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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): 22.74
ISIN Demat:INE245A01021Div Yield %:1.73EPS   (TTM) :3.3
Book Value (Rs):58.3988067Market Cap (RsCr):20298.24Face Value (Rs) :1
  Change Company 

1. Background:

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

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

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

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

With effect from 1st April, 2000, Andhra Valley and Tata Hydro merged into Tata Power to result in one large unified entity. The Company has an installed generation capacity of 3035 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 specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The Financial Statements have been prepared on accrual basis under the historical cost convention, except for Fixed Assets at Strategic Engineering Division, that are carried at revalued amount. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year, except for change in the accounting policy for depreciation at its Strategic Engineering Division (SED), as more fully described in Note 2.2.

(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/loss 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, except Tangible Assets at its Strategic Engineering Division 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 the Accounting Standard-11 (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 on fixed assets after its purchase/completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

The Company revalued all its Tangible assets that existed on 1st April, 2013 at its Strategic Engineering Division. The revalued assets are carried at the revalued amounts less accumulated depreciation and impairment losses, if any. Increase in the net book value on such revaluation is credited to "Revaluation reserve account" except to the extent such increase is related to and not greater than a decrease arising from a revaluation/impairment that was previously recognised in the Statement of Profit and Loss, in which case such amount is credited to the Statement of Profit and Loss. Decrease in book value on revaluation is charged to the Statement of Profit and Loss except where such decrease relates to a previously recognised increase that was credited to the Revaluation reserve, in which case the decrease is charged to the Revaluation reserve to the extent the reserve has not been subsequently reversed/utilised.

(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.

(iii) Capital Work-in-Progress:

Projects under which tangible fixed assets are not yet 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.

(f) Impairment of Assets:

The carrying value of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The impairment loss is recognised as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

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 (other than a revalued 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, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognised.

(g) Depreciation/Amortisation:

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on Tangible fixed assets in respect of electricity business is provided at the rate as well as methodology notified by the Central Electricity Regulatory Commission (Terms and Conditions of Tarifi) Regulations, 2014 generally in accordance with the provision of Schedule II of the Companies Act, 2013.

In respect of assets relating to other business of the Company, depreciation on Tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following category of assets, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, etc.

Motor Vehicles, Launches, Barges - 5 years

Intangible assets are amortised on straight line method over their estimated useful life or 5 years, whichever is lower.

The estimated useful life of the Intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any.

(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, over the lease term.

(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 after providing for obsolescence and other losses where considered necessary. 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 applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

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 highly 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 substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that suficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be suficient future taxable income available to realise the assets. Deferred tax assets and liabilities are ofiset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set ofi. Deferred tax assets are reviewed at each balance sheet date for their realisability.

Current and Deferred Tax relating to items directly recognised in reserves are recognised in reserves 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/intangible fixed assets.

(m) Warranty Expenses:

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

(n) Foreign Currency Transactions and Translations: Initial recognition:

Transactions in foreign currencies entered into by the Company 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.

Transactions in foreign currencies entered into by the Company’s 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.

Net investment in non-integral foreign operations is 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.

Transactions of non-integral foreign operations are translated 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 at the balance sheet date:

Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Foreign currency monetary items (other than derivative contracts) of the Company’s integral foreign operations outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company’s integral foreign operations are carried at historical cost.

Foreign currency monetary items (other than derivative contracts) of the Company’s net investment in non-integral foreign operations outstanding at the balance sheet date are restated at the year-end rates.

All assets and liabilities of non-integral foreign operations are translated at the year-end rates. Treatment of exchange differences:

Exchange differences arising on settlement/restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Exchange differences arising on settlement/restatement of short-term foreign currency monetary assets and liabilities of the Company’s integral foreign operations are recognised as income or expense in the Statement of Profit and Loss.

The exchange differences on restatement of long-term receivables from non-integral foreign operations that are considered as net investment in such operations is accounted as per policy for long-term foreign currency monetary items stated in para below until disposal/recovery of such net investment, in which case the accumulated balance in "Foreign currency translation reserve" is recognised as income/expense in the same period in which the gain or loss on disposal/recovery is recognised.

The exchange differences relating to non-integral foreign operations are accumulated in a "Foreign currency translation reserve" until disposal of the operation, in which case the accumulated balance in "Foreign currency translation reserve" is recognised as income/expense in the same period in which the gain or loss on disposal is recognised.

The exchange differences arising on settlement/restatement of long-term foreign currency monetary items are capitalised as part of the depreciable fixed assets to which the monetary item relate and depreciated over the remaining useful life of such assets. If such monetary items do not relate to acquisition of depreciable fixed assets, the exchange difference is amortised over the maturity period/upto the date of settlement of such monetary items, whichever is earlier, and charged to the Statement of Profit and Loss. The unamortised exchange difference is carried under Reserves and Surplus as "Foreign currency monetary item translation difference account" net of the tax effect thereon, where applicable.

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. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or as expense in the period in which such cancellation or renewal is made. 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 in foreign currency. Forward 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, Superannuation Fund, Gratuity Scheme, Pension (including Director pension), Post Retirement Medical Benefits, Retirement Gift, Compensated Absences, Hospitalisation in Service and Long-term Service Awards. 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 and when services are rendered by the employees.

Defined benefit plans:

For defined benefit plans in the form of Gratuity, Ex-Gratia Death Benefits, Retirement Gifts, Post Retirement Medical Benefits and Pension (including Director pension), 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. Hospitalisation in Service and 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) respectively on the basis of Tariff Orders issued by them. In respect of such surplus/deficit, appropriate adjustments as stipulated under the regulations are made during the year. Further, any adjustments that may arise on annual performance review by MERC and JSERC under the aforesaid Tariff Regulations is 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.

(viii) Revenue from Sale of Carbon Credit and Renewable Energy Certificate is recognised at the time of sale. (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 Bonds, Debentures and Euro Notes are amortised over the tenure.

(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. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

2.2. During the year, the Company has changed the method of providing depreciation on Tangible fixed assets at its Strategic Engineering Division. Depreciation which was hitherto provided on written down value method is now provided on straight line method based on the useful life provided in Schedule II to the Companies Act, 2013. As a result of the change, the charge on account of depreciation for the year ended 31st March, 2015 is lower by Rs. 18.46 crore (including write back of depreciation of Rs. 22.86 crore upto 31st March, 2014).

2.3. Pursuant to the enactment of the Companies Act, 2013 (the ‘Act’), the Company has, effective 1st April, 2014, reviewed and revised the estimated useful life of certain fixed assets, generally in accordance with the provisions of Schedule II of the Act. Further, depreciation in respect of certain power plants which were hitherto charged on a straight line method at rates provided in the power purchase agreements is from 1st April, 2014, charged on straight line method over the balance useful life using the methodology as notified by the Central Electricity Regulatory Commission (Terms and Conditions of Tarifi) Regulations, 2014. The consequential impact (after considering the transitional provision specified in Schedule II) on the depreciation charged and on the results for the year ended 31st March, 2015 is not material.

In earlier years, the deferred tax liability on timing difference relating to depreciation in respect of the above referred power plants was not recognised since the timing difference was expected to reverse during the tax holiday period in accordance with the Accounting Standard-22 (AS-22) - "Accounting for Taxes on Income". As a result of the change in depreciation as above, the Company has, during the year ended 31st March, 2015, recognised deferred tax liability of Rs. 23.00 crore in respect of the timing difference which is now expected to reverse after the tax holiday period.

2.4. The Company had, during the previous year ended 31st March, 2014, changed its accounting policy in respect of Tangible assets at its Strategic Engineering Division. These Tangible assets which were hitherto carried at cost have been revalued as at 1st April, 2013. The revaluation is based on a valuation made by an independent valuer using the Depreciated Replacement Cost Method. Accordingly, the gross book value of such assets and the accumulated depreciation as at 1st April, 2013 had increased by Rs. 234.98 crore and Rs. 7.59 crore respectively and Rs. 227.39 crore had been credited to the Revaluation Reserve.

2.5. In an earlier 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, 2015 is Rs. 128.56 crore (31st March, 2014 - Rs. 169.60 crore). The unamortised portion carried forward as at 31st March, 2015 is Rs. 243.60 crore (31st March, 2014 - Rs. 297.64 crore).

3. Shareholders’ Funds - Share Capital
As at 31st March, 2015

As at 31st March, 2014

Number Rs. crore

Number

Rs. crore
Authorised
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 29,80,316 shares (31st March, 2014 - 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] 276,17,00,970 276.17

242,94,70,840

242.95

Subscribed and Paid-up
Equity Shares fully Paid-up [excluding 29,80,316 shares (31st March, 2014 - 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] 270,46,25,254 270.46

237,30,72,360

237.31

Less: Calls in arrears [including Rs. 0.01 crore (31st March, 2014 - Rs. 0.01 crore) in respect of the erstwhile The Andhra Valley Power Supply Company Limited and the erstwhile The Tata Hydro-Electric Power Supply Company Limited] 0.04

0.04

270.42

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 270.48

237.33

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

As at 31st March, 2015

As at 31st March, 2014

Equity Shares Number Rs. crore

Number

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

237,47,24,660

237.33

Issued during the year 33,15,52,894 33.15

Nil

Nil

Outstanding at the end of the year 270,62,77,554 270.48

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, 2015, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 1.30 per share of Face Value of Rs. 1/- each (31st March, 2014 - Rs. 1.25 per share).

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

As at 31st March, 2015

As at 31st March, 2014

Equity Shares of Rs. 1/- each fully paid Number % Holding

Number

% Holding

Tata Sons Limited 82,18,99,682 30.39

70,75,11,570

29.81

Life Insurance Corporation of India 35,48,05,781 13.12

29,93,67,181

12.62

Matthews Pacific Tiger Fund 16,75,45,436 6.19

12,75,60,510

5.38

(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 had an option to convert these Bonds into Equity Shares, at an initial conversion price, subject to adjustment in certain circumstances, 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 Company has redeemed the FCCBs on 21st November, 2014 (the redemption date) at 109.47% of their principal amount together with accrued and unpaid interest.

(e) The Company, vide its Letter of Ofier dated 19th March, 2014, ofiered upto 33,22,30,130 Equity Shares of Face Value of Rs. 1/- each at a price of Rs. 60/- per Equity Share (including Share Premium of Rs. 59/- per Equity Share) for an amount aggregating to Rs. 1,993.38 crore to the existing Equity Shareholders of the Company on rights basis in the ratio of 7 Equity Shares for every 50 Equity Shares held by the Equity Shareholders on the record date i.e. 20th March, 2014. The issue opened on 31st March, 2014 and closed on 15th April, 2014. On 25th April, 2014 the Company has allotted 33,15,52,894 Equity Shares, the remaining 6,77,236 Equity Shares being kept in abeyance.

