Tata Powers Ven

TATA POWERS
COMPANY ANALYSIS
WITH REFERENCE TO
Mini project submitted to JNTU Kakinada for the partial

Fulfillment 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.
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.

CONTENTS
Page 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
INTRODUCTION
Company analysis deals with the estimation of return and individual

company / company shares. This calls for information. Many pieces of information
influence investment decision. Information regarding companies can be broadly
classified into two broad groups:
INTERNAL:
Internal information consists of data and events made public by companies

concerning their operations. By internal information sources include annual reports, to
share holders (chairman report, financial statements, auditor’s reports, annual report, and
director’s report) and public and private statements of officers of the company etc.
EXTRANAL:
External source of information are those generated independently outside the

company 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 upon
share crisis the level, trend ability of earnings of a company however depend upon a
number 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.
(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 is
most difficult in a company analysis.
Jc. Franchise in his book management of investment suggested the following list
of 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 firm’s executives appear to have energy and good leadership instincts?
Or the executives are unable to answer questions satisfactory, too young, too old
or experienced?
• Is the firm well diversified does one customer provide most of the firm sales thus
one product line provide most of the firms sales.
• As the firm use only marketing channel for its sales.

• 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 oxalate
updated.
• 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 it
nerveless 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, as
it should?
• Thus the boards of directors have access to information with needs to properly
over see and direct the firm.
• Thus management satisfactorily responds regular intervals?

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 company
3. 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 company’s strengths and weaknesses and areas of development or decline are
analyzed. 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 and
executive 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
METHODOLOGY
To fulfill the objectives of the study, secondary data have been collected.
SECONDARY DATA:
The secondary source of information had obtained from the company

information on the TATA MOTORS.
COMPANY ANALYSIS
ANALYSIS AND INTERPRETATION:
Financial statements are prepared primarily for decision-making. The statements

are 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 firm
form accounting data. The profit and loss account and balance sheet are indicators of two
significant factors-profitability and financial soundness. Analysis of statement means
such 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 financial
factors 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 analysis
is the pinpointing of the strength and weakness of a business undertaking by regrouping
and analyses of figures contained in the financial statements, by making comparisons of
various components and examine their content. The financial statements are the best
media of documenting the results of managerial efforts to the owners of the business, its
employee, its customers and the public relations.
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 financial
statements are included in analysis. The data provided in the financial statements
should be methodically classified and compared with figures of previous period or
other similar firms. Thereafter, the significance of the figures is established. The
methodically classified and compared with figures of previous period or other
similar firms. Thereafter, the significance of the figures financial statements is
the 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 in
Balance 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 the
enterprise. This is the Interpretation stage. The technique is called “analysis and
interpretation” of financial statements. Analysis consists in breaking down a
complex set of facts or figures into simple elements. Interpretation, on the other
hand, consists in explaining capacity the real significance of these simplified
statements. 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 the
financial position and earning capacity of the company which may be understood
even by a layman, who does not know accounting. The analysis and
interpretation of financial statements requires a comprehensive and intelligent
understanding of their nature and limitations as well the determination of the
monetary valuation of the items. The analyst must grasp what represent sound
and unsound relationship reflected by the financial statements. Interpretation is
impossible without analysis. “Interpretation is not possible without analysis and
without interpretation analysis has no value.” Analysis and interpretation act as a
bridge between the art of recording and reporting financial information and the act
of using this information. Analysis refers to the process of fact finding and
breaking down complex set of figures into simple components while
interpretation stands for explaining the real significance of these simplified
components. 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 financial
statements. 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 Analysis
6. 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, comparative
financial statements are statements of the financial position of a business so designed as
to provide time perspective to the consideration of various elements of financial position
embodied in such statements. Generally, balance sheet and income statement which
alone are prepared in a comparative form because they are the most important statements
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 the
operating results and financial status of a business. Financial statements of two or more
firms may also be compared for drawing inferences. This is to indicate the changes from
one year to another in absolute terms and also in percentage the change from. The
following 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.

OBJECTIVES OF ANALYSIS AND INTERPRETATION:
The following are the main objectives of analysis and interpretation of financial
statements.
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. People

use financial statements for satisfying their particular curiosity. Financial accounts are
interpreted by different persons in different ways according to their objects. For instance
same financial statement may be very good for one.
• A prospective shareholder would like to know whether the business is profitable

and is progressing on sound lines.
• A supplier who would like to transact business with the firms may be interested in
the company’s ability to honor its short-tern commitments.
• A financier would like to be satisfied with safety and reliability of return on his
investment. Thus, the object of the analysis determines the extent, depth and
nature of analysis.
COMMON-SIZE STATEMENT:
Financial statements when read with absolute figures are not easily
understandable. They even misleading. Each item of assets is converted into percentage
to 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 as
Comparative Common-Size Balance Sheets. Again, in profit and loss Account Sales
figure is assumed to be equal to 100 and all other figures are expressed as percentage to
sales. Similarly, in Balance Sheet the total of assets or liabilities is taken as 100 and all
the 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 item
of several years to the same item of base year. Thus, one particular year out of many
years is taken as base. The value of one particular year item out of several items shown
in 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 current
liabilities 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 the
Balance Sheets under consideration. The statement shows the changes in individual
items of current assets and current liabilities and their effect of ions
(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.
Cash Balance in the ..............................
beginning
Add- Source of cash (or

Cash Inflows)
...............................
(i) Cash from operations ...............................
(ii) Cash from operations ...............................
(iii) Sale of Investment and ...............................

any other Fixed Asset
...............................
(iv) Issue of Share
Capital/Debentures
(v) Loans raised during the ..............................

year.
Total cash available
Less- Application of Cash ..............................

...............................
(or Cash outflows)
...............................
(i) Purchase of Machinery
of any other Fixed Asset
...............................
(ii) Dividend Paid
(iii) Decrease in Account

..............................
Payable
(iv) Repayment of Loans

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

..............................
Cash balance at the end
..............................
Cash Flow Statement (Account Form)
Cash balance at the ..................

beginning
(i) Cash from ................... ....................

operations (i) Decrease in
................... Accounts Payable ....................
(ii) Collection form
debtors (ii) Purchase of
................... Machinery or other
(iii) Sale of Asset ....................
Investment ...................
(iii) Dividend Paid
(iv) Sale of Fixed ...................
Asset (iv) Repayment of ....................
................... Loan
(v) Insurance of ...................
share capital or (v) Redumption of
debentures Pref. Shares or
Debentures ....................
(vi) Loan
Cash Balance at the
end
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:

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
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

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

PROFILE
Driven by Growth – Fuelled by Power
Recognised as India’s 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 successfully
served the Mumbai consumers for over ninety years and has spread its footprints across the nation. Today,
it is the country’s largest private player in the sector. Apart from Mumbai and Delhi, the company has
generation 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. Its
diverse generation capability facilitates the company in producing low cost energy, thereby giving its
consumers a greater value for money.
Among its many achievements that Tata Power can proudly boast of are the installation and commissioning
of India’s first 500 MW unit (at its Thermal Power Generating Station, Trombay) the 150 MW Pumped
Storage Unit at its Hydro Generating Station, Bhira, and environmental control systems like the Flue Gas
Desulphurisation plant.
Tata Power has a first of its kind joint venture with Power Grid Corporation of India for the 1200 km Tala
Transmission Project.
North Delhi Power Limited

A joint venture with the State Government of Delhi for its North Delhi consumers, the NDPL serves over 8
lakhs satisfied consumers with a peak load of 1050 MW, also providing state-of-the-art technology driven
processes for enhancing consumer billing and related services.
Tata Power Trading Company Limited (TPTCL), a wholly owned subsidiary of the Tata Power Company has
been 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 out
several 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 also
undertaken 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 been
pursuing development and production activities for the Indian defence sector. SED successfully developed
the Multi Barrel Rocket Launcher, ‘Pinaka’, proven in the field through extended user trials which led to its
induction into the Indian Army. The Division has developed specialised equipment for Air Defence and Naval
Combat systems.
Corporate Social Responsibility
Tata Power is committed to setting high standards in its pursuit of social responsibility and remaining
sensitive 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 activities
in these matters, “Giving back is a means towards going ahead".
Our widespread programmes on biodiversity conservation, afforestation, pisciculture, family planning, health
services, primary and secondary education and many more have made inroads into the tiny hamlets and
tribal regions of our hydro catchment areas and it is our endeavour to light up these dark and narrow streets
to 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.

