Reliance Infrastructure

1.  (a) Contingent Liabilities:
 
 (i) Counter guarantees given to banks against guarantees issued by the
 banks on behalf of the joint ventures aggregate to Rs 14.55 Crore (Rs
 36.50 Crore). Bank guarantees issued for performing its own obligations
 are not considered as part of contingent liability.
 
 (ii) Corporate Guarantees given to banks and other parties aggregating
 Rs 3,155.66 Crore (Rs 2,752.25 Crore) in respect of financing
 facilities granted to other body corporates.
 
 (iii) Uncalled liability on partly paid shares Rs 45.20 Crore (Rs 10.70
 Crore).
 
 (iv) Claims against the Company not acknowledged as debts and under
 litigation aggregates to Rs 648.69 Crore (Rs 363.37 Crore), these
 include claim from Suppliers aggregating to Rs 292.98 Crore (Rs 261.93
 Crore), Income tax claims Rs 343.17 Crore (Rs 90.75 Crore) and Other
 claims Rs12.54 Crore (Rs 10.69 Crore).
 
 (v) The Companys application for compounding in respect of its ECB of
 USD 360 million has been deemed by the Reserve Bank of India (RBI) as
 never to have been made subsequent to the withdrawal of the compounding
 application. Accordingly, there is no liability in respect of the
 compounding fee of Rs 124.68 Crore earlier specified by RBI. The
 Company is legally advised that it is in compliance with the
 regulations under the Foreign Exchange Management Act, 1999.
 Accordingly, no provision is considered necessary in this regard.
 
 (b) Capital Commitments:
 
 Estimated amount of contracts remaining unexecuted on capital account
 and not provided for Rs 130.54 Crore (Rs 124.02 Crore).
 
 2.  Quantitative Information:
 
 (Note No. 5 of Schedule 16 of Financial Statements) kWh (million)
 
 Particulars                                    2008-09        2007-08
 
 (a) Generation and Supply of Electricity:
 
     (i) Generation of Energy                     5,770          5,957
 
 (ii) Purchase of Energy [excluding 3,951 
      (4,019) kWh (million)                       5,287          4,861
      from Generating Station]
 
 (iii) Sale of Energy                             9,582          9,271
 
 (b) Wind Mill Project:
 
     (i) Generation of Energy                        21             21
 
     (ii) Sale of Energy                             21             21
          
 3.  Related Party Disclosure:
 
 (Note No. 7 of Schedule 16 of Financial Statements)
 
 As per Accounting Standard -18 as prescribed under the Companies
 (Accounting Standards) Rules, 2006, the Companys related parties and
 transactions are disclosed below:
 
 (A) Parties where control exists:
 
     Subsidiaries 
 
 (a) Reliance Infraprojects Limited (RInfL)
 
 (b) Reliance Power Transmission Limited (RPTL)
 
 (c) Western Region Transmission (Gujarat) Private Limited (WRTG) *
 
 (d) Western Region Transmission (Maharashtra) Private Limited (WRTM) *
 
 (e) Reliance Infraventures Limited (formerly known as Reliance Power
 Infrastructure Private Limited) (RInvL)
 
 (f) BSES Kerala Power Limited (BKPL)
 
 (g) Noida Global SEZ Private Limited (NGSPL) 
 
 (h) Mumbai Metro One Private Limited (MMOPL) 
 
 (i) Reliance Energy Trading Limited (RETL)
 
 (j) Parbati Koldam Transmission Company Limited (PKTCL)
 
 (k) Delhi Airport Metro Express Private Limited (DAMEPL) w.e.f. April
 1, 2008
 
 (l) CBD Tower Private Limited (CBDTPL) w.e.f. May 21, 2008
 
 (m) Tulip Realtech Private Limited (TRPL) w.e.f. January 19, 2009
 
 (n) Reliance Energy Generation Limited (REGL) w.e.f.  February 13, 2009
 
 (o) Reliance Energy Limited [formerly known as Reliance Global Limited]
 (REL) w.e.f. January 31, 2009
 