4. Shareholders’ Funds - Reserves and Surplus

As at

As at

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
Capital Reserve 61.66

61.66

Revaluation Reserve (Refer Note 2.4)
Opening Balance 224.79

Nil

Add: Created during the year Nil

227.39

Less: Amount transferred to Depreciation Fund consequent to change in accounting policy (Refer Note 2.2) 2.48

Nil

Less: Amount transferred to Depreciation during the year (Refer Note 13) Nil

2.60

Closing Balance 222.31

224.79

Capital Redemption Reserve 1.60

1.60

Securities Premium Account
Opening Balance 3,641.51

3,643.41

Add: Share Premium collected during the year 1,956.17

Nil

Less: Issue Expenses pertaining to Rights Issue 22.82

1.90

Less: Issue Expenses pertaining to Debenture Issue 2.38

Nil

Closing Balance 5,572.48

3,641.51

Debenture Redemption Reserve
Opening Balance 847.86

715.01

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

132.85

Less: Amount transferred to Surplus in Statement of Profit and Loss 413.20

Nil

Closing Balance 434.66

847.86

Foreign Currency Translation Reserves (Net)
Opening Balance (26.03)

(139.37)

Less: Effect of foreign exchange rate variations during the year
[including deferred tax Rs. Nil (31st March, 2014 - Rs. 27.58 crore) and current tax Rs. Nil
(31st March, 2014 - Rs. 30.66 crore)] 14.57

113.34

Closing Balance (11.46)

(26.03)

Foreign Currency Monetary Item Translation Difference Account
Opening Balance (136.01)

(147.49)

Add: Effect of foreign exchange rate variations during the year (25.08)

(139.33)

Less: Amortised during the year 109.17

150.81

Closing Balance (51.92)

(136.01)

General Reserve
Opening Balance 3,688.05

3,592.64

Add: Amount transferred from Surplus in Statement of Profit and Loss 101.03

95.41

Closing Balance 3,789.08

3,688.05

Surplus in Statement of Profit and Loss
Opening balance 3,345.31

3,076.00

Add: Profit for the year 1,010.29

954.08

Reversal of additional Income-tax on Dividend in respect of earlier year 24.72

28.54

Transfer from Debenture Redemption Reserve 413.20

Nil

Less: Distribution on Unsecured Perpetual Securities [Net of tax Rs. 58.12 crore (31st March,
2014 - Rs. 58.12 crore)] 112.88

112.88

Proposed Dividend [Rs. 1.30 per share (31st March, 2014 - Rs. 1.25 per share)] 351.99

338.45

Additional Income-tax on Dividend 32.34

24.72

Transfer to Contingencies Reserve Fund 10.00

9.00

Transferred on account of change in useful life of assets (Refer Note 2.3) [Net of Deferred
Tax Rs. 3.89 crore (31st March, 2014 - Rs. Nil)] 7.55

Nil

Transfer to Debenture Redemption Reserve Nil

132.85

Transfer to General Reserve 101.03

95.41

832.42

269.31

Closing Balance 4,177.73

3,345.31

Total 14,196.14

11,648.74

5. Unsecured Perpetual Securities

As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Unsecured Perpetual Securities 1,500.00

1,500.00

Total 1,500.00

1,500.00

In an earlier 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 these Securities are 11.40% with a step up provision if the Securities are not called after 10 years. The distribution on the Securities may be deferred at the option of the Company, if during the six months preceding the relevant distribution payment date, the Company has made no payment on, or redeemed or repurchased, any securities ranking pari passu with, or junior to the instrument. As these Securities are perpetual in nature and ranked senior only to the Share Capital of the Company and the Company does not have any redemption obligation, these are considered to be in the nature of equity instruments and are not classified as "Debt" and the distribution on such Securities is not considered under "Finance Costs".

6. Statutory Consumer Reserves

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

As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Tarifis and Dividends Control Reserve 22.43

22.43

Contingencies Reserve Fund
Opening Balance 76.00

67.00

Add: Amount transferred from Surplus in Statement of Profit and Loss 10.00

9.00

Closing Balance 86.00

76.00

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 623.23

613.23

7. Long-term Borrowings

As at 31st March, 2015

As at 31st March, 2014

Non-current Current

Non-current

Current

Rs. crore Rs. crore Rs. crore Rs. crore
Secured
Redeemable Non-Convertible Debentures
(a) 9.15% Series 2025 170.00 16.00

186.00

16.00

(b) 9.15% Series 2025 225.00 25.00

250.00

25.00

(c) 9.40% Series 2023 210.00 Nil

210.00

Nil

(d) 10.10% Series 2019 500.00 Nil

500.00

Nil

(e) 10.40% Series 2019 500.00 Nil

500.00

Nil

(f) 7.10% Series 2015 Nil 180.00

180.00

240.00

1,605.00 221.00

1,826.00

281.00

Term Loans
From Banks
(g) HDFC Bank 1,058.75 41.25

649.00

30.00

(h) IDBI Bank 517.50 35.00

552.50

35.00

(i) Kotak Mahindra Bank 320.51 24.25

215.00

25.50

1,896.76 100.50

1,416.50

90.50

From Others
(j) Asian Development Bank 57.02 12.67

69.69

12.67

(k) Indian Renewable Energy Development
Agency Limited 336.65 35.13

371.78

35.13

(l) Infrastructure Development Finance Company
Limited 1,058.10 90.10

1,148.20

90.10

(m) Export Import Bank of India Nil 0.31

0.31

4.45

1,451.77 138.21

1,589.98

142.35

(A) 4,953.53 459.71

4,832.48

513.85

Unsecured
Redeemable Non-Convertible Debentures
(n) 10.75% Series 2073 1,500.00 Nil

1,500.00

Nil

(o) 9.48% Series 2019 500.00 Nil

Nil

Nil

(p) 9.32% Series 2017 1,000.00 Nil

Nil

Nil

3,000.00 Nil

1,500.00

Nil

Bonds
(q) 8.50% Euro Notes (2017) 372.21 Nil

356.68

Nil

(r) 1.75% Foreign Currency Convertible Bonds (2014)
[Refer Note 3 (d)] Nil Nil

Nil

1,796.70

372.21 Nil

356.68

1,796.70

Term Loans
From Banks
(s) ICICI Bank 2.90 5.80

8.70

5.80

(t) JP Morgan Chase Bank 200.00 Nil

200.00

Nil

(u) BNP Paribas 210.00 Nil

210.00

Nil

412.90 5.80

418.70

5.80

Deferred Payment Liabilities
(v) Sales Tax Deferral 56.99 11.15

68.13

8.32

(B) 3,842.10 16.95

2,343.51

1,810.82

Total (A + B) 8,795.63 476.66

7,175.99

2,324.67

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 movable and immovable properties in and outside Maharashtra, except assets of windmill projects, present and future.

(v) The Debentures mentioned in (f) have been secured by a charge on land in Village Takve Khurd (Maharashtra), movable and immovable properties in and outside Maharashtra, as also all transmission stations/lines, receiving stations and sub-stations in Maharashtra, except assets of windmill projects, present and future. (vi) The loans from HDFC Bank and IDBI Bank, mentioned in (g) and (h) respectively have been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both present and future) including movable machinery, machinery spares, tools and accessories. (vii) The loan from Kotak Mahindra Bank mentioned in (i) 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 movable machinery, machinery spares, tools and accessories.

(viii) The loans from Asian Development Bank and Indian Renewable Energy Development Agency Limited mentioned in (j) and (k) respectively have been secured by a first charge on the tangible movable properties, plant & machinery and immovable properties situated at Khandke, Brahmanvel and Sadawaghapur in Maharashtra. (ix) The loan from Infrastructure Development Finance Company Limited mentioned in (l) have been secured by a charge on the movable 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 (m) has been secured by receivables (present and future), book debts and outstanding monies.

Redemption

(i) The Debentures mentioned in (a) are redeemable at par in 14 annual installments of Rs. 16 crore each and 1 installment of Rs. 26 crore commencing from 18th September, 2011.

(ii) The Debentures mentioned in (b) are redeemable at par in 10 annual installments of Rs. 25 crore each and 5 annual installments of Rs. 20 crore each commencing from 23rd July, 2011.

(iii) The Debentures mentioned in (c) are fully 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 fully 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 (f) are redeemable at premium in 3 installments amounting to Rs. 180 crore, Rs. 240 crore and Rs. 180 crore each at the end of 9th, 10th and 11th year respectively from 18th October, 2004.

(vi) The first 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 and The second loan from HDFC Bank mentioned in (g) is redeemable at par in 40 quarterly installments of Rs. 5.63 crore each commencing from 16th November, 2015 and 4 quarterly installments of Rs. 18.75 crore each commencing from 16th November, 2025 and The third loan from HDFC Bank mentioned in (g) is redeemable at par in 40 quarterly installments of Rs. 6.56 crore each commencing from 24th September, 2016 and 4 quarterly installments of Rs. 21.88 crore each commencing from 24th September, 2026.

(vii) The loan from IDBI Bank of Rs. 300 crore mentioned in (h) is redeemable at par in 46 quarterly installments of Rs. 3.75 crore each commencing from 1st October, 2010 and 1 installment of Rs. 127.50 crore on 1st April, 2022 and The second loan from IDBI Bank of Rs. 400 crore mentioned in (h) is redeemable at par in 36 quarterly installments of Rs. 5 crore each commencing from 1st April, 2011 and 1 installment of Rs. 220 crore on 1st April, 2020.

(viii) The first loan from Kotak Mahindra Bank mentioned in (i) 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 and The second loan from Kotak Mahindra Bank mentioned in (i) is redeemable at par in 40 quarterly installments of Rs. 5.63 crore each commencing from 14th November, 2015 and 4 quarterly installments of Rs. 18.75 crore each commencing from 14th November, 2025 and The third loan from Kotak Mahindra Bank mentioned in (i) is redeemable at par in 40 quarterly installments of Rs. 4.06 crore each commencing from 30th June, 2017 and 4 quarterly installments of Rs. 21.88 crore each commencing from 30th June, 2027.

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

(x) The loan from Indian Renewable Energy Development Agency Limited of Rs. 95 crore mentioned in (k) is redeemable at par in 26 semi-annual installments commencing from 15th December, 2007 and The second loan from Indian Renewable Energy Development Agency Limited of Rs. 450 crore mentioned in (k) is redeemable at par in 24 semi-annual installments of Rs. 14.63 crore each commencing from 30th June, 2012 and 2 semi-annual installments of Rs. 49.50 crore each commencing from 30th June, 2024.

(xi) The first loan from Infrastructure Development Finance Company Limited of Rs. 450 crore mentioned in (l) is redeemable at par in 35 quarterly installments of Rs. 5.65 crore each commencing from 1st October, 2009 and 1 installment of Rs. 252.25 crore commencing from 15th July, 2018, and

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

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

(xii) The loan from Export Import Bank of India mentioned in (m) is redeemable at par in 18 semi-annual installments of USD 372,200 each commencing from 29th September, 2006 and last installment of USD 50,400.

(xiii) The 10.75% Redeemable and Non-convertible Debentures mentioned in (n) 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) The 9.48% Redeemable and Non-convertible Debentures mentioned in (o) are fully redeemable at par at the end of 5 years from the respective date of allotment viz. 17th November, 2019.

(xv) The 9.32% Redeemable and Non-convertible Debentures mentioned in (p) are fully redeemable at par at the end of 3 years from the respective date of allotment viz. 17th November, 2017.

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

(xvii) The loan from ICICI Bank mentioned in (s) is redeemable at par in 10 semi-annual installments commencing from 1st April, 2012. (xviii) The loan from JP Morgan Chase Bank mentioned in (t) is repayable fully on 28th November, 2016.

(xix) The loan from BNP Paribas mentioned in (u) is repayable fully on 29th December, 2016.

