1.  During the year the Company has changed its accounting policy
 pertaining to amounts received from consumers towards capital/service
 line contributions. These contributions which were earlier recognised
 as liability are now recognised as income over the life of the fixed
 assets. Pursuant to this change a sum of Rs. 38.90 crores pertaining to
 earlier years has been recognised as income during the current year.
 
 2.  During the previous year, the Company issued 3,000 1.75% Foreign
 Currency Convertible Bonds (FCCB) with face value of U.S. $ 100,000
 each aggregating to U.S. $ 300 million (Rs. 1,404.45 crores at issue, net
 proceeds received Rs. 1,391.67 crores). The bondholders have an option to
 convert these Bonds into Equity Shares, at an initial conversion price
 of Rs. 1,456.125 per share at a fixed rate of exchange on conversion of Rs.
 46.81 = U.S. $ 1.00, at any time on and after 31st December, 2009, upto
 11th November, 2014. The conversion price is subject to adjustment in
 certain circumstances. The FCCB may be redeemed, in whole but not in
 part, at the option of the Company at any time on or after 20th
 November, 2011 subject to satisfaction of certain conditions. Unless
 previously converted, redeemed or repurchased and cancelled, the FCCB
 fall due for redemption on 21st November, 2014 at 109.47 percent of
 their principal amount together with accrued and unpaid interest.
 
 The unutilised portion of FCCB amounting to U.S. $ 129.44 million (31st
 March, 2010 – U.S. $ 247.75 million) has been invested in short term
 deposits with Bank.
 
 3.  During the previous year, the Company issued equity shares in the
 form of Global Depository Receipts (GDRs) listed on the Luxembourg
 Stock Exchange for a gross amount of U.S. $ 335 million. Each GDR
 represents 1 equity share of the Company, at a nominal value of Rs. 10
 per equity share. The Company had issued 1,48,38,110 GDRs which had
 been priced at U.S. $ 22.577 per GDR (Rs. 48.27 being the reference
 exchange rate) as per relevant pricing guidelines for issue of GDRs.
 Consequently, in previous year, there was an increase in the Subscribed
 Share Capital by Rs. 14.84 crores and Securities Premium Account by Rs.
 1,601.38 crores (net of issue expenses).
 
 4.  In an earlier year, the Company had commissioned its 120 MW thermal
 power unit at Jojobera, Jharkhand. Revenue in respect of this unit is
 recognised on the basis of a draft Power Purchase Agreement prepared
 jointly by the Company and its customer which is pending finalisation.
 
 5.  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.
 
 6.  The Company has an investment in Tata Teleservices Limited (TTSL)
 of Rs. 735.48 crores (31st March, 2010 – Rs. 735.48 crores).  Based on the
 accounts as certified by the Management for the year ended 31st March,
 2011, TTSL has accumulated losses which have significantly eroded its
 net worth. In the opinion of the Management, having regard to the long
 term nature of the business, there is no diminution other than
 temporary, in the value of the investment.
 
 7.  Capital commitments not provided for are estimated at Rs. 903.72
 crores (31st March, 2010 – Rs. 594.10 crores).
 
 8.  Contingent Liabilities and Other Commitments:
 
 (a) Claims against the Company not acknowledged as debts Rs. 261.81
 crores (31st March, 2010 – Rs. 216.14 crores) consists mainly of the
 following:
 
 (i) Octroi claims disputed by the Company aggregating to Rs. 5.03 crores
 (31st March, 2010 – Rs. 5.03 crores), in respect of Octroi exemption
 claimed by the Company.
 
 (ii) A Suit has been filed against the Company claiming compensation of
 Rs. 20.51 crores (31st March, 2010 – Rs. 20.51 crores) by way of damages
 for alleged wrongful disconnection of power supply and interest accrued
 thereon Rs. 103.37 crores (31st March, 2010 – Rs. 99.06 crores).
 
 (iii) Rates, Cess, Way Leave Fees, Entry tax and Duty claims disputed
 by the Company aggregating to Rs. 87.47 crores (31st March, 2010 – Rs.
 62.14 crores). In respect of certain dues as per the terms of an
 agreement, the Company has the right to claim reimbursement from a
 third party.
 