 (p) Reliance Property Developers Limited (RPDL) w.e.f.  January 31,
 2009
 
 (q) DS Toll Road Limited (DSTL) w.e.f. May 23, 2008 ***
 
 (r) NK Toll Road Limited (NKTL) w.e.f. May 23, 2008 ***
 
 (s) SU Toll Road Private Limited (SUTL) w.e.f. May 2, 2008 ***
 
 (t) TD Toll Road Private Limited (TDTL) w.e.f. May 2, 2008 ***
 
 (u) TK Toll Road Private Limited (TKTL) w.e.f. May 2, 2008 ***
 
 (v) GF Toll Road Private Limited (GFTL) w.e.f. December 23, 2008
 
 (w) Reliance Goa and Samalkot Power Limited (RGSL) w.e.f. March 4, 2009
 ** *Subsidiary of a Subsidiary Company - Reliance Power Transmission
 fLimited
 
 ** Subsidiary of a Subsidiary Company - Reliance Energy Generation
 Limited
 
 *** Classified as an Associate upto the dates mentioned.  The
 transactions upto the dates mentioned (including previous year) have
 been disclosed under the subsidiary classification for the purpose of
 comparatives
 
 (B) Other related parties with whom transactions have taken place
 during the year:
 
 (i) Associates 
 
 (a) Reliance Power Limited (RePL)
 
 (b) Reliance Infrastructure Engineers Private Limited (RIEPL)
 
 (c) Reliance Infrastructure and Consultants Limited (RICL)
 
 (d) Urthing Sobla Hydro Power Private Limited (USHPPL) *
 
 (e) Rosa Power Supply Company Limited (ROSA) *
 
 (f) Sasan Power Limited (SPL) *
 
 (g) Vidarbha Industries Power Limited (VIPL) *
 
 (h) Maharashtra Energy Generation Limited (MEGL) *
 
 (i) Chitrangi Power Private Limited [formerly MP Power Generation
 Private Limited] (MPPGPL) *
 
 (j) Tato Hydro Power Private Limited (THPPL) *
 
 (k) Siyom Hydro Power Private Limited (SHPPL) *
 
 (l) Kalai Power Private Limited (KAPL) *
 
 (m) Coastal Andhra Power Limited (CAPL) *
 
 (n) Reliance Coal Resources Private Limited (RCRPL) *
 
 * Subsidiary of an Associate Company - Reliance Power Limited (RePL)
 
 (ii) Joint Ventures 
 
 (a) BSES Rajdhani Power Limited (BRPL)
 
 (b) BSES Yamuna Power Limited (BYPL)
 
 (c) Tamilnadu Industries Captive Power Company Limited (TICAPCO)
 
 (d) Utility Powertech Limited (UPL)
 
 (iii) Persons having Shri Anil D Ambani
 
 control over investing party / Major shareholder
 
 (iv) Key Management Personal
 
 (a) Shri Anil D Ambani (upto April 24, 2007)
 
 (b) Shri Satish Seth (upto April 24, 2007)
 
 (c) Shri S C Gupta
 
 (d) Shri Lalit Jalan
 
 (e) Shri J P Chalsani (upto January 17, 2008) 
 
 (v) Enterprises over Which person described in (iii) has control
 
 (a) Reliance Natural Resources Limited (RNRL)
 
 (b) Reliance Communications Limited (RCL)
 
 (c) Reliance Innoventures Private Limited(REIL)  
     
 (d) Reliance Communications Infrastructure Limited (RCIL)
 
 (e) AAA Projects Venture Private Limited (AAAPVPL)
 
 (f) Reliance Cementation Private Limited (RCPL)
 
 (g) Reliance Land Private Limited (RLPL)
  
 (h) Reliance Webstores Limited (RWeb) 
 
 (i) Reliance Big Entertainment Private Limited (RBig) 
 
 (j) Reliance General Insurance Company Limited (RGI)
 
 
 (D) Details of Material Transactions with Related Party:
 
