Investors

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31^ST MARCH 2013

(/Lakh)

Sl. No.	Particulars		Standalone					Consolidated
			Quarter ended 31.03.2013 (Unaudited)	Quarter ended 31.12.2012 (Unaudited)	Quarter ended 31.03.2012 (Unaudited)	Year ended 31.03.2013 (Audited)	Year ended 31.03.2012 (Audited)	Year ended 31.03.2013 (Audited)	Year ended 31.03.2012 (Audited)
1	2		3	4	5	6	7	8	9
1	Income from operations
	(a)	Net sales (net of electricity duty/excise duty)	1646184	1577491	1626356	6431638	6114489	6795289	6495832
	(b)	Other operating income	88725	3265	9795	135755	90734	142393	93493
	Total income from operations (net)		1734909	1580756	1636151	6567393	6205223	6937682	6589325
2	Expenses
	(a)	Fuel cost	1038969	1009818	1044295	4101825	4163546	4282777	4330266
	(b)	Employee benefits expense	98136	69164	90756	336012	310171	355138	326096
	(c)	Depreciation and amortisation expense	102126	82876	73626	339676	279170	382322	310709
	(d)	Other expenses	118434	98987	81154	418150	327521	481522	389979
	Total expenses		1357665	1260845	1289831	5195663	5080408	5501759	5357050
3	Profit from operations before other income, finance costs and exceptional items (1-2)		377244	319911	346320	1371730	1124815	1435923	1232275
4	Other income		88410	72199	68120	310158	278965	316397	294923
5	Profit from ordinary activities before finance costs and exceptional items (3+4)		465654	392110	414440	1681888	1403780	1752320	1527198
6	Finance costs		59117	53038	48700	192436	171164	248054	213472
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)		406537	339072	365740	1489452	1232616	1504266	1313726
8	Exceptional items		168411	-	-	168411	-	156829	-
9	Profit from ordinary activities before tax (7+ 8)		574948	339072	365740	1657863	1232616	1661095	1313726
10	Tax expense:
	(a)	Current tax	126205	72520	93233	368084	306848	370850	322987
	(b)	Deferred tax	10582	6876	13163	27840	3395	31623	9273
	Total tax expense (a+b)		136787	79396	106396	395924	310243	402473	332260
11	Net profit from ordinary activities after tax (9-10)		438161	259676	259344	1261939	922373	1258622	981466
12	Extraordinary items (net of tax expense)		-	-	-	-	-	-	-
13	Net profit for the period (11-12)		438161	259676	259344	1261939	922373	1258622	981466
14	Share of profit / (loss) of associates		-	-	-	-	-	-	-
15	Minority interest		-	-	-	-	-	(456)	187
16	Net profit after taxes, minority interest and share of profit of associates (13+14-15)		438161	259676	259344	1261939	922373	1259078	981279
17	Paid-up equity share capital (Face value of share  10/- each)		824546	824546	824546	824546	824546	824546	824546
18	Paid-up debt capital					5814630	5027937
19	Reserves excluding revaluation reserve as per balance sheet					7214205	6504571	7299549	6603035
20	Debenture redemption reserve					253533	238904
21(i)	Earnings per share (before extraordinary items) - (of 10/- each)(not annualised):
	(a)	Basic	5.31	3.15	3.15	15.30	11.19	15.27	11.90
	(b)	Diluted	5.31	3.15	3.15	15.30	11.19	15.27	11.90
21(ii)	Earnings per share (after extraordinary items) - (of 10/- each) (not annualised):
	(a)	Basic	5.31	3.15	3.15	15.30	11.19	15.27	11.90
	(b)	Diluted	5.31	3.15	3.15	15.30	11.19	15.27	11.90
22	Debt equity ratio					0.72	0.69
23	Debt service coverage ratio (DSCR)					3.17	3.21
24	Interest service coverage ratio (ISCR)					10.39	9.81

See accompanying notes to the financial results.