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

8. Deferred Tax Liabilities (Net)
As at

As at

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
Deferred Tax Liability on account of:
Relating to Fixed Assets 1,403.75

1,234.01

Balance in Deferred Tax Liability Fund (279.76)

(279.76)

Deferred Tax Liability 1,123.99

954.25

Deferred Tax Asset on account of:
Provision for Employee Benefits 37.10

36.41

Provision for Tax, Duty, Cess, Fee etc. 44.26

17.99

Provision for Doubtful Debts and Advances 17.65

18.71

Deferred Tax Asset 99.01

73.11

Net Deferred Tax Liability 1,024.98

881.14

9. Other Long-term Liabilities
As at

As at

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
Trade Payables 29.92

27.25

Others
Consumers’ Benefit Account 21.94

21.94

Security Deposits from Customers 42.07

36.91

Total 93.93

86.10

10. Provisions

As at 31st March, 2015

As at 31st March, 2014

Long-term Short-term

Long-term

Short-term

Rs. crore Rs. crore Rs. crore Rs. crore
Provision for Employee Benefits
Compensated Absences 77.57 5.41

62.20

5.65

Gratuity (Net) [Refer Note 35(c)(ii)] Nil 26.17

Nil

37.00

Post Employment Medical Benefits [Refer Note 35(c)(ii)] 18.49 0.64

10.96

0.56

Other Defined Benefits Plans [Refer Note 35(c)(ii)] 33.72 5.04

28.73

4.62

Other Employee Benefits 16.40 2.76

16.05

5.55

Provision - Others
Provision for Warranties 3.72 26.39

5.79

18.64

Provision for Premium on Redemption of Foreign Currency
Convertible Bonds Nil Nil

Nil

170.15

Provision for Premium on Redemption of Debentures Nil 40.50

40.50

53.70

Provision for Wealth Tax Nil 2.52

Nil

1.97

Provision for Proposed Dividend Nil 351.99

Nil

338.45

Provision for Additional Income-tax on Dividend Nil 32.34

Nil

24.72

Total 149.90 493.76

164.23

661.01

 

11. Short-term Borrowings
As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Secured
From Banks
(a) Cash Credit Account Nil

65.78

(b) Loans from Banks 93.00

Nil

(c) Buyer’s Line of Credit Nil

291.35

93.00

357.13

Unsecured
From Banks
(d) Buyer’s Line of Credit 286.78

99.33

(e) Loans from Banks 185.00

468.00

From Others
(f) Inter-corporate Deposit Nil

5.07

(g) Commercial Paper [maximum amount outstanding during the year is
Rs. 1,525.00 crore (31st March, 2014 - Rs. 750.00 crore)] 1,200.00

650.00

1,671.78

1,222.40

Total 1,764.78

1,579.53

Security

Cash Credit from banks is secured against first pari passu charge on all current assets including goods, book debts, receivables and other moveable current assets of the Company. The Cash Credit is repayable on demand.

Loan from banks is secured against first pari passu charge over all current assets of the Company, present and future, with other working capital lenders, except for specific wind assets (for which charge has been ceded).

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

As at

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
(a) Current Maturities of Long-term Debt (Refer Note 7) 476.66

2,324.67

(b) Interest accrued but not due on Borrowings 293.87

264.40

(c) Investor Education and Protection Fund shall be credited by the following amounts namely:**
Unpaid Dividend 14.49

13.26

Unpaid Matured Deposits 0.03

0.03

Unpaid Matured Debentures 0.09

0.09

(d) Book Overdraft 0.85

94.49

(e) Other Payables
Statutory Liabilities 171.12

240.79

Regulatory Liabilities 903.86

402.86

Payables towards Purchase of Fixed Assets 269.41

298.78

Advance and Progress payments received from Customers/Public Utilities 243.86

449.18

Security Deposits from Consumers 152.21

150.87

Security Deposits from Customers 4.95

5.24

Tender Deposits from Vendors 2.00

3.18

Other Liabilities 172.16

58.15

Total 2,705.56

4,305.99

** Includes amounts outstanding aggregating Rs. 0.85 crore (31st March, 2014 - Rs. 0.83 crore) for more than seven years pending legal cases.

13. Fixed Assets

GROSS BLOCK DEPRECIATION NET BLOCK
As at 1st April, 2014 Additions ! Revaluation Deductions ## As at 31st March, 2015 As at 1st April, 2014 Depreciation Reserve on account of Revaluation ## For the year Deductions As at 31st March, 2015 As at 31st March, 2015
(a) TANGIBLE ASSETS
Land
(a) Freehold Land 338.36 3.85 Nil Nil 342.21 Nil Nil Nil Nil Nil 342.21

121.75

24.12

192.49

Nil

338.36

Nil

Nil

Nil

Nil

Nil

338.36

(b) Leasehold Land 327.37 301.85 Nil Nil 629.22 13.91 Nil 5.79 Nil 19.70 609.52

287.30

40.07

Nil

Nil

327.37

9.75

Nil

4.16

Nil

13.91

313.46

(i) Owned Assets
1. Hydraulic Works 533.44 0.86 Nil Nil 534.30 223.17 Nil 17.50 Nil 240.67 293.63

531.52

1.92

Nil

Nil

533.44

205.84

Nil

17.33

Nil

223.17

310.27

2. Buildings - Plant 953.04 75.57 Nil 16.15 1,012.46 334.06 Nil 16.81 10.87 340.00 672.46

850.91

91.62

10.58

0.07

953.04

300.34

2.91

30.82

0.01

334.06

618.98

3. Buildings - Others 177.60 35.89 Nil 0.03 213.46 @ 56.42 Nil 10.27 0.03 66.66 146.80

141.98

15.73

19.96

0.07

177.60 @

49.11

0.07

7.31

0.07

56.42

121.18

4. Coal Jetty 106.10 Nil Nil Nil 106.10 27.99 Nil 5.60 Nil 33.59 72.51

106.10

Nil

Nil

Nil

106.10

22.39

Nil

5.60

Nil

27.99

78.11

5. Railway Sidings, Roads,
Crossings, etc. 51.91 0.22 Nil Nil 52.13 19.07 Nil 1.74 Nil 20.81 31.32

50.24

1.67

Nil

Nil

51.91

17.40

Nil

1.67

Nil

19.07

32.84

6. Plant and Machinery 10,068.23 680.53 # Nil 109.68 10,639.08 4,770.60 2.48 395.99 # 76.98 5,092.09 5,546.99

9,421.05

647.68

# 10.97

11.47

10,068.23

4,352.32

3.96

424.19 #

9.87

4,770.60

5,297.63

7. Transmission Lines, Cable
Network, etc. 2,016.77 418.87 Nil 1.40 2,434.24 683.19 Nil 92.06 0.84 774.41 1,659.83

1,707.93

308.94

0.06

0.16

2,016.77

608.33

0.05

74.82

0.01

683.19

1,333.58

8. Furniture and Fixtures 63.42 10.33 Nil 0.22 73.53 26.93 Nil 4.95 0.10 31.78 41.75

55.90

7.25

0.90

0.63

63.42

22.72

0.58

4.13

0.50

26.93

36.49

9. Office Equipment 25.03 6.24 Nil 0.50 30.77 9.54 Nil 6.32 0.34 15.52 15.25

22.98

2.29

Nil

0.24

25.03

8.29

Nil

1.38

0.13

9.54

15.49

10. Motor Vehicles, Launches,
Barges, etc. 48.37 1.48 Nil 4.11 45.74 31.38 Nil 7.05 3.18 35.25 10.49

48.84

1.48

0.02

1.97

48.37

28.04

0.02

4.54

1.22

31.38

16.99

11. Helicopters 37.00 Nil Nil Nil 37.00 17.67 Nil 3.14 Nil 20.81 16.19

36.86

0.14

Nil

Nil

37.00

14.53

Nil

3.14

Nil

17.67

19.33

(ii) Assets taken on lease
Motor Vehicles under Finance Lease 1.18 Nil Nil 1.18 Nil 1.08 Nil 0.10 1.18 Nil Nil

1.23

Nil

Nil

0.05

1.18

1.12

Nil

Nil

0.04

1.08

0.10

TOTAL TANGIBLE ASSETS 14,747.82 1,535.69 Nil 133.27 16,150.24 6,215.01 2.48 567.32 93.52 6,691.29 9,458.95
2013-2014

13,384.59

1,142.91

234.98

14.66

14,747.82

5,640.18

7.59

579.09

11.85

6,215.01

8,532.81

Notes:

@ Buildings include Rs.

* being cost of ordinary shares in co-operative housing societies.

# Addition to Plant and Machinery includes Rs. 49.44 crore (31st March, 2014 - Rs. 74.05 crore) and depreciation of Rs. 19.39 crore (31st March, 2014 - Rs. 18.79 crore) on account of Foreign Currency Exchange Differences respectively.

## Pertains to Revaluation of Assets during the year ended 31st March, 2014. Refer Note 2.4.

! Addition includes Rs. 39.77 crore (31st March, 2014 - Rs. 41.01 crore) being finance cost capatalised during the year.

Fixed Assets having Gross Block of Rs. 1,789.10 crore (31st March, 2014 - Rs. 1,751.97 crore) [Net Block Rs. 569.29 crore (31st March, 2014 - Rs. 555.36 crore)] are on leased land for which agreement is pending finalisation. Previous year’s figures are in italics.

GROSS BLOCK AMORTISATION NET BLOCK
As at 1st April, 2014 Additions Deductions As at 31st March, 2015 As at 1st April, 2014 For the year Deductions As at 31st March, 2015 As at 31st March, 2015
(b) INTANGIBLE ASSETS
1. Technical Know-How and Prototypes ! 37.06 18.02 Nil 55.08 8.44 7.65 Nil 16.09 38.99

13.43

23.63

Nil

37.06

4.24

4.20

Nil

8.44

28.62

2. 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

3. Computer Software $ 46.81 77.56 0.05 124.32 9.61 11.76 0.05 21.32 103.00

24.08

22.73

Nil

46.81

3.16

6.45

Nil

9.61

37.20

TOTAL INTANGIBLE ASSETS 84.13 95.58 0.05 179.66 18.31 19.41 0.05 37.67 141.99
2013-2014

37.77

46.36

Nil

84.13

7.66

10.65

Nil

18.31

65.82

Notes:

! Internally generated intangible assets.