 (i) Guarantees and Collaterals provided to RePL Rs Nil (Rs 595.00
 Crore), SPL Rs Nil (Rs 187.31 Crore) and DAMEPL Rs 625.00 Crore (Rs
 Nil). Deposit Given to RInfL Rs Nil (Rs 326.39 Crore), RPFPL Rs Nil (Rs
 323.89 Crore), RInvL Rs Nil (Rs 325.63 Crore), RICL Rs 106.10 Crore (Rs
 2.25 Crore) and DAMEPL Rs 92.90 Crore (Rs Nil). Deposit Returned by
 BKPL Rs 26.84 Crore (Rs Nil), Recoverable Expenses incurred for SHPPL
 Rs Nil (Rs 113.51 Crore), REIL Rs 9.46 Crore (Rs 10.56 Crore), ROSA Rs
 10.97 Crore (Rs Nil), SPL Rs 7.97 Crore (Rs Nil) and CAPL Rs 8.47 Crore
 (Rs Nil). Recoverable Expenses incurred by BKPL Rs Nil (Rs 0.04 Crore),
 BYPL Rs Nil (Rs 0.01 Crore), BRPL Rs Nil (Rs 0.01 Crore) and RICL Rs
 1.26 Crore (Rs Nil). Investment in Equity Shares of RePL Rs Nil (Rs
 1,619.98 Crore), RInfL Rs Nil (Rs 500 Crore), RInvL Rs Nil (Rs 500
 Crore), MMOPL Rs 103.50 Crore (Rs Nil) and CBDTPL Rs 163.70 Crore (Rs
 Nil). Issue of Share Warrants AAAPVPL Rs Nil (Rs 783.49 Crore).
 Subordinate debt given to NKTL Rs 15.38 Crore (Rs Nil), DSTL Rs 13.64
 Crore (Rs 6.01 Crore), SUTL Rs 19.41 Crore (Rs 18.58 Crore), TDTL Rs
 10.62 Crore (Rs 9.98 Crore) and TKTL Rs 22.60 Crore (Rs 12.33 Crore).
 Advance against Investments paid to DAMEPL Rs 373.90 Crore (Rs Nil) and
 RPTL Rs 341.32 Crore (Rs Nil). Advance against Investments received
 back from VIPL Rs Nil (Rs 7.05 Crore). Sale of Investments to RIEPL Rs
 3,167 (Rs Nil) and VIPL Rs Nil (Rs 0.02 Crore).  Sale of Fixed Assets
 to RePL Rs 0.37 Crore (Rs Nil), SPL Rs 0.13 Crore (Rs Nil) and CAPL Rs
 0.10 (Rs Nil).  Advances received towards contract from SPL Rs 700
 Crore (Rs Nil), VIPL Rs 200 Crore (Rs Nil) and CAPL Rs 700 Crore (Rs
 Nil). Advance towards contracts refunded to MEGL Rs 105 Crore (Rs Nil).
 
 (ii) Sundry Creditors / Other Liabilities for rendering services SPL Rs
 651.11 Crore (Rs Nil), VIPL Rs 180.42 Crore (Rs Nil), CAPL Rs 679.37
 Crore (Rs Nil), UPL Rs Nil (Rs 28.92 Crore), RNRL Rs Nil (Rs 9.61
 Crore) and REIL Rs Nil (Rs 164.69 Crore). Investment in Equity of RInfl
 Rs 502.10 Crore (Rs Nil), RInvl Rs 502.11 Crore (Rs Nil) and RePL Rs
 1,720.00 Crore (Rs Nil). Deposits Given BKPL Rs 18.30 (Rs Nil) and RICL
 Rs 142.75 Crore (Rs Nil). Subordinate debt NKTL Rs 40.29 (Rs Nil), DSTL
 Rs 46.80 Crore (Rs Nil), SUTL Rs 75.63 Crore (Rs Nil), TDTL Rs 40.52
 Crore (Rs Nil) and TKTL Rs 51.59 Crore (Rs Nil). Advance against
 Investments DAMEPL Rs 373.90 Crore (Rs Nil) and RPTL Rs 341.32 Crore
 (Rs Nil). Recoverable Expenses RNRL Rs 1.68 Crore (Rs Nil), THPPL Rs
 3.67 Crore (Rs Nil) and USHPPL Rs 1.78 Crore (Rs Nil). Sundry Debtors
 BRPL Rs Nil (Rs 93.79 Crore), BYPL Rs Nil (Rs 62.88 Crore), CAPL Rs
 12.92 Crore (Rs Nil) and VIPL Rs 13.24 Crore (Rs Nil).
 
