Reliance Power

1.  (a) Contingent Liabilities:
 
 Counter guarantees issued to banks against guarantees issued by them on
 behalf of subsidiary companies aggregating to Rs 6,000,000,000
 (Previous Year Rs 6,000,000,000).
 
 (b) Capital Commitments:
 
 Estimated amount of contracts remaining unexecuted on capital account
 and not provided for Rs 81,341,991 (Previous Year Rs 85,697,478).
 
 2. The Company has entered into a Memorandum of Agreement (MOA) with
 Government of Arunachal Pradesh for execution of four hydro power
 projects of 1,200 MW Kalai II on Lohit River Basin, 420 MW Amulin, 500
 MW Emini and 400 MW Mithundon on river Dibang in the state of Arunachal
 Pradesh. As per the terms of MOA dated March 2, 2009, the Company has
 deposited Rs 2,085,000,000 towards upfront premium and processing fees.
 
 3. Pursuant to the approval of the Board of Directors at its meeting
 held on February 24, 2008 and subsequent approval of the shareholders
 through postal ballot, the Company has issued 136,800,000 bonus shares
 to all the shareholders of the Company except the promoters (pursuant
 to the waiver received from Shri Anil Dhirubhai Ambani, Reliance
 Innoventures Private Limited, AAA Project Ventures Private Limited and
 Reliance Infrastructure Limited) in the ratio of 3:5 equity shares of
 Rs 10 each by way of capitalisation of sum standing to the credit of
 securities premium account of the Company. The earnings per share
 (basic and diluted) has been adjusted accordingly for the previous year
 also.
 
 4. The Company is currently developing a 7,480 MW gas-fired power
 project to be located at the Dhirubhai Ambani Energy City in Dehra
 village, Dadri, Uttar Pradesh. The Dadri project will consist of five
 modules of 1,400 MW plus an additional 480 MW module and employ CCGT
 technology. The Company has already acquired 2,100 acres of land and is
 in the process of acquiring further 400 acres of land. The project has
 already received all statutory clearances from the Central and Uttar
 Pradesh government authorities including Environmental Clearance for
 the full capacity of 7,480 MW. The Project will use gas sourced from
 Krishna–Godavari basin (“KG Basin”) being developed by Reliance
 Industries Limited (RIL). Final hearing in RIL’s gas supply commitment
 from KG D-6 to Dadri project in Bombay High Court concluded on January
 30, 2009 and the judgment is expected soon. Critical site activities
 like construction of approach road and site office have been completed
 and boundary wall construction is in progress.  Other activities will
 be commenced as soon as the gas supply issue with RIL is resolved.
 Expenditure incurred during the construction and incidental to setting
 up the project are carried forward as “Capital Work-in-Progress”. These
 expenses would be capitalized as fixed assets on completion of the
 project and commencement of commercial operations and the Company does
 not envisage provision for impairment as at the balance sheet date.
 
 5. Related Party Disclosure:
 
 As per accounting standard-18 ‘Related Party Disclosures’ as prescribed
 under the Companies (Accounting Standards) Rules, 2006, the Company’s
 related parties and transactions are disclosed below:
 
 A.  Parties where Control exists: (i) Subsidiaries
 
 a) Sasan Power Limited (SPL)
 
 b) Rosa Power Supply Company Limited (RPSCL)
 
 c) Maharashtra Energy Generation Limited (MEGL)
 
 d) Vidarbha Industries Power Limited (VIPL)
 
 e) Tato Hydro Power Private Limited (THPPL)
 
 f) Siyom Hydro Power Private Limited (SHPPL)
 
 g) Chitrangi Power Private Limited
 
 (Formerly known as MP Power Generation Private Limited) (MPPGPL)
 
 h) Urthing Sobla Hydro Power Private Limited (USHPPL)
 
 i) Kalai Power Private Limited (KPPL)
 
 j) Coastal Andhra Power Limited (CAPL)
 
 k) Reliance Coal Resources Private Limited (RCRPL)
 
 l) Sasan Power Infrastructure Limited (SP Infrastructure) w.e.f.
 23.03.2009
 
 m) Sasan Power Infraventures Private Limited (SP Infraventures) w.e.f.
 23.03.2009
 
 n) Reliance Power International Sarl (RPIS) w.e.f. 30.10.2008
 
 o) Coastal Andhra Power Infrastructure Limited (CAPIL)
 
 p) Maharashtra Energy Generation Infrastructure Limited (MEGIL)
 
 B.  Other related parties with whom transactions have taken place
 during the year: (i) Investing Parties
 
 a) Reliance Infrastructure Limited (Formerly known as Reliance Energy
 Limited) (RInfra)
 
 b) AAA Project Ventures Private Limited (APVPL)
 
 (ii) Person having control over the investing party as defined in (i)
 (b) above
 
 Shri Anil D Ambani (Chairman) 
 
 (iii) Key Management Personnel
 
 Shri K H Mankad (Whole Time Director) (w.e.f. 07.11.2007)
 
 Shri J P Chalasani (Chief Executive Officer) (w.e.f. 08.03.2008)
 
 Shri Paresh Rathod (Manager) (w.e.f. 28.04.2008)
 
 (iv) Enterprises over which person described in clause (ii) above have
 control
 
 a) Reliance Infocomm Infrastructure Private Limited (RIIPL)
 
 b) Reliance General Insurance Company Limited (RGICL)
 
 13. The management 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.
 
 6. The Company operates in only one segment, namely power generation,
 hence there are no reportable segments under accounting standard - 17
 ‘Segment Reporting’ as prescribed by Companies (Accounting Standards)
 Rules,
 
 7. Disclosure under Micro, Small and Medium Enterprises Development
 Act, 2006
 
 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.
 
 8. Information to the extent not disclosed, with regard to matters
 specified in paragraph 4A, 4C and 4D of Part II of Schedule VI of the
 Companies Act, 1956 is either Nil or not applicable to the Company for
 the year ended March 31, 2009.
 
 9. Figures for the previous year have been regrouped rearranged
 wherever necessary to make them comparable for the current year.