature of equity instruments and are not classified as "Debt" and the distribution on such securities is not considered under "Interest".

Unless all arrears of distribution are fully paid to these Securities, the Company shall not declare or pay any dividends or distributions or make any other payment on, or will procure that no dividend, distribution or other payment is made on any securities of the Company ranking pari passu with, or junior to, the securities, or redeem, reduce, cancel, buy-back or acquire for any consideration any security of the Company ranking pari passu with, or junior to, the Securities.

6. Statutory Consumer Reserves

[Under the repealed Electricity (Supply) Act,1948 and Tariff Regulations]

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Tariffs and Dividends Control Reserve 22.43

22.43

Contingencies Reserve Fund
Opening Balance 60.00

66.00

Add: Amount transferred from Surplus in Statement of Profit and Loss 7.00

Nil

Less: Amount transferred to Surplus in Statement of Profit and Loss as no longer required Nil

6.00

Closing Balance 67.00

60.00

Development Reserve 5.29

5.29

Deferred Taxation Liability Fund 279.76

279.76

Investment Allowance Reserve 121.18

121.18

Debt Redemption Reserve 51.94

51.94

Debenture Redemption Reserve 56.63

56.63

Total 604.23

597.23

7. Long-term Borrowings

As at 31st March, 2013

As at 31st March, 2012

Non-current Current

Non-current

Current

Rs crore Rs crore Rs crore Rs crore
Secured
Redeemable Non-Convertible Debentures
(a) 915% Series 2025 202.00 16.00

218.00

16.00

(b) 915% Series 2025 275.00 25.00

300.00

25.00

(c) 940% Series 2023 210.00 Nil

Nil

Nil

(d) 1010% Series 2019 500.00 Nil

500.00

Nil

(e) 1040% Series 2019 500.00 Nil

500.00

Nil

(Rs) 710% Series 2015 420.00 180.00

600.00

Nil

2,107.00 221.00

2,118.00

41.00

Term Loans
From Banks
(g) HDFC Bank 480.00 30.00

510.00

30.00

(h) ICICI Bank Nil Nil

72.50

31.00

(i) IDBI Bank 587.50 35.00

622.50

35.00

0) Kotak Mahindra Bank 41.50 31.00

Nil

Nil

1,109.00 96.00

1,205.00

96.00

From Others
(k) Asian Development Bank 82.36 12.67

95.03

39.01

(l) Industrial Renewable Energy Development
Agency 406.91 35.13

428.29

35.13

(m) Infrastructure Development Finance Company
Limited 1,196.40 60.10

1,076.40

50.10

(n) Export Import Bank of India 4.32 6.07

7.88

5.72

1,689.99 113.97

1,607.60

129.96

Finance Lease Obligations
(o) Lease finance - from others Nil 0.04

Nil

0.14

A 4,905.99 431.01

4,930.60

267.10

Unsecured
Redeemable Non-Convertible Debentures
(p) 1075% Series 2073 1,500.00 Nil

Nil

Nil

Bonds
(q) 850% Euro Notes (2017) 323.93 Nil

304.87

Nil

(r) 175% Foreign Currency Convertible Bonds (2014) [Refer Note 3 (d)] 1,631.70 Nil

1,535.70

Nil

1,955.63 Nil

1,840.57

Nil

Term Loans
From Banks
(s) ICICI Bank 14.50 5.80

20.30

5.80

Deferred Payment Liabilities
(t) Sales Tax Deferral 76.45 7.13

83.58

Nil

B 3,546.58 12.93

1,944.45

5.80

Total(A + B) 8,452.57 443.94

6,875.05

272.90

Security

(i) The Debentures mentioned in (a) have been secured by a charge on movable properties and assets of the Company at Agaswadi and Visapur in Satara District of Maharashtra and Poolavadi in Tirupur District of Tamil Nadu.

(ii) The Debentures mentioned in (b) have been secured by a pari passu charge on the assets of the wind farms situated at Samana and Gadag in Gujarat and Karnataka.

(iii) The Debentures mentioned in (c) have been secured by a charge on the land situated at Village Takve Khurd (Maharashtra).

(iv) The Debentures mentioned in (d) and (e) have been secured by a pari passu charge on land in Village Takve Khurd (Maharashtra) and moveable and immovable properties in and outside Maharashtra, except assets of windmill projects, present and future.

(v) The Debentures mentioned in (Rs) have been secured by land in Village Takve Khurd (Maharashtra), moveable and immovable properties in and outside Maharashtra, as also all transmission stations/lines, receiving stations and sub-stations in Maharashtra, except assets of windmill projects, present and future.

(vi) The loans from HDFC Bank, ICICI Bank and IDBI Bank, mentioned in (g), (h) and (i) respectively have been secured by a pari passu charge on all moveable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both present and future) including moveable machinery, machinery spares, tools and accessories.

(vii) The loan from Kotak Mahindra Bank mentioned in (j) has been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of wind projects, both present and future, situated at Khandke, Brahmanvel and Supa in Maharashtra) including moveable machinery, machinery spares, tools and accessories.

(viii) The loans from Asian Development Bank and Industrial Renewable Energy Development Agency mentioned in (k) and (l) respectively have been secured by a first charge on the tangible moveable properties, plant & machinery and immovable properties situated at Khandke, Brahmanvel and Sadawaghapur in Maharashtra.

(ix) The loan from Infrastructure Development Finance Company Limited mentioned in (m) have been secured by a charge on the moveable assets except assets of all windmill projects present and future more particularly situated in Supa, Khandke, Brahmanvel, Sadawaghapur, Gadag and Samana in Maharashtra, Karnataka and Gujarat.

(x) The loan from Export Import Bank of India mentioned in (n) has been secured by receivables (present and future), book debts and outstanding monies.

(xi) The loan mentioned in (o) has been secured by hypothecation of specific assets (vehicles) taken on finance lease.

Redemption

(i) The Debentures mentioned in (a) are redeemable at par in fourteen annual installments of Rs 16 crore and one installment of Rs 26 crore commencing from 18th September, 2011.

(ii) The Debentures mentioned in (b) are redeemable at par in ten annual installments of Rs 25 crore each and five annual installments of Rs 20 crore each commencing from 23rd July, 2011.

(iii) The Debentures mentioned in (c) are redeemable at par at the end of 10 years from the respective date of allotment viz., 28th December, 2022.

(iv) The Debentures mentioned in (d) and (e) are redeemable at par at the end of 10 years from the respective dates of allotment viz. 25th April, 2018 and 20th June, 2018.

(v) The Debentures mentioned in (Rs) are redeemable at premium in three installments amounting to Rs 180 crore, Rs 240 crore and Rs 180 crore at the end of 9th, 10th and 11th year respectively from 18th October, 2004.

(vi) The loan from HDFC Bank mentioned in (g) is redeemable at par in 36 quarterly installments of Rs 7.50 crore each commencing from 1st June, 2010 and 4 quarterly installments of Rs 82.50 crore each commencing from 30th June, 2020.

(vii) The loan from IDBI Bank of Rs 300 crore mentioned in (i) is redeemable at par in 46 quarterly installments of Rs 3.75 crore each commencing from 1st October, 2010 and one installment of Rs 127.50 crore on 1st April, 2022 and,

The second loan from IDBI Bank of Rs 400 crore mentioned in (i) is redeemable at par in 36 quarterly installments of Rs 5 crore commencing from 1st April, 2011 and one installment of Rs 220 crore on 1st April, 2020.

(viii) The loan from Kotak Mahindra Bank mentioned in (j) is redeemable at par in 8 quarterly installments of Rs 7.75 crore each commencing from 31st October, 2012, 4 quarterly installments of Rs 5 crore each commencing from 31st October, 2014 and 4 quarterly installments of Rs 1.50 crore each commencing from 31st October, 2015.

(ix) The loan from Asian Development Bank mentioned in (k) is redeemable at par in 26 semi-annual installments commencing from 15th December, 2007.

(x) The loan from Industrial Renewable Energy Development Agency of Rs 95 crore mentioned in (l) is redeemable at par in 26 semi-annual installments commencing from 15th December, 2007 and,

The second loan from Industrial Renewable Energy Development Agency of Rs 450 crore mentioned in (l) is redeemable at par in 24 semi-annual installments of Rs 14.63 crore each commencing from 30th June, 2012 and two semi-annual installments of Rs 49.50 crore each commencing from 30th June, 2024.

(xi) The loan of Rs 250 crore from Infrastructure Development Finance Company Limited mentioned in (m) was repaid on 15th November, 2012. The second loan from Infrasturcture Development Finance Company Limited of Rs 450 crore mentioned in (m) is redeemable at par in 35 quarterly installments of Rs 5.65 crore each commencing from 1st October, 2009 and one installment of Rs 252.25 crore commencing from 15th July, 2018 and,

The third loan from Infrastructure Development Finance Company Limited of Rs 150 crore mentioned in (m) is redeemable at par in 36 quarterly installments of Rs 1.88 crore commencing from 15th May, 2010 and 4 quarterly installments of Rs 20.63 crore commencing from 15th May, 2019 and,

The fourth loan from Infrastructure Development Finance Company Limited of Rs 800 crore mentioned in (m) is redeemable at par in 40 quarterly installments of Rs 15 crore commencing from 15th October, 2013 and 4 quarterly installments of Rs 50 crore from 15th October, 2023.

(xii) The loan from Export Import Bank of India mentioned in (n) is redeemable at par in 19 semi - annual installments of USD 372,200 each commencing from 29th September, 2006.

(xiii) The 10.75% Redeemable and Non-convertible Debentures mentioned in (p) are redeemable at par at the end of 60 years from the respective date of allotment viz., 21st August, 2072. The Company has the call option to redeem the same at the end of 10 years from 21st August, 2022 and at the end of every year thereafter.

(xiv) 8.50% Euro Notes mentioned in (q) is repayable fully on 19th August, 2017.

(xv) The loan from ICICI Bank mentioned in (s) is redeemable at par in 10 semi-annual installments commencing from 1st April, 2012.

(xvi) Sales Tax Deferral mentioned in (t) is repayable in quarterly 150 installments commencing from April, 2013 and repayable in full by 2022.

8. Deferred Tax Liability (Net)

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Deferred Tax Liability on account of:
Relating to Fixed Assets 1,142.78

800.06

Less: Balance in Deferred Tax Liability Fund 279.76

279.76

863.02

520.30

Add: Exchange Losses on Loans to Subsidiaries 27.58

Nil

Deferred Tax Liability 890.60

520.30

Deferred Tax Asset on account of:
Provision for Employee Benefits 49.11

57.81

Provision for Tax, Duty, Cess, Fee etc 10.68

11.94

Provision for Doubtful Debts and Advances 18.50

9.37

Exchange Losses on Loans to Subsidiaries Nil

17.65

Others 6.82

4.51

Deferred Tax Asset 85.11

101.28

Net Deferred Tax Liability 805.49

419.02

9 Other Long-term Liabilities

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Trade Payables 26.50

24.08

Others
Payables on Purchase of Fixed Assets 14.46

10.77

Consumers' Benefit Account 21.94

21.94

Security Deposits from Customers 36.91

36.91

Total 99.81

93.70

10. Provisions

Long-term

Short-term

As at 31st March, 2013

As at 31st March, 2012

As at 31st March, 2013

As at 31st March, 2012

Rs crore

Rs crore

Rs crore

Rscrore

Provision for Employee Benefits
Compensated absences 64.42

65.19

6.82

6.42

Gratuity 36.37

78.56

36.90

28.08

Pension Obligation 15.07

14.26

1.98

1.88

Long service awards 13.47

11.33

1.10

1.21

Other Employee Benefits 28.95

25.26

3.18

3.07

Provision - Others
Provision for Warranties 6.19

5.79

13.83

7.11

Provision for Premium on Redemption of Foreign Currency Convertible Bonds 154.52

145.43

Nil

Nil

Provision for Premium on Redemption of Debentures 94.20

134.70

40.50

Nil

Provision for Income-tax (Net) Nil

Nil

29.79

Nil

Provision for Wealth Tax Nil

Nil

1.80

1.70

Provision for Proposed Dividend Nil

Nil

273.17

296.92

Provision for Additional Income-tax on Dividend Nil

Nil

28.54

39.75

Total 413.19

480.52

437.61

386.14

11. Short-term Borrowings

As at 31st March, 2013

As at 31st March, 2012

Rs crore

Rs crore

Secured
From Banks
(a) Buyer's Line of Credit 637.03

20.67

Unsecured
From Banks
(b) Buyer's Line of Credit 530.05

732.32

From Others
(c) Inter-corporate Deposit 5.07

5.07

535.12

737.39

Total 1,172.15

758.06

Security

Buyer's Line of Credit is secured against first pari passu charges on all current assets including goods, book debts, receivables and other moveable Current Assets of the Company.

