MIRA
INFORM REPORT
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Report Date : |
26.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE TATA POWER COMPANY LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody Street, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.09.1919 |
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Com. Reg. No.: |
11-567 |
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CIN No.: [Company
Identification No.] |
L28920MH1919PLC000567 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00252A |
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Legal Form : |
Subject is a Public Limited Liability Company. The Company's Shares
are Listed on the Stock Exchanges. |
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Line of Business : |
Generation, Transmission and Bulk distribution of electrical energy.
Energy in bulk is supplied by the companies jointly to industries,
distributing licensees and local authorities in Mumbai and surrounding areas. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 220000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Tata Group, the country’s premiere industrial
house. Available information
indicates high financial responsibility of the company. Financial position of the company is good. Business is active. Payments are always correct and as per
commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Bombay House, 24, Homi Mody Street, Mumbai – 400001, Maharashtra,
India |
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Tel. No.: |
91-22-56658282/ 56658888 |
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Fax No.: |
91-22-56658801/ 56658877/ 66658867 |
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E-Mail : |
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Website : |
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Plants : |
Thermal
Power Stations v
Trombay Generating Station, Mahul Road, Chembur Road, Mumbai - 400 074, Maharashtra v
Jojobera Power Plant, Jojobera, Jamshedpur – 831016, Bihar v
Wadi Power Plant, Adjoining ACC Wadi, Cement Plant, P. O. Wadi – 585
225, District Gulbarga, Karnataka v
Belgaum Power Plant, Plat Nos. 1234 to 1240 & 1263 to 1297, KIADB
Kanbargi Industriaal Area, Auto Nagar, Belgaum – 590010, Karnataka Hydro
Generating Stations v
Generationg Station Bhira P. O. Bhira, Taluka Mangaon, District
Raigad, Maharashtra – 402 308 v
Generating Station Bhivpuri, P. O. Bhivpuri Camp, Taluka Karjat,
District Raigad, Maharashtra – 410 201 v
Generating Station Khopoli, P. O. Khopoli Power House, District
Raigad, Maharashtra – 410 204 Strategic
Electronic Division v
42/43 Electronic City, Electronic City Post Office, Hosur Road,
Bangalore – 561 229, Karnataka Distribution
Division v
Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra |
DIRECTORS
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Name : |
Mr. Ratan N Tata |
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Designation : |
Chairman |
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Name : |
Mr. Menon P R |
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Designation : |
Managing director |
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Date of Birth/Age : |
61 years |
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Qualification : |
B Tech |
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Experience : |
36 years |
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Date of Appointment : |
16.10.1976 |
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Name : |
Mr. F. A. Vandrevala |
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Designation : |
Managing Director |
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Date of Birth/Age : |
17.10.1950 |
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Qualification : |
B.Tech (Hons), PG DBM |
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Experience : |
33 years |
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Date of Appointment : |
01.11.2001 |
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Other Directorships : |
· The Tata Iron & Steel Company Limited, (Depute Managing Director – New & Allied Businesses) · Af-Taab Investment Company Limited · Chemical Terminal Trombay Limited · NELCO Limited · North Delhi Power Limited · Power Trading Corporation of India Limited · Tata Ceramics Limited · Tata Ryerson Limited · Tata Teleservices Limited · Tata Teleservices (Maharashtra) Limited · Videsh Sanchar Nigam Limited · Tata Services Limited |
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Name : |
Mr. A. J. Engineer |
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Designation : |
Director |
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Date of Birth/Age : |
65 years |
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Qualification : |
B.E. (Civil), C. Engg., FIE, AIIA |
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Experience : |
45 years |
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Date of Appointment : |
11.10.1984 |
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Previous Employment : |
Indian Explosives Limited (Construction Manager) |
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Name : |
Mr. Syamal Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
15.04.1934 |
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Qualification : |
Mechanical Engineer, Fellow of Imperial College of Science, Technology
& Medicine, U.K. |
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Experience : |
47 years |
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Date of Appointment : |
26.02.1998 |
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Other Directorships : |
· Tata Sons Limited · Tata International Limited · Tata Industries Limited · Tata BP Solar India Limited · Tata Advanced Materials Limited · Tata Elxsi Limited · Tata AIG Risk Management Services Limited · Graziella Shoes Limited · TCE Consulting Engineers Limited · Tata AIG Life Insurance Company Limited · Tata AIG General Insurance Company Limited · India Natural Gas Company Private Limited |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Name : |
Mr. C. P. Mistry |
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Designation : |
Director |
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Date of Birth/Age : |
04.07.1968 |
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Qualification : |
Fellow of the Institution of Civil Engineers, Master of Science in
Management (London Business School, 1997), B.E. Civil Imperial College, London
(1990), “O” Levels – Cathedral School, “A” Levels –Dulwich School |
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Date of Appointment : |
29.02.1996 |
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Other Directorships : |
· Shapoorji Pallonji & Company Limited · Buildbazar.com (India) Private Limited · Cyrus Investments Limited · Samalpatti Power Company Private Limited · Shapoorji Pallonji Finance Limited · Shapoorji Pallonji Power Company Limited · Shapoorji Pallonji Infrastructure Capital Company Limited · Sterling Investment Corporation Private Limited · Pallonji Shapoorji & Company Private Limited · Afcon Infrastructure Limited · Tata Elxsi Limited · United Motors (India) Limited · Shapoorji Pallonji & Company (Rajkot) Private Limited |
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Name : |
Dr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. R. K. Misra |
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Designation : |
Director (LIC Nominee) |
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Name : |
Mr. S. S. Bhatia |
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Designation : |
Director (State Government Nominee)
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Name : |
Mr. P. K. Kukde |
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Designation : |
Executive Director (Operations) |
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Date of Birth/Age : |
12.06.1943 |
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Qualification : |
M.E. (Electrical), University of Roorkee |
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Experience : |
35 years |
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Date of Appointment : |
23.01.2003 |
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Previous Employment : |
MSEB, Tech Member (T & D) Yashmun Engineers Limited |
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Name : |
Mr. Ramakrishnan S |
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Designation : |
Executive director |
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Date of Birth/Age : |
58 years |
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Qualification : |
B Tech (Mech) PG DBA, IIM – Ahmedabad |
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Experience : |
24 years |
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Date of Appointment : |
02.08.2002 |
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Previous Employment : |
Tata Chemicals Limited – Chief Finance Officer |
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Name : |
Mr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. S. Ramakrishnan |
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Designation : |
Executive Director (Finance) |
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Date of Birth/Age : |
56 years |
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Qualification : |
B.Tech. (Mech), PG DBA |
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Experience : |
33 years |
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Date of Appointment : |
01/10/2004 |
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Previous Employment : |
Tata Teleservices Limited (Managing Director) |
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Name : |
Mr .N H Mirza |
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Designation : |
Director |
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Name : |
Mr. Rahul Asthana |
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Designation : |
Director – State Government |
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Name : |
Mr. A J Engineer |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. B. J. Shroff |
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Designation : |
Company Secretary |
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Address: |
Bombay House, 24 Homi Mody Street, Mumbai – 400 001, Maharashtra |
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Name : |
Mr. Charan Amulya |
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Designation : |
Vice President (Internal Audit and Risk
Management) |
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Date of Birth/Age : |
58 years |
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Qualification : |
B.E. (Mech), PG DBA |
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Experience : |
34 years |
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Date of Appointment : |
15/10/2001 |
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Previous Employment: |
Information Technology Park Limited (Finance Director) |
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Name : |
Mr. Rahul Chaudhary |
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Designation : |
Chief Executive Officer (Broadband) |
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Date of Birth/Age : |
44 years |
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Qualification : |
B. E. (ELN), M. Tech., (Management System) |
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Experience : |
25 years |
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Date of Appointment : |
23/08/2001 |
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Previous Employment: |
BT Wireless (Programme Director) |
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Name : |
Mr. S. M. Gurunath |
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Designation : |
Vice President (Business Development &
Strategy Group) |
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Date of Birth/Age : |
48 years |
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Qualification : |
B. Tech. (Mechanical) |
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Experience : |
27 years |
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Date of Appointment : |
06/05/2002 |
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Previous Employment : |
Enron Corporation (Dabhol Power Company – CEO and SR. VP. Commercial) |
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Name : |
Mr. A. K. Sardana |
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Designation : |
Chief Executive Officer (NDPL) cum Executive
Director |
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Date of Birth/Age : |
46 years |
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Qualification : |
B. E. (Elec), AICWA, PGDM |
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Experience : |
24 years |
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Date of Appointment : |
12/07/2002 |
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Previous Employment : |
BSES Limited (V. P. Head of Corp Planning and EPC Business Group) |
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Name : |
Mr. Mahesh Bhandari |
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Designation : |
Vice President (Regulation) |
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Date of Birth/Age : |
44 years |
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Qualification : |
B. Com., LLB, ACA, MSM (USA), CPA (USA) |
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Experience : |
20 years |
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Date of Appointment : |
09/10/2003 |
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Previous Employment : |
Tata Consultancy Services – Executive Vice President |
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Name : |
Mr. Sunil Wadhwa |
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Designation : |
Chief Finance Officer (North Delhi Power Limited) |
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Date of Birth/Age : |
47 years |
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Qualification : |
ACSI and ACAI, ICSI and ICAI , University of Delhi |
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Experience : |
22 years |
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Date of Appointment : |
02/08/2002 |
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Previous Employment : |
Tata Chemicals Limited – Chief Finance Officer |
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Name : |
Mr. Grove White G F |
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Designation : |
Executive director and Chief
Operating Officer |
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Date of Birth/Age : |
57 years |
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Qualification : |
B.Sc (Hon), Mechanical Engineering, C. Engineering, MI Mech.E |
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Experience : |
42 years |
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Date of Appointment : |
30.10.2006 |
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Previous Employment : |
Eraring Energy Limited -
Managing Director |
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Name : |
Mr. Mehta A M |
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Designation : |
General Manager |
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Date of Birth/Age : |
56 years |
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Qualification : |
MBBS |
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Experience : |
36 years |
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Date of Appointment : |
16.10.1976 |
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Name : |
Mr. Sardana A K |
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Designation : |
Chief Executive Officer (NDPL) cum
Executive Director |
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Date of Birth/Age : |
48 years |
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Qualification : |
B E (Elec), university of Delhi, ICWAI, PGDM |
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Experience : |
26 years |
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Date of Appointment : |
12.07.2002 |
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Previous Employment : |
BSES Limited – V P Head of Corp Planning and EPC Business Group |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter Groups |
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Bodies corporate |
73660080 |
33.41 |
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Any other trust |
65624 |
0.03 |
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Public
shareholding |
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Institutions |
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Mutual Funds / Axis |
14822460 |
6.72 |
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Financial Institutions |
485230 |
0.22 |
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Central Government / State
Government |
135955 |
0.06 |
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Insurance companies |
42050784 |
19.07 |
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Foreign Institutional Investors |
45565584 |
20.67 |
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Non Institutions
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Bodies corporate |
2013410 |
0.91 |
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Individual Shareholders holding nominal share capital upto Rs.0.100
millions |
37453126 |
16.99 |
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Individual shareholders holding nominal share capital in excess of
Rs.0.100 millions |
251818 |
1.15 |
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Trust |
59082 |
0.03 |
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Overseas Corporate Bodies |
1160 |
0.00 |
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Share held by custodians and against which Depository Receipts have
been issued |
1630019 |
0.74 |
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Total |
2270700162 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Generation, Transmission and Bulk distribution of electrical energy.
Energy in bulk is supplied by the companies jointly to industries,
distributing licensees and local authorities in Mumbai and surrounding areas. |
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Products : |
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Imports : |
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Products: |
Low Sulphur Waxy Residue |
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Countries: |
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Terms : |
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Purchasing : |
L/C, D/A, D/P and also on Credit terms. |
GENERAL
INFORMATION
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No. of Employees : |
2870 |
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Bankers : |
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Facilities: |
Security (i) The Debentures mentioned in (a) have been secured by land, moveable
and immovable properties in Maharashtra as also receiving stations,
sub-stations and godowns in Maharashtra. (ii) The Debentures mentioned in (b) and (c) have been secured by land in Village Takve Khurd
(Maharashtra), moveable and immovable properties in and outside Maharashtra,
as also all transmission stations/lines, receiving stations and sub-stations
in Maharashtra. (iii) The loan from IDFC mentioned in (d) has been secured by a charge on
the moveable assets in Maharashtra. (iv) The loan from Export Import Bank of
India mentioned in (e) has
been secured by receivables (present and future), book debts and outstanding
monies. Redemption The debentures mentioned in (a) are redeemable at par in forty
equated quarterly installments commencing from 15th October, 1999.The Company
had the call option to redeem the same at the end of 5 years from 24th
November, 1999, by giving 30 days prior period notice, which was not
exercised. The debentures mentioned in (b)
are redeemable at par in three equal instalments commencing from 30th
July, 2008. The debentures mentioned in (c) are redeemable at premium in three installments at the end
of 9th, 10th and 11th year from 18th October, 2004. The Company has the call
option to redeem the same at a premium of 11.20% at the end of five years
from 18th October, 2004.
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Banking Relations
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Good |
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Auditors : |
·
·
A.
F. Ferguson and Company Chartered
Accountants ·
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S.
B. Billimoria and Company Chartered
Accountants · · Deloitte Haskins and Sells Chartered
Accountants |
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Joint Ventures: |
North Delhi Power Limited |
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Parent Company: |
Tata Sons Limited, India |
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Associates : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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22900000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.2290.000 millions |
|
300000000 |
Equity
Shares |
Rs.10/- each |
Rs.3000.000 millions |
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Total |
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Rs.5290.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
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203537712 |
Equity Shares [including 230308 shares (31st March, 2006 - 230308 shares) not
allotted but held in abeyance, 440270 shares cancelled pursuant to a Court Order
and 4804040 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] |
Rs.10/- each |
Rs.2035.400
millions |
Subscribed & Paid-up Capital:-
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
197897864 |
Equity Shares (excluding 230308 shares not
allotted but held in abeyance 440270 shares cancelled pursuant to a Court Order
and 4804040 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) |
Rs.10/- each |
Rs.1979.000
millions |
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Less: |
Calls-in arrears [including Rs.0.100
millions (31stMarch,2006 - Rs.0.100 millions) in respect of the
erstwhile The Andhra Valley Power
Supply Company Limited and the erstwhile The Tata Hydro-Electric Power Supply Company Limited] |
|
Rs.0.400
million |
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Add: |
Equity
Shares forfeited - Amount paid |
|
Rs.0.600
million |
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Total |
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Rs.1979.200 millions |
Of the above Equity Shares:
(i) 167500 shares are allotted at par as fully
paid pursuant to contracts without payment being received in cash.
(ii) 1133790 shares issued as Bonus Shares
by capitalization of General Reserve.
(iii) 4963500 shares issued on exercise of
the options by the financial institutions for the conversion of part of their
loans/subscription to debentures.
(iv) 5681818 shares are allotted at premium
as fully paid pursuant to contracts without payment being received in cash.
(v) 52084832 shares (excluding 47560 shares held
in abeyance) have been allotted to the shareholders of the erstwhileThe Andhra
Valley Power Supply Company Limited pursuant to the Scheme of Amalgamation
sanctioned by the High Court of Judicature, Bombay.
(vi) 35097824 shares (excluding 45168 shares
held in abeyance) have been allotted to the shareholders of the
erstwhileTheTata Hydro-Electric Power Supply Company Limited pursuant to the
Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1979.200 |
1979.200 |
1979.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
52594.200 |
47823.000 |
43631.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
54573.400 |
49802.200 |
45610.500 |
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LOAN FUNDS |
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|
|
1] Secured Loans |
13543.000 |
9460.000 |
10590.700 |
|
|
2] Unsecured Loans |
22790.600 |
18090.000 |
18009.400 |
|
|
TOTAL BORROWING |
36333.600 |
27550.000 |
28600.100 |
|
|
DEFERRED TAX LIABILITIES |
57.000 |
0.000 |
113.200 |
|
|
Special Appropriation Towards Project Cost |
5336.100 |
5336.100 |
5336.100 |
|
|
Capital Contributions From Consumers |
421.600 |
418.100 |
418.100 |
|
|
|
|
|
|
|
|
TOTAL |
96721.700 |
83106.400 |
80078.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
38113.600 |
32148.300 |
28084.700 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
4381.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
35701.500 |
34121.700 |
35029.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
161.500 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3964.200
|
4422.600 |
2970.300 |
|
|
Sundry Debtors |
14782.200
|
10582.300 |
6932.100 |
|
|
Cash & Bank Balances |
13677.200
|
9905.500 |
9796.000 |
|
|
Other Current Assets |
290.300
|
180.600 |
128.700 |
|
|
Loans & Advances |
7704.000
|
4639.400 |
5526.700 |
|
Total
Current Assets |
40417.900
|
29730.400 |
25353.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11257.200
|
7318.100 |
7068.700 |
|
|
Provisions |
6315.800
|
5892.000 |
5930.000 |
|
Total
Current Liabilities |
17573.000
|
13210.100 |
12998.700 |
|
|
Net Current Assets |
22844.900
|
16520.300 |
12355.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
61.700 |
154.600 |
227.100 |
|
|
|
|
|
|
|
|
TOTAL |
96721.700 |
83106.400 |
80078.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
47153.200 |
45322.400 |
43175.700 |
|
|
Other Income |
3439.900 |
3256.100 |
0.000 |
|
|
Net adjustment in respect of previous years |
0.000 |
19.700 |
0.000 |
|
|
Total Income |
50593.100 |
48598.200 |
43175.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
5860.100 |
7474.500 |
7587.900 |
|
|
Provision for Taxation |
1107.900 |
1369.100 |
2074.300 |
|
|
Profit/(Loss) After Tax |
6968.000 |
6105.400 |
5513.600 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Interest |
668.500 |
413.200 |
740.400 |
|
|
Export on FOB Basis |
374.600 |
415.600 |
0.000 |
|
Total Earnings |
1043.100 |
828.800 |
740.400 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Components Stores & Spares |
359.400 |
305.400 |
4752.000 |
|
|
Capital Goods |
617.900 |
99.600 |
0.000 |
|
|
Fuels |
8225.200 |
4702.200 |
0.000 |
|
Total Imports |
9202.500 |
5107.200 |
4752.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Fuel |
6645.800 |
5832.000 |
|
|
|
Generation , distribution, administration
and other expenses |
27089.100 |
23965.100 |
|
|
|
Net adjustment in respect of previous years |
6157.400 |
7189.900 |
35587.800 |
|
|
Depreciation / amortization |
26.500 |
0.000 |
|
|
|
Interest and Finance charges |
2919.200 |
2783.400 |
|
|
|
Provision for Contingencies |
1895.000 |
1652.800 |
|
|
|
Other Expenditure |
0.000 |
(300.000) |
|
|
Total Expenditure |
44733.000 |
41123.200 |
35587.800 |
|
QUARTERLY RESULTS
|
Year |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
15114.800 |
13505.600 |
14194.000 |
16344.700 |
|
Other Income |
1063.300 |
1404.000 |
414.400 |
2143.000 |
|
Total Income |
16178.100 |
14909.600 |
14608.400 |
18487.700 |
|
Total Expenditure |
12590.600 |
10892.100 |
11558.700 |
14823.400 |
|
Operating Profit |
3587.500 |
4017.500 |
3049.700 |
3664.300 |
|
Interest |
594.300 |
414.000 |
385.500 |
319.000 |
|
Gross Profit |
2993.200 |
3603.500 |
2664.200 |
3345.300 |
|
Depreciation |
714.400 |
709.000 |
704.500 |
777.100 |
|
Tax |
239.700 |
320.200 |
(13.100) |
318.300 |
|
Reported PAT |
1902.000 |
2574.300 |
1972.800 |
2249.900 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.55 |
0.53 |
0.45 |
|
Long Term Debt-Equity Ratio |
0.50 |
0.52 |
0.45 |
|
Current Ratio |
1.88 |
2.00 |
1.66 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
0.81 |
0.80 |
0.72 |
|
Inventory |
11.80 |
12.36 |
12.90 |
|
Debtors |
3.90 |
5.21 |
5.56 |
|
Interest Cover Ratio |
4.06 |
4.42 |
3.78 |
|
Operating Profit Margin(%) |
21.59 |
22.10 |
27.50 |
|
Profit Before Interest And Tax Margin(%) |
15.70 |
16.00 |
18.37 |
|
Cash Profit Margin(%) |
19.97 |
16.27 |
18.67 |
|
Adjusted Net Profit Margin(%) |
14.08 |
10.18 |
9.53 |
|
Return On Capital Employed(%) |
8.65 |
8.99 |
9.81 |
|
Return On Net Worth(%) |
12.03 |
8.70 |
7.37 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 18th September, 1919 at Mumbai in
Maharashtra having Company Registration Number 567.
Subject was incorporated along with The Andhra Valley Power Supply
Company Limited (1916) and The Tata Hydro-Electric Power Supply Company Limited
(1910) operates as a single entity viz. Tata Electric Companies.
It is India's largest private power supplier, owns 3 hydroelectric and 1
thermal generating stations. It has R
and D facilities throughout Mumbai, interconnected as a grid. It supplies power to two licensees in Mumbai
as well as over 100 direct bulk customers (textile mills, railways and
industrial consumers). Two client
licensees BSES Limited and Bombay Electric Supply and Transport Undertaking
(BEST) distribute retail power around 10 millions people in Mumbai.
Tata Group, was founded by Sir Jamsetji Tata in 1868. Tata Sons Limited, the apex body, oversees
management of most Tata Companies. They
have expanded operations across industries to cover steel, commercial vehicles,
construction equipments, inorganic chemicals, hotels, management/consultancy
services, engineering, electronics, telecom, refrigeration, air conditioning,
tea and coffee, commercial printing and food in addition to electricity
generation.
A pioneer in the Indian power sector, Subject is rated as one of the
country’s largest private power utilities. The fully integrated energy company
offers turnkey solutions to the industry and other hi-tech segments.
The company installed and commissioned India’s first 500 MW unit at its
Trombay thermal generating station. The
company has provided economical and reliable power for the last 80 years to the
highly industrialised state of Maharashtra and its capital, Mumbai.
The company’s main line of business is the generation, transmission and
distribution of power. Modern technology
and computer-based systems and management have helped the company to achieve
high levels of operational efficiency.
The subsidiaries of the company are Chemical Terminal Trombay Limited,
Af-Taab Investment Company Limited, Tata Power Trading Company Limited,
Alaknanda Hydro Power Company Limited, Tata Power Broadband Company Limited and
Powerlinks Transmission Limited.
The hydro-generation plants are in Khopoli, Bhivpuri and Bhira, and the
thermal power plants are located in Trombay in Maharashtra, Jojobera in Bihar
and Nadi and Belgaum in Karnataka. The Strategic
Electronics Division is located at Bangalore in Karnataka and Distribution
Division at Mumbai in Maharashtra.
The company commissioned the 81.3 MW power plant at Belgium in March
2001. The company had signed a power
purchase agreement with Karnataka Power Transmission Limited for 12 years from
commercial production. This guarantees
purchase by the latter to the extent of 75% of the plant load factor. The first 120 MW unit of the Jojobera
Thermal Station started commercial operation in February 2001 and the
construction of the second 120 MW unit is progressing well and commissioned in
December 2001.
The company integrated its operations with the amalgamation of The
Andhra Valley Power Supply Company and The Tata Hydro-Electric Power Supply
Company w.e.f. 1st April 2000.
The amalgamation of Jamshedpur Power Company (JAPCOL) was also completed
w.e.f. 1st April 2000.
On the other hand, it moved into the energy business with the acquisition
of 100% equity stake in Tata Petrodyne, a company engaged in Oil and Gas
exploration and production. It has
participated in two consortia that have oil and gas exploration, and
development rights in the Gulf of Cambay (Gujarat) and the Cauvery basin (Tamil
Nadu) sectors. Consequent to this
merger, Chemical Terminal Trombay (CTTL) has become a subsidiary of the company
with Subject holding 72%. CTTL is
engaged in the business of storing and handling of oils and chemicals.
The third area of operation for the company is communications. The company is engaged in the completion of
the Mumbai fibre optic network project.
The Power Business
This consists of licensee business, captive power plants (CPP) and
independent power plants (IPP) and services. In the licensee business, the
company seems confident of capturing 100% of the demand growth. In the CPP, it
expects Jojobera III to be operational by 2002 and Wadi II to be operational by
2003. The total CPP generation to touch almost 2,000 million units by 2003. In
the IPP, the Belgaum 80 mw project was commissioned in March 2001. In future,
TPL has merger and acquisition plans as also tapping the transmission and
distribution opportunities. In CPP and IPP business, the company will try to
spread itself geographically, balance gestations and SEB dependence to spread
its risks. In the services area, TPL has a strategy of core business extension
and deploying its expertise to earn fee income. In February, 2002 a 24 MW
replacement unit was commissioned successfully. It has also completed erection,
testing, commissioning and trial operations of power projects in UAE, Malaysia,
Saudi Arabia, Kuwait and Algeria.
The Energy Business
This consists of oil and gas, LNG and coalIn oil and gas, Tata Petrodyne
was taken over during the last year. It already has alliances, blocks, and
approvals in place and is in an advanced stage of business commencement. In
LNG, the company is in a joint venture (JV) led initiative - IndigasIn coal,
TPL is participating in private sector coal mining. As the company being is a
coal consumer itself, it means cost savings for the company.
The Communication Business
This consists of Mumbai broadband, Metro broadband and National Highway
projects. In Mumbai broadband, the company is implementing a 400-km optic fibre
infrastructure. It has a 1,200-km right of way in Mumbai alone for laying the
optic fibre cable. TPL has approved a Rs 1400 millions investment plan, which
has immediate accrual of returns. In Metro broadband, it has identified Pune,
Delhi, Hyderabad and Chennai as the areas where a parallel extension of Mumbai
model can be implemented. The estimated resource requirement is to the tune of
Rs 3000 millions. In the National Highway, the company plans to establish a busy
route highway between Mumbai-Delhi-Hyderabad-Pune-Chennai. The estimated
resource requirement is to the tune of Rs.5000 millions.
The Capex Plans
In 2002, TPL expects to make an investment close to Rs.12000 million out
of which Rs.7000 million will be in power business, Rs.1000 million will be in
energy business and the balance Rs.4000 million in communication business.
In 2003, the company plans to invest another Rs.5500 million, which will take
the total investment to Rs.17500 million. In 2004, the cumulative total
investment will be close to Rs.22500 million out of which Rs.12500 will be in
power, Rs.2500 million will be in energy and Rs.7500 million in communication
business.
In Jan. 2002, the company has signed an agreement with Power Grid Corporation
of India Limited for 'Tala Transmission Line' at a estimated cost of Rs.12000
million for Bhutan to Delhi 400 kV transmission line.
Subject has acquired 100% equity stake in Duncans North Hydro Power Company
Limited on Dec 15, 2003 thus making it a wholly owned subsidiary of the
company.
The company has acquired 100% of the equity in Duncans North Hydro Power
Company (DNHPC) during the financial year 2003-04,for the development of 330 MW
Shrinagar Hydro electric project located in Uttaranchal. DNHPC has since been
renamed as Alaknanda Hydro Power Company Limited. The 330 MW run of river
hydro project at Shrinagar in Uttaranchal being developed by the company
through its subsidiary Alaknanda Hydro Power Co Limited continues to be at development
stage. During November 2005 the company has sold its entire stake in Alaknanda
Hydro Power Co Limited to GVK Hydel Private Limited, a GVK Group Company for a
consideration of Rs. 31.20 Million. The company has sold its 75MW power plant
located at Wadi to ACC. The sale is effective from 1st July 2004.
Subject has also floated a new electricity trading company (Tata Power Trading
Company Limited) to undertake trading of electricity. It has applied to CERC
for a trading license.
During the financial year 2003-04, construction work have commenced on 120 MW
unit at Jojobera. Besides configuring it as a low tariff project, the company
is also constructing a 40 Kms transmission line to evacuate power. The unit is
scheduled to be commissioned in October 2005.
In the year 2004-05, the company has added two distribution sub-stations, nine
consumer substations with transformer, 36 Ckt. Km of HT/LT Cable network and 10
Ckt.Km of transmission lines. The company has signed a Memorandum of
Understanding with Damodar Valley Corporation for implementing the 1000 MW
Maithon Right Bank Thermal Power Project through a joint venture company. The
company is also planning to set a 1000 MW coal based coastal power plant in
Maharashtra.
The company has increased its installed capacity of Sonobuoys by 500 Nos and
with this expansion the total installed capacity of Sonobuoys has increased to
1000 Nos.
In 2005-2006, the construction of Captive Coal Berth at Trombay is progressing
as per schedule. The civil work is expected to be completed before the monsoon
and installation of the mechanical items will begin thereafter. During the year
the 15 consumer sub-stations, 73 circuit km (Ckt.km) of High Tension/Low
Tension cable network and 3 ckt. km of Transmission lines were added. The
companies Jojobera Power Plant completed and commissioned 120 MW coal-fired
Unit 4 in a record time of 23 months.
The company is also implementing a 250 MW coal based plant at Trombay to meet
License Area's future power requirement. The project is scheduled to be
commissioned during 2009. The company is in the process of installing 100 MW
low capital cost Diesel Generating sets, which have short commissioning period
of 10-12 months. The company is actively pursuing setting up an imported coal based
1000 MW power plant in coastal Maharashtra to meet the long-term power
requirements of Maharashtra (including Mumbai).
During 2005-2006, the company signed the shareholders agreement with Damodar
Valley Corporation (DVC) and holds 74% equity stake in Maithon Power Limited
and the balance 25% held by DVC.
The company is setting up a 120 MW power plant for Tata Steel Limited in
Jamshedpur. The estimated project cost of the project is Rs.4900 millions which
is expected to be completed in 26 months. The company is in discussions with
Tata Steel Limited for the expansion projects in various states in India such
as Chhatisgarh, Orissa and Jharkhand.
The company sold its shareholding in Alkananda Hydro Power Company during this
period.
Consequent to the Expression of interest signed on October 13, 2004 by the
Company with the Board of Investment Bangladesh, along with two other Tata
Group Companies Tata Steel and Tata Chemicals Limited, a joint final proposal
was submitted for the consideration of the Bangladesh Government. The company
proposed to set up a 480 MW gas based power Plant for meeting the requirement
of the steel plant to be set up by Tata Steel and 250-300 MW coal based plant
to supply power to the Bangladesh Power Development Board.
The company along with its local partners, have pre-qualified and has been
invited to participate in the bidding process for a 290-380 MW Open Cycle Gas
Turbine Peaking IPP project in South Africa. The company is participating in
the bidding process.
The Bareilly-Mandola portion of the Tala Transmission project(implemented by
Powerlinks Tranmission Limited, a joint venture between the company and Power
Grid Corporation of India Limited) has been completed three months ahead of the
scheduled project completion date of June, 2006.
FINANCIAL
HIGHLIGHTS
During the year, the Company reported its
highest ever Profit after Tax of Rs.6968.000 millions, a growth of 14.13% as
against Rs. 6105.400 millions for the previous year. The Operating Revenue is however
higher only by 4% at Rs. 47153.200 millions due to certain adjustments,
explained below.
The Company has received favourable
assessments/orders pertaining to its Mumbai Licence Area (Mumbai LA) relating
to previous years and therefore reversed tax provisions aggregating Rs.1817.400
millions. In accordance with the Regulations, Rs. 2239.400 millions (which
includes Rs.1817.400 millions of tax adjustment) has been considered as a
rebate. This rebate has been debited to revenue and consumers in the Mumbai LA
will be given a share of this amount as may be decided by the MERC. The impact
of these reversals will be incorporated by the MERC in the future tariff order.
The drop in Operating Profit and Profit before Tax is essentially due to the
above rebate being provided for in the books of account. Without this
adjustment, the revenue from Power business registered a growth of 11%uueto
higher volume sold coupled with higher recoverable fuel and power purchase
costs, recognised as revenue in the Mumbai LA and due to the full year
operation of the Jojobera Unit 4 during the year.
Consequent to the Company commissioning new
wind farms, Minimum Alternate Tax (MAT) is applicable for the year. Earnings
per Share (Basic) showed an increase of 17.19 % to Rs.34.02 Millions as against
Rs.29.03 Millions in the previous year. The Notes to accounts referred to in
the Auditors' Report are self-explanatory and therefore do not calls for any
further comment. The consolidated statements of the Company have been prepared
in accordance with Accounting Standard 21 on Consolidated Financial Statements,
Accounting Standard 23 on Accounting of Investments in Associates and
Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures,
issued by the Council of the Institute of Chartered Accountants
of India.
POWER BUSINESS
Operational
Highlights
The Company generated 14269 Million Units
(MUs) of power from all its power plants during the year as compared to 13746
MUs in the previous year, an increase of 3.80%.
Tata Power Licence
Area Business - Mumbai
Trombay Thermal
Power Station
The Trombay Thermal Power Station recorded a
generation of 9180 MUs during the year as compared to 9185 MUs generated in the
previous year. The generation at Trombay was backed down to accommodate higher
generation at the Hydro stations on account of good monsoons, thus optimizing
the balance between thermal and hydro generation and reducing the pressure of
rising fuel cost on the consumers. The 500 MW Trombay Unit 6 achieved an Indian
record of continuous operation of 12,405 hours. The Station completed 50 years
of operation in December, 2006.
Hydro Stations -
Bhira, Bhivpuri and Khopoli
The three hydro power plants collectively
generated 2138 MUs during the year. This is the highest ever generation by the
hydro plants with the previous high being 2024 MUs in the previous year. This
year has been significant with the hydro lakes receiving the second highest
total inflow of 2,344 million cubic metres (MCM), the previous high being 2,350
MCM in 1927. Maximising hydro generation during the monsoons, helped in
minimizing floods and preventing damage to property in Lonavla, Maval and
Mulshi areas.
Transmission and
Distribution
During the year, a Distribution Automation
System was commissioned using Code Division Multiple Access (CDMA) technology
benefiting all key consumers in Central Mumbai and North Mumbai by enabling
automatic restoration of power supply in case of any interruptions.
TATA Sales
During the year, the Mumbai LA recorded a
sale of 11,218 Mils, as against 10,421 MUs during the previous year. In
addition, the Company sold its off peak surplus generation of 286 MUs to
Maharashtra State Electricity Distribution Company Limited to meet the growing
demand in the rest of Maharashtra. However, to meet the increased demand in the
Mumbai LA during peak hours, the Company purchased 872 MUs during the year as
against 590 MUs in the previous year. Subsequent to the directives issued by
Maharashtra Electricity Regulatory Commission (MERC), the revised Power
Purchase Agreement (PPA) between the Company and Brihanmumbai Electric Supply
and Transport (BEST) was submitted to MERC for approval in December, 2006. The
approval from MERC is awaited. The PPA with Reliance Energy Limited (REL) is awaiting
finalization, pending resolution on the issue of allocation of capacity.
Tata Power Captive
Power Plant/Independent Power Producer Business
Jojobera Thermal
Power Station
The Jojobera Thermal Power Station recorded a
generation of 2731 MUs during the year as compared to 2375 MUs in the previous
year. The generation was higher by 15% due to full year operation of Unit 4
commissioned in November, 2005.
Belgaum Power
Station
The 81.3 MW Belgaum Independent Power Plant
(IPP) generated 189 MUs during the year as compared to 135 MUs in the previous
year due to increased demand in Karnataka. The Company continues to earn fixed
charges on the installed capacity in line with the PPA with the Karnataka Power
Transmission Corporation Limited.
Wind Generation
The existing 17 MW wind farm at Supa near
Ahmednagar, Maharashtra generated 29 MUs during the year as against 27 MUs
generated in the previous year. During the year, the Company successfully
commissioned additional wind power capacity of 37.6 MW at Khandke and 7.5 MW at
Bramanvel in Maharashtra. An additional capacity of 40.3 MWwill be commissioned
during the coming year. With this, the total capacity commissioned will be
102.4 MW.
Tata Power - New
Generation Projects
Ultra Mega Power
Project-Mundra
The Company was successful in winning one of
the first two Ultra Mega Power Projects (UMPP) through a competitive bidding
process at Mundra. The Letter of Intent for the 4000 MW Mundra project in
coastal Gujarat was issued to the Company in December, 2006.
