CONTENTSAGM Notice 04Director’s Report 10Management Discussion and Analysis 14Auditors’Report 16Balance Sheet 20Profit and...
05AGM NoticeNotesa) A member entitiled to attend and vote is entitiled to appoint a proxy to attend and vote instead of hi...
07AGM NoticeOther Terms:1. The eligibility of the above Perquisites and Benefits will be as per Tata Power’s existing rule...
09AGM Notice(2) Steps taken or proposed To increase the Volume of the Power Traded. Long term Power wouldto be taken for s...
11AGM Noticeelectricity per unit and higher Mus traded for BankingTransactionsThe Company has a CAGR of 36 % in terms of p...
across the length and breadth of the countryWe are dedicated to Empowering Businesses throughPartnerships for sourcing and...
15Management Discussion & AnalysisRenewable Energy Certificates (REC)The REC certificate trading on power exchanges was int...
17Management Discussion & AnalysisAnnexure to the Auditors Report (Referred to in paragraph 3 of our report of even date)H...
We are uniquely positioned to undersrandyour business needs due to our associationwith our parent company which haspresenc...
Balance Sheet as at 31st March, 2012Notes 31st March 2012 31st March 2011` `Equity And LiabilitiesShareholders FundsShare ...
21Profit & Loss Account for the year ended 31st March, 2012Notes 31st March 2012 31st March 2011` `Revenue from Operations...
Cash Flow Statementfor the year ended 31st March, 201222 Cash Flow Statement for the year ended 31st March, 2012Year ended...
Schedules forming part of the Balance Sheet as at 31st March, 201223Schedules forming part of the Balance Sheet as at 31st...
24 Schedules forming part of the Balance Sheet as at 31st March, 201231st March 2012 31st March 2011Nos. % holding in Nos....
Schedules forming part of the Balance Sheet as at 31st March, 2012Note 7 Fixed Assets `Gross Block Accumulated Depreciatio...
26 Schedules forming part of the Balance Sheet as at 31st March, 2012Schedules forming part of the Balance Sheet as at 31s...
27Schedules forming part of the Balance Sheet as at 31st March, 2012Note 12 Cash and Cash Equivalents31st March 2012 31st ...
28 Schedules forming part of the Balance Sheet as at 31st March, 2012Note 16 Finance Costs31st March 2012 31st March 2011`...
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TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
TATA Power Annual Report for Year 2011-2013
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TATA Power Annual Report for Year 2011-2013

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TATA Power Annual Report for Year 2011-2013

  1. 1. CONTENTSAGM Notice 04Director’s Report 10Management Discussion and Analysis 14Auditors’Report 16Balance Sheet 20Profit and Loss Account 21Cash Flow Statement 22Schedules forming part of Balance Sheet 23
  2. 2. 05AGM NoticeNotesa) A member entitiled to attend and vote is entitiled to appoint a proxy to attend and vote instead of himself and aproxy need not be a member.b) Proxies, in order to be effective, must be received at the Registered Office of the Company, not less than 48 hoursbefore the commencement of the Annual General Meeting.c) An Explanatory Statement pursuant to Section 173 of the Companies Act, 1956 relating to the special business tobe transacted at the Annual General Meeting is annexed heretod) Corporate Members intending to send their authorized representatives to attend the meeting are requested tosend a certified copy of the Board Resolution authorising their representative to attend and vote on their behalfat the Meeting.e) In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names will beentitled to vote.f) All the documents referred to in the accompanying notice and explanatory statement are available for inspectionat the Registered Office of the Company on all the working days between 11:00 a.m. to 1:00 p.m. upto the date ofthe Annual General Meeting.By Order of the Board of Directors,T. N. RAMAKRISHNAN, Company SecretaryMumbai, 14th May 2012Registered Office : Carnac Receiving Station, 34, Sant Tukaram Road, Carnac Bunder, Mumbai 400 009Explanatory StatementAs required by Section 173 of the Companies Act, 1956 (the Act), the following Explanatory Statement sets out allmaterial facts relating to the business mentioned under Item Nos. 6, 7, 8 and 9 of the accompanying Notice dated14.05.2012Item Nos. 6, 7 & 8:Mr. Sanjeev Mehra was appointed as Additional Director of the Company by the Board of Directors effective fromSeptember 02, 2011. Mr. Ramesh Subramanyam and Mr. Arun