• 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 2nd Wartsila – Mantosh Sondhi Award for outstanding contribution to the Indian Power Sector
in 2004.
• Greentech Environment Excellence Award: Platinum to Jojobera Thermal Power Plant, 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.
Strong values are the base of any laudable mission and vision is vital to its realisation. Tata Power's
fundamentals have always been very clear in this direction.
Vision
To be the most admired Integrated Power and Energy Company delivering sustainable value to all
stakeholders
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

Company History - Tata Power Company
1919
- The Company was incorporated on 18th September, at Mumbai. The

Company generate and supply Electricity. The Tata Hydro-Electric
Power
System comprises the Tata Hydro-Electric Power Supply Co., Ltd., the
Andhra 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 to

enter into a partnership arrangement with Ebasco India, Ltd., for
the
establishment in India of a consulting engineering firm by the name
of
`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., was
formed, in participation with other Tata Companies and Elephanta
India
Private Ltd., with the object to installation of storage tanks on a
part of the Company's ash disposal area at Trombay and the laying of
a
pipeline connecting the storage tanks with the Mumbai Port Trust's
pier
at Pir Pau.
1971
- The purchase price of assets under the Khopoli Electric Licence,

1933
was determined by mutual agreement to be Rs 21.50 lakhs plus a
solatium
of 10% as provided in the Licence. A substantial portion of the
purchase price was paid to the Company by the Maharashtra State
Electricity Board.
1975
- 1,13,379 bonus shares issued in prop. 1.5.
1980
- The Company set up a new manufacturing facility at Bangalore, for

commercial production of electronic items designed by its R&D lab.
- Interest on 9.5% À' pref. shares raised to 11% effective 1.4.1980

and redumption date extended to 1.4.1995. 25,965 pref. shares of
dissenting 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 25

MW.
- The Company cancelled its 86,970-7.5% non-redeemable preference

shares of Rs 100 each with effect from 1st April and allotted to the
holders of these preference shares 86,970-15% secured
non-convertible
debentures of Rs 100 each in the proportion 1:1.
1986
- Forfeiture on 255 equity shares annulled, 4,56,350 No. of equity

shares allotted at par to financial institutions upon conversion of
loans/debentures.
1987
- A new double circuit 22/110 KV transmission line was constructed

in
North Mumbai from Borivli to Malad to meet the requirements of
Municipal Corporation of Greater Mumbai besides meeting loads in
Kandivili, Malad, etc. It was commissioned during 1988-89.
- The transmission and distribution network was also strengthened to

maintain reliability of power supply by installation of 2 x 200 MVA,
220/110 KV interconnecting transformers at Trombay, a new 22 KV
indoor
switchgear at Saki, new capacitor banks at Saki and Kalyan etc.
- The Company's proposals of 220/110 KV switching station and new

110
KV receiving station at Grant Road were cleared by State and Central
Governments. The Company undertook to install a 180 MW combined
cycle
plant at Trombay using gas turbines.
1988
- A generator stator weighing 260 tonnes supplied by KWU W. Germany

was
lifted into position along with the boiler drum from BHEL, Trichy.
A
110 KV oil filled cables for bulk transmission of power from Carnac
to
Backbay 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 to

Dharavi from 110 KV to 220 KV. It was commissioned by March 1995.
- Six new outlets for BEST at 33 KV from Carnac receiving stations

were
also commissioned during the year.
- Approval from the state and the Central Governments were also
received for the installation of a gas based 180 MW combined cycle
plant at Trombay at a cost of Rs 212 crores to supplement the
generating capacity in the state.
- The Companies are also associated with Siemens in the erection and
commissioning of the mechanical and electrical equipment for the 4 x
130 MW gas turbines and 2 x 150 MW steam turbines at NTPC's combined
cycle power plant at Dadri in Uttar Pradesh.
- 5,875 forfeited equity shares reissued. (Prem. Rs 200).

1990
- The Thermal Unit was shut down for 9 weeks for boiler
re-certification and overhaul and reblading of four stages of the

stationary side of the IP turbine.
- The second 500 MW unit 6 at Trombay was trial synchronised with

the
grid on 23rd March.
- The Company took up two major generation projects, viz., 150MW

Pumped
Storage Unit at Bhira and a gas-based 180 MW Combined Cycle Plant at
Trombay Thermal Power Station in case of a major system disturbance
and
supply power to essential consumers, viz., Railways, BMC, BARC, etc.
- The Company also proposed to undertake overhauling and maintenance

works on gas turbines at Uran in association with Kraftwerke Union,
W.
Germany.
- As per the agreement signed in October, the Company was to seek

clearance for World Bank/IFC loan amounting $ 158 million by 30th
September, 1991.
1991
- The generation at the Trombay thermal station suffered due to

shortage of fuel particularly during the months October to December.
- With a view to upgrade and extend the life of plants, the Company
proposed retrofitting of 150 MW Trombay Unit-4 to ensure efficient
operation and utilisation of generators of Units 1, 2, and 3 as
electrically driven synchronous condensors for power factor
improvement.
- A new 110 KV substation comprising 2 x 90 MVA, 110/33 KV power

transformers along with 33 KV indoor SF6 switchgear and supervisory
control and data acquisition system was commissioned at Versova.
- A new switching station comprising 3 x 250 MVA, 220/110/33 KV

autotransformers, space saving 245 KV gas insulated switchgear and
supervisory control and data acquisition system was established.
- The Company undertook the projects like: (i) Erection of fourth

gas
turbine unit at Dadri near Delhi (ii) KWU/Siemens awarded to the
companies, (iii) Undertook eletrical and I & C equipment
installation
works.
1992
- A modern 22 KV indoor SF6 switchgear was installed at Salsette and

also a 60 MVAR new capacitor banks were installed at Versova and
Malad.
Apart from these, replacement of 110 KV oil circuit breakers by
modern
SF6 breakers at Kalyan, Ambernath, Vikhroli and Salsette receiving
stations and extension of fibre optic communication network were
also
carried out.
- During April-May, the Company offered 20,51,555-14% secured

redeemable partly convertible debentures of Rs 500 each on rights
basis
in the proportion 1 deb.: 1 equity shares held (all were taken up).
Additional 3,07,733 debentures were allotted to retain
oversubscription.
- Another 1,02,578 debentures were issued to the employees on an

equitable basis (all were taken up). Additional 15,387 debentures
were
allotted to retain oversubscription.
- In addition 3,50,000 debentures were reserved for allotment to

Tata
Sons 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 be

converted into one equity share of Rs 100 each at a premium of Rs
200
per share.
- Part-B of Rs 200 of the face value of each debentures was to be

redeemed on the expiry of 10 years from the date of allotment with
an
option to the Board to redeem the same at any time after 7 years
from
the 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 generating

units on the existing Bhivpuri tailrace channel by utilising
available
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 establish

a
110 KV power supply point at Mankhurd to meet additional load
requirement of Central Railway.
- The first 120 MW steam turbine at Uran was synchronized and the
second 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 of
right issue kept in abeyance.
1994
- The Trombay Unit-7 steam turbine generator was synchronised on 9th

