1. Previous quarter /Year figures have been recast wherever necessary.

2. Ministry of Power, Govt. of India has awarded Gold Shield for meritotious performance of Baspa II H.E. Plant for 2007-08.

3. The Company has presently one segment i.e. Generation of Hydro-Power, hence, separate segment reporting is not applicable.

4. The Energy Generation during the year was 1131.46 Million Units as compared to 1121.26 Million Units in the previous year.

5. The Himachal Pradesh Electricity Regulatory Commission (HPERC) has passed the Multi Year Tariff (MYT) Order dated March 30, 2009 for FY 09, 10 and 11 and has also revised the Tariff FY 04 to FY08 based on actuals for the period. Sales / Income from Operations for FY 09 has been recognized in the books of accounts as per the said MYT Order and the net effect of this revision has been shown under item 12(b) and 12(c) respectively. For the other items of revision, the Company has filed Review Application before Honīble HPERC.

6. Baspa II 300 MW Hydro Electric Plant has been recognised for generation of Verified Emission Reductions (VERs) under the Voluntary Carbon Standards, 2007 (VCS, 2007) and has sold 3.15 Lacs VERs.

7. Other operating income includes interest of Rs 1760 Lacs received on arrears from HPSEB for the year.

8. The Ministry of Corporate Affairs. Govt. of India in exercise of the powers conferred under Section 205 (2)( c) of the Companies Act 1956 has approved rate of depreciation @ 2.71% p.a, (in place of rates prescribed in Schedule XIV to the Companies Act, 1956) based on useful life of Hydro Electric Plant from the date of commencement of generation. Accordingly the depreciation has been provided @ 2.71% on hydro electric plant.

9. The profit of the Company is exempt U/S 80-IA of the Income Tax Act, 1961 for the initial period of 10 years. However, in terms of Section 115 JB read with other applicable provisions of the Income Tax Act 1961, the company is liable to pay Minimum Alternate Tax (MAT) on its book profits which is allowed to be carried forward for 7 years for adjustment against normal tax. No provision for deferred tax has been made as no deferred tax liability arises during the tax holiday period as per the Accounting Standard Interpretation (AS 13) issued by ICAI.

10. Provision for tax for the quarter/year ended March 31, 2009 has been computed after giving effect to the extraordinary items as per MYT order.

11. Pursuant to the Notification dated March 31, 2009 issued by Ministry of Corporate Affairs, Govt. of India, the Company has exercised the option available under the newly Inserted Paragraph 46 to the Accounting Standard AS-11 The effect of changes in Foreign Exchange Rates to add or deduct the FE Fluctuation to capital cost of the Assets. Accordingly, out of Foreign Exchange Fluctuations amounting to Rs 26.08 Crs., a sum of Rs 16.07 Crs. has been added to capital cost after adjusting Rs 12.01 Crs. against the gain credited to Profit and Loss account in FY 08.

12. The water availability in the first half of the financial year is higher as compared to the second half. As such, the revenues from the power generation in the first two quarters is higher than the second two quarters of the year.

13. The Board has, on May 07, 2009, recommended payment of final dividend of Rs 0.75 per share (7.5%) for the financial year ended March 31, 2009. In addition to interim dividend of Rs 0.75 per share (7.5%) already paid, thereby making total dividend of Rs 1.50 per share (15%) for the year FY 09.

14. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on the May 07, 2009.

Manoj Gaur
Chairman