Investors

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31^ST MARCH 2015

( in Lakhs)

Sl. No.	Particulars		Standalone					Consolidated
			Quarter ended 31.03.2015 (Unaudited)	Quarter ended 31.12.2014 (Unaudited)	Quarter ended 31.03.2014 (Unaudited)	Year ended 31.03.2015 (Audited)	Year ended 31.03.2014 (Audited)	Year ended 31.03.2015 (Audited)	Year ended 31.03.2014 (Audited)
1	2		3	4	5	6	7	8	9
1	Income from operations
	(a)	Net sales (net of electricity /excise duty)	1922994	1873898	2093808	7263775	7160263	7994397	7847870
	(b)	Other operating income	8464	11911	10075	60830	41630	67807	47193
	Total income from operations (net)		1931458	1885809	2103883	7324605	7201893	8062204	7895063
2	Expenses
	(a)	Fuel cost	1252110	1211963	1443411	4884519	4582971	5146112	4779026
	(b)	Employee benefits expense	93200	90136	88156	366978	382478	388969	403863
	(c)	Depreciation and amortisation expense	139119	125341	120764	491165	414219	556461	476999
	(d)	Other expenses (refer note 11)	121239	117738	116752	464548	455669	775895	742304
	Total expenses		1605668	1545178	1769083	6207210	5835337	6867437	6402192
3	Profit from operations before other income, finance costs and exceptional items (1-2)		325790	340631	334800	1117395	1366556	1194767	1492871
4	Other income		57179	48128	58595	211632	264568	207891	276012
5	Profit from ordinary activities before finance costs and exceptional items (3+4)		382969	388759	393395	1329027	1631124	1402658	1768883
6	Finance costs		70749	70081	56769	274362	240659	357037	320307
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)		312220	318678	336626	1054665	1390465	1045621	1448576
8	Exceptional items		-	-	-	-	-	-	-
9	Profit from ordinary activities before tax (7+ 8)		312220	318678	336626	1054665	1390465	1045621	1448576
10	Tax expense:
	(a)	Current tax (refer note 4)	24885	11275	33295	32644	279360	43463	292377
	(b)	Deferred tax	63289	6568	(6023)	88875	13631	102387	15859
	(c)	Less: Deferred asset for deferred tax liability (refer note 12)	70357	6565	-	95940	-	99466	-
	Total tax expense (a+b-c)		17817	11278	27272	25579	292991	46384	308236
11	Net profit from ordinary activities after tax (9-10)		294403	307400	309354	1029086	1097474	999237	1140340
12	Extraordinary items (net of tax expense)		-	-	-	-	-	-	-
13	Net profit for the period (11-12)		294403	307400	309354	1029086	1097474	999237	1140340
14	Share of profit / (loss) of associates		-	-	-	-	-	-	-
15	Minority interest							603	(21)
16	Net profit after taxes, minority interest and share of profit of associates (13+14-15)		294403	307400	309354	1029086	1097474	998634	1140361
17	Paid-up equity share capital (Face value of share  10/- each)		824546	824546	824546	824546	824546	824546	824546
18	Paid-up debt capital					8599534	6717022	10161185	8102134
19	Reserves excluding revaluation reserve as per balance sheet					7341189	7756986	7384852	7908426
20	Debenture redemption reserve					362460	276491	362460	276491
21(i)	Earnings per share (before extraordinary items) - (of  10/- each)(not annualised)(in  ):
	(a)	Basic	3.57	3.73	3.75	12.48	13.31	12.11	13.83
	(b)	Diluted	3.57	3.73	3.75	12.48	13.31	12.11	13.83
21(ii)	Earnings per share (after extraordinary items) - (of 10/- each) (not annualised)(in  ):
	(a)	Basic	3.57	3.73	3.75	12.48	13.31	12.11	13.83
	(b)	Diluted	3.57	3.73	3.75	12.48	13.31	12.11	13.83
22	Debt equity ratio					1.05	0.78	1.24	0.93
23	Debt service coverage ratio (DSCR)					2.44	2.77	2.27	2.68
24	Interest service coverage ratio (ISCR)					6.72	8.62	5.54	7.09

See accompanying notes to the financial results.

Part II - Select Information

STATEMENT OF ASSETS AND LIABILITIES

( in Lakhs)

AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31^ST MARCH 2015

( in Lakhs)

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 their meeting held on 29^th May 2015 and approved by the Board of Directors in the meeting held on the same day.

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

3. a) The CERC notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). Pending issue of provisional/final tariff orders w.e.f. 1st April 2014 for all the stations, beneficiaries are billed in accordance with the tariff approved and applicable as on 31st March 2014 as provided in the Regulations 2014. The amount provisionally billed for the year ended 31st March 2015 is   73,70,399 lakh (previous year  68,70,403 lakh).

b)The Company has filed a petition before the Hon'ble High Court of Delhi contesting certain provisions of the Regulations, 2014. Pending issue of provisional/final tariff orders under Regulations, 2014 by the CERC and disposal of the petition, sales have been provisionally recognised at   73,13,381 lakh for the year ended 31^stMarch 2015 (previous year  69,59,612 lakh) on the basis of said Regulations.

c) Sales for the year ended 31st March 2015 include   67,962 lakh (previous year 2,08,682 lakh) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) Sales for the year ended 31st March 2015 include (-) 1,39,942 lakh (previous year (-) 26,999 lakh) on account of income-tax payable to the beneficiaries as per Regulations, 2004. Sales also include 11,396 lakh for the year ended 31st March 2015 (previous year 7,702 lakh) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.

4.Provision for current tax for the year includes tax related to earlier years amounting to (-) 1,95,253 lakh (previous year (-) 43,696 lakh).

5. During the year, one thermal unit of 660 MW at Barh w.e.f. 15th November 2014, solar PV power capacity of 20 MW at Rajgarh w.e.f. 30th April 2014 and solar PV power station of 15 MW at Singrauli w.e.f 31st December 2014 have been declared commercial.

6. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project was challenged before the National Green Tribunal (NGT). The NGT disposed the appeal, inter alia, directing that the order of clearance be remanded to the MOEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgment of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. Aggregate cