MIRA
INFORM REPORT
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Report Date : |
13.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE TATA POWER COMPANY LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody Street, Fort, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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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 : |
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 400000000 |
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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, Fort, 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. D. M. Satwalekar |
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Designation : |
Director |
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Name : |
Mr. R. H. Patil |
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Designation : |
Director |
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Name : |
Mr. P. G. Mankad |
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Designation : |
Director |
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Name : |
Mr. S. Padmanabhan |
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Designation : |
Executive Director |
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Name : |
Mr. Banmali Agrawala |
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Designation : |
Executive 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 30.06.2009)
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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 |
33.36 |
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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 |
16085520 |
7.29 |
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Financial Institutions |
303256 |
0.14 |
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Central Government / State
Government |
136705 |
0.06 |
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Insurance companies |
41771325 |
18.94 |
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Foreign Institutional Investors |
45954747 |
20.84 |
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Non Institutions
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Bodies corporate |
2310672 |
1.05 |
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Individual Shareholders holding nominal share capital upto Rs.0.100
millions |
37008254 |
16.71 |
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Individual shareholders holding nominal share capital in excess of
Rs.0.100 millions |
2518955 |
1.14 |
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Trust |
59198 |
0.03 |
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Overseas Corporate Bodies |
640 |
0.00 |
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Share held by custodians and against which Depository Receipts have
been issued |
679896 |
0.31 |
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Shares Held by custodians and against which depository receipts have been issued |
225830 |
0.10 |
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Total |
220780702 |
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 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. 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. The loans from Asian Development Bank and Industrial Renewable Energy Development Agency mentioned in (d) and (f) respectively have been secured by a charge on the tangible moveable properties, plant & machinery and immoveable properties situated at village Khandke, District Ahmednagar in Maharashtra. The loans from IDBI Bank mentioned in (e) have been secured by a pari passu charge of all moveable fi xed Assets (excluding land and building), present and future (except assets of all wind project both present and future) including moveable machinery, machinery spares, tools and accessories. The loans from IDFC mentioned in (g) has been secured by a charge on the moveable assets in Maharashtra. The loan from Export Import Bank of India mentioned in (h) 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 : |
Good |
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Auditors : |
·
A. F. Ferguson and Company Chartered
Accountants ·
S. B. Billimoria and Company Chartered
Accountants · Deloitte Haskins and Sells Chartered
Accountants Solicitors ·
Mulla and Mulla and Craigie Chartared Accountant |
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Joint Ventures: |
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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 :
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No. of Shares |
Type |
Value |
Amount |
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22900000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.2290.000 millions |
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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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226340010 |
Equity Shares of Rs.10 each (31st March, 2007 - 203537712 shares)
[including 230308 shares (31st March, 2007 - 230308 shares) not allotted but
held in abeyance, 440270 shares cancelled pursuant to a Court Order, 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.2237.200
millions |
Subscribed & Paid-up Capital:-
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No. of Shares |
Type |
Value |
Amount |
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|
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|
220700162 |
Equity Shares of Rs.10 each ( 31st March, 2007 - 19,78,97,864 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.2207.000
millions |
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Less: |
Less - Calls in arrears [including Rs.0.100 million in respect of the erstwhile The Andhra Valley Power Supply Company Limited and the erstwhile The Tata Hydro- Electric Power Supply Company Limited] |
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Rs.0.400
million |
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Add: |
Add: Equity Shares forfeited - Amount paid |
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Rs.0.600
million |
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Total |
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Rs.2207.200 millions |
Of the above Equity Shares:
- 167500 shares are allotted at par as fully
paid pursuant to contracts without payment being received in cash.
- 1133790 shares issued as Bonus Shares by capitalization
of General Reserve.
- 4963500 shares issued on exercise of the
options by the financial institutions for the conversion of part of their
loans/subscription to debentures.
- 5681818 shares are allotted at premium as fully
paid pursuant to contracts without payment being received in cash.
- 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.
- 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 |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2207.200 |
1979.200 |
1979.200 |
|
|
2] Share Warrants |
609.900 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
72375.100 |
52594.200 |
47823.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
75192.200 |
54573.400 |
49802.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23310.900 |
13543.000 |
9460.000 |
|
|
2] Unsecured Loans |
7061.800 |
22790.600 |
18090.000 |
|
|
TOTAL BORROWING |
30372.700 |