 (iii) Sale of Electricity to RETL Rs 9.04 Crore (Rs 0.43 Crore). Gross
 Revenue of EPC and Contracts Division / Sales reversal from BRPL Rs Nil
 (Rs 7.17 Crore), BYPL Rs Nil (Rs 0.32 Crore), SPL Rs 38.38 Crore (Rs
 Nil), CAPL Rs 22.19 Crore (Rs Nil) and VIPL Rs 27.18 Crore (Rs Nil).
 Dividend Received from UPL Rs 0.48 Crore (Rs 0.59 Crore). Rent / Lease
 Rent earned from UPL Rs Nil (Rs 0.41 Crore), BKPL Rs 0.01 Crore (Rs
 Nil) and RICL Rs Nil (Rs 0.68 Crore). Interest earned from BKPL Rs 2.70
 Crore (Rs 3.37 Crore) and RICL Rs 10.82 Crore (Rs 2.98 Crore).  Other
 Income DSTL Rs 4.00 Crore (Rs Nil), NKTL Rs 4.00 Crore (Rs Nil), RePL
 Rs Nil (Rs 1.75 Crore), SPL Rs Nil (Rs 2.07 Crore), RNRL Rs Nil (Rs
 1.95 Crore), THPPL Rs Nil (Rs 1.74 Crore) and SHPPL Rs Nil (Rs 1.74
 Crore).
 
 (iv) Purchase of electricity from RETL Rs 166.37 Crore (Rs 2.36 Crore).
 Purchase / Services on Revenue account from UPL Rs Nil (Rs 77.23
 Crore), REIL Rs Nil (Rs 161.66 Crore), and RNRL Rs 198.56 Crore (Rs
 200.08 Crore).  Purchase of other items on Capital account from RICL Rs
 2.35 Crore (Rs 16.62 Crore) and REIL Rs Nil (Rs 33.16 Crore). Receiving
 of Services from UPL Rs 19.25 Crore (Rs Nil), RNRL Rs 65.42 Crore (Rs
 Nil), RCIL Rs Nil (Rs 15.76 Crore), REIL Rs 33.07 Crore (Rs Nil) and
 RGI Rs 32.57 Crore (Rs Nil). Rent paid to RICL Rs 0.76 Crore (Rs 0.37
 Crore). Interest paid to MEGL Rs 3.85 Crore (Rs Nil), SHPPL Rs 10.21
 Crore (Rs Nil).
 
 (v) Salaries, Commission and Other Benefits paid / payable to Shri Anil
 D. Ambani Rs Nil (Rs 0.11 Crore), Shri Satish Seth Rs Nil (Rs 0.09
 Crore), Shri S.C. Gupta Rs 1.12 Crore (Rs 1.13 Crore), Shri Lalit Jalan
 Rs 1.10 Crore (Rs 1.04 Crore) and Shri J.P. Chalasani Rs Nil (Rs 1.05
 Crore). Further, the Company has made payment to Shri Anil D Ambani
 towards commission for the financial year 2007-08 amounting to Rs 11.00
 Crore (which includes Rs 0.97 Crore not provided in the previous year)
 
 (vi) The Company has given (a) equity support undertakings to power
 procurers in respect of Sasan ultra mega power project (UMPP),
 Krishnapatnam UMPP, Talaiya UMPP and MP Power project of Reliance Power
 Limited for setting up the respective projects, (b) funding support
 undertaking for cost overrun and equity support undertaking to
 Financial Institutions / Banks in respect of Rosa Power Project of
 Reliance Power Limited for setting up the Rosa project and (c) keep
 well letter in favour of a bank, who in turn has issued a letter of
 credit in favour of the foreign currency convertible bond (FCCB)
 holders of RNRL; the amounts of which currently are not ascertainable.
 
