Reporting of Segmentwise revenue, Results and Capital employed for the Quarter ended 31^st December 2007 and nine month period ended 31^st December 2007

The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

1. (a) 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 1^st April 2004 for a period of five years. CERC has issued final tariff orders for all the stations/units except for three stations/units. The company filed appeals with the Appellate Tribunal for Electricity (ATE) against the final tariff orders issued by CERC. The ATE has disposed off the appeals in respect of most of the stations and granted relief to the company with a direction to CERC for recomputation of tariff. Pending recomputation of tariff by CERC, the company has provisionally accounted sales of Rs. 76,944 million for the quarter and Rs. 213,866 million for the nine month period ended 31^st December 2007 in respect of all such stations/units based on ATE orders. CERC has preferred an appeal in the Hon'ble Supreme Court on some of the issues in the ATE orders which has been admitted.

In respect of three stations/units where CERC has yet to issue final tariff orders, sales of Rs. 9,609 million for the quarter and Rs. 25,376 million for the nine month period ended 31^st December 2007 have been recognised based on the provisional tariff orders/principles enunciated by CERC.

(b) Further, sales in respect of one of the stations has been provisionally recognised at Rs. 3,837 million for the quarter and Rs. 10,136 million for the nine month period ended 31^st December 2007 on the basis of principles enunciated under the Regulations, 2004 of CERC as against the billing of Rs. 3,883 million for the quarter and Rs. 10,273 million for the nine month period ended 31^st December 2007 as per tariff order issued by CERC, prior to the takeover of the station by the company.

(c) Sales pertaining to previous years amounting to Rs. 2,604 million during the quarter and Rs. 12,972 million during the nine month period ended 31^st December 2007 have been provisionally recognized in line with the principles enunciated in judgments passed by ATE/Orders issued by CERC.

(d) Sales include Rs. 7,564 million (inclusive of Rs. 1,481 million for previous years) for the quarter and Rs. 15,875 million (inclusive of Rs. 1,481 million for previous years) for the nine month period ended 31^st December 2007, (corresponding previous quarter Rs. 3,890 million and Rs. 16,572 million for the previous nine month period) on account of income tax recoverable from the customers.

(a) Rs. 1,016 million for the quarter and Rs. 2,972 million for the nine month period ended 31^st December 2007 towards pending pay revision of employees due w.e.f 1^st January 2007.

(b) Rs. 940 million for the quarter and Rs. 3,059 million for the nine month period ended 31^st December 2007 towards employees benefits including Rs. 1,416 million relating to the year 2006-07.

3. The company has followed the same accounting policies as that of the previous year except for the following change necessitated due to AS 11 effective from 1^st April 2007, which is part of the Companies (Accounting Standard) Rules, 2006.

Exchange differences, in respect of loans (other than regarded as borrowing cost)/deposits/liabilities relating to fixed assets/capital work-in-progress acquired from a country outside India, arising out of transactions entered after 01.04.2004, have been debited/credited to Profit & Loss Account, which were hitherto adjusted in the carrying cost of related assets. The impact of the same on the profit for the quarter and nine month period ended 31st December 2007 is not material.

4. Interest and Finance charges include exchange differences regarded as adjustment to interest costs amounting to Rs. 422 million (debit) for the quarter and Rs. 2,592 million (credit) for the nine month period ended 31^st December 2007 (corresponding previous quarter Rs. 1,569 million (credit) and Rs. 411 million (credit) for the corresponding previous nine month period).

5. The company has implemented SAP-ERP System at some units of the company during the nine month period ended 31^st December 2007. As a result:

(a) the valuation of inventory items issued has undergone a change from monthly weighted average to moving weighted average at these units.

(b) for computation of depreciation, life of the assets has been rounded down to nearest months as against fractional years.

The impact on profit for the quarter and nine month period due to such changes is not material

6. Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31^st December 2007:

7. The above results have been reviewed by the Audit Committee of the Board of Directors in the meeting held on 29^th January 2008 and approved by the Board of Directors in the meeting held on 30^th January 2008.

8. The above results have been reviewed by the Statutory Auditors as required under clause 41 of the listing agreements.

9. Previous period figures have been regrouped/rearranged wherever necessary.