36333.600 |
27550.000 |
|
|
DEFERRED TAX LIABILITIES |
189.400 |
57.000 |
0.000 |
|
|
Special Appropriation Towards Project Cost |
5336.100 |
5336.100 |
5336.100 |
|
|
Capital Contributions From Consumers |
460.800 |
421.600 |
418.100 |
|
|
|
|
|
|
|
|
TOTAL |
111551.200 |
96721.700 |
83106.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
46872.300 |
38113.600 |
32148.300 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
44300.000 |
35701.500 |
34121.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
161.500 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4736.100
|
3964.200
|
4422.600 |
|
|
Sundry Debtors |
14145.200
|
14782.200
|
10582.300 |
|
|
Cash & Bank Balances |
287.000
|
13677.200
|
9905.500 |
|
|
Other Current Assets |
593.600
|
290.300
|
180.600 |
|
|
Loans & Advances |
18993.200
|
7704.000
|
4639.400 |
|
Total
Current Assets |
38755.100
|
40417.900
|
29730.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
12538.700
|
11257.200
|
7318.100 |
|
|
Provisions |
5854.400
|
6315.800
|
5892.000 |
|
Total
Current Liabilities |
18393.100
|
17573.000
|
13210.100 |
|
|
Net Current Assets |
20362.000
|
22844.900
|
16520.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
16.900 |
61.700 |
154.600 |
|
|
|
|
|
|
|
|
TOTAL |
111551.200 |
96721.700 |
83106.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
59159.100 |
47153.200 |
45322.400 |
|
|
Other Income |
4658.400 |
3439.900 |
3256.100 |
|
|
Net adjustment in respect of previous years |
0.000 |
0.000 |
19.700 |
|
|
Total Income |
63817.500 |
50593.100 |
48598.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
9701.200 |
5860.100 |
7474.500 |
|
|
Provision for Taxation |
1002.200 |
1107.900 |
1369.100 |
|
|
Profit/(Loss) After Tax |
8699.000 |
6968.000 |
6105.400 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Interest |
NA |
668.500 |
413.200 |
|
|
Export on FOB Basis |
NA |
374.600 |
415.600 |
|
Total Earnings |
NA |
1043.100 |
828.800 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Components Stores & Spares |
229.700 |
359.400 |
305.400 |
|
|
Capital Goods |
383.600 |
617.900 |
99.600 |
|
|
Fuels |
14232.400 |
8225.200 |
4702.200 |
|
Total Imports |
14845.700 |
9202.500 |
5107.200 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Fuel |
5488.700 |
6645.800 |
5832.000 |
|
|
Generation , distribution, administration
and other expenses |
37149.900 |
27089.100 |
23965.100 |
|
|
Net adjustment in respect of previous years |
7154.100 |
6157.400 |
7189.900 |
|
|
Depreciation / amortization |
2905.000 |
26.500 |
0.000 |
|
|
Interest and Finance charges |
1418.600 |
2919.200 |
2783.400 |
|
|
Provision for Contingencies |
0.000 |
1895.000 |
1652.800 |
|
|
Other Expenditure |
0.000 |
0.000 |
(300.000) |
|
Total Expenditure |
54116.300 |
44733.000 |
41123.200 |
|
QUARTERLY RESULTS
|
Year |
|
|
30.06.2008 |
|
Type
|
|
|
1st
Quarter |
|
Sales Turnover |
|
|
20261.300 |
|
Other Income |
|
|
483.100 |
|
Total Income |
|
|
20744.400 |
|
Total Expenditure |
|
|
16823.300 |
|
Operating Profit |
|
|
3921.100 |
|
Interest |
|
|
521.600 |
|
Gross Profit |
|
|
3399.500 |
|
Depreciation |
|
|
731.100 |
|
Tax |
|
|
1033.900 |
|
Reported PAT |
|
|
1905.500 |
KEY RATIOS
|
Year |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.47 |
0.55 |
0.53 |
|
Long Term Debt-Equity Ratio |
0.43 |
0.50 |
0.52 |
|
Current Ratio |
1.81 |
1.88 |
2.00 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
0.93 |
0.81 |
0.80 |
|
Inventory |
13.65 |
11.80 |
12.36 |
|
Debtors |
4.11 |
3.90 |
5.21 |
|
Interest Cover Ratio |
4.57 |
4.06 |
4.42 |
|
Operating Profit Margin(%) |
18.28 |
21.59 |
22.10 |
|
Profit Before Interest And Tax Margin(%) |
13.39 |
15.70 |
16.00 |
|
Cash Profit Margin(%) |
14.51 |
19.97 |
16.27 |
|
Adjusted Net Profit Margin(%) |
9.62 |
14.08 |
10.18 |
|
Return On Capital Employed(%) |
7.67 |
8.65 |
8.99 |
|
Return On Net Worth(%) |
8.12 |
12.03 |
8.70 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Subject India's largest integrated Electric Power Utility in
private sector with a reputation for reliability, incorporated in the year 1919
at Mumbai. TPC pioneered the generation of electricity in India nine decades ago.
The core business of Subject is to generate, transmit and distribute
electricity. The Company operates in two business segments: Power and Other.
The Power segment is engaged in generation, transmission and distribution of
electricity. The other segment deals with electronic equipment, project
consultancy.
The Tata-Ebasco Consulting Engineering Services' was established based on
partnership with Ebasco India Limited for consulting engineering together with
its two associated companies in the year 1961. In the year 1969, a new company
under the name Chemical Terminal Trombay Limited was formed in participation
with other Tata Companies and Elephanta India Private Limited to installation
of storage tanks on a part of the Company's ash disposal area at Trombay and
the laying of a pipeline connecting the storage tanks with the Mumbai Port
Trust's pier at Pir Pau. Company sets up its new manufacturing facility at
Bangalore during the year 1980, for commercial production of electronic items
designed by its R&D laboratory. The company constructed a new double
circuit 22/110 KV transmission line in the year 1987 at North Mumbai from
Borivli to Malad to meet the requirements of Municipal Corporation of Greater
Mumbai besides meeting loads in Kandivili, Malad, etc.
Company has undertaken a 180 MW combined cycle plant at Trombay using gas
turbines. In 1989, six new outlets for BEST at 33 KV from Carnac receiving
stations were commissioned during the year. In the same year the company also
associated with Siemens in the erection and commissioned the mechanical and
electrical equipment for the 4 x 130 MW gas turbines and 2 x 150 MW steam
turbines at NTPC's combined cycle power plant at Dadri in Uttar Pradesh. The
second 500 MW units 6 at Trombay was trial synchronized with the grid on 23rd
March 1990. The Company took up two major generation projects, viz., 150MW
Pumped Storage Unit at Bhira and a gas-based 180 MW Combined Cycle Plant at
Trombay Thermal Power Station in case of a major system disturbance and supply
power to essential consumers, viz., Railways, BMC, BARC, etc. TPC started one
new 110 KV substation at Versova during 1991, which comprised 2 x 90 MVA,
110/33 KV power transformers along with 33 KV indoor SF6switchgear and
supervisory control and data acquisition system and also another one switching
station was established in the same year, which comprised 3 x 250 MVA,
220/110/33 KV autotransformers, space saving 245 KV gas insulated switchgear
and supervisory control and data acquisition system.
The modern 22 KV indoor SF6switchgear was installed at Salsette and also the 60
MVAR new capacitor banks were installed during the year 1992 at Versova and
Malad. Apart from these, replacement of 110 KV oil circuit breakers by modern
SF6 breakers at Kalyan, Ambernath, Vikhroli and Salsette receiving stations and
extension of fibre optic communication network were also carried out during the
same year. In 1994, the Trombay Unit-7 steam turbine generator of the company
was harmonized, which generated 650 MUS with PLF of 61.9%. During the year, the
Company undertook the work of strengthening dams as per designs codes in
respect of earthquakes.