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

Depreciation/Amortisation:

For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
Depreciation on Tangible Assets 567.32

579.09

Less: Amount transfer from Revaluation Reserve (Refer Note 2.4) Nil

2.60

Less: Amount written ofi to Surplus in the Statement of Profit and Loss (Refer Note 2.3) 11.44

Nil

Add: Amortisation on Intangible Assets 19.41

10.65

Total 575.29

587.14

14. Non-current Investments

As at 31st March, 2015

As at 31st March, 2014

Face Value (in Rs. unless stated As at 31st March, 2015

As at 31st March, 2014

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. 111,65,99,120

111,65,99,120

10 1,116.83

1,116.83

Industrial Energy Ltd. # 46,53,12,000

24,64,20,000

10 465.31

246.42

Coastal Gujarat Power Ltd. # 598,05,70,000

591,71,30,000

10 5,980.57

5,917.13

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

4,70,07,350

USD 1 255.20

255.20

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

12,47,63,344

USD 1 575.02

575.02

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

50,000

10 0.05

0.05

Industrial Power Utility Ltd. 1,10,000

1,10,000

10 0.11

0.11

Tata Power Renewable Energy Ltd. # 48,76,07,715

19,50,26,832

10 487.61

195.03

Dugar Hydro Power Ltd. 3,80,00,002

3,50,00,002

10 38.00

35.00

Tata Power Solar Systems Ltd. 67,77,567

67,77,567

100 148.31

148.31

Tata Power International Pte. Ltd. 1,79,50,000

1,79,50,000

USD 1 107.68

107.68

9,697.29

9,119.38

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

19,200

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. # 1,78,36,000

1,19,80,000

10 17.84 **

11.98

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

3,93,00,000

10 39.30 **

39.30

Dagachhu Hydro Power Corporation Ltd. 10,74,320

10,74,320

Nu 1,000 107.43

107.43

164.57

158.71

** Less: Provision for diminution in value of investments other than temporary 37.10

Nil

127.47

158.71

(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

9,922.34

9,375.67

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

2,55,00,000

100 255.00

255.00

Tata Power International Pte. Ltd. 6,48,59,930

1,90,80,000

USD 1 392.94

114.76

Tata Power Solar Systems Ltd. 45,00,000

22,05,000

100 45.00

22.05

692.94

391.81

B. Other Investments
a. Statutory Investments
(i) Contingencies Reserve Fund Investments
Government Securities (Unquoted)
8.28% GOI (2027) 11,30,000

11,30,000

100 11.30

11.30

8.24% GOI (2027) 9,65,000

9,65,000

100 9.65

9.65

8.33% GOI (2026) 7,50,000

7,50,000

100 7.50

7.50

8.19% GOI (2020) 7,03,000

7,03,000

100 7.03

7.03

6.35% GOI (2020) 16,01,300

16,01,300

100 16.01

16.01

7.83% GOI (2018) 10,00,000

10,00,000

100 10.00

10.00

7.99% GOI (2017) 8,48,700

8,48,700

100 8.49

8.49

7.49% GOI (2017) 7,36,000

7,36,000

100 7.36

7.36

7.59% GOI (2016) 19,000

19,000

100 0.19

0.19

77.53

77.53

Carried forward.. 10,692.81

9,845.01

 

As at 31st March, 2015

As at 31st March, 2014

Face Value (in Rs. unless stated As at 31st March, 2015

As at 31st March, 2014

Quantity

Quantity

otherwise) Rs. crore Rs. crore
Brought forward.. 10,692.81

9,845.01

B. Other Investments (Contd.)
(ii) Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
8.28% GOI (2027) 61,45,000

61,45,000

100 61.45

61.45

8.20% GOI (2025) 20,00,000

20,00,000

100 20.00

20.00

7.35% GOI (2024) 31,00,000

31,00,000

100 31.00

31.00

8.15% GOI (2022) 29,75,000

29,75,000

100 29.75

29.75

8.19% GOI (2020) 19,40,000

19,40,000

100 19.40

19.40

6.35% GOI (2020) 2,48,700

2,48,700

100 2.49

2.49

6.05% GOI (2019) 42,00,000

42,00,000

100 42.00

42.00

6.25% GOI (2018) 15,00,000

15,00,000

100 15.00

15.00

7.99% GOI (2017) 33,49,300

33,49,300

100 33.49

33.49

7.49% GOI (2017) 25,00,000

25,00,000

100 25.00

25.00

279.58

279.58

357.11

357.11

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

10,73,000

100 68.68

68.68

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

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

2,236.47

(ii) Government Securities (Unquoted)
8.07% GOI (2017) 3,000

3,000

100 0.03

0.03

2,236.50

2,236.50

Total 13,208.89

12,361.09

 

As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Notes:
1. Aggregate of Quoted Investments
Cost 475.94

475.94

Market value 759.07

561.40

2. Aggregate of Unquoted Investments
Cost 12,779.16

11,894.26

Less: Provision for diminution in value of investments other than temporary 46.21 **

9.11 **

Aggregate amount of Unquoted Investments (Net) 12,732.95

11,885.15

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

# Refer Note 32(c).

* Denotes figures below Rs. 50,000/-.

15. Loans and Advances

As at 31st March, 2015

As at 31st March, 2014

Long-term Short-term

Long-term

Short-term

Rs. crore Rs. crore Rs. crore Rs. crore
(a) Capital Advances
Unsecured, considered good 17.68 Nil

106.49

Nil

Doubtful 0.72 Nil

0.66

Nil

18.40 Nil

107.15

Nil

Less: Provision for Doubtful Advances 0.72 Nil

0.66

Nil

17.68 Nil

106.49

Nil

(b) Security Deposits
Unsecured, considered good 302.53 3.65

315.11

1.48

Doubtful 22.59 Nil

22.34

Nil

325.12 3.65

337.45

1.48

Less: Provision for Doubtful Deposits 22.59 Nil

22.34

Nil

302.53 3.65

315.11

1.48

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

101.19

Nil

Other Loans 2,858.66 39.86

2,144.32

377.61

Doubtful 1.27 Nil

1.27

Nil

2,859.93 39.86

2,246.78

377.61

Less: Provision for Doubtful Advances 1.27 Nil

1.27

Nil

2,858.66 39.86

2,245.51

377.61

(d) Advance Income-tax (Net) 49.52 Nil

20.96

Nil

(e) Balance with Government Authorities
Unsecured, considered good
Advances Nil 36.63

Nil

11.56

Amount Paid Under Protest 151.52 Nil

151.52

Nil

VAT/Sales Tax Receivable 131.24 Nil

16.77

95.94

282.76 36.63

168.29

107.50

(f) Inter-corporate Deposits
Unsecured, considered good Nil 24.00

Nil

Nil

(g) Other Loans and Advances
Unsecured, considered good
Loans to Employees 8.62 Nil

9.77

Nil

Prepaid Expenses 20.34 43.04

26.11

33.72

Advances to Vendors Nil 214.32

Nil

280.57

Other Advances 9.23 11.80

6.55

3.65

Doubtful 4.29 1.47

6.10

1.47

42.48 270.63

48.53

319.41

Less: Provision for Doubtful Advances 4.29 1.47

6.10

1.47

38.19 269.16

42.43

317.94

Total 3,549.34 373.30

2,898.79

804.53

16. Other Non-current Assets

As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
(a) Long-term Trade Receivables
Unsecured, considered good
Trade Receivables - Regulatory Assets 2,429.62

2,053.91

Trade Receivables from Contracts Nil

14.31

Trade Receivables from Others 185.76

185.76

(b) Unamortised Expenses
Unamortised Option Premium 8.96

Nil

(c) Accruals
Interest Accrued on Loans and Advances to Related Parties 312.82

115.96

Total 2,937.16

2,369.94

17. Current Investments

As at 31st March, 2015

As at 31st March, 2014

Face Value (in Rs. unless stated) As at 31st March, 2015

As at 31st March, 2014

Quantity

Quantity

otherwise Rs. crore Rs. crore
Current Investment (valued at lower of cost and fair value)
Mutual Funds (Unquoted)
Taurus Mutual Fund - Bonanza Exclusive - Growth Nil

6,66,667

10 Nil

0.50

Templeton India - Growth Nil

2,50,000

10 Nil

0.25

J M Equity Fund - Growth Nil

5,00,000

10 Nil

0.50

UTI Balanced Fund - Dividend Plan - Reinvestment Nil

1,42,289

10 Nil

0.11

Religare Invesco Liquid Fund - Direct Plan - Growth 72,771

Nil

1,000 14.00

Nil

LIC Nomura Liquidity Fund - Direct Plan - Growth 55,234

Nil

1,000 14.00

Nil

Tata Money Market Fund - Direct Plan - Growth 54,228

Nil

1,000 14.00

Nil

Total 42.00

1.36

Aggregate amount of Unquoted Investments 42.00

1.36

Reconciliation for Disclosure as per Accounting Standard 13

As at

As at

31st March,

31st March,

2015

2014

Rs. crore Rs. crore
Non-current Investments
Non-current Investments (Refer Note 14) 13,208.89

12,361.09

Current Investments
Current Investments (Refer Note 17) 42.00

1.36

Total 13,250.89

12,362.45

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

As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Stores and Spares
Fuel - Stores 291.79

341.27

Fuel-in-Transit 53.71

68.57

Stores-in-Transit 13.69

3.52

Stores and Spare Parts 259.86

255.81

Loose Tools 0.22

0.98

619.27

670.15

Others
Property under Development 49.91

40.52

Total 669.18

710.67

19. Trade Receivables
(Unsecured unless otherwise stated)
As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
Trade Receivables outstanding for a period exceeding six months from the date they were due for payment *
Considered good 34.72

25.18

Considered doubtful 21.24

20.96

55.96

46.14

Less: Provision for Doubtful Trade Receivables 21.24

20.96

34.72

25.18

Other Trade Receivables *
Considered good 1,541.41

1,294.92

Considered doubtful 1.30

2.46

1,542.71

1,297.38

Less: Provision for Doubtful Trade Receivables 1.30

2.46

1,541.41

1,294.92

Total 1,576.13

1,320.10

* Company holds security deposits of Rs. 152.21 crore (31st March, 2014 - Rs. 150.87 crore) in respect of Electricity Receivables.
20. Cash and Bank Balances
As at 31st March, 2015

As at 31st March, 2014

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

0.01

(ii) Cheques on Hand 0.02

6.26

(iii) Balances with Banks:
(a) In Current Accounts 61.82

49.03

(b) In Deposit Accounts (remaining maturity of three months or less) (Refer
Note 44) 204.00

Nil

Cash and Cash Equivalents as per AS-3 Cash Flow Statements 265.85

55.30

(B) Other Balances with Banks:
(i) In Deposit Accounts (remaining maturity of more than twelve months) 1.94

1.94

(ii) In Earmarked Accounts-
Unpaid Dividend Account 11.48

10.62

13.42

12.56

Total 279.27

67.86

 

21. Other Current Assets
As at 31st March, 2015

As at 31st March, 2014

Rs. crore Rs. crore
(a) Unbilled Revenue 226.75

73.52

(b) Regulatory Assets 363.00

363.00

(c) Unamortised Expenses
Unamortised Option Premium 7.99

68.55

(d) Accruals
Interest Accrued on Deposits 5.05

0.28

Interest Accrued on Investments 5.86

5.95

Interest Accrued on Loans and Advances to Related Parties 37.40

59.69

Dividend Receivable 75.00

59.89

(e) Others
Forward Contracts 1.36

0.09

Insurance Claims Receivable 54.02

Nil

Total 776.43

630.97

22. Revenue from Operations
For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
(a) Revenue from Operations
(i) Revenue from Power Supply and Transmission Charges 7,838.35

7,286.54

(Less)/Add: Income to be adjusted in future tariff determination (Net) (48.62)

513.50

Add: Income to be adjusted in future tariff determination (Net) in respect of earlier years 84.50

300.00

7,874.23

8,100.04

(ii) Revenue from Contracts
Electronic Products 530.50

343.07

Project/Operation Management Services 127.04

117.28

657.54

460.35

(b) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipment, etc. 11.34

10.47

Income in respect of Services Rendered 45.50

42.82

Compensation Earned 7.08

0.05

Transfer of Service Line Contributions 9.45

8.14

Sale of Renewable Energy Certificates 1.57

15.41

Miscellaneous Revenue 28.52

29.63

Sale of Fly Ash 1.64

2.24

Sale of Carbon Credits 5.49

13.86

Discount Received on Prompt Payment 9.93

3.36

Provision for Doubtful Debts and Advances Written Back (Net) 2.38

Nil

Profit on Sale/Retirement of Assets (Net) ** 18.13

Nil

Delayed Payment Charges 8.37

7.37

149.40

133.35

8,681.17

8,693.74

Less: Excise Duty 3.48

18.21

Total 8,677.69

8,675.53

** Net of insurance claims received 29.78

Nil

 

23. Other Income
For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
(a) Interest Income
Interest on Banks Deposits 62.47