December, which generated 650 MUS with PLF of 61.9%.
- It was proposed to establish a 110 KV substation at Bandra-Kurala

complex to meet the power requirement in S. Mumbai.
- During the year, the Company undertook the work of strengthening

dams
as per designs codes in respect of earthquakes. The Government of
Maharashtra had accorded its permission for rebuilding a dam at
Somwadi.
- The set No. 5 at Bhira was rehabilitated by changing the core &
coils
and was recommissioned along with a new more efficient 30 MVA
generator
transformer.
- At Vikhroli, an additional 90 MVA, 110/22 KV power transformer was

taken 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 of
USA
for renovation and modernisation of power plants.
- The Second phase of the Trombay combined cycle power project viz.
60
MW steam turbine and associated equipment was commissioned. Work
for
commissioning of the unit as pumped storage generation unit was
commissioned.
- During February, the Company issued 91,549 Global Depository
Shares
representing 5 ordinary shares of Tata Power Co. Ltd., three
ordinary
shares of Andhra Valley Power Supply Co. Ltd. and two ordinary
shares
of the Tata Hydro Electric Power Supply Co. Ltd. Accordingly
5,28,165
shares, 3,16,899 shares and 2,11,266 shares were allotted to Tata
Power
Co. Ltd., Andhra Valley Power Supply Co. Ltd. and Tata Hydro
Electric
Power Supply Co. Ltd. respectively.
- Equity shares subdivided. 77,70,000 No. of equity shares allotted

on
private placement basis to associate companies.
1995
- The 150 MW Pumped storage unit was commissioned in the synchronous

condenser mode. The Company undertook the work of modernisation and
renovation of old 12 MW hydro units at Bhivpuri and Khopoli
Generating
Stations.
- The old core laminations of Bhira Generator No. 2 and Khopoli

generator No.2 were replaced by new low loss laminations to reduce
core
business.
- The Company provided services to Tata Projects Ltd., for erection

and
commissioning of ten new 33 KV sub-station and modification of
fifteen
existing 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 paid

pursuant to a contract without payment by reserved in case.
1996
- The 150 MW pumped storage unit at Bhira was commissioned. At

Bhira
generating station five 25 MW units were refurbished by installation
of
new modern turbine runners of higher efficiency.
- The Company strengthened the existing network by installing new
22KV
indoor switchgear at Vikhroli sub-station, by replacing old oil/air
blast circuit brackers by modern 110 KV breakers at various
sub-stations, by retrofitting and uprating of existing 22 KV ABCBs
by
22/33 KV modern SF6 breakers, by installation of new numerical type
relays on transmission lines and by installation of new micro
processor
based metering system by replacing existing electro-mechanical type
meters.
- The Company installed a major 220 KV underground transmission

system
from Dharavi receiving station to Backbay, South Mumbai. The
Company
also undertook to implement a 22 KV receiving station at
Bandra-Kurla
Complex to provide power supply to various commercial consumers in
the
area. To improve the continuous and reliable power supply, the
Company
proposed to set up 220 KV switching stations at Parel and Mahalaxmi.
- During the year, the Government of Karanataka awarded the

Multi-fuel
based 80 MW power project to the Company.
- 3.62.5 MW thermal generating units at Trombay were converted into

synchronous condensers with a 1.2 MW static frequency converter in
the
starting system. Also a 36 KV switchgear with vacuum circuit
breakers
were commissioned thereby introducing vacuum breaker technology in
medium voltage distribution TEC system.
1997
- The thermal Units at Trombay operated at an on-line availability

of
about 74% and utilization of about 64.3%.
- In order to improve the efficiency at Bhivpuri Generating Station

6x12 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 Tata
Power even while improving the former's cash flows.
1998
- The companies are at various stages of their project proposals to

set
up captive power units would increase the companies generation
capacity
by approximately 500 MW.
- The company entered into an Joint Venture Agreement with Total Gas
and Power India (a wholly owned subsidiayr of Total) for
establishment
of an LNG Terminal at Trombay.
1999
- CRISIL and ICRA have both awarded the highest rating AAA and LAAA
respectively for Debentures upto Rs. 500 crores.
- Trombay Thermal achieved a thermal generation of 7670 Million

Units
(MUs) in the year 1998-99 as compared to 7593 MUs in the previous
year.
- The Companies have acquired a generating station consisting of a

37.5
MW Unit at Wadi, Karnataka, in January.
- The Company has undertaken to give a sharper focus to growth and

enhancement of shareholder value.
- The Companies have already set up the requisite facilities for

dematerialisation of shares, in accordance with the provisions of
the
Depositories Act, 1996, and several members particularly
institutional
investors, have availed of these facilities to hold and trade in the
shares in electronic form.
- The Power Purchase Agreement for 81.3 MW Diesel-based Power Plant

at
Belgaum, 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 Tata
Hydro-Electric
Power Supply.
- Reliance Infocom, BSES TeleCom, Tata Power Company Ltd. and

Internet
services provider Caltiger are gearing up to offer internet
telephony
services, the moment the government makes it legal.
- Tata Power Ltd is in talks to acquire as many as four independent

power projects most of which are owned by international power
majors,
in Madhyra Pradesh, Karnataka and Tamil Nadu.
- Tata Power Company has obtained À' licence as Internet service

provider which enables it to operate throughout the country.
- Mr. A.M. Sahni has been appointed as Wholetime Director of the

company with effect from November 27.
2001
- The company which is fast emerging as a key company in the Tata

group, may hive off its telecommunications business into a separate
company.
- Tata Power Company Ltd on September 3rd, decided to sell its stake
consisting of 45 lakh shares in Tata Liebert Ltd (TLL), at Rs 170
per
share, to Emerson Electric (Mauritius) Ltd.
- The Tata Group has steadily hiked its holding in Tata Power to
32.36
per cent as on September 30, from 31 per cent on April 1 and less
than
25 per cent on April 1, 2000, when group companies Andhra Valley and
Tata 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 disinvestment

process initiated by the Govt. of India in VSNL
-120 MW Unit 3 at the Jojobera Power Plant of the Company at

Jamshedpur commences commercial production
-Tata Power acquires North North-West Delhi Distribution Co. Ltd.

(Discom-III), a distribution company belonging to the Delhi Vidyut
Board (DVB), which supplies power to north and north-western Delhi
-Delhi government signs share-holding agreement with Tata Power for

power distribution in the captal
-Bags Good Corporate Citizen award by Bombay Chamber of Commerce for

the year 2001-02
-Mr. Firdose A Vandrevala appointed as Managing Director of the

company
-BSES files suit against Tata Power Company with Maharashtra
Electricity 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 India

Ltd. to acquire upto 1,00,00,000 equity shares of Rs 10 each
aggregating to Rs 100 million in one or more tranches
-Submits its expression of interest (EoI) to participate in Tata

Sons' share buyback programme
-Ties up with the UK-based energy major British Petroleum to jointly

estimate the 2,184 mw Dabhol power project
-Managing Director Mr. Firdose A Vandrevala elected as chairman of

the Confederation of Indian Industry (CII) western region
-Awarded the contract for supply and construction of 180 KM long 400
KV Double Circuit Transmission Line from Palandur to Chandrapur
(Maharashtra) By Power Grid Corporation of India Ltd.
-Enforces integrated automated system module developed by SAP
-Power Grid Corporation of India Ltd (PGCIL) enters into a joint

venture with Tata Power to develop a 1,200 km long transmission line
-Maharashtra Electricity Regulatory Commission (MERC) ropes in Tata

Power Company (TPC) for the formulation of draft rules and
regulations stipulated under the newly notified Electricity Act 2003
-Enters into Shareholders Agreement with Power Grid Corporation of

India Ltd. and Tala-Delhi Transmission Ltd. for implementation of the
400 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-cr
during 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 basic
telephony flagship, and in Tata Teleservices (Maharashtra),
respectively
-Approaches Bombay High Court against an order issued by Maharashtra

Electricity Regulatory Commission (MERC), which restricts the company
to provide power to retail consumers
-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 and
construction of the 400 kV Vishnuprayag -Muzaffarnagar Double Circuit
Transmission line totalling 100 route KM in the state of Uttaranchal
-Jointly develop the 330 MW Srinagar Hydro Power Project in

Uttaranchal with Synergies Hydro Asia (SHA), at an estimated cost of
Rs 16500 million
-Maharashtra Govt. took back its nominee from the company board
-Started construction of its merchant power plant under the new

Èlectricity Act 2003', at Jojobera in Jharkhand.
2003
-The company entered into a Joint Venture Agreement with Power Grid
Corporation of India Ltd. to set up a 1200 km power transmission line
from Siliguri in West Bengal to Mandola in Uttar Pradesh.
In addition to the 330 MW Shrinagar project and 120 MW project at

Jojobera, the company also has plans to set up new power projects.
-Company has appointed Mr A J Engineer as the Additional Director of

the Company wef November 19, 2003.
-TPC has tendered an unconditional apology to Maharashtra Electricity

Regulatory Commission (MERC) for supplying power below 1,000 kVa to an
industrial estate from the Mumbai suburbs.
-Duncans North Hydro Power becomes a fully owned subsidiary of Tata

Power
-Tata Power buys out 100-pc stake in Duncans North Hydro Power
Company
-Tata Power Company Ltd has informed that the Ahmedabad Stock
Exchange (ASE) has informed the company that wef January 15, 2004 the
companies 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.
-Tata Power Company has floated a wholly owned subsidiary for the
power trading business and applied to the Central Electricity
Regulatory Commission (CERC) for a countrywide trading licence.

