tata powers ven

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TATA POWERS

COMPANY ANALYSIS WITH REFERENCE TO

Mini project submitted to JNTU

Kakinada for the partialFulfillment of first year MBA degree course.

Presented by:

NAME ,

1ST YEAR MBA..

CIET COLLEGE,RJY. Under the guidance of :

K.VENKATARAO.MBA, M.COM, M.PHIL.ASSOCIATE PROFESSOR, GIET.

2008-2009.JNTU KAKINADA .


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1

CERTIFICATE

Certified that is the mini project report

entitled Company Analysis with reference to

________________________________________ has been prepared

by__________________________________________student of the MBA CIET

RJY. Under my guidance. This is a bonafide done by

MR. VENKATARAO. During the year 2008-2009.


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CONTENTSPage Nos.

INTORODUCTION

COMPANY ANALYSIS

ABOUT COMPANY

PROFILE

VISION & MISSION

HISTORY

BOARD OF DIRECTORS

COMPATETIORS

BALANCE SHEET & P&L A/C

COMARATIVE

COMMAN SIZE

TREND

RATIO ANALYSIS


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INTRODUCTION

Company analysis deals with the estimation of return and individualcompany / company shares. This calls for information. Many pieces of informationinfluence investment decision. Information regarding companies can be broadlyclassified into two broad groups:

INTERNAL:

Internal information consists of data and events made public by companiesconcerning their operations. By internal information sources include annual reports, toshare holders (chairman report, financial statements, auditors reports, annual report, anddirectors report) and public and private statements of officers of the company etc.

EXTRANAL:

External source of information are those generated independently outside thecompany is prepared by investment of the financial portals.

In company analysis the analyst tries forecast the future earnings of the company because there is a strong evidence that earnings have direct and powerful effect uponshare crisis the level, trend ability of earnings of a company however depend upon anumber of factors consult the operatives of the company.

Company analysis can be under taking into consideration the following factors

1. Financial statements and analysis.(a). Income statement(b). Balance sheet.

2. Tools to be used for the analysis of the financial statements are:(a). Comparative statement.


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(b). Common size statement.(c). Trend analysis.(d). Ratio analysis.(e). Cash flow and Fund flow analysis.

EVALUTION OF WORKINGS OF THE TOP MANAGEMENT :

The most important variable affecting the future prospectors of a company is perhaps the quality of management. Assessing the quality and competence of the most ismost difficult in a company analysis.

Jc. Franchise in his book management of investment suggested the following listof questions which may be used to evaluate the management of a company.

Is management aggressive and growth orient.

Is management looking ahead resting on a

Thus the firm plan ahead on is it managed by crisis.

Thus the firms executives appear to have energy and good leadership instincts?Or the executives are unable to answer questions satisfactory, too young, too oldor experienced?

Is the firm well diversified does one customer provide most of the firm sales thusone product line provide most of the firms sales.

As the firm use only marketing channel for its sales.


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Is the industry in which the firm is located experiencing and increasing or decreasing sales fund?

Is the firm appearing to have an adequate R and D program?

If the trend is down word thus the firm have a product that becoming oxalateupdated.

If this is the case if the firm earning all available funds in to new product

development while also merging with growing firm.

Even is the company is a profitable and his enjoying sales growth does itnerveless retain some of its current earnings for R and D expending

Thus the firm properly utilized its board of directors.

Thus the board has many of the firms own executives on it.

Thus the board largely consists of conflict and executive from outside the firm, asit should?

Thus the boards of directors have access to information with needs to properlyover see and direct the firm.

Thus management satisfactorily responds regular intervals?


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Objectives of the study

The study has been carried out by the following objectives.

1. To study the company analysis i.e. financial analysis.2. To study the overview of nestle company3. To study the information relating to the financial concept i.e. profit and

loss account, balance sheet, trend analysis.4. To examine the current finance position of the company.5. To study the overall performance of financial activities of nestle company.

SCOPE

The companys strengths and weaknesses and areas of development or decline areanalyzed. Financial, strategic and operational factors are considered. The opportunities open to the company are considered and its growth potential

assessed. Competitive or technological threats are highlighted. The report contains critical company information business structure and operations,

the company history, major products and services, key competitors, key employees andexecutive biographies, different locations and important subsidiaries. It provides detailed financial ratios for the past five years as well as interim ratios for

the last four quarters. Financial ratios include profitability, margins and returns, liquidity and leverage,

financial position and efficiency ratios


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METHODOLOGY

To fulfill the objectives of the study, secondary data have been collected.

SECONDARY DATA:

The secondary source of information had obtained from the companyinformation on the TATA MOTORS.

COMPANY ANALYSIS

ANALYSIS AND INTERPRETATION :

Financial statements are prepared primarily for decision-making. The statementsare not an end in them, but are useful in decision making. Financial analysis is the

process of determining the significant operating and financial characteristics of a firmform accounting data. The profit and loss account and balance sheet are indicators of twosignificant factors-profitability and financial soundness. Analysis of statement meanssuch a full diagnosis of the profitability and financial position of the firm concerned.Financial statement analysis is largely a study of relationship among the various financialfactors in a business as disclosed by a single set of statements and a study of the trends of these factors as shown in a series of statements. The main function of financial analysisis the pinpointing of the strength and weakness of a business undertaking by regroupingand analyses of figures contained in the financial statements, by making comparisons of various components and examine their content. The financial statements are the bestmedia of documenting the results of managerial efforts to the owners of the business, itsemployee, its customers and the public relations.


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Analysis includes:

(a) Breaking financial statements into simpler ones,

(b) Regrouping,

(c) Rearranging the figures given in financial statements and

(d) Finding out ratios and percentages.

Thus all process which help in drawing certain results from the financialstatements are included in analysis. The data provided in the financial statementsshould be methodically classified and compared with figures of previous period or other similar firms. Thereafter, the significance of the figures is established. Themethodically classified and compared with figures of previous period or other similar firms. Thereafter, the significance of the figures financial statements isthe same as that of a pathologist, who takes a drop of blood and analysis it to

point out its various components and gives a report on the basis of his analysis.Analysis only establishes a relationship between various amounts mentioned inBalance sheet and Profit and Loss Account. After making analysis of the

financial statements, the next step is to use mind for forming an opinion about theenterprise. This is the Interpretation stage. The technique is called analysis andinterpretation of financial statements. Analysis consists in breaking down acomplex set of facts or figures into simple elements. Interpretation, on the other hand, consists in explaining capacity the real significance of these simplifiedstatements. Interpretation includes both analysis and criticism.

To interpret means to put the meaning of statement into simple terms for the benefit of a person. Interpretation is to explain in such a simple language thefinancial position and earning capacity of the company which may be understood

even by a layman, who does not know accounting. The analysis andinterpretation of financial statements requires a comprehensive and intelligentunderstanding of their nature and limitations as well the determination of themonetary valuation of the items. The analyst must grasp what represent soundand unsound relationship reflected by the financial statements. Interpretation isimpossible without analysis. Interpretation is not possible without analysis and


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without interpretation analysis has no value. Analysis and interpretation act as a bridge between the art of recording and reporting financial information and the actof using this information. Analysis refers to the process of fact finding and

breaking down complex set of figures into simple components whileinterpretation stands for explaining the real significance of these simplifiedcomponents. Interpretation is a mental process based on analysis and criticism.

TOOLS OF FINANCIAL ANALYSIS (METHODS):

A financial analyst can adopt the following tools for analysis of the financialstatements. These are also termed as methods as methods of financial analysis.

1. Comparative Financial Statements

2. Common Size Statements

3. Trend Ratios or Trend Analysis

4. Statement of changes in working Analysis

5. Fund Flow and Cash Flow Analysis6. Ratio Analysis

COMPARATIVE FINANCIAL STATEMENT:

The preparation of comparative financial and operating statement is an important

deceives of horizontal financial analysis. As their very name suggests, comparativefinancial statements are statements of the financial position of a business so designed asto provide time perspective to the consideration of various elements of financial positionembodied in such statements. Generally, balance sheet and income statement whichalone are prepared in a comparative form because they are the most important statements


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of financial position. In these statements figures for two or more periods are placed side by side to facilitate comparison. These statements render comparison between two periods of time and exhibit the magnitude and direction of historical changes in theoperating results and financial status of a business. Financial statements of two or morefirms may also be compared for drawing inferences. This is to indicate the changes fromone year to another in absolute terms and also in percentage the change from. Thefollowing illustration makes clear understanding:

PROCEDURE FOR INTERPRETATION:

1. Ascertain the purpose and the extent of analysis and interpretation.

2. Study the available data contained in financial statements.

3. Get additional information, if needed.

4. Arrange the data in useful manner.5. Prepare comparative statements, ratios etc.

6. Interpret the facts revealed by the analysis.

7. The interpretations drawn from the analysis are presented.


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OBJECTIVES OF ANALYSIS AND INTERPRETATION:

The following are the main objectives of analysis and interpretation of financialstatements.

1. To estimate the earning capacity of the firm.

2. To assess the financial position of the firm.

3. To decide about the future prospects of the firm.

4. To know the solvency of the firm.

5. To judge the solvency of the firm.

6. To measure the efficiency of operations.

7. To determine debt capacity of the firm.

8. To assess the financial performance of the firm.

9. To have comparative study.

10. To help in making future plans.

Analysis of financial statements should always be tuned to the objective. Peopleuse financial statements for satisfying their particular curiosity. Financial accounts areinterpreted by different persons in different ways according to their objects. For instancesame financial statement may be very good for one.

