The following Subsidiaries and Joint Ventures have been considered for the purpose of preparing Consolidated Financial Results as per Accounting Standard on (a) Consolidated Financial Statements (AS 21) and (b) Financial Reporting of Interests in Joint Ventures (AS 27)

The Central Electricity Regulatory Commission (CERC) has notified by regulations in March 2004, the terms and conditions for determination of tariff applicable with effect from 1st April 2004 for a period of five years. Pending final determination of tariff for the period 1st April 2004 onwards, CERC has directed by notification that on provisional basis, the annual fixed charges as applicable on 31st March 2004 shall be billed at target availability and variable charges based on norms of operation notified in Regulation, 2004. The amount billed for the year on this basis is Rs. 268,301 million(previous year Rs.230,663 million). Since the amount billed is subject to adjustment with effect from 1st April 2004, pending final determination of the tariff by CERC, sales amounting to Rs. 257,179 million(previous year Rs.221,380 million) for the year have been provisionally recognised on the basis of principles enunciated by the CERC in Regulations, 2004.


Further, Rs. 603 million pertaining to previous year has been recognised in sales due to revision in the amounts provisionally billed based on orders of the CERC/Appellate Tribunal for Electricity.

In case of stations for which final tariff orders have been issued by the CERC for the period up to 31st March, 2004, sales for the said period amounting to Rs. 2,282 million (previous year Rs.2768 million) has been accounted for during the year.

The Company has followed the same accounting policies as that of year 2004-05 except for the following changes :

Exchange differences on foreign currency loans contracted before 01.04.2000 for the acquisition of fixed assets within India were hitherto adjusted in the carrying cost of related fixed assets. In line with the opinion received from the Institute of Chartered Accountants of India during the year, the Company has treated such exchange differences to the extent regarded as adjustment to the interest cost as "borrowing costs" w.e.f 01.04.2000. Consequently, during the current year, there has been decrease in Interest and Finance Charges by Rs1,364 million, increase in Depreciation by Rs166 million, Prior period adjustment of Rs1,986 million and decrease in profit by Rs788 million.

As per new accounting policy, during the year Rs413 million has been amortised and adjusted against the interest income from corresponding investments. As a result profit for the year is lower by Rs45 million and Capital Work-In-Progress is higher by Rs368 million.

Provision for current tax is after adjustment due to refund of income amounting to Rs5,536 million pertaining to previous years and consequent adjustments made in income-tax recoverable is Rs5,090 million.

Pursuant to the Government of India Scheme for settlement of dues of State Electricity Boards (Scheme), Governments of Jharkhand and Bihar issued notification during December 2005 for issue of 8.5% Tax-Free special bonds with effect from 1st October, 2001 for Rs3,378 million and Rs4,277 million respectively towards outstanding dues. Accordingly, Investment of Rs7,655 million, interest income on the bonds amounting to Rs2,928 million, rebate of Rs1,198 million payable to State Electricity Boards/Successor entities under the scheme have been recognised, including Rs2,278 million towards interest and Rs892 million towards rebate pertaining to the period upto 31st March, 2005.

The Company has raised Rs.26,840 million through public issue of shares in 2004-05. The entire proceeds of the issue, net of issue expenses, were utilised for part financing the capital expenditure on the specified projects.

The Board of Directors has recommended 8% final dividend. Thus total dividend for the year works out to 28% including interim dividend of 20% paid during the year.

The audited accounts are subject to review by the Comptroller and Auditor General of India under section 619 (4) of the Companies Act, 1956.

Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31st March, 2006

The above results have been reviewed by the audit committee of the Board of Directors in their meeting held on 31st May 2006 and approved and taken on record by the Board of Directors in the meeting held on 31st May 2006.

Figures for the previous period have been regrouped/ rearranged wherever necessary.