 (iv) Other claims against the Company not acknowledged as debts Rs. 45.43
 crores (31st March, 2010 – Rs. 29.40 crores).
 
 (c) Uncalled liability on partly paid up shares Rs. 31.03 crores (31st
 March, 2010 – Rs. 55.60 crores).
 
 (ii) In terms of the Sponsor Support agreement entered into between the
 Company, Coastal Gujarat Power Limited (CGPL) and lender''s of CGPL, the
 Company has undertaken to provide support by way of base Equity
 contribution to the extent of 25% of CGPL''s project cost and additional
 equity or subordinated loans to be made or arranged for, if required as
 per the financing agreements to finance the project. The sponsor
 support also includes support by way of additional equity for any
 overrun in project costs and Debt Service Reserve Guarantee as provided
 under the financing agreements. The support will cease on the date of
 financial completion as defined under the relevant financing
 agreements. Further, CGPL has entered into an Agreement with the
 Company for Additional Subordinated Loan to the extent of U.S. $ 50
 million (equivalent to Rs. 200.00 crores). In accordance with this
 agreement the Company has provided an Additional Subordinated Loan of Rs.
 200.00 crores (31st March, 2010 – Rs. 172.00 crores) to CGPL. The accrued
 interest on Additional Subordinated Loan shall be payable subject to
 fulfillment of conditions in Subordination Agreement and Coal Supply
 and Transportation Agreements Completion Date (CSTACD) agreement.
 
 (iii) In terms of the Sponsor Support agreement entered into between
 the Company, Industrial Energy Limited (IEL) and lender''s of IEL, in
 the event of any overrun in the project cost of IEL to the extent of
 10% of the project cost, the Company has undertaken to provide in
 proportion to its shareholding in IEL, support by way of infusion of
 fresh equity/preference capital or unsecured loans.
 
 (e) In respect of NELCO Limited, the Company has undertaken to arrange
 for the necessary financial support to NELCO Limited in the form of
 interim short term funding for meeting its business requirements.
 
 (f) In respect of the Standby Charges dispute with Reliance
 Infrastructure Ltd. (R-Infra - formerly Reliance Energy Ltd.) for the
 period from 1st April, 1999 to 31st March, 2004, the ATE, set aside the
 MERC Order dated 31st May, 2004 and directed the Company to refund to
 R-Infra as on 31st March, 2004, Rs. 354.00 crores (including interest of
 Rs. 15.14 crores) and pay interest at 10% per annum thereafter. As at
 31st March, 2011 the accumulated interest was Rs. 162.36 crores (31st
 March, 2010 - Rs. 151.16 crores) (Rs. 11.20 crores for the year ended 31st
 March, 2011). On appeal, the Hon''ble Supreme Court vide its interim
 order dated 7th February, 2007, has stayed the ATE Order and in
 accordance with its directives, the Company has furnished a bank
 guarantee of the sum of Rs. 227.00 crores and also deposited Rs. 227.00
 crores with the Registrar General of the Court which has been withdrawn
 by R-Infra on furnishing the required undertaking to the Court. The
 said deposit has been accounted as Other Deposits.
 
 Further, no adjustment has been made for the reversal in terms of the
 ATE Order dated 20th December, 2006 of Standby Charges credited in
 previous years estimated at Rs. 519.00 crores. The aggregate of Standby
 Charges credited in previous years, net of tax is estimated at Rs. 415.56
 crores, which will be adjusted, wholly by a withdrawal/set off from
 certain Statutory Reserves as allowed by MERC. No provision has been
 made in the accounts towards interest that may be finally determined as
 payable to R-Infra. Since 1st April, 2004, the Company has accounted
 Standby Charges on the basis determined by the respective MERC Tariff
 Orders.
 
 The Company is of the view, supported by legal opinion, that the ATE''s
 Order can be successfully challenged and hence, adjustments, if any,
 including consequential adjustments to the Deferred Tax Liability Fund
 and the Deferred Tax Liability Account will be recorded by the Company
 on the final outcome of the matter.
 
 (g) MERC vide its Tariff Order dated 11th June, 2004, had directed the
 Company to treat the investment in its Wind energy project as outside
 the Mumbai Licensed Area, consider a normative Debt Equity ratio of
 70:30 to fund the Company''s fresh capital investments effective 1st
 April, 2003 and had also allowed a normative interest charge @ 10% p.a.
 on the said normative debt. The change to the Clear Profit and
 Reasonable Return (consequent to the change in the Capital Base) as a
 result of the above mentioned directives for the period upto 31st
 March, 2004, has been adjusted by MERC from the Statutory Reserves
 along with the disputed Standby Charges referred to in Note 10(f)
 above. Consequently, the effect of these adjustments would be made with
 the adjustments pertaining to the Standby Charges dispute as mentioned
 in Note 10(f) above.
 
 (h) In an earlier year, in terms of the agreements entered into between
 Tata Teleservices Ltd. (TTSL), Tata Sons Ltd. (TSL) and NTT DoCoMo,
 Inc. of Japan (Strategic Partner-SP), the Company was given by Tata
 Sons an option to sell 2,72,82,177 equity shares in TTSL to the S P, as
 part of a secondary sale of 25,31,63,941 equity shares effected along
 with a primary issue of 84,38,79,801 shares by TTSL to the S P.
 Accordingly, the Company realised Rs. 316.72 crores on sale of these
 shares resulting in a profit of Rs. 255.62 crores.
 
 If certain performance parameters and other conditions are not met,
 should the SP decide to divest its entire shareholding in TTSL,
 acquired under the primary issue and the secondary sale and should TSL
 be unable to find a buyer for such shares, the Company is obligated to
 acquire the shareholding of the S P, at the higher of fair value or 50
 percent of the subscription purchase price, in proportion of the number
 of shares sold by the Company to the aggregate of the secondary shares
 sold to the S P, or if the SP divests the shares at a lower price pay a
 compensation representing the difference between such lower sale price
 and the price referred to above.
 
 Further, in the event of breach of the representations and warranties
 (other than title and tax) and covenants not capable of specific
 performance, the Company is liable to reimburse TSL, on a pro-rata
 basis, upto a maximum sum of Rs. 409.51 crores.
 
 The exercise of the option by SP being contingent on several variables,
 the liability if any, is considered by management to be remote and
 indeterminable.
 
 (i) In accordance with the terms of the Share Purchase Agreement and
 the Shareholder''s Agreement entered into by Panatone Finvest Ltd.
 (Panatone), an associate of the Company, with the Government of India,
 Panatone has contractually undertaken a Surplus Land obligation
 including agreeing to transfer 45% of the share capital of the
 Resulting Company, at Nil consideration, to the Government of India and
 other selling shareholders upon Demerger of the Surplus Land by Tata
 Communications Limited (TCL). The Company has till date acquired
 1,34,22,037 shares of TCL from Panatone. The Company would be entitled
 to be allotted 4.71% of the share capital of the Resulting Company
 based on its holding of 1,34,22,037 shares of TCL. The Company has
 undertaken to Panatone to bear the Surplus Land obligation pertaining
 to these shares.
 
 (j) The Company has a long term investment of Rs. 3,172.50 crores
 (including advance towards equity) and has extended loans amounting to
 Rs. 221.06 crores (including interest accrued) to Coastal Gujarat Power
 Limited (CGPL) a wholly owned subsidiary of the Company which is
 implementing the 4000 MW Ultra Mega Power Project at Mundra (Mundra
 UMPP).
 
 Management is of the view that at the end of the reporting period there
 are estimation uncertainties in assessing the recoverability of
 carrying amounts of asset under construction that could result in a
 material adjustment to the Company''s long term investment in CGPL.
 
 CGPL has agreed to charging no escalation on 55 percent of the cost of
 coal in terms of the 25 year power purchase agreement relating to the
 Mundra UMPP. During the year, as a result of the changes in the fuel
 prices, management has assessed the recoverability of the carrying
 amount of the asset under construction at Mundra as of 31st March, 2011
 of Rs. 12,842.95 crores and concluded that the cash flows expected to be
 generated (on completion of construction and commencement of commercial
 operations) over the useful life of the asset of 40 years would be
 sufficient to recover the carrying amount of such asset. In estimating
 the future cash flows, management has based on externally available
 information, made certain assumptions relating to the future fuel
 prices, future revenues, operating parameters and the asset''s useful
 life which management believes reasonably reflects the future
 expectation of these items.
 
