The merger of The Andhra Valley Power Supply Company Limited, The Tata Hydro-Electric Power Supply Company Limited and Jamshedpur Power Company Limited was completed during the year with effect from 1^st April 2000. This makes the Company the largest private sector power utility in the country.

Highlights for the year 2000-2001 – Audited (year ended 31.3.2001)

Highlights given hereunder are in comparison with the combined performance of the three Tata Electric Companies for the previous year:

The revenue from Sales was Rs.3361 crores as compared to Rs.2781 crores in the previous year, an increase of Rs.580 crores (+21%). (Tata Power – Rs.1390 crores in the previous year).

The Sales of electricity were 9457 MUs during the current year as compared to 9205 MUs in the previous year, an increase of 252 MUs (+2.7%).

The first 120 MW at Jamshedpur was synchronised ahead of schedule. The 81.3 MW Belgaum Unit and the 24 MW replacement Unit at Khopoli – Hydro Plant were also commissioned to schedule during the current year. The full benefits from these will accrue in the following years.

The fuel costs were higher during the year due to the prevailing higher international prices of fuel as compared to the previous year which were recovered through the tariff.

The Distributable Profits for the current year were Rs.363 crores as compared to Rs.417 crores for the previous year (Tata Power - Rs.207 crores in the previous

year). The profits in the previous year were higher on account of some exceptional items like profit on repurchase of Euro Notes and sale of investments.

Hydro generation was lower due to leaner monsoon during the year.

The Corporate Tax for the current year at Rs.127 crores was lower compared to Rs.182 crores in the previous year mainly due to the capitalisation of the new Jojobera, Belgaum and Khopoli Units.

New Initiatives

During the year the Company acquired 100% Equity stake in Tata Petrodyne Limited, a Company engaged in oil and gas exploration and production which has established very encouraging prospects of commercially exploitable gas and oil reserves.

Consequent upon the merger, Chemical Terminal Trombay Limited (CTTL) has become a subsidiary of the Company (Tata Power holding 72%). CTTL is engaged in the business of storing and handling of oils and chemicals. Similarly, Af-Taab Investment Company Limited became a subsidiary of the Company, consequent upon the merger.

The Company’s new thrust was initiated in communication business by implementing the project for completing Mumbai Fibre Optic Network. This project will be commissioned by August 2001.

The Board of Directors have recommended a dividend of 50% as compared to 42% last year.

A copy of the audited results of the Company for the financial year 2000-2001 as per the Listing Agreements with the Stock Exchanges is attached.