Christened Tata Power Trading Company, the subsidiary has been
incorporated with a paid up capital of around Rs 2 crore.
-Unveils special purpose vehicle (SPV) under the name of Tata Power
Trading Company Private Limited (TPTCPL) for undertaking inter-state
trading of power in the country
-Tata Power Company Ltd has on April 5, 2004 signed a Development

Agreement with GAIL India Ltd & BP to jointly participate in
evaluating the Dabhol gas and power opportunity.
-Tata Power Co. Ltd. has nominated Mr. Sanjay Bhatia as the State
Government Director on the Board of the Company in place of Mr.
Jayant S Kawale
-The Union Government on May 20, 2004, cleared Tata Power Company's
trading licence
-Tata Power Company MOU with National Power Company of Al-Zamil

Group, Kingdom of Saudi Arabia
-Tata Power Trading Company Ltd (TPTCL), a wholly owned subsidiary of

the Tata Power Company (TPC), has been awarded the first ever power
trading licence by the Central Electricity Regulatory Commission
(CERC)
2005
-Tata Power signs generation pact with DVC on Maithon Project
-Tata Power enters into an agreement for sale of shares in Tata Power
Broadband
2006
-Tata Power joins hands with Siemens
-Tata Power Company Ltd has informed that, the State Government has
nominated Mr Jayant S Kawale as the State Government Director on the
Board of the Company in place of Mr Sanjay S Bhatia. At its meeting
held on November 27, 2006, the Board of Directors of the Company
appointed Mr Kawale as the Nominee Director with immediate effect.
2007
-Tata Power Company Ltd on January 24, 2007 has announced that the
Company has signed a MoU with the Government of Chhattisgarh for the
setting up of a 1000 MW coal fired mega power plant in the State.
- 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 has
nominated Mr. Rahul Asthana as the State Government Director on the
Board of the Company in place of Mr. Jayant S Kawale. Mr. Asthana has
been appointed as the State Government Director effective March 30,
2007.
-Tata Power Company Ltd on has announced the acquisition of the

Coastal Gujarat Power Ltd, a Special Purpose Vehicle (SPV) formed for
Mundra Ultra Mega Power Project (UMPP). A formal execution of the
documents took place between Power Finance Corporation (PFC) and Tata
Power, under the auspices of Ministry of Power, Delhi.
- Tata Power has roped in Korea-based Doosan Heavy Industries and

Construction Ltd for supercritical boilers for its Mundra ultra mega
power 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 Structural
Engineering from Cornell University, USA and has completed the Advanced Management Programme at
Harvard 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 the
Tata 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 Electricity
Regulatory 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 Metaliks
Limited and The Tinplate Company Of India Limited and is also Member (Industry and Infrastructure) of the
West 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 Tata
Chemicals Ltd. and a Director of several other companies like Tata Motors Ltd., ICI India Ltd., Castrol India
Ltd. etc. Prior to joining the Tata Group in 1998, he was with Hindustan Lever for 31 years, where he rose
from 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 (Gold
medallist 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 the
Economics Department. He was the ICICI nominee director on the Board of several large companies. He
was appointed as Nominee Director on the Board of the erstwhile The Andhra Valley Power Supply
Company 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 been
subsequently 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 by
LIC. 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 a
Fellow of the Institution of Engineers (India). He has a career spanning 47 years occupying key positions in
areas of engineering, project planning and execution of multi-disciplinary activities. He has been associated
with the power sector for the last 23 years and has been with the Company since 1984, having joined as
Project 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 31st August
2002. Prior to his joining Tata Electric Companies, he served in several senior positions with the well-known
multinational group of Imperial Chemical Industries. He was re-appointed as Director on the Board of the
Company effective 19th 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 the
Boards of several companies.
Mr Deepak M Satwalekar
Mr Satwalekar is the Managing Director and CEO of HDFC Standard Life Insurance Company Limited since
November 2000 and prior to this, he was the Managing Director of HDFC Limited from 1993 - 2000. Mr
Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay
and a Masters Degree in Business Administration from The American University, Washington DC. He has
considerable 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 the
Board of Axis Bank Limited. Dr Patil has a Masters Degree in Economics and also a Doctorate in
International Economics. He was the first Managing Director of National Stock Exchange of India Limited
and has also worked for 7 years with Reserve Bank of India and more than 18 years with Industrial
Development 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 Indian
Administration Service, which he joined in 1964, topping his batch. He was educated at Delhi University and
later at Cambridge, UK, where he obtained a Post Graduate Diploma in Development Studies, with
distinction. Some of the important positions that he has held include Counsellor (Economic) in the Indian
Embassy, Tokyo; Controller of Capital Issues, Ministry of Finance; Finance Secretary, Government of India
and 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 companies
including 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 the
industry. Prior to joining the Company, he was the Managing Director of Tata Chemicals Limited. He has
also had long service with the ICI group of companies in India and with Nagarjuna Fertilisers and Chemicals
Limited 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 a
multitude 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 the
Indian Institute of Management, Bangalore. Prior to joining the Company, he was the Executive Director and
Head Global Human Resources of Tata Consultancy Services Limited. He has rich experience in large-scale
project build-up and delivery, and is highly acclaimed for global sourcing and value creation in operational
efficiencies.
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 in
Research and Development division. He has a deep understanding of the Indian power industry as well as
the global renewables business. He has 23 years of professional experience in the industry and has held
several positions in industry bodies.
Tata Power - Sensex stocks 29

Tata Power:
Key data:
Industry: Electricity generation, Transmission and distribution

No of shares: 221,387,734
Face value: Rs 10
BSE code: 500400
NSE 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 India’s largest private sector electricity generating
company 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 and
South East Asia. TATA power entered into joint venture with Power grid for Tala
transmission project
Location Details - Tata Power Company
Location Type Address

Factory/plant Wind Farm Kavadyadongar Near Village Supa
Ahmednagar -
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Registered Office Bombay House 24, Homi Mody Street
Mumbai - 400001
Maharashtra - India
Phone : 66658282
Fax : 66658801
Email : tatapower@tatapower.com
Internet : N.A.
Distribution Centre Distribution Division Senapati Bapat Marg Lower Parel
Mumbai - 400013
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Divisonal Office Mumbai Integration Facility : 42 Saki Vihar Road Andheri (East)
Mumbai - 400072
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Jojobera Power Plant, Jojobera
Jamshedpur - 831016
Bihar - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Wadi Power Plant Adjoining ACC Wadi Cement Plant,
Gulbarga District - 585225
Karnataka - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Belgaum Power Plant Plot Nos. 1234 to 1240 &1263 to 1297 KIADB Kanbargi Industrial Area
Auto Nagar
Belgaum - 590010
Karnataka - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Hydro Generating Station : Bhira P.O. Bhira Taluka Mangaon
Raigad District - 402308
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Hydro Generating Station P O Bhivpuri Camp Taluka Karjat,
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Hydro Generating Station : Khopoli P O Khopoli Power House Taluka Khalapur
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Divisonal Office Electronics Division : 42/43 Electronic City Electronic City Post Office Hosur Road
Bangalore - 561229
Karnataka - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Development Office Consumer Development Group Technopolis Knowledge Park Nelco Compound Mahakali Caves
Road
Mumbai - 400093
Maharashtra - India
Phone : 56688351,56688355,56688354,56688353
Fax : 56688363
Email : N.A.
Internet : N.A.
Development Office The Tata Power Company Limited Strategy and Business Development Department Second
Floor, GIS Building,
Mumbai - 400009
Maharashtra - India
Phone : 56658627
Fax : 56658626
Email : N.A.
Internet : N.A.
Development Office Tata Power Broadband Division 4th Floor, Tata Vidyut Karyalaya Murzban Road
Mumbai - 400001
Maharashtra - India
Phone : 56658731/32/33
Fax : 56658787
Email : N.A.
Internet : N.A.
Factory/plant Thermal Power Stations Trombay Generating Station, Chembur, Mahul Road
Mumbai - 400074
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Village Shahjahanpur &Pimpalgaon Taluka Parner
Ahmednagar District -
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Village Khandke Taluka & Dist.
Ahmednagar District -
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Taluka Sakri
Dhulia -
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Shil Road, Netivli Kalyan Dist. Thane
Thane District - 421301
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Registered Office Bombay House, 24, Homi Mody Street, Fort,
Mumbai - 400001
Maharashtra - India
Phone : 66658282
Fax : 66658801
Email : investorcomplaints@tatapower.com
Internet : N.A.
Factory/plant Transmission Division Shil Road, Netivli Kalyan Dist. Thane
Thane District - 421301
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Distribution Division Senapati Bapat Marg Lower Parel
Mumbai - 400013
Maharashtra - India
Phone :
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.

• “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 Report

on the business and operations of the Company and the statements of
account 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

(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 for
deferred 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 from

the previous year 1,963.66 1,666.15
(n) Balance 2,774.97 2,340.12
which the Directors have appropriated

as 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 1,963.66

to be carried forward
2. FINANCIAL HIGHLIGHTS
During the year, the Company reported its highest ever Profit after Tax
of Rs. 869.90 crores, as against Rs. 696.80 crores for the previous
year, 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 tax
adjustments, a growth of 25.5%.
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 Operating
Revenue is higher by 21.39%, mainly owing to higher volumes sold
coupled with the new Tariff approved by the Regulator in Mumbai Licence
Area for FY 08. Similarly, the Operating Profit went up by 6.64% due to
operational efficiencies and higher volume of business.
The other income of Rs. 465.84 crores (previous year Rs. 343.99 crores)
is higher predominantly on account of higher gain on sale of long term
investments during the year.
During the year, the Equity Share Capital of the Company increased by
Rs. 22.80 crores on account of the preferential issue of Equity Shares
to Tata Sons Limited (Tata Sons) and the conversion of the Foreign
Currency Convertible Bonds.
Earnings per Share (Basic) showed an increase of 13.6% to Rs. 38.64 as

against Rs. 34.02 in the previous year.
The Consolidated Revenue at Rs. 10,890.86 crores grew by 68.18% and the
Profit 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 of
contribution from the overseas Coal companies where the Company
acquired a 30% stake in June, 2007.
Competition
Last Price Market Cap. Sales Net Profit Total Assets

(Rs. cr.) Turnover
NTPC 194.95 160,745.33 44,126.08 8,201.30 81,202.60
Power Grid Corp 110.85 46,655.01 6,675.85 1,690.61 36,017.65
Reliance Power 173.60 41,608.80 -- 248.90 13,542.68
Reliance Infra 1,264.50 29,910.48 9,868.61 1,066.54 16,696.00
Tata Power 1,163.35 25,759.41 7,236.23 922.20 11,136.18
Neyveli Lignite 126.10 21,155.92 3,354.91 821.09 11,830.96
Torrent Power 169.20 7,993.83 4,424.96 405.09 5,427.01
KSK Energy Vent 221.50 7,666.22 131.77 103.62 -
GVK Power 41.80 5,876.45 26.14 21.00 1,718.23
JaiprakashHydro 93.90 4,610.50 317.91 142.85 1,930.61
Comparison with Competitors
•
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

Scrip Code:500400
Company Name:TATA POWER
For the period:From year 2001 to year 2004
Open Low Close No. of No. of * Range (Rs.)

YEAR High (Rs.) Net T/O (Rs.)
(Rs.) (Rs.) (Rs.) Shares Trades 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 2008

Assets
Fixed Assets
Gross 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 3005.49
Capital work-in-progress 306.39 438.19 211.81 781.05 1681.74
Investments 2728.83 3502.92 3412.17 3570.15 4430
3035.22 3941.11 3623.98 4351.2 6111.74
Total fixed
assets 6205.56 6749.58 6627 7381.51 9117.23
Current assets
Current assets,loans& advances 2005.23 2587.88 3035.72 4105.04 3956.73
8210.79 9337.73 9662.72 11486.55 13073.96
miscellaneous expenses not written 15.61 22.71 15.46 6.17 1.69
Total assets 8226.4 9360.17 9678.18 11492.72 13075.65

liabilities
Share holders fund
equity share capital 197.92 197.92 197.92 197.92 220.72
share application money 0 0 0 0 60.99
reserves& surplus 4810.61 4896.74 5315.91 5793.03 7771.12
Total share
holders 5008.53 5094.66 5513.83 5990.95 8052.82
long term loans
secured loans 721.73 1059.07 946 1354.3 2331.09
unsecured loans 1041.5 1842.75 1850.81 2321.22 725.26
Total dets 1762.23 2901.82 2796.81 3675.52 3083.35
current 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 & Loss

Account
particulars 2005 2006 2007 2008
Income 3918.85 4553.23 4918.53 5909.6
less:
cost of goods sold
Material consumed 2474.83 3198.23 3456.54 4300.69
Manfacturing expenses 171.66 1670.45 187.92 241.47
2646.49 3365.68 3644.46 4542.16
Gross Profit 1272.36 1187.55 1274.07 1367.44
less:
Operating Expenes
Selling expenes 61.27 54.48 255.39 35.18
Adminstrative expenses 171.5 124.13 125.39 179.04
Depreciation 359.62 278.34 291.92 290.5
592.39 456.95 673.26 504.72
Operating profit 679.97 730.6 600.81 862.72
add:
Non operating Income
Other non cash adjustments 0 0 178.17 32.13
Expenses capitalised 20.3 5.38 5.36 2.22
Other recurring income 143.17 170.49 335.89 151.4
Non recurring items 265.3 175.18 39.88 380.3
428.77 351.05 559.3 566.05
PBIT 1108.74 1081.65 1160.11 1428.77
less:
Non Operating expenses
Personnel expenses 155.4 173.68 196.35 249.69
Financial expenses 179.75 152.62 187.11 171.82
Other write offs 18.2 9.82 9.82 5.01
Other non cash adjustments 33.92 4.41 0 0
387.27 340.53 393.38 426.52
PBT 721.47 741.12 766.73 1002.52
less:
Tax
Tax charges 170.11 130.68 70.03 132.25
170.11 130.68 70.03 132.25
Net profit 551.36 610.44 696.8 869.9
Balance
Sheet
Comparative
Particulars 2004 2005 inc\dec per%
Assets
Fixed Assets
Gross 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%
progress
Investments 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 assets
Current assets,loans&
advances 2005.23 2587.88 582.65 29.05%
8210.79 9337.73 1126.94 13.72%
miscellaneous expenses not
written 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 0
share 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:

There is an decrease in fixed assets -1.24% by
when 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 capital
work in progress by 43.03% .But the investments have been increased by 28.36%. The
current 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 owner’s funds there is an equal in equity share capital and
reserves and surplus increased by 1.79%. The total share holder’s capital is increased to
1.71%. 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 are
increased by 13.78% when compared to previous year.
Balance Sheet
comprative
Absolute
Particulars 2005 2006 terms Inc/dec
Assets
Fixed Assets
Gross block 5465.84 5924.74 458.9 8.39%
less:
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 assets
advances 2587.88 3035.72 447.84 17.30%
9337.73 9662.72 324.99 3.48%
written 22.71 15.46 -7.25 31.92%
Total assets 9360.17 9678.18 318.01 3.39%

liabilities
Share holders fund
Total share
holders 5094.66 5513.83 419.17 8.22%
long term loans
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
provisions 1363.69 1367.54 3.85 0.28%
There is an increase in fixed assets 8.39 % by

by 9.94% and the net block is increased by 6.92% .There is a great increase in capital
work 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
(prepaid expenses) are decreased by 31.92%.There is an increase in overall total assets by
3.39% when compared to previous year.
reserves and surplus increaseby 8.56%. The total share holder’s capital is increased to
The total current liabilities are increased by 0.28%.The overall total liabilities are
Balance
Sheet
comprative
Assets
Fixed Assets
Gross block 5924.74 6229.71 304.97 5.10%
less:
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 assets
advances 3035.72 4105.04 1069.32 35.22%
9662.72 11486.55 1823.83 18.87%
written 15.46 6.17 -9.29 -60.09%
Total assets 9678.18 11492.72 1814.54 18.74%

liabilities
Share holders fund
Total share
holders 5513.83 5990.95 477.12 8.65%
long term loans
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
provisions 1367.54 1826.25 458.71 33.54%
There is an increase in fixed assets 5.1% by when

compared with the years 2004 and 2005. The accumulated depreciation is increased by
9.50% and the net block is increased by 0.90% .There is a great increase in capital work
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 (prepaid
expenses) are decreased by 60.09%.There is an increase in overall total assets increaseby
18.74% when compared to previous year.
Balance Sheet
comprative
Assets
Fixed Assets
Gross block 6229.71 6481.99 252.28 4.04%
less:
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 assets
advances 4105.04 3956.73 -148.31 -3.61%
11486.55 13073.96 1587.41 12.14%
written 6.17 1.69 -4.48 -72.60%
Total assets 11492.72 13075.65 1582.93 13.77%

liabilities
Share holders fund
equity share capital 197.92 220.72 22.8 11.51%
share application money 0 60.99 60.99 0
Total share
holders 5990.95 8052.82 2061.87 34.41%
long term loans
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
provisions 1826.25 1939.47 113.22 6.10%
There is an increase in fixed assets 4.04% by

by 8.66% and the net block is decreased by 0.81% .There is a great increase in capital
work in progress by 115.31% .But the investments have been increased by 24.08%. The
current assets are decreased by -3.61% and the miscellaneous expenses (prepaid
expenses) are decreased by -72.60%.There is an increase in overall total assets by 13.77%
when compared to previous year.
34.41%. The total debts have been decreased by 16.11% when compared to previous
year.
Profit & Loss

Account
comprative
Particulars 2005 2006 inc/dec per %
Income 3918.85 4553.23 634.38 16.18%
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%
less:
Operating Expenes
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:
Other 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%
less:
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 cash
adjustments 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 sales

with 2005 sales. When we consider the cost of goods sold items there has been an
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 in
gross profit by -6.66%.so it can be concluded that gross profit will decrease with
corresponding increase in sales.
If we look into operating expenditure there is an decrease in expense for operating the
company. The details of operating expenditures are as follows, there is an decrease in
selling expenses by -11.08%, and administrative expenses by 27.62%, depreciation by
22.60%, and.The operating profit is increased by 7.44%.
The decrease in non operating incomes will help the business to come up with solution
for solving the decreasing expenditure. The non operating incomes are expenses
capitalized by 73.99%, other incomes increased by 16.98%and non recurring items
decreased 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 is
decreased by 12.06%.
After deducting all these expenses and taxes, still the company is able
to gain profits as there is an increase in net profit of 2006 by 10.71%
when compared it with net profit of 2006
Profit & Loss

Account
comprative
particulars 2006 2007 inc/dec per%
Income 4553.23 4918.53 365.3 8.02%
less:
cost of goods sold
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%
less:
Operating Expenes
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:
Other non cash adjustments 178.17 178.17 0.00%
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%
less:
Financial expenses 152.62 187.11 34.49 22.59%
Other write offs 9.82 9.82 0 0.00%
Other non cash
adjustments 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 sales

with 2005 sales. When we consider the cost of goods sold items there has been an
increase in materials consumed by 8.07% and manufacturing expenses by 12.22% . when
we compare the gross profit of both the years there is an increase in gross profit by
8.28%.so it can be concluded that gross profit will increase with corresponding increase
in sales.
If we look into operating expenditure there is an increase in expense for operating the
company. The details of operating expenditures are as follows, there is an increase in
selling expenses by 368.77%, and administrative expenses by 1.46%, depreciation by
0.04%,.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 by

22.50% ,.The profit before tax is increased by 3.44%.
Profit & Loss Account
comprative
particulars 2007 2008 inc/dec per%
Income 4918.53 5909.6 991.07 20.14%
less:
cost of goods sold
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%
less:
Operating Expenes
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:
Other non cash adjustments 178.17 32.13 -146.45 -81.96%
Other recurring income 335.89 151.4 -184.49 54.92%
Non recurring items 39.88 380.3 340.42 853.36%
559.3 566.05 6.75 1.20%
PBIT 1160.11 1428.77 268.66 23.15%
less:
Financial expenses 187.11 171.82 -15.29 -8.17%
Other write offs 9.82 5.01 -4.81 -48.98%
Other non cash
adjustments 0 0 0 0.00%
393.38 426.52 33.14 8.42%
PBT 766.73 1002.52 235.52 30.71%
less:
Tax
Tax charges 70.03 132.25 -62.32 88.99%
70.03 132.25 -62.32 88.99%
Net profit 696.8 869.9 173.1 24.84%
INTERPRETATION:
Sales were increased by 16.7920.14% when we compare 2006

sales with 2005 sales. When we consider the cost of goods sold items there has been an
increase in materials consumed by 24.42% and manufacturing expenses by 28.49%,when
we compare the gross profit of both the years there is an increase in gross profit by
24.63%.so it can be concluded that gross profit will increase with corresponding increase
in sales.
If we look into operating expenditure there is an decrease in expense for operating the
company. The details of operating expenditures are as follows, there is an decrease in
selling expenses by 86.22%, and administrative expenses increases by 42.15%,
depreciation decreases by -0.48%, and .The operating profit is increased by 43.59%.
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
decreases by -58.50%, other incomes by 54.92%and non recurring items increased by
853.56%.The profit before interest and tax is increased by 23.15%.
As we look into non operating expenses there is an increase in financial expenses by

decreases and decrease in other non cash adjustments by -8.7.The profit before tax is
increased by 88.99%.
Balance
Sheet
C0MMON SIZE
Particulars 2004 per% 2005 per% 2006 per%
Assets
Fixed Assets
Gross block 5534.7 67.27% 5465.84 58.39% 5924.74 61.21%
less:
accmulated depreciation 2364.36 28.74% 2657.37 28.45% 2921.72 30.18%
Net block 3170.34 38.53% 2808.47 30.00% 3003.03 31.02%
Capital work-in-
progress 306.39 3.72% 438.19 4.68% 211.81 2.10%
Investments 2728.83 33.17% 3502.92 37.42% 3412.17 35.27%
3035.22 36.89% 3941.11 4.17% 3623.98 37.44%
Total fixed
assets 6205.56 75.43% 6749.58 72.10% 6627 68.47%
Current assets
advances 2005.23 24.37% 2587.88 27.64% 3035.72 31.36%
8210.79 99.81% 9337.73 99.76% 9662.72 99.84%
written 15.61 18.00% 22.71 0.20% 15.46 0.15%
Total assets 8226.4 100.00% 9360.17 100% 9678.18 100.00%

liabilities
Share holders fund
equity share capital 197.92 24.06% 197.92 2.11% 197.92 2.04%
share application money 0 0.00% 0 0% 0 0
reserves& surplus 4810.61 58.47% 4896.74 52.31% 5315.91 54.92%
Total share
holders 5008.53 60.88% 5094.66 54.42% 5513.83 56.97%
long term loans
secured loans 721.73 8.76% 1059.07 11.31% 946 9.77%
unsecured loans 1041.5 12.66% 1842.75 1.97% 1850.81 19.12%
Total dets 1762.23 21.42% 2901.82 31.00% 2796.81 28.89%
current liabilities
provisions 1454.64 17.68% 1363.69 14.56% 1367.54 14.13%
Total liabilities 822.4 100.00% 9360.17 100.00% 9678.18 100.00%
Balance
Sheet
C0MMON SIZE
Particulars 2007 per% 2008 per%
Assets
Fixed Assets
Gross block 6229.71 54.20% 6481.99 49.57%
less:
accmulated depreciation 3199.4 27.83% 3476.5 26.58%
Net block 3030.31 26.36% 3005.49 22.98%
Capital work-in-
progress 781.05 6.79% 1681.74 12.86%
Investments 3570.15 31.06% 4430 33.87%
4351.2 37.86% 6111.74 46.74%
Total fixed
assets 7381.51 64.22% 9117.23 69.72%
Current assets
advances 4105.04 35.71% 3956.73 30.26%
11486.55 99.94% 13073.96 99.98%
written 6.17 0.05% 1.69 0.01%
Total assets 11492.72 100.00% 13075.65 100.00%