 Having regard to the above, in the opinion of the management of the
 Company, no provision is considered necessary on this account as at
 31st March, 2011.
 
 However, if these assumptions change consequent to change in future
 conditions, there could be an adverse effect on the recoverable amount
 of the underlying asset.
 
 The assumptions will be monitored on periodic basis by the management
 and adjustments will be made if external conditions relating to the
 assumptions indicate that such adjustments are appropriate.
 
 11.  (a) In the previous year, in respect of the Company''s Generation
 Business as a Licensee, MERC in its Tariff Order dated 28th May, 2009,
 had drawn from Contingencies Reserve to partially meet the impact on
 tariff of the ATE Order dated 12th May, 2008, wherein ATE upheld the
 stand taken by the Company regarding allowability of
 expenses/accounting principles which were earlier disallowed/not
 recognised by MERC in its truing-up for financial years 2004-05 and
 2005-06. Accordingly, the Company had drawn Rs. 108.83 crores from
 Contingencies Reserve. Further, the Company had recognised revenue of Rs.
 105.40 crores and transferred Rs. 24.89 crores from Tariffs and Dividends
 Control Reserve consequent to the above Order and the Orders pertaining
 to the Transmission and Distribution Businesses dated 28th May, 2009
 and 15th June, 2009 respectively. Certain disallowances arising from
 these Orders aggregating to about Rs. 91.00 crores had not been
 recognised as expense since they have been challenged by the Company at
 the ATE.
 
 (b) In the previous year, ATE in its Order dated 15th July, 2009, had
 upheld the Company''s claim regarding allowability of certain
 expenses/accounting principles which were earlier disallowed/not
 recognised by MERC in its truing-up for the financial year 2006-07. On
 this basis, during the period ended 31st December, 2009, the Company
 had treated such expenses as recoverable through tariff and had
 recognised revenue of Rs. 147.00 crores in respect of the financial years
 2006-07 to 2008-09.
 
 (c) During the year ended 31st March, 2011, MERC had completed
 truing-up for the financial year 2008-09 and has accordingly issued
 Tariff Orders. In these Tariff Orders, it has disallowed certain
 reasonable claims made by the Company amounting to Rs. 74.00 crores.
 Further, while giving effect to the favourable ATE Order dated 15th
 July, 2009, pertaining to the financial years 2006-07 to 2007-08, MERC
 has disallowed certain items amounting to Rs. 47.00 crores. Consequently,
 the Company has appealed to the ATE against these disallowances. Based
 on the earlier favourable ATE Order on similar matters, the Company is
 confident of ATE allowing its claims and accordingly, the above
 disallowances have not been recognised in the financial statements.
 
 (d) During the year ATE in its order dated 15th February, 2011, has
 upheld amongst others the Company claim towards entitlement of carrying
 cost in respect of truing-up done by MERC for financial years 2004-05
 and 2005-06. Accordingly the Company has booked an amount of Rs. 86.00
 crores as its entitlement of carrying cost during the current year.
 
 9.  In the matter of claims raised by the Company on R-Infra, towards
 (i) the difference in the energy charges for the period March 2001 to
 May 2004 and (ii) for minimum off-take charges of energy for the period
 1998 to 2000, MERC has issued an Order dated 12th December, 2007 in
 favour of the Company. The total amount payable by R-Infra including
 interest is estimated to be Rs. 323.87 crores as on 31st December, 2007.
 ATE in its order dated 12th May, 2008 on appeal by R-Infra, has
 directed R-Infra to pay for the difference in the energy charges
 amounting to Rs. 34.98 crores for the period March 2001 to May 2004. In
 respect of the minimum off-take charges of energy for the period 1998
 to 2000 claimed by the Company from R-Infra, ATE has directed MERC that
 the issue be examined afresh and after the decision of the Supreme
 Court in the Appeals relating to the distribution licence and rebates
 given by R-Infra. The Company and R-Infra had filed appeals in the
 Supreme Court. The Supreme Court, vide its Order dated 14th December,
 2009, has granted stay against ATE Order and has directed R-Infra to
 deposit with the Supreme Court, a sum of Rs. 25.00 crores and furnish
 Bank Guarantee of Rs. 9.98 crores. The Company had withdrawn the above
 mentioned sum subject to an undertaking to refund the amount with
 interest, in the event the Appeal is decided against the Company. On
 grounds of prudence, the Company has not recognised any income arising
 from the above matters.
 