6.73

Interest from Inter-corporate Deposits 17.27

12.64

Interest on Fuel Adjustment Charges Recoverable from Consumers Nil

3.86

Interest on Overdue Trade Receivables 30.01

27.72

Interest on Income-tax Refund 30.77

0.40

Interest on Non-current Investment - Contingency Reserve Fund 5.97

5.62

Interest on Non-current Investment - Deferred Tax Liability Fund 21.21

21.15

Interest on Loans to Subsidiaries 278.11

176.08

Interest on Loans to Jointly Controlled Entities 0.24

Nil

Other Interest 0.99

1.01

447.04

255.21

(b) Dividend Income
From Non-current Investments
Subsidiaries 493.67

351.83

Associates 4.89

4.89

Others 15.06

9.84

513.62

366.56

From Current Investments
Others 0.25

0.10

513.87

366.66

(c) Profit on Sale of Investments
Current investments 23.06

20.37

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

0.26

Guarantee Commission from Subsidiaries 19.71

13.26

Miscellaneous Income 21.00

Nil

40.71

13.52

Total 1,024.68

655.76

24. Employee Benefits Expense

For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
Salaries and Wages 561.50

474.25

Contribution to Provident Fund [Refer Note 35 (a)] 21.03

20.60

Contribution to Superannuation Fund [Refer Note 35 (a)] 10.13

9.96

Retiring Gratuities 31.16

12.72

Leave Encashment Scheme 26.14

9.11

Pension Scheme 8.98

6.16

Stafi Welfare Expenses 115.23

88.23

774.17

621.03

Less:
Employee Cost Capitalised 73.77

58.08

Employee Cost Recovered 1.83

6.16

Employee Cost Inventorised 12.05

11.84

87.65

76.08

Total 686.52

544.95

 

25. Finance Costs
For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
(a) Interest Expense on:
Borrowings
Interest on Debentures 395.35

359.60

Interest on - Euro Notes and FCCB 75.14

68.46

Interest on Loans - Banks & Financial Institutions 500.02

380.90

Others
Interest on Consumer Security Deposits 13.20

15.57

Other Interest and Commitment Charges 20.17

11.87

1,003.88

836.40

Less: Interest Capitalised 39.77

41.01

964.11

795.39

(b) Other Borrowing Cost:
Derivative Premium 71.70

62.13

Other Finance Costs 11.65

10.69

83.35

72.82

Total 1,047.46

868.21

26. Other Expenses
For the year ended

For the year ended

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
Consumption of Stores, Oil, etc. (excluding Rs. 65.98 crore on repairs and maintenance -
Previous Year - Rs. 55.91 crore) 17.65

12.22

Rental of Land, Buildings, Plant and Equipment, etc 28.10

19.74

Repairs and Maintenance -
(i) To Buildings and Civil Works 64.15

61.38

(ii) To Machinery and Hydraulic Works $ 258.82

232.08

(iii) To Furniture, Vehicles, etc. 7.90

7.77

330.87

301.23

Rates and Taxes 50.07

42.10

Insurance 27.58

15.64

Other Operation Expenses 86.23

98.32

Ash Disposal Expenses 17.08

17.44

Warranty Charges 8.53

6.68

Travelling and Conveyance Expenses 28.47

29.05

Consultants’ Fees 28.52

24.75

Auditors’ Remuneration 5.02

4.84

Cost of Services Procured 126.40

96.91

Bad Debts Nil

0.04

Provision for Doubtful Debts and Advances (Net) Nil

0.54

Loss on Sale/Retirement of Assets (Net) Nil

0.09

Provision for Diminution in Value of Non-current Investments 37.10

Nil

Donations # 0.43

3.07

Legal Charges 13.80

12.78

Loss on Foreign Currency Transactions and Translation (Net) 48.32

263.54

Corporate Social Responsibility Expenses (Refer Note 28) 31.13

8.74

Discount on Prompt Payment 42.54

45.13

Miscellaneous Expenses 43.44

45.79

Total 971.28

1,048.64

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

For the year ended 31st March, 2015

For the year ended 31st March, 2014

Rs. crore Rs. crore
As Auditors - Statutory Audit 2.97

3.22

For Taxation Matters 0.59

0.46

For Company Law Matters *

*

For Other Services 0.90

0.58

Reimbursement of Expenses 0.01

0.05

For Service Tax 0.55

0.53

Total 5.02

4.84

The remuneration disclosed above excludes fees of Rs. 0.04 crore (Previous Year - Rs. 0.04 crore) [exclusive of service tax of Rs. * (Previous Year - Rs. *)] for attest and other professional services rendered by firm of accountants in which some partners of the firm of statutory auditors are partners.

$ Net of insurance claims received/accrued 97.77 Nil
# Donations includes payment to Electoral Trust 0.23 Nil
* Denotes figures below Rs. 50,000/-.

27. In an earlier year, the Company had commissioned its 120 MW Unit 4 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. (a) Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof Rs. 31.13 crore (including Rs. 11.57 crore paid to Tata Power Community Development Trust).

(b) Gross amount required to be spent during the year Rs. 29.83 crore.

29. (a) The Company has a long-term investment of Rs. 5,980.57 crore (31st March, 2014 - Rs. 5,928.28 crore including advance towards equity) and has extended loans amounting to Rs. 3,034.56 crore (including interest accrued) (31st March, 2014 - Rs. 1,413.46 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").

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. CGPL's Management has re-assessed the recoverability of the carrying amount of the assets at Mundra as of 31st March, 2015 and concluded that no further provision for impairment is necessary (upto 31st March, 2014 - Rs. 2,650 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 including Infrastructure Companies through its subsidiaries, were made to secure long-term coal supply. The Management believes that cash inflows (in the nature of profit distribution and profit from sale) 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 including Infrastructure 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 including Infrastructure 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.

Further, the Company, through its wholly owned subsidiaries, has entered into agreements on 30th January, 2014 for sale of shares in PT Arutmin Indonesia and its associated infrastructure and trading companies. As per the terms of the agreement, it is proposed to sell its stake in these companies, for a consideration of USD 510 million, subject to tax deductions and other closing adjustments. The completion of the sale transaction is conditional upon the satisfaction or waiver of certain conditions, obtaining requisite consents and certain restructuring actions. The buyer will pay the seller interest on the purchase price from 26th November, 2013 (the effective date) till the completion date. The proposed sale of shares in PT Arutmin Indonesia referred above is consistent with the above intent.

Having regard to the overall returns expected from the Company’s investment in CGPL, including the valuation of investments in the Indonesian Coal Companies including Infrastructure Companies and the proposed future restructuring, no provision for diminution other than temporary, in value of long-term investment in and no provisions for loans to CGPL is considered necessary as at 31st March, 2015.

(b) The Company has an investment in Tata Teleservices Limited (TTSL) of Rs. 735.48 crore (31st March, 2014 - Rs. 735.48 crore). Based on the accounts for the year ended 31st March, 2014, TTSL has accumulated losses which has completely 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.

(c) The Company has an investment in Haldia Petrochemicals Limited (HPL) of Rs. 22.50 crore (31st March, 2014 - Rs. 22.50 crore). Based on the accounts for the year ended 31st March, 2014, 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.

(d) (i) The Company has invested Rs. 39.30 crore (31st March, 2014 - Rs. 39.30 crore), given loans of Rs. 4.50 crore including interest accrued (31st March, 2014 - Rs. 1.20 crore) to Mandakini Coal Company Limited ("Joint Venture") which had been allotted coal blocks by Government of India through Ministry of Coal.

(ii) The Company has invested Rs. 17.84 crore (31st March, 2014 - Rs. 17.58 crore including advance towards equity) in Tubed Coal Mines Limited ("Joint Venture") which had been allotted coal blocks by Government of India through Ministry of Coal. (iii) Pursuant to the Order of the Hon’ble Supreme Court dated 24th September, 2014, regarding cancellation of the allotment of coal blocks and the subsequent Coal Mines (Special Provision) Ordinance, 2014, issued by the Government of India, the Company has made an assessment of the recoverability of its investments in and guarantees given to Jointly Controlled Entities viz. Mandakini Coal Company Limited and Tubed Coal Mines Limited, afiected by the said Order and recognised, on a prudent basis, a provision for diminution of Rs. 37.10 crore during the year ended 31st March, 2015. 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, 2015

31st March, 2014

Rs. crore Rs. crore
(a) Principal amount remaining unpaid as on 31st March 17.11

6.71

(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

(f) The amount of further interest due and payable even in the succeeding years, until such date when the interest dues as above are actually paid @ 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 (net of capital advance):

Capital commitments not provided for are estimated at Rs. 662.48 crore (31st March, 2014 - Rs. 681.06 crore).

(b) Commitment towards purchase of Equity Shares of Trust Energy Resources Pte. Limited from Khopoli Investment Limited of Rs. 27.48 crore (31st March, 2014 - Rs. 26.29 crore) subject to approval of Reserve Bank of India.

(c) The Company has signed a Share Purchase Agreement on 10th December, 2014 for acquisition of 100% shareholding in Ideal Energy Projects Limited (IEPL), subject to statutory approvals and certain conditions precedent. IEPL owns a 540 MW coal based thermal power project in Maharashtra out of which 270 MW was commissioned in May 2013 and is based on domestic coal. (d) 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 Agreement also includes support by way of additional financial support for any overrun in project costs, operational loss and Debt Service Reserve Guarantee as provided under the Financing Agreements. Pending achievement of the "Project Financial Completion Date" as defined under the Financing Agreement, the Sponsor support will continue. 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. 3,540.00 crore. In accordance with these agreements the Company has provided total Additional Subordinated Loans of Rs. 4,235.82 crore (of which Rs. 1,512.85 crore has been converted into equity) [31st March, 2014 - Additional Subordinated Loans of Rs. 2,793.00 crore (of which Rs. 1,489.41 crore has been converted into equity)] 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 accrued interest as at 31st March, 2015 aggregating to Rs. 311.59 crore (31st March, 2014 - Rs. 109.87 crore) 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) In respect of NELCO Limited, the Company has undertaken to arrange for the necessary financial support to NELCO Limited in the form of interim Short-term funding for meeting its business requirements. (iii) The Company has undertaken to arrange for the necessary financial support to its Subsidiaries Khopoli Investments Limited, Bhivpuri Investments Limited, Industrial Power Utility Limited, Tata Power Jamshedpur Distribution Limited and Tata Power International Pte. Limited.

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

(vi) 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 Communication Limited (TCL). The Company has till date acquired 1,34,22,037 shares of TCL from PFL. The Company would be entitled to be allotted 4.71% of the share capital of the Resulting Company based on its holding of 1,34,22,037 shares of TCL. The Company has undertaken to PFL to bear the "Surplus Land" obligation pertaining to these shares.

(vii) The Company has given an undertaking for non-disposal of shares to the lenders of Tata Power Delhi Distribution Limited in respect of its outstanding borrowings amounting to Rs. 520.78 crore (31st March, 2014 - Rs. 635.13 crore). (viii) The Company has given letter of comfort to Cennergi Pty. Limited amounting to Rs. 10.67 crore (31st March, 2014 - Rs. 11.67 crore). 32. Contingent Liabilities (to the extent not provided for): (a) Claims against the Company not acknowledged as debts aggregating to Rs. 1,691.49 crore (31st March, 2014 - Rs. 1,230.81 crore) consist mainly of the following: (i) Interest and penalty demand disputed by the Company aggregating Rs. 1,151.48 crore (31st March, 2014 - Rs. 795.55 crore) relating to Entry tax claims for the financial years 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10. The Company is of the view, supported by legal opinion, that the demand can be successfully challenged.