The Company has acquired the project special
purpose vehicle company - Coastal Gujarat Power Limited (CGPL – initially
floated by the Power Finance Corporation), as a wholly owned subsidiary, in
April 2007. CGPL has signed PPAs with 7 procurers (distribution licencees) for
the sale of contracted capacity. In terms of the bid, the commitment for the
commissioning of the units is beginning from the first half of FY 13 to mid of
FY 15. The Company is targeting to commission the units well ahead of the
commitment. CGPL has also signed a contract for complete Boiler Island scope on
an EPC basis with Doosan Heavy Industries and Construction Company Limited,
Korea. The contract covers 45% of the total ordering that CGPL has to do under
this project. In keeping with its pioneering spirit, the Company brings in the
first 800 MW unit to India, thereby ushering India into the era of 800 MW
super-critical technology. CGPL is considering funding the project through a
debt equity mix of 80:20. CGPL is exploring various options of overseas and
domestic debt to meet its funding requirements. CGPL is targeting to achieve
financial closure for the project this financial year.
Maithon Joint Venture Project
The Company is implementing a 1050 MW
project along with Damodar Valley Corporation (DVC) as its joint venture
partner. The Company has a 74% equity stake in the project company-Maithon
Power Limited, with the balance 26% being held by DVC. The project has received
consents and is progressing as per schedule. The project is expected to achieve
financial closure in FY 08. The project site works will commence shortly and
the project is expected to be commissioned in the first half of 2011
Coastal
Maharashtra Project
The Company is actively pursuing setting up
a 1600 MW power project intially, going upto 2400 MW in coastal Maharashtra,
based on imported coal, to meet the long-term power requirements of Mumbai
city, Maharashtra state and other neighbouring states. The Company is actively
pursuing land acquisition with the support of Government of Maharashtra (GoM).
The Maharashtra Pollution Control Board has issued its 'Consent to Establish'
for the project. The clearance from the Ministry of Environment and Forests,
New Delhi is awaited.
M W Expansion
Project at Trombay Thermal Power Station
The 250 MW coal based plant at Trombay, to
meet Mumbai LA's future power requirement, is progressing as per schedule. The
capital cost of the project is Rs. 9900.000 millions and the project is
scheduled to be commissioned in the second half of 2008.
Diesel Generation
Capacity
In order to meet the growing peak demand
requirements of Mumbai city, the Company has imported used DG sets of 100 MW
capacity. The project implementation has got delayed because of difficulties in
land acquisition but is scheduled to be commissioned in early 2008.
Haldia Power Plant
During the year, the Company acquired the 2
x 45 MW (under construction) power plant from Hooghly Met Coke and Power Company
Limited (HMC), a 98% subsidiary of Tata Steel Limited (Tata Steel). The project
is scheduled for commissioning in late 2007 and would have a capital outlay of
Rs. 4100.000 millions. The plant will utilize coke oven gases to generate
power, a part of which will be sold under a PPA to the West Bengal State
Electricity Distribution Company Limited and the remaining traded through Tata
Power Trading Company Limited. The Company will also set up an additional 30 MW
plant to be commissioned . in the second half of 2008.
Captive Power
Plants for Tata Steel
Formation of
Industrial Energy Limited (IEL)
Pursuant to the new Captive Power Policy
under The Electricity Act, 2003, the Company and Tata Steel have set up IEL as
a joint venture company. The Company holds 74% of the equity capital and the
balance is held by Tata Steel. All new captive power projects to be developed
for meeting power requirements of Tata Steel will be developed by IEL. As on
date, IEL is developing the following projects:
(A) Unit for Tata
Steel Works, Jamshedpur
The 120 MW power plant being constructed at
Tata Steel Works in Jamshedpur at a cost of Rs. 4900.000 millions, is
progressing as per schedule and targeted for commissioning in the first half of
2008. The power plant will utilize waste blast furnace and coke oven gases to
generate power to meet the requirements of the expansion of the steel plant.
(B)
UnitSatJojobera
A 120 MW coal based unit is being developed
at a cost of Rs. 6200.000 millions. The order for the main plant and equipment
has been placed and the project is expected to be commissioned in the first
half of 2009.
With the commissioning of the two projects,
the generating capacity in Jamshedpur will be 667.5 MW.
(C) New Captive
units
The Company is in discussions with Tata
Steel for setting up new Captive Power Plants (CPP) for Tata Steel's various
expansion projects in states like Chhattisgarh, Orissa and Jharkhand.
Tata Power's
acquisition in Indonesian Coal Companies
The Company has signed definitive agreements
to purchase 30% equity stake in two major Indonesian coal producers, PT Kaltim
Prima Coal and PT Arutmin Indonesia and related associate companies owned by PT
Bumi Resources Tbk for a consideration of USD 1.1 billion prior to working
capital and other adjustments. The acquisition secures the Company's fuel
requirements for the Mundra UMPP and supports the assumptions made in the
bidfortheMundra UMPP. The off-take agreement signed by the Company entitles it
to purchase about 10.5 million tonnes of coal per annum.
The Company will partly finance the
transaction with a USD 600 million non-recourse debt to be raised by Special
Purpose Vehicles (SPVs) that have been set up in Mauritius and Cyprus for
investing in the coal companies. In addition, the SPVs will raise USD 350
million debt which will be guaranteed by the Company. The balance fund
requirement will come out of the Company's internal accruals and available
cash.
Captive Coal
Blocks
The Company had applied to the Ministry of
Coal, Government of India for 18 coal blocks in the states of Chhattisgarh,
Jharkhand, Andhra Pradesh and Orissa in order to obtain competitive Indian coal
for power generation. The applications are being pursued with the Ministry of
Coal.
Tata Power -
Distribution, Transmission and Power Trading Businesses
North Delhi Power
Limited (NDPL)
The Company's distribution joint venture
NDPL posted a revenue of Rs. 20522.000 millions during the year, a growth of
11.15% and a net profit of Rs. 1857.900 millions during the year as compared to
Rs. 1125.200 millions in the previous year. The Aggregated Technical and
Commercial (AT and C) losses have been reduced from 53.40% to 23.70 % in a
period of 4 years and 9 months, as against the regulatory target of 31.10% by
the end of 5 years. This has resulted in additional revenues of Rs. 2077.700
millions during the year as against Rs. 1721.600 millions during the previous
year, enabling NDPL to have an additional operating profit of Rs. 723.900
millions during the year as against Rs. 553.900 millions in the previous year.
NDPL declared a dividend of 16% for FY07. NDPL has won the 'Meritorious
Performance for years 2004-2005 and 2005-2006' award instituted by the Central
Electricity Authority (CEA) for power distribution in the country.
Powerlinks
Transmission Limited (Powerlinks)
Powerlinks, the first public-private joint
venture in power transmission in India has commenced commercial operation
during the year. With the commissioning of this line, four regions namely
Northern, Eastern, North-Eastern and Western regions are now in synchronous
mode. Powerlinks in its first year of operations has earned revenues of Rs.
1350.100 millions and a profit after tax of Rs. 205.700 millions. Powerlinks
has declared a maiden dividend of 1.8% for FY 07. Powerlinks has been
felicitated with "ENpower Awards 2006" for being adjudged as
"India's Best Corporation" in the category - Project Management for
the Transmission and Distribution sector.
Tata Power Trading
Company Limited (TPTCL)
TPTCL traded 1,205 MUs during the year as
compared to 675 MUs in the previous year, thereby resulting in an increase in
its revenues by 191% to Rs. 6037.600 millions from Rs. 2077.600 millions in the
previous year. Profit after tax also increased to Rs. 38.400 millions as against
Rs. 31.800 millions in the previous year. The operations have been expanded to
cover the entire country including the North-Eastern states. TPTCL declared a
dividend of 20% for the year FY 07 on its equity shares. The trading business
has been subject to a capon the profit per traded unit by the Central
Electricity Regulatory Commission in the year. This has been contested by major
power traders in the country and a final verdict on the same is awaited.
Financing
As a step towards meeting its funding
requirements, the Company has proposed to make a preferential issue of Equity
Shares and Warrants to Tata Sons Limited in accordance with the Chapter XIII of
the SEBI (Disclosure and Investor Protection) Guidelines, 2000 (SEBI DIP
Guidelines). The preferential issue comprises equity shares not exceeding
98,94,000 of Rs. 10 each in FY 08 and warrants not exceeding 1,03,89,000 with
an option to subscribe to 1 Equity Share of Rs. 10 each per warrant which
option shall be exercisable after 1st April, 2008 but not later than 18 months
from the date of issue of the warrants. The Company expects to raise
approximately Rs. 12000.000 millions through this issue in FY 08 and FY 09. The
above mentioned Equity Shares will be eligible for dividend for FY 07, once the
Equity Shares are issued, subscribed and allotted to Tata Sons Limited. The
Company is considering various options to meet its funding requirements and is
well positioned to raise the required borrowing from the overseas and domestic
market. During the year, the Company raised a long-term loan from
Infrastructure Development Finance Company Limited of Rs. 4500.000 millions to
meet its capex requirements and Commercial Papers of Rs. 5000.000 millions were
placed with domestic mutual funds. After the end of financial year, the Company
has also finalised a rupee denominated loan of Rs. 3000.000 millions from Asian
Development Bank and Indian Renewal Energy Development Agency Limited (IREDA)
to fund its new Wind project in Maharashtra.
