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. 19.91 Crore (Rs. 1
 0.50 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. 2,924.21 Crore (Rs. 2,367.88 Crore) in respect of financing facilities
 granted to other body corporates (including in respect of joint venture
 Rs. 2.45 Crore (Rs. 2.45 Crore)).
 
 (iii) Uncalled liability on partly paid shares Rs. 83.83 Crore (Rs. 45.20
 Crore)
 
 (iv) Claims against the Company not acknowledged as debts and under
 litigation aggregates to Rs. 1,337.35 Crore (Rs. 709.90 Crore). These
 include claim from suppliers aggregating to Rs. 268.48 Crore (Rs. 243.43
 Crore), income tax claims Rs. 1,061.92 Crore (Rs. 459.82 Crore) and other
 claims Rs. 6.95 Crore (Rs. 6.95 Crore).
 
 (v) The Company''s 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. 1 24.68 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. 53.55 Crore (Rs. 92.41 Crore)
 
 2.  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 Company''s related parties and
 transactions are disclosed below:
 
 (a) Parties where control exists:
 
 Subsidiaries (a) Reliance Power Transmission Limited (RPTL)
 
 (including step (b) Western Region Transmission (Gujarat) Private
 Limited (WRTG)
 
 down subsidiaries) (c) Western Region Transmission (Maharashtra)
 Private Limited (WRTM)
 
 (d) Talcher - II Transmission Company Limited (TTCL) w.e.f April 27,
 2010
 
 (e) North Karanpura Transmission Company Limited (NKTCL) w.e.f. May 20,
 2010
 
 (f) Reliance Infraventures Limited (RInvL)
 
 (g) BSES Kerala Power Limited (BKPL)
 
 (h) Noida Global SEZ Private Limited (NGSPL)
 
 (i) Reliance Energy Trading Limited (RETL)
 
 (j) Mumbai Metro One Private Limited (MMOPL)
 
 (k) Parbati Koldam Transmission Company Limited (PKTCL)
 
 (I) Delhi Airport Metro Express Private Limited (DAMEPL)
 
 (m) CBD Tower Private Limited (CBDTPL)
 
 (n) Tulip Realtech Private Limited (TRPL)
 
 (o) Reliance Energy Generation Limited (REGL)
 
 (p) Reliance Energy Limited (REL)
 
 (q) Reliance Property Developers Limited (RPDL)
 
 (r) Reliance Goa and Samalkot Power Limited (RGSPL)
 
 (s) DS Toll Road Limited (DSTL)
 
 (t) NKToll Road Limited (NKTL)
 
 (u) SU Toll Road Private Limited (SUTL)
 
 (v) TD Toll Road Private Limited (TDTL)
 
 (w) TK Toll Road Private Limited (TKTL)
 
 (x) GFToll Road Private Limited (GFTL)
 
 (y) KM Toll Road Private Limited (KMTL)
 
 (z) PS Toll Road Private Limited (PSTL)
 
 (aa) HK Toll Road Private Limited ( HKTL) w.e.f. May 19, 2010
 
 (bb) DA Toll Road Private Limited (DATL) w.e.f. May 26, 2010
 
 (cc) Reliance Cementation Private Limited (RCPL)
 
 (dd) Reliance Cement and Infra Private Limited (RCIPL)
 
 (ee) Reliance Cement Corporation Private Limited (RCCPL)
 
 (ff) Reliance Cement Works Private Limited (RCWPL)
 
 (gg) Utility infrastructure & Works Private Limited (UIWPL) w.e.f.
 December 28, 2010
 
 (hh) Reliance Concrete Private Limited ( RCoPL) (erstwhile Reliance
 Cement Private Limited) w.e.f. March 18, 2011
 
 (ii) Reliance Airport Developers Private Limited (RADPL) (jj) Latur
 Airport Private Limited (LAPL) (kk) Baramati Airport Private Limited
 (BAPL) (11) Nanded Airport Private Limited (NAPL) (mm) Yavatmal Airport
 Private Limited (YAPL) (nn) Osmanabad Airport Private Limited (OAPL)
 
 (oo) Reliance infrastructure Engineers Private Limited (RIEPL) w.e.f.
 March 25, 2011 (pp) Reliance Sealink One Private Limited ( RSOPL)
 w.e.f. May 26, 2010 (b) Other related parties where transactions have
 taken place during the year:
 
 (i) Associates (including (a) Reliance infrastructure Engineers Private
 Limited (RIEPL) upto March 24, 2011 subsidiaries of associates)
 
 (b) Reliance infrastructure and Consultants Limited (RICL)
 
 (c) Reliance Power Limited (RePL)
 
 (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) Chitrangi Power
 Private Limited (CPPL)
 
 (i) Tato Hydro Power Private Limited (THPPL)
 
 (j) Siyom Hydro Power Private Limited (SHPPL)
 
 (k) Jharkhand integrated Power Limited (JIPL)
 
 (I) Coastal Andhra Power Limited (CAPL)
 