 4.  Segment wise Revenue, Results and Capital Employed:
 
 (Note No. 8 of Schedule 16 of Financial Statements)
 
 Basis of Preparation: The Company operates in two Business Segments:
 Electrical Energy and EPC and Contracts. Business segments have been
 identified as reportable primary segments in accordance with Accounting
 Standard-17 Segment Reporting, as prescribed under Companies
 (Accounting Standards), Rules, 2006, taking into account the
 organisation and internal reporting structure as well as evaluation of
 risks and returns from these segments. The inter segment pricing is
 effected at cost. Segment accounting policies are in line with the
 accounting policies of the Company.
 
 In the case of Electrical Energy, the Company operates a 500 MW Thermal
 Power Station at Dahanu, a 220 MW combined cycle power plant at
 Samalkot, a 48 MW combined cycle power plant at Mormugao, a 7.59 MW
 Windfarm at Chitradurga and also purchases power from third parties and
 supplies the power through the Companys own distribution grid. The
 Company supplies power to residential, industrial, commercial and other
 consumers. EPC and Contracts segment render comprehensive value-added
 services in construction, erection and commissioning.
 
 Geographical Segments: The Companys operations are mainly confined
 within India. The Company does not have material earnings from business
 segments outside India. As such there are no reportable geographical
 segments.
 
 5.  (Note No. 10 of Schedule 16 of Financial Statements) (A) Standby
 Charges:
 
 (a) In the matter of standby charges, Maharashtra Electricity
 Regulatory Commission (MERC) had passed an order dated May 31, 2004 as
 under:
 
 i) The total liability for the financial years 1998-99 to 2003-04 was
 determined at Rs 515.60 Crore (which had
 been debited to the Profit and Loss Account up to March 31, 2005).  
 
 ii) The Tata Power Company Ltd. (TPC) to refund an amount of Rs 321.13
 Crore (net of interest of Rs 1.17 Crore)
 to the Company for the said period plus interest at 10 per cent per
 annum commencing from April 1, 2004 till the date of payment.
 
 (b) The Company and TPC filed appeals before the Honble High Court of
 Bombay. As an interim order, the Honble High Court of Bombay granted
 stay of payment to be made by TPC, but directed TPC to provide a Bank
 Guarantee of Rs 313.93 Crore in favour of the Honble High Court of
 Bombay. Disposing both the petitions, the Honble High Court of Bombay
 held that the issues should be adjudicated within four months of the
 order of the Honble High Court of Bombay by the Appellate Tribunal for
 Electricity (ATE). In the interregnum, the parties to continue to pay
 in terms of the interim order, subject to adjustments on adjudication
 
 (c) Both TPC and the Company filed Special Leave Petitions in the
 Supreme Court against the Order of the Honble High Court of Bombay.
 While disposing of these petitions, the Honble Supreme Court directed
 TPC to file an appeal before the ATE. TPC thereafter filed an appeal
 before ATE.
 
 (d) While disposing of the appeal, ATE has passed an order dated
 December 20, 2006 as under:
 
 i) The total liability of standby charges for the financial years
 1998-99 to 2003-04 was determined at Rs 500 Crore.  
 
 ii) TPC to refund Rs 354 Crore (inclusive of interest of
 Rs 15 Crore upto March 31, 2004) to the Company plus
 interest at 10% per annum commencing from April 1, 2004 till the date
 of payment.
 