The Company's long-term debt paper continues
to be rated high by credit rating agencies. However, the credit rating agencies
have put the Company on credit watch with negative implications/ negative
outlook/ review for a possible down grade, mainly following the Company's
decision to acquire equity in Indonesian coal companies and the execution of
the Mundra UMPP. The rating agencies will take a final view as and when the
full details of the projects and funding arrangements are finalized. The credit
rating agencies also believe that the Company's competitive position, adequate
liquidity, favourable debt maturity profile and good access to financial
resources mitigate some of the pressure on the ratings.
REGULATORY
MANAGEMENT
Tariff Order for FY
07
The MERC passed a tariff order in October,
06 in which it disapproved a part of the actual expenditure incurred for the
years FY 05 and FY 06. The Company had filed a review and clarification
petition with MERC, which was subsequently disposed off by MERC. In the said
order, MERC maintained its earlier stand. The Company is of the view, supported
by legal opinion, that the aforesaid order can be successfully challenged and
has therefore filed an appeal with Appellate Tribunal for Electricity (ATE) against
the above order. In light of the appeal, no adjustments, have been made in the
accounts for the current year in respect of these items.
Multi Year Tariff
(MYT) for FY 08 to FY 10
For Tariff determination, MERC has adopted
MYT principle for the licensees in Maharashtra. The Company had submitted its
Annual Revenue Requirement and Tariff proposal for FY 08 to FY 10. MERC issued
Tariff Orders for the Company's Generation, Transmission and Distribution
businesses covering the tariff for FY 08 and performance parameters for the
years FYOStoFY 10.
Standby Charges
The Company and REL filed Appeals before ATE
against the Order dated 31st May, 2004 passed by MERC on the sharing of standby
charges between the Company and REL for the period from 1st April, 1999 to 31st
March, 2004. The ATE set aside the MERC order and had directed the Company to
refund a sum of Rs. 3540.000 millions to REL along with interest at the rate of
10% per annum on the amount from 1st April, 2004 till the date of payment.
On an appeal filed by the Company, the
Supreme Court has stayed the operation of the ATE order. However, the Supreme
Court has directed the Company to deposit an amount of Rs. 2270.000 millions
and submit a bank guarantee for an equal amount, which the Company has complied
with. The date for the hearing is not yet being fixed.
Distribution
Licence in Mumbai
The ATE vide its order dated 22nd May, 2006
held that the Company has not been granted licence to undertake retail
distribution. The Company has filed an Appeal with the Supreme Court against
the above ATE order. The hearing has been completed and the judgment is
awaited.
FOREIGN EXCHANGE
EARNINGS/OUTGO
The foreign exchange earnings of the Company
during the year under review amounted to Rs. 1043.100 millions (previous year
Rs. 828.800 millions), mainly on account of Euro Notes currency swaps, interest
earned on Foreign Currency Convertible Bonds (FCCB) funds parked abroad and
project exports. The foreign exchange outflow during the year was Rs. 10154.400
millions (previous year Rs. 6479.500 millions), mainly on account of fuel
purchase of Rs. 8205.200 millions (previous year Rs. 4702.200 millions),
repayment of foreign currency loans with interest thereon, NRI dividends and
FCCB interest of Rs. 846.900 millions (previous year Rs. 1299.900 millions) and
purchase of capital equipment, components and spares and other miscellaneous
expenses of Rs. 1102.300 millions (previous year Rs. 477.400 millions).
AWARDS/RECOGNITION
During the year, the Company received
various awards and recognitions, significant amongst which are the following:
• Power Line's Expert Choice Award as the
"Most Admired Organisation in the Private/Joint Sector."
MANAGEMENT DISCUSSION
AND ANALYSIS
1. INDUSTRY
STRUCTURE AND DEVELOPMENTS
Power Sector in India
Enactment of The Electricity Act, 2003, has
brought about various policy and regulatory initiatives. The Government of
India (Gol) has finalised and issued the Rural Electrification Policy recently
with an objective to provide electricity to all households by 2009. This is in
addition to two other important policies viz. the National Electricity Policy
and the National Tariff Policy that were issued last year. The National Electricity
Plan, which was to be firmed up in 2005 by the Central Electricity Authority,
is, however, yet to be finalised. The Central and the State regulatory
institutions in the country are seen to be getting more forward looking and
have processed various regulatory orders on Annual Revenue Requirement (ARR),
Tariff formulation including Multi Year Tariffs, Open Access, Intrastate
Availability Based Tariff etc. The Appellate Tribunal for Electricity (ATE) has
also become active and functional as a body to address grievances against the
orders of Central and State Commissions. The Indian power sector appears to be
progressing well on the policy initiative and regulation front. The key to
Indian reform is improving efficiencies in the power distribution sector. While
the Regulatory Commissions are pressing for faster reduction of Aggregate
Technical and Commercial (ATandC) losses, its implementation and results are
slow. It is in this regard that the Central Government, the Prime Minister's
Office and the Planning Commission have been highlighting this aspect through
the Chief Ministers and the Chief Secretaries conferences. This is expected to
evolve consensus on the reforms model, particularly on the need to curb
commercial losses in the distribution segment of business. As has been the
experience, strong political support is needed to achieve the desired results
and ensure fiscal sustenance of the sector. In addition to the above, the
institutionalisation of the competitive bidding process for capacity addition
in generation as well as transmission projects, with the Centre/States offering
green-field ventures with key clearances in place would encourage investments,
bring competitive tariffs for the benefit of consumers and see quicker
execution of projects.
With visible progress on the legislative,
administrative and policy front, close monitoring of implementation at senior
levels of concerned Governments is critical to bridge the burgeoning
demand-supply gap and to support 8-10% GDP growth targets of the Indian
economy.
Generation
This year marked the end of the 10th Five
Year Plan. About 21,200 MW of capacity got added in the 10th Plan
against a target of 41,100 MW - 52% of target. In comparison, China has
installed 1,05,000 MW in 2006. Focused efforts are thus required to implement
the targeted 2,12,000 MW by 2012, up from the existing capacity of 1,32,000 MW.
The bidding for two of the nine planned Ultra Mega Power Projects (UMPP) viz.
Mundra and Sasan was completed early this year. The Company, one of the winning
bidders, has already moved ahead with the project. From concept to award, the
Gol facilitated the process completion in six months. Similar thus would help
expeditious capacity addition. Above all,the participation of major private
sector players in the bidding process has vindicated the quest for the Gol's
initiative for low tariff ultra mega projects. Successful and timely moves on
these projects will greatly help in mitigating the prevailing power shortage in
the
country.
Encouraged by the success of the UMPP route
followed by the Gol, many States are initiating the process of
inviting bids for mini UMPPs (on the lines
of the UMPP route). In addition to this, States are also inviting competitive
tariff based bids for sourcing their future short-term as well as long-term
power requirements. This is an encouraging development for the sector and
besides bringing transparency would also make tariffs competitive. Fuel such as
coal and gas would also need to be dovetailed in terms of capacity allocations
and linkages so that capacity addition programmes can progress smoothly.
Transmission
Development of select transmission projects
through private sector participation has been initiated. Fourteen transmission
projects have been identified for development through tariff based competitive
bidding. The bidding process for two of the identified transmission systems has
been taken up by the Gol. Power Grid Corporation of India Limited has also been
asked by the Gol to study and plan transmission lines for evacuation of power
from the proposed UMPPs to the beneficiary States. This is yet another
initiative which needs to be dovetailed with the capacity addition programme of
generation to harness the benefits of linking energy/fuel based availability in
diverse geographical locations to the load-centers in other parts of the
country.
Distribution and
State Electricity Boards
Efficiency improvement in the power
distribution sector is fundamental to power reforms. The Gol'sinitiative of Accelerated
Power Development and Reform Programme (APDRP) as a vehicle to drive reforms in
the distribution sector, has not yielded the much needed impetus to discipline
and improved consumer services. This is now being reviewed in order to link
performance improvement incentives with investments, fiscal discipline and
improved services. Similarly, some States have taken the initiative of
performance based franchise model for management of certain geographies which
are burdened with dilapidated networks and extensive AT and C losses. In the
meanwhile, successful models like the privatisation in Delhi need to be
replicated across more States, if sustainable and impactful change needs to be
achieved.
Rural
Electrification
The Rural Electrification Policy seeks to
provide electricity to all households by 2009 with a minimum lifeline
consumption of 1 unit per household per day by 2012. Allocation to the Rajiv
Gandhi Grameen Vidyutikaran Yojana (a National Rural Electrification Programme)
has been increased from Rs. 30000.000 millions in FY 07 to Rs. 39830.000
millions in FY 08. The distributed generation concept to meet the power
requirement of local rural networks has yet to take-off. The Gol's initiative
may be necessary to develop viable Public Private Participation (PPP) based
distributed generation models, based on Viability Gap Funding (VGF) options and
for their replication in different rural communities. This would take the load
off from State Power Utilities, propose self-reliance and self-governance in
power in rural communities and would encourage cottage, local agrarian industry
in the rural areas.
Fuel supply for
Power Generation
Recent discoveries of gas in Krishna
Godavari and Mahanadi basins along with the development of Coal Bed Methane
(CBM) are expected to provide the much needed fuel diversity in the next 2-3
years. Gas utilisation can substitute oil and command a remunerative price in
the industrial sector. However, it would need to establish its affordability
for the power sector to compete with imported coal. Till then, coal is likely
to be the mainstay for power generation. The power sector has shown great
interest in acquiring coal mines both in India and abroad to securitize fuel
supplies for existing and proposed power projects. The Gol has initiated steps
in promoting coal based generation at pitheads by identifying and offering
captive coal blocks to the power sector. While this has
received an overwhelming response, there is
a lack of clear policy and speed in allocating the coal blocks to various
applicants.