 (m) Reliance Coal Resources Private Limited (RCRPL)
 
 (n) Samalkot Power Limited (SaPoL) w.e.f. July 29, 2010
 
 (o) JR Toll Road Private Limited (JRTL)
 
 (p) Mumbai Metro Transport Private Limited (MMTPL)
 
 (q) Metro One Operation Private Limited(MOOPL)
 
 (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) Investing Party AAA Project Ventures Private Limited (AAAPVPL)
 
 (iv) Persons having control over Shri Anil D. Amban investing party
 
 (v) Key Management Personnel (a) Shri S.C.Gupta
 
 (b) Shri Lalitjalan
 
 (vi) Enterprises over which (a) Reliance Natural Resources Limited
 (RNRL) upto October 14, 2010 person described in (iv) has (b) Reliance
 Communications Limited (RComm) significant influence (c) Reliance
 Innoventures Private Limited(REIL)
 
 (d) Reliance Webstores Limited (RWeb)
 
 (e) Reliance General insurance Company Limited (RGI)
 
 (f) Reliance Capital Limited (RCap)
 
 (g) Reliance Infratel Limited (RInfTL)
 
 (h) Reliance Infocomm infrastructure Private Limited (RIIPL) (i)
 Reliance Big Entertainment Private Limited (RBig)
 
 (d) Details of Material Transactions with Related Party
 
 (i) Transactions during the year (Balance Sheet heads)
 
 Guarantees and Collaterals provided toJRTLRs. 389.00 Crore and DATL Rs.
 107.89 Crore. Deposit given to HKTL Rs. 1 77.00 Crore, DATL Rs. 627.00
 Crore and KMTL Rs. 193.00 Crore. Deposit returned by RICL Rs. 83.1 7 Crore
 and RETL Rs. 35.75 Crore. Recoverable Expenses incurred for REGL Rs. 24.71
 Crore and REL Rs. 55.10 Crore. Recoverable Expenses incurred by RComm Rs.
 1.67 Crore and BKPL Rs. 0.29 Crore. Investment in Equity Shares of RCPL Rs.
 165.14 Crore, RPTLRs. 376.55 Crore, SUTL Rs. 171.59 Crore and GFTLRs. 168.62
 Crore. Warrants money received from AAAPVPL Rs. 1,570.99 Crore. Warrants
 money of AAAPVPL converted into equity shares Rs. 2,094.65 Crore,
 
 Subordinate debt given to HKTL Rs. 261.60 Crore, DATL Rs. 664.32 Crore and
 KMTL Rs. 284.60 Crore. Advance againstinvestments paid to JRTL Rs. 53.10
 Crore and PSTL Rs. 237.92 Crore. Advance againstinvestments received
 back from RCPL Rs. 1 7.25 Crore. Purchase of Intangible Assets from DSTL
 Rs. 355 Crore, NKTL Rs. 275 Crore and PSTLRs. 1,780 Crore. Tax collected at
 source from DSTLRs. 7.10 Crore, NKTLRs. 5.50 Crore and PSTLRs. 35.60 Crore,
 Advances received from CPPL Rs. 1,240.36 Crore, JIPL Rs. 1,000.00 Crore and
 SaPoL Rs. 787.44 Crore,
 
 (Previous Year: Guarantees and Collaterals provided to DAMEPL Rs. 489.51
 Crore. Deposit given to RETL Rs. 75.00 Crore, RICL Rs. 78.55 Crore. Deposit
 returned by BKPL Rs. 8.95 Crore, RICL Rs. 20.68 Crore, DSTL Rs. 7 7.60 Crore,
 NKTL 110.97 Crore, RETL Rs. 75.00 Crore. Recoverable Expenses incurred
 for REGL Rs. 18.23 Crore, RGSPL Rs. 73.95 Crore and PEL Rs. 72.97 Crore, RICL
 Rs. 0.75 Crore, SPL Rs. 0.08 Crore, ROSA Rs. 0.27 Crore, REIL Rs. 0.05 Crore
 and CAPL Rs. 0.02 Crore. Recoverable Expenses incurred by BKPL Rs. 0.07
 Crore and MMOPL Rs. 0.07 Crore. Investment in Equity Shares ofRIEPLt
 10.00 Crore, RETLt 10.00 Crore, RCPLt 53.78 Crore. Warrants money
 received from AAAPVPL Rs. 2,361.70 Crore. Warrants money of AAAPVPL
 converted into equity shares Rs. 1,820.62 Crore. Subordinate debt given
 to SUTL Rs. 91.36 Crore, TDTL Rs. 56.18 Crore and TKTL Rs. 69.24 Crore.
 Advance againstinvestments paid to DAMEPL Rs. 93.05 Crore, RInfL Rs. 66.27
 Crore and GFTL Rs. 7 65.42 Crore. Advance againstinvestments received
 back from RPTL Rs. 189.86 Crore, Purchase ofinvestments from RNRL Rs.
 53.78 Crore. Sale of Fixed Assets to SPL Rs. 0.03 Crore. Advances
 received from SPL Rs. 700 Crore and VIPL Rs. 700 Crore.)
 