12. Other Current Liabilities

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
(a) Current Maturities of Long-term Debt (Refer Note 7) 443.94

272.90

(b) Interest accrued but not due on Borrowings 270.51

197.59

(c) Investor Education and Protection Fund shall be credited by the following amounts namely: **
Unpaid Dividend 12.40

11.43

Unpaid Matured Deposits 0.03

0.03

Unpaid Interest Nil

Nil

Unpaid Matured Debentures 0.09

0.09

(d) Book Overdraft 34.42

10.27

(e) Other Payables
Statutory Liabilities 119.82

106.02

Regulatory Liabilities 314.36

188.36

Payables on Purchase of Fixed Assets 238.63

221.77

Advance and Progress payments received from Customers / Public
Utilities 373.64

340.08

Security Deposits from Consumers 180.85

146.65

Security Deposits from Customers 4.30

67.73

Tender Deposits from Vendors 2.70

2.52

Other Liabilities 31.95

20.81

Total 2,027.64

1,586.25

** Includes amounts outstanding aggregating Rs 0.78 crore (31st March, 2012 - 7 0.74 crore) for more than seven years pending legal cases.

13. Fixed Assets

GROSS BLOCK

DEPRECIATION

NET BLOCK
As at 1st April, 2012 Additions Deductions As at 31st March, 2013 As at 1st April, 2012 For the year Adjustments @@ Deductions As at 31st March, 2013 As at 31st March, 2013
(a) TANGIBLE ASSETS
(j) Owned assets
Freehold Land 114.93 6.82 Nil 121.75 Nil Nil Nil Nil Nil 121.75

50.78

64.15

Nil

114.93

N/7

Nil

N/7

Nil

Nil

114.93

Hydraulic Works 497.17 34.35 Nil 531.52 165.97 18.62 21.25 Nil 205.84 325.68

478.86

18.31

Nil

497.17

I5/.63

14.34

Nil

Nil

165.97

331.20

Buildings - Others 745.45 95.62 0.01 841.06 270.32 33.35 (3.33)

*

300.34 540.72

670.93

74.52

Nil

745.45

238.52

31.80

Nil

Nil

270.32

475.13
Buildings - Plant 129.70 12.32 0.04 141.98 <a> 43.38 5.44 0.32 0.03 49.11 92.87
120.19 9.55

0.04

129.70 @

39.42

3.97

Nil

0.01

43.38

86.32

Coal Jetty 106.10 Nil Nil 106.10 17.15 5.60 (0.36) Nil 22.39 83.71
106.10

Nil

Nil

106.10

12.11

5.04

Nil

Nil

17.15

88.95
Railway Sidings, Roads, Crossings, etc 49.75 0.49 Nil 50.24 13.07 1.95 2.38 Nil 17.40 32.84

47.85

1.90

Nil

49.75

11.63

1.44

Nil

Nil

Rs3.07 36.68
Plant and Machinery 8,985.19 463.69 # 9.46 9,439.42 4,129.24 431.58# (200.20) 8.30 4,352.32 5,087.10

7,628.33

1,360.87

4.01

8,985.19

3,690.72

442.06

N/7

3.54

4,129.24

4J55.95

Transmission Lines, Cable Network, etc 1,421.54 277.87 Nil 1,699.41 565.01 67.67 (24.35) Nil 608.33 1,091.08
1,156.93

264.61

Nil

1,421.54

510.98

54.03

Nil

Nil

565.0/

856.53

Furniture and Fixtures 47.40 8.59 0.09 55.90 24.80 3.26 (5.27) 0.07 22.72 33.18

39.55

8.28

0.43

47.40

21.22 3.94

Nil

0.36

24.80

22.60

Office Equipment 18.97 4.32 0.31 22.98 8.56 1.65 (1.71) 0.21 8.29 14.69
16.81

2.39

0.23

18.97 6.97 1.76

Nil

0.17 8.56 10.41
Motor Vehicles, Launches, Barges, etc 49.01 7.96 8.13 48.84 40.86 2.97 (8.53) 7.26 28.04 20.80
51.05 0.76

2.80

49.01

38.70

4.66

Nil

2.50 40.86 8.15
Helicopters 36.73 0.13 Nil 36.86 11.34 3.19 Nil Nil 14.53 22.33

36.73

Nil

Nil

36.73

8.08

3.26

Nil

Nil

11.34

25.39

(ii) Assets taken on lease
Leasehold Land 248.00 39.30 Nil 287.30 6.15 3.60 Nil Nil 9.75 277.55

112.31

135.69

Nil

248.00

3.70

2.45 N/7

Nil

6.15

241.85

Motor Vehicles under Finance Lease 1.29 Nil 0.06 1.23 1.17 Nil Nil 0.05 1.12 0.11
1.29

Nil

Nil

1.29

1.10

0.07

Nil

Nil

1.17 0.12
TOTAL TANGIBLE ASSETS 12,451.23 951.46 18.10 13,384.59 5,297.02 578.88 (219.80) 15.92 5,640.18 7,744.41
2011-2012 10,517.71

1,941.03

7.51 12,451.23

4,734.78

568.82

Nil

6.58

5,297.02

7,154.21

Notes: @ Buildings include X * being cost of ordinary shares in co-operative housing societies.

# Addition to Plant and Machinery includes X 38.66 crore {31st March, 2012-Rs 81.74 crore) and depreciation of Rs 9.44 crore [31st March, 2012 - Rs 4.59 crore) on account of Foreign Currency Exchange Differences.

@@ Pertains to depreciation written back in respect of earlier years. Refer Note 2.2.

Fixed Assets having Gross Block ofRs 1,711.26 crore (31st March, 2012 -Rs 2,589.27 crore) [Net Block Rs 565.09 crore (31st March, 2012-Rs 1,405.30 crore)] are on leased land for which agreement is pending finalisation.

* Denotes figures below Rs 50,000/-. Previous year's figures are in italics.

GROSS BLOCK

DEPRECIATION

NET BLOCK
As at 1st April, 2012 Additions Deductions As at 31st March, 2013 As at 1st April, 2012 For the year Deductions As at 31st March, 2013 As at 31st March, 2013
(b) INTANGIBLE ASSETS
Technical Know-How and Prototypes ! 10.68 3.94 1.19 13.43 2.16 2.17 0.09 4.24 9.19

0.95

9.73

Nil

10.68

0.94

1.22

Nil

2.16 8.52
Licences $ 0.26 Nil Nil 0.26 0.26 Nil Nil 0.26 Nil

0.26

Nil

Nil

0.26

0.26

Nil

Nil

0.26

Nil

Computer Software $ 10.38 13.70 Nil 24.08 0.31 2.85 Nil 3.16 20.92

Nil

10.38

Nil

10.38

Nil

0.31

Nil

0.31 10.07
TOTAL INTANGIBLE ASSETS 21.32 17.64 1.19 37.77 2.73 5.02 0.09 7.66 30.11
2011-2012

1.21

20.11

Nil

21.32 1.20 1.53

Nil

2.73 18.59

Notes: ! Internally generated intangible assets.

S Other than internally generated intangible assets. Previous year's figures are in italics.

Depreciation/Amortisation for the year:

As at 31st March, 2013

As at 31stMarch, 2012

Depreciation for the year before adjustments 578.88

568.82

Less: Adjustment - Write-back of previous years (Refer Note 22) 219.80

Nil

Add: Amortisation for the year 5.02

1.53

Total 364.10

S70.3S

14. Non-current Investments

As at 31st March, 2013

As at 31st March, 2012

Face Value (in Rs unless stated As at 31st March, 2013

As at 31st March, 2012

Quantity

Quantity

otherwise) Rs crore

Rs crore

A Trade Investments (valued at cost less diminution other than temporary, if any)
a Equity Shares fully Paid-up (unless otherwise stated)
(i) Investment in Subsidiaries (Quoted)
NELCO Ltd 1,10,99,630

1,10,99,630

10 11.07

11.07

Investment in Subsidiaries (Unquoted)
Chemical Terminal Trombay Ltd 1,86,200

1,86,200

100 37.81

37.81

Powerlinks Transmission Ltd # 23,86,80,000

23,86,80,000

10 238.68

238.68

Tata Power Trading Co Ltd 1,60,00,000

1,60,00,000

10 37.00

37.00

Maithon Power Ltd 106,18,39,120

98,78,39,120

10 1,062.07

988.07

Industrial Energy Ltd # 24,64,20,000

24,64,20,000

10 246.42

246.42

Coastal Gujarat Power Ltd # 488,66,10,000

397,05,00,000

10 4,886.61

3,970.50

Bhira Investments Ltd 10,00,000

10,00,000

USD 1 4.10

4.10

Bhivpuri Investments Ltd 7,46,250

7,46,250

EURO 1 4.08

4.08

Khopoli Investments Ltd 4,70,07,350

7,350

USD 1 255.20

0.03

Trust Energy Resources Pte Ltd 12,47,63,344

12,46,98,270

USD 1 575.02

574.67

Tata Power Delhi Distribution Ltd 28,15,20,000

28,15,20,000

10 200.93

200.93

Tata Power Jamshedpur Distribution Ltd 50,000

Nil

10 0.05

Nil

Industrial Power Utility Ltd 1,10,000

1,10,000

10 0.11

0.11

Tata Power Renewable Energy Ltd # 4,87,08,000

2,70,60,000

10 48.71

27.06

Dugar Hydro Power Ltd 2,83,00,002

1,40,00,002

10 28.30

14.00

Tata Power Solar Systems Ltd
(erstwhile Tata BP Solar India Ltd) 67,77,567

Nil

100 148.31

Nil

7,773.40

6,343.46

(ii) Investment in Associates (Unquoted)
Yashmun Engineers Ltd @ 19,200

9,600

100 0.01

0.01

The Associated Building Co Ltd 1,400

1,400

900 0.13

0.13

Tata Projects Ltd 9,67,500

9,67,500

100 85.01

85.01

85.15

85.15

(iii) Investment in Joint Ventures (Unquoted)
Tubed Coal Mines Ltd 1,19,80,000

47,80,000

10 11.98

4.78

Mandakini Coal Company Ltd # 3,93,00,000

3,43,00,000

10 39.30

34.30

Dagachhu Hydro Power Corporation Ltd ! 10,74,320

8,42,400

Nu 1,000 94.01

70.91

Tata Power Solar Systems Ltd
(erstwhile Tata BP Solar India Ltd) Nil

33,21,000

100 Nil

111.43

145.29

221.42

(iv) Investment in Others (Unquoted)
Tata Services Ltd 1,112

1,112

1,000 0.11

0.11

Indian Energy Exchange Ltd 12,50,000

12,50,000

10 1.25

1.25

1.36

1.36

8,016.27

6,662.46

b Preference Shares fully Paid-up (Unquoted)
(i) Investment in Subsidiaries
Tata Power Delhi Distribution Ltd 2,55,00,000

Nil

100 255.00

Nil

Tata Power Solar Systems Ltd
(erstwhile Tata BP Solar India Ltd) 22,05,000

Nil

100 22.05

Nil

277.05

Nil

(ii) Investment in Joint Ventures
Tata Power Solar Systems Ltd
(erstwhile Tata BP Solar India Ltd) Nil

22,05,000

100 Nil

22.05

Carried over 8,293.32

6,684.51

B Other Investments
a Statutory Investments
(i) Contingencies Reserve Fund Investments
Government Securities (Unquoted)
828% GOI (2027) 11,30,000

11,30,000

100 11.30

11.30

824% GOI (2027) 9,65,000

9,65,000

100 9.65

9.65

819% GOI (2020) 7,03,000

Nil

100 7.03

Nil

635% GOI (2020) 16,01,300

16,01,300

100 16.01

16.01

799% GOI (2017) 8,48,700

8,48,700

100 8.49

8.49

749% GOI (2017) 7,36,000

7,36,000

100 7.36

7.36

759% GOI (2016) 19,000

19,000

100 0.19

0.19

60.03

53.00

(ii) Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
828% GOI (2027) 61,45,000

61,45,000

100 61.45

61.45

820% GOI (2025) 20,00,000

Nil

100 20.00

Nil

735% GOI (2024) 31,00,000

31,00,000

100 31.00

31.00

815% GOI (2022) 20,00,000

Nil

100 20.00

Nil

819% GOI (2020) 19,40,000

Nil

100 19.40

Nil

635% GOI (2020) 2,48,700

2,48,700

100 2.49

2.49

605% GOI (2019) 42,00,000

42,00,000

100 42.00

42.00

625% GOI (2018) 15,00,000

15,00,000

100 15.00

15.00

799% GOI (2017) 33,49,300

33,49,300

100 33.49

33.49

749% GOI (2017) 25,00,000

25,00,000

100 25.00

25.00

900% GOI (2013) Nil

10,00,000

100 Nil

10.00

269.83

220.43

329.86

273.43

b Non-trade Investments
(i) Equity Shares fully Paid-up (unless
otherwise stated)
1 Investment in Subsidiaries (Unquoted)
Af-Taab Investment Co Ltd 10,73,000

11,37,000

100 68.68

72.78

2 Investment in Associates (Unquoted)
Tata Ceramics Ltd 91,10,000

91,10,000

2 9.11 **

9.11 **

Rujuvalika Investments Ltd 1,83,334

1,83,334

10 0.30

0.30

Panatone Finvest Ltd 59,08,82,000

59,08,82,000

10 600.00

600.00

609.41

609.41

**Less: Provision for diminution in value of
Investments other than temporary 9.11

9.11

600.30

600.30

3 Investment in Others (Quoted)
HDFC Bank Ltd 7,500

7,500

2

*

*

IDBI Bank Ltd 1,42,720

1,42,720

10 1.14

1 14

Voltas Ltd 2,33,420

2,33,420

1 0.25

0.25

Tata Consultancy Services Ltd 452

452

1

*

*

Tata Teleservices (Maharashtra) Ltd 13,72,63,174

13,72,63,174

10 119.67

119.67

Tata Communications Ltd 1,34,22,037

1,34,22,037

10 343.81

343.81

464.87

464.87

Carried over 9,757.03

8,095.89

4 Investment in Others (Unquoted)
Tata Industries Ltd 58,28,126

58,28,126

100 102.69

102.69

Tata Sons Ltd 6,673

6,673

1,000 241.95

241.95

Haldia Petrochemicals Ltd 2,24,99,999

2,24,99,999

10 22.50

22.50

Tata Teleservices Ltd # 32,83,97,823

32,83,97,823

10 735.48

735.48

1,102.62

1,102.62

2,236.47

2,240.57

(ii) Government Securities (Unquoted)
807% GOI (2017) 3,000

3,000

100 0.03

0.03

900% GOI (2013) Nil

10,00,000

100 Nil

10.00

0.03

10.03

2,236.50

2,250.60

Total 10,859.68

9,208.54

Notes:
1 Aggregate of Quoted Investments
Cost 475.94 475.94
Market value 468.49

563.51

2 Aggregate of Unquoted Investments
Cost 10,392.85

8,741.71

Less: Provision for diminution in value of Investments other than temporary 9.11 ** 9.11 **
Aggregate amount of Unquoted Investments - Net of provision for dimunition in value of Investments other than temporary 10,383.74 8,732.60

** Provision for diminution in value of Investments other than temporary.

! 8,42,400 fully Paid-up Shares and 2,31,920 partly Paid-up Nu 421.27 (31st March, 2012 - 8,42,400 partly Paid-up Nu 841.76).

@ Bonus shares in the ratio of 1:1 issued during the year.

# Refer Note 32(c)

* Denotes figures below Rs 50,000/-.

15 Loans and Advances

Long-term

Short-term

As at 31st March, 2013

As at 31st March, 2012

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore Rs crore Rs crore
(a) Capital Advances
Unsecured, considered good 94.37

247.76

Nil

Nil

Doubtful 0.64

0.74

Nil

Nil

95.01

248.50

Nil

Nil

Less: Provision for Doubtful Advances 0.64

0.74

Nil

Nil

94.37

247.76

Nil

Nil

(b) Security Deposits
Unsecured, considered good 432.78

314.27

1.11

12.51

Doubtful 15.07

8.18

Nil

0.31

447.85

322.45

1.11

12.82

Less: Provision for Doubtful Deposits 15.07

8.18

Nil

0.31

432.78

314.27

1.11

12.51

(c) Loans and Advances to Related Parties
Unsecured, considered good
Advance towards Equity 252.78

146.58

Nil

Nil

Other Advances Nil

Nil

Nil

70.43

Other Loans (including interest accrued) 1,239.06

371.18

312.65

1,026.73

Doubtful 1.27

1.27

Nil

Nil

1,493.11

519.03

312.65

1,097.16

Less: Provision for Doubtful Advances 1.27

1.27

Nil

Nil

1,491.84

517.76

312.65

1,097.16

(d) Advance Income-tax (Net) - Unsecured, considered good Nil

27.35

Nil

Nil

(e) MAT Credit entitlement - Unsecured, considered good 105.00

105.00

Nil

Nil

(Rs) Balance with Government Authorities
Unsecured, considered good
Advances Nil

Nil

6.36

3.52

VAT / Sales Tax Receivable 35.47

Nil

64.01

70.38

35.47

Nil

70.37

73.90

(g) Inter-corporate Deposits with HDFC Ltd - Unsecured, considered
good Nil

Nil

337.75

50.00

(h) Other Loans and Advances
Unsecured, considered good
Loans to Employees 10.87

11.70

Nil

Nil

Prepaid Expenses Nil

Nil

12.34

7.18

Unamortised Option Premium 13.83

Nil

21.67

Nil

Advances to Vendors Nil

1.00

181.25

112.09

Other Advances 5.90

6.11

17.95

4.84

Doubtful 2.11

0.74

1.39

2.77

32.71

19.55

234.60

126.88

Less: Provision for Doubtful Advances 2.11

0.74

1.39

2.77

30.60

18.81

233.21

124.11

Total 2,190.06

1,230.95

955.09

1,357.68

16. Other Non-current assets

As at 31st March, 2013

As at 31st March, 2012

Long-term Trade Receivables Rs crore Rs crore
Unsecured, considered good
Trade Receivables - Regulatory Assets 2,555.78

1,538.89

Trade Receivables from Contracts 17.13

7.50

Trade Receivables from Others 185.76

185.76

Total 2,758.67

1,732.15

17. Current Investments

As at 31st March, 2013

As at 31st March, 2012

Face Value (in Rs unless stated As at 31st March, 2013

As at 31st March, 2012

Quantity

Quantity

otherwise) Rs crore

Rs crore

A Current portion of Long-term Investments
Trade Investments (valued at cost less diminution other than temporary, if any)
Debentures (Unquoted)
Investment in Associates
8% Secured Non-Convertible Debentures in Tata Projects Ltd Nil

93,750

1,000 Nil

9.37

Other Investments
1 Statutory investments
a Contingency Reserve Fund Investments
Government Securities (Unquoted)
900% GOI (2013) 10,00,000

Nil

100 10.00

Nil

b Deferred Taxation Liability Fund Investments
(i) Government Securities (Unquoted)
900% GOI (2013) 10,00,000

Nil

100 10.00

Nil

685% GOI (2012) Nil

40,91,300

100 Nil

40.91

10.00

40.91

(ii) Other Securities
Bonds (Unquoted)
785% EXIM Bank Bonds F6 Series (2012) Nil

40

1,00,00,000 Nil

40.00

10.00

80.91

2 Other Investments
Other Securities
Government Securities (Unquoted)
685% GOI (2012) Nil

9,08,700

100 Nil

9.09

Total - Current Portion of Long-term Investments 20.00

99.37

B Other Current Investments (valued at lower of cost and fair value)
Mutual Funds (Unquoted)
Taurus Mutual Fund - Bonanza Exclusive- Growth 6,66,667

6,66,667

10 0.50

0.50

Templeton India - Growth 2,50,000

2,50,000

10 0.25

0.25

J M Equity Fund - Growth 5,00,000

5,00,000

10 0.50

0.50

UTI Balanced Fund - Dividend Plan - Reinvestment $ 1,42,289

95,587

10 0.11

0 11

Kotak Floater Short-term - Growth 4,43,289

Nil

1,000 85.00

Nil

Baroda Pioneer Liquid Fund - Growth 1,68,028

Nil

1,000 22.55

Nil

DSP Blackrock Liquidity Fund - Growth 5,07,247

Nil

1,000 85.00

Nil

Religare Liquid Fund - Growth 62,069

Nil

1,000 10.00

Nil

Kotak Liquid Scheme - Growth 85,185

Nil

1,000 20.25

Nil

Tata Liquid Fund - Growth 20,341

10,10,338

1,000 4.40

200 00

Birla Sunlife Cash Plus - Institutional Premium - Growth Nil

56,14,522

100 Nil

96 40

ICICI Prudential Liquid - Regular Plan - Growth 5,77,104

1,17,97,229

100 10.00

187.01

238.56

484.77

Total 258.56

584.14

Aggregate amount of Unquoted Investments 258.56

584.14

Reconciliation for Disclosure as per Accounting Standard 13

As at 31st March, 2013

As at 31st March, 2012

Rs crore

Rs crore

Long-term Investments
Non-current Investments (Refer Note 14) 10,859.68

9,208 54

Current portion of Long-term Investments (Refer Note 17) 20.00

99.37

10,879.68

9,307.91

Current Investments
Other Current Investments (Refer Note 17) 238.56

484.77

Total 11,118.24

9,792.68

$ Dividend re-invested in the form of units

18. Inventories (valued at lower of cost and net realisable value)

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Stores and Spares
Fuel - Stores 394.96

453.07

Fuel-in-Transit 87.12

139.17

Stores and Spare Parts 243.18

229.12

Loose Tools 0.31

0.43

725.57

821.79

Others
Property under Development 35.52

32.68

Total 761.09

854.47

19. Trade Receivables

(Unsecured unless otherwise stated) As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
Trade Receivables outstanding for a period exceeding six months from the due date of payment *
Considered good 67.81

31.32

Considered doubtful 33.63

17.91

101.44

49.23

Less: Provision for Doubtful Trade Receivables 33.63

17.91

67.81

31.32

Other Trade Receivables *
Considered good 1,232.25

972 05

Considered doubtful 0.61

1.95

1,232.86

974.00

Less: Provision for Doubtful Trade Receivables 0.61

1.95

1,232.25

972.05

Total 1,300.06

1,003.37

* Company holds security deposits of Rs 180.85 crore (Previous Year - 7 146.65 crore) in respect of Electricity Receivables.

20. Cash and Bank Balances

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
(A) Cash and Cash Equivalents:
(i) Cash on Hand 0.01

0.04

(ii) Cheques on Hand 8.67

Nil

(iii) Balances with Banks:
(a) In Current Accounts 46.82

49.86

(b) In Deposit Accounts (remaining maturity of three months
or less) 345.70

611.15

Cash and Cash Equivalents as per AS-3 Cash Flow Statements 401.20

661.05

(B) Other Balances with Banks:
(a) In Deposit Accounts (remaining maturity of more than three months but less than twelve months) Nil

330.00

(b) In Deposit Accounts (remaining maturity of more than twelve months) 1.94

36.94

(c) In Unpaid Dividend Account 10.03

9.36

Total 413.17

1,037.35

21. Other Current Assets

As at 31st March, 2013

As at 31st March, 2012

Rs crore Rs crore
(a) Unbilled Revenue 89.69

155.90

(b) Accruals
Interest accrued on Deposits 8.25

12.94

Interest accrued on Investments 6.08

8.80

(c) Others
Receivable on sale of Current Investments Nil

9.00

Receivable on sale of Fixed Assets 0.62

Nil

Mark-to-Market (MTM) Forward Contracts 2.52

2.94

Total 107.16

189.58

22. Revenue from Operations

For the year ended 31st March, 2013

For the year ended 31st March, 2012

Rs crore

Rs crore

(a) Revenue from Operations
(i) Revenue from Power Supply and Transmission Charges 7,990.80

7,349.47

Less: Cash Discount 42.91

66.30

Add: Income to be recovered in future tariff determination (Net) 1,028.72

729.53

Add: Income to be recovered in future tariff determination (Net)
in respect of earlier years 104.72

38.83

9,081.33

8,051.53

(ii) Revenue from Contracts
Electronic Products 298.66

283.69

Project / Operation Management Services 112.21

89.14

410.87

372.83

(b) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipment, etc 9.07

11.57

Income in respect of Services Rendered 34.77

28.47

Compensation Earned 0.01

0.85

Transfer of Service Line Contributions 9.97

9.26

Sale of REC Certificates 9.13

Nil

Miscellaneous Revenue 19.92

21.35

Sale of Fly Ash 2.50

2.03

Sale of Carbon Credits Nil

8.98

Profit on Sale/Retirement of Assets (Net) Nil

0.56

Delayed Payment Charges 6.07

5.05

91.44

88.12

9,583.64

8,512.48

Less: Excise Duty 16.36

16.64

Total 9,567.28

8,495.84

23. Other Income

For the year ended 31st March, 2013

For the year ended 31st March, 2012

Rs crore

Rs crore

(a) Interest Income
Interest from Banks on Deposits 49.82

48.35

Interest from Inter-corporate Deposits 49.51

29.00

Interest on Fuel Adjustment Charges Recoverable from Consumers 20.53

15.25

Interest on Overdue Trade Receivables 40.91

0.80

Interest on Income-tax Refund 4.52

0.44

Interest on Contingency Reserve Fund Investments 5.19

3.48

Interest on Deferred Tax Liability Fund Investments 19.60

21.73

Interest on Loans to Subsidiaries 77.15

91.67

Interest on Non-current Trade Investments - Associates 0.31

1.11

Other Interest 2.81

3.84

270.35

215.67

(b) Dividend Income
From Long-term Investments
Subsidiaries 353.81

589.71

Joint Ventures Nil

5.24

Associates 9.73

11.03

Others 8.34

8.28

371.88

614.26

From Current Investments
Others 0.05

0.04

371.93

614.30

(c) Profit on Sale of Investments / Buy-back of Investments
Current Investments 57.12

30.47

Long-term Investments - Buy-back of shares 11.90

17.69

69.02

48.16

(d) Other Non-operating Income
Discount amortised/accrued on Bonds (Net) 0.13

1.76

Guarantee Commission from Subsidiaries 10.24

7.50

Net Gain on Foreign Currency Transactions and Translation Nil

96.07

10.37

105.33

Total 721.67

983.46

24. Employee Benefits Expense

For the year ended 31st March, 2013

For the year ended 31st March, 2012

Rs crore Rs crore
Salaries and Wages 437.54

417.33

Contribution to Provident Fund 18.68

16.55

Contribution to Superannuation Fund 9.86

10.43

Retiring Gratuities 32.54

35.62

Leave Encashment Scheme 29.04

19.69

Pension Scheme 5.14

4.24

Staff Welfare Expenses 84.15

65.83

616.95

569.69

Less:
Employee Cost Capitalised 45.15

38.13

Employee Cost Recovered 9.91

7.35

Employee Cost Inventorised 14.29

11.56

69.35

57.04

Total 547.60

512.65

25. Finance Costs

For the year ended 31st March, 2013

For the year ended 31st March, 2012

Rs crore

Rs crore

(a) Interest Expense on:
Borrowings
Interest on Debentures 290.87

191.55

Interest on - Euro Notes and FCCB 60.75

53.80

Interest on Fixed Period Loans - Others 343.33

288.88

Others
Interest on Consumer Security Deposits 16.39

8.79

Other Interest and Commitment Charges 0.41

2.67

711.75

545.69

Less: Interest Capitalised 45.49

51.89

666.26

493.80

(b) Other Borrowing Cost
Derivative Premium 8.16

15.26

Other Finance Costs 3.83

5.81

11.99

21.07

Total 678.25

514.87

26. Other Expenses

For the year ended 31st March, 2013

For the year ended

31st March, 2012

Rs crore Rs crore
Consumption of Stores, oil, etc (excluding Rs 8414 crore on repairs and maintenance - Previuos Year Rs 7289crore) 16.32

16.30

Rental of Land, Buildings, Plant and Equipment, etc 17.74

15.75

Repairs and Maintenance -
(i) To Buildings and Civil Works 53.05

43.03

(ii) To Machinery and Hydraulic Works 223.03

225.83

(iii) To Furniture, Vehicles, etc 10.69

6.75

286.77

275.61

Rates and Taxes 47.13

30.95

Insurance 15.79

17.80

Cost of Components Consumed 150.75

154.77

Transmission Charges 233.43

100.64

Other Operation Expenses 69.83

74.32

Ash Disposal Expenses 15.85

8.77

Warranty Charges 7.74

6.75

Travelling and Conveyance Expenses 29.66

27.21

Consultants Fees 30.03

33.08

Auditors' Remuneration 4.47

3.89

Cost of Services Procured 83.71

75.05

Agency Commission Nil

1.10

Bad Debts 0.19

0.01

Provision for Doubtful Debts and Advances (Net) 20.85

5.53

Loss on Sale/Retirement of Assets (Net) 1.34

Nil

Donations 1.84

9.19

Legal Charges 8.30

7.57

Net Loss on Foreign Currency Transactions and Translation 27.62

Nil

Miscellaneous Expenses 58.47

49.85

Total 1,127.83

914.14

Payment to the Auditors comprises (inclusive of service tax):

For the year ended 31st March, 2013

For the year ended 31st March, 2012

Rs crore

Rs crore

As Auditors - Statutory Audit 2.97

2.47

For Taxation Matters 0.45

0.45

For Company Law Matters *

*

For Other Services 0.56

0.57

Reimbursement of Expenses Nil

0.02

For service tax 0.49

0.38

Total 4.47

3.89

The remuneration disclosed above excludes fees of Rs 0.45 crore (31st March, 2012 - Rs0.17 crore) [exclusive of service tax of Rs 0.06 crore (Previous Year - Rs 0.02 crore)] for attest and other professional services rendered by firm of accountants in which some partners of the firm of statutory auditors are partners.

Note: '*' Denotes figures below Rs 50,000/-.

27. In an earlier year, the Company had commissioned its 120 MW thermal power unit at Jojobera, Jharkhand. Revenue in respect of this unit is recognised on the basis of a draft Power Purchase Agreement prepared jointly by the Company and its customer which is pending finalisation.

28. The Company has been legally advised that the Company is considered to be established with the object of providing infrastructural facilities and accordingly, Section 372A of the Companies Act, 1956 is not applicable to the Company.

29. (a) The Company has a long-term investment of Rs 5,103.61 crore (including advance towards equity) (31st March, 2012 - Rs 4,112.08 crore) and has extended loans amounting to Rs 436.57 crore (including interest accrued) (31st March, 2012 -Rs 248.88 crore) to Coastal Gujarat Power Limited (CGPL) a wholly owned subsidiary of the Company which has implemented the 4000 MW Ultra Mega Power Project at Mundra ("Mundra UMPP") and declared commercial operations for all its five Units of 800 MW each.

CGPL has obligated to charge escalation on 45 percent of the cost of coal in terms of the 25 year power purchase agreement relating to the Mundra UMPP. During the year, CGPL's Management has re-assessed the recoverability of the carrying amount of the assets at Mundra as of 31st March, 2013 and concluded that the cash flows expected to be generated over the useful life of the asset of 40 years would not be sufficient to recover the carrying amount of such assets and has therefore recorded in CGPL's books as at 31st March, 2013, a provision for an impairment loss of Rs 2,650.00 crore (31st March, 2012 - Rs 1,800.00 crore).

In estimating the future cash flows, Management has, based on externally available information, made certain assumptions relating to the future fuel prices, future revenues, operating parameters and the assets' useful life which Management believes reasonably reflects the future expectation of these items. In view of the estimation uncertainties, the assumptions will be monitored on a periodic basis and adjustments will be made if conditions relating to the assumptions indicate that such adjustments are appropriate.

The Company's investments in Indonesian coal companies through its wholly owned subsidiaries, Bhira Investments Limited and Khopoli Investments Limited, were made to secure long-term coal supply. The Management believes that cash inflows (in the nature of profit distribution) from these investments from an economic perspective provide protection from the risk of price volatility on coal to be used in power generation in CGPL, to the extent not covered by price escalations. In order to provide protection to CGPL and to support its cash flows, the Management has committed to a future restructuring under which the Company will transfer at least 75 percent of its equity interests in the Indonesian Coal Companies to CGPL, subject to receipt of regulatory and other necessary approvals which are being pursued and will also evaluate other alternative options. A valuation of the equity interests in the Indonesian Coal Companies has been carried out on the basis of certain assumptions, including legal interpretation that there is reasonable certainty that the mining leases would be extended without significant cost.

Having regard to the overall returns expected from the Company's investment in CGPL, including the valuation of investments in the Indonesian Coal Companies and the proposed future restructuring, no provision for diminution in value of long-term investment in CGPL is considered necessary as at 31st March, 2013.

(b) The Company has an investment in Tata Teleservices Limited (TTSL) of Rs 735.48 crore (31st March, 2012 - 7 735.48 crore). Based on the accounts as certified by the TTSL Management for the period ended 31st December, 2012, TTSL has accumulated losses which have significantly eroded its net worth. In the opinion of the Management, having regard to the long-term nature of the business, there is no diminution other than temporary, in the value of the investment also considering the Hon'ble Supreme Court judgement cancelling the three (3) CDMA licenses pertaining to Jammu & Kashmir, Assam and North East Circles of TTSL.

(c) The Company has an investment in Haldia Petrochemicals Limited (HPL) of Rs 22.50 crore (31st March, 2012 - 7 22.50 crore). Based on the accounts for the year ended 31st March, 2012, HPL has accumulated losses which have significantly eroded its net worth. In the opinion of the Management, having regard to the long-term nature of the business, there is no diminution other than temporary, in the value of the investment.

30. 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:

31st March, 2013

31st March, 2012

Rs crore

Rs crore

(a) Principal amount remaining unpaid as on 31st March 2.81

4.08

(b) Interest due thereon as on 31st March @ Nil

Nil

(c) The amount of Interest paid along with the amounts of the payment
made to the supplier beyond the appointed day @ Nil

Nil

(d) The amount of Interest due and payable for the year @ Nil

Nil

(e) The amount of Interest accrued and remaining unpaid as
at 31st March @ Nil

Nil

(Rs) 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 @ Nil

Nil

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

@ Amounts unpaid to MSM vendors on account of retention money have not been considered for the purpose of interest calculation.

31. Commitments:

(a) Capital commitments:

Capital commitments not provided for are estimated at Rs 545.82 crore (31st March, 2012 - Rs 477.46 crore).

(b) Uncalled liability on Shares and Other Investment partly paid:

Uncalled liability on partly paid-up shares - Rs 13.42 crore (31st March, 2012 - Rs 13.33 crore).

(c) Other commitments:

(i) In terms of the Sponsor Support agreement entered into between the Company, Coastal Gujarat Power Limited (CGPL) and lenders of CGPL, the Company has undertaken to provide support by way of base equity contribution to the extent of 25% of CGPL's project cost and additional equity or subordinated loans to be made or arranged for, if required as per the financing agreements to finance the project. The sponsor support also includes support by way of additional equity for any overrun in project costs and Debt Service Reserve Guarantee as provided under the financing agreements. The support will cease on the date of "financial completion" as defined under the relevant financing agreements. Further, CGPL has entered into Agreements with the Company, (i) for Additional Subordinated Loan to the extent of USD 50 million (equivalent to Rs 200.00 crore at a fixed rate of exchange of Rs 40 = USD 1.00) and (ii) for Additional Subordinated Loans to the extent of Rs 1,600.00 crore. In accordance with these agreements the Company has provided total Additional Subordinated Loans of Rs 1,167.41 crore (of which Rs 767.41 crore has been converted into equity ) (31st March, 2012 - r 212.31 crore) to CGPL. Balance of both the loans would be repaid in accordance with the conditions of the Subordination and Hypothecation Agreements either out of additional equity to be infused by the Company or out of the balance Indian rupee term loans receivable by CGPL in future period, after the fulfillment of conditions in the Coal Supply and Transportation Agreements Completion Date (CSTACD) agreement. The Company has waived charging interest on these loans from 1st April, 2012.

The accrued interest as at 31st March, 2013 aggregating to Rs 36.57 crore (31st March, 2012 - f36.57crore) on Additional Subordinated Loans shall be payable subject to fulfillment of conditions in Subordination Agreement and Coal Supply and Transportation Agreements Completion Date (CSTACD) agreement.

(ii) The Company has undertaken to arrange for the necessary financial support to its Subsidiary Companies Khopoli Investments Limited, Bhivpuri Investments Limited, Industrial Power Utility Limited and Tata Power Jamshedpur Distribution Limited.

(iii) In respect of Maithon Power Limited (MPL), the Company jointly with Damodar Valley Corporation (DVC) has undertaken to the lenders of MPL, to provide support by way of base equity contribution and additional equity or subordinated loans to meet the increase in Project Cost. Further, the Company has given an undertaking to MPL to fulfill payment obligations of Tata Power Trading Company Limited (TPTCL) and Tata Power Delhi Distribution Limited (TPDDL) in case of their default.

(iv) In terms of pre-implementation agreement entered into with Government of Himachal Pradesh and the consortium consisting of the Company and SN Power Holding Singapore Pte. Limited (Company being the Lead Member of the consortium) for the investigation and implementation of Dugar Hydro Electric project, the Company has undertaken as Lead Member to undertake/perform various obligations pertaining to Dugar Project.

(v) In accordance with the terms of the Share Purchase Agreement and the Shareholder's Agreement entered into by Panatone Finvest Limited (PFL), an associate of the Company, with the Government of India, PFL has contractually undertaken a"Surplus Land" obligation including agreeing to transfer 45% of the share capital of the Resulting Company, at Nil consideration, to the Government of India and other selling shareholders upon Demerger of the Surplus Land by Tata Communications Limited (TCL). The Company has till date acquired 1,34,22,037 shares of TCL from PFL. The Company would be entitled to be allotted 4.71% of the share capital of the Resulting Company based on its holding of 1,34,22,037 shares of TCL. The Company has undertaken to PFL to bear the "Surplus Land" obligation pertaining to these shares.

(vi) The Company has given an undertaking for non-disposal of shares to the lenders of Tata Power Delhi Distribution Limited amounting to Rs 721.22 crore (31st March, 2012 - Rs 931.28 crore).

(vii) The Company has given letter of comfort to Cennergi Pty. Limited amounting to Rs 27.57 crore (31st March, 2012 - r Nil).

32. Contingent Liabilities (to the extent not provided for):

(a) Claims against the Company not acknowledged as debts aggregating to Rs 370.06 crore (31st March, 2012 - Rs 234.66 crore) consist mainly of the following:

(i) Octroi claims disputed by the Company aggregating to Rs 5.03 crore (31st March, 2012 - Rs 5.03 crore), in respect of octroi exemption claimed by the Company.

(ii) A Suit has been filed against the Company claiming compensation of Rs 20.51 crore (31st March, 2012 - Rs 20.51 crore) by way of damages for alleged wrongful disconnection of power supply and interest accrued thereon Rs 111.99 crore (31st March, 2012 - Rs 107.68 crore).

(iii) (a) Rates, Cess, Way Leave Fees and Duty claims disputed by the Company aggregating Rs 63.73 crore (31stMarch, 2012 - RS 68.90 crore). In respect of certain dues as per the terms of an agreement, the Company has the right to claim reimbursement from a third party.

(b) Custom duty claims of Rs 135.52 crore disputed by the Company relating to issue of applicability and classification (Payment made under protest against these claims of Rs 135.52 crore).

(iv) Other claims against the Company not acknowledged as debts Rs 33.28 crore (31st March, 2012 - Rs 32.54 crore).

(v) Amounts in respect of employee related claims/disputes, regulatory matters is not ascertainable.

Future cash flows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.

(b) Other Contingent Liabilities:

Taxation matters for which liability, relating to issues of deductibility and taxability, is disputed by the Company and provision is not made (computed on the basis of assessments which have been re-opened and assessments remaining to be completed) Rs 58.82 crore (including interest demanded Rs 1.25 crore) [(31st March, 2012 - Rs113.85 crore) (including interest demanded Rs 6.31 crore)].

Future cash flows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.

(c) Indirect exposures of the Company:

Name of the Company Guarantees given Shares pledged (Refer Note 1 below)
(Rs crore ) (Nos.)
Tata Teleservices Limited (TTSL) - 18,27,08,138
-

21,98,18,101

Powerlinks Transmission Limited (PTL) - 23,86,80,000
-

23,86,80,000

Coastal Gujarat Power Limited (CGPL) 3,473.55 249,21,71,100
(including JPY 31,219 million)
3,117.59

202,49,55,000

(including JPY 31,219 million)
Industrial Energy Limited (IEL) - 12,56,74,200
-

12,56,74,200

Khopoli Investments Limited (KIL) 3,212.06 -
(equivalent to USD 590.56 million)
3,014.63 (equivalent to USD 588.91 million) -
Bhira Investments Limited (BIL) 4,895.10 (equivalent to USD 900 million) -
4,607.10 (equivalent to USD 900 million)

-

Trust Energy Resources Pte. Limited (TERL) 287.72 (equivalent to USD 52.90 million) -
270.80 (equivalent to USD 52.90 million)

-

Tubed Coal Mines Limited (TCML) 11.36 -
11.36

-

Mandakini Coal Company Limited (MCCL) 86.93 2,00,43,000
20.26 -
Energy Eastern Pte. Limited (EEL) 301.86 (equivalent to USD 55.50 million) -
87.02 (equivalent to USD 17 million)

-

Tata Power Renewable Energy Limited (TPREL) 405.45 2,48,41,080
285.99

1,38,00,600

Maithon Power Limited (MPL) 135.00 -
Tata Sons Limited (TSL) [Refer (Rs) below] -
[Refer (Rs) below] -

Notes:

1. The Company has pledged the above shares of subsidiaries, jointly controlled entities and TTSL, with the lenders for borrowings availed by respective subsidiaries, jointly controlled entities and TTSL.

2. Previous year's figures are in italics.

(d) In respect of the Standby Charges dispute with Reliance Infrastructure Limited (R-Infra) for the period from 1st April, 1999 to 31st March, 2004, the Appellate Tribunal of Electricity (ATE), set aside the Maharashtra Electricity Regulatory Commission (MERC) Order dated 31st May, 2004 and directed the Company to refund to R-Infra as on 31st March, 2004, Rs 354.00 crore (including interest of Rs 15.14 crore) and pay interest at 10% per annum thereafter. As at 31st March, 2013 the accumulated interest was Rs 184.76 crore (31st March, 2012 - r 173.56 crore) (f 11.20 crore for the year ended 31st March, 2013). On appeal, the Hon'ble Supreme Court vide its Interim Order dated 7th February, 2007, has stayed the ATE Order and in accordance with its directives, the Company has furnished a bank guarantee of the sum of Rs 227.00 crore and also deposited Rs 227.00 crore with the Registrar General of the Court which has been withdrawn by R-Infra on furnishing the required undertaking to the Court.

Further, no adjustment has been made for the reversal in terms of the ATE Order dated 20th December, 2006, of Standby Charges credited in previous years estimated at Rs 519.00 crore, which will be adjusted, wholly by a withdrawal/set off from certain Statutory Reserves as allowed by MERC. No provision has been made in the accounts towards interest that may be finally determined as payable to R-Infra. Since 1st April, 2004, the Company has accounted Standby Charges on the basis determined by the respective MERC Tariff Orders.

The Company is of the view, supported by legal opinion, that the ATE's Order can be successfully challenged and hence, adjustments, if any, including consequential adjustments to the Deferred Tax Liability Fund and the Deferred Tax Liability Account will be recorded by the Company on the final outcome of the matter.

(e) MERC vide its Tariff Order dated 11th June, 2004, had directed the Company to treat the investment in its wind energy project as outside the Mumbai Licensed Area, consider a normative Debt Equity ratio of 70:30 to fund the Company's fresh capital investments effective 1st April, 2003 and had also allowed a normative interest charge @ 10% per annum on the said normative debt. The change to the Clear Profit and Reasonable Return (consequent to the change in the capital base) as a result of the above mentioned directives for the period upto 31st March, 2004, has been adjusted by MERC from the Statutory Reserves along with the disputed Standby Charges referred to in Note 32(d) above. Consequently, the effect of these adjustments would be made with the adjustments pertaining to the Standby Charges dispute as mentioned in Note 32(d) above.