Srivastava were appointed as Additional Directors of theCompany by the Board of Directors effective from May 07, 2012. By virtue of Section 260 of the Companies Act, 1956Mr. Sanjeev Mehra, Mr. Ramesh Subramanyam and Mr. Arun Srivastava will hold office upto the date of the ensuingAnnual General Meeting and are eligible for appointment. The Company has received notice under Section 257 of theCompanies Act, 1956 alongwith requisite deposit from a member of the Company proposing their candidature for theoffice of Director.The Board commends your approval to the said appointment.Mr. Sanjeev Mehra, Mr. Ramesh Subramanyam and Mr. Arun Srivastava are concerned or interested in the respectiveresolution for their appointment as Directors of the Company.Item No. 9:The Board of Directors of the Company had by a resolution passed on 02nd September, 2011 appointed Mr. SanjeevMehra as Managing Director of the company for a period of three years with effect from 2nd September 2011 to 01stSeptember, 2014 subject to the approval of the Members at the general meeting of the Company.The material terms of the Agreement dated 03.02.2012 entered into by the Company with Mr. Sanjeev Mehra for thesaid appointment referred to in the Resolution at Item No. 9 of the accompanying Notice are as follows:-
  3. 3. 07AGM NoticeOther Terms:1. The eligibility of the above Perquisites and Benefits will be as per Tata Power’s existing rules and regulations inforce and as amended, altered or modified from time to time.2. Monthly and Annual Perquisites and Benefits will not be reckoned for any other benefit or remuneration orpayment whatsoever including Provident Fund contribution, Superannuation Fund contribution and Gratuity etc.3. Consolidated Salary and Monthly and Annual Perquisites and Benefits, shall be proportionately deducted onaccount of absence without leave or authorized absence on loss of pay for any reason.4. Consolidated Salary, Perquisites and other Benefits will be payable subject to applicable taxes.5. The Managing Director shall abide by the Tata Code of Conduct during his term.6. Either party shall be entitled to terminate the Agreement by giving the other party not less than six months notice.7. Mr. Sanjeev Mehra shall devote the whole of time to the business of the Company and do his utmost to advanceits interest and shall exercise all his powers subject to the superintendence and control of the Board of Directorsof the Company.8. Mr. Sanjeev Mehra shall perform such duties and exercise such powers as may be from time to time delegated tohim by the Board of Directors of the Company.9. Mr. Sanjeev Mehra during the currency of the Agreement shall not disclose or give information regarding theaffairs of the Company to any other person.10. Mr. Sanjeev Mehra shall not after the termination of this agreement represent himself as being in any wayconnected with or interested in the business of the Company.11. The Company shall be entitled to terminate the Agreement in the event of Mr. Sanjeev Mehra found guilty ofmisconduct or negligence in the discharge of his duties.12. Mr. Sanjeev Mehra shall cease to be a Managing Director of the Company if he ceases, for whatever reason, to bea Director of the Company.Additional information required to be given alongwith a Notice calling General Meeting as per sub para (B) of para1 of Section II of Part II of Schedule XIII of the Companies Act, 1956 is given hereunder:I. General Information:(1) Nature of industry Power Industry(2) Date or expected date of The Company has been in the business for many yearscommencement ofcommercial production(3) In case of new companies, Not Applicableexpected date ofcommencement of activitiesas per project approved byfinancial institutionsappearing in the prospectus.(4) Financial performance 2011-2012 2010-2011 2009-2010basedon given indicators(Rs. in lacs)Turnover 192,670 193,205 226,578Net profit (as computed 1,405 915 824under section 198)