 (ii) Balance sheet heads (Closing balance)
 
 Sundry Creditors, Advances received and Other Liabilities for rendering
 services CPPL Rs. 1,220.22 Crore, JIPL Rs. 996.10 Crore, SPL Rs. 1,244.88
 Crore, PSTL Rs. 890.00 Crore, SaPoL Rs. 767.94 Crore and CAPL Rs. 732.26
 Crore, Investment in Equity RInvlRs. 568.57 Crore and RePLRs. 1,720.00
 Crore. ICDs placed HKTLRs. 177.00 Crore, DATL Rs. 627.00 Crore and KMTLRs. 1
 93.00 Crore. Subordinate debt HKTLRs. 261.60 Crore, DATLRs. 664.32 Crore,
 KMTL Rs. 284.60 Crore and DAMEPLRs. 61 1.95 Crore. Advance against
 investments JRTLRs. 53.45 Crore, MMOPLRs. 36.86 Crore and PSTL Rs. 237.92
 Crore. Recoverable Expenses REGL Rs. 42.94 Crore and REL Rs. 128.06 Crore.
 Sundry Debtors WRTG Rs. 209.68 Crore and WRTM Rs. 67.03 Crore.
 
 (Previous Year: Sundry Creditors, Advances received and Other
 Liabilities for rendering services SPL Rs. 1,183.18 Crore, VIPL Rs. 195.73
 Crore and CAPL Rs. 615.88 Crore. Investment in Equity RInfL Rs. 502 70
 Crore, RInvl Rs. 502.11 Crore and RePL Rs. 1,720.00 Crore. ICDs placed BKPL
 Rs. 9.36 Crore and RICL Rs. 140.62 Crore. Subordinate debt NKTL Rs. 40.29
 Crore, DSTL Rs. 46.80 Crore, SUTL Rs. 166.99 Crore, TDTL Rs. 96.77 Crore and
 TKTL Rs. 120.83 Crore. Advance againstinvestments DAMEPL Rs. 466.95 Crore,
 RPTL Rs. 757.46 Crore and GFTL Rs. 165.62 Crore. Recoverable Expenses REGL
 Rs. 78.23 Crore, RGSPL Rs. 73.95 Crore and REL Rs. 72.97 Crore. Sundry
 Debtors WRTG Rs. 27.84 Crore and WRTM Rs. 37.68 Crore).
 
 (iii) income heads
 
 Gross Revenue of EPC and contracts Division / Sales reversal from WRTG
 Rs. 239.1 7 Crore, WRTM Rs. 380.80 Crore, SPL Rs. 501.04 Crore, CAPL Rs. 623.23
 Crore and VIPL Rs. 292.99 Crore. Dividend received from UPL Rs. 0.40 Crore.
 Rent / Lease rent earned from RComm Rs. 0.51 Crore. Interest earned from
 WRTG Rs. 5.06 Crore, WRTM Rs.6.00 Crore and RICLRs. 6.09 Crore. Other income
 RePLRs. 4.86 Crore, PSTLRs. 1.88 Crore and RNRLRs.4.72 Crore,
 
 (Previous Year: Sale of Electricity to RETL Rs.18.14 Crore. Gross
 Revenue of EPC and contracts Division / Sales reversal from WRTG Rs.
 98.79 Crore, WRTM Rs. 147.95 Crore, SPL Rs. 76204 Crore, CAPL Rs. 87.06 Crore
 and VIPL Rs. 70.26 Crore. Dividend received from UPL Rs.0.12 Crore, RInfL Rs.
 54.73 Crore and RInvL Rs. 60.25 Crore. Rent / Lease Rent earned from BKPL
 Rs. 0.07 Crore. Interest earned from BKPL Rs.0.97 Crore and RICL Rs. 10.76
 Crore. Other income SUTL Rs. 0.45 Crore, TDTL Rs. 0.45 Crore, TKTL Rs. 0.45
 Crore, GFTL Rs. 0.45 Crore and ROSA Rs. 0.38 Crore).
 
 (iv) Expenses heads
 
 Purchase / Services on Revenue account from REIL Rs. 21 .SI Crore and
 RNRL Rs. 76.49 Crore. Purchase of electricity (including Open access
 charges) from RETL Rs. 541.20 Crore. Purchase of Electricity-
 Compensation Bills / IEX from RETL Rs. 1 70.33 Crore. Purchase of other
 items on Capital account from RComm Rs. 0.89 Crore Receiving of Services
 from REILRs. 11.78 Crore, RNRLRs. 28.71 Crore, RePLRs. 23.1 8 Crore and
 RGIRs.18.13 Crore, Rent paid to RICL Rs. 0.76 Crore and RIIPL Rs. 1.93 Crore.
 Dividend paid AAAPVPL Rs. 73.20 Crore,
 
 (Previous Year: Purchase / Services on Revenue account from RNRL Rs.
 242.20 Crore. Purchase of electricity from RETL Rs. 454.43 Crore.
 Purchase of Electricity- Compensation Bills / IEX from RETL Rs. 160.65
 Crore. Receiving of Services from REIL Rs. 4.72 Crore, UPL Rs. 75.87 Crore,
 RNRL Rs. 55.99 Crore and RGI Rs. 9.44 Crore. Rent paid to RICL Rs. 0.53
 Crore. Dividend paid AAAPVPL Rs. 58.44 Crore.).
 