(Rs) During the year 2008-09, in terms of the agreements entered into between Tata Teleservices Limited (TTSL), Tata Sons Limited (TSL) and NTT DoCoMo, Inc. of Japan (Strategic Partner-SP), TSL gave an option to the Company to sell 2,72,82,177 equity shares in TTSL to the SP, as part of a secondary sale of 25,31,63,941 equity shares effected along with a primary issue of 84,38,79,801 shares by TTSL to the SP.

If certain performance parameters and other conditions are not met by TTSL by 31st March, 2014 and should the SP decide to divest its entire shareholding in TTSL and TSL is unable to find a buyer for such shares, the Company is obligated to acquire the shareholding of the SP, at the higher of fair value or 50 percent of the subscription purchase price in proportion of the number of shares sold by the Company to the aggregate of the secondary shares sold to the SP, subject to compliance with applicable exchange control regulations, or should the SP decide to divest its entire shareholding in TTSL and TSL is unable to find a buyer for such shares and the SP divests the shares at a lower price, subject to compliance with applicable exchange control regulations, the Company is obliged to pay a compensation representing the difference between such lower sale price and the price referred to above in proportion of the number of shares sold by the Company to the aggregate of the secondary shares sold to the SP.

Under the above mentioned aggrements with SP, TSL and TTSL have jointly and severally agreed to indemnify SP with the agreed limits against claims arising on account of any failure of certain warranties provided by TSL and TTSL to be true and correct in all respect (amount not determinable) and in respect of specifed contingent liabilities (Company's share Rs 31.10 crore). The Company is liable to reimburse TSL, on a pro-rata basis.

33. (a) I n the previous year, the Company had provisionally determined the Statutory Appropriations and the adjustments to be made on Annual Performance Review as stipulated under the Multi Year Tariff Regulations, 2011 (MYT Regulation) for its operations in respect of the Mumbai Licensed Area. During the year ended 31st March, 2013, Maharashtra Electricity Regulatory Commission (MERC) has approved the Multi Year Tariff Business Plan of the Company's Mumbai Licensed Area for the Second Control Period from FY 2012-13 to FY 2015-16 and directed the Company to submit its Annual Revenue Requirement (ARR) for FY 2011-12 as per old regulations i.e. MERC (Terms and Conditions of Tariff) Regulations, 2005.

In view of the above, during the year, the Company has reversed revenue amounting to Rs 155.00 crore accrued in the previous year in respect of its Mumbai Licensed Area as per the MYT Regulation.

(b) The Appellate Tribunal for Electricity (ATE) in its Order dated 31st August, 2012, has allowed the Company's claim regarding certain expenses/accounting principles which were disallowed/not recognised by MERC in earlier years in its true-up order. Accordingly, during the year, the Company has treated such expenses as recoverable and has recognised revenue of Rs 142.00 crore.

(c) During the year, pursuant to the favourable ATE Order dated 31st August, 2012, true-up order dated 15th February, 2012 and other favourable orders received by other regulated entities in the power sector within Maharashtra, the Company has recognised revenue of Rs 172.00 crore in respect of earlier years towards carrying cost entitlement on the regulatory assets (net) carried in the books as at 31st March, 2013.

(d) I n the previous year, Jharkhand State Electricity Regulatory Commission (JSERC) had determined the Annual Revenue Requirement (ARR) for Units 2 and 3 at Jojobera for financial year 2011-12 by treating the entire capacity as regulated under JSERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2010. The Company, on the basis of legal opinions obtained, had appealed against the disallowances/deviations at the ATE.

The ATE in its Order dated 20th September, 2012, has disallowed the Company's claim. Accordingly, during the year, the Company has reversed revenue of Rs 43.61 crore including Rs 34.16 crore on account of previous year.

(e) During the previous year, the Maharashtra Electricity Regulatory Commission (MERC) had completed truing-up for the financial years 2009 -10 and 2010 -11 and issued Tariff Orders. In these Tariff Orders, it had disallowed certain claims made by the Company amounting to Rs 86.00 crore and Rs 55.00 crore respectively. The Company has filed an appeal to the Appellate Tribunal for Electricity (ATE) against these disallowances. Based on the earlier favourable ATE Order on similar matters, the Company is confident of ATE allowing its claims and accordingly, the above disallowances have not been recognised in the financial results.

34. In the matter of claims raised by the Company on R-Infra, towards (i) the difference in the energy charges for the period March 2001 to May 2004 and (ii) for minimum off-take charges of energy for the period 1998 to 2000, MERC has issued an Order dated 12th December, 2007 in favour of the Company. The total amount payable by R-Infra, including interest, is estimated to be Rs 323.87 crore as on 31st December, 2007. ATE in its Order dated 12th May, 2008 on appeal by R-Infra, has directed R-Infra to pay the difference in the energy charges amounting to Rs 34.98 crore for the period March 2001 to May 2004. In respect of the minimum off-take charges of energy for the period 1998 to 2000 claimed by the Company from R-Infra, ATE has directed MERC that the issue be examined afresh and after the decision of the Hon'ble Supreme Court in the Appeals relating to the distribution licence and rebates given by R-Infra. The Company and R-Infra had filed appeals in the Hon'ble Supreme Court. The Hon'ble Supreme Court, vide its Order dated 14th December, 2009, has granted stay against ATE Order and has directed R-Infra to deposit with the Hon'ble Supreme Court, a sum of Rs 25.00 crore and furnish bank guarantee of Rs 9.98 crore. The Company had withdrawn the above mentioned sum subject to an undertaking to refund the amount with interest, in the event the Appeal is decided against the Company. On grounds of prudence, the Company has not recognised any income arising from the above matters.

35. Employee Benefits:

(a) The Company makes contribution towards provident fund and superannuation fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund is administered by the Trustees of Tata Power Consolidated Provident Fund and the Superannuation Fund is administered by the Trustees of Tata Power Superannuation Fund. Under the Schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

The Rules of the Company's Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared by the Central Government under para 60 of the Employees' Provident Fund Scheme, 1952, then the shortfall shall be made good by the Company. Having regard to the assets of the fund and the return on the investments, the Company does not expect any shortfall in the foreseeable future.

On account of Defined Contribution Plans, a sum of Rs 28.54 crore (31stMarch,2012 - Rs26.99crore) has been charged to the Statement of Profit and Loss.

(b) The Company operates the following unfunded/funded defined benefit plans: Unfunded:

(i) Ex-Gratia Death Benefits

(ii) Retirement Gifts

(iii) Post Retirement Medical Benefits and

(iv) Pension

Funded:

(i) Gratuity

(c) The actuarial valuation of the present value of the defined benefit obligation has been carried out as at 31st March, 2013. The following tables set out the amounts recognised in the financial statements as at 31st March, 2013 for the above mentioned defined benefit plans:

(i) Net employee benefits expense (recognised in employee cost) for the year ended 31st March, 2013:

31st March, 2013

31st March, 2012

Rs crore Rs crore
Current Service Cost 11.40

9.73

Interest 15.13

12.60

Expected Return on Plan Assets (5.18)

Nil

Actuarial Loss 18.21

12.01

1/5th of Transitional Liability Nil

1.21

Total Expense 39.56

35.55

(ii) Change in the Defined Benefit Obligation during the year ended 31st March, 2013:

31st March, 2013

31st March, 2012

Rs crore Rs crore
Present value of Defined Benefit Obligation as at 1st April as per books 185.97

164.25

Unrecognised Transitional Liability as at 1st April Nil

1.21

Current Service Cost 11.40

9.73

Interest 15.13

12.60

Actuarial Loss (Net) 17.81

12.01

Benefits Paid (Net) (18.08)

(13.83)

Present value of Defined Benefit Obligation as at 31st March 212.23

185.97

Less: Fair Value of Assets at the end of the year 94.38

40.00

Provision for Defined Benefit Obligation as at 31st March as per books 117.85

145.97

 

2012-13 2011-12 2010-11 2009-10 2008-09
Rs crore Rs crore Rs crore Rs crore Rs crore
Defined Benefit Obligation 212.23 185.97 164.25 132.49 123.69
Experience Adjustment on Plan Liabilities 10.79 7.01 19.83 1.60 3.01

The Company has paid Rs 49.60 crore to Tata Power Grautity Fund (31st March, 2012 - Rs 40.00 crore). Of the payment of Rs 49.60 crore, Rs 24.60 crore towards the current year liability (31st March, 2012 - Rs 15.00 crore) and Rs 25.00 crore towards the Opening Liability (31st March, 2012 - Rs 25.00 crore). The balance of the Opening Liability to be funded over a period of 3 years.

(iii) Change in Fair Value of Assets during the year:

31st March, 2013

31st March, 2012

Rs crore Rs crore
Plan Assets at the beginning of the year 40.00

Nil

Expected Return on Plan Assets 5.18

Nil

Actual Company contributions 49.60

40.00

Actuarial Loss (0.40)

Nil

Fair value of plan assets at the end of the year 94.38

40.00

Composition of the plan assets is as follows: Debt Securities - 100%

(iv) Actuarial assumptions used for valuation of the present value of the defined benefit obligations of various benefits are as under:

31st March, 2013 31st March, 2012
Discount Rate 8.00% 8.60%
Salary Growth Rate Management 7.50 % p.a. Management 7.50 % p.a.
Non-Management 6% p.a. Non-Management 6% p.a.
Turnover Rate - Age 21 to 44 years Management 8% p.a. Management 8% p.a.
Non-Management 0.50 % p.a. Non-Management 0.50 % p.a.
Turnover Rate - Age 45 years and above Management 2.50% p.a. Management 2.50% p.a.
Non-Management 0.50% p.a. Non-Management 0.50% p.a.
Pension Increase Rate 3% p.a. 3% p.a.
Mortality Table Indian Assured Lives LIC (1994-96)
Mortality (2006-08) Ult
Annual Increase in Health Cost 6% p.a. 6% p.a.

• Discount rate is based on the prevailing market yields of Indian Government Securities as at the Balance Sheet date for the estimated term of the obligation.

• The estimates of future salary increases, considered in actuarial valuation, take account of the inflation, seniority, promotion and other relevant factors.

(v) Effect of change in assumed health care cost trend rate:

31st March, 2013

31st March, 2012

Rs crore Rs crore Rs crore

Rs crore

1% increase 1% decrease 1% increase 1% decrease
Effect on the aggregate of the service cost and interest cost 0.05 (0.04)

0.09

(0.06)

Effect on defined benefit obligation 1.04 (0.91)

1.23

(1.03)

(vi) The contribution expected to be made by the Company during the financial year 2013-14 has not been ascertained.

36. In respect of the contracts pertaining to the Strategic Engineering Business and Project Management Services, disclosures required as per AS-7 (Revised) are as follows:

(a) Contract revenue recognised as revenue during the year Rs 298.66 crore (31st March, 2012 - Rs 310.74 crore).

(b) In respect of contracts in progress -

(i) The aggregate amount of costs incurred and recognised profits upto 31st March, 2013 - Rs 279.73 crore (31st March, 2012 - Rs 254.50 crore).

(ii) Advances and progress payments received as at 31st March, 2013 - Rs 567.93 crore (31st March, 2012 - Rs 313.01 crore).

(iii) Retention money included as at 31st March, 2013 in Sundry Debtors - Rs 12.53 crore (31st March, 2012 - Rs 12.46 crore).

(c) (i) Gross amount due to customers for contract work as a liability as at 31st March, 2013 - Rs 327.46 crore (31stMarch, 2012 - Rs 219.45 crore). (ii) Gross amount due from customers for contract work as an asset as at 31st March, 2013 - Rs 39.26 crore (31st March, 2012 - Rs 99.32 crore).