  4. 4. 09AGM Notice(2) Steps taken or proposed To increase the Volume of the Power Traded. Long term Power wouldto be taken for start in FY-13improvement(3) Expected increase in FY-13 Mu 8000 .PAT- Rs. 15.25 Crproductivity and profitsin measurable terms.The Board is of the view that the appointment of Mr. Sanjeev Mehra as Managing Director will be beneficial for properlyguiding the company through its phase of leadership transition.The Board commends the approval by the members for the appointment of Mr. Sanjeev Mehra as Managing Directorand payment of remuneration to him.The above may be treated as an abstract of the terms of appointment and remuneration payable to Mr. Sanjeev Mehra,as Managing Director as contained in the said notice pursuant to Section 302 of the Act.Mr. Sanjeev Mehra is concerned or interested in the said Resolution at item no. 9 of the accompanying notice as itrelates to his own re-appointment.The Agreement dated 03.02.2012 referred to in the Resolution at Item no. 9 of the accompanying Notice is open forinspection by the members at the Registered Office of the Company between 11.00 a. m. to 1.00 p. m. on any workingday of the Company except Saturday and Sunday.By Order of the Board of Directors,T. N. RAMAKRISHNAN, Company SecretaryMumbai, 14th May 2012Registered Office : Carnac Receiving Station, 34, Sant Tukaram Road, Carnac Bunder, Mumbai 400 009
  5. 5. 11AGM Noticeelectricity per unit and higher Mus traded for BankingTransactionsThe Company has a CAGR of 36 % in terms of powertraded over the past 5 years.In addition, to power trading business the Company also provided consultancy services for Energy Management, CoalSupply Facilitation, Project Analysis and Clean Development Mechanism (CDM). The Company earned revenues of Rs.4.04 crores from advisory services/consultancy business during the year.Earnings per share (EPS) has increased to Rs 8.78 as against Rs. 5.72 in the previous year.The Company’s short term credit facility from banks was rated as‘BBB+’by Fitch Rating Agency.DividendThe Directors of your Company are pleased to recommend a dividend of 20% ( Rs. 2 per share) on 1,60,00,000 EquityShares of Rs 10/- each for the approval of shareholders (FY11 dividend of Rs. 2 per share)DirectorsIn accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Mr. SRamakrishnan and Mr S Padmanabhan retire by rotation. Mr. S. Ramakrishnan and Mr. S. Padmanabhan being eligibleoffer themselves for re-appointment.Mr. Sanjeev Mehra was appointed as additional director of the company by the Board of Directors on September 02,2011. Mr. Ramesh Subramanyam and Mr. Arun Srivastava were appointed as additional directors of the company onMay 07, 2012. By virtue of Section 260 of the Companies Act, 1956, they hold office upto the date of the ensuing AnnualGeneral Meeting and are eligible for appointment. The Company has received notices under Section 257 of theCompanies Act, 1956 alongwith requisite deposit from members of the Company proposing their candidature for theoffice of Director.The Board has subject to approval of the members in the Annual General Meeting, appointed Mr. Sanjeev Mehra asManaging Director of the Company for a period of three years from 02nd September, 2011 to 01st September, 2014.Mr. Rajendra Mirji resigned as Manager with effect from 02nd September, 2011. Mr. Sunil Wadhwa had resigned fromthe Board with effective from 30.03.2012. The Board placed on record its sincere appreciation of the valuable servicesrendered by them.None of the Directors of the Company is disqualified under section 274 (1) (g) of the Companies Act, 1956.AuditorsMembers are requested, as usual, to appoint Auditors for the current year and authorise the Board of Directors to fixtheir remuneration. M/s. Deloitte Haskins & Sells (DHS), the present Auditors who retire at the conclusion of theforthcoming Annual General Meeting are eligible for re-appointment and have expressed their willingness to bere-appointed and have given a certificate to the effect that their re-appointment, if made, would be within the limitsprescribed under Section 224(1B) of the Act.Disclosure Of ParticularsParticulars of Employees: Information in accordance with the provisions of Section 217 (2A) of the Companies Act,1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended, regarding employees is notapplicable as all the managers, executives and officers are employees of The Tata Power Co. Ltd. and are deputed to theCompany.Conservation of Energy, Technology Absorption and Foreign Exchange Earnings andOutgoThe Company does not fall under any of the industries covered by the Companies (Disclosure of Particulars in theReport of the Board of Directors) Rules, 1988. Hence, the requirements of disclosure in relation to Conservation ofEnergy, Technology Absorption & Foreign Exchange Earnings and Outgo are not given.During the year, the Company earned a Foreign Exchange of Rs. 44,99,836/- (Rs. 28,96,763/-) from Coal SupplyFacilitation business. The outgo during the year was Rs. 24,47,607/-(Rs. 21,68,996-) on account of implementationPower Management System software platform.