 (v) Salaries, Commission and Other Benefits paid / payable to Shri Anil
 D Ambani Rs. 11.01 Crore (Rs. Nil), Shri S.C. Gupta Rs. 1.1 2 Crore (Rs. 1.1 3
 Crore) and Shri Lalit Jalan Rs. 0.81 Crore (Rs. 1.10 Crore). The Company
 has made payment to Shri Anil D Ambani towards commission for the
 financial year 2009-10 amounting to Rs. 5.50 Crore which was not
 provided in the previous year (Refer note 3 above).
 
 (vi) The Company has given (a) equity support undertakings to power
 procurers in respect of Sasan Ultra Mega Power Project (UMPP),
 Krishnapatnam UMPP, Tiliaya UMPP and Chitrangi 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 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 (now Reliance Power Limited); the amounts
 of which currently are not ascertainable
 
 3.  Segment Reporting:
 
 (Note no. 8 of Schedule 16 of Financial Statements)
 
 Basis of Preparation: The Company operates in two Business Segments:
 Electrical Energy and Engineering, Procurement and contracts (EPC).
 Business segments have been identified as reportable primary segments
 in accordance with Accounting Standard-1 7 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 Company''s own distribution grid. The
 Company supplies power to residential, industrial, commercial and other
 consumers. EPC segment renders comprehensive value-added services in
 construction, erection and commissioning.
 
 Geographical Segments: The Company''s 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
 
 4.  (Note no. 10 of Schedule 16 of Financial Statements)
 
 A Standby Charges:
 
 In the matter of liability of Rs. 515.60 Crore of standby charges with
 The Tata Power Company Limited (TPC) determined by MERC for the period
 April 1, 1998 to March 31, 2004, the Appellate Tribunal of Electricity
 (ATE) determined the total liability atRs. 500 Crore and directed TPC to
 refund Rs. 354 Crore (inclusive of Interest of Rs. 15 Crore upto March 31,
 2004) to the Company plus Interest @ 10% p.a. commencing from April 1,
 2004 till the date of payment. Against the said order, TPC filed an
 appeal with the Supreme Court. The Hon''ble 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 ofRs. 227 Crore and, in addition, deposit a sum ofRs. 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 ofRs. 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 Hon''ble 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 1 2, 2007, in case
 No. 7 of 2002, TPC has claimed an amount ofRs. 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 Company has complied with
 the interim order directions of depositing Rs. 25 Crore with the
 Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98
 Crore
 
 The said amount is disclosed under Contingent Liability in Note
 2(a)(iv) above
 
 5.  Revenue from Sale of Electrical Energy and Regulatory Matters :
 (Note no. 11 of Schedule 16 of Financial Statements)
 
 (a) Tariff Adjustment Account
 
 In accordance with accounting policy (refer note 1 (c) (i)) the Company
 has accrued Rs. 461.97 Crore (Rs. 568.33 Crore) during the year as unbilled
 revenue under ''Current Assets, Loans and Advances''
 
 (b) Regulatory Matters
 
 MERC vide its order dated June 15, 2009 had determined the tariff for
 the distribution business for the financial year 2009-2010. However,
 considering the directives received from the Government of Maharashtra,
 MERC vide its order dated July 15, 2009 stayed the tariff order with
 respect to the certain consumer categories where there was an increase
 in tariff as compared to the previous year tariff. Accordingly, the
 Company billed to the consumers as per the old tariff. Further, MERC
 vide its order dated September 8, 2009, based on the directives
 received from Government of Maharashtra, appointed Administrative Staff
 College of India (ASCI) to investigate whether the Company has
 discharged its duties as envisaged in Electricity Act, 2003 in the most
 economical and efficient manner. After considering the contents of the
 report submitted by ASCI, MERC vide its order dated September 9, 2010
 has vacated the interim order dated July 15, 2009 setting aside the
 stay on the tariff. Subsequent to vacation of the stay order, the
 Company started billing to the consumers as per the above referred
 order and has also filed its Annual Revenue Requirement (ARR) with MERC
 for the financial year 2009-10 and 2010-11.
 