Renewable Energy
There has been an increased focus on
renewable energy. Many utilities as well as private developers are going ahead
with plans to develop, wind farms, biofuel based projects and solar projects.
To promote renewable energy and encourage its use, some State Commissions have
enforced Renewable Purchase Obligations (RPO) on the distribution licensees.
These licensees are required to meet a certain portion of their power
requirement through renewable energy, which is a laudable initiative. A simple
and convenient Clean Development Mechanism (COM) would supplement and boost
investment in renewable energy. For renewable energy projects to be viable,
Government/Regulatory support such as the present practice of allowing accelerated
depreciation, RPOs, higher tariff, etc. would need to continue. To attract
large scale investments, the Government could consider permitting trading of
tax breaks since new entrants may not have the capacity to fully utilize the
tax benefit. Similarly, the Government could enjoin land allocations to
encourage large scale
Development of wind farms and solar farms.
It is in trade
terms with:-
·
Yashmun
Engineers Limited
·
Hercules
Mechanical Works
·
Leak-Proof
Engineering (India) Private Limited
·
Nitin
Fire Protection Industries Limited
·
Nand
Kishore Khanna and Sons
·
Perfo
Mesh
Awards:
·
The 2nd Wartsila Mantosh Sondhi Award for outstanding contribution to
the Indian Power Sector in 2004.
·
Greentech Environment Excellence Award: Platinum to Jojobera Thermal
Power Plant, Jharkand in 2004.
·
Greentech Safety Award: Gold to Trombay Thermal Power Station, Mumbai in
2004.
·
The Power Plant Award, instituted by Electric Power International, to
the Trombay Thermal Power Station in 1995.
·
Outstanding Structures of the Year by the American Concrete Institute:
Bronze Award to the Trombay Thermal Power Station for the Year 1988-1989.
The company's
fixed assets of important value includes:-
· Goodwill,
· Land (including
land development),
· Hydraulic Works,
· Buildings,
· Railway Sidings,
· Roads, Crossings,
etc.,
· Plant and
Machinery,
· Transmission
Lines,
· Cable Network,
etc.,
· Furniture, Fixtures and Office Equipments,
· Technical Know-how
and Motor Vehicles,
· Launches,
· Barges,
· Helicopters, etc.
PRESS
RELEASES
Tata Power agrees to take 26% equity stake
in 114 MW Dagachhu Hydro Electric Power Project being developed by The Royal
Government of Bhutan (RGoB)
-
Mumbai, July 21, 2008
The Tata Power Company Limited, India’s largest integrated private
power company, today announced its partnership with The Royal Government of
Bhutan (RGoB) to develop the 114 MW run-of-the-river Hydro Electric Power
Project over river Dagachhu through Druk Green Power Corporation Limited
(DGPC). The project will be executed by the Special Purpose Vehicle- Dagachhu
Hydro Power Corporation Limited (DHPC).
Commenting on this partnership, Mr. Prasad Menon, Managing
Director, Tata Power said: “We are happy to work with The
Royal Government of Bhutan on the 114 MW Dagachhu Hydro Electric Power project.
This partnership consists of equity participation and off-take of power by the
Company and Tata Power Trading Company Limited (Tata Power Trading)
respectively.”
As part of this strategic partnership, Tata Power will acquire
a 26% stake in the project, while Tata Power Trading has negotiated to purchase
all the power generated from the project. Tata Power Trading will off-take
power from the project for a period of 25 years and the power will be delivered
at India-Bhutan Border. The power is expected to be evacuated through the Tala
Transmission Link into India’s Eastern Region Grid.
About Tata Power:
The Tata Power Company Limited is India's largest private
sector power utility with an installed generation capacity of over 2300 MW. The
Company has emerged as a pioneer in the Indian power sector, with a track
record of performance, customer care and sustained growth. Tata Power has a
presence in all the segments of the power sector viz generation (thermal,
hydro, solar and wind), transmission and distribution. The Company won the bid
for the first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) and has
successful public-private partnerships in generation, transmission and
distribution- North Delhi Power Limited with Delhi Vidyut Board for
distribution in North Delhi, ‘Powerlinks Transmission Limited,.’ with Power
Grid Corporation of India Limited,. for evacuation of Power from Tala hydro
project in Bhutan to Delhi and ‘Maithon Power Limited,.’ with Damodar Valley Corporation
for a 1000 MW Mega Power Project.
Disclaimer Statement: Some of the statements in this document, except for the historical information, are forward-looking statements. These forward-looking statements include references to growth projections, plans, strategies, intentions and beliefs concerning our business and operating environment. There are risks, uncertainties and other factors that may cause actual results to differ materially from those projected by these forward-looking statements.
Tata Power Completes the Signing of
Financial Agreements for 4000 MW Ultra Mega Power Project at Mundra, Gujarat
-
Mumbai, April 24, 2008
Consortium of Banks including multilateral
agencies and Exim banks to finance the project
The Tata Power Company Limited, India's largest private
power company, today announced the completion of signing of financial
agreements for 4000 MW Ultra Mega Power Project (UMPP), coming up at Mundra,
Gujarat under the Special Purpose Vehicle (SPV) Coastal Gujarat Power Limited
(CGPL) The cost of the project is estimated at INR 17000 crores (USD 4.2
billion) with the first of the five units to be commissioned in September 2011.
The entire plant is expected to be commissioned by end of 2012.
A Consortium of Banks including leading multilateral
agencies and Exim Banks are participating in the financing of this project. The
financing comprises of equity of Rs. 4250 crores, External Commercial
Borrowings (ECB) of upto USD 1.8 billion and Rupee Loans of upto Rs. 5550
crores. The ECB's include The Export-Import Bank of Korea, International
Finance Corporation, Korea Export Insurance Corporation, Asian Development
Bank, BNP Paribas and Rupee lenders include SBI (Lead bank for rupee lenders),
India Infrastructure Finance Co. Limited,., Housing and Urban Development
Corporation Limited,., Oriental Bank of Commerce, Vijaya Bank, State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Travancore and
State Bank of Indore. SBI Caps are the Financial Advisors and Mandated Lead Arranger
for Rupee loans.
Speaking on the occasion, Mr. Prasad R. Menon, Managing
Director, Tata Power said "The signing of the financing agreements for
Mundra UMPP is an important milestone. The good response demonstrates the faith
of the lenders in our execution capabilities and expertise to complete the
project in time. The terms of debt financing provides us long tenure of loans
supporting our competitive bid price assumptions."
The 4000 MW Mundra Ultra Mega Power Project (UMPP) is the
first of the UMPPs which heralds the entry of super critical boiler technology
in India for the first time which is significantly environment friendly than
the conventional ones using sub-critical boiler technology. The project site,
approx 1000 Hectares is located south of Tunda Wand village in Mundra Taluka,
Kutch district of Gujarat. The project consists of 5 units, each of 800 MW
which will generate saleable power of 3800 MW to be supplied to five states
namely Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The super-critical
technology and the choice of unit sizes will help the project achieve higher
efficiency thus saving fuel and reducing greenhouse gas emissions vis-ŕ-vis
conventional technology prevailing in the country.
The Site preparatory works are in progress and orders for
all major equipments have been placed. The Company has signed the contract for
complete Boiler Island scope on EPC basis with Doosan Heavy Industries &
Construction Co. Limited,., Korea and contract for supply of Steam Turbine
Generators with Toshiba Corporation. The project has been comprehensively
covered by a seamless insurance cover by Oriental Insurance Co Limited.
Coastal Gujarat Power Limited:
Coastal Gujarat Power Limited is a Special Purpose Vehicle
(SPV) formed for Mundra UMPP.. Coastal Gujarat Power Limited has signed a Power
Purchase Agreement (PPA) with seven procurers (distribution licensees) from
five states i.e Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the
sale of contracted capacity and supply of 3800 MW electricity to these
licensees.
About Tata Power:
Tata Power is India's largest private sector power utility
with an installed generation capacity of over 2300 MW and a presence in all the
segments of the power sector viz Generation (thermal, hydro, solar and wind),
Transmission, Distribution and Trading. The Company has successful
public-private partnerships in Generation, Transmission and Distribution -
"North Delhi Power Limited" with Delhi Vidyut Board for distribution
in North Delhi, 'Powerlinks Transmission Limited, with Power Grid Corporation
of India Limited, for evacuation of Power from Tala hydro plant in Bhutan to
Delhi and 'Maithon Power Limited, with Damodar Valley Corporation for a 1050 MW
Mega Power Project at Jharkhand. It has recently acquired 30% stake in Coal
Companies at Indonesia and is developing the first 4000 MW Ultra Mega Power
Project at Mundra (Gujarat) based on super-critical technology. With its track
record of technology leadership, customer care and redefining contours of the
Indian power sector, Tata Power is poised for a five-fold growth and committed
to 'lighting up lives' for generations to come.
