1.  Contingent Liabilities:
 
 a.  Claims against the Company not acknowledged as debt:
 
                                                  (Rs. in lakh)
 
 Particulars                         31.03.2011      31.03.2010
 
 Capital Works*                           35731           56607
 
 Land Compensation                         5324            5322
 
 Disputed Service Tax Demand               1236            1236
 
 Others                                      16              97
 
 Total                                    42307           63262
 
 * This includes Rs.21043 lakh (Previous Year: Rs.37757 lakh) representing
 the amount of basic claims by the contractors of NJHPS. As the amounts
 recommended by the Dispute Review Boards (DRBs)/Additional Dispute
 Review Boards (ADRBs) are much less than the amounts claimed by the
 contractors, the claims on account of further interest and escalation,
 if any, has not been considered.
 
 b.  The above contingent liabilities do not include claims against
 pending cases in respect of service matters and others where the amount
 cannot be quantified.
 
 c.  It is not practicable to work out the outflow and possibilities of
 any reimbursement.
 
 2.  Capital Commitments:
 
 Estimated amount of contracts remaining to be executed on capital
 account (net of advances) and not provided for is Rs.97563 lakh (Previous
 Year: Rs.114408 lakh).
 
 3.  Pending approval of the Competent Authority, provisional payments
 made towards executed quantities of some of the items beyond approved
 quantities as also for extra items, are included in Capital Works-in
 Progress.
 
 4.  The revised cost estimate (RCE -IV) of Nathpa Jhakri Hydro Power
 Station (NJHPS) has been approved by the management at Rs.859341 lakh.
 
 5.  Title deeds/title in respect of land of some projects/ units,
 costing Rs. Nil (Previous YearRs.220 lakh) measuring Nil (Previous Year 01-
 18-59 hectare) and buildings costing Rs.15 lakh (Previous Year: Rs.15 lakh)
 are yet to be executed / passed in favour of the company. Expenses on
 stamp duty etc. shall be accounted for on registration.
 
 Possession of land measuring 0-24-19 hectare (Previous Year: 01 - 06-77
 Hectare) is sti 11 to be handed over to the Company.
 
 6.  i) As per the agreement between Govt, of Himachal Pradesh (GoHP)
 and the company, Luhri Hydroelectric Project shall be executed by an
 SPV with the shareholding of GoHP and the company . A proposal for
 execution of this project by the company itself is under consideration.
 Pending decision on this matter/formation of SPV, a total expenditure
 of Rs.7653 lakh (Previous Year: Rs.5657 lakh) has been incurred on survey
 and investigation of the project, which includes fixed assets Rs.387 lakh
 (Previous Year: Rs.286 lakh) and capital work in progress Rs.7266 lakh
 (Previous Year: Rs.5371 lakh).  ii) GoHP has withdrawn Khab Hydroelectric
 Project from the company. The expenditure incurred on the project
 amounting to Rs.1263 lakh has been shown as recoverable as communicated
 by GoHP.
 
 7.  The Central Electricity Regulatory Commission (CERC) vide
 notification dated 19.01.2009 has notified the Tariff Regulations, 2009
 containing inter-alia the terms & conditions for determination of
 tariff, applicable for a period of five years with effect from
 01.04.2009. Pending filing of petition by the company and final
 determination of tariff by the CERC, the sales for the year have been
 provisionally recognized at Rs.171538 lakh (Previous Year: Rs.171942 lakh,
 inclusive of Deferred Tax Materialised upto 31.03.2009 of Rs.3182 lakh)
 on the basis of principles enumerated in the said regulations, on the
 capital cost al lowed by CERC for determ in i ng tariff for the year
 2008-09.  The Tariff Regulations, 2009 provide that pending
 determination of tariff by the CERC, the company has to provisionally
 bill the beneficiaries at the tariff applicable as on 31.03.2009 on
 capital cost of Rs.799080 lakh, approved by the CERC. The amount
 provisionally billed for the year 2010-11 on this basis is Rs.163286 lakh
 (including billing of tax recovery) (Previous Year: Rs.164413 lakh).
 
 8.  Sundry Debtors and Sales include an amount of Rs.17734 lakh (Previous
 Year: Rs.10447 lakh) towards bills raised after the end of the financial
 year. Further, billing for tax of (-) Rs.13984 lakh (Previous Year:
 (-)Rs.4014 lakh) is yetto be done.
 