 (e) TPC filed an appeal in the Honble Supreme Court being Appeal No.
 415 of 2007. The Honble Supreme Court passed an interim order dated
 February 7, 2007 granting stay of the impugned order of the ATE subject
 to the condition that, TPC furnish a bank guarantee in the sum of Rs
 227 Crore and, in addition, deposit a sum of Rs 227 Crore with the
 Registrar General of the Court which may be withdrawn by the Company
 subject to the Company giving an undertaking that in the event of the
 appeal being decided against the Company, wholly or in part, the amount
 as may be found refundable by the Company shall be refunded to TPC
 without demur together with interest as may be determined by the Court.
 The Company accordingly withdrew the amount of Rs 227 Crore after
 complying with the conditions specified and has accounted the said
 amount as other liabilities pending final adjustment.  Moreover,
 pending final order of the Honble Supreme Court, the Company has not
 accounted for the reduction in standby charges liability of Rs 15.60
 Crore as well as interest amount determined by ATE as payable by TPC to
 the Company.
 
 (B) Take or Pay and Additional Energy Charges:
 
 Pursuant to the order passed by MERC dated December 12, 2007, in case
 No. 7 of 2002, TPC has claimed an amount of Rs 323.87 Crore towards the
 following:
 
 (a) Difference in the energy charge for energy supplied by TPC at 220
 kV interconnection for the period March 2001 to May 2004 along with
 interest at 24% per annum up to December 31, 2007, and
 
 (b) Minimum offtake charges for energy for the years 1998-99 to
 1999-2000 along with interest at 24% per annum up to December 31, 2007.
 
 In an appeal filed by the Company, ATE held that the amount in the
 matter (a) above is payable by the Company along with interest at State
 Bank of India prime lending rate for short term borrowings. The matter
 (b) is remanded to MERC for redetermination. The Company has filed an
 appeal against the said order before the Supreme Court, which while
 admitting the appeal, has restrained TPC from taking any coercive
 action in respect of the matter stated in (a) above and TPC has also
 filed an appeal against the said order.
 
 The said amount is disclosed under Contingent Liability in Note
 2(a)(iv) above.
 
 6.  Scheme of Amalgamation of Reliance Projects Finance Private Limited
 (RPFPL) with the Company: (Note No. 11 of Schedule 16 of Financial
 Statements)
 
 (a) Pursuant to the approval of the Board by circular resolution dated
 March 17, 2008 and the sanction of the Scheme of Amalgamation of RPFPL
 with the Company by the Honble High Court of Judicature at Bombay on
 June 20, 2008, the assets and liabilities of the erstwhile RPFPL, a
 wholly owned subsidiary of the Company, were transferred to and vested
 in the Company with effect from the appointed date viz. April 1, 2007
 in accordance with the Scheme so sanctioned.  RPFPL was incorporated as
 a special purpose vehicle by the Company for the purpose of the
 proposed restructuring of the Company. RPFPL does not have any
 commercial operations.
 
 The amalgamation has been accounted for under the “Pooling of Interest
 Method as defined in Accounting Standard (AS-14) as prescribed under
 the Companies (Accounting Standards) Rules, 2006 and as per the terms
 of the scheme of amalgamation as under
 
 - The accumulated profit and loss account of Rs 71.10 Crore as on April
 1, 2008 of RPFPL has been added to the profit brought forward from
 previous year.
 
 - The assets and liabilities have been taken over at the book value in
 the books of the Company.
 
 - The investments of the Company in equity shares and preferences
 shares of RPFPL amounting to Rs 0.21 Crore and Rs 120 Crore
 respectively stands cancelled.
 
 There were no significant differences in the accounting policies
 followed between the erstwhile company and the Company as on the
 appointed date.
 
 (b) The figures for the previous year do not include figures for the
 erstwhile RPFPL and accordingly the current year figures are not
 comparable to those of the previous year.
 
 7.  Regulatory Assets:
 
 (Note No. 12 of Schedule 16 of Financial Statements)
 
 (a) During the year, MERC in accordance with the Tariff Regulations,
 determined the revenue requirement vide its order dated June 4, 2008
 for the Company for financial year 2008-2009. As per the order
 considering revenue requirement, the revenue gap of Rs 356 Crore would
 be allowed to be recovered from consumers in two equal parts over the
 next two years viz financial year 2009-2010 and financial year
 2010-2011. Considering the above tariff order, the Company has accrued
 the revenue gap evenly over the period as income in the Profit and Loss
 Account and has carried forwarded the same as “Regulatory Asset in the
 Loans and Advances (Schedule 7(B)).
 