Part II - Select Information

STATEMENT OF ASSETS AND LIABILITIES

(/Lakh)

AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31^ST MARCH 2013

(/Lakh)

The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

Notes:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in its meeting held on 9^th May 2013 and approved by the Board of Directors in the meeting held on 10^th May 2013.

2. The Subsidiaries and Joint Venture Companies considered in the Consolidated Financial Results are as follows.

3. a) The Central Electricity Regulatory Commission (CERC) notified the Tariff Regulations, 2009 in January 2009, and First, Second and Third Amendments thereto in May 2011, June 2011 and December 2012 respectively (Regulations, 2009). In line with the Regulations, 2009, the CERC has issued provisional/final tariff orders w.e.f. 1^stApril 2009 for all the stations except for Talcher Thermal Power Station (TTPS). Beneficiaries are billed in accordance with the said provisional/final tariff orders except for three stations where it is done on provisional basis. The amount billed for the year ended 31^st March 2013 on this basis is  61,79,468 lakh (previous year  59,96,557 lakh).

b) In respect of stations for which the CERC has issued final tariff orders under the Regulations, 2009, and Renewable Energy Regulations, 2009, sales have been recognised at  54,58,881 lakh for the year ended 31^stMarch 2013 (previous year  55,53,741 lakh) after truing up capital expenditure to arrive at the capacity charges. For other stations, pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at  8,05,966 lakh for the year ended 31^st March 2013 (previous year  5,14,538 lakh) on the basis of principles enunciated in the said Regulations, 2009 after truing up capital expenditure to arrive at the capacity charges.

c) Sales include  1,24,190 lakh for the year ended 31^st March 2013 (previous year  54,778 lakh) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) The Company aggrieved over many of the issues as considered by the CERC in the tariff orders for its stations for the period 2004-09 had filed appeals with the APTEL. The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per directions and methodology given. Some of the issues decided in favour of the Company by the APTEL were challenged by CERC in the Hon'ble Supreme Court of India. Subsequently, CERC has issued revised tariff orders for all the stations except one for the period 2004-09, considering the judgment of APTEL subject to disposal of appeals pending before the Hon'ble Supreme Court of India. Consequently, the impact of the aforesaid issues amounting to (-)  4,595 lakh has been recognised as sales for the year ended 31^st March 2013 (previous year (-)  4,916 lakh) with corresponding adjustment in 'Provision for tariff adjustment'.

e) Sales include  24,604 lakh for the year ended 31^st March 2013 (previous year (-)  26,614 lakh) on account of income tax recoverable from the beneficiaries as per Regulations, 2004. Sales also include  5,316 lakh for the year ended 31^st March 2013 (previous year  3,777 lakh) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2009.

4. Provision for current tax for the year includes tax related to earlier years amounting to (-)  15,885 lakh (previous year  15,484 lakh).

5. During the year, one unit of 500 MW at Farakka w.e.f 4^th April 2012, one unit of 660 MW at Sipat w.e.f. 25^th May 2012, one unit of 660 MW at Sipat w.e.f. 1^st August 2012, one unit of 500 MW at Simhadri w.e.f 30^th September 2012, one unit of 500 MW at Rihand w.e.f 19^th November 2012, one unit of 500 MW at Vindhyachal w.e.f 1^st March 2013, one unit of 500 MW at Mauda w.e.f 13^th March 2013 have been declared commercial. Further, 5 MW Solar PV Power Station at Dadri w.e.f 30^th March 2013 and 5 MW Solar PV Power Station at Andaman & Nicobar Islands w.e.f. 31^st March 2013 have also been declared commercial.