 9.  Leave Salary/Pension Contribution in respect of employees on
 deputation has been paid /provided on the basis of provisional demand
 received from the lending organizations. The difference, if any, will
 be adjusted on receipt of final demand.
 
 10.  Some of the balances shown under advances, deposits, creditors,
 material in transit/material lying with third parties are subject to
 confirmation, reconciliation and consequential adjustment, if any.
 
 11.  In the opinion of the management, the value of current assets,
 loans and advances on realization in the ordinary course of business,
 will not be less than the value at which these are stated in the
 Balance Sheet.
 
 12.  Disclosure under the provisions of Accounting Standard (AS)-IS
 ''Employee Benefits'' 
 
 General description of various defined employee benefits are as under:
 
 a) Defined Contribution plans:
 
 (i) Employers contribution to Provident Fund:
 
 The Company pays fixed contribution to Provident Fund at predetermined
 rates to a separate trust, which invests the fund in permitted
 securities.  The contribution of Rs.692 lakh (Previous year: Rs. 738 lakh)
 to the fund for the year is recognized as expense and is charged to the
 Profit & Loss Account and Expenditure During Construction (EDC). The
 obligation of the company is limited to such fixed contribution and to
 ensure a minimum rate if return to the members as specified by Gol. 
 
 b) Defined benefit plans:
 
 (i) Gratuity:
 
 The Company has a defined benefit gratuity plan, which is regulated as
 per the provisions of Payment of Gratuity Act, 1972.  The scheme is
 funded by the company and is managed by a separate trust. The liability
 for the same is recognized on the basis of actuarial valuation.
 
 (ii) Leave encashment:
 
 The Company has a defined benefit leave encashment plan for its
 Employees. Under this plan they are entitled to encashment of earned
 leaves and medical leaves subject to certain limits and other
 conditions specified for the same. The liability towards leave
 encashment has been provided on the basis of actuarial valuation.
 
 (iii) Retired Employee Health Scheme:
 
 The Company has a Retired Employee Health Scheme, under which retired
 employee and the spouse are provided medical facilities in the Company
 hospitals/empanelled hospitals. They can also avail treatment as
 Out-Patient subject to a ceiling fixed by the Company.
 
 (iv) BaggageAllowance:
 
 Actual cost of shifting from place of duty at which employee is posted
 at the time of retirement to any other place where he/she may like to
 settle after retirement is paid as per the rules of the Company.
 
 The schemes mentioned at b(ii) to b(iv) are unfunded and are recognized
 on the basis of actuarial valuation.
 
 (v) As the leave travel concession has been merged with al lowances
 with effect from 26.11.2008, as per ''DPE Guidelines for Wage Revision'',
 and is not payable separately, no provision for the same has been made
 during the year. The provision made during earlier years and
 outstanding at the end of the year amounting to Rs.86 lakh is considered
 sufficient to meet the earlier liability.
 
 13.  Segment reporting:
 
 As the company is primarily engaged in only one segment viz.
 ''Generation and sale of hydroelectric power'', there are no reportable
 segments as per Accounting Standard -17.
 
 14.  Related Party Disciosure:
 
 As required by Accounting Standard (AS) - 18 ''Related party
 disclosures'', details of transactions with related parties are: a)
 Related Parties-Key Management Personnel: Whole Time Directors:
 
 Shri H.K. Sharma Chairman & Managing Director (CMD)
 
 upto 25-02-2011
 
 Shri R.P. Singh Director (Electrical) and additional charge of
 
 CMD from 01 -03-2011
 
 Shri R.N.MisraDirector (Civil) from 21 -05-2010
 
 Shri R.S.Katoch Director (Personnel) upto 28-02-2011
 
 Shri N.LSharma Director (Personnel) from 22-03-2011
 
 ShriA.S.BindraDirector (Finance) from 09-12-2010
 
 b) Remuneration to key management personnel is Rs.92 lakh (Previous Year:
 Rs.79 lakh), and amount of dues outstanding to the company as on
 31.03.2011 isRs.10 lakh (Previous Year: Rs.5 lakh).
 
 15. The Company''s significant leasing arrangements are in respect of
 operating leases of premises for residential use of employees, offices,
 guesthouses & transit camps. These leasing arrangements, which are not
 non-cancellable, are usually renewable by mutual consent on mutually
 agreeable terms. The Schedule of Employees remuneration and benefits
 include Rs.210 lakh (Previous Year: Rs.169 lakh) towards lease payments,
 net of recoveries, in respect of premises for residential use of
 employees. Lease payments in respect of premises for offices, guest
 house & transit camps are shown as Rent /Hiring charges under
 Generation, Administration and other expenses / Expenditure during
 Construction (EDO.
 