A prospective shareholder would like to know whether the business is profitableand is progressing on sound lines.

A supplier who would like to transact business with the firms may be interested inthe companys ability to honor its short-tern commitments.

A financier would like to be satisfied with safety and reliability of return on hisinvestment. Thus, the object of the analysis determines the extent, depth andnature of analysis.


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COMMON-SIZE STATEMENT:

Financial statements when read with absolute figures are not easilyunderstandable. They even misleading. Each item of assets is converted into percentageto total liabilities and capital fund. Thus the whole balance sheet is converted into

percentage form. Such converted Balance Sheet is known as common for the same year are converted into percentage form and presented as such, they are known asComparative Common-Size Balance Sheets. Again, in profit and loss Account Salesfigure is assumed to be equal to 100 and all other figures are expressed as percentage tosales. Similarly, in Balance Sheet the total of assets or liabilities is taken as 100 and allthe figures are expressed as percentage of the total.

TREND ANALYSIS :

The Comparative and common-size statements suffer from a major limitation i.e.,absence of a basic standard to indicate whether the proportion of an item is normal or abnormal. Trend analysis overcomes this limitation. This method is also an important

and useful technique of financial statement of arithmetical relationship which each itemof several years to the same item of base year. Thus, one particular year out of manyyears is taken as base. The value of one particular year item out of several items shownin the financial statements are converted into ratio or percentage taking of that item in

base year as equal to 100.

STATEMENT OF CHANGES IN WORKING CAPITAL :

The working capital does change due to various transactions. The working capital

position at the beginning of a period is changed to a different position at the end of that period. A statement of working capital represent the excess of current assets and currentliabilities are the component of working capital, it is necessary to measure the increase or decrease therein, by preparing a statement or schedule of changes in working capital.This statement is prepared with current assets and current liabilities as appearing in theBalance Sheets under consideration. The statement shows the changes in individualitems of current assets and current liabilities and their effect of ions


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(ii) Collection form debtors

(iii) Sale of Investment

(iv) Sale of Fixed Asset

difference of total decrease in the end is compared and the difference of total increase or net decrease in the working capital. A form of the statement is given below.


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Cash Balance in the beginning

Add- Source of cash (orCash Inflows)

(i) Cash from operations

(ii) Cash from operations

(iii) Sale of Investment andany other Fixed Asset

(iv) Issue of Share

Capital/Debentures

(v) Loans raised during theyear.

Total cash available

Less- Application of Cash(or Cash outflows)

(i) Purchase of Machineryof any other Fixed Asset

(ii) Dividend Paid

(iii) Decrease in AccountPayable

(iv) Repayment of Loans

(v) Redemption of Preference shares or debentures in cash.

Total Cash Payments

Cash balance at the end

...............................

...............................

...............................

...............................

...............................

...............................

...............................

...............................

..............................

...............................

..............................

..............................

..............................

..............................

..............................


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Cash Flow Statement (Account Form)

Cash balance at the beginning

(i) Cash fromoperations

(ii) Collection formdebtors

(iii) Sale of Investment

(iv) Sale of FixedAsset

(v) Insurance of share capital or debentures

(vi) Loan

..................

...................

...................

...................

...................

...................

...................

(i) Decrease inAccounts Payable

(ii) Purchase of Machinery or other Asset

(iii) Dividend Paid

(iv) Repayment of Loan

(v) Redumption of Pref. Shares or Debentures

Cash Balance at theend

....................

....................

....................

....................

...................

....................

CASH FLOWS:

Key to preparation of a Cash Flow Statement lies in raising the fact that all items

appearing in income statement are to be computed on cash basis which so far have been

shown an accuse basis. It is also divided in two parts-(i) Sources of cash and (ii)

Application of cash. All transactions involving inflow of cash are designated as 'sources

of cash' and all transactions resulting in outflow of cash are summarized under the

heading 'application of cash'. Cash Flow Statement may be prepared in two forms: - (i)

report form and (ii) Account from as explained above:


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FUNDS FLOW STATEMENT:

INTRODUCTION

In the previous lesson, you have learnt that changes in working capital

Were calculated with the help of a schedule of current assets and current

Liabilities and the schedule was named as "Schedule of Changes in

Working Capital". In this lesson, the focus will be on the preparation

Of ' Funds Flow Statement.

OBJECTIVES

After studying this lesson, you will be able to -

Recall the meaning of Funds Flow Statement;

Identify the purpose of preparing for Funds Flow Statement;

List the sources and uses of Working Capital;

Draw the format of Funds Flow Statement in "T Form;

Prepare Funds Flow Statement;

Describe the limitations of Funds Flow Statement.

FUNDS FLOW STATEMENT - MEANING,

PURPOSE AND ITS FORMAT

Meaning

You know that funds mean working capital and Flow means movement.

Increase in bank balance has also increased the working capital.

Hence, it is a Source of funds.

ii) Purchase of Fixed Asset for cash is a Use of funds. Cash has


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Decreased and fixed asset has increased. Decrease in current asset

Has decreased the working capital, thus it is a Use of funds.

iii) In the transaction of sale of investment, investment is a non-

Current asset and cash is a current asset Current asset is

Increasing, thus, it is a Source of funds.

iv)Cash payment of Rs.1, 00,000/- to Creditors has decreased both

Current asset (i.e., cash) and current liabilities, i.e., (creditors).

As a result, working capital has remained intact since both current

Asset and current liabilities have decreased by the same amount.

Therefore, this transaction does not cause any flow of funds.

v) Profits earned from business operations is a source of funds.

Now, with the help of Sources and Uses (Applications) of funds, a

Statement can be prepared as under:-

Ratios

Current ratio = current assets/current liabilities

Quick ratio = current assets-prepaid expenses/current liabilities bank over draft

Inventory turn over ratio = net sales/inventories

Debt assets ratio = total debts/total assets

Capital gearing ratio = total debt/net worth


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PROFITABILITY RATIOS :

Gross profit ratio = gross profit/net sales *100

Operating profit ratio = net operating profit/net sales * 100

Net profit ratio = net profit/net sales * 100

RELATED TO INVESTMENTS:

Return on capital employee =net profit + interest/total capital employee

Return on share holder equity = net profit/net worth * 100

Earning per share = net profit availability to equity share/share in issues

Per equity share = marketing share/net worth

Return on investment = net profit/net assets * 100

ACTIVITY TURNOVER RATIO:

Debts turn over ratio =net sales /average debtors

Average collection period =in a year/debtors turn over ratio

Total assets turn over ratio = net sales/assets

Inventory stock ratio = sales / investments

Working capital ratio = sales/net working capital


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PROFILE

Driven by Growth Fuelled by Power

Recognised as Indias largest private sector power utility, with a reputation for trustworthiness, built up over nearly nine decades, Tata Power surges ahead into yet another year with plans of sustained growth, greater value to consumer and reliable power supply.

Led by a powerful vision, Tata Power pioneered the generation of electricity in India. It has now successfullyserved the Mumbai consumers for over ninety years and has spread its footprints across the nation. Today,

it is the countrys largest private player in the sector. Apart from Mumbai and Delhi, the company hasgeneration capacities in Jojobera, Jharkhand and Karnataka.

Tata Power has an installed power generation capacity of above 2300 Mega Watts, with the Mumbai power business, which has a unique mix of Thermal and Hydro Power, generated at the Thermal Power Station,Trombay, and the Hydro Electric Power Stations at Bhira, Bhivpuri and Khopoli, accounting for 1797 MW. Itsdiverse generation capability facilitates the company in producing low cost energy, thereby giving itsconsumers a greater value for money.

Among its many achievements that Tata Power can proudly boast of are the installation and commissioningof Indias first 500 MW unit (at its Thermal Power Generating Station, Trombay) the 150 MW PumpedStorage Unit at its Hydro Generating Station, Bhira, and environmental control systems like the Flue GasDesulphurisation plant.

Tata Power has a first of its kind joint venture with Power Grid Corporation of India for the 1200 km TalaTransmission Project.

North Delhi Power Limited


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A joint venture with the State Government of Delhi for its North Delhi consumers, the NDPL serves over 8lakhs satisfied consumers with a peak load of 1050 MW, also providing state-of-the-art technology drivenprocesses for enhancing consumer billing and related services.

Tata Power Trading Company Limited (TPTCL), a wholly owned subsidiary of the Tata Power Company hasbeen awarded the first ever power trading license by the Central Electricity Regulatory Commission (CERC)under section 14 of the Electricity Act 2003, enabling it to carry out transactions all over India.

International Projects

Leveraging upon its engineering skills and understanding of the power business, Tata Power has carried outseveral overseas projects and successfully completed erection, testing and commissioning of major power projects in Saudi Arabia, Bangladesh, Kuwait, Algeria, Myanmar and Thailand. The company has alsoundertaken projects pertaining to power plant / operations management and plant operations training.

Strategic Electronics Division (SED)

The Strategic Electronics Division of Tata Power has been in operation for over 30 years and has beenpursuing development and production activities for the Indian defence sector. SED successfully developedthe Multi Barrel Rocket Launcher, Pinaka, proven in the field through extended user trials which led to itsinduction into the Indian Army. The Division has developed specialised equipment for Air Defence and NavalCombat systems.

Corporate Social Responsibility

Tata Power is committed to setting high standards in its pursuit of social responsibility and remainingsensitive to the issues of resource conservation, environment protection and enrichment and development of local communities in its areas of operations. The company has a simple philosophy that guides its activitiesin these matters, Giving back is a means towards going ahead".

Our widespread programmes on biodiversity conservation, afforestation, pisciculture, family planning, healthservices, primary and secondary education and many more have made inroads into the tiny hamlets andtribal regions of our hydro catchment areas and it is our endeavour to light up these dark and narrow streetsto new dawns.

Awards

CII EXIM Bank Award 2005 "Certificate for Strong Commitment to Excel".

Energy Efficient Unit Award at the National Award for Excellence in Energy Management 2005

for T&D divisions conducted by CII.


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Jojobera has been declared as the winner of Golden Peacock Special Commendation Certificate

for the year 2005 (11 June 2005).

Tata Power among the top 13 Best Managed Companies in India by Business Today AT Kearney

(11 March 2005).

The 2 nd Wartsila Mantosh Sondhi Award for outstanding contribution to the Indian Power Sector

in 2004.

Greentech Environment Excellence Award: Platinum to Jojobera Thermal Power Plant, Jharkhand

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.


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Strong values are the base of any laudable mission and vision is vital to its realisation. Tata Power'sfundamentals have always been very clear in this direction.

Vision

To be the most admired Integrated Power and Energy Company delivering sustainable value to allstakeholders

Mission

We will become the most admired Company delivering sustainable value by:

Providing world class energy solutions that exceed customer expectations

Innovating and deploying cutting edge eco-friendly technologies

Capitalising on global opportunities and exploring synergy in related businesses

Empowering and developing employees to perform at their highest potential

Caring for the safety and well-being of employees and the community

Ensuring growth and delivering superior value to the shareholders

Being customer centric

Values

Integrity : Honesty, fairness and transparency in our conduct and transactions

Trust : Faith and belief in each other

Collaboration : Excellence through teamwork, within employees and partners

Agility : Speedy, responsive and proactive, achieved through empowering employees Respect : Treat all stakeholders with respect and dignity

Excellence : Bettering standards continuously, with passion and pride


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Company History - Tata Power Company1919

- The Company was incorporated on 18th September, at Mumbai. TheCompany generate and supply Electricity. The Tata Hydro-ElectricPowerSystem comprises the Tata Hydro-Electric Power Supply Co., Ltd., theAndhra Valley Power Supply Co. Ltd., and the Tata Power Co., Ltd.

1953

- 1,500 Right Equity shares issued at par in prop. 2:5.

1955

- 15,000 partly paid shares fully called up.

1961

- The Company together with its two associated companies decided toenter into a partnership arrangement with Ebasco India, Ltd., fortheestablishment in India of a consulting engineering firm by the nameof`Tata-Ebasco Consulting Engineering Services'.

1967

- 51,536 right equity shares issued at par (prop. 1:10).

1968

- 1,00,000-9.25% pref. shares offered for public subscription.

1969

- A new company under the name Chemical Terminal Trombay, Ltd., wasformed, in participation with other Tata Companies and ElephantaIndiaPrivate Ltd., with the object to installation of storage tanks on apart of the Company's ash disposal area at Trombay and the laying ofapipeline connecting the storage tanks with the Mumbai Port Trust'spierat Pir Pau.


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1971

- The purchase price of assets under the Khopoli Electric Licence,1933was determined by mutual agreement to be Rs 21.50 lakhs plus asolatiumof 10% as provided in the Licence. A substantial portion of thepurchase price was paid to the Company by the Maharashtra StateElectricity Board.

1975

- 1,13,379 bonus shares issued in prop. 1.5.

1980

- The Company set up a new manufacturing facility at Bangalore, forcommercial production of electronic items designed by its R&D lab.

- Interest on 9.5% `A' pref. shares raised to 11% effective 1.4.1980and redumption date extended to 1.4.1995. 25,965 pref. shares ofdissenting shareholders redeemed.

1981

- 3,50,000 No. of equity shares issued at par to public in June.20,000 No. of equity shares issued to financial institutions on part

conversion of 11% Fifth debentures (1981-88). 1984

- The Capacity of set No. 1 at Bhira was uprated from 22 MW to 25MW.

- The Company cancelled its 86,970-7.5% non-redeemable preferenceshares of Rs 100 each with effect from 1st April and allotted to theholders of these preference shares 86,970-15% securednon-convertibledebentures of Rs 100 each in the proportion 1:1.

1986

- Forfeiture on 255 equity shares annulled, 4,56,350 No. of equityshares allotted at par to financial institutions upon conversion ofloans/debentures.

1987

- A new double circuit 22/110 KV transmission line was constructedin


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North Mumbai from Borivli to Malad to meet the requirements ofMunicipal Corporation of Greater Mumbai besides meeting loads inKandivili, Malad, etc. It was commissioned during 1988-89.

- The transmission and distribution network was also strengthened tomaintain reliability of power supply by installation of 2 x 200 MVA,220/110 KV interconnecting transformers at Trombay, a new 22 KVindoorswitchgear at Saki, new capacitor banks at Saki and Kalyan etc.

- The Company's proposals of 220/110 KV switching station and new110KV receiving station at Grant Road were cleared by State and CentralGovernments. The Company undertook to install a 180 MW combinedcycleplant at Trombay using gas turbines.

1988

- A generator stator weighing 260 tonnes supplied by KWU W. Germanywaslifted into position along with the boiler drum from BHEL, Trichy.A110 KV oil filled cables for bulk transmission of power from CarnactoBackbay was laid to feed BEST's receiving station.

- The Company in participation with Tata Projects Ltd., undertook to

construct a 600 bed Grade I hotel at Tashkant (USSR). 1989

- It was proposed to upgrade the transmission lines from Bhira toDharavi from 110 KV to 220 KV. It was commissioned by March 1995.

- Six new outlets for BEST at 33 KV from Carnac receiving stationswerealso commissioned during the year.

- Approval from the state and the Central Governments were alsoreceived for the installation of a gas based 180 MW combined cycleplant at Trombay at a cost of Rs 212 crores to supplement thegenerating capacity in the state.

- The Companies are also associated with Siemens in the erection andcommissioning of the mechanical and electrical equipment for the 4 x130 MW gas turbines and 2 x 150 MW steam turbines at NTPC's combinedcycle power plant at Dadri in Uttar Pradesh.

- 5,875 forfeited equity shares reissued. (Prem. Rs 200).


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1990

- The Thermal Unit was shut down for 9 weeks for boiler

re-certification and overhaul and reblading of four stages of thestationary side of the IP turbine.

- The second 500 MW unit 6 at Trombay was trial synchronised withthegrid on 23rd March.

- The Company took up two major generation projects, viz., 150MWPumpedStorage Unit at Bhira and a gas-based 180 MW Combined Cycle Plant atTrombay Thermal Power Station in case of a major system disturbanceandsupply power to essential consumers, viz., Railways, BMC, BARC, etc.

- The Company also proposed to undertake overhauling and maintenanceworks on gas turbines at Uran in association with Kraftwerke Union,W.Germany.

- As per the agreement signed in October, the Company was to seekclearance for World Bank/IFC loan amounting $ 158 million by 30thSeptember, 1991.

1991

- The generation at the Trombay thermal station suffered due toshortage of fuel particularly during the months October to December.

- With a view to upgrade and extend the life of plants, the Companyproposed retrofitting of 150 MW Trombay Unit-4 to ensure efficientoperation and utilisation of generators of Units 1, 2, and 3 aselectrically driven synchronous condensors for power factorimprovement.

- A new 110 KV substation comprising 2 x 90 MVA, 110/33 KV powertransformers along with 33 KV indoor SF6 switchgear and supervisorycontrol and data acquisition system was commissioned at Versova.

- A new switching station comprising 3 x 250 MVA, 220/110/33 KVautotransformers, space saving 245 KV gas insulated switchgear andsupervisory control and data acquisition system was established.

- The Company undertook the projects like: (i) Erection of fourthgasturbine unit at Dadri near Delhi (ii) KWU/Siemens awarded to thecompanies, (iii) Undertook eletrical and I & C equipmentinstallation


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works.

1992

- A modern 22 KV indoor SF6 switchgear was installed at Salsette andalso a 60 MVAR new capacitor banks were installed at Versova andMalad.Apart from these, replacement of 110 KV oil circuit breakers bymodernSF6 breakers at Kalyan, Ambernath, Vikhroli and Salsette receivingstations and extension of fibre optic communication network werealsocarried out.

- During April-May, the Company offered 20,51,555-14% securedredeemable partly convertible debentures of Rs 500 each on rightsbasisin the proportion 1 deb.: 1 equity shares held (all were taken up).Additional 3,07,733 debentures were allotted to retainoversubscription.

- Another 1,02,578 debentures were issued to the employees on anequitable basis (all were taken up). Additional 15,387 debentureswereallotted to retain oversubscription.

- In addition 3,50,000 debentures were reserved for allotment toTataSons Ltd., Tata Industries Ltd., Investment Corporation of India

Ltd.,and Ewart Investments Ltd.

- Part-A of Rs 300 of the face value of each debenture was to beconverted into one equity share of Rs 100 each at a premium of Rs200per share.

- Part-B of Rs 200 of the face value of each debentures was to beredeemed on the expiry of 10 years from the date of allotment withanoption to the Board to redeem the same at any time after 7 yearsfromthe date of allotment of debentures.

- 28,27,253 No. of equity shares allotted on part conversion of 14%debs. (including 3,084 shares allotted after 1st April, 1993).

1993

- The Company proposed to install 2 x 1.25 MW mini hydro generatingunits on the existing Bhivpuri tailrace channel by utilisingavailable


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tailrace releases from existing power station.

- It was proposed to establish a 110 KV sub-station at Bandra-Kurla

complex to meet power requirement of that area and also to establisha110 KV power supply point at Mankhurd to meet additional loadrequirement of Central Railway.

- The first 120 MW steam turbine at Uran was synchronized and thesecond unit was scheduled for synchronization in August 1994.

- 48,76,443 Rights equity shares allotted (Prem. Rs 300; Prop.1:1).Another 5,28,165 shares alloted as per GDR issue. 58,345 shares ofright issue kept in abeyance.

1994

- The Trombay Unit-7 steam turbine generator was synchronised on 9thDecember, which generated 650 MUS with PLF of 61.9%.

- It was proposed to establish a 110 KV substation at Bandra-Kuralacomplex to meet the power requirement in S. Mumbai.

- During the year, the Company undertook the work of strengtheningdamsas per designs codes in respect of earthquakes. The Government of

Maharashtra had accorded its permission for rebuilding a dam atSomwadi.

- The set No. 5 at Bhira was rehabilitated by changing the core &coilsand was recommissioned along with a new more efficient 30 MVAgeneratortransformer.

- At Vikhroli, an additional 90 MVA, 110/22 KV power transformer wastaken into service to increase the reliability of power supply.Also,a new 25 MVA, 110/66 KV transformer at Parel was commissioned.

- A MOU was signed between TEC and the Tennesse Valley Authority ofUSAfor renovation and modernisation of power plants.

- The Second phase of the Trombay combined cycle power project viz.60MW steam turbine and associated equipment was commissioned. Workforcommissioning of the unit as pumped storage generation unit was


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commissioned.

- During February, the Company issued 91,549 Global Depository

Shares

representing 5 ordinary shares of Tata Power Co. Ltd., threeordinaryshares of Andhra Valley Power Supply Co. Ltd. and two ordinarysharesof the Tata Hydro Electric Power Supply Co. Ltd. Accordingly5,28,165shares, 3,16,899 shares and 2,11,266 shares were allotted to TataPowerCo. Ltd., Andhra Valley Power Supply Co. Ltd. and Tata HydroElectricPower Supply Co. Ltd. respectively.

- Equity shares subdivided. 77,70,000 No. of equity shares allottedonprivate placement basis to associate companies.

1995

- The 150 MW Pumped storage unit was commissioned in the synchronouscondenser mode. The Company undertook the work of modernisation andrenovation of old 12 MW hydro units at Bhivpuri and KhopoliGeneratingStations.

- The old core laminations of Bhira Generator No. 2 and Khopoligenerator No.2 were replaced by new low loss laminations to reducecorebusiness.

- The Company provided services to Tata Projects Ltd., for erectionandcommissioning of ten new 33 KV sub-station and modification offifteenexisting 33 KV sub-stations in Abu Dhabi and Al Ain area.

- 1400 shares kept in abeyance issued.

- 56,79,588 No. of equity shares allotted at a prem. as fully paidpursuant to a contract without payment by reserved in case.

1996

- The 150 MW pumped storage unit at Bhira was commissioned. AtBhiragenerating station five 25 MW units were refurbished by installationofnew modern turbine runners of higher efficiency.


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- The Company strengthened the existing network by installing new22KVindoor switchgear at Vikhroli sub-station, by replacing old oil/airblast circuit brackers by modern 110 KV breakers at varioussub-stations, by retrofitting and uprating of existing 22 KV ABCBsby22/33 KV modern SF6 breakers, by installation of new numerical typerelays on transmission lines and by installation of new microprocessorbased metering system by replacing existing electro-mechanical typemeters.

- The Company installed a major 220 KV underground transmissionsystemfrom Dharavi receiving station to Backbay, South Mumbai. TheCompanyalso undertook to implement a 22 KV receiving station atBandra-KurlaComplex to provide power supply to various commercial consumers in

thearea. To improve the continuous and reliable power supply, theCompanyproposed to set up 220 KV switching stations at Parel and Mahalaxmi.

- During the year, the Government of Karanataka awarded theMulti-fuelbased 80 MW power project to the Company.

- 3.62.5 MW thermal generating units at Trombay were converted intosynchronous condensers with a 1.2 MW static frequency converter inthestarting system. Also a 36 KV switchgear with vacuum circuitbreakerswere commissioned thereby introducing vacuum breaker technology inmedium voltage distribution TEC system.

1997

- The thermal Units at Trombay operated at an on-line availabilityofabout 74% and utilization of about 64.3%.

- In order to improve the efficiency at Bhivpuri Generating Station6x12 MW hydro units were replaced by 3x24 MW units.

- The Tata Group is all set to activate a multi-pronged book entry

operation which will atonce secure a higher stake for Tisco in TataPower even while improving the former's cash flows.

1998

- The companies are at various stages of their project proposals tosetup captive power units would increase the companies generationcapacityby approximately 500 MW.


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- The company entered into an Joint Venture Agreement with Total Gasand Power India (a wholly owned subsidiayr of Total) for

establishmentof an LNG Terminal at Trombay.

1999

- CRISIL and ICRA have both awarded the highest rating AAA and LAAArespectively for Debentures upto Rs. 500 crores.

- Trombay Thermal achieved a thermal generation of 7670 MillionUnits(MUs) in the year 1998-99 as compared to 7593 MUs in the previousyear.

- The Companies have acquired a generating station consisting of a37.5MW Unit at Wadi, Karnataka, in January.

- The Company has undertaken to give a sharper focus to growth andenhancement of shareholder value.

- The Companies have already set up the requisite facilities fordematerialisation of shares, in accordance with the provisions oftheDepositories Act, 1996, and several members particularly

institutionalinvestors, have availed of these facilities to hold and trade in theshares in electronic form.

- The Power Purchase Agreement for 81.3 MW Diesel-based Power PlantatBelgaum, Karnataka was signed with Karnataka Electricity Board.

2000

- The Tata group is set to merge the three Tata Electric Companies -Tata Power, Andhra Valley Power Supply Company, and TataHydro-ElectricPower Supply.

- Reliance Infocom, BSES TeleCom, Tata Power Company Ltd. andInternetservices provider Caltiger are gearing up to offer internettelephonyservices, the moment the government makes it legal.

- Tata Power Ltd is in talks to acquire as many as four independentpower projects most of which are owned by international power


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majors,in Madhyra Pradesh, Karnataka and Tamil Nadu.

- Tata Power Company has obtained `A' licence as Internet serviceprovider which enables it to operate throughout the country.

- Mr. A.M. Sahni has been appointed as Wholetime Director of thecompany with effect from November 27.

2001

- The company which is fast emerging as a key company in the Tatagroup, may hive off its telecommunications business into a separatecompany.

- Tata Power Company Ltd on September 3rd, decided to sell its stakeconsisting of 45 lakh shares in Tata Liebert Ltd (TLL), at Rs 170pershare, to Emerson Electric (Mauritius) Ltd.

- The Tata Group has steadily hiked its holding in Tata Power to32.36per cent as on September 30, from 31 per cent on April 1 and lessthan25 per cent on April 1, 2000, when group companies Andhra Valley andTata Hydro were merged into Tata Power.

2002 -Signs an agreement with Power Grid Corporation of India Ltd. for'Tala Transmission Line'

-Tata Group declared the successful bidder in the disinvestmentprocess initiated by the Govt. of India in VSNL

-120 MW Unit 3 at the Jojobera Power Plant of the Company atJamshedpur commences commercial production

-Tata Power acquires North North-West Delhi Distribution Co. Ltd.(Discom-III), a distribution company belonging to the Delhi VidyutBoard (DVB), which supplies power to north and north-western Delhi

-Delhi government signs share-holding agreement with Tata Power forpower distribution in the captal

-Bags Good Corporate Citizen award by Bombay Chamber of Commerce forthe year 2001-02

-Mr. Firdose A Vandrevala appointed as Managing Director of thecompany


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-BSES files suit against Tata Power Company with MaharashtraElectricity Regulatory Commission, saying that it is poaching on its

consumer base in violation of its terms of license

2003

-Signs subscription agreement with Power Trading Corporation of IndiaLtd. to acquire upto 1,00,00,000 equity shares of Rs 10 eachaggregating to Rs 100 million in one or more tranches

-Submits its expression of interest (EoI) to participate in TataSons' share buyback programme

-Ties up with the UK-based energy major British Petroleum to jointlyestimate the 2,184 mw Dabhol power project

-Managing Director Mr. Firdose A Vandrevala elected as chairman ofthe Confederation of Indian Industry (CII) western region

-Awarded the contract for supply and construction of 180 KM long 400KV Double Circuit Transmission Line from Palandur to Chandrapur(Maharashtra) By Power Grid Corporation of India Ltd.

-Enforces integrated automated system module developed by SAP

-Power Grid Corporation of India Ltd (PGCIL) enters into a jointventure with Tata Power to develop a 1,200 km long transmission line

-Maharashtra Electricity Regulatory Commission (MERC) ropes in TataPower Company (TPC) for the formulation of draft rules andregulations stipulated under the newly notified Electricity Act 2003

-Enters into Shareholders Agreement with Power Grid Corporation ofIndia Ltd. and Tala-Delhi Transmission Ltd. for implementation of the400 KV Tala Transmission Line Project

-Supreme Court in an important ruling seeks Tata Power Company (TPC)to pay around 20% towards arrears of standby charges of Rs 4110-crduring the period of April 1999 and June 2003

-Tata Power infuses Rs 352 crore in the group's telecom businesses,Rs 25 crore and Rs 115 crore in Tata Teleservices, the group's basictelephony flagship, and in Tata Teleservices (Maharashtra),respectively

-Approaches Bombay High Court against an order issued by MaharashtraElectricity Regulatory Commission (MERC), which restricts the companyto provide power to retail consumers


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-Members approve delisting from 3 stock exchanges (Delhi, Pune &Ahmedabad)

-Bags .9 million order brom Bangladesh power grid project

-Power Grid Corporation of India Ltd awards contract for supply andconstruction of the 400 kV Vishnuprayag -Muzaffarnagar Double CircuitTransmission line totalling 100 route KM in the state of Uttaranchal

-Jointly develop the 330 MW Srinagar Hydro Power Project inUttaranchal with Synergies Hydro Asia (SHA), at an estimated cost ofRs 16500 million

-Maharashtra Govt. took back its nominee from the company board

-Started construction of its merchant power plant under the new`Electricity Act 2003', at Jojobera in Jharkhand.

2003-The company entered into a Joint Venture Agreement with Power GridCorporation of India Ltd. to set up a 1200 km power transmission linefrom Siliguri in West Bengal to Mandola in Uttar Pradesh.

In addition to the 330 MW Shrinagar project and 120 MW project atJojobera, the company also has plans to set up new power projects.

-Company has appointed Mr A J Engineer as the Additional Director ofthe Company wef November 19, 2003.

-TPC has tendered an unconditional apology to Maharashtra ElectricityRegulatory Commission (MERC) for supplying power below 1,000 kVa to anindustrial estate from the Mumbai suburbs.

-Duncans North Hydro Power becomes a fully owned subsidiary of TataPower

-Tata Power buys out 100-pc stake in Duncans North Hydro PowerCompany

-Tata Power Company Ltd has informed that the Ahmedabad StockExchange (ASE) has informed the company that wef January 15, 2004 thecompanies securities will stand delisted from ASE.

2003

-Tata Power Co, Reliance Energy Ltd poised to acquire Dhabol

2004

-Tata Power acquires 100% equity stake of Tata Power Trading Co. Pvt.Ltd.


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setting up of a 1000 MW coal fired mega power plant in the State.

- Tata Power Company Ltd has appointed Mr. Anil K Sardana as

Executive Director of the Company with effect from March 01, 2007.

-Tata Power Company Ltd has informed that the State Government hasnominated Mr. Rahul Asthana as the State Government Director on theBoard of the Company in place of Mr. Jayant S Kawale. Mr. Asthana hasbeen appointed as the State Government Director effective March 30,2007.

-Tata Power Company Ltd on has announced the acquisition of theCoastal Gujarat Power Ltd, a Special Purpose Vehicle (SPV) formed forMundra Ultra Mega Power Project (UMPP). A formal execution of thedocuments took place between Power Finance Corporation (PFC) and TataPower, under the auspices of Ministry of Power, Delhi.

- Tata Power has roped in Korea-based Doosan Heavy Industries andConstruction Ltd for supercritical boilers for its Mundra ultra megapower project.

-Tata Power Company Ltd has appointed Mr. Anil Kumar Sardana as an

Additional Director of the Company effective August 09, 2007.

Mr Ratan Naval Tata (Chairman)

Mr. Tata has been on the Board since 1989. Mr Tata holds a B.Sc. (Architecture) degree with StructuralEngineering from Cornell University, USA and has completed the Advanced Management Programme atHarvard University, USA. He is an eminent industrialist with wide business experience across a variety of industries. He joined the Tata group in 1962 and he is the Chairman of Tata Sons Ltd., the apex body of theTata group and other major Tata Companies.

Mr A K Basu

Mr A K Basu is the former Secretary Steel, Secretary Power and Chairman of Central ElectricityRegulatory Commission. Mr Basu was a key member in the formulation and clearance of the Electricity Act,2003, both as Secretary (Power) and later as Chairman (CERC), and has a very deep knowledge of the

power business in India. Mr Basu is also on the Boards of two Tata Group Companies Tata MetaliksLimited and The Tinplate Company Of India Limited and is also Member (Industry and Infrastructure) of theWest Bengal Planning Commission.

Mr Ramabadran Gopalakrishnan

Mr Gopalakrishnan is a graduate in Physics from Calcutta University and an Engineer from IIT, Kharagpur.He is the Executive Director of Tata Sons Ltd., Chairman of Rallis India Ltd., Vice Chairman of TataChemicals Ltd. and a Director of several other companies like Tata Motors Ltd., ICI India Ltd., Castrol India


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Ltd. etc. Prior to joining the Tata Group in 1998, he was with Hindustan Lever for 31 years, where he rosefrom being a Management Trainee to being Vice Chairman of Hindustan Lever Limited.

Dr Homiar Sorabji Vachha

Dr Vachha has a post-graduate degree and a doctorate in Economics from the University of Bombay (Goldmedallist in Industrial Economics). He was the General Manager of ICICI Limited in a career spanning over 25 years. He was in charge of Market Research and Industry Studies Department as also in charge of theEconomics Department. He was the ICICI nominee director on the Board of several large companies. Hewas appointed as Nominee Director on the Board of the erstwhile The Andhra Valley Power SupplyCompany Limited in 1993. On ceasing to be such nominee director, he was re-appointed on the Board of that Company and continued as Director till its amalgamation with the Company in 2000. He has beensubsequently appointed on the Board of the Company in 2001. He is also on the board of other companies.

Mr Ram Krishna Misra

Mr Misra has been on the Board since 2003. He was the Zonal Manager of Life Insurance Corporation of India (LIC), Eastern Zone (since retired), when he was appointed as the nominee director on the Board byLIC. He has considerable business experience.

Mr Adi Jehangir Engineer

Mr Engineer graduated as a B.E. (Civil) from Pune University. He is also a Chartered Engineer (India), and aFellow of the Institution of Engineers (India). He has a career spanning 47 years occupying key positions inareas of engineering, project planning and execution of multi-disciplinary activities. He has been associatedwith the power sector for the last 23 years and has been with the Company since 1984, having joined asProject Manager (Civil) and subsequently promoted to the position of a Whole-time Director of the Company.In August 2000, he was appointed as the Managing Director from which position he retired on 31 st August2002. Prior to his joining Tata Electric Companies, he served in several senior positions with the well-knownmultinational group of Imperial Chemical Industries. He was re-appointed as Director on the Board of theCompany effective 19 th November 2003.

Mr Nawshir Hoshang Mirza

Mr Mirza is a Fellow of the Institute of Chartered Accountants of India and was a Senior Partner of Ernst &Young. He is an Advisor to Jardine Matheson & Co. Ltd., Hong Kong. He is an independent Director on theBoards of several companies.

Mr Deepak M Satwalekar

Mr Satwalekar is the Managing Director and CEO of HDFC Standard Life Insurance Company Limited sinceNovember 2000 and prior to this, he was the Managing Director of HDFC Limited from 1993 - 2000. Mr


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Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombayand a Masters Degree in Business Administration from The American University, Washington DC. He hasconsiderable experience in the fields of finance, infrastructure and corporate governance.

Dr Ramchandra H Patil

Dr Patil is presently the Chairman of Clearing Corporation of India and an Independent Director on theBoard of Axis Bank Limited. Dr Patil has a Masters Degree in Economics and also a Doctorate inInternational Economics. He was the first Managing Director of National Stock Exchange of India Limitedand has also worked for 7 years with Reserve Bank of India and more than 18 years with IndustrialDevelopment Bank of India (now IDBI Bank Limited).

Mr Piyush G Mankad (IAS Retired)

Mr Mankad is a retired civil servant with a distinguished career of over 40 years in the prestigious IndianAdministration Service, which he joined in 1964, topping his batch. He was educated at Delhi University andlater at Cambridge, UK, where he obtained a Post Graduate Diploma in Development Studies, withdistinction. Some of the important positions that he has held include Counsellor (Economic) in the IndianEmbassy, Tokyo; Controller of Capital Issues, Ministry of Finance; Finance Secretary, Government of Indiaand Executive Director for India and four other countries and Board Member, Asian Development Bank,Manila, which was his last assignment till July 2004. He is a member of the Board of several companiesincluding Tata International Limited, Tata Elxsi Limited, Kingfisher Airlines Limited and Max India Limited.

Mr Prasad Raghava Menon

Mr Menon is a Chemical Engineer from IIT, Kharagpur with 36 years of professional experience in theindustry. Prior to joining the Company, he was the Managing Director of Tata Chemicals Limited. He hasalso had long service with the ICI group of companies in India and with Nagarjuna Fertilisers and ChemicalsLimited in various senior positions. He is also on the Board of several Tata group companies.

Mr Sowmyan Ramakrishnan

Mr Ramakrishnan holds a B.Tech degree from IIT Madras and also has a Management Degree from IIM,Ahmedabad. He joined the Tata Administrative Services in 1972 and during his long tenure, handled amultitude of national as well as international projects. He is on the Board of several group companies.

Mr Sankaranarayanan Padmanabhan

Mr Padmanabhan is a gold medallist in Electronics and Communication Engineering from PSG College of Technology, Coimbatore, Tamil Nadu as well as a Glaxo gold medallist for the Marketing Stream from theIndian Institute of Management, Bangalore. Prior to joining the Company, he was the Executive Director andHead Global Human Resources of Tata Consultancy Services Limited. He has rich experience in large-scaleproject build-up and delivery, and is highly acclaimed for global sourcing and value creation in operationalefficiencies.


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Mr Banmali Agrawala

Mr Agrawala is a Mechanical Engineer from Manipal Institute of Technology. Prior to joining the Company,he was the Managing Director of Wartsila India Limited. Prior to Wartsila, he was with Bajaj Auto Limited inResearch and Development division. He has a deep understanding of the Indian power industry as well asthe global renewables business. He has 23 years of professional experience in the industry and has heldseveral positions in industry bodies.

Tata Power - Sensex stocks 29

Tata Power:

Key data:

Industry: Electricity generation, Transmission and distributionNo of shares: 221,387,734

Face value: Rs 10BSE code: 500400NSE code: TATAPOWER Key people: Ratan TATA

Share holding pattern (as on 30th Sep 2008):

Promoters: 33.30%Foreign & Institutional investors: 47.19%Public & others: 19.51%

Tata Power Company Limited is Indias largest private sector electricity generatingcompany with an installed generation capacity of over 2300 MW. It started in 1911. Its power generation comes from thermal, hydro, solar and wind.The Company has also executed several power projects in the Middle East, Africa andSouth East Asia. TATA power entered into joint venture with Power grid for Talatransmission project


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Phone :Fax :Email : N.A.Internet : N.A.

Factory/plant Hydro Generating Station P O Bhivpuri Camp Taluka Karjat,Raigad District - 410201Maharashtra - India

Phone :Fax :Email : N.A.Internet : N.A.

Factory/plant Hydro Generating Station : Khopoli P O Khopoli Power House Taluka Khalapur Raigad District - 410204Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Divisonal Office Electronics Division : 42/43 Electronic City Electronic City Post Office Hosur RoadBangalore - 561229Karnataka - IndiaPhone :

Fax :Email : N.A.Internet : N.A.

Development Office Consumer Development Group Technopolis Knowledge Park Nelco Compound Mahakali CavesRoadMumbai - 400093Maharashtra - IndiaPhone : 56688351,56688355,56688354,56688353Fax : 56688363Email : N.A.Internet : N.A.

Development Office The Tata Power Company Limited Strategy and Business Development Department SecondFloor, GIS Building,Mumbai - 400009Maharashtra - IndiaPhone : 56658627Fax : 56658626Email : N.A.Internet : N.A.

Development Office Tata Power Broadband Division 4th Floor, Tata Vidyut Karyalaya Murzban RoadMumbai - 400001Maharashtra - IndiaPhone : 56658731/32/33Fax : 56658787Email : N.A.Internet : N.A.

Factory/plant Thermal Power Stations Trombay Generating Station, Chembur, Mahul RoadMumbai - 400074Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Factory/plant Village Shahjahanpur &Pimpalgaon Taluka Parner Ahmednagar District -Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.


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Factory/plant Village Khandke Taluka & Dist.Ahmednagar District -Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Factory/plant Taluka SakriDhulia -Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Factory/plant Shil Road, Netivli Kalyan Dist. ThaneThane District - 421301Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Registered Office Bombay House, 24, Homi Mody Street, Fort,

Mumbai - 400001Maharashtra - IndiaPhone : 66658282Fax : 66658801Email : [email protected] : N.A.

Factory/plant Transmission Division Shil Road, Netivli Kalyan Dist. ThaneThane District - 421301Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

Factory/plant Distribution Division Senapati Bapat Marg Lower ParelMumbai - 400013Maharashtra - IndiaPhone :Fax :Email : N.A.Internet : N.A.

For Financial Year 2008

Greentech Safety Gold Award 2008 in Thermal Power sector for Outstanding achievement

in Safety Management awarded to Trombay Thermal Power Station for the 5th consecutive

year. April 2008.
mailto:[email protected]:[email protected]


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Suraksha Puraskar by the National Safety Council of India for Jojobera , in January 2008 for

developing and implementing very effective Safety Management Systems and Procedures

during the assessment period of three years 2003-05. January 2008.

Silver Shield awarded for Bhira and Bhira Pump Storage Scheme (6X25 + 1 X 150 MW),

adjudged the second best performing station in the country by the Central Electricity Authority,

India. March 2008.

Awarded the Quality Circles AWARD 2007 at the National Convention on Quality Circles under

the aegis of Quality Circle Forum of India.

Dahanukar Award by the Indian Association of Occupational Health for HIV/AIDS intervention at

the workplace.

NASSCOM Best IT User Award 2006 in the Energy and Utility sector for providing value added

services to consumers through Customer Portal System via Internet website.

Amity HR Excellence Award for the year 2007 for effective people management practices and HR systems

Directors Report

The Directors are pleased to present their Eighty-ninth Annual Reporton the business and operations of the Company and the statements ofaccount for the year ended 31st March, 2008.

1. FINANCIAL RESULTS

FY 2008 FY 2007

(Rupees (Rupees

crores) crores)

(a) Net Sales / Income from Other Operations 5,915.91 4,715.32

(b) Operating Expenditure 4,979.27 3,991.88

(c) Operating Profit 936.64 723.44

(d) Add: Other Income. 465.84 343.99


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(e) Less: Interest and Finance charges. 141.86 189.50

(f) Profit before Depreciation and Tax 1,260.62 877.93

(g) Less: Depreciation 290.50 291.92

(h) Profit before tax 970.12 586.01

(i) Less/(Add): Provision for taxes(including provision fordeferred tax and fringe benefit tax). 100.22 (110.79)

(j) Net Profit after tax 869.90 696.80

(k) Less: Statutory appropriations 58.59 22.83

(l) Distributable Profits. 811.31 673.97

(m) Add: Balance brought forward fromthe previous year 1,963.66 1,666.15

(n) Balance 2,774.97 2,340.12

which the Directors have appropriatedas under to :

(i) Proposed Dividend 231.98 188.22 (ii) Dividend 9.40 -

(iii) Additional Income-tax on Dividend 26.95 31.99

(iv) Debenture Redemption Reserve 51.42 6.25

(v) General Reserve 350.00 150.00

TOTAL. 669.75 376.46

Leaving a balance of 2,105.22 1,963.66to be carried forward

2. FINANCIAL HIGHLIGHTS

During the year, the Company reported its highest ever Profit after Taxof Rs. 869.90 crores, as against Rs. 696.80 crores for the previousyear, a growth of 24.8%. The Operating Revenue is also higher at Rs.5,915.51 crores, as against Rs. 4,715.32 crores after certain taxadjustments, a growth of 25.5%.


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During the previous year, the Company had reversed tax provisions

aggregating Rs. 181.74 crores (current year Rs. 28.61 crores)pertaining to the Mumbai Licence Area, which according to regulation,has been treated as a rebate. Without this adjustment, the OperatingRevenue is higher by 21.39%, mainly owing to higher volumes soldcoupled with the new Tariff approved by the Regulator in Mumbai LicenceArea for FY 08. Similarly, the Operating Profit went up by 6.64% due tooperational efficiencies and higher volume of business.

The other income of Rs. 465.84 crores (previous year Rs. 343.99 crores)is higher predominantly on account of higher gain on sale of long terminvestments during the year.

During the year, the Equity Share Capital of the Company increased byRs. 22.80 crores on account of the preferential issue of Equity Sharesto Tata Sons Limited (Tata Sons) and the conversion of the ForeignCurrency Convertible Bonds.

Earnings per Share (Basic) showed an increase of 13.6% to Rs. 38.64 asagainst Rs. 34.02 in the previous year.

The Consolidated Revenue at Rs. 10,890.86 crores grew by 68.18% and theProfit After tax at Rs. 1,055.07 crores grew by 38.90% as against Rs.6,475.64 and Rs. 759.61 crores respectively, for the previous year.The increase in Consolidated Revenue is primarily on account ofcontribution from the overseas Coal companies where the Companyacquired a 30% stake in June, 2007.

Competition

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Asse

NTPC 194.95 160,745.33 44,126.08 8,201.30 81,202.60Power Grid Corp 110.85 46,655.01 6,675.85 1,690.61 36,017.65Reliance Power 173.60 41,608. 80 -- 248.90 13,542.6Reliance Infra 1,264.50 29,910.48 9,868.61 1,066.54 16,696.00Tata Power 1,163.35 25,759.41 7,236.23 922.20 11,136.18Neyveli Lignite 126.10 21,155.92 3,354.91 821.09 11,830.96Torrent Power 169.20 7,993.83 4,424.96 405.09 5,427.01KSK Energy Vent 221.50 7,666.22 131.77 103.62 -GVK Power 41.80 5,876.45 26.14 21.00 1,718.23JaiprakashHydro 93.90 4,610.50 317.91 142.85 1,930.61


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Comparison with Competitors


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Balance Sheet ------------------- in Rs. Cr. -------------------

Tata Power NTPC Power Grid Corp Reliance Power Reliance Infra

Mar '08 Mar '08 Mar '08 Mar '08 Mar '08

Sources Of Funds

Total Share Capital 220.72 8,245.50 4,208.84 2,259.95 235.62

Equity Share Capital 220.72 8,245.50 4,208.84 2,259.95 235.62

Share Application Money 60.99 0.00 0.00 0.00 783.49

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 7,771.12 44,393.10 9,545.33 11,282.72 10,024.16

Revaluation Reserves 0.00 0.00 0.00 0.00 643.69

Networth 8,052.83 52,638.60 13,754.17 13,542.67 11,686.96

Secured Loans 2,331.09 8,688.10 17,552.13 0.00 1,125.00

Unsecured Loans 752.26 19,875.90 4,711.35 0.00 3,884.04

Total Debt 3,083.35 28,564.00 22,263.48 0.00 5,009.04

Total Liabilities 11,136.18 81,202.60 36,017.65 13,542.67 16,696.00

Tata Power NTPC Power Grid Corp Reliance Power Reliance Infra

Mar '08 Mar '08 Mar '08 Mar '08 Mar '08

Application Of Funds

Gross Block 6,481.99 53,368.00 35,417.14 67.41 6,396.14

Less: Accum. Depreciation 3,476.50 27,274.30 8,061.94 1.06 3,328.56

Net Block 3,005.49 26,093.70 27,355.20 66.35 3,067.58

Capital Work in Progress 1,681.74 22,478.30 8,758.09 61.14 568.92

Investments 4,430.00 15,267.20 1,736.22 8,489.75 7,664.36

Inventories 473.61 2,675.70 248.22 0.00 300.29

Sundry Debtors 1,414.52 2,982.70 1,100.50 0.00 1,351.41

Cash and Bank Balance 28.70 473.00 12.50 361.11 86.65

Total Current Assets 1,916.83 6,131.40 1,361.22 361.11 1,738.35

Loans and Advances 2,039.90 9,936.20 2,185.21 4,988.93 7,334.50

Fixed Deposits 0.00 14,460.20 1,853.09 0.05 1.00

Total CA, Loans & Advances 3,956.73 30,527.80 5,399.52 5,350.09 9,073.85

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 1,354.03 5,803.80 5,885.98 423.86 2,900.28

Provisions 585.44 7,360.60 1,352.59 0.79 778.43

Total CL & Provisions 1,939.47 13,164.40 7,238.57 424.65 3,678.71

Net Current Assets 2,017.26 17,363.40 -1,839.05 4,925.44 5,395.14

Miscellaneous Expenses 1.69 0.00 7.19 0.00 0.00

Total Assets 11,136.18 81,202.60 36,017.65 13,542.68 16,696.00


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Scrip Code:500400Company Name:TATA POWER

For the period:From year 2001 to year 2004

YEAROpen

(Rs.)High (Rs.)

Low

(Rs.)

Close

(Rs.)

No. of

Shares

No. of

TradesNet T/O (Rs.)

* Range (Rs.)

H - L C - O

2001 120.10 148.75 90.00 119.55 18994966 212086 2,313,965,345.00 58.75 -0.55

2002 121.00 138.25 92.00 111.70 43615217 390838 5,144,718,810.00 46.25 -9.30

2003 112.00 318.50 106.10 313.90 133746851 995280 26,889,726,112.00 212.40 201.90

2004 315.80 428.00 212.60 313.20 238145738 2370370 75,955,934,816.00 215.40 -2.60

2005 395.00 499.00 325.00 435.75 55049473 617267 22,228,624,093.00 174.00 40.75

2006 435.50 621.45 390.00 559.85 31198435 440664 16,570,558,620.00 231.45 124.35

2007 559.05 1,475.00 483.00 1,470.95 46702840 908314 44,138,927,355.00 992.00 911.90

Balance Sheet

Particulars 2004 2005 2006 2007 2008Assets

Fixed AssetsGross block 5534.7 5465.84 5924.74 6229.71 6481.99

less:accmulated depreciation 2364.36 2657.37 2921.72 3199.4 3476.5

Net block 3170.34 2808.47 3003.03 3030.31 3005.49Capital work-in-progress 306.39 438.19 211.81 781.05 1681.74

Investments 2728.83 3502.92 3412.17 3570.15 44303035.22 3941.11 3623.98 4351.2 6111.74

Total fixedassets 6205.56 6749.58 6627 7381.51 9117.23


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Current assetsCurrent assets,loans& advances 2005.23 2587.88 3035.72 4105.04 3956.73

8210.79 9337.73 9662.72 11486.55 13073.96miscellaneous expenses not written 15.61 22.71 15.46 6.17 1.69

Total assets 8226.4 9360.17 9678.18 11492.72 13075.65liabilities

Share holders fund equity share capital 197.92 197.92 197.92 197.92 220.72

share application money 0 0 0 0 60.99reserves& surplus 4810.61 4896.74 5315.91 5793.03 7771.12

Total shareholders 5008.53 5094.66 5513.83 5990.95 8052.82

long term loanssecured loans 721.73 1059.07 946 1354.3 2331.09unsecured loans 1041.5 1842.75 1850.81 2321.22 725.26

Total dets 1762.23 2901.82 2796.81 3675.52 3083.35current liabilities

current liabilities& provisions 1454.64 1363.69 1367.54 1826.25 1939.47

Total liabilities 822.4 9360.17 9678.18 11492.72 1939.47

Profit & LossAccount

particulars 2005 2006 2007 2008Income 3918.85 4553.23 4918.53 5909.6

less:

cost of goods sold Material consumed 2474.83 3198.23 3456.54 4300.69Manfacturing expenses 171.66 1670.45 187.92 241.47

2646.49 3365.68 3644.46 4542.16Gross Profit 1272.36 1187.55 1274.07 1367.44

less:Operating Expenes

Selling expenes 61.27 54.48 255.39 35.18


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Adminstrative expenses 171.5 124.13 125.39 179.04Depreciation 359.62 278.34 291.92 290.5

592.39 456.95 673.26 504.72Operating profit 679.97 730.6 600.81 862.72

add:Non operating IncomeOther non cash adjustments 0 0 178.17 32.13Expenses capitalised 20.3 5.38 5.36 2.22Other recurring income 143.17 170.49 335.89 151.4Non recurring items 265.3 175.18 39.88 380.3

428.77 351.05 559.3 566.05PBIT 1108.74 1081.65 1160.11 1428.77

less:Non Operating expenses

Personnel expenses 155.4 173.68 196.35 249.69Financial expenses 179.75 152.62 187.11 171.82Other write offs 18.2 9.82 9.82 5.01

Other non cash adjustments 33.92 4.41 0 0387.27 340.53 393.38 426.52PBT 721.47 741.12 766.73 1002.52

less:Tax Tax charges 170.11 130.68 70.03 132.25

170.11 130.68 70.03 132.25Net profit 551.36 610.44 696.8 869.9

BalanceSheet

ComparativeParticulars 2004 2005 inc\dec per%

Assets

Fixed AssetsGross block 5534.7 5465.84 -68.86 -1.24%

less:accmulated depreciation 2364.36 2657.37 213.021 9.00%

Net block 3170.34 2808.47 -361.87 -11.41%Capital work-in- 306.39 438.19 131.85 4303.00%


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progressInvestments 2728.83 3502.92 774.09 28.36%

3035.22 3941.11 905.89 29.84%Total fixed

assets 6205.56 6749.58 544.02 8.76%Current assetsCurrent assets,loans&

advances 2005.23 2587.88 582.65 29.05%8210.79 9337.73 1126.94 13.72%

miscellaneous expenses notwritten 15.61 22.71 7.1 45.48%

Total assets 8226.4 9360.17 1133.77 1.38%

liabilities Share holders fund

equity share capital 197.92 197.92 0 0share application money 0 0 0 0

reserves& surplus 4810.61 4896.74 86.13 1.79%Total share

holders 5008.53 5094.66 86.13 1.71%long term loans

secured loans 721.73 1059.07 337.34 46.75%unsecured loans 1041.5 1842.75 801.25 76.93%

Total dets 1762.23 2901.82 1139.59 64.66%current liabilities

current liabilities&provisions 1454.64 1363.69 -90.95 -6.25%

Total liabilities 822.4 9360.17 1133.77 13.78%

ANALYSIS FOR BALANCE SHEET:


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There is an decrease in fixed assets -1.24% bywhen compared with the years 2004 and 2005. The accumulated depreciation is increased

by 9.0% and the net block is decreased by -11.41% .There is a great increase in capitalwork in progress by 43.03% .But the investments have been increased by 28.36%. Thecurrent assets are increased by 29.04% and the miscellaneous expenses (prepaid

expenses) are increased by 45.48%.There is an increase in overall total assets by 1.38%when compared to previous year.

If we look into the owners funds there is an equal in equity share capital andreserves and surplus increased by 1.79%. The total share holders capital is increased to1.71%. The total debts have been increased by 64.66% when compared to previous year.The total current liabilities are decreased by -6.25%.The overall total liabilities areincreased by 13.78% when compared to previous year.

Balance Sheet

comprative

Particulars 2005 2006Absolute

terms Inc/decAssets

Fixed AssetsGross block 5465.84 5924.74 458.9 8.39%



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Net block 2808.47 3003.03 194.55 6.92%Capital work-in-

progress 438.19 211.81 -211.81 -48.33%Investments 3502.92 3412.17 -90.75 -2.59%

3941.11 3623.98 -317.13 -8.04%Total fixed

assets 6749.58 6627 -122.58 -1.81%Current assetsCurrent assets,loans&

advances 2587.88 3035.72 447.84 17.30%9337.73 9662.72 324.99 3.48%

miscellaneous expenses notwritten 22.71 15.46 -7.25 31.92%

Total assets 9360.17 9678.18 318.01 3.39%





secured loans 1059.07 946 -113.07 -10.67%unsecured loans 1842.75 1850.81 8.06 0.43%

Total dets 2901.82 2796.81 -105.01 3.61%current liabilities

current liabilities&provisions 1363.69 1367.54 3.85 0.28%



There is an increase in fixed assets 8.39 % bywhen compared with the years 2004 and 2005. The accumulated depreciation is increased

by 9.94% and the net block is increased by 6.92% .There is a great increase in capitalwork in progress decreased by -48.33 .But the investments have been decreased by-2.59%. The current assets are increased by 17.30% and the miscellaneous expenses


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Net block 3003.03 3030.31 27.29 0.90%Capital work-in-

progress 211.81 781.05 569.24 268.75%Investments 3412.17 3570.15 1.04 0.03%

3623.98 4351.2 727.22 20.06%Total fixed

assets 6627 7381.51 754.51 11.38%Current assetsCurrent assets,loans&

advances 3035.72 4105.04 1069.32 35.22%9662.72 11486.55 1823.83 18.87%

miscellaneous expenses notwritten 15.46 6.17 -9.29 -60.09%

Total assets 9678.18 11492.72 1814.54 18.74%





secured loans 946 1354.3 408.3 143.16%unsecured loans 1850.81 2321.22 470.41 25.41%

Total dets 2796.81 3675.52 878.71 31.41%current liabilities




There is an increase in fixed assets 5.1% by whencompared with the years 2004 and 2005. The accumulated depreciation is increased by9.50% and the net block is increased by 0.90% .There is a great increase in capital work


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in progress increased by 268.75% .But the investments have been increased by 0.03%.The current assets are increased by 35.22% and the miscellaneous expenses (prepaidexpenses) are decreased by 60.09%.There is an increase in overall total assets increaseby18.74% when compared to previous year.