The Government of Maharashtra had accorded its permission for rebuilding a dam
at Somwadi. A MoU was signed between TEC and the Tennesse Valley Authority of
USA for renovation and modernisation of power plants. In the same year 1994,
the Company issued 91,549 Global Depository Shares. The 150 MW Pumped storage
unit was commissioned in the year 1995, based on the synchronous condenser mode
and also the Company undertook the work of modernisation and renovation of old
12 MW hydro units at Bhivpuri and Khopoli Generating Stations. In the year
1996, the generating station five 25 MW units were refurbished by installation
of new modern turbine runners of higher efficiency at Bhira. During same the
year, the Company bagged the Multi-fuel based 80 MW power project from the
Government of Karnataka. The thermal Units at Trombay operated by the company
in the year 1997 based on-line availability of about 74% and utilization of
about 64.3%. TPC entered into a Joint Venture Agreement with Total Gas and
Power India in the year 1998 for establishment of LNG Terminal at Trombay.
During 1999, the company acquired a generating station consisting of 37.5 MW
Unit at Wadi, Karnataka and also in the year the Power Purchase Agreement for
81.3 MW Diesel-based Power Plant at Belgaum, Karnataka was signed with
Karnataka Electricity Board. Subject has obtained A' licence as Internet
service provider that enables it to operate throughout the country in the year
2000. The Andhra Valley Power Supply Company Limited and Tata Hydro Electric
Supply Company Limited were merged with the company in the same year 2000.
Subject on September of the year 2001, decided to sell its stake consisting of
45 lakh shares in Tata Liebert Limited (TLL) considering of Rs.170 per share to
Emerson Electric (Mauritius) Limited The Company signed an agreement with Power
Grid Corporation of India Limited for 'Tala Transmission Line' in the year
2002. The 120 MW Unit 3 at the Jojobera Power Plant of the Company situated in
Jamshedpur was commenced its commercial production. TPC has signed the share
acquisition agreement with Gvt of National Capital Territory of Delhi to
acquire the North North-West Delhi Distribution Company Limited. (Discom-III),
a distribution company belonging to the Delhi Vidyut Board (DVB), which
supplies power to north and northwestern Delhi. The company ties up with the
UK-based energy major British Petroleum to jointly work on 2,184 mw Dabhol
power project during the year 2003. During the same year 2003, TPC awarded the
contract for supply and construction of 180 KM long 400 KV Double Circuit
Transmission Line from Palandur to Chandrapur (Maharashtra) By Power Grid
Corporation of India Limited. Company infuses Rs.3520.000 Millions in the
group's telecom businesses.
Company acquired 100% equity stake in Tata Power Trading Company Private
Limited in the year 2004. The Christened Tata Power Trading Company was
incorporated in the year as a subsidiary of the company. Company has signed a
Development Agreement with GAIL India Limited & BP to jointly participate
in evaluating the Dabhol gas and power opportunity. A MoU was signed with
National Power Company of Al-Zamil Group, Kingdom of Saudi Arabia. The company
bagged the 2nd Wartsila - Mantosh Sondhi Award for outstanding contribution to
the Indian Power Sector in 2004. Company signed a generation pact with DVC on
Maithon Project in the year 2005 and entered into an agreement for sale of
shares in Tata Power Broadband. The company received CII EXIM Bank Award 2005
for 'Certificate for Strong Commitment to Excel'. During the period of 2006,
the company joined hands with Siemens. The company signed a joint venture
agreement with Tata Steel to set up a Captive Power plants in Chattisgarh,
Orissa and Jharkhand. The company received seven licenses from the Government
of India, Ministry of Commerce and Industry, Dept of Industrial Policy &
Promotion for its Strategic Electronics Division (Tata Power SED).
In the year 2007, TPC has signed a MoU with the Government of Chhattisgarh for
the setting up of a 1000 MW coal fired mega power plant in the State. The
company has roped in Korea-based Doosan Heavy Industries and Construction
Limited for supercritical boilers for its Mundra ultra mega power project. The
acquisition of Coastal Gujarat Power Limited was med by the company and a
Special Purpose Vehicle (SPV) formed for Mundra Ultra Mega Power Project
(UMPP). TPC has signed an EPC contract for supply of five (5) 800 MW Steam
Turbine Generators with Toshiba Corporation for the first 4000 MW Ultra Mega
Power Project (UMPP) in India to be located at Mundra, Gujarat in August 2007.
As on February 2008, Subject and Damodar Valley Corporation (DVC) jointly
completed its financing for the 1050 MW coal based thermal power project, being
set up in Dhanbad District of Jharkhand State. Recognising the steady and
stable performance in generating quality and reliable energy, the Central
Electricity Authority has awarded Tata Power's Bhira Hydro generation facility
with the Silver Shield award for the meritorious performance in March 2008.
April of the year 2008, the Tata Power Completes the Signing of Financial
Agreements for 4000 MW Ultra Mega Power Project, 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 170000.000 Millions (USD 4.2
billion). Company announced in September of the year 2008, it would acquire a
11.4 per cent stake in Geodynamics Limited, an Australian company specialising
in geothermal energy, for Rs.1650.000 Millions.
Subject is surging ahead, lighting up lives through its activities from its
inception. The challenge of fulfilling the ever growing needs of power have
been met by company through efficient generation, transmission, distribution
and constant upgradation of its technology in every aspects.
FINANCIAL
HIGHLIGHTS
During the year, the Company reported its highest ever
Profit after Tax of Rs.8699.000 Millions, as against Rs.6968.000 Millions for
the previous year, a growth of 24.8%. The Operating Revenue is also higher at
Rs.59155.100 Millions, as against Rs.47153.200 Millions after certain tax adjustments,
a growth of 25.5%.
During the previous year, the Company had reversed tax provisions aggregating
Rs.1817.400 Millions pertaining to the Mumbai Licence Area, which according to
regulation, has been treated as a rebate. Without this adjustment, the
Operating Revenue is higher by 21.39%, mainly owing to higher volumes sold
coupled with the new Tariff approved by the Regulator in Mumbai Licence Area
for FY 08. Similarly, the Operating Profit went up by 6.64% due to operational
efficiencies and higher volume of business.
The other income of Rs.4658.400 Millions is higher predominantly on account of
higher gain on sale of long term investments during the year.