6. Vide gazette notification F No.22021/1/2008-CRC/II dated 30.12.2011 issued by Ministry of Coal (MoC), grading and pricing of non-coking coal was migrated from Useful Heat Value (UHV) to Gross Calorific Value (GCV) based system w.e.f. 1^st January 2012. The Coal Supply Agreements (CSAs) entered into by the Company were required to be amended to incorporate acceptable procedures for sample collection, preparation, testing and analysis, to facilitate such migration, which are still pending. The Company's Board of Directors approved payments to the coal companies based on the GCV based pricing system, and directed to frame modalities for implementation of GCV based grading system. Accordingly, modalities were framed to effect joint sampling and testing of coal at mine end/station end and future payments to coal companies. The above modalities were communicated to the coal companies w.e.f. October/ November 2012, thereafter the Company released payments on the basis of GCV measured at station end following the implementation of the said modalities since variation in the GCV of coal supplied and received at power stations was noticed. The Company regularly informed coal companies about this variation which has not been accepted by them. The issue has been taken up with the coal companies directly and through the MoP and MoC, GOI for resolution. Pending resolution of the issue, difference between the amount billed by the coal companies and the amount admitted by the company amounting to  2,53,110 lakh (previous year Nil) has been disclosed as contingent liability with corresponding possible reimbursements from the beneficiaries.

7. Government of India, Ministry of Power vide its letters F.No.6/1/2007-Fin.(Vol.VIII) dated 5^th February 2013 and 29^th March 2013 directed Government of National Capital Territory of Delhi (GNCTD) to release payment towards settlement of dues of erstwhile Delhi Electric Supply Undertaking (DESU) amounting to  83,597 lakh as principal and  1,68,411 lakh as interest to the company. Consequently, provision for doubtful debt of  83,597 lakh has been written back and interest of  1,68,411 lakh has been recognised as an exceptional item in the Statement of Profit and Loss during the year.

8. Ministry of Corporate Affairs, Government of India through Circular no. 25/2012 dated 9^th August 2012 has clarified that para 6 of Accounting Standard (AS) 11 and para 4 (e) of AS 16 shall not apply to a Company which is applying para 46-A of AS 11. Accordingly, Company has modifed the related accounting policies. Consequently, exchange differences arising on settlement/translation of foreign currency loans to the extent regarded as an adjustment to interest costs as per para 4 (e) of AS 16 and hitherto charged to Statement of Profit and Loss, have now been adjusted in the cost of related assets. As a result, profit for the year ended 31^st March 2013 is higher by  1,480 lakh, fixed assets are higher by  17,356 lakh and Deferred Income from Foreign Currency Fluctuation is higher by  15,876 lakh.

9. During the year, the Company reviewed its policy for accounting of carpet coal which was hitherto charged to the Statement of Profit and Loss and capitalised the cost of carpet coal with the coal handling plant. Consequently, tangible assets and profit for the year are higher by  2,036 lakh.

10. Claims recoverables include  89,472 lakh (previous year  76,612 lakh) towards the cost incurred upto 31^stMarch 2013 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power, GOI. This includes 10,965 lakhs (previous year Nil) in respect of two arbitration awards challenged / being challenged by the Company before High Court. In the event the High Court grants relief to the Company, the amount will be adjusted against Short Term Provisions - Others. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of various packages of contractors/vendors for this project will be compensated in full by the GOI. Hence no provision is considered necessary.

11. During the quarter, Government of India has divested 9.50% of the paid up equity capital of the Company by way of offer for sale through stock exchange mechanism as provided by SEBI circular CIR/MRD/DP/18/2012 dated 18^th July 2012 and circular no. CIR/MRD/DP/04/2013 dated 25^th January 2013.

12. During the quarter, the Company has paid an interim dividend of  3.75 per equity share (face value  10/-each) for the year 2012-13. The Board of Directors has recommended final dividend of  2.00 per share (including special dividend of  1.25) (face value  10/- each). The total dividend (including interim dividend) for the financial year 2012-13 is  4.50 per share (face value  10/-each) and special dividend of  1.25 per share (face value 10/-each).

13. The audited accounts are subject to review by Comptroller and Auditor General of India under Section 619(4) of the Companies Act, 1956.

14. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transferred to expenditure during construction).

15. Previous periods/years figures have been regrouped/rearranged wherever necessary.

16. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

For and on behalf of Board of Directors

Place: New Delhi
Date: 10^th May 2013

sd/-
(A.K.SINGHAL)
DIRECTOR (FINANCE)