(ii) Custom duty claims (including interest and penalty) of Rs. 170.01 crore (31st March, 2014 - Rs. 135.52 crore) disputed by the Company relating to applicability and classification of coal [Payment made under protest against these claims of Rs. 135.52 crore (31st March, 2014 - Rs. 135.52 crore)].

(iii) Way Leave fees (including interest) of Rs. 62.60 crore (31st March, 2014 - Rs. 54.00 crore) claims disputed by the Company relating to rates charged.

(iv) Rates, Cess, Excise and Custom Duty claims disputed by the Company aggregating Rs. 41.14 crore (31st March, 2014 - Rs. 40.95 crore).

(v) A Suit has been filed against the Company claiming compensation of Rs. 20.51 crore (31st March, 2014 - Rs. 20.51 crore) by way of damages for alleged wrongful disconnection of power supply and interest accrued thereon Rs. 120.60 crore (31st March, 2014 - Rs. 116.29 crore).

(vi) Octroi claims disputed by the Company aggregating to Rs. 5.03 crore (31st March, 2014 - Rs. 5.03 crore), in respect of octroi exemption claimed by the Company. (vii) Compensation disputed by private land owners aggregating to Rs. 22.00 crore (31st March, 2014 - Rs. Nil) on private land acquired under the provisions of Maharashtra Industrial Development Act, 1961.

(viii) Other claims against the Company not acknowledged as debts Rs. 98.12 crore (31st March, 2014 - Rs. 62.96 crore). (ix) Amounts in respect of employee related claims/disputes, regulatory matters is not ascertainable.

Future cash flows in respect of 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. 209.52 crore (including interest demanded Rs. 1.17 crore) [31st March, 2014 - Rs. 188.29 crore (including interest demanded Rs. 1.43 crore)].

Future cash flows in respect of 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
- 18,27,08,138
Powerlinks Transmission Limited (PTL) - 23,86,80,000
- 23,86,80,000
Coastal Gujarat Power Limited (CGPL) 3,403.27 305,00,90,700
-
3,341.43 301,77,36,300
(including JPY 31,219 million)
[Refer Note 31 (d) (i)]
Industrial Energy Limited (IEL) - 12,56,74,200
- 12,56,74,200
Khopoli Investments Limited (KIL) 2,521.21 -
(equivalent to USD 403.41 million)
3,327.25 -
(equivalent to USD 555.56 million)
Bhira Investments Limited (BIL) 3,933.59 -
(equivalent to USD 629.40 million)
5,390.10 -
(equivalent to USD 900 million)
Trust Energy Resources Pte. Limited (TERL) 268.43 -
(equivalent to USD 42.95 million)
316.82 -
(equivalent to USD 52.90 million)
Tubed Coal Mines Limited (TCML) 11.36 -
11.36 -
Mandakini Coal Company Limited (MCCL) 115.79 2,00,43,000
86.93 2,00,43,000
Energy Eastern Pte. Limited (EEL) 171.87 -
(equivalent to USD 27.50 million)
428.21 -
(equivalent to USD 71.50 million)
Tata Power Renewable Energy Limited (TPREL) 391.76 24,86,79,935
418.64 9,94,63,684
Maithon Power Limited (MPL) 126.58 -
144.00 -
[Refer Note 31 (d) (iv)]
Tata Power International Pte. Limited (TPIPL) 488.04 -
(equivalent to USD 78.09 million)
184.10 -
(equivalent to USD 30.74 million)
Cennergi Pty. Limited (CPL) 359.30 -
(equivalent to ZAR 693.91 million)
392.75 -
(equivalent to ZAR 693.91 million)
[Refer Note 31 (d) (viii)]
Tata Sons Limited (TSL) [Refer (f) below] -
[Refer (f) below] -

Notes:

1. The Company has pledged the above shares of subsidiaries, jointly controlled entities and TTSL, with the lenders for borrowings availed by the 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 Ltd. (R-Infra) for the period from 1st April, 1999 to 31st March, 2004, the Appellate Tribunal of Electricity (ATE), set aside the Maharashtra Electricity Regulatory Commission (MERC) Order dated 31st May, 2004 and directed the Company to refund to R-Infra as on 31st March, 2004, Rs. 354.00 crore (including interest of Rs. 15.14 crore) and pay interest at 10% per annum thereafter. As at 31st March, 2015 the accumulated interest was Rs. 207.16 crore (31st March, 2014 - Rs. 195.96 crore) (Rs. 11.20 crore for the year ended 31st March, 2015). 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 ofi 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% p.a. on the said normative debt. The change to the Clear Profit and Reasonable Return (consequent to the change in the capital base) as a result of the above mentioned directives for the period upto 31st March, 2004, has been adjusted by MERC from the Statutory Reserves along with the disputed Standby Charges referred to in Note 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.

(f) In 2008-09, NTT DoCoMo Inc (Docomo) entered into an Agreement with Tata Teleservices Ltd (TTSL) and Tata Sons Limited to acquire 20% of the equity share capital under the primary issue and 6% under the secondary sale from Tata Sons Limited. In terms of the Agreements with Docomo, Tata Sons Limited, inter alia, agreed to provide various indemnities and a Sale Option entitling Docomo to sell its entire shareholding in 2014 at a minimum pre-determined price of Rs. 58.045 per share if certain performance parameters were not met by TTSL. The minimum pre-determined price represented 50% of the acquisition price of 2008-09. The Agreements are governed by Indian Law.

The Company in 2008-09 had accepted an ofier made voluntarily by Tata Sons Limited to all shareholders of TTSL to participate pro-rata in the secondary sale to Docomo together with bearing liabilities, if any, including the Sale Option in proportion of the number of shares sold by the company to the aggregate Secondary Sale to Docomo. Accordingly, an Inter-se Agreement was executed by the Company with Tata Sons and other Selling Shareholders. The Company sold 2,72,82,177 shares of TTSL to Docomo at Rs. 116.09 per share, resulting in a profit of Rs. 255.62 crore. The Company is obliged to acquire 13,45,95,551 shares of TTSL in the above proportion in the event the Sale Option is exercised by Docomo.

Docomo has exercised the Sale Option in July 2014 and has called upon Tata Sons Limited to acquire its entire shareholding in TTSL at the pre-determined price of Rs. 58.045 per share. Tata Sons Limited has in turn informed the Company that they may be called upon to acquire 13,45,95,551 shares, in terms of its original ofier to the Company and the inter-se agreement to participate in the Secondary Sale.

Tata Sons have also informed the Company that the Reserve Bank of India have not permitted acquisition of the shares at the pre-determined price and have advised that the acquisition can only be made at Fair Market Value (FMV) prevailing at the time of the acquisition. The FMV determined as at 30th June, 2014 is Rs. 23.34 per share. Tata Sons Limited has conveyed to Docomo its willingness to acquire the shares at Rs. 23.34 per share, however, Docomo reiterated its position that the shares be acquired at Rs. 58.045 per share.

Docomo have initiated Arbitration in the matter.

The liability, if any, to the extent of the difference in price sought by Docomo and the Fair Market Value is dependent upon the outcome of the Arbitration and prevailing Exchange Control Regulations.

Under the above mentioned agreements with Docomo, TSL, and TTSL have jointly and severally agreed to indemnify Docomo within the agreed limits against claims arising on amount of any failure of certain warranties provided by TSL and TTSL to be true and correct in all respects (amount not determinable) and in respect of specified contingent liabilities (Company’s share Rs. 29.76 crore). The Company is liable to reimburse TSL, on a pro-rata basis.

33. (a) In an earlier year, the Company had provisionally determined Statutory Appropriations and adjustments to be made on Annual Performance Review as per Multi Year Tariff (MYT) Regulations, 2011 for Mumbai Licensed Area for financial year 2011-12. In view of deferment of implementation of MYT Tarifis to 1st April, 2012, as directed by MERC, revenue amounting to Rs. 155.00 crore was reversed in the financial year 2012-13.

The Company had filed a petition at the Appellate Tribunal for Electricity (ATE). ATE in its Order dated 28th November, 2013 had ruled in favour of the Company for implementation of MYT Tarifis effective 1st April, 2011. Accordingly, during the previous year, the Company had recognised revenue amounting to Rs. 185.00 crore for the financial year 2011-12.

(b) During the previous year, Maharashtra Electricity Regulatory Commission (MERC) had completed truing-up for the financial year 2011-12 and issued Tariff Orders. In these Tariff Orders, MERC has allowed true-up of the claims made by the Company in respect of earlier years incorporating the impact of favourable ATE Order. Accordingly, during the previous year, revenue of Rs. 115.00 crore had been recognised in the financial statements.

(c) During the year ended 31st March, 2015 the Appellate Tribunal for Electricity (ATE) in its order dated 27th October, 2014 has allowed the Company’s claim regarding certain expenses which were disallowed/not recognised by MERC in its earlier true-up orders. Accordingly, the Company has treated such expenses as recoverable and has recognised revenue of Rs. 80.00 crore. 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 ofi-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 ofi-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) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the Government specified minimum rates of return and recognises such contribution and shortfall , if any, as an expense in the year it is incurred. Having regard to the assets of the fund and the return on the investments, the Company does not expect any shortfalls in the foreseeable future. The Company has recognised Rs. 21.03 crore (31st March, 2014 - Rs. 20.60 crore) for provident fund contributions and Rs. 10.13 crore (31st March, 2014 - Rs. 9.96 crore) for superannuation contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. (b) Defined benefit plans 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)fi Pension (including Director pension) Funded: (i) Gratuity (c) The actuarial valuation of the present value of the defined benefit obligations has been carried out as at 31st March, 2015. The following tables set out the amounts recognised in the financial statements as at 31st March, 2015 for the above mentioned defined benefit plans:

(i) Net employee benefit expense (recognised in employee cost) for the year ended 31st March, 2015:

Funded Unfunded
31st March, 2015

31st March, 2014

31st March, 2015 31st March, 2014

Rs. crore Rs. crore Rs. crore Rs. crore
Current Service Cost 11.03

10.68

1.82

1.94

Interest 15.20

12.77

3.89

3.51

Expected Return on Plan Assets (11.95)

(8.87)

Nil

Nil

Actuarial (Gain)/Loss 17.25

(4.00)

11.05

(3.36)

Settlement Cost Nil

Nil

Nil

(0.80)

Past Service Cost Nil

Nil

Nil

1.59

Total Expense 31.53

10.58

16.76

2.88

(ii) Change in the Defined Benefit Obligation during the year ended 31st March, 2015:

Funded Unfunded
31st March, 2015

31st March, 2014

31st March, 2015 31st March, 2014

Rs. crore Rs. crore Rs. crore Rs. crore
Present value of Defined Benefit Obligation as at
1st April as per books 173.88

166.54

44.87

45.69

Current Service Cost 11.03

10.68

1.82

1.94

Interest 15.20

12.77

3.89

3.51

Settlement Cost Nil

Nil

1.44

(0.80)

Actuarial (Gain)/Loss (Net) 30.20

(3.37)

11.05

(3.36)

Past Service Cost Nil

Nil

Nil

1.59

Benefits Paid (Net) (17.36)

(12.74)

(5.18)

(3.70)

Present value of Defined Benefit Obligation as at
31st March 212.95

173.88

57.89

44.87

Less: Fair Value of Assets at the end of the year 186.78

136.88

Nil

Nil

Provision for Defined Benefit Obligation as at 31st
March as per books 26.17

37.00

57.89

44.87

 

2014-15 2013-14 2012-13 2011-12 2010-11
Rs. crore Rs. crore Rs. crore Rs. crore Rs. crore
Defined Benefit Obligation 270.84

218.75

212.23

185.97

164.25

Experience Adjustment on Plan Liabilities 8.21

10.29

10.79

7.01

19.83

The Company has paid Rs. 25.00 crore to Tata Power Gratuity Fund (31st March, 2014 - Rs. 33.00 crore). Of the payment of Rs. 25.00 crore, Rs. Nil towards the current year liability (31st March, 2014 - Rs. 8.00 crore) and Rs. 25.00 crore towards the Opening Liability (31st March, 2014 - Rs. 25.00 crore). The balance of the Opening Liability is to be funded by next year.