During the year, the Equity Share Capital of the Company increased by
Rs.228.000 Millions on account of the preferential issue of Equity Shares to
Tata Sons Limited (Tata Sons) and the conversion of the Foreign Currency
Convertible Bonds.
Earnings per Share (Basic) showed an increase of 13.6% to Rs.386.400 Millions
as against Rs.340.200 Millions in the previous year.
The Consolidated Revenue at Rs.108908.600 Millions grew by 68.18% and the
Profit After tax at Rs.10550.700 Millions grew by 38.90% as against Rs.6,475.64
and Rs.7596.100 Millions.
The increase in Consolidated Revenue is primarily on account of contribution
from the overseas Coal companies where the Company acquired a 30% stake in
June, 2007.
POWER BUSINESS:
OPERATIONAL
HIGHLIGHTS
The Company generated 14,717 Million Units (MUs) of power from all its power plants during the year as compared to 14,269 MUs in the previous year, an increase of 3.14%.
TATA POWER LICENCE
AREA BUSINESS – MUMBAI
TROMBAY THERMAL
POWER STATION
The Trombay Thermal Power Station generated 10,002 MUs during
the year as compared to 9,180 MUs generated in the previous year, an increase
of 8.95%. The station recorded the highest ever generation crossing the 10,000
mark for the first time while surpassing the earlier record of 9,511 MUs in FY
05.
HYDRO STATIONS - BHIRA, BHIVPURI AND KHOPOLI
The three hydro power plants collectively generated 1,489
MUs during the year, as against 2,138 MUs in the previous year. The lower
generation is on account of the restriction imposed by Krishna Water Tribunal
Award.
TRANSMISSION AND DISTRIBUTION
The growth in Mumbai transmission load during the year has
been about 7%. In order to meet this load growth, line capacity augmentation
has been carried out in North Mumbai area. Furthermore, a new 145 kV GIS (Gas
Insulated Switchgear) Receiving Station has also been commissioned. The
Islanding Scheme for Mumbai has been strengthened by providing Numerical
Protection System.
MANAGEMENT DISCUSSION AND
ANALYSIS
ECONOMIC OVERVIEW
THE GLOBAL ELECTRICITY OUTLOOK
Global electricity generation is likely to go up to 30,364 billion units by
2030 from 16,264 billion units in 2004 -with emerging economies, especially
India and China, being the demand leaders. To meet this demand, it is estimated
that US$ 22 trillion of investments would be needed in generation and supply
infrastructure.
Fossil fuels will remain the dominant energy source, with coal likely to see
the greatest growth of demand in absolute terms. In a situation of shrinking oil
reserves and rising oil prices, coal fired power generation will remain the
preferred choice over the foreseeable future - more so in China and India,
which have substantial coal resources and currently use 45% of the world's
coal. Power generation through nuclear fuel and renewable sources (wind power,
solar power, geothermal power etc.) would, however, grow rapidly, driven by
both high oil prices as well as due to environmental concerns.
Developing nations will also have to deal with the challenge of making the
power sector conducive for private investment by addressing issues such as
power subsidies, theft of electricity, diluting State control, managing
competition through effective regulation and above all climate change.
Balancing long-term sustainable development with short-term demand will be a
critical challenge for developing economies.
THE POWER SITUATION IN INDIA
GENERATION
India has the fifth largest electricity generation capacity in the world at
143,000 MW. Thermal power constitutes 64.7% of the installed capacity while
24.7% comes from hydroelectric power. Renewable energy sources (wind power,
solar power, bio mass based generation, etc.) at 7.7% of generation
capacity and nuclear power at 2.9% form the balance. Chart A' shows the
generation spread in India.
India's
per capita consumption of electricity is low at 704 kWh - versus China's at
2,150 kWh. With the economy growing at about 8-9% and disposable incomes
rising, the demand for electricity has increased exponentially. Conventional
wisdom indicates that in a developing economy the rate of growth of demand for
power is about 50% more than the rate of economic growth. The growth of demand
for power in many cities across the country has exceeded all such projections.
Most urban areas are finding it difficult to meet this 'unexpected'
demand.
Although generation capacity has grown fairly rapidly during the past two
years, it is still well short of the planned targets
The inability to add even planned generation capacity has
resulted in India facing increasing power shortages every year. The government
policy thus far has only focused on adding base load generation capacity. As
the standard of living improves, the demand in peaking power will increase
faster than the demand for base load power.
It is not surprising that peak power shortage during the past five years
has been steadily increasing to reach 16.6% in 2007-08 (Chart B3).The only tool
then to deal with a peaking shortage is load shedding and sub optimal, inefficient
local solutions such as DG sets and inverters.
The Government of India (Gol) has an ambitious mission of 'Power for all by
2012: This requires that the installed generation capacity should be at least
200,000 MW by 2012 from its present level of 143,000 MW. Whether this will be
achieved or not is a matter of debate. If the XIth and XIIth plan targets are
achieved, India will have an installed capacity of 296,300 MW by 2017.
To expedite the target growth of power generation, the Government of India has
identified the development of Ultra Mega Power Projects (UMPPs) as a thrust
area. The central idea of the UMPP is to set up generation capacity on a large
scale and reduce the development time of the project with the government
arranging land and all key approvals for the project. So far three such
projects of 4,000 MW capacity each have been awarded and more are
planned.
The Electricity Act, 2003 freed up most of generation from all licensing and
consequently there are number of projects being developed across the
country.
TRANSMISSION
India's transmission network today stands at 265,000 circuit kilometres (ckm),
which is divided into five regions. The interconnected transmission system
within each region is called a grid, with the national transmission system
being the National Power Grid.
Most of the coal resources in the
country are in the Eastern part of the country whereas most of the demand for
power is in the Western, Southern and Northern parts. It is crucial to build
the transmission network in order to wheel power from the point of generation
to the point of demand. It will therefore be essential to increase transmission
capacity at the national grid leveI. This calls for an investment of about
Rs.710000.000 Millions, of which the Power Grid Corporation of India Limited,
(Powergrid) plans to invest about Rs.500000.00 Millions and the balance
Rs.210000.000 Millions is to come through private sector participation. With an
additional 60,000 ckm of transmission network expected by 2012, the
opportunities for private sector participation and growth in transmission look
encouraging.