37. (a) Total number of electricity units sold and purchased during the year as certified by Management - 16,002 MUs (31stMarch, 2012 -15,240MUs) and 1,378 MUs (31stMarch, 2012 -1,042 MUs).

(b) C.I.F. value of imports:

31st March, 2013

31st March, 2012

Rs crore Rs crore
(i) Capital goods 28.64

232.60

(ii) Components and spare parts 85.44

59.00

(iii) Fuel 2,202.49

2,071.89

(c) Expenditure in foreign currency :

31st March, 2013

31st March, 2012

Rs crore Rs crore
(i) Professional and consultation fees (Revenue) 8.55

6.81

(ii) Professional and consultation fees (Capital) 2.67

4.62

(iii) Interest and issue expenses 81.69

67.17

(iv) Other matters 5.51

6.46

(d) Value of components, stores and spare parts consumed (including fuel consumed and stores consumption included in Repairs and Maintenance):

31st March, 2013

31st March, 2012

Rs crore

Rs crore

(i) Imported 2,980.06 54.23%

2,387.72

48.92%

(ii) Indigenous 2,515.55 45.77%

2,493.13

51.08%

5,495.61 100.00%

4,880.85

100.00%

(e) Remittances by the Company in foreign currencies for dividends (including amounts credited to Non-Resident External Accounts):

31st March, 2013

31st March, 2012

Dividend for the year ended
No of non-resident shareholders 4,796

3,842

No of Equity Shares of Face Value Rs 1 each held 2,51,60,759

2,52,63,900

Amount of Dividend (Rs crore ) 3.15

3.16

(Rs) Earnings in foreign exchange:

31st March, 2013

31st March, 2012

Rs crore Rs crore
(i) Interest 34.99

82.25

(ii) Export of services 4.66

8.83

(iii) Guarantee Commission from Subsidiaries 10.24

7.50

(iv) Dividend 296.55

532.09

(v) Others 13.40

1.11

(g) Expenditure incurred on Research and Development by the Company:

31st March, 2013

31st March, 2012

Rs crore

Rs crore

(i) Revenue Expenditure 0.02

0.16

(ii) Capital Expenditure 26.07

13.41

38. Related Party Disclosures:

Disclosure as required by Accounting Standard 18 (AS-18) - "Related Party Disclosures" are as follows: Names of the related parties and description of relationship:

(a) Related parties where control exists:
Subsidiaries 1) Af-Taab Investment Co. Ltd. (AICL)
2) Chemical Terminal Trombay Ltd. (CTTL)
3) Tata Power Trading Co. Ltd. (TPTCL)
4) Powerlinks Transmission Ltd. (PTL)
5) NELCO Ltd. (NELCO)
6) Maithon Power Ltd. (MPL)
7) Industrial Energy Ltd. (IEL)
8) Tata Power Delhi Distribution Ltd. (TPDDL)
9) Coastal Gujarat Power Ltd. (CGPL)
10) Bhira Investments Ltd. (BIL)
11) Bhivpuri Investments Ltd. (BHIL)
12) Khopoli Investments Ltd. (KIL)
13) Trust Energy Resources Pte. Ltd. (TERL)
14) Energy Eastern Pte. Ltd. ** (EEL)
15) Industrial Power Utility Ltd. (IPUL)
16) Tatanet Services Ltd.** (TNSL)
17) Tata Power Renewable Energy Ltd. (TPREL)
18) PT Sumber Energi Andalan Tbk. ** (SEA)
19) Tata Power Green Energy Ltd. ** (TPGEL)
20) NDPL Infra Ltd. ** (NDPLIL)
21) Dugar Hydro Power Ltd. (DHPL)
22) Tata Power Solar Systems Ltd. (TPSSL) (from 28th June, 2012)
23) Tata Power Jamshedpur Distribution Limited (TPJDL) (from 6th November, 2012)
** Through Subsidiary Companies.
(b) Other related parties (where transactions have taken place during the year) :
(i) Associates 1) Tata Projects Ltd. (TPL)
2) Yashmun Engineers Ltd. (YEL)
(ii) Joint Ventures 1) Tubed Coal Mines Ltd. (TCML)
2) Mandakini Coal Company Ltd. (MCCL)
3) Dagachhu Hydro Power Corporation Ltd. (DHPCL)
4) Cennergi Pty. Ltd. (CPL)
5) OTP Geothermal Pte. Ltd. (OTPGL)
(iii) Promoters holding together with its Subsidiary more than 20% Tata Sons Ltd.
(c) Key Management Personnel Anil Sardana
S. Ramakrishnan
S. Padmanabhan

(d) Details of Transactions:

Rs crore
Particulars Subsidiaries Associates Joint Ventures Key Management Personnel Promoters
Purchase of goods/power 310.49 - - - -

342.54

-

-

-

-

Sale of goods/power 227.70 - - - -

335.16

-

-

-

-

Purchase of fixed assets 3.68 24.78 - - -

5.26

36.18

7.83

-

-

Sale of fixed assets - - - - -

0.06

-

-

-

-

Rendering of services 120.20 0.10 4.65 - 0.11

103.03

0.10

-

-

0.24

Receiving of services 4.54 12.57 - - 0.50

4.78

13.83

0.37

-

0.54

Brand equity contribution - - - - 23.66
- - - -

21.29

Guarantee, collaterals etc given 1,797.81 - 66.67 - -

5,219.73

- - - -
Letter of comfort given - - 27.57 - -
Amount received on buy-back of equity shares 16.00 -

-

-

-

29.23

-

-

-

-

Remuneration paid - - - 10.50 -

-

-

-

11.98

-

Interest income 77.15 0.31 - - -

91.67

1.11

- - -
Dividend received 353.81 9.73 - - 5.34

589.71

11.03

5.24

-

5.34

Dividend paid 0.05 - - - 88.44

0.05

-

-

-

88.44

Guarantee commission earned 10.24 - - - -

7.50

-

-

-

-

Loans given 3,244.16 - - - -

133.56

-

-

-

-

Security deposits given - - - - -
- - - -

0.50

Equity contribution (including advance towards equity contribution and loan converted into equity) @ 1,392.82 - 35.31 - -

1,104.41

100.00

25.70

- -
Redemption of preference shares/debentures - 9.37 - - -
-

109.38

- - -
Purchase of preference shares 255.00 - - - -
Loans repaid (including loan converted into equity) 3,107.51 -

-

- -

500.48

- - - -
Coal stock given on loan - - - - -

69.44

- - - -
Coal stock loan repaid 69.44 - - - -
Deposits taken 4.90 -

-

- -

64.00

- - - -
Deposits repaid 68.90 - - - -
Balances outstanding
Security deposits given - - - - 0.50
- - - -

0.50

Other receivables (net of provisions) 52.78 0.33 3.95 - -

272.47

0.03

5.00

-

0.02

 

Rs crore
Particulars Subsidiaries Associates Joint Ventures Key Management Personnel Promoters
Loans given (including interest thereon) 1,551.71 1.27

-

-

-

1,397.91

1.27

- - -
Loans provided for as doubtful advances - 1.27 - - -
-

1.27

- - -
Preference shares/debentures outstanding 277.05 - - - -

-

9.37

22.05

-

-

Advance towards equity 252.78 - - - -

141.58

-

5.00

- -
Guarantees, collaterals etc outstanding 12,710.74 - 98.29 - 31.10

11,383.13

-

31.62

-

409.51

Letter of comfort outstanding - - 27.57 - -
Other payables 34.05 5.36 - - 24.31

72.76

5.39

0.18

-

21.72

@ Including shares pursuant to loan being converted to equity. Note: Previous year's figures are in italics.

(e) Details of material related party transactions:

(i) Subsidiaries : Rs crore
Particulars AICL IEL PTL TPTCL MPL EEL BHIL BIL CTTL KIL TERL CGPL TPREL TPDDL
Purchase of goods/power - - - - - - -

-

-

-

284.11 - -

-

- - -

104.92

-

-

-

-

-

-

237.62

- - -
Sale of goods/power - - - 225.10 - - - - - - - - - -
- - -

332.93

- - - - - - - - - -
Purchase of fixed assets - - - - - - - - - - 3.68 - - -

-

-

-

-

-

-

-

-

-

-

3.90

-

-

1.36

Sale of fixed assets - - - - - - - - - - - - - -
- - - -

0.06

- - - - - - - - -
Rendering of services - 34.86 - - 48.49 - - - - - - - - -
-

19.17

-

-

47.69

-

-

14.34

- - - - - -
Receiving of services - - - - - - - - 0.53 - - 2.58 - 0.70
- - - - - - - -

1.62

-

-

2.91

- -
Guarantee and collaterals
etc given - - - - 135.00 209.63 - - - - - 1,308.11 - -
- - - - - - -

4,607.10

- - - - - -
Amount received on buy-back
of equity shares 16.00 - - - - - - - - - - - - -

21.23

-

-

-

-

-

-

-

8.00

- - - - -
Interest Income - - - - 14.31 - - 13.51 - 20.99 - - 10.60 -
- - - - - - -

66.24

-

-

-

19.57

- -
Dividend received - - 50.12 - - - 296.55 - - - - - - -
- - - - - -

532.09

- - - - - - -
Guarantee commission earned - - - - - - - 7.37 - 1.24 1.38 - - -
- - - - - - -

6.38

-

1.12

- - - -
Loans given - - - 625.00 - - - - - 570.60 - 955.10 - 725.00
- - - -

50.00

-

-

-

-

-

-

-

71.25

-
Coal stock given on loan - - - - - - - - - - - - - -
-

69.44

- - - - - - - - - - - -
Coal stock given on loan repaid

-

69.44 - - - - - - - - - - - -
Deposit taken - 4.90 - - - - -

-

-

-

-

-

-

-

-

64.00

- - - - - - - - - - - -
Deposit repaid

-

68.90 - - - - -

-

-

-

-

-

-

-

Dividend paid - - - - - - -

-

0.05 - -

-

-

-

- - - - - - - -

0.05

- - - - -
Equity contribution (including
advance towards equity contribution
and loan converted into equity) - - - - - - - - - 255.17 - 991.53 - -
- - - - - - - - - - -

939.58

- -
Purchase of preference shares

-

- - - - - - - - - - - - 255.00
Loans repaid (including loan
converted into equity) - - - 575.00 - - - 1,023.60 - - - 767.41 - 725.00

-

- - - - - -

365.63

-

134.85

- - - -

(ii) Associates and Joint Ventures:

Associates

Joint Ventures

Particulars PFL TPL YEL RUIL CPL MCCL OTP TCML DHPCL
Purchase of fixed assets

-

24.78

-

-

-

-

-

-

-

-

36.18

-

-

-

- - - -
Rendering of services - - 0.10 - 0.83 - 3.82 - -
- -

0.10

-

-

-

-

-

-
Receiving of services - - 12.57 - - - - - -

-

-

13.82

-

-

- - - -
Interest income - 0.31 - - - - - - -

-

1.06

- - - - - - -
Dividend received

-

9.68

-

-

-

-

-

-

-

-

9.68

-

1.31

-

- - - -
Loan given

-

0.08 - - - - - - -
Guarantee, collaterals etc given - - - - - 66.67 - - -

-

-

-

-

-

-

-

-

-

Letter of comfort given - - - - 27.57 - - - -
Equity contribution 5.00 7.20 23.11

100.00

-

-

-

-

6.00

-

-

17.71

Redemption of preference shares/debentures 9.37

100.00

9.38

- - - - - - -
Note: Previous year's figures are in italics

39. Disclosures as required under clause 32 of listing agreement:

Loans and advances (excluding advance towards equity) in the nature of loans given to Subsidiaries and Associates:

Name of the Company Relationship Amount Outstanding as at the year-end ** Maximum Amount Outstanding during the year** Investments in Company's Shares
Rs crore Rs crore (Nos.)
Tata Power Renewable Energy Ltd. (Long-term) Subsidiary 121.26 130.01 Nil

71.25

71.25

Nil

Coastal Gujarat Power Ltd. (Long-term) ### Subsidiary 400.00 1,167.41 Nil

212.31

212.31

Nil

Bhira Investments Ltd. (Short-term) Subsidiary Nil 1,139.86 Nil

1,023.60

1,366.83

Nil

Khopoli Investments Ltd. (Long-term) *** Subsidiary 543.80 572.17 Nil

Nil

136.14

Nil

Industrial Energy Ltd. (Short-term) Subsidiary 171.75 171.75 Nil

70.32

70.32

Nil

Maithon Power Ltd. (Long-term) Subsidiary 123.50 123.50 Nil

50.00

50.00

Nil

Chemical Terminal Trombay Ltd. (Long-term) Subsidiary 1.00 1.00 4,00,580

1.00

1.00

4,00,580

Tata Power Trading Company Ltd. (Short-term) Subsidiary 50.00 165.00 Nil

Nil

Nil

Nil

Tata Power Delhi Distribution Ltd. (Short-term) Subsidiary Nil 225.00 Nil

Nil

Nil

Nil

Powerlinks Transmission Ltd. (Short-term) Subsidiary 41.00 41.00 Nil

Nil

Nil

Nil

Tata Power Jamshedpur Distribution Ltd. (Short-term) Subsidiary 3.00 3.00 Nil

Nil

Nil

Nil

NELCO Ltd. (Short-term) Subsidiary 12.70 20.45 Nil

Nil

Nil

Nil

Nelito Systems Ltd. (Long-term) & Associate 1.27 1.27 Nil

1.27

1.27

Nil

** Excluding interest accrued.

*** No repayment schedule.

### Right to convert to equity and the Company has waived the interest on loan from 1st April, 2012. & Provided for.

Note: Previous year's figures are in italics.

40. Derivative Instruments and Unhedged foreign currency exposures:

(i) Derivative Instruments :

The following derivative positions are open as at 31st March, 2013. These transactions have been undertaken to act as economic hedges for the Company's exposures to various risks in foreign exchange markets and may/may not qualify or be designated as hedging instruments. The accounting for these transactions is stated in Note 2.1(n) and 2.1(o).

Forward exchange contracts (being derivative instrument), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

Outstanding forward exchange contracts and currency option contracts entered into by the Company as on 31st March, 2013:

31st March, 2013

31st March, 2012

Buy / Sell Foreign Currency (in Millions) Rs crore

Foreign Currency (in Millions)

Rs crore
Forward Contracts (Buyer's credit) Buy USD 203.74 1,108.14

USD 147.68

755.95

Currency Option Buy USD 62.00 337.22

Nil

Nil

(ii) The year-end foreign currency exposures that have not been hedged by a derivative instrument are given below:

31st March, 2013

31st March, 2012

Foreign Currency (in Millions) Rs crore

Foreign Currency (in Millions)

Rs crore
(a) Amounts receivable in foreign currency on account of the following:
(i) Export of goods USD 2.48 13.48

USD 2.92

14.92

(ii) Loan receivable from subsidiaries USD 100.00 543.80

USD 200.00

1,023.60

(iii) Interest receivable USD 3.92 21.34

USD *

0.12

(iv) Other advances receivable from subsidiaries USD 1.84 9.98

USD 0.75

3.83

(b) Amounts payable in foreign currency on account of the following:
(i) Import of goods and services USD 29.78 161.99

USD 74.86

383.19

EURO 0.18 1.28

EURO 0.93

6.36

GBP 0.28 2.31

GBP 0.36

2.93

(ii) Capital imports EURO 0.27 1.88

EURO 4.30

29.38

JPY 141.60 8.21

JPY 143.61

8.97

USD 0.08 0.43

USD 0.23

1.20

GBP * 0.03

GBP 0.10

0.81

CHF * 0.01

CHF 0.42

2.41

(iii) Interest payable USD 3.72 20.23

USD 3.20

16.37

(iv) Loans payable USD 310.31 1,687.76

USD 362.21

1,854.16

(v) Premium payable on borrowings USD 28.41 154.52

USD 28.41

145.43

(c) Bank balances SGD 0.98 4.32

SGD 0.07

0.28

USD 0.83 4.53

USD 2.78

14.24

TAKA 0.23 0.01

TAKA 0.25

0.01

41. Segment Accounting:

The Company has identified business segments as its primary segment. Business segments are as below:

Rs crore

Power Others Eliminations Total
REVENUE
External Revenue 9,157.96 409.32 - 9,567.28

8,131.78

364.06

-

8,495.84

RESULT
Total Segment Results 1,681.13 44.89 - 1,726.02

1,215.79

32.39

-

1,248.18

Finance Costs (678.25)

(514.87)

Unallocable Income net of Unallocable Expense 655.61

949.56

Income Taxes (678.69)

(513.14)

Profit after Tax 1,024.69

1,169.73

OTHER INFORMATION
Segment Assets 13,590.30 704.36 - 14,294.66

11,715.30

634.45

-

12,349.75

Unallocable Assets 13,798.20

12,631.55

Total Assets 28,092.86

24,981.30

Segment Liabilities 2,125.75 558.31 - 2,684.06

2,044.74

524.75

-

2,569.49

Unallocable Liabilities 11,730.17

9,154.82

Total Liabilities 14,414.23

11,724.31

Capital Expenditure 774.56 40.98 - 815.54

1,182.88

45.69

-

1,228.57

Non-cash Expenses other than Depreciation/Amortisation 14.49 13.48 - 27.97

4.15

7.44

-

11.59

Depreciation/Amortisation 351.08 13.02 - 364.10

562.69

7.66

-

570.35

Types of products and services in each business segment: Power - Generation, Transmission and Distribution.

Others - Defence Engineering, Project Contracts/Infrastructure Management Services, Coal Bed Methane and Property Development. Note: Previous year's figures are in italics.

42. Earnings Per Share:

31st March, 2013

31st March, 2012

Basic
Net profit for the year (Rs crore ) 1,024.69

1,169.73

(Less)/Add : Contingencies Reserve (provided)/writeback for the year (Rs crore ) (7.00)

6.00

Add : Special Reserve writeback for the year (Rs crore ) Nil

13.00

1,017.69

1,188.73

Less : Distribution on Unsecured Perpetual Securities (Rs crore ) 199.62

113.61

Net profit for the year attributable to the equity shareholders (Rs crore ) 818.07

1,075.12

The weighted average number of Equity Shares for Basic Earnings Per Share (Nos) 237,53,75,440

237,53,75,440

Par value Per Share (in f) - Refer Note 3(a) 1.00

1.00

Basic Earnings Per Share (in f) 3.44

4.53

Diluted
Net profit for the year attributable to the equity shareholders (Rs crore ) 818.07

1,075.12

Add : Interest Expense and Exchange Fluctuation on FCCB (Net) (Rs crore ) 77.73

47.30

Profit attributable to equity shareholders on dilution (Rs crore ) 895.80

1,122.42

The weighted average number of Equity Shares for Basic Earnings Per Share (Nos) 237,53,75,440

237,53,75,440

Add : Effect of potential Equity Shares on Conversion of FCCB (Nos) 9,64,40,896

9,64,40,896

The weighted average number of Equity Shares for Diluted Earnings Per Share (Nos) 247,18,16,336

247,18,16,336

Par value Per share (in f) 1.00

1.00

Diluted Earnings Per Share (in f) - Anti Dilutive 3.62

4.54

Diluted Earnings Per Share restricted to Basic Earnings Per Share (in f) 3.44

4.53

43. Disclosures as required by Accounting Standard 29 (AS-29) "Provisions, Contingent Liabilities and Contingent Assets" as at 31st March, 2013:

The Company has made provision for various contractual obligations based on its assessment of the amount it estimates to incur to meet such obligations, details of which are given below:

Rs crore

Particulars Opening Balance Provision during the year Payments made during the year Reversal / Regrouped during the year Closing Balance
Provision for Warranties 12.90 16.83 (0.62) (9.09) 20.02

6.86

12.11

(0.71)

(5.36)

12.90

Provision for Premium on Redemption of FCCB 145.43 9.09 @ - - 154.52

126.94

18.49 @

-

-

145.43

Provision on Premium on Redemption of Debentures 134.70 - - - 134.70

134.70

-

-

-

134.70

@ On account of exchange loss. Note: Previous year's figures are in italics.

44. Interest in Joint Ventures:

The Company's interest, as a venturer, in jointly controlled entity is:

Name of the Company Country of Incorporation Principal activities Percentage of Holding
Tubed Coal Mines Ltd.(TCML) India Coal Mining 40%
Tata Power Solar Systems Ltd. (TPSSL) [formerly known as Tata BP Solar India Ltd. (TBSIL)] Upto 27th June, 2012. India Solar Photovoltaic Systems and its components 49%
Mandakini Coal Company Ltd. (MCCL) India Coal Mining 33.33%
Dagachhu Hydro Power Corporation Ltd. (DHPCL) Bhutan Hydro Power Generation 26%

The Company's interest in these Joint Ventures is reported as Non Current Investments (Note 14) and stated at cost less provision for diminution other than temporary, if any, in the value of such investments. The Company's share of each of the assets, liabilities, incomes and expenses, etc. (each without elimination of the effect of transactions between the Company and the Joint Venture) related to its interest in these Joint Ventures (in case of MCCL and DHPCL based on unaudited accounts) are as under:

31st March, 2013

31st March, 2012

Rs crore

Rs crore

I NON-CURRENT LIABILITIES
a) Long-term Borrowings 169.02

145.16

b) Deferred tax Liabilities (net) Nil

13.68

c) Other Long-term Liabilities Nil

2.29

d) Long-term Provisions 0.18

7.06

(A) 169.20

168.19

II CURRENT LIABILITIES
a) Short-term Borrowings 5.97

46.97

b) Trade Payables 0.31

55.88

c) Other Current Liabilities 10.74

92.56

d) Short-term Provisions 0.03

14.10

(B) 17.05

209.51

(A+B) 186.25

377.70

III NON - CURRENT ASSETS
a) Fixed Assets 259.77

402.82

b) Long-term Loans and Advances 60.25

26.84

c) Other Non-current Assets Nil

0.63

(C) 320.02

430.29

IV CURRENT ASSETS
a) Inventories Nil

59.96

b) Trade Receivables Nil

102.79

c) Cash and Bank Balances 11.87

49.09

d) Short-term Loans and Advances 0.36

7.01

e) Other Current Assets Nil

44.77

(D) 12.23

263.62

(C+D) 332.25

693.91

V REVENUE
a) Revenue from Operations 42.17

457.01

b) Other Income 3.48

2.82

45.65

459.83

VI EXPENSES
a) Cost of Material 35.01

362.51

b) Manufacturing and Other Expenses 21.64

72.33

c) Depreciation/Amortisation 5.83

24.06

d) Finance Costs 3.42

14.85

e) Tax Expense (6.99)

(4.46)

58.91

469.29

VII LOSS AFTER TAX (13.26)

(9.46)

VIII OTHER MATTERS
a) Contingent Liabilities 5.38

7.40

b) Capital Commitments 81.48

208.37

86.86

215.77

45. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure. Figures below Rs 50,000 are denoted by

   
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