 (c) In accordance with the MERC tariff regulation for determination of
 tariff, the income-tax paid is considered for tariff determination
 (truing up) for the financial years commencing from 2007-08.
 Accordingly, the Company has considered Rs. 1 32.78 Crore of deferred tax
 liability arising out of differences in rates of depreciation between
 MERC and income-tax as Net tax to be recovered in future tariff
 determination,
 
 6.  (Note no. 1 2 of Schedule 16 of Financial Statements)
 
 The Scheme of Restructuring dated May 9, 2009, envisaging transfer of
 various operating divisions of the Company, viz., Dahanu Thermal Power
 Station division, Goa and Samalkot Power Stations division, Power
 Transmission division, Power Distribution division, Toll Roads division
 and Real Estate division to its respective resulting six wholly owned
 subsidiaries was sanctioned by the Hon''ble Bombay High Court on July
 24, 2009, subject to the Company receiving the requisite approvals. In
 view of inter alia the considerable lapse of time of nearly 2 years and
 subsequent changes in the business environment, the proposal is no
 longer considered relevant and has been withdrawn on March 25, 2011
 with the approval of the Hon''ble Bombay High Court, There is no Impact
 on the profitability or business of the Company
 
 7.  Disclosure under Accounting Standard 15 (revised 2005) Employee
 Benefits.  (Note no. 1 3 of Schedule 16 of Financial Statements)
 
 The Company has classified various employee benefits as under: (A)
 Defined contribution plans
 
 a.  Provident fund
 
 b.  Superannuation fund
 
 c.  State defined contribution plans
 
 Employers'' Contribution to Employees'' State insurance
 
 Employers'' Contribution to Employees'' Pension Scheme 1995
 
 The provident fund and the state defined contribution plan are operated
 by the Regional Provident Fund Commissioner and the superannuation fund
 is administered by the trustees of the Reliance infrastructure Limited
 Officer''s Superannuation Scheme. Under the schemes, the Company is
 required to contribute a specified percentage of payroll cost to the
 retirement benefit schemes to fund the benefits. These funds are
 recognized by the income tax authorities
 
 (B) Defined Benefit Plans
 
 a.  Provident Fund (Applicable to certain employees)
 
 b.  Gratuity
 
 c.  Leave Encashment
 
 The guidance on implementing AS 15, Employee Benefits (revised 2005)
 issued by Accounting Standard Board states benefit involving employee
 established provident funds, which require Interest shortfalls to be
 recompensed are to be considered as defined benefit plans. As per the
 audited accounts for the year ended March 31, 2011 of Provident Fund
 Trust maintained by the Company, the shortfall arising in meeting the
 stipulated Interest payment liability has been duly provided for.
 Pending the issuance of guidance note from the Actuary Society of
 India, the Company''s actuary has expressed an inability to reliably
 measure provident fund liabilities
 
 Leave encashment is payable to eligible employees who have earned
 leaves, during the employment and/or on separation as per the Company''s
 policy
 
 11.  (Note no. 14 of Schedule 16 of Financial Statements)
 
 The Company has been legally advised that the Company is considered to
 be established with the object of providinginfrastructural facilities
 and accordingly Section 372A of the Companies Act, 1956 is not
 applicable to the Company
 
 8.  (Note no. 15 of Schedule 16 of Financial Statements)
 
 Revaluation of Tangible Assets
 
 The Company had, based on a valuation made by approved values,
 revalued as at April 1, 2003 the Plant and Machinery located at Dahanu.
 The revaluation of the same was 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. 752.1 7 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 for the year ofRs. 53.96 Crore (Rs. 53.90 Crore) and an
 equivalent amount, has been withdrawn from Revaluation Reserve and
 credited to the Profit and Loss Account,
 
 9.  (Note no. 16 of Schedule 16 of Financial Statements)
 
 Disclosure under Micro, Small and Medium Enterprises Development Act,
 2006
 
 There are no Micro and Small Enterprises, to whom the Company owes
 dues, which are outstanding for more than 45 days as at March 31, 2011.
 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
 
 10.  Equity Share Warrants:
 
 (Note no. 1 8 of Schedule 16 of Financial Statements)
 
 During the year, the Company received an application from AAA Project
 Ventures Private Limited (AAAPVL) for conversion of 2,25,50,000
 warrants into shares along with the payment of balance amount of Rs.
 1,570.99 Crore. The Company allotted 2,25,50,000 equity shares to
 AAAPVL against conversion of said warrants. The outstanding 7,50,000
 warrants after the said conversion have been cancelled and the sum of Rs.
 1 7.42 Crore paid on such warrants is forfeited in accordance with the
 Securities and Exchange Board of India (Issue of Capital and Disclosure
 Requirements) Regulations, 2009. The said amount has been credited to
 Capital Reserve
 
 11.  (Note no. 19 of Schedule 16 of Financial Statements)
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Securities and Exchange Board of India (Buy-back of Securities)
 Regulations, 1998, the Company made a Public announcement to
 buybackthe equity shares of the Company at a maximum price of Rs. 725 per
 equity share, up to an amount not exceeding 10 per cent of the paid-up
 equity share capital and fire reserves (including securities premium)
 of the Company, i.e. up to Rs. 1000 Crore
 
 12.  (Note no. 20 of Schedule 16 of Financial Statements)
 