DISTRIBUTION
India has an estimated 144 million consumers with the third largest
transmission and distribution network in the world. Even so, very large parts
of the population remain without electricity or suffer from frequent power cuts
and fluctuating voltages.
India's power sector also suffers from aggregate technical and commercial (ATC)
losses on account of transmission and distribution leakages that are as high as
32%5 in some states. Recognising this, Gol has set an ambitious target to
reduce ATC losses to 15% in five years in the urban and high-density
areas.
The Accelerated Power Development Reform Programme (APDRP) initiative, aimed at
financing the modernisation of sub-transmission and distribution networks,
attempts to address the ATC losses issue and improve power delivery. The
programme includes a system of local management and energy accounting through
widespread metering in every state utility's distribution systems.
Distribution remains largely in the domain of the state owned utilities. This
has contributed to the slow implementation of distribution reforms. According
to the Investment Commission, the Gol needs to rework its distribution reform
strategy to negotiate a customised distribution reform incentive package for
each state.
KEY DEVELOPMENTS IN TATA POWER:
2007-08
MUNDRA UMPP
Company was the first to be awarded a UMPP. On 24th April, 2007, Company signed
a Power Purchase Agreement (PPA) for the 4,000 MW UMPP in Mundra in coastal
Gujarat. The Special Purpose Vehicle (SPV) set up for the project, Coastal
Gujarat Power Limited, has been transferred and is now a 100% subsidiary of
Company.
Mundra's generation capacity is 4,000MW (5x800MW), with saleable power of 3,800
MW. After completion of the project, it is expected to supply power to Gujarat
(1,805 MW),Maharashtra (760 MW),Punjab (475 MW), Haryana (380 MW) and Rajasthan
(380 MW).
Costing about Rs.170000.000 Millions (US$ 4.2 billion), the first unit will be
commissioned by September 2011. Land acquisition activities have been almost
completed; site work is in progress and orders for all major long-lead time
equipment such as boilers and turbines have been placed.
Company was also the first to secure the required Ioans for UMPP Financing
agreements for the project were signed in April 2008. The financing comprises
equity of Rs.42500.000 Millions, EC13 of up to US$ 1.8 billion and rupee loans
of up to Rs.58500.000 Millions in a debtequity ratio of 75:25.
The super critical technology will help achieve high efficiency-thus saving
fuel and reducing greenhouse gas emissions vis-a-vis conventional technology
prevailing in the country.
INDONESIAN COAL MINES ACQUISITION
Considering the importance of imported coal, company has integrated backwards
in an effort to secure its energy requirement for its power projects. An equity
interest in a coal asset provides a hedge for the power business against rising
coal prices.
On 26th June, 2007,Tata Power acquired 30% equity in major Indonesian thermal
coal producers, PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, as well as
trading companies from PT Bumi Resources, at a value of US$ 1.1 billion. The
definitive agreements were subsequently signed in March 2008. The investment in
the coal companies provides a natural hedge to the power business besides
providing security of fuel supply through the off take arrangement. Company has
also signed an off take agreement with KPC, which entitles it to purchase about
10.1 120% million tonnes of coal every year to meet a part of its requirement
for Mundra, Trombay and Coastal Maharashtra projects.
Together, KPC and Arutmin produced around 54.2 million tonnes of coal in 2007,
of which a substantial part was exported. The companies have enjoyed robust
financial performance, especially with increases in coal prices and rising
production volumes.
In addition to being a strategic initiative, the acquisition will provide
considerable financial benefits to company over the long-term. The recent spurt
in coal prices has reinforced company’s belief that the investment in the coal
companies was timely and pragmatic.
PUBLIC PRIVATE PARTNERSHIPS AND TATA
POWER
It is expected that infrastructure including power infrastructure in the
country will have to be built through Public Private Partnerships. While the
private sector can contribute with management expertise, operational
efficiencies and finances the state sector can contribute with technical skills
and the approval processes.
Company has had a number of successful partnerships with the state sector in
various segments of the power sector.
TATA
POWER IN PPP
NORTH DELHI POWER LIMITED (NDPL)
NDPL is a 51:49 JV of Company and Delhi Vidyut Praday Nigam (a Government of
Delhi undertaking). NDPL, with a net asset base of Rs.18000.000 Millions,
services over 1 million consumers spread over 500 sq. km. in the north Delhi
area. The peak load in this area is about 1,150 MVA, with energy consumption of
over 5,900 million units (MU).
During 2007-08, NDPL earned revenue of Rs.22872.000 Millions and a profit after
tax (PAT) of Rs.2816.000 Millions. In six years of its operations, NDPL has
reduced its ATC losses from a high of 53% to less than 20% during 2007-08.
Measures like energy audits, replacement of old meters with theft-proof
electronic meters, automated meter reading, aggressive enforcement and
public-NGO Company awareness drives have reduced the current ATC loss
percentage to well below the target loss level of 31% committed to the
regulatory authorities.
In the retail power distribution business, innovative customer service measures
are critical to success. In a measure adopted for the first time in India by a
distribution company, NDPL ensures that its representative visits a new
customer's premises and completes all formalities required for providing a new
connection, without the customer having to visit NDPL's office.
POWER-LINKS TRANSMISSION LIMITED
(PTL)
PTL IS A 51:49 JV BETWEEN TATA POWER AND POWER GRID
Corporation of India (PGCIL).An example of PPP, PTL transmits powerfrom the
1020 MW Tala Hydro Electric Power Project in Bhutan and surplus power from the
eastern/north-eastern region of India through its transmission lines between
Siliguri (West Bengal) and Mandola (Uttar Pradesh), spanning a distance of
1,166 km. With a total investment of Rs.15600.000 Millions, the project,
consisting of 440 KV doublecircuit transmission lines, was completed within the
scheduled time frame and cost estimates. In all, thirteen states (West Bengal,
Bihar, harkhand, Orissa, Sikkim, Punjab, Haryana, Himachal Pradesh, Jammu &
Kashmir, Uttaranchal, Rajasthan, Uttar Pradesh, and Delhi) benefit from this
project. Maintaining an average availability of 99.7%, the project is an
important link in the national power grid and is the first inter-state
transmission project that has been implemented through the PPP route.