 16.  Impairment of Assets-AccountingStandard-28
 
 In the opinion of the management, there is no indication of any
 significant impairment of assets during the year.
 
 17.  During the year, the company has identified certain spares of
 capital nature which were earlier included in inventory. As a result,
 the capital spares of Rs.3592 lakh have been capitalized, and
 depreciation amounting to Rs.653 lakh relating to earlier years has been
 shown under Schedule -18 ''Prior period Adjustment''.
 
 18.(i)The regular assessment of the company for the assessment
 year 2008-09 has been completed during the year and a demand of tax 
 and interest amounting to Rs.8750 lakh has been raised. The company
 deposited the demand amount and filed an appeal against the said 
 assessment before the CIT (Appeals).
 
 (ii) For the assessment years 2006-07and 2007-08, the company has
 received refunds of tax amounting to Rs.1640 lakh and Rs.1984 lakh
 respectively pursuant to CIT (Appeals) orders.  The net tax of Rs.5126
 lakh has been provided for in accounts as earlier years tax adjustment.
 As the above tax relates to tariff period 2004-09, and is
 payable/recoverable from beneficiaries separately as a pass through
 item, the net impact of the same (grossed up with current year tax
 rates) has been treated as sales for the year and passed on to the
 beneficiaries for the relevant years.
 
 (iii) For the assessment year 2009-10, the company received tax refund
 of 79623 lakh relating to advance against depreciation. As the company
 has written back tax of 710853 lakh (grossed up)during the year
 2009-10, the difference of 71230 lakh has also been provided as earlier
 yeartax adjustment.
 
 The interest received on tax refunds at para (ii) & (iii) above
 amounting to 7783 lakh has also been passed on to the beneficiaries.
 
 19.  Changes in Accounting Policies:
 
 19.1 A new Accounting Policy 13.4 regarding Corporate Social
 Responsibility (CSR) has been added as required under guidelines on
 Corporate Social Responsibility (CSR) for Central Public Sector
 Enterprises (CPSEs). Due to adoption of above guidelines, profit of the
 Company has reduced by 7430 lakh and provision has increased by the
 same amount.
 
 20. Some of the Accounting Policies (i.e 1.0, 5.1, 5.9, 10.0, 11.3,
 12.0, 14.2 and 15.0) have been added/re-worded/modified to give better
 presentation and/or to disclose the practices followed by the company.
 These changes in accounting policies have no material impact on the
 accounts for the year.
 
 21.  As required under Guidelines on Corporate Social Responsibility
 (CSR) for Central Public Sector Enterprises (CPSEs), company is
 required to spend a minimum of 0.50% of Profit After Tax (PAT) of
 previous year. Accordingly, an amount of 7486 lakh has been charged to
 Profit & Loss Account Unspent amount of 7430 lakh has been carried over
 and shown under Provisions.
 
 22.  a) Information with regard to amount due to SSI units has been
 determi ned on the basis of i nformation avai I able with the Company.
 b) The Company has not received any intimation from the suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006 as at the Balance Sheet date and therefore no
 disclosures required under the said Act have been made.
 
 23.  Book overdraft represents cheques issued by the company pending
 clearance againsttheflexi/other deposits with the banks classified
 under term deposits.
 
 24.  The wage revision of employees w.e.f. 01.01.2006/01.01.2007 has
 been implemented during the year. Accordingly, the provision for wage
 revision and performance related pay made during earlier years have
 been adjusted.
 
 25.  a) On 13th April,2010, thecompany allotted 2,78,12,SOOequity
 shares of 710/- each at a premium of 74.72 per share, on preferential
 basis, to the Govt of Himachal Pradesh (CoHP) totaling74094lakh.
 
 b) The Govt, of India (Gol) disinvested 41.50 Crore equity shares of
 710 each (about 10% of the capital) of the company through Initial
 Public Offer (IPO), and the shares of the company have been listed on
 the recognized stock exchanges on 20th May, 2010.
 
 26.  Previous Year figures have been recast/regrouped/rearranged
 wherever considered necessary.
 
 27.  The Financial Statements are reported in Indian Rupees and all
 figures have been rounded off to the nearest 7 in lakh except when
 otherwise stated.
 
 28.  Balance sheet abstract and company''s general business profile as
 per Part-IV Schedule VI to the Companies Act,1956, isenclosed.