Tata
Power’s Net Profit up by 24.84% at Rs.8699.000 Millions
Revenues
up by 25.46% at Rs.59159.100 Millions
Steps
up Dividend to Rs.10.50 per share
· PAT at Rs.869.90 Crores as against Rs.6968.000 Millions
· Annual Sales highest at 14,959 MUs (Previous high at 14,422 MUs in FY07)
· Annual Generation highest at 14,717 MUs (Previous high at 14,269 in FY07)
· Completed Financing of 4000 MW Mundra Ultra Mega Power Project
· Completed Financing of 1050 MW Maithon Power Project
Mumbai,
23rd June 2008: The Tata Power Company Limited,
India’s largest integrated private power company, today announced its Annual
Results for the financial year ended 31st March 2008.
FINANCIAL HIGHLIGHTS- FY08:
For the Financial Year Ended 31st March 2008, Tata Power
reported revenues at Rs.59159.100 Millions as compared to Rs.47153.200 Millions
in the previous year. Profit after Tax (PAT) witnessed a growth of 24.84% at
Rs.8699.000 Millions as against Rs.6968.000 Millions for the previous year.
The Company’s consolidated revenue rose by 68.18% at
Rs.108908.600 Millions as compared to Rs.64756.400 Millions in the previous
year. The Consolidated PAT for the year at Rs.10550.700 Millions rose by 38.90%
as against Rs.7596.100 Millions for the previous year. The increase in the
Operating revenue has been mainly on account of inclusion of the Company’s
share in the Indonesian Coal companies. The Company reported 3.72% growth in
its Annual Sales at 14,959 MUs in FY08 against 14,422 MUs and highest annual
generation at 14717 MUs (Previous high at 14269 MUs in FY07). Trombay thermal power station recorded the highest ever generation of
10002 MUs crossing 10000 mark for the first time with a PLF of 85.61% for FY08
(Previous Record of 9511 MU in FY05 at PLF of 81.63%). Jojobera thermal power station also recorded highest ever
generation at 2862 MU in FY08 (Previous highest was at 2731 MU in FY 07).
Commenting on the
Company’s performance, Mr. Prasad Menon, Managing Director, Tata Power said: “The Company continues to consolidate its
growth plans through capacity expansion and has achieved significant milestones this fiscal by completing financing of
its two key projects under implementation-
4000 MW Mundra project and 1050 MW Maithon project and synchronization of its
first unit at Haldia power
plant. On an encouraging note, all our units are running at high plant load
factor leading to higher
generation and profitability as a result of our continued focus on optimizing
operational efficiencies. It is
our endeavour to continue to perform on a sustained basis through robust
performance and cost-focus and
by setting industry benchmarks through enhanced efficiency.”
GROWTH PLANS:
The Company has charted out aggressive growth plans for
addition of 10000 MW of generation capacity in the next five years and the
projects are in various phases of implementation as mentioned below:
4000 MW, Mundra Ultra Mega Power Project on Fast Track:
Tata Power reinforced its commitment to accelerate the pace
of the project by announcing the completion of signing of financial agreements for 4000 MW Ultra
Mega Power Project (UMPP), coming up at Mundra, Gujarat owned by its subsidiary
Coastal Gujarat Power Limited (CGPL). The cost of the project is estimated at
INR 170000.000 Millions (USD 4.2 billion) with the first of the five units to
be commissioned in September 2011.
1050 MW Maithon Joint Venture Project: also completed its financing. The
Project, estimated at a cost of Rs.44500.000 Millions is being funded on a
debt-equity ratio of 70:30. The promoters namely Tata Power and DVC would bring
in equity in a ratio of 74% and 26% respectively. The debt for the project is
Rs.31150.000 Millions and is being financed by various banks led by State Bank
of India (SBI).
250 MW (Unit 8) expansion project at Trombay is progressing ahead of
schedule and will be commissioned by October 2008.
Wind Farm Projects: The
50.4 MW Khandke Project was completed. Two additional wind projects of 50.4 MW
each are being developed in Jamnagar district at Gujarat and Gadag district at
Karnataka. Order has been placed for setting up these machines.
Captive Power Projects for Tata Steel: The 120 MW Power House # 6 at Tata Steel Works, Jamshedpur will be
commissioned this financial year. The 120
MW Unit # 5 at Jojobera is also progressing as per schedule and will be
commissioned in the next financial year.
120 MW Haldia power plant: The Unit 1 of 2 x 45 MW Phase of Haldia Project was
synchronized with the grid in April 2008. The 2nd unit is scheduled to
commission later this year.
2400 MW Coastal Maharashtra Project:
The Company is actively pursuing setting up mega power
project in coastal Maharashtra and is in discussions with Government of
Maharashtra (GoM) for getting required assistance in land acquisition.
Acquisition of 30% stake in Indonesian Coal Mines:
The Company completed the refinancing of its bridge loan
taken for the acquisition of 30% equity stakes (the “Purchase”) in major
Indonesian thermal coal producers, PT Kaltim Prima Coal (“KPC”) and PT Arutmin
Indonesia (“Arutmin”) (together the “Coal Companies”), as well as related
trading companies owned by PT Bumi Resources Tbk (“Bumi”). The Company
successfully refinanced USD 860 million out of a total of USD 950 million
bridge loan taken at the time of acquisition.
Captive Coal Blocks:
Tubed Coal Block in Jharkhand: A Joint-Venture has been formed with
the Company and Hindalco and Tubed Coal Mining Limited has been registered.
Mandakini Coal Block in Orissa: The screening Committee of Ministry of
Coal has allotted Mandakini Coal Block in Orissa jointly to Tata Power, Jindal
Photo and Monnet Ispat. Heads of agreement has been signed with JV partners.
OTHER BUSINESSES:
North Delhi Power Limited (NDPL) The Company’s distribution joint
venture NDPL posted revenue of Rs.22872.300
Millions during the year,
a growth of 11% as compared to the previous year of Rs.20522.000 Millions and a
net profit of Rs.2815.800 Millions during the year as compared to Rs.1856.500
Millions in the previous year. The Aggregated Technical and Commercial Losses
(AT&C) have been brought down from 23.70 % to 18.4%. This is 3.64% lower
than the DERC approved level resulting in an incentive of Rs.533.800 Millions
for the company.
Powerlinks Transmission Limited (Powerlinks): Powerlinks, the first public-private joint
venture in power transmission in India has earned revenues of Rs.2455.200
Millions as against Rs.1350.100 Millions in the previous year. The Profit after
Tax also increased to Rs.584.100 Millions from Rs.205.700 Millions in the
previous year.
Tata Power Trading Company Limited (TPTCL) TPTCL traded 1711 MUs during the year
as compared to 1,205 MUs in the previous year, thereby resulting in an increase
in its revenues by 46% to Rs.8821.200 Millions from Rs.6028.700 Millions in the
previous year. The Profit after Tax also increased from Rs.43.000 Millions as
against Rs.38.400 Millions in the previous year.
AWARDS AND ACHIEVEMENTS:
· “Greentech Safety Gold Award 2008” in Thermal Power sector for “Outstanding achievement in Safety Management” awarded to Trombay Thermal Power Station for the 5th consecutive year.
· “Suraksha Puraskar” by the National Safety Council of India was awarded to Jojobera, for developing and implementing very effective Safety Management Systems and Procedures during the assessment period of three years – 2003-05.
· Silver Shield awarded for Bhira and Bhira Pump Storage Scheme (6X25 + 1X150 MW), adjudged the second best performing station in the country by the Central Electricity Authority.
· Jojobera also completed successful implementation of Integrated Management System and received certification from TUV.
· Association of Business Communicators India – Award 2007, Bronze in Social Responsibility Communication was won jointly with Reliance Energy Limited,. & BEST for the Energy Conservation campaign “I Will, Mumbai Will”.
About Tata Power:
The
Tata Power Company Limited is India's largest private sector power utility with
an installed generation capacity of over 2300 MW. The company has emerged as
a pioneer in the Indian power sector, with a track record of performance, customer care and sustained
growth. Tata Power has a presence in all the segments of the power sector viz generation (thermal, hydro, solar
and wind), transmission and distribution. The Company won the bid for the first 4000 MW Ultra Mega Power Project
at Mundra (Gujarat) and has successful public-private partnerships in generation, transmission and distribution-
North Delhi Power Limited with Delhi Vidyut Board for distribution in North
Delhi, ‘Powerlinks Transmission Limited,.’ with Power Grid
Corporation of India Limited,. for evacuation of Power from Tala hydro
project in Bhutan to Delhi and ‘Maithon Power Limited.’ with Damodar Valley
Corporation for a 1000 MW Mega Power
Project
OTHER INFORMATION:
Contacts
For Power Supply
to Consumers in Mumbai
Technopolis Knowledge Park
Nelco Compound
Mahakali Caves Road
Andheri, Mumbai 400 093
Tel: (91 22) 56688357/56688359/56688360/56688554
Fax: (91 22) 5668 8363
Call Center
Toll Free No. : 1600-22-7575
Phone No. : (91 22) 2577 4824 / 2577 4825/2577 4830
For Power Projects
and Related Services
The Tata Power Company Limited
Strategy and Business Development Department
Corporate Center Block A,
34 Sant Tukaram Road, Carnac Bunder,
Mumbai - 400 009
Tel : (91 22) 5665 8733
Fax : (91 22) 5665 8626
For Broadband
Communication
Tata Power Broadband Company Limited
4th Floor, India-Re House, Sterling Cinema Building, Murzban Road
Mumbai - 400 001
Tel : (91 22) 56658796
Fax : (91 22) 56658787
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|