During 2007-08, which was its first full year of operations, PTL earned revenue
of Rs.2450.000 Millions with a profit after tax (PAT) of Rs.580.000
Millions.
MAITHON POWER LIMITED (MPL)
Maithon Power Limited, a 74:26jointventure between company and Damodar Valley
Corporation (DVC), is setting up a 1,050 MW (2 x 525 MW) Greenfield coal fired
mega power plant at Maithon (Jharkhand).
The project cost of Rs.44500.000 Millions is being funded in a debt equity
ratio of 70:30.Financial closure for the debt has been completed. The first
unit is scheduled to be commissioned by 3rd quarter FY 11, with the second
going on-stream by end of FY 11.
MPL has signed Power Purchase Agreements with DVC for 300 MW and it is in
active discussions for sale of balance power to other distribution licensees.
MPL has obtained open access from Power Grid Corporation of India to transmit
power through their infrastructure to the power deficit northern states.
MPL has obtained all major clearances and permits for the project. Site works are
in progress and orders for main equipment have been placed. Long-term coal
linkage has been allotted from the nearby Bharat Coking Coal Ltd.(BCCL)
mines.
SUBSIDIARIES
Tata Power Trading Company Limited (Tata
Power Trading)
Tata Power Trading was incorporated in 2003 with an equity capital of Rs.20.000
Millions and was the first company in India to receive a power trading licence
from the CERC in June 2004. Tata Power Trading is in the business of trading
electrical power in India. It has a category license with which it can now
trade in volumes without any upper limit, by enhancing its equity base to
Rs.200.000 Millions.
Tata Power Trading sources surplus power-from various state/private sector
power generation utilities, captive power plants and state-owned electricity
boards. Its trading partners include the Maharashtra State Electricity Board,
the Madhya Pradesh State Electricity Board, the West Bengal State Electricity
Board, the Power & Electricity Department of Government of Mizoram, the
Damodar Valley Corporation, the Haryana Power Generation Corporation and Delhi
Transco, among others. Tata Power Trading has also commenced trading surplus
power from the captive power plants belonging to Hindustan Zinc Limited
(Rajasthan), and the Jindal Thermal Power Company Limited (Karnataka).
Tata Power Trading earned revenues of Rs.88352.000 Millions with PAT of
Rs.43.000 Millions.
NELCO LIMITED
NELCO, established in 1940, offers a range of products and solutions, such as
border intrusion detection and security systems, locomotive traction power
controls and converters, supervisory and data acquisition systems, building
management systems, VSAT connectivity solutions and data centre
solutions.
NELCO's current businesses are structured around Automation & Control and
Network Systems and cater to core industries like Defence, Railways, Steel,
Cement, Automobile, Oil and Gas, etc. NELCO has tie-ups with international
players for defence, weather management systems, VSAT, SCADA, etc. lt has also
promoted Nelito Systems, a joint venture with Itochu. Japan.
A subsidiary of company which holds a 50.04% stake, NELCO is listed on BSE and
NSE. During the twelve months ended 31st March, 2008, NELCO earned total income
of Rs.1974.000 Millions with PAT of Rs.44.000 Millions.
AF-TAAB INVESTMENT COMPANY LIMITED
(AF-TAAB)
Company holds Rs.133.900 Millions as equity in Af-Taab, its wholly owned
subsidiary. During 2007-08 Af-Taab had an operating income of Rs.741.000
Millions with a PAT of Rs.394.000 Millions.
CHEMICAL TERMINAL TROMBAY LIMITED
(CTTL)
CTTL is a 100% subsidiary of company. During 200708 CTTL earned an operating
income of Rs.104.000 Millions with a PAT of Rs.27.000 Millions.
EXISTING OPERATIONS
GENERATION
Company generates a total of 2,365 MW of powerfrom threefuel sources: thermal
(coal, gas, oil), hydroelectric power and renewable energy (wind).
THERMAL POWER GENERATION
Company’s thermal power generation units are at Trombay, Maharashtra (1,330
MW), Jojobera, Jharkhand (428 MW) and Belgaum, Karnataka (81 MW), totalling
1,839 MW.
TROMBAY
Trombay has a capacity of 1,330 MW, of which 500 MW is coal-fired, 650 MW uses
oil and the balance 180 MW uses gas as a fuel source. In 2007-08, Trombay
generated 10,002 MU of power- its highest generation ever in a financial year.
Year on year generation growth at Trombay was 9%. Plant load factor (PLF) was
also at 85.6%- well in excess of the 79% achieved last year.
Company is in the process of putting up a 250 MW coal fired unit at Trombay,
which it expects to commission by 3rd quarter FY 09.
Continued focus on maximising operational efficiencies has resulted in greater
fuel and PLF incentives as per Maharashtra Electricity Regulatory Commission
(MERC) norms. During the year, some major and minor overhauls were successfully
completed on the Trombay units. The first safety surveys for the British Safety
Council (BSC) 5-Star ratings were conducted during 2007-08.The units aim to
achieve the 5-Star rating by 2nd quarter FY 09. Trombay has also been
recertified for ISO 14001. During the year, Trombay received the 'Greentech
Safety Gold Award 2008' in the thermal power sector for' Outstanding
Achievement in Safety Management:
JOJOBERA
Jojobera, in Jharkhand, has a capacity of 428 MW through four coal-fired units
(1 x 68 MW and 3 X 120 MW). In 2007-08, Jojobera generated 2,862 MU - its
highest annual generation ever, with a year-on-year growth of 4.8%. PLF at
76.2% also exceeded the previousyear's levels of 72.93%, making the units one
of the most efficient and reliable power generating utilities in eastern India.
The plant has structured quality, environment and occupational health and
safety management systems conforming to international standards, which have
been certified by TIJV. Jojobera is also on course for Total Preventive
Maintenance (TPM) implementation.
During the year, Jojobera received the Greentech Gold Award for Environment
Excellence. The division's Quality Circle initiatives were recognised at the ICQC
in Beijing, where the Jojobera team won the gold medal. Safety initiatives were
recognised by the National Safety Council of India (NSCI) through its 'Suraksha
Puraskar' award.