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

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
Plan Assets at the beginning of the year 136.88

94.38

Expected Return on Plan Assets 11.95

8.87

Actual Company contributions 25.00

33.00

Actuarial Gain 12.95

0.63

Fair value of plan assets at the end of the year 186.78

136.88

Composition of the plan assets is as follows: Insurer Managed Funds*

* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

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

31st March, 2015 31st March, 2014
Discount Rate 7.90% 9.20%
Salary Growth Rate Management 8% p.a. Management 7.50% p.a.
Non-Management 7% 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 Mortality Indian Assured Lives Mortality
(2006-08) Ult (2006-08) Ult
Annual Increase in Health Cost 8% 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.fi

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

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

31st March, 2015

31st March, 2014

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 0.11 (0.10)

0.12

(0.10)

Effect on defined benefit obligation 1.70 (1.49)

0.89

(0.79)

(vi) The contribution expected to be made by the Company during the financial year 2015-16 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. 530.50 crore (31st March, 2014 - Rs. 343.07 crore).

(b) In respect of contracts in progress –

(i) The aggregate amount of costs incurred and recognised profits upto 31st March, 2015 Rs. 814.84 crore (31st March, 2014 - Rs. 343.15 crore).

(ii) Advances and progress payments received as at 31st March, 2015 Rs. 813.25 crore (31st March, 2014 - Rs. 709.25 crore). (iii) Retention money included as at 31st March, 2015 in Sundry Debtors Rs. 6.32 crore (31st March, 2014 - Rs. 9.81 crore). (c) (i) Gross amount due to customers for contract work as a liability as at 31st March, 2015 Rs. 191.44 crore (31st March, 2014 - Rs. 402.03 crore).

(ii) Gross amount due from customers for contract work as an asset as at 31st March, 2015 Rs. 191.89 crore (31st March, 2014 - Rs. 35.93 crore).

37. (a) Total number of electricity units sold and purchased during the year as certified by Management - 13,603 MUs (31st March, 2014 - 14,516 MUs) and 2,541 MUs (31st March, 2014 - 2,321 MUs).

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

31st March, 2015

31st March, 2014

Rs. crore Rs. crore
(i) Capital goods 35.42

189.05

(ii) Components and spare parts 182.50

80.13

(iii) Fuel 792.63

1,355.10

(c) Expenditure in foreign currency:
31st March, 2015

31st March, 2014

Rs. crore Rs. crore
(i) Professional and consultation fees 2.93

4.68

(ii) Interest and issue expenses 77.64

80.43

(iii) Other matters 17.43

7.35

Note: Expenditure does not include expenditure of capital nature.

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

31st March, 2015

31st March, 2014

Rs. crore % consumed Rs. crore

% consumed

(i) Imported 1,266.68 35.19

1,741.63

48.41

(ii) Indigenous 2,333.16 64.81

1,856.40

51.59

3,599.84 100.00

3,598.03

100.00

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

Dividend for the year ended 31st March, 2014

31st March, 2013

Rs. crore Rs. crore
No. of non-resident shareholders 5,208

4,758

No. of Equity Shares of face value Rs. 1 each held 2,52,36,151

2,46,84,924

Amount of Dividend (Rs. crore) 3.15

2.84

(f) Earnings in foreign exchange:
31st March, 2015

31st March, 2014

Rs. crore Rs. crore
(i) Interest 11.30

31.33

(ii) Export of services 40.40

38.24

(iii) Guarantee Commission from Subsidiaries 17.44

13.26

(iv) Dividend 319.97

238.96

(v) Sale of Fixed Assets 24.59

Nil

(vi) Others 5.49

13.86

(g) Expenditure incurred on Research and Development by the Company:
31st March, 2015

31st March, 2014

Rs. crore Rs. crore
(i) Revenue Expenditure Nil

Nil

(ii) Capital Expenditure 45.26

32.04

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)
23) Tata Power Jamshedpur Distribution Ltd. (TPJDL)
24) Tata Power International Pte. Ltd. (TPIPL)
25) NewGen Saurashtra Windfarms Ltd ** (NSWL) (erstwhile AES
Saurashtra Windfarms Ltd).
** 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)
3) Rujuvalika Investments Ltd. (RIL)
(ii) Jointly Controlled Entities 1) OTP Geothermal Pte. Ltd. (OTPGL) **
2) Adjaristsqali Georgia LLC (AGL) **
3) Cennergi Pty. Ltd. (CPL) **
4) Mandakini Coal Company Ltd. (MCCL)
5) Tubed Coal Mines Ltd. (TCML)
** Fellow Jointly Controlled Entities
(iii) Promoters holding together with its Subsidiary more
than 20% Tata Sons Ltd.
(c) Key Management Personnel Anil Sardana - CEO & Managing Director
Ashok Sethi - COO & Executive Director (from 7th May, 2014)
S. Padmanabhan - Executive Director (upto 30th June, 2014)
Ramesh Subramanyam - Chief Financial Officer

(d) Details of Transactions:

Particulars Subsidiaries Associates

Jointly Controlled Entities

Key Management Personnel Promoters
Purchase of goods/power (Net of Discount Received on Prompt Payment) 56.45 - -

-

-

200.73

-

-

-

-

Sale of goods/power (Net of Discount on Prompt
Payment) 202.77 - -

-

-

211.47

-

-

-

-

Purchase of fixed assets - 8.12 -

-

-

0.07

17.89

-

-

-

Sale of fixed assets - - -

-

-

0.08

-

-

-

-

Rendering of services 102.46 0.10 1.87

-

0.57

104.25

0.10

4.13

-

-

Receiving of services 2.72 8.71 -

-

0.61

4.84

12.21

-

-

0.85

Brand equity contribution - - -

-

21.15

-

-

-

-

21.61

Guarantees, collaterals etc. given 9,326.87 - 95.53

-

-

1,152.55

-

392.75

-

-

Guarantees, collaterals etc. cancelled 11,917.87 - 66.67

-

-

1,060.05

-

-

-

-

Letter of comfort given - - -

-

-

-

-

488.37

-

-

Letter of comfort cancelled - - -

-

-

-

-

503.04

-

-

Remuneration paid - - -

15.57

-

-

-

-

11.12

-

Interest income 278.11 - 0.24

-

-

176.08

-

-

-

-

Dividend received 493.67 4.89 -

-

5.34

351.83

4.89

-

-

5.34

Dividend paid 0.05 - -

-

102.74

0.05

-

-

-

81.36

Guarantee commission earned 19.71 - -

-

-

13.26

-

-

-

-

Loans given 1,543.99 - 3.09

-

-

3,337.88

-

1.20

-

-

Equity contribution (net of advance towards equity contribution and loan converted into equity) @ 482.32 - 0.26

-

-

1,188.79

-

19.02

-

-

Purchase of preference shares (including advance towards preference shares) 301.13 - -

-

-

114.76

-

-

-

-

Equity Shares issued - - -

-

686.33

-

-

-

-

-

Loans repaid (including loan converted into equity) 1,185.06 - -

-

-

2,340.25

-

-

-

-

Deposits taken towards rental accomodation - - -

-

2.00

-

-

-

-

-

 

Rs. crore
Particulars Subsidiaries Associates Controlled Jointly Entities Key Management Personnel Promoters
Balances outstanding
Security deposits given - - - - 0.50

-

-

-

-

0.50

Other receivables (net of provisions) 51.52 4.59 0.71 - -

66.14

0.89

2.59

-

-

Loans given (including interest thereon) 3,244.25 1.27 4.49 - -

2,696.38

1.27

1.20

-

-

Loans provided for as doubtful advances - 1.27 - - -

-

1.27

-

-

-

Preference shares outstanding 692.94 - - - -

391.81

-

-

-

-

Advance towards equity/preference shares - - - - -

95.59

-

5.60

-

-

Dividend receivable 75.00 - - - -

59.89

-

-

-

-

Guarantees, collaterals etc. outstanding 11,304.75 - 486.45 - Refer Note 32 (f)

13,550.55

-

491.04

-

Refer Note 32 (f)

Letter of comfort outstanding - - 10.67 - -

-

-

11.67

-

-

Other payables 7.42 1.50 - - 23.96

3.05

6.35

-

-

22.02

Notes:

@ Including shares pursuant to loan being converted to equity.

Previous year’s figures are in italics.

(e) Details of material related party transactions:

(i) Subsidiaries : Rs. crore
Particulars IEL PTL TPTCL MPL EEL BIL KIL TPIPL TERL CGPL TPREL TPDDL
Purchase of goods/power - - - - - - - - 16.32 - 39.84 -

-

-

51.35

-

-

-

-

-

149.38

-

-

-

Sale of goods/power - - 200.83 - - - - - - - - -

-

-

209.03

-

-

-

-

-

-

-

-

-

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

-

-

-

-

-

-

-

-

-

-

0.08

-

Rendering of services 27.52 - - 37.54 - - - - - - - -

35.15

-

-

36.78

-

-

-

-

-

-

-

-

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

-

-

-

-

-

-

-

-

-

2.13

-

-

Guarantees and collaterals given - - - - - 3,865.41 1,525.62 - - 3,403.27 - -

-

-

-

-

197.64

-

598.90

184.10

-

-

-

-

Particulars IEL PTL TPTCL MPL EEL BIL KIL TPIPL TERL CGPL TPREL TPDDL
Guarantees and collaterals cancelled - - - - - 5,503.24 2,455.97 - - 3,341.43 - -

-

-

-

-

-

-

808.52

-

149.73

-

-

-

Interest income - - - - - - - - - 224.14 - -

24.37

-

-

-

-

-

30.88

-

-

81.45

-

-

Dividend received - - - - - 319.97 - - - - - 65.39

49.28

53.70

-

-

-

209.12

-

-

-

-

-

-

Guarantee commission earned - - - - - 9.06 4.31 - - - - -

-

-

-

-

-

8.21

2.42

-

1.47

-

-

-

Loans given - - - - - - - - - 1,531.66 - -

-

-

620.00

-

-

-

-

-

-

1,895.59

-

340.00

Equity contribution (including advance towards equity contribution and loan converted into equity) 218.89 - - - - - - - - 52.29 208.14 -

-

-

-

-

-

-

-

-

-

824.67

194.98

-

Purchase of preference shares - - - - - - - 278.18 - - - -

-

-

-

-

-

-

-

114.76

-

-

-

-

Loans repaid (including loan converted
into equity) 218.89 - - - - - 613.47 - - - 196.71 -

-

-

640.00

-

-

-

-

-

-

992.00

-

340.00

Balances outstanding
Loans given (including interest thereon).. - - - - - - - - - 3,034.56 - -

-

-

-

-

-

-

621.69

-

-

1,413.46

-

-

Preference shares outstanding - - - - - - - 392.94 - - - 255.00

-

-

-

-

-

-

-

114.76

-

-

-

255.00

Advance towards equity - - - - - - - - - - - -

-

-

-

-

-

-

-

-

-

11.15

84.44

-

Other receivables (net of provisions).. - - 14.62 - - - - - - 18.15 - -

11.74

-

18.40

20.75

-

-

-

-

-

-

-

-

Dividend receivable - - - - - 75.00 - - - - - -

-

-

-

-

-

59.89

-

-

-

-

-

-

Guarantees, collaterals etc. outstanding... - - - - - 3,933.59 2,521.21 - - 3,403.27 - -

-

-

-

-

-

5,390.10

3,327.25

-

-

3,341.43

-

-

Other payables - - - - - - - - - - 6.33 -

-

-

-

-

-

-

-

-

-

-

-

-

(ii) Associates and Jointly Controlled Entities: Rs. crore

Particulars Associates Jointly Controlled Entities
TPL YEL NSL CPL
Purchase of fixed assets 8.12 - - -

17.89

-

-

-

Receiving of services - 8.71 - -

-

12.21

-

-

Guarantees, collaterals etc. given - - - -

-

-

-

392.75

Letter of comfort given - - - -

-

-

-

488.37

Letter of comfort cancelled - - - -

-

-

-

503.04

Balances outstanding
Loans provided for as doubtful advances - - 1.27 -
- - 1.27 -
Letter of comfort

-

-

-

10.67

-

-

-

11.67

Other payable - - - -

4.08

-

-

-

Note: Previous year’s figures are in italics.