  6. 6. across the length and breadth of the countryWe are dedicated to Empowering Businesses throughPartnerships for sourcing and supplying electricityand beyond…
  7. 7. 15Management Discussion & AnalysisRenewable Energy Certificates (REC)The REC certificate trading on power exchanges was introduced by CERC during the current financial year and TPTCL isone of the major players in this area. The Company provides advisory to Renewable Energy developers to guide themthrough the process of issuance of the Renewable Energy Certificates (REC) and to facilitate the trading of RECs in thePower Exchanges. Presently the RECs can be traded only on power exchanges and not directly by the trades. Thecompany is trading RECs from the generators and purchasing them for the obligated entities.Advisory ServicesThe Company offers Consultancy Services to CPPs / IPPs on matters pertaining to power dispatch, scheduling,evacuation, project formulation, operation and maintenance.The company also provides Energy billing and regulatoryadvisory services to large power projects.The Company deploys its staff to provide end to end solution and also to trainthe staff of the clients. The company provides the power trading and REC trading services to many of the Tatacompanies including all divisions of Tata Power, Tata Steel and Tata Motors and TPDDL.OutlookOpen Access enables consumers to procure power directly from various sources enabling consumer choice andfostering competition in the supply business. This provides a unique opportunity for a Trading Company to supplypower at competitive rates to the consumers. Supply under open access is expected to be a major opportunity for thecompany with the growth in participation from both the Supply and the Demand side. Opportunities for power tradingare expected to increase with the increase in merchant market with supply from IPPS.Risk And ConcernsThe financial condition of the distribution sector is a matter for deep concern and has increased counterparty riskswhile the trading margins are reduced due to fierce competition. The cumulative defaults of the distributioncompanies in power trading alone have been more than 3000 crs. Power traders with a parent company that has apresence across the power value chain are more favorably placed because the parent can act as both buyer and sellerfor the power trader, thus lowering the counterparty risk. Distribution companies (Discoms) prefer to shed load ratherthan purchase power, resulting in lower off-take and dampened prices in the merchant market. It is a paradox in theIndian market that consumers have to invest in generating expensive power using backup power equipment whileinexpensive power remains un-dispatched due to load shedding by Discoms. In addition, the unwillingness of Discomsto allow for open access to their consumers in spite of the provisions in EA 2003 is acting as a barrier to further growthand competition in the sector. The corridor congestion to southern region has constrained power flow to the regionthereby increasing the power rates in southern region.The company enters into customized contracts with various counterparties including Discoms, Industrial Consumers,as well as CPPs and IPPs. Timely settlement of disputes arising out of non adherence to contractual terms bycounterparties is a challenge. Clarity in jurisdiction and delay with respect to outcome of petitions filed in variousSERCs may also affect business performance.
  8. 8. 17Management Discussion & AnalysisAnnexure to the Auditors Report (Referred to in paragraph 3 of our report of even date)Having regard to the nature of the company’s business/activities, clauses (ii), (xiii), (xiv), and (xx) of CARO are notapplicable.(i) In respect of its fixed assets:(a) The company has maintained proper records showing full particulars, including quantitative details andsituation of the fixed assets.(b) The fixed assets were physically verified during the year by the management in accordance with a regularprogramme of verification which, in our opinion, provides for physical verification of all the fixed assets atreasonable intervals. According to the information and explanation given to us, no material discrepancieswere noticed on such verification.(c) During the year no fixed assets were disposed off by the company.(ii) The company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or otherparties listed in the Register maintained under Section 301 of the Companies Act, 1956, and accordinglyparagraph 4 (iii) of CARO is not applicable.(iii) In our opinion and according to the information and explanations given to us, having regard to the explanationsthat some of the items purchased are of special nature and suitable alternative sources are not readily availablefor obtaining comparable quotations, there is an adequate internal control system commensurate with the sizeof the company and the nature of its business with regard to purchase of fixed assets and the sale of goods andservices. During the course of our audit, we have not observed any major weakness in such internal controlsystem.(iv) According to the information and explanations given to us, the company has not entered into any contracts orarrangement with parties, which needs to be entered in the register maintained under Section 301 of theCompanies Act, 1956.(v) According to the information and explanations given to us, the company has not accepted any deposit from thepublic to which the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act,1956, or the Companies (Acceptance of Deposits) Rules, 1975 apply.(vi) In our opinion, the internal audit function carried out during the year by a firm of Chartered Accountantsappointed by the management have been commensurate with the size of the company and nature of itsbusiness.(vii) As informed to us by the management, the Central Government has not prescribed maintenance of cost recordsfor any of the product of the company pursuant to the Companies (Cost Accounting Records) Rules, 2011 underSection 209(1)(d) of the Companies Act, 1956.(viii) According to the information and explanations given to us in respect of statutory dues:(a) The company has generally been regular in depositing undisputed dues, including Income-tax, Sales Tax,Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to itwith the appropriate authorities.(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty,Cess and other material statutory dues in arrears as at 31st March, 2012 for a period of more than 6 monthsfrom the date they became payable.(c) Details of unpaid disputed amounts payable in respect of Income-tax, Sales Tax, Wealth Tax, Service Tax,Custom Duty, Excise Duty and Cess as at 31st March, 2012 are given below:Name of Nature of Amount Period to which the Forum where dispute isthe statute the dues (In `) amount relates pendingIncome Tax Act, 1961 Income Tax 168,273 Financial Year – 2007-08 Deputy Commissioner of Income Tax
  9. 9. We are uniquely positioned to undersrandyour business needs due to our associationwith our parent company which haspresence in all the segments of powersector spanning Generation, Transmission,Distribution, with capacities in Thermal,hydro and Renewable energy space.