 During the year, the Company has entered into an Operations &
 Maintenance contract with its 3 subsidiary companies viz. DS Toll Road
 Limited, NKToll Road Limited and PS Toll Road Private Limited, where by
 the Company is entitled to a residual Interest (by way of Fixed and
 Variable charges) in the monthly cash flow of the toll road business
 for a period of 1 2,14 and 15 years respectively. The consideration
 ofRs. 355 Crore, Rs. 275 Crore and Rs. 1,780 Crore payable respectively to
 acquire these rights are amortised over the useful life of the contract
 on the basis of projected revenue
 
 13.  (Note no. 22 of Schedule 16 of Financial Statements)
 
 Scheme of Amalgamation of Reliance Infraprojects Limited (RInf L) with
 the Company:
 
 Pursuant to the approval of the Board vide resolution dated November
 22, 2010 and the sanction of the Scheme of Amalgamation of RInfL with
 the Company by the Hon''ble High Court of Judicature at Bombay on March
 30, 2011, the assets and liabilities of the erstwhile RInfL, a wholly
 owned subsidiary of the Company, were transferred to and vested in the
 Company with effect from the appointed date viz. April 1, 2010 in
 accordance with the Scheme so sanctioned
 
 The amalgamation has been accounted for under the Pooling of Interest
 Method as defined in Accounting Standard 14 - Accounting for
 Amalgamation (AS-1 4) as prescribed under the Companies (Accounting
 Standards) Rules, 2006 and as per the terms of the scheme of
 amalgamation as under
 
 The accumulated balance in Profit and Loss Account ofRs. 1 27.22 Crore as
 on April 1, 2010 of RInfL has been transferred to General Reserve
 
 The assets and liabilities have been taken over at the book value in
 the books of the Company,
 
 Theinvestments of the Company in equity shares of RInfL amounting to Rs.
 502.10 Crore stands cancelled
 
 There were no significant differences in the accounting policies
 followed between the erstwhile Company and the Company as on the
 appointed date
 
 The figures for the previous year do not include figures for the
 erstwhile RInfL and accordingly the current year figures are not
 comparable to those of the previous year.
 
 14.  Derivative instruments :
 
 (Note no. 27 of Schedule 16 of Financial Statements)
 
 (b) Pursuant to the clarification issued by the Institute of Chartered
 Accountants of India on March 29, 2008 on accounting of derivatives,
 the Company has for the year ended March 31, 2011 provided /
 (reversed) unrealised loss of Rs. 39.32 Crore (Previous Year (Rs. 81.08
 Crore)) on account of revaluation of foreign exchange derivative
 instruments at fair values as at the reporting year end. Profit or Loss
 on such foreign exchange derivative instruments will be crystallised /
 realised only on expiry of such instruments in subsequent financial
 years
 
 (c) Commodity contracts:
 
 The Company uses Commodity Future contracts to hedge against
 fluctuations in commodity prices. The following are outstanding
 aluminum future contracts entered into by the Company as on March 31,
 2011
 
 15.  Interest in Joint Venture Operations:
 
 (Note no. 28 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
 
 16.  Power Banking:
 
 (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
 
 17.  Disclosure as required under AS - 19 :
 
 (Note no. 30 of Schedule 16 of Financial Statements)
 
 Disclosure as required under AS - 19 Accounting for Leases as
 prescribed under Companies (Accounting Standards) Rules 2006 is given
 below:
 
 (a) The Company has entered into cancellable leasing agreement for
 office, residential and warehouse premises renewable by mutual consent
 on mutually agreeable terms
 
 18.  (Note no. 31 of Schedule 16 of financial statements)
 
 Figures for the previous year have been
 regrouped/reclassifed/rearranged wherever necessary to make them
 comparable to those for the current year. 
 
 Figures in bracket indicate previous year''s figures, @''- represents
 figures less than Rs. 50,000 which have been shown at actuals in brackets
 with @My dear fellow Shareowners,
 
 It gives me great pleasure to share with you the highlights of our
 Company''s performance during the year 2010-11.  I am delighted to
 inform you that Reliance infrastructure, one of the country''s fastest
 growing companies in the infrastructure sector, continues to play a
 pivotal role in driving the India growth story. Our rapid strides
 towards achieving leadership positions across all major infrastructure
 domains, is leading the way in creating inclusive growth for the nation
 and superior returns for stakeholders.
 
 Over the past few years, the infrastructure sector in India has
 undergone a paradigm shift. The Government, for long the lead direct
 investor in infrastructure creation, has iincreasingly played the role
 of a facilitator, focusing its attention iinstead on formulating the
 appropriate policy framework for attracting privateinvestments into
 the sector through the public-private- partnership model.
 
 The private sector has responded to this shift in economic perspective
 with a great deal of excitement and alacrity as is evident from its
 growing participation in the entire spectrum of infrastructure projects,
 be it roads, ports, airports, urban utilities and transport systems or
 power..
 