 (b) The Fuel Adjustment charges (FAC) is determined based on the
 approved formula and the relevant directives as issued by MERC from
 time to time. The FAC formula takes in to account any change in the
 actual variable cost of own generation and third party purchases as
 against the budgeted cost considered by MERC while determining the base
 tariffs and maximum rate to be charged for recovery of FAC to the
 consumers at the beginning of the year. In case the difference between
 the actual cost and budgeted cost is not billed to the consumers during
 a financial year due to the cap on the rate imposed by MERC, the same
 is recovered by way of truing up or other mechanism in accordance with
 the tariff policy and provision of the Electricity Act, 2003 and is
 carried forwarded as Regulatory Asset as at the period end.
 Accordingly, the Company has accounted for unrecovered FAC aggregating
 to Rs 678.45 Crore as revenue and has carried forward the same as
 regulatory asset (Schedule 7(B)), to be recovered through future
 tariffs, as the Company has already incurred and accounted for the
 corresponding cost in Profit and Loss Account.
 
 8. (Note No. 13 of Schedule 16 of Financial Statements)
 
 The Committee of Whole-time Directors at its meeting held on February
 25, 2009 has, as authorized by the Board of Directors at its meeting
 held on January 22, 2009 and by the Committee of Independent Directors
 at its meeting held on January 31, 2009, approved the revised Scheme of
 Restructuring envisaging transfer of Dahanu thermal power station
 division, Goa and Samalkot power stations division, power transmission
 division, power distribution division, toll roads division and real
 estate divisions of Reliance Infrastructure Limited to respective
 resulting wholly owned subsidiary companies, pursuant to Sections 391
 to 394 of the Companies Act, 1956, subject to requisite consent and
 approvals of shareholders, lenders, creditors of the Company and of the
 resulting companies, Stock Exchanges on which the equity shares of the
 Company are listed, the Bombay High Court and the permission or
 approval of the Central Government or any other statutory or regulatory
 authorities, as might be necessary for the implementation of the
 scheme. The detailed and formal plan for demerger is under
 finalisation/approval.
 
 9.  (Note No. 15 of Schedule 16 of Financial Statements)
 
 The Company has been legally advised that the Company is considered to
 be established with the object of providing infrastructural facilities
 and accordingly, Section 372A of the Companies Act, 1956 is not
 applicable to the Company.
 
 10.  (Note No. 16 of Schedule 16 of Financial Statements)
 
 The Company has, based on a valuation made by approved valuers,
 revalued as at April 1, 2003 the plant and machinery located at Dahanu.
 The revaluation of the same has been based on the technological
 obsolescence, the year of purchase, the maintenance levels and the
 currency and customs duty variations as applicable. The resultant
 appreciation aggregating to Rs 752.17 Crore has been added to the Gross
 Block of the Fixed Assets and credited to Revaluation Reserve.
 Consequent to the revaluation, there is an additional charge for
 depreciation of Rs 53.95 Crore (Rs 54.24 Crore) and an equivalent
 amount, has been withdrawn from Revaluation Reserve and credited to the
 Profit and Loss Account.
 
 11. Disclosure under Micro, Small and Medium Enterprises Development
 Act, 2006: (Note No. 17 of Schedule 16 of Financial Statements)
 
 There are no Micro and Small Scale Business Enterprises, to whom the
 Company owes dues, which are outstanding for more than 45 days as at
 March 31, 2009. This information as required to be disclosed under the
 Micro, Small and Medium Enterprises Development Act, 2006 has been
 determined to the extent such parties have been identified on the basis
 of information available with the Company.
 