  10. 10. Balance Sheet as at 31st March, 2012Notes 31st March 2012 31st March 2011` `Equity And LiabilitiesShareholders FundsShare Capital 3 160,000,000 160,000,000Reserves and Surplus 4 556,248,060 452,907,054716,248,060 612,907,054Current LiabilitiesTrade Payables (Refer Note 18) 490,209,032 1,083,071,602Other Current Liabilities 5 121,259,330 62,316,874Short-term Provisions 6 42,035,934 42,780,736653,504,296 1,188,169,212Total 1,369,752,356 1,801,076,266AssetsNon-Current AssetsFixed AssetsTangible Assets 7 6,060,164 5,650,192Intangible Assets 7 3,580,452 9,718,3709,640,616 15,368,562Non-current Investments 8 25,000,000 25,000,000Deferred Tax Assets (net) 9 48,685,200 39,369,000Long-term Loans and Advances 10 5,558,561 2,663,62188,884,377 82,401,183Current AssetsTrade Receivables 11 825,834,379 998,706,453Cash and Cash Equivalents 12 357,659,254 636,689,627Short-term Loans and Advances 13 97,374,346 83,279,0031,280,867,979 1,718,675,083Total 1,369,752,356 1,801,076,266The accompanying notes are an integral partof the financial statements.In terms of our report attached.For Deloitte Haskins & Sells R. A. BANGAChartered Accountants Partner Mumbai, 14th May, 2012.For and on behalf of the BoardS. Ramakrishnan Sanjeev Mehra T. N. RamakrishnanChairman Managing Director Secretary Mumbai, 14th May, 2012.20 Balance Sheet as at 31st March, 2012
  11. 11. 21Profit & Loss Account for the year ended 31st March, 2012Notes 31st March 2012 31st March 2011` `Revenue from Operations 14 19,267,016,269 19,320,549,052Other Income 15 15,414,045 37,357,941Total Revenue 19,282,430,314 19,357,906,993ExpensesCost of power purchased 19,187,737,193 19,289,540,460Less : cash discount earned (281,167,298) (275,039,048)18,906,569,895 19,014,501,412Compensation Expenses /(Income) (Net)Compensation Incurred 72,959,960 236,276,804Less: Compensation Earned (72,959,960) (223,705,604)- 12,571,200Finance costs 16 9,961,246 647,112Depreciation and amortizationexpense 7 7,215,673 7,209,124Other expenses 17 160,125,283 198,454,442Total Expenses 19,083,872,097 19,233,383,290Profit Before Tax 198,558,217 124,523,703Tax expensesCurrent tax expense forcurrent year 70,000,000 63,000,000Current tax expense relatingto prior years (2,657,789) 2,002,000Net current tax expense 67,342,211 65,002,000Deferred tax (9,316,200) (31,941,700)Total Tax expense 58,026,011 33,060,300Profit for the year 140,532,206 91,463,403Basic and Diluted Earnings Per Share (In `)(Face value ` 10/- per share) 8.78 5.72The accompanying notes are an integral part of the financial statements.In terms of our report attached.For Deloitte Haskins & Sells R. A. BANGAChartered Accountants Partner Mumbai, 14th May, 2012.For and on behalf of the BoardS. Ramakrishnan Sanjeev Mehra T. N. RamakrishnanChairman Managing Director Secretary Mumbai, 14th May, 2012.Statement of Profit and Lossfor the year ended 31st March, 2012
  12. 12. Cash Flow Statementfor the year ended 31st March, 201222 Cash Flow Statement for the year ended 31st March, 2012Year ended Year ended31st March 2012 31st March 2011` `A. Cash flow from operating activitiesProfit before taxes 198,558,217 124,523,703Adjustments for:Depreciation / Amortisation 7,215,673 7,209,124Interest expenditure 9,961,246 647,112Interest income (15,444) -Dividend income (15,398,601) (26,750,687)Provision for doubtful tradereceivables and advances 27,770,819 96,389,609Loss on fixed assets sold (net) - 434,41729,533,693 77,929,575Operating profit before workingcapital changes 228,091,910 202,453,278Adjustments for:Trade receivables 150,733,705 57,130,748Short-term loans and advances (19,727,793) (36,068,305)Trade payables (592,862,570) (240,572,944)Other current liabilities 58,942,456 25,798,440(402,914,202) (193,712,061)Cash (used in) / generatedfrom