If we look into the owners funds there is an equal in equity share capital andreserves and surplus increased by 8.97%. The total share holders capital is increased to8.65%. The total debts have been increased by 31.41% when compared to previous year.The total current liabilities are increased by 33.54%.The overall total liabilities areincreased by 18.74% when compared to previous year.

Balance Sheet

comprativeParticulars 2007 2008 inc\dec per%

Assets

Fixed AssetsGross block 6229.71 6481.99 252.28 4.04%


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Net block 3030.31 3005.49 -24.82 -0.81%Capital work-in-

progress 781.05 1681.74 900.69 115.31%Investments 3570.15 4430 859.85 24.08%

4351.2 6111.74 1760.54 40.46%Total fixed

assets 7381.51 9117.23 1735.75 23.08%Current assetsCurrent assets,loans&

advances 4105.04 3956.73 -148.31 -3.61%11486.55 13073.96 1587.41 12.14%

miscellaneous expenses notwritten 6.17 1.69 -4.48 -72.60%

Total assets 11492.72 13075.65 1582.93 13.77%


equity share capital 197.92 220.72 22.8 11.51%share application money 0 60.99 60.99 0



secured loans 1354.3 2331.09 976.79 72.12%unsecured loans 2321.22 725.26 -1568.96 67.59%

Total dets 3675.52 3083.35 -592.17 16.11%current liabilities




There is an increase in fixed assets 4.04% bywhen compared with the years 2004 and 2005. The accumulated depreciation is increased

by 8.66% and the net block is decreased by 0.81% .There is a great increase in capital


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work in progress by 115.31% .But the investments have been increased by 24.08%. Thecurrent assets are decreased by -3.61% and the miscellaneous expenses (prepaidexpenses) are decreased by -72.60%.There is an increase in overall total assets by 13.77%when compared to previous year.

If we look into the owners funds there is an equal in equity share capital andreserves and surplus increased by 34.14%. The total share holders capital is increased to34.41%. The total debts have been decreased by 16.11% when compared to previousyear.The total current liabilities are increased by 6.11%.The overall total liabilities areincreased by 13.77% when compared to previous year.


comprativeParticulars 2005 2006 inc/dec per %

Income 3918.85 4553.23 634.38 16.18%


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less:cost of goods sold Material consumed 2474.83 3198.23 723.4 29.23%Manfacturing expenses 171.66 1670.45 -4.21 -2.45%

2646.49 3365.68 719.19 27.17%Gross Profit 1272.36 1187.55 -84.81 -6.66%


Selling expenes 61.27 54.48 -6.79 -11.08%Adminstrative expenses 171.5 124.13 -47.37 -27.62%Depreciation 359.62 278.34 -81.28 -22.60%

592.39 456.95 -135.44 22.86%Operating profit 679.97 730.6 50.63 7.44%

add:Non operating IncomeOther non cash

adjustments 0 0 0 0

Expenses capitalised 20.3 5.38 -14.92 -73.49%Other recurring income 143.17 170.49 24.32 16.98%Non recurring items 265.3 175.18 -90.12 -33.96%

428.77 351.05 -77.22 -18%PBIT 1108.74 1081.65 -27.09 -2.44%


Personnel expenses 155.4 173.68 18.28 11.76%Financial expenses 179.75 152.62 -27.13 15.09%Other write offs 18.2 9.82 -8.38 46.04%

Other non cashadjustments 33.92 4.41 -29.51 86.99%

387.27 340.53 -46.74 12.06%PBT 721.47 741.12 19.65 2.72%less:

Tax Tax charges 170.11 130.68 -39.43 23.72%

170.11 130.68 -39.43 23.17%Net profit 551.36 610.44 59.08 10.71%

INTERPRETATION:

Sales were increased by 16.18% when we compare 2006 saleswith 2005 sales. When we consider the cost of goods sold items there has been an


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increase in materials consumed by 29.23 % and manufacturing expenses decreased by-2.45% and when we compare the gross profit of both the years there is an decrease ingross profit by -6.66%.so it can be concluded that gross profit will decrease withcorresponding increase in sales.

If we look into operating expenditure there is an decrease in expense for operating thecompany. The details of operating expenditures are as follows, there is an decrease inselling expenses by -11.08%, and administrative expenses by 27.62%, depreciation by22.60%, and.The operating profit is increased by 7.44%.

The decrease in non operating incomes will help the business to come up with solutionfor solving the decreasing expenditure. The non operating incomes are expensescapitalized by 73.99%, other incomes increased by 16.98%and non recurring itemsdecreased by33.96%The profit before interest and tax is decreased by -2.44

As we look into non operating expenses there is an decrease in financial expenses by15.09 % and decrease in other non cash adjustments by 86.99%.The profit before tax isdecreased by 12.06%.

After deducting all these expenses and taxes, still the company is ableto gain profits as there is an increase in net profit of 2006 by 10.71%when compared it with net profit of 2006


comprative particulars 2006 2007 inc/dec per%


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Income 4553.23 4918.53 365.3 8.02%less:

cost of goods sold Material consumed 3198.23 3456.54 258.31 8.07%Manfacturing expenses 1670.45 187.92 20.47 12.22%

3365.68 3644.46 278.78 8.28%Gross Profit 1187.55 1274.07 86.52 70.28%


Selling expenes 54.48 255.39 200.91 368.77%Adminstrative expenses 124.13 125.39 1.82 1.46%Depreciation 278.34 291.92 13.58 0.04%

456.95 673.26 216.31 47.33%Operating profit 730.6 600.81 -129.79 -17.76%

add:Non operating IncomeOther non cash adjustments 178.17 178.17 0.00%

Expenses capitalised 5.38 5.36 -0.02 -0.37%Other recurring income 170.49 335.89 165.4 97.61%Non recurring items 175.18 39.88 -135.3 -77.23%

351.05 559.3 208.25 59.32%PBIT 1081.65 1160.11 78.46 7.25%


Personnel expenses 173.68 196.35 22.67 13.05%Financial expenses 152.62 187.11 34.49 22.59%Other write offs 9.82 9.82 0 0.00%

Other non cashadjustments 4.41 0 0 0.00%

340.53 393.38 52.85 40.44%PBT 741.12 766.73 -25.61 3.40%less:

Tax Tax charges 130.68 70.03 -60.65 -46.41%

130.68 70.03 -60.65 -46.41%Net profit 610.44 696.8 86.36 14.14%

INTERPRETATION:

Sales were increased by 8.02% when we compare 2006 saleswith 2005 sales. When we consider the cost of goods sold items there has been anincrease in materials consumed by 8.07 % and manufacturing expenses by 12.22% . when


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we compare the gross profit of both the years there is an increase in gross profit by8.28%.so it can be concluded that gross profit will increase with corresponding increasein sales.

If we look into operating expenditure there is an increase in expense for operating thecompany. The details of operating expenditures are as follows, there is an increase inselling expenses by 368.77%, and administrative expenses by 1.46%, depreciation by0.04%,.The operating profit is decreased by 17.76%.

The increase in non operating incomes will help the business to come up with solution for solving the increasing expenditure. The non operating incomes are expenses capitalized

by 0.37%, other incomes by 97.61%and non recurring items decreased by 77.23%.The profit before interest and tax is increased by 7.25%.

As we look into non operating expenses there is an increase in financial expenses by22.50% ,.The profit before tax is increased by 3.44%.

After deducting all these expenses and taxes, still the company is ableto gain profits as there is an increase in net profit of 2006 by 14.14%when compared it with net profit of 2007

Profit & Loss Account

comprative particulars 2007 2008 inc/dec per%

Income 4918.53 5909.6 991.07 20.14%less:


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cost of goods sold Material consumed 3456.54 4300.69 844.15 24.42%Manfacturing expenses 187.92 241.47 53.55 28.49%

3644.46 4542.16 897.7 24.63%Gross Profit 1274.07 1367.44 43.37 7.32%


Selling expenes 255.39 35.18 -220.21 -86.22%Adminstrative expenses 125.39 179.04 53.09 42.15%Depreciation 291.92 290.5 -1.42 -48.00%

673.26 504.72 -168.54 -25.03%Operating profit 600.81 862.72 261.91 43.59%

add:Non operating IncomeOther non cash adjustments 178.17 32.13 -146.45 -81.96%Expenses capitalised 5.36 2.22 -3.14 -58.50%Other recurring income 335.89 151.4 -184.49

tata powers ven

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