1. The Corporations main business is to provide finance for power sector. As such, there are no other separate reportable segments as per the Accounting Standard on Segment Reporting (AS 17), issued by the Institute of Chartered Accountants of India.

2. In respect of the Audited Accounts for the year ended March 31, 2008, the Statutory Auditors had reported that

(i) "As regards the liability of Rs 106675 lac, shown as "Interest Subsidy Fund from GOI" in the Balance Sheet, received under Accelerated Generation and Supply Programme (AG&SP) from Ministry of Power, Government of India, the corporation estimated the net excess amount of Rs 25347 lac and Rs 5249 lac as at March 31, 2008 for IX and X plans respectively. This net excess amount is worked out on overall basis and not on individual basis and may vary due to change in assumptions if any, during the projected period such as changes in moratorium period, repayment period, loan restructuring, prepayment, interest rate reset etc. Hence the impact of this excess, if any, could not be ascertained as such not commented upon".

(ii) Some of the balances shown under loans, advances and other debits/credits in so far as these have since not been confirmed, realized, discharged or adjusted are subject to reconciliation.

Management replies to the above are as follows:

(i) As mentioned above, the corporation is of the view that due to various assumptions involved, the actual/exact excess due to difference between the indicative rate, period and assumptions considered at the time of drawal and at the time actual disbursement can be ascertained only after the end of the respective schemes.

(ii) The company had received confirmations from debtors and creditors in most of the cases. No material discrepancy has been noticed in the balances.

3. In respect of one project which is under implementation and having an outstanding balance of Rs 29798.28 lac, the asset has been treated as standard asset as per the RBI letter dtd. November 11, 2008 / Prudential norms of the Corporation. The Corporation recognizes the income on this loan on receipt basis.

4. The Corporation paid an Interim dividend of Rs 2.65 per Equity share of Rs 10 each amounting to Rs 30415.85 lac on February 24, 2009.

5. The Corporation had transferred its consultancy services business to its subsidiary w.e.f. April 25, 2008. Due to this, there´s no "Other Operating Income" for the current quarter and for the year ended March 31, 2009.

6. Figures for the previous year have been regrouped wherever necessary, in order to make them comparable.

7. The above financial results were reviewed and recommended by the Audit Committee of Directors and approved by the Board of Directors in their respective meetings held on April 17, 2009.

Satnam Singh
Chairman & Managing Director