operations (174,822,292) 8,741,217Taxes paid (70,858,353) (64,512,745)Net cash used in operatingactivities A (245,680,645) (55,771,528)B. Cash flow from investing activitiesPurchase of fixed assets (1,487,727) (2,252,014)Sale of fixed assets - 325,111Purchase of current investments (12,424,957,321) (17,614,114,986)Sale of current investments 12,424,957,321 17,615,449,739Interest received 15,444 -Dividend received 15,398,601 26,750,68713,926,318 26,158,537Net cash from investing activities B 13,926,318 26,158,537C. Cash flow from financing activitiesProceeds from short-termborrowings 200,000,000 -Repayment of short-termborrowings (200,000,000) -Interest paid (9,961,246) (647,112)Dividend paid (32,000,000) (4,000,000)Additional income-tax ondividend paid (5,314,800) (2,515,260)(47,276,046) (7,162,372)Net cash used in financing activities C (47,276,046) (7,162,372)Net decrease in cash and cash equivalents(A+B+C) (279,030,373) (36,775,363)Cash and cash equivalents as at1st April, 2011, 2010 (Opening Balance) 636,689,627 673,464,990Cash and cash equivalents as at31st March, 2012, 2011 (Closing Balance)(Refer Note 12) 357,659,254 636,689,627In terms of our report attached.For Deloitte Haskins & Sells R. A. BANGAChartered Accountants Partner Mumbai, 14th May, 2012.For and on behalf of the BoardS. Ramakrishnan Sanjeev Mehra T. N. RamakrishnanChairman Managing Director Secretary Mumbai, 14th May, 2012.
  13. 13. Schedules forming part of the Balance Sheet as at 31st March, 201223Schedules forming part of the Balance Sheet as at 31st March, 201231st March 2012 31st March 2012 31st March 2011 31st March 2011Nos. ` Nos. `Note 3 Share CapitalAuthorizedEquity shares of `10/- each 20,000,000 200,000,000 20,000,000 200,000,0006% Non cumulative Redeemablepreference shares of `10/- each 18,000,000 180,000,000 18,000,000 180,000,00038,000,000 380,000,000 38,000,000 380,000,000Issued, subscribed and fully paid-upEquity shares of `10/- each fully paid 16,000,000 160,000,000 16,000,000 160,000,000Total issued, subscribed and fullypaid-up share capital 16,000,000 160,000,000 16,000,000 160,000,000a. Reconciliation of the sharesoutstanding at the beginning and atthe end of the reporting periodEquity shares31st March 2012 31st March 2011Nos. ` Nos. `At the beginning and at the endof the period 16,000,000 160,000,000 16,000,000 160,000,000b. Terms/rights attached to equity sharesThe company has issued only one class of equity shares having a par value of ` 10/- per share. Each holder ofequity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to theapproval of the shareholders in the ensuing Annual General Meeting. The Company declares and pays dividendin Indian Rupees.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remainingassets of the company, after distribution of all preferential amounts. The distribution will be in proportion to thenumber of equity shares held by the shareholders.During the year ended 31st March 2012, the amount of per share dividend recognized as distribution to equityshareholders was ` 2 (31st March 2011 : ` 2).c. Shares held by holding companyOut of equity shares issued by the company, shares held by its holding company are as below:31st March 2012 31st March 2012 31st March 2011 31st March 2011Nos. ` Nos. `The Tata Power Company Limited,the holding companyEquity shares of `10 each fully paid 16,000,000 160,000,000 16,000,000 160,000,000d. Details of shares held by eachshareholders holding more than5% shares