 10.  Other Advances include advance towards equity, paid to Coastal
 Gujarat Power Limited Rs. 342.00 crores (31st March, 2010 - Rs. 52.00
 crores) and Maithon Power Limited Rs. 74.00 crores (31st March, 2010 - Rs.
 55.50 crores).
 
 11.  Employee Benefits:
 
 (a) In an earlier year the Company had adopted Accounting Standard
 (AS-15) (Revised 2005) - ''Employee Benefits''. This had resulted in a
 transitional liability (net) of Rs. 61.70 crores as at 1st April, 2007.
 In accordance with the transitional provisions of the Accounting
 Standard, the Company had decided to charge the transitional liability
 as an expense over a period of 5 years and accordingly Rs. 22.40 crores
 (31st March, 2010 – Rs. 12.34 crores) has been recognised as an expense
 for the year under item 1 of Schedule 2 and balance amount of Rs. 2.28
 crores (31st March, 2010 – Rs. 24.68 crores) is the unrecognised
 transitional liability as at 31st March, 2011.
 
 (b) The Company makes contribution towards provident fund and
 superannuation fund to a defined contribution retirement benefit plan
 for qualifying employees. The provident fund is administered by the
 Trustees of Tata Power Consolidated Provident Fund and the
 Superannuation Fund is administered by the Trustees of Tata Power
 Superannuation Fund. Under the Schemes, the Company is required to
 contribute a specified percentage of salary to the retirement benefit
 schemes to fund the benefit.
 
 The Rules of the Company''s Provident Fund administered by a Trust
 require that if the Board of Trustees are unable to pay interest at the
 rate declared by the Central Government under para 60 of the Employees''
 Provident Fund Scheme, 1952, then the shortfall shall be made good by
 the Company. Having regard to the assets of the Fund and the return on
 the investments, the Company does not expect any shortfall in the
 foreseeable future.
 
 On account of Defined Contribution Plans, a sum of Rs. 29.69 crores
 (Previous Year – Rs. 22.09 crores) has been charged to the Profit and
 Loss Account.
 
 (c) The Company operates the following unfunded defined benefit plans:
 
 (i) Post Retirement Gratuity
 
 (ii) Ex-Gratia Death Benefits
 
 (iii) Retirement Gifts
 
 (iv) Post Retirement Medical Benefits and
 
 (v) Pension
 
 (d) The actuarial valuation of the present value of the defined benefit
 obligation has been carried out as at 31st March, 2011.  The following
 tables set out the amounts recognised in the financial statements as at
 31st March, 2011 for the above mentioned defined benefit plans:
 
 12.  (a) Total number of electricity units sold during the year as
 certified by Management - 16,060 MUs (31st March, 2010 - 15,574 MUs).
 
 (b) Total number of electricity units purchased during the year as
 certified by Management - 1,510 MUs (31st March, 2010 - 292 MUs).
 
 13.  In respect of the contracts pertaining to the Transmission EPC,
 Strategic Electronics Business and Project Management Services,
 disclosures required as per AS-7 (Revised) are as follows:
 
 (a) Contract revenue recognised as revenue during the year Rs. 163.26
 crores (31st March, 2010 - Rs. 141.94 crores).
 
 (b) In respect of contracts in progress -
 
 (i) The aggregate amount of costs incurred and recognised profits upto
 31st March, 2011 - Rs. 159.94 crores (31st March, 2010 - Rs. 157.41
 crores).
 
 (ii) Advances and progress payments received as at 31st March, 2011 - Rs.
 244.24 crores (31st March, 2010 - Rs. 19.04 crores).
 
 (iii) Retention money included as at 31st March, 2011 in Sundry Debtors
 -Rs. 8.39 crores (31st March, 2010 - Rs. 6.58 crores).
 
 (c) (i) Gross amount due to customers for contract work as a liability
 as at 31st March, 2011 - Rs. 181.49 crores (31st March, 2010 - Rs. Nil ).
 
 (ii) Gross amount due from customers for contract work as an asset as
 at 31st March, 2011 - Rs. 66.63 crores (31st March, 2010 - Rs. Nil).
 
