Final Results

Notes:

1. The Board has recommended dividend of Rs.7.30 per equity share for the year 2011-12

2. The final determination in the matter of Standby Charges payable for the years 1998-99 to 2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme Court for final hearing. The Company has so far fully accounted the liability of Rs. 515.60 crore as determined earlier by Maharashtra Electricity Regulatory Commission (MERC).

3. The final determination in respect of the claim by TPC of Rs. 323.87 crore, along with interest based on the Orders passed by MERC / Appellate Tribunal for Electricity (ATE) towards difference in energy charge and minimum offtake charges for energy supplied by TPC at 220 kV interconnection is pending before Supreme Court for final hearing. The Company has complied with the interim order direction of depositing Rs. 25 crore with the Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98 crore.

4. Pursuant to the approval of the Board of Directors for buy-back of Equity shares under Section 77A of the Companies Act, 1956, the Company bought-back 45,262 equity shares during the quarter ended March 31, 2012. Consequently the paid-up capital stands reduced to Rs. 263.03 crore.

5. Pursuant to the clarification provided by the Ministry of Corporate Affairs vide circular dated May 31, 2011 and based on the legal opinion obtained, the Company has provided for depreciation in respect of its electricity business following the rates as well as methodology notified by the Electricity Regulators retrospectively w.e.f April 1, 2009 as against Schedule XIV to the Companies Act, 1956 during the quarter ended June 30, 2011. Accordingly, depreciation of Rs. 227.18 crore for the years 2009-10 and 2010-11 was written back during the quarter ended June 30, 2011 and included in other operating income. Similarly, the depreciation charge for the current quarter and year ended March 31, 2012 is lower and profit before tax is higher by Rs.15.23 crore and Rs.55.96 crore respectively on account of such change.

6. Pursuant to the Scheme of Arrangement sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated April 20, 2012, with appointed date as February 1, 2012, Reliance Energy Limited (REL), Reliance Energy Generation Limited (REGL), Reliance Goa and Samalkot Power Limited (RGSPL), Reliance Infraventures Limited (RIVL) and Reliance Property Developers Limited (RPDPL), wholly owned subsidiaries of the Company, amalgamated with the Company; and Reliance Infrastructure Engineers Private Limited (RIEPL), a wholly owned subsidiary of the Company, with appointed date as April 1, 2011 demerged its container business into the Company. The following accounting treatment, inter alia, has been given to give effect to the Scheme:

a) All Assets and Liabilities amounting to Rs. 1,212.60 crore (Net), of the Subsidiaries have been recorded in the books of the Company at their respective book value, and corresponding equivalent amount is credited to the Capital Reserve.

b) Investments in REL, REGL, RIVL, RGSPL and RPDPL amounting to Rs. 987.00 crore have been written off and an equivalent amount has been withdrawn from the General Reserve. Had the Scheme not prescribed the above treatment, General Reserve would have been higher and Capital Reserve would have been lower by Rs.1,212.60 crore.

c) The treatment has been referred to by the Auditors in their report.

7. Pursuant to the option exercised by the Board of Directors of the Company, being an option available under the Scheme of Amalgamation of Reliance Infraprojects Limited (RIPL), a wholly owned subsidiary, with the Company sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated March 30, 2011, with appointed date as April 1, 2010, during the quarter and year withdrawn Rs. 933.42 crore from Provision for Extraordinary and Exceptional items, created out of the General Reserve, and credited to the Profit & Loss account, to offset the Cancellation on Investments and Write off of Bad Debts and Income Accrued on Investment, determined as exceptional items by the Board of Directors in terms of the aforesaid scheme. The treatment has been referred to by the Auditors in their report.

8. During the year, in line with the notification dated December 29, 2011 issued by the Ministry of Corporate Affairs, the Company has exercised the option given in the Paragraph 46A of the Accounting Standard-11 "The Effect of Change in Foreign Exchange Rates" of capitalising the foreign exchange loss/gain arising on long term foreign currency monetary items relating to acquisition of depreciable capital assets and depreciating the same over the balance life of such assets and in other cases amortising the foreign exchange loss/gain over the balance period of such long term foreign currency monetary items. Accordingly, the Company has carried forward unamortised portion of Rs.109.55 crore as on March 31, 2012 and the same is grouped under 'other non-current liabilities'. Had the Company followed earlier practice of charging off exchange difference in statement of profit and loss account, the profit before tax for the year ended March 31, 2012 would have been higher by Rs.109.55 crore and profit for the quarter ended March 31, 2012 would have been lower by Rs.42.43 crore .

9. There were no extraordinary items during the quarter/year ended March 31, 2012.

10. Ratios have been computed as under:

·; Debt Service Coverage Ratio = Earnings before Interest and Tax / (Interest on Long Term Debt + Principal Repayment of Long Term Debt)

·; Interest Service Coverage Ratio = Earnings before Interest and Tax / Interest on Long Term Debt

11. During the quarter, Reliance Sea link One Private Limited has become subsidiary of the Company.

12. After review by the Audit Committee, the Board of Directors of the Company have approved the Standalone financial results at their meeting held on May 25, 2012.

13. Figures for the current quarter ended March 31, 2012 and March 31, 2011 are the balancing figures between audited figures in respect of full financial year and reviewed figures up to third quarter of the relevant financial year.

14. Figures of the previous period / year have been regrouped / reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: May 25, 2012 Chairman