  14. 14. 24 Schedules forming part of the Balance Sheet as at 31st March, 201231st March 2012 31st March 2011Nos. % holding in Nos. % holding inthe class the classEquity shares of `10 each fully paidThe Tata Power Company Limited,holding company 16,000,000 100% 16,000,000 100%Note 4 Reserves and Surplus31st March 2012 31st March 2011` `Securities Premium AccountOpening and closing balance 208,950,000 208,950,000General ReserveOpening balance 27,500,000 20,500,000Add: Amount transferred fromSurplus inStatement of Profit and Loss 11,000,000 7,000,000Closing Balance 38,500,000 27,500,000Surplus in Statement ofProfit and LossOpening balance 216,457,054 169,308,451Add : Profit for the year 140,532,206 91,463,403Less : Proposed Dividend(amount per share ` 2(31st March 2011 - ` 2)) 32,000,000 32,000,000Additional Income-tax on proposedDividend 5,191,200 5,314,800Transfer to General Reserve 11,000,000 7,000,000Closing Surplus in Statementof Profit and Loss 308,798,060 216,457,054Total Reserves and Surplus 556,248,060 452,907,054Note 5 Other Current Liabilities31st March 2012 31st March 2011` `Advances from customers 58,945,392 17,628,811Security deposits from customers 35,941,140 3,935,000Statutory Liabilities- Service Tax payable 56,542 478,950- TDS payable 13,645,050 15,239,938Security deposits from vendors 5,056,995 5,056,995Other liabilities 7,614,211 19,977,180121,259,330 62,316,874Schedules forming part of the Balance Sheet as at 31st March, 2012
  15. 15. Schedules forming part of the Balance Sheet as at 31st March, 2012Note 7 Fixed Assets `Gross Block Accumulated DepreciationTangible Assets As at Additions Deductions As at As at For the year Deductions As at As at As at01-04-2011 31-03-2012 01-04-2011 31-03-2012 31-03-2012 31-03-2011Plant And Equipment 3,022,817 520,653 - 3,543,470 1,054,136 519,529 - 1,573,665 1,969,805 1,968,681Furniture And Fixtures 2,606,261 967,074 - 3,573,335 1,214,575 186,916 - 1,401,491 2,171,844 1,391,686Office Equipments 1,019,534 - - 1,019,534 39,445 226,208 - 265,653 753,881 980,089Vehicles 1,527,389 - - 1,527,389 217,653 145,102 - 362,755 1,164,634 1,309,736Total- 2011-2012 8,176,001 1,487,727 - 9,663,728 2,525,809 1,077,755 - 3,603,564 6,060,164 5,650,192- 2010-2011 7,288,408 2,252,014 1,364,421 8,176,001 2,059,496 1,071,206 604,893 2,525,809 5,650,192Intangible Assets As at Additions Deductions As at As at For the ye ar Deductions As at As at As at01-04-2011 31-03-2012 01-04-2011 31-03-2012 31-03-2012 31-03-2011Computer Software 20,459,726 - - 20,459,726 10,741,356 6,137,918 - 16,879,274 3,580,452 9,718,370Total- 2011-2012 20,459,726 - - 20,459,726 10,741,356 6,137,918 - 16,879,274 3,580,452 9,718,370- 2010-2011 20,459,726 - - 20,459,726 4,603,438 6,137,918 - 10,741,356 9,718,370Gross Block Accumulated Amortisation Net Block25Schedules forming part of the Balance Sheet as at 31st March, 2012Note 6 Short-term Provisions31st March 2012 31st March 2011` `Other ProvisionsProvision for Tax (net of advance tax` 65,155,266/- (as at 31st March, 2011- ` 97,334,065/-)) 4,844,734 5,465,936Proposed Equity Dividend 32,000,000 32,000,000Provision for Tax on ProposedEquity Dividend 5,191,200 5,314,80042,035,934 42,780,73642,035,934 42,780,736
  16. 16. 26 Schedules forming part of the Balance Sheet as at 31st March, 2012Schedules forming part of the Balance Sheet as at 31st March, 2012Note 8 Non-Current Investments31st March 2012 31st March 2011` `Trade investments (valued at cost less diminution,other than temporary, if any)Equity Shares (Unquoted)25,00,000 (31st March 2011 - 25,00,000) shares of ` 10each fully paid-up in Power Exchange India Limited 25,000,000 25,000,00025,000,000 25,000,000Note 9 Deferred Tax Assets (Net)31st March 2012 31st March 2011` `Deferred Tax LiabilityRelating to fixed assets 1,056,500 2,335,400Total 1,056,500 2,335,400Deferred Tax AssetsProvision for doubtful trade receivables and advances 49,741,700 41,704,400Total 49,741,700 41,704,400Deferred Tax Assets (Net) 48,685,200 39,369,000Note 10 Long Term Loans and Advances31st March 2012 31st March 