 I am proud to report that Reliance infrastructure is now the largest
 private sector infrastructure developer in India. We have made
 significant strides in the development of roads and highways, metro
 rails and other mass rapid transit systems, sea link, airports, cement,
 etc. We have already commissioned or are in the process of doing so
 over 2 dozen large infrastructure projects including 11 road projects,
 3 metro rails, 5 transmission lines, 5 brown field airports, 2 cement
 plants and the Mumbaii sea link.
 
 We are at the threshold of an exciting journey that will take us to
 even greater heights. I seek your continued support in this mission.
 
 Performance Review
 
 I am happy to share with you the highlights of our financial and
 operational performance during the year 2010-11.
 
 - Total income ofRs. 10,266 crore (US$ 2.3 billion), as against Rs. 
 10,908 crore in the previous financial year.
 
 - Cash Profit of Rs. 1,336 crore (US$ 300 million) against Rs. 1,435 crore
 in the previous financial year.
 
 - Net Profit of Rs. 1,081 crore (US$ 242 million) against Rs. 1,152 crore
 in the previous financial year
 
 - Cash Earnings Per Share for the year of Rs. 50 (US$ 1.1) against Rs. 59
 in the previous financial year
 
 - Earnings Per Share (EPS) of Rs. 43 (US$ 1) against Rs. 51 in the previous
 financial year.
 
 With a net worth of about Rs. 17,670 crore (US$ 4 billion), Reliance
 infrastructure ranks among the top performing Indian private sector
 companies in the country
 
 Our group revenues stand at about Rs. 28,270 crore (US.34 billion),
 while our gross fixed assets amount to Rs. 26,050 crore (US$ 5.84
 billion).
 
 Buy-back of Shares
 
 In keeping with our overriding philosophy of creating value for our
 investors, we decided to utilize a part of our accumulated surpluses
 for buy-back of shares, Improving in the process our return on equity.
 Our Company has bought back 18 lakh equity shares for an aggregate
 value of Rs. 115.58 crore up to May 27, 2011.
 
 Power feneration, transmission and distribution Power Generation
 
 Our power generation units at Dahanu, Samalkot, Goa and Koch continue
 to demonstrate significant improvements across major operational,
 environmental and safety performance parameters The Dahanu Thermal
 Power Station, the flagship plant of the Company, continues to operate
 at Plant Load Factor of over 100 per cent over the last eight years
 while all our other power plants recorded plant availability in the
 range of over 90 to 96 per cent.  The Dahanu plant continues to make
 significant progress on six sigma quality iinitiatives for all round
 improvement in business processes. During the year, the Dahanu plant
 iiimplemented the Energy Management system, BS EN 16001 -2009, Power
 Transmission
 
 The Company is developing five transmission projects worth about Rs.
 7,000 crore, making it the largest private player in the transmission
 sector. Reliance Power Transmission Limited (RPTL) the transmission arm
 of the Company, has emerged as the successful bidder in four of the
 eight inter-state transmission projects notified by the Ministry of
 Power, Government of India RPTL will actively participate in the
 bidding for new projects worth approximatelyRs. 8,000 crore so far
 notified by the Ministry of Power.
 
 RPTL has completed two transmission lines of 440 ckt kms associated
 with the Western Region System Strengthening Scheme-II with line length
 of 116 kms. These are the first set of 100 per cent privately owned
 extra high voltage transmission line in India to achieve commercial
 operation. The first line was commissioned in a record of 15 months
 and ahead of schedule.
 
 The Company has also made substantial progress in the remaining
 transmission projects including the Parbati Koldam 40 kV transmission
 line currently being executed by our joint venture company with Power
 Grid Corporation of India Limited and in which RInfra holds 74 per cent
 equity stake Power Distribution
 
 Our Company''s distribution network in Mumbai continues to enjoy the
 distinction of consistently operating its network at 99.98 per cent
 reliability. The Company''s distribution license mentions the terminal
 date as August 15, 2011. The Company has submitted an application to
 Maharashtra Electricity Regulatory Commission (MERC) for a firesh
 license for distribution of electricity. With its consistent
 performance over the last eight decades and world class quality and
 system reliability, the Company is confident that MERC would grant the
 distribution license and ensure that we continue to serve the consumers
 of Mumbai suburbs with renewed vigour and commitment. The Company has
 also initiated various energy conservation and energy efficiency
 programmes under Demand Side Management to create greater social
 awareness on the iiimportance of smarter usage and conservation of
 energy. To bridge the shortfall in the supply of power, the Company has
 initiated procurement of power for medium and long term through a
 competitive bidding process Our two power distribution companies in
 Delhi, BSES Rajdhan Power Limited (BRPL) and BSES Yamuna Power Limited
 (BYPL) again clocked strong operating numbers backed by improvement
 across all major performance parameters. These Discoms have succeeded
 in achieving significant reduction of AT&C losses While BRPL reduced
 its losses from 19.03 per cent to 16.83 per cent, BYPL brought them
 down from 23.11 per cent to 19.89 per cent during FY11. This
 continuing reduction in losses entitles the two companies to a
 performance incentive from the state regulator for the fourth year in a
 row.
 