 (b) Managerial Remuneration shown above includes Rs. 1.00 crore (31st
 March, 2010 – Rs. 0.21 crore) being short provision for commission
 relating to the previous year.
 
 (c) The above figures do not include charge for Gratuity, leave
 encashment and other long term benefits, as separate figures are not
 available.
 
 (d) The Company has paid during the year monthly payments aggregating
 to Rs. 0.95 crore (31st March, 2010 – Rs. 0.83 crore) under the post
 retirement scheme to former Managing/Executive Directors.
 
 14. Miscellaneous Expenses include donations aggregating to Rs. Nil (31st
 March, 2010 – Rs. 1.00 crore) to Electoral Trust whose main object is to
 create a transparent, non-discriminatory and non-discretionary vehicle
 which would enable making of contributions to political parties in a
 well regulated, efficient and objective manner. The Trust currently
 provides only for distribution of funds for the Lok Sabha Parliamentary
 Election.
 
 15.  Disclosure as required by Accounting Standard 18 (AS-18) Related
 Party Disclosures are as follows: Names of the related parties and
 description of relationship:
 
 (a) Related parties where control exists: Subsidiaries
 
 Af-Taab Investment Co. Ltd. (AIL)
 
 Chemical Terminal Trombay Ltd. (CTTL)
 
 Tata Power Trading Co. Ltd. (TPTCL)
 
 Powerlinks Transmission Ltd. (PTL)
 
 NELCO Ltd. (Nelco)
 
 Maithon Power Ltd. (MPL)
 
 Industrial Energy Ltd. (IEL)
 
 North Delhi Power Ltd. (NDPL)
 
 Coastal Gujarat Power Ltd. (CGPL)
 
 Veltina Holdings Ltd. (VHL)
 
 Bhira Investments Ltd. (BIL)
 
 Bhivpuri Investments Ltd. (BHIL)
 
 Khopoli Investments Ltd. (KIL)
 
 Trust Energy Resources Pte. Ltd. (TERL)
 
 Energy Eastern Pte. Ltd. ** (EEL)
 
 Industrial Power Utility Ltd. (IPUL)
 
 Tatanet Services Ltd.** (TNSL)
 
 Industrial Power Infrastructure Ltd. (IPIL)
 
 Vantech Investments Ltd. ** (VIL)
 
 PT Itamaraya Tbk. ** (ITMA)
 
 Tata Power Green Energy Private Ltd. ** (TPGEPL)
 
 (from 5th January, 2011)
 
 (b) Other related parties (where transactions have taken place during
 the year): (i) Associates
 
 Panatone Finvest Ltd. (PFL) 
 
 Tata Ceramics Ltd. (TCL) 
 
 Tata Projects Ltd.  (TPL) 
 
 Yashmun Engineers Ltd. (YEL) 
 
 Rujuvalika Investments Ltd. (RUIL)
 
 (ii) Joint Ventures
 
 Tubed Coal Mines Ltd. (TCML)
 
 Mandakini Coal Company Ltd. (MCCL)
 
 Tata BP Solar India Ltd. (TBSIL)
 
 Dagachhu Hydro Power Corporation Ltd. (DHPCL)
 
 OTP Geothermal Pte. Ltd. ** (OTPGL) (from 19th April, 2010)
 
 (iii) Promoters holding together with its Subsidiary is more than 20%
 
 Tata Sons Ltd.
 
 (c) Key Management Personnel
 
 Prasad R. Menon (upto 31st January, 2011)
 
 Anil Sardana (from 1st February, 2011)
 
 S. Ramakrishnan
 
 S. Padmanabhan
 
 Banmali Agrawala
 
 16.  (i) Derivative Instruments:
 
 The Company has entered into forward contracts, which are not intended
 for trading or speculative purposes, to establish the amount of
 reporting currency required or available at the settlement date of
 certain short term borrowings.
 
 (b) Secondary Segment Information:
 
 The export turnover of the Company being Nil (31st March, 2010 – 0.02%)
 of the total turnover, there are no reportable geographical segments.
 
 17.  Previous year''s figures have been regrouped, wherever necessary,
 to conform to this year''s classification. Figures are rounded off to
 nearest lakh. Figures below Rs. 50,000 are denoted by ''*''.