BELGAUM
Belgaum, in Karnataka, has a Heavy Fuel Oil based generation capacity of 81 MW.
During the year, generation was 25.4% higher than last year at 237 MU. An
improved net plant heat rate helped in generating greater efficiencies and
reducing annual fuel consumption. Auxiliary consumption has also reduced.
Belgaum sold 2.7 MU of power to a third party for the first time. Belgaum's
Quality Circle initiatives received the 'Distinguished' award in a competition
held by the Quality Circle Forum of India (QCFI).
HYDROELECTRIC POWER GENERATION
Company has three hydroelectric (hydel) power generating stations, totalling
447 MW - at Khopoli (75 MW), Bhira (300 MW including 150 MW of BPSU) and
Bhivpuri (72 MW)- all located in the Raigad district of Maharashtra.
For the hydel units, the Krishna Water Dispute Tribunal Award (KWDTA)
determines the amount of water that is available for power generation. Although
the plant availability was high, the generation and PLF were lower due to KWDTA
constraints.
Company’s hydel division has been
at the forefront of using new technologies and equipment to increase power
reliability and improve operational efficiencies. Bhira achieved the highest
availability of 99.3% during the year. Operational stability was also reflected
at Khopoli, which witnessed zero tripping during the year.
Company’s hydel plants are amongst the oldest in the country, going back to
nearly a century. Therefore, replacement of capital equipment is an ongoing
feature at these units. Company is focused on replacing and modernizing
'associated equipment' (i.e. those that are not directly related to generation
but support the generation process). Dam and duct-line strengthening are the
two areas where company proposes to continue its upgrade efforts, once approval
is received from the appropriate authorities. Over the last five years, a
systematic plan for replacing capital equipment, has allowed company to improve
efficiencies by 10%.
Recognising its performance, the Central Electricity Authority (CEA) has
selected Bhira's pump storage scheme as the second best performing station in
the country, awarding it the Silver Shield: Bhivpuri won the meritorious
achievement award in the manufacturing sector from the National Safety Council
of India (NSCI).
WIND POWER GENERATION
During 2007-08, company has added two more wind farms at Bramanvel (11 MW) and
Khandke (51 MW).With these, Company has a capacity of 79 MW of power through
renewable energy sources.
TRANSMISSION IN THE MUMBAI
LICENCE AREA (MUMBAI LA)
Company’s
transmission operations in Mumbai LA stretch from Colaba in south Mumbai to
Bassein Creek in north Mumbai and to Vikhroli in north-east Mumbai (bypassing
Bhandup and Mulund).Transmission lines are used by Bombay Electric Supply &
Transport (BEST), Reliance Infrastructure and company’s own distribution
business. To meet the demand growth company has augmented line capacities,
especially in north Mumbai, while simultaneously commissioning a new 145 kV GIS
receiving station to supply to BEST and the Railways.
Transmission grid availability of 99.45% is better compared to MERC norms of
98%.Voltage fluctuations and flickers are lower than those stipulated by
international norms.
Company is also planning a series of capital investments for the Mumbai LA, for
which regulatory approval from Maharashtra Electricity Regulatory Commission
(MERC) has been received. These projects will increase transmission line
capacity set up new receiving stations, evacuate power from one area to another
and increase transmission efficiencies and power quality. MERC has approved
eight transmission projects of a total value of Rs.5893.300 Millions.
DISTRIBUTION IN THE MUMBAI LICENCE AREA
(MUMBAI LA)
Company has a customer base of about 24,000 direct customers and, on an
average; about 12,000 million units (MU) are sold over the network in a year.
Company continues to be constrained by the order passed by the Hon'ble Supreme
Court restraining company from acquiring new customers.
As in all parts of the
business, improvement in operational efficiency is a key focus area. In the
Mumbai LA, Company caters to the demand of highly quality conscious customers
who are extremely particular both about the continuity of power supply and the
quality of their power. Company has taken a number of initiatives to reduce
forced outages and improve reliability of power supply. New distribution
automation systems have been introduced to a number of substations, which help
in the quick restoration of power supply in the case of a forced outage. New
technology initiatives have also improved efficiencies. These are discussed in
the 'Technology' section.
The results of these initiatives have been evident in the quality and
reliability of transmission and distribution of power. Company’s average
duration of power supply interruption in the Mum bai LA due to forced outages
is one of the lowest in India. Customer service complaints (per 1,000
customers) have reduced from 243 to 186 during the year. Power quality related
complaints (per 1,000 customers) reduced from 25 to 14.
FINANCIAL PERFORMANCE OF THE COMPANY
During the current year the total income at Rs.63817.500 Millions was higher by
26.1 % as compared to Rs.50593.100 Millions in the previous year. The other income
of Rs.4658.400 Millions, included in the total income, is higher mainly due to
gain on sale of long-term investments during the year.
The operating income (net of certain tax adjustments) at Rs.59159.100 Millions for
the year was higher by25.46%as compared to Rs.47153.200 Millions in the
previous year.
The cost of power purchase was lower at Rs.5488.700 Millions compared to
Rs.6645.800 Millions during the previous year. This was due to lower standby
charges applicable to Company during the year coupled with the fact that during
the previous year company purchased power on behalf of all licensees as
directed by MERC. The increase in the fuel cost from Rs.27089.100 Millions to
Rs.37149.900 Millions is mainly due to steep increase in oil prices
domestically and internationally.
The other operating expenses of company have increased to Rs.7154.100 Millions
in the current year from Rs.6183.900 Millions in the previous year. The
increase is basically on account of higher employee costs arising on account of
applicability of Revised Accounting Standard 15 (R) relating to employee
benefits.
Despite the increase in capitalisation in the previous year, depreciation was
flat at Rs.2905.000 Millions as against Rs.2919.200 Millions in the previous
year. The additional depreciation on the assets capitalised in previous year
was offset by certain key assets in the Mumbai LA reaching the 90% depreciation
limit. The decrease in interest and finance charges from Rs.1895.000 Millions
in the previous year to Rs.1418.600 Millions is mainly on account of repayment
of Euro notes and Commercial Papers, part conversion of Foreign Currency
Convertible Bonds during the year and net exchange gain on foreign currency
borrowings /deposits.
