DETERMINANTS OF CORPORATE SAVING IN INDIAN POWER INDUSTRY WITH REFERENCE TO TATA POWER LIMITED AND RELIANCE INFRASTRUCTURE LIMITED ( pages 54-74) by Dr. K. C. Biswal* and Junybirth T Sangma** in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

Corporate saving is part of the net profit after tax which is not distributed as dividend but is reinvested in the business in any financial year. It is also known as retained earnings, earning retention, plough back of profit, internal finance, and internal source. Orwel (2010) viewed that corporate saving are internal sources of finance available to an organization and have got many an advantage as it is readily available for use, cheaper than external equity, do not cause ownership dilution, and have got a positive connotation as the stakeholders perceive that the company has potential investment opportunities. Campbell (2012) noted that the prime idea behind earnings retention is that the more the company retains the faster has chances for growth. The present study identifies the determinants that contribute in supporting the corporate sav ing as an alternate solution for present financial constraints and future growth in Indian power sector. The Indian power sector characterized by loss making industry, less attractive for investment, external financial constraints and mostly the liquidity position impacted by the irregular payment from the consumers and other parties, have chosen for the study with a special reference to Tata power Ltd and Reliance Infrastructure Ltd. The secondary data is collected for a period of 16 years i: e 2000-01 to 2015-16. The data was summarized using excel spreadsheets and analyzed using the Statistical Package for Social Sciences. The multiple regression equations is used in the study and fit by the method of coefficient of determination (R2), individual regression coefficient, ―T‖ value, ―F‖ ratio, trend analysis, graphs and charts which are used as the statistical techniques to analyze the data and to measure the possibility of the relationships among the variables. The result for Tata power Ltd revealed PAT, CF and Interest payment plays an active role in determining the Corporate Saving in Tata Power Ltd, where CF is found to have highly significant and Interest payment is indirectly significant in determining the Corporate Saving. Taking the model into consideration , a model with PAT and IP provides best support of Goodness of Fit having a value of R2 of .975 (i.e. 97.5% variation).. The result for Reliance Infrastructure Ltd showed that the predicting variables that plays active role in determining the corporate Saving are PAT, CF and PYD, out of which PYD is highly significant. As model into consideration, a model with PAT single handedly best support in determining the Corporate saving having a Goodness of Fit (R2) of .999 (i.e. 99.9% variation).
Keywords: Corporate saving, firm‘s growth, profit after tax, cash flow etc.