 I am also proud to report that these Discoms played a pivotal role in
 the successful organization of the Commonwealth Games by ensuring
 uninterrupted power supply, a fact widely acknowledged and appreciated
 by the organizers as well as the Government.  Power Trading
 
 Reliance Energy Trading Limited (RETL), the trading arm of the Company,
 has positioned itself as a favoured trader for trading of power from
 captive / independent power plants and has been consistently ranked
 among the top five trading licensees in terms of volume. RETL is also
 expecting a significant boost in volume through the trading of merchant
 power from the group''s upcoming power projects.  The EPC Business
 
 The Engineering, Procurement and Construction Division (EPC) achieved a
 turnover of Rs. 3,389 crore during the year. It has a record order book
 position of Rs. 29,635 crore as on March 31, 2011. The Division is
 equipped with the requisite expertise and experience to efficiently
 undertake large and complex EPC projects and complete them ahead of
 schedule.  We employ state-of-the-art technology in engineering design
 and project management to execute our projects. The Division is
 currently implementing 7 power projects aggregating 9,900 MW, apart
 from transmission and road projects. We are also developing
 competencies in other infrastructure sectors such as metro/mono rails,
 airports and cement plants infrastructure Projects Road Projects
 
 Our Company is now one of the largest developers of road and highway
 projects for the National Highways Authority of India (NHAI) under the
 build, own, transfer (BOT) scheme. Our roads portfolio includes 1 1
 projects totaling 970 kms and connecting major urban centres in 6
 States at an investment of about Rs. 12,000 crore. Three of the projects
 are operational and six more road projects will be commissioned in the
 current financial year. Construction work is in full swing at all the
 project sites. I am glad to inform you that the Company was the first
 developer to iintroduce Einterprise Toll Management System which would
 facilitate real time toll plaza monitoring, auto MIS and single console
 for the projects.  Metro Projects
 
 I am glad to inform you that our Company is today the largest
 established private player in metro rail sector in the country. The
 Delhi airport express link started commercial operations from February
 2011, the first ever public-private partnership project to become
 operational in India. The airport express link has been built in a
 record time of 27 months and connects New Delhi Railway Station to
 Dwarka via the Indira Gandhi international airport. The construction of
 Mumbai Metro Line I covering Versova-Andheri-Ghatkopar is in full swing
 and we expect to commission the corridor ahead of the contractual
 commissioning date.  For Mumbai Metro Line II covering Charkop-Bandra-
 Mankhurd corridor, financial closure has been achieved and preliminary
 work is in progress.  Cement Business
 
 Reliance Cementation Private Limited, a wholly owned subsidiary of the
 Company, is developing two cement plants of 5 million tonnes each at
 Maihar in Madhya Pradesh and Mukutban in Maharashtra respectively.
 Significant progress has been made in project related activities.
 Airport Projects
 
 Reliance Airport Developers Private Limited has been awarded lease
 rights to develop and operate 5 brownfield airports in Maharashtra. It
 is also developing an airstrip/airport at Sasan in Madhya Pradesh where
 a captive power plant is being developed by a subsidiary of Reliance
 Power.  Western fireway Sealink
 
 The Company has formed a special purpose vehicle to execute the Western
 fireway Sea Link Project which envisages operation and maintenance of
 the existing Bandra-Worli Sealink and construction of Sealink between
 Worli to Haji Ali in Mumbaii for a concession period of 40 years. The
 project is proposed to be completed within a period of 42 months from
 the date of handing over of the existing Bandra-Worli Sealink,
 Corporate Governance
 
 Rinfra has always maintained the best governance standards and
 practices by adopting, as is the norm for all constituent companies of
 the Group, the Reliance Group - Corporate Governance Policies and Code
 of Conduct. These Policies and Code prescribe a set of systems,
 processes and principles, which conform to the highest international
 standards and are reviewed periodically to ensure their continuing
 relevance, effectiveness and responsiveness to the needs of investors,
 both local and global, and all other stakeholders Social Commitments
 
 As a responsible corporate citizen, we take our social obligations
 seriously. During FY 2011, we pursued a number of welfare programmes
 aimed at Improving the quality of life of communities in and around our
 businesses. Our iinitiatives have focused on education, health, water,
 sanitation, rural development, safety and environment, giving priority
 to the needy and economically vulnerable sections of society in the
 vicinity of our power stations and contracting sites.  Awards and
 Recognitions
 
 It is a matter of pride and satisfaction that our Company has received
 several prestigious national and global awards in appreciation of our
 outstanding contribution in various fields viz. energy management and
 energy conservation, quality environment best practices, water
 management, health and safety, human resource training and development.
 Our Commitment
 
 Our founder, the legendary Shri Dhirubhai Ambani, gave us a simple
 maintra: to aspire to the highest global standards of quality,
 efficiency, operational performance and customer care. We remain
 committed to upholding that vision. Dhirubhai exhorted us to think big.
 With your continued support, we will think bigger.  Indeed not just
 bigger but better, creating ever greater value for all our
 stakeholders.