The increase in tax is mainly on account of higher profit before tax during the
year and the effect of tax reversals on account of favourable tax
assessments.
Thus the profit after tax accordingly increased to Rs.869.90 as against
Rs.6968.000 Millions in the previous year. Basic earnings per share (EPS) on
distributable profits stood at Rs.386.400 Millions as against Rs.340.200
Millions, a growth of over 10%.
During the year the net additions to the gross block was Rs.2522.800 Millions
mainly on account of capitalisation of certain wind units. The net current
assets as on 31st March 2008 was lower at Rs.20362.000 Millions as compared to
Rs.22844.900 Millions in the previous year.
The borrowings at Rs.30372.700 Millions as at 31st March, 2008 were lower by Rs.5960.900
Millions as compared to previous year mainly on account of repayment of Euro
Notes and Commercial Papers during the year as explained earlier and part
conversion of Foreign Currency Convertible Bonds.
The net-worth of company of Rs.63645.100 Millions as at 31st March, 2008 was
higher by Rs.18908.800 Millions as compared to previous year mainly on account
of part conversion of Foreign Currency convertible bonds and preferential
allotment of equity to Tata Sons Limited.
Long term Debt to Equity (D/E Ratio) improved from 0.51 in the previous year to
0.38 as at 31st March, 2008. Total D/E Ratio also improved from 0.60 as at
previous year to 0.38 as at 31st March, 2008.
However, the return on net-worth dropped marginally from 15% as at previous
year to 13% as at 31st March, 2008 on account of higher net-worth as explained
earlier. The improved ratio reflects Company’s increased ability to leverage
its shareholder funds for additional borrowings for its growth projects.
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 decides to acquire 10% stake in Geodynamics Limited, Australia Strengthens its renewable energy portfolio
-
Mumbai, September 04, 2008
The Tata Power Company Limited, India’s largest integrated
private power company, today announced its decision to acquire (either by
itself or through one or more of its subsidiaries in India or abroad) 29.4
million Ordinary Shares of Geodynamics Ltd., a listed Australia-based
organization specializing in geothermal energy and Enhanced Geothermal Systems
(EGS), representing 11.4% of the current issued Share Capital (equivalent to 10% of the increased Share Capital
after allotment by Geodynamics). The Shares will be acquired by
Tata Power at an issued price of A$1.50 per share, entailing a total investment
of A$44.1 million (approx. INR 165 crores/INR=37.5) in absolute terms.
As part of the investment, Tata Power will also get a
directorship on the Board of Geodynamics. In addition to the cornerstone
investment above, the companies have agreed to review the potential of
geothermal prospects outside Australia by leveraging the companies’ respective
strengths. Further, this alliance also helps in securing a foothold in
the growing renewable energy market in Australia.
Geodynamics is the industry leader in EGS with a market
capitalization in excess of A$350 million (August, 2008). Geodynamics has
geothermal exploration interests in 3 Australian states including the license
for exploring 2000 sq. km of area in the Cooper Basin. Geodynamics tenements in
the Cooper Basin contain the hottest granites on earth and are estimated to
provide a thermal resource equivalent of 50 bn barrels of oil.
Mr Prasad Menon, Managing Director, Tata Power said, “We
are happy to have decided to purchase a stake in Geodynamics. This strategic
partnership not only strengthens our renewable portfolio but also creates
opportunities to get a foothold in the growing renewable energy Market in
Australia. We look forward to the synergistic opportunities that the alliance
presents us.”
Mr Gerald Grove-White, Managing Director, Geodynamics
Limited, commented "We are excited about this strategic
partnership with Tata Power which we hope to expand into other areas of common
interest. There are great synergistic opportunities for both the
groups."
Geothermal energy is the natural heat found within the
earth, where temperature increases with depth, typically by 10-50 degree
Celsius/km. In Enhanced Geothermal Systems (EGS) technology heat is extracted
from granites located at a depth of a more than 4000 Metres by circulating
water through them in an engineered artificial reservoir. The heated water
returns to the surface under pressure and is converted into electricity via a
heat exchanger and conventional geothermal power plant.
EGS technology can potentially enable the setting up of base
load power plants that are based on naturally heat and thereby making them a
clean energy source for the future.
About Geodynamics Limited:
Geodynamics Limited was registered as a
public company in November 2000. The Company was formed solely to focus on
developing renewable geothermal energy generation from hot fractured rocks
(HFR) in Australia.The Company was formed by Dr. Doone Wyborn and Dr. Prame
Chopra from the Australian National University in Canberra (leading experts in
HFR geothermal energy), and Dr. Bertus de Graaf, who has a track record in
resource development. Geodynamics was funded by initially raising more than $1
million dollars in seed capital in 2001. It then secured two geothermal
exploration licences in South Australia and two in New South Wales, including
its outstanding world class resource in the Cooper Basin. After successfully
raising $11.5 million, Geodynamics listed on the Australian Stock Exchange on
12 September 2002, and together with a $5 million R&D Start grant from
AusIndustry it initially had gross funds of $16.5 million for its Stage 1
development program. The Company raised a further gross of $61.6 million
to the end of 2005 to support its Stage 1 program and also fund the licence
acquisition of the patented Kalina Cycle heat to power conversion cycle. In
2007, the Company successfully completed a $49.8 million raising under its
Prospectus dated 14 March. The funds were used partly to pay for the purchase
and shipping of a new $32 million advanced drilling rig that arrived in
Australia on 30 June 2007 as well as the drilling of the Habanero 3 production
well and the completion of the Stage One reservoir circulation test.
About Tata Power:
The Tata Power Company Limited is India's
largest integrated 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 has established global footprint by acquiring 30% stake in Indonesian
Coal Mines and its 4000 MW Ultra Mega Power Project at Mundra (Gujarat) is on
fast track. It 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 1050 MW Mega Power Project.
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.48.72 |
|
UK Pound |
1 |
Rs.82.17 |
|
Euro |
1 |
Rs.65.90 |
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 |
|