2011` `Unsecured, considered goodAdvance income-tax (net of provisions` 134,893,083/- (as at 31st March, 2011 - ` 93,464,923/-)) 5,558,561 2,663,6215,558,561 2,663,621Note 11 Trade ReceivablesCurrent31st March 2012 31st March 2011` `Outstanding for a period exceeding six months fromthe date they are due for paymentUnsecured, considered good 126,285,034 23,956,563Doubtful 124,441,595 98,671,668250,726,629 122,628,231Less : Provision for doubtful trade receivables (124,441,595) (98,671,668)126,285,034 23,956,563Other ReceivablesSecured, considered good 9,517,542 -Unsecured,considered good 690,031,803 974,749,890Doubtful 17,126,554 20,758,112716,675,899 995,508,002Less : Provision for doubtful trade receivables (17,126,554) (20,758,112)699,549,345 974,749,890Total 825,834,379 998,706,453
  17. 17. 27Schedules forming part of the Balance Sheet as at 31st March, 2012Note 12 Cash and Cash Equivalents31st March 2012 31st March 2011` `Balances with banks :In Current Accounts 357,659,254 636,689,627357,659,254 636,689,627Of the above, the balances that meet the definitonof Cash and cash equivalents as per AS 3 Cash FlowStatements 357,659,254 636,689,627Note 13 Short-term Loans and Advances31st March 2012 31st March 2011` `Security DepositsUnsecured,considered good 80,081,604 59,535,564Doubtful 6,500,000 -86,581,604 59,535,564Provision for doubtful deposits (6,500,000) -80,081,604 59,535,564Other Loans and AdvancesUnsecured - Considered good 17,292,742 23,743,439Doubtful 5,242,603 6,110,15322,535,345 29,853,592Less: Provision for doubtful advances (5,242,603) (6,110,153)17,292,742 23,743,439Total 97,374,346 83,279,003Note 14 Revenue from Operations31st March 2012 31st March 2011` `Revenue from OperationsSale of products (traded goods)Revenue from Power Supply 19,440,344,201 19,512,696,138Less : Cash discount allowed 233,615,521 214,349,08019,206,728,680 19,298,347,058Sale of servicesRevenue from Power Banking Sale 19,916,552 3,903,271Income from Advisory Services 38,201,257 18,298,723Income from other services 2,169,780 -60,287,589 22,201,994Total 19,267,016,269 19,320,549,052Note 15 Other Income31st March 2012 31st March 2011` `Interest Income on Income tax refund 15,444 -Dividends from Current Investments 15,398,601 26,750,687Liability written back - 10,607,25415,414,045 37,357,941Schedules forming part of the Balance Sheet as at 31st March, 2012
  18. 18. 28 Schedules forming part of the Balance Sheet as at 31st March, 2012Note 16 Finance Costs31st March 2012 31st March 2011` `Interest on Short Term Borrowings 9,132,026 123,010Interest paid to supplier - Holding company 829,220 -Interest on delayed payment of Advance Tax - 524,1029,961,246 647,112Note 17 Other Expenses31st March 2012 31st March 2011` `Stores, Oil etc. consumed 122 10,602Rent 9,428,284 7,161,997Insurance 68,163 43,426Repairs and maintenanceBuildings 103,581 429,260Others 181,076 206,557Other Operation Expenses 21,940,084 20,118,386Cost of Services 56,695,243 38,249,412Tata Brand Equity 11,909,941 7,743,966Payment to auditor (Refer details below) 2,192,115 1,870,688Loss / (Gain) on foreign currency transactionsand translation (Net) 9,104 (41,560)Legal and professional charges 7,616,479 9,631,909Consultants fees 16,486,572 13,057,464Miscellaneous expenses 5,723,700 3,148,309Provision for doubtful trade receivables and advances 27,770,819 96,389,609Loss on fixed assets sold (net) - 434,417160,125,283 198,454,442Payment to the auditors comprises (inclusive of service tax):31 March 2012 31 March 2011` `As auditors - statutory audit 1,348,320 1,103,000For taxation matters 165,450 165,450For other services 678,345 602,2382,192,115 1,870,688Schedules forming part of the Balance Sheet as at 31st March, 2012
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