 12. Buy-back of Shares:
 
 (Note No. 22 of Schedule 16 of Financial Statements)
 
 Pursuant to the approval of the Board of Directors and shareholders of
 the Company, for buy-back of equity shares under Section 77A of the
 Companies Act, 1956 upto 25% of the paid-up equity share capital and
 free reserves of the Company aggregating Rs 2,000.14 Crore, the Company
 has bought-back 9,554,995 (951,500) equity shares during the year ended
 March 31, 2009 through open market transactions for an aggregate amount
 of Rs 759.28 Crore (Rs122.68 Crore), by utilising the Securities
 Premium account and the General Reserve to the extent of Rs 749.73
 Crore (Rs 121.73 Crore) and Rs 9.55 Crore (Rs 0.95 Crore) respectively.
 The Capital Redemption Reserve has been created out of General Reserve
 for Rs 9.55 Crore (Rs 0.95 Crore) being the nominal value of shares
 bought back in terms of Section 77A of the Companies Act, 1956. Of the
 above equity shares bought back 100,000 and 300,000 equity shares have
 been extinguished subsequent to year end on April 3, 2009 and April 10,
 2009 respectively.
 
 13.  (Note No. 25 of Schedule 16 of Financial Statements)
 
 Reliance Power Limited (RePL) has issued bonus shares in the ratio of
 three new equity shares for every five existing equity shares to all
 the shareholders. Pursuant to the approval of the Board of Directors
 and shareholders of the Company, the Company along with the other
 promoters of RePL viz. Anil Dhirubhai Ambani Group comprising Shri Anil
 D. Ambani, Reliance Innoventures Private Limited and AAA Project
 Ventures Private Limited (APVPL) who collectively held equity shares
 representing 89.91% of the pre bonus issue equity share capital of RePL
 have agreed to waive their respective entitlement for allotment of
 bonus shares. To protect the Company from any dilution of its current
 holding of 44.96% of the equity shares of RePL consequent upon waiving
 its right to bonus shares, APVPL has contributed voluntarily without
 any obligation to do so and without any specific consideration, by way
 of gift of 2.57% of its post bonus issue shareholding comprising
 61,500,000 shares in RePL to the Company. Accordingly, in the current
 year there is an increase of 61,500,000 number of equity shares holding
 in RePL without any increase in the cost of investment.
 
 14.  Interests in Joint Venture Operations:
 
 (Note No. 26 of Schedule 16 of Financial Statements)
 
 The Company along with M/s. Geopetrol International Inc. and Reliance
 Natural Resources Limited (the consortium) has been allotted 4 Coal Bed
 Methane (CBM) blocks from Ministry of Petroleum and Natural Gas (Mo
 PNG) covering an acreage of 3,266 square kilometers in the States of
 Madhya Pradesh, Andhra Pradesh and Rajasthan. The consortium has
 entered into a production sharing agreement with Government of India
 for exploration and production of these four CBM blocks. The Company is
 a non-operator and has 45% share in each of the four blocks.
 
 Also the Company along with M/s. Geopetrol International Inc, Naftogaz
 India Private Limited and Reliance Natural Resources Limited (the
 consortium) has been allotted oil block from Ministry of Petroleum and
 Natural Gas (Mo PNG), in the State of Mizoram under the New Exploration
 Licensing Policy (NELP - VI) round, covering an acreage of 3,619 square
 kilometers and the consortium has signed an agreement with the
 Government of India for exploration and production of an Oil and Gas
 block.  The Company is a non-operator and has 70% share in the block.
 
 15. (Note No. 29 of Schedule 16 of Financial Statements)
 
 The cost of electricity purchased is net of cost incurred towards units
 purchased and banked with other parties and/or units banked by other
 parties with us, both on loan basis. Such transactions remaining
 unsettled at the year end, is carried forward under Loans and Advances
 / Sundry Creditors, as the case may be at the value of purchase on the
 date of the transactions when the units are banked, either way, as the
 case may be.
 
 16. (Note No. 30 of Schedule 16 Financial Statements)
 
 Figures for the previous year have been
 regrouped/reclassified/rearranged wherever necessary to make them
 comparable to those for the current year. Figures in bracket indicate
 previous years figures. @- represents figures less than 
 50,000 which have been shown at actuals in brackets with @.