39. Disclosure as required under Clause 32 of listing agreement:

Loans and advances (excluding advance towards equity) in the nature of loans given to Subsidiaries, Joint Ventures 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. Subsidiary Nil 185.39 Nil

185.39

256.40

Nil

Coastal Gujarat Power Ltd. ### *** Subsidiary 2,722.96 2,846.40 Nil

1,303.59

1,303.59

Nil

Khopoli Investments Ltd. Subsidiary Nil 615.58 Nil

598.90

683.61

Nil

Industrial Energy Ltd. *** Subsidiary 39.86 258.75 Nil

258.75

258.75

Nil

Maithon Power Ltd. Subsidiary 123.50 123.50 Nil

123.50

223.50

Nil

Chemical Terminal Trombay Ltd. Subsidiary Nil 1.00 Nil

1.00

1.00

4,00,580

Tata Power Trading Company Ltd. Subsidiary Nil 30.00 Nil

30.00

215.00

Nil

Powerlinks Transmission Ltd. Subsidiary Nil Nil Nil

Nil

41.00

Nil

Tata Power Jamshedpur Distribution Ltd.*** Subsidiary 7.92 7.92 Nil

6.90

6.90

Nil

NELCO Ltd. Subsidiary Nil 12.70 Nil

12.70

12.70

Nil

Mandakini Coal Company Ltd. Joint Venture 4.28 4.28 Nil

1.20

1.20

Nil

Nelito Systems Ltd. $ *** Associate 1.27 1.27 Nil

1.27

1.27

Nil

Notes:

** Excluding interest accrued.

*** No repayment schedule.

### Right to convert to equity.

$ Provided for.

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, 2015. 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, 2015:

31st March, 2015

31st March, 2014

Buy/Sell Foreign Currency (in Millions) Rs. crore

Foreign Currency (in Millions)

Rs. crore
Forward Contracts (Buyer’s credit) Buy USD 45.89 286.78

USD 65.23

390.68

Forward Contracts (Firm Commitment) Buy GBP 6.57 60.74

GBP 0.24

2.39

Buy Euro 11.02 74.07

Euro 1.68

13.82

Buy USD 33.33 208.30

Nil

Nil

Currency Option (Euro Notes and FCCB) Buy USD 60.01 375.02

USD 252.00

1,509.23

Currency Option (Firm commitment) Buy USD 15.39 96.18

Nil

Nil

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

31st March, 2015

31st March, 2014

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 0.79 4.95

USD 1.46

8.73

(ii) Loan receivable from subsidiaries Nil Nil

USD 100.00

598.90

(iii) Interest receivable Nil Nil

USD 3.82

22.88

(iv) Dividend receivable USD 12.00 75.00

USD 10.00

59.89

(v) Other advances receivable from subsidiaries USD 1.32 8.24

USD 0.96

5.74

(b) Amounts payable in foreign currency on account of the following:
(i) Import of goods and services USD 18.84 117.76

USD 13.72

82.20

Euro 0.92 6.19

Euro 0.29

2.38

GBP 2.61 24.12

GBP 0.56

5.55

(ii) Capital imports Euro 0.20 1.31

Euro 0.44

3.60

JPY 107.06 5.58

JPY 152.30

8.91

USD 0.33 2.08

USD 0.42

2.51

GBP 0.06 0.59

GBP *

0.02

(iii) Interest payable USD 0.10 0.65

USD 2.71

16.22

(iv) Loans payable USD 0.05 0.31

USD 108.35

648.91

(v) Premium payable on borrowings Nil Nil

USD 28.41

170.15

(c) Bank balances USD 0.82 5.12

USD 0.84

5.02

TAKA 0.22 0.02

TAKA 0.22

0.02

41. Segment Reporting:

(a) Primary Segment Information:

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

Power Others Eliminations Total
REVENUE
External Revenue 8,012.89 664.80

-

8,677.69

8,217.19

458.34

-

8,675.53

RESULT
Total Segment Results 1,604.42 60.54

-

1,664.96

1,933.28

67.52

-

2,000.80

Finance Costs (1,047.46)

(868.21)

Unallocable Income net of Unallocable Expense 898.15

358.57

Income Taxes (505.36)

(537.08)

Profit after Tax 1,010.29

954.08

OTHER INFORMATION
Segment Assets 15,306.33 1,296.36 - 16,602.69

13,990.65

1,187.60

-

15,178.25

Unallocable Assets 16,958.50

15,360.78

Total Assets 33,561.19

30,539.03

Segment Liabilities 3,005.60 682.97 - 3,688.57

2,560.91

620.17

-

3,181.08

Unallocable Liabilities 12,749.16

12,825.04

Total Liabilities 16,437.73

16,006.12

 

Power Others Eliminations Total
Capital Expenditure 1,169.69 86.45 - 1,256.14

999.98

100.97

-

1,100.95

Non-cash Expenses other than Depreciation/Amortisation (to the extent allocable to segment) - 8.53 - 8.53

3.55

4.41

-

7.96

Depreciation/Amortisation charged to the Statement of Profit and Loss Account (to the extent allocable to segment) 572.82 2.47 - 575.29
Depreciation on account of change in useful life of assets and charged to retain earnings. 10.75 0.69 - 11.44
Total Depreciation 583.57 3.16 - 586.73

569.18

17.96

-

587.14

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

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

(b) Secondary Segment Information:

The Company’s operations are mainly confined within India and as such there are no reportable geographical segments.

42. Earnings Per Share:

31st March, 2015

31st March, 2014

Basic
Net profit for the year (Rs. crore) 1,010.29

954.08

Less: Contingencies Reserve (provided)/writeback for the year ( Rs. crore) 10.00

9.00

1,000.29

945.08

Less: Distribution on Unsecured Perpetual Securities ( Rs. crore) 112.88

112.88

Net profit for the year attributable to the equity shareholders ( Rs. crore) 887.41

832.20

The weighted average number of Equity Shares for Basic Earnings Per Share (Nos.) 269,15,47,867

246,33,94,672

Par value Per Share (in Rs. ) 1.00

1.00

Basic Earnings Per Share (in Rs. ) 3.30

3.38

Diluted
Net profit for the year attributable to the equity shareholders ( Rs. crore) 887.41

832.20

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

132.35

Profit attributable to equity shareholders on dilution ( Rs. crore) 887.41

964.55

The weighted average number of Equity Shares for Basic Earnings Per Share (Nos.) 269,15,47,867

246,33,94,672

Add: Effect of potential Equity Shares on Conversion of FCCB (Nos.) Nil

9,64,40,896

The weighted average number of Equity Shares for Diluted Earnings Per Share (Nos.) 269,15,47,867

255,98,35,568

Par value Per Share (in Rs. ) 1.00

1.00

Diluted Earnings Per Share (in Rs. ) - Anti Dilutive 3.30

3.77

Diluted Earnings Per Share restricted to Basic Earning Per Share (in Rs. ) 3.30

3.38

Note:

Pursuant to the rights issue, as stated in note 3 (e) earnings per share (EPS) in respect of previous year has been restated as per Accounting Standard-20 (AS-20)- "Earnings Per Share" , specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

43. Disclosures as required by Accounting Standard-29 (AS-29) "Provisions, Contingent Liabilities and Contingent Assets" as at 31st March, 2015: 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 24.43 24.62 (2.85) (16.09) 30.11

20.02

19.54

(2.28)

(12.85)

24.43

Provision for Premium on Redemption of FCCB 170.15 5.10 @ (175.25) - -

154.52

15.63 @

-

-

170.15

Provision on Premium on Redemption of Debentures 94.20 - (53.70) - 40.50

134.70

-

(40.50)

-

94.20

@ On account of exchange loss. Previous year’s figures are in italics 44. Utilisation of Rights Issue proceeds:

As stated in Note 3 (e) On 25th April, 2014, the Company allotted 33,15,52,894 equity shares of Rs. 1/- each at a price of Rs. 60/- per equity share aggregating to Rs. 1,989.32 crore pursuant to shares issued under Rights Issue. Status of Utilisation of the Rights Issue proceeds is as under:

Rs. crore
Particulars Amount proposed to be financed from Net Proceeds Amount utilised Balance amount as at 31st March, 2015
Part funding of capital expenditure 300.00 243.64 56.36
Part repayment of borrowings 533.15 527.34 5.81
Extend facilities to Company’s subsidiary towards part repayment of the
subsidiary’s borrowings 639.51 582.63 56.88
General corporate purposes 498.35 480.25 18.10
Issue related expenses 22.37 17.76 4.61
1,993.38 1,851.62 141.76
Less: Value of Shares in Abeyance (4.06) - (4.06)
Total 1,989.32 1,851.62 137.70

The balance unutilised amount have been temporarily deployed in fixed deposits.

45. The Company is engaged in the business of providing infrastructural facilities as per Section 186(ii) read with Schedule VI of the Act, Accordingly, disclosures under Section 186 of the Act, is not applicable to the Company.

46. The Company has interests in the following Joint Ventures-Jointly Controlled Entities as on 31st March, 2015 and its proportionate share in the Assets, Liabilities, Income and Expenditure are given below:

31st March, 2015 31st March, 2015
Rs. crore Rs. crore Rs. crore Rs. crore Rs. crore Rs. crore
Name of the Joint Venture (Audited) Country of Incorporation % holding Assets Liabilities Contingent Liabilities Capital Commitment Income Expenditure including Tax
Tubed Coal Mines Ltd.
(TCML) India 40 9.42 0.19 11.36 2.12 0.03 8.49

17.52

0.22

11.36

3.11

0.04

0.10

Mandakini Coal
Company Ltd. (MCCL) India 33.33 90.01 51.58 20.26 12.17 Nil 0.09

82.89

44.37

20.26

8.73

Nil

0.18

Dagachhu Hydro Power
Corporation Ltd. (DHPCL) Bhutan 26 366.26 259.83 Nil Nil 0.43 1.03

326.55

219.51

Nil

Nil

0.12

0.19

Note: Previous year’s figures are in italics.

47. 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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