As at          As at
 
                                             31-03-2011     31-03-2010
 
 1. Contingent Liabilities not 
 provided for :
 
 a.  Claims against company pending 
 before court (includes certain
 claims where the amount cannot 
 be ascertained)
 
 - By vendors against contractual 
 obligations                                  3,084.57        3,089.23
 
 - By Ex-employee against recovery 
 of notice                                        1.02            1.02 
 period
 
 b.  Demand for Water Reservation 
 Charges and                                    737.67        1,055.63 
 interest
 thereon from Narmada Water 
 Resources and Water Supply Department
 relating to Surat Lignite Power Plant 
 is contested and not acknowledged
 as debt since at the relevant time 
 project was under implementation and
 regular drawl of water was not made.
 
 c.  Bills of Exchange discounted 
 with Banks in                                7,200.00       14,300.00
 respect of Sales Invoices.
 
 d.  Interest on delay in payment of 
 Electricity Amount not Amount not
 Duty not recovered from participating 
 units ascertainable ascertainable
 and hence not deposited with 
 the Government.
 
 e.  Demand for difference of Stamp 
 Duty from                                      452.60          452.60 
 office of
 the Deputy Collector, Stamp Duty 
 Valuation Office, Baroda and penalty
 which can be levied up to 10 times 
 the disputed amount, on Debenture
 Trust Deed executed on 15/10/ 1996 
 for right issue of Partly
 Convertible Debentures is disputed 
 on the ground of wrong classification 
 and not acknowledged as debt.
 
 f.  In respect of leasehold land of 
 165 MW Amount not Amount not Baroda
 Power Plant and freehold land at 
 ascertainable ascertainable Surat
 Lignite Power Stations, various claims
 are pending against the company/land 
 acquisition office. Depending upon
 the final compensation amount 
 determined, the cost of land may 
 change requiring appropriate 
 adjustment then.
 
 g.  Demand from department of 
 Geology & Mining,                                24.09          24.09 
 Surat for
 Interest on delayed Royalty Payment on
 lignite for the period 
 from April 04 to March 07.
 
 h.  Income Tax Demand contested 
 in Appeal                                     1,828.32       1,824.11
 
 2.  The particulars in respect of generation of electricity, units
 exported and consumption of raw materials are :
 
 Difference in units generated and units exported is attributed to
 auxiliary consumption.
 
 @ For part of the year
 
 * Generation and Export for the year 2010-11 include 275.568 MUs and
 223.975 MUs respectively from Units 3 & 4 of Surat Lignite Power
 Stations prior to capitalization of these units.
 
 ** Sales realization is based on scheduled generation as determined by
 State Load Dispatch Center (SLDC) as per prevailing Availability Based
 Tariff (ABT) regulations.
 
 *Includes 284705 MT of Lignite consumed for Generation of Electricity
 from Units 3 & 4 of Surat Lignite Power Station prior to
 capitalization.
 
 ** Includes 2793 .728 KL of HFO used for Units 3 & 4 of Surat Lignite
 Power Station prior to capitalization Raw Material imported and
 consumed during the year Rs. Nil (P.Y. Rs. Nil)
 
 3.  During the year, Unit 3 and 4 (125 MW each) of Surat Lignite Power
 Project and Mangrol mines were capitalized in the month of September
 2010 upon achieving satisfactory performance of the plant operations.
 The proceeds from sale of electrical energy during the period prior to
 such capitalization have been adjusted against raw material and other
 expenditure while giving effect to capitalization. Pre-operative
 expenditure pertaining to the above project has been allocated to
 various fixed assets upon capitalization of plant. Due to
 capitalization as mentioned above, the figures of previous year are not
 comparable to that extent.
 
 4.  The Company has recognized sales revenue from Unit 3 & 4 of Surat
 Lignite Power Station on the basis of GERC tariff order dated
 19.04.2011 and the resultant adjustments therein are accounted in the
 last quarter of the year. However, the Company has preferred a review
 petition against some of the parameters of tariff as notified in the
 said GERC order. The decision of GERC on this review petition is
 pending. The sales revenue considered for the year from these units is,
 therefore, provisional to this extent. The exact amount of the same is
 not ascertainable.
 
 The information provided under this note does not include details
 relating to expansion at Surat Lignite Power Plant under trial run.
 
 5. The Company has only one reportable business segment namely ‘Power
 Generation under AS 17.
 
 6. Post Employment Benefits:
 
 Defined Contribution Plan
 
 The Company makes contributions towards provident fund and pension
 scheme to Defined Contribution retirement benefit plan for qualifying
 employees.
 
 The provident fund plan is operated by the Gujarat Industries Power
 Company Ltd. Provident Fund Trust (the Trust). Eligible employees
 receive benefits from the said trust which is a defined contribution
 plan. Under the plan, the Company is required to contribute a specified
 percentage of employee''s salary to the retirement benefit plan to fund
 the benefits. The Company has recognised Rs. 200.84 lacs (P.Y. Rs. 108.05
 lacs) for Provident Fund contributions and Rs. 33.78 lacs (P.Y. Rs. 32.42
 lacs) for Pension Scheme in the Profit and Loss Account/ Pre- operative
 expenditure for project (pending allocation).
 
 The minimum interest rate payable by the trust to the beneficiaries
 every year is being notified by the government. The Company has an
 obligation to make good the shortfall, if any, between the return from
 the investments of the Trust and the notified interest rate.
 
 Defined Benefit Plan
 
 The Company recognises the liability towards the gratuity at each
 Balance Sheet date. The present value of obligation is determined based
 on actuarial valuation using the Projected Unit Credit Method, which
 recognises each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation for leave encashment and Post
 Retirement Medical Benefits is also recognised in the same manner as
 gratuity.
 
 Under Post retirement medical benefits, the Company would reimburse a
 fixed amount towards the mediclaim policy (subject to ceiling limits)
 to its employees. Such payment is not dependent upon the future salary
 increases, inflation and medical costs trend and therefore the impact
 of increase / decrease in medical cost trends is not required to be
 ascertained.
 
 7.  Based on the information available with the Company, the balance
 due to Micro and Small Enterprises as defined under the Micro, Small
 and Medium Enterprise Development Act, 2006 is Rs. 13.39 Lacs (Previous
 Year Rs. 15.82 lacs). Payment made to suppliers beyond the due date
 during the year was Rs. Nil (P.Y. Rs. 289.23 Lacs). No interest during the
 year has been paid to Micro and Small Enterprises on delayed payments.
 Further interest accrued and remaining unpaid at the year end Rs. Nil (
 P.Y. Rs. 1.25 Lacs) is not provided in the books as the management is of
 the opinion that in view of the terms and conditions of the contracts
 and based on the facts of the matter, the same is not required to be
 paid.
 
 8.  The value of realizations of Current Assets, Loans and Advances in
 the ordinary course of business will not be less than the value at
 which they are stated in the Balance Sheet.
 
 9.  Confirmation of balances called from the sundry debtors and
 creditors are yet to be received from some parties.  Debit / credit
 balances of such parties, so far as these have not been subsequently
 realized or discharged are subject to confirmation / reconciliation.
 Confirmations of balances to the extent received have been reconciled.
 
 10.  Figures of the previous year have been regrouped/re-cast wherever
 necessary.
 
 11.  During the year, one- fifth of Share issue expenses amounting to Rs.
 148.91 ( Previous Year Rs. Nil) have been amortised on a prorata basis on
 capitalization of units 3 & 4 of Surat Lignite Power Station.