liabilities
Share holders fund
equity share capital 197.92 1.72% 220.72 1.68%
share application money 0 0% 60.99 0.40%
reserves& surplus 5793.03 50.40% 7771.12 59.43%
Total share
holders 5990.95 52.12% 8052.82 61.58%
long term loans
secured loans 1354.3 11.78% 2331.09 17.82%
unsecured loans 2321.22 20.28% 725.26 5.70%
Total dets 3675.52 31.98% 3083.35 23.58%
current liabilities
provisions 1826.25 15.89% 1939.47 14.83%
Total liabilities 11492.72 100.00% 1939.47 100.00%
ANALYSIS OF COMMON SIZE STATEMENT OF BALANCE SHEET:

There in common a size statement total asset and total liabilities are considered into
100% for all years. Net block is 38.53% compared assets and liabilities are 100%. total
current assets are 99.81%. Total share holders are 60.88% and current liabilities are
17.68% compared with 100% liabilities and assets.
100% for all years. Net block is 30.00% compared assets and liabilities are 100%. Total
current assets are 99.76%.Total share holders are 54.42% and total current liabilities are
Profit & Loss

Account
C0MMON SIZE
particulars 2005 per % 2006 %
Income 3918.85 100% 4553.23 100%
less:
cost of goods sold
Material consumed 2474.83 63.15% 3198.23 86.05%
Manfacturing expenses 171.66 4.38% 1670.45 3.67%
Total cost of goods sold 2646.49 67.53% 3365.68 73.91%
Gross Profit 1272.36 32.46% 1187.55 26.08%
less:
Operating Expenes
Selling expenes 61.27 1.56% 54.48 1.19%
Adminstrative expenses 171.5 4.37% 124.13 2.72%
Depreciation 359.62 9.17% 278.34 6.11%
Total operating
expenses 592.39 15.11% 456.95 10.03%
Operating profit 679.97 17.39% 730.6 16.04%
add:
Other non cash
adjustments 0 0% 0 0%
Expenses capitalised 20.3 0.51% 5.38 0.11%
Other recurring income 143.17 3.65% 170.49 3.74%
Non recurring items 265.3 6.76% 175.18 3.84%
Total non operating income 428.77 10.94% 351.05 7.70%
PBIT 1108.74 28.29% 1081.65 23.75%
less:
Personnel expenses 155.4 3.96% 173.68 3.81%
Financial expenses 179.75 4.58% 152.62 3.35%
Other write offs 18.2 0.46% 9.82 0.21%
Other non cash
adjustments 33.92 0.86% 4.41 0%
387.27 9.88% 340.53 7.47%
PBT 721.47 18.14% 741.12 16.27%
less:
Tax
Tax charges 170.11 4.34% 130.68 2.87%
170.11 4.34% 130.68 2.87%
Net profit 551.36 14.06% 610.44 13.40%
Profit & Loss Account
C0MMON SIZE
particulars 2007 % 2008 %
Income 4918.53 100% 5909.6 100%
less:
cost of goods sold
Material consumed 3456.54 70.27% 4300.69 72.77%
Manfacturing expenses 187.92 3.82% 241.47 4.74%
Total cost of goods sold 3644.46 74.09% 4542.16 76.86%
Gross Profit 1274.07 25.90% 1367.44 23.13%
less:
Operating Expenes
Selling expenes 255.39 5.19% 35.18 0.59%
Adminstrative expenses 125.39 2.56% 179.04 3.02%
Depreciation 291.92 5.93% 290.5 4.90%
Total operating expenses 673.26 13.68% 504.72 8.54%
Operating profit 600.81 12.21% 862.72 14.59%
add:
Other non cash adjustments 178.17 3.62% 32.13 0.54%
Expenses capitalised 5.36 0.10% 2.22 3.75%
Other recurring income 335.89 6.82% 151.4 2.56%
Non recurring items 39.88 0.81% 380.3 6.43%
Total non operating income 559.3 11.37% 566.05 9.57%
PBIT 1160.11 23.58% 1428.77 24.17%
less:
Personnel expenses 196.35 3.99 249.69 4.22
Financial expenses 187.11 3.8 171.82 2.9
Other write offs 9.82 0.19 5.01 0.09
Other non cash adjustments 0 0 0 0
393.38 8 426.52 7.21
PBT 766.73 15.58 1002.52 16.95
less:
Tax
Tax charges 70.03 1.42 132.25 2.23
70.03 1.42 132.25 2.23
Net profit 696.8 14.16 869.9 14.72
INTERPRETATION OF COMMON SIZE STATEMENT OF PROFIT&LOSS

ACCOUNT:
There in common size statement sales are considered into 100% cost of goods sold is
63.15% when compared with sales 100% and gross profit is 32.46 %compared with sales
100%. If we look into the operating expenses is 17.34%, still the company could able to
generate net profit is 14.06%.
73.91% when compared with sales 100% and gross profit is 26.08%compared with sales
74.09%when compared with sales 100% and gross profit is 25.90% compared with sales
76.86% when compared with sales 100% and gross profit is 23.13% compared with sales
Balance
Sheet
Trend
Particulars 2004 per% 2005 2006 2007 2008
Assets
Fixed Assets
Gross block 5534.7 100% 107.04% 107.04% 112.11% 117.11%
less:
accmulated depreciation 2364.36 100% 112.39% 123.27% 135.31% 147.03%
Net block 3170.34 100% 88.58% 94.72% 95.58% 94.80%
Capital work-in-
progress 306.39 100% 142.01% 69.13% 254.92% 584.88%
Investments 2728.83 100% 128.36% 125.04% 130.83% 162.37%
3035.22 100% 129.84% 119.39% 143.35% 201.36%
Total fixed
assets 6205.56 100% 108.76% 106.79% 118.94% 146.92%
Current assets
advances 2005.23 100% 129.05% 151.39% 204.71% 197.32%
8210.79 100% 113.72% 117.68% 139.89% 159.22%
written 15.61 100% 145.48% 99.03% 39.52% 10.82%
Total assets 8226.4 100% 113.78% 117.58% 139.70% 158.94%

liabilities
Share holders fund
equity share capital 197.92 100% 100 100% 100% 111.51%
share application money 0 100% 0 0 0 0.00%
reserves& surplus 4810.61 100% 101.79% 110.50% 120.42% 161.54%
Total share
holders 5008.53 100% 101.71% 110.08% 119.61% 160.78%
long term loans
secured loans 721.73 100% 146.74% 131.07% 187.64% 322.98%
unsecured loans 1041.5 100% 176.93% 177.70% 222.87% 72.22%
Total dets 1762.23 100% 164.66% 158.70% 208.57% 174.96%
current liabilities
provisions 1454.64 100% 93.74% 94.01% 125.54% 133.32%
Total liabilities 822.4 100% 113.78% 117.64% 139.70% 158.94%
ANALYSIS OF BALANCE SHEET FOR TATA powers IN TREND ANALYSIS:

There in trend analysis we take the total base year values as 100% and compare the rest
of the following years with this base year. Here we take the values of 2004 as base year.
The fixed assets are increased to108.76% for the year 2005 and net block by 88.58% and
total assets by 113.78%. The share holder’s equity is equal no change in it,and current
liabilities by 93.74%.The total liabilities by 113.78%.
The fixed assets are increased to 106.79% for the year 2006 and net block by 94.74% and
total assets by 117.58%. The current liabilities by 94.01%.The total liabilities by
117.64%.
total assets by 139.70%. The and current liabilities by 125.54%.The total liabilities by
139.70%.
total assets by 158.94%. The share holder’s equity is increased by 111.51% and current
liabilities by 133.32%.The total liabilities by 158.94%.
Profit & Loss

Account
Trend
particulars 2005 per% 2006 2007 2008
Income 3918.85 100% 116.18% 125.50% 150.79%
less:
cost of goods sold
Material consumed 2474.83 100% 129.23% 139.66% 173.77%
Manfacturing expenses 171.66 100% 97.54% 109.47% 140.66%
2646.49 100% 127.17% 137.71% 171.62%
Gross Profit 1272.36 100% 93.33% 100.13% 107.50%
less:
Operating Expenes
Selling expenes 61.27 100% 88.91% 416.82% 57.14%
Adminstrative expenses 171.5 100% 72.37% 73.44% 104.39%
Depreciation 359.62 100% 77.39% 81.17% 22.57%
592.39 100% 77.13% 113.65% 85.20%
Operating profit 679.97 100% 107.44% 88.35% 126.87%
add:
Other non cash adjustments 0 100% 0.00% 0.00% 0.00%
Expenses capitalised 20.3 100% 26.50% 26.40% 10.93%
Other recurring income 143.17 100% 119.08% 234.60% 105.75%
Non recurring items 265.3 100% 66.03% 15.03% 143.35%
428.77 100% 81.87% 130.44% 132.01%
PBIT 1108.74 100% 97.55% 104.63% 128.86%
less:
Personnel expenses 155.4 100% 111.76% 126.35% 160.67%
Financial expenses 179.75 100% 84.90% 104.09% 95.58%
Other write offs 18.2 100% 53.95% 53.95% 27.52%
Other non cash adjustments 33.92 100% 13.00% 0.00% 0.00%
387.27 100% 87.93% 101.57% 110.13%
PBT 721.47 100% 102.72% 106.27%
less:
Tax
Tax charges 170.11 100% 76.82% 41.16% 77.80%
170.11 100% 76.82% 41.16% 77.80%
Net profit 551.36 100% 110.71% 126.37% 157.77%
INTERPRETATION OF TREND ANALYSIS FOR PROFIT AND LOSS ACCOUNT

OF TATA POWERS
The sales is increased to 116.18% for 2006 and gross profit by 93.33%, operating profit
by 107.44%, PBIT by 97.55%, PBT by 102.72% and Net profit by 110.71%.
The sales is increased to 125.50% for 2007 and gross profit by 100.30%, operating profit
The sales is increased to 150.79% for 2008and gross profit by 107.50%, operating profit
CURRENT RATIO:
Rati
Years Current Assets Current Liabilities o
2004 2020.84 1454.64 1.38
2005 2610.59 1363.69 1.91
2006 3051.18 1367.54 2.23
2007 4111.21 1826.25 2.25
2008 3958.42 1939.47 2.04
Intrerpretation………
While comparing 2004&2005 there is slight increase in ratio.comparing

with every year its gradually increasing.
DEBT EQUITY RATIO:

Years Total debt Share Holders Equity Ratio
2004 1762.23 5008.53 0.35
2005 2091.82 5094.66 0.56
2006 2796.81 5513.83 0.5
2007 3675.52 5990.95 0.61
2008 3083.35 8082.82 0.38
DEBT TO ASSET RATIO:
Years Total Debt Total Assets Ratio

2004 1762.23 8226.4
2005 2091.82 9360.17
2006 2796.81 9678.18
2007 3675.52 11492.72
2008 3083.35 13075.65
PROPRIETORY RATIO:
Years Owners Funds Total Assets Ratio

2004 5008.53 8226.4 0.6
2005 5094.66 9360.17 0.54
2006 5513.83 9678.18 0.56
2007 5990.95 11492.72 0.52
2008 8082.82 13075.65 0.61
CAPITAL GEARING RATIO:
Years Total debts Net Worth Ratio

2004 1762.23 5008.53 0.35
2005 2091.82 5094.66 0.56
2006 2796.81 5513.83 0.5
2007 3675.52 5990.95 0.61
2008 3083.35 8082.82 0.38
GROSS PROFIT RATIO:
Years Gross Profit Netsales 100% Ratio

2005 1272.36 3918.85 100 32.46%
2006 1187.55 4553.23 100 26.08%
2007 1274.07 4918.53 100 25.90%
2008 1367.44 5909.6 100 23.13%
OPERATING PROFIT RATIO:
Years Operating Profit Netsales 100% Ratio

2005 3238.88 3918.85 100 82.64
2006 3822.63 4553.23 100 83.95
2007 4317.72 4918.53 100 87.87
2008 5046.88 5909.6 100 85.40
NET PROFIT RATIO:
Years EAT Netsales 100% Ratio

2005 551.36 3918.85 100 14.06
2006 610.44 4553.23 100 13.40
2007 696.8 4918.53 100 14.16
2008 869.0 5909.6 100 14.70
OPERATING RATIO:
Years Cogs+op. expenses Netsales 100% Ratio

2005 1108.74 3918.85 100 28.29
2006 1081.65 4553.23 100 23.75
2007 1160.11 4918.53 100 23.58
2008 1428.77 5909.6 100 24.17
RETURN ON SHARE HOLDER’S EQUITY:
Years EAT Net Worth 100% Ratio
2005 551.36 5094.66 100 10.82

2006 610.44 5513.83 100 11.07
2007 696.8 5990.95 100 11.63
2008 869.0 8082.82 100 10.79
EARNING’S PER SHARE:
Years EAT O/s equity shares RATIO
2005 551.36 1978.98 0.27

2006 610.44 1978.98 0.30
2007 696.8 1978.98 0.35
2008 869.0 1978.98 0.43
RETURN ON INVESTMENTS:
Years EAT Total Assets 100% Ratio
2005 551.36 9360.17 100 5.89

2006 610.44 9678.18 100 6.30
2007 696.8 11492.72 100 6.06
2008 869.0 13075.65 100 6.64
TOTAL ASSETS TURNOVER RATIO:
Years Total Assets Ratio
2005 3918.85 9360.17 0.41

2006 4553.23 9678.18 0.47
2007 4918.53 11492.72 0.42
2008 5909.6 13075.6 0.45
WORKING CAPITAL TURNOVER RATIO:
working capital
Years NET SALES (C.A-C.L) Ratio
2005 3918.85 1246.40 3.14

2006 4553.23 1683.64 2.7
2007 4918.53 2284.96 2.15
2008 5909.6 2018.95 2.92

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TATA POWERS

Mini project submitted to JNTU Kakinada for the partial

1ST YEAR MBA..

K.VENKATARAO.MBA, M.COM, M.PHIL.

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.

BALANCE SHEET & P&L A/C

Company analysis deals with the estimation of return and individual

Internal information consists of data and events made public by companies

External source of information are those generated independently outside the

1. Financial statements and analysis.

2. Tools to be used for the analysis of the financial statements are:

EVALUTION OF WORKINGS OF THE TOP MANAGEMENT:

The most important variable affecting the future prospectors of a company is

• Is management aggressive and growth orient.

• Is management looking ahead resting on a

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

• As the firm use only marketing channel for its sales.

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

• Thus the firm properly utilized its board of directors.

• Thus management satisfactorily responds regular intervals?

The study has been carried out by the following objectives.

1. To study the company analysis i.e. financial analysis.

The secondary source of information had obtained from the company

ANALYSIS AND INTERPRETATION:

Financial statements are prepared primarily for decision-making. The statements

(a) Breaking financial statements into simpler ones,

(c) Rearranging the figures given in financial statements and

(d) Finding out ratios and percentages.

TOOLS OF FINANCIAL ANALYSIS (METHODS):

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 Analysis

COMPARATIVE FINANCIAL STATEMENT:

The preparation of comparative financial and operating statement is an important

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.

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. People

• A prospective shareholder would like to know whether the business is profitable

STATEMENT OF CHANGES IN WORKING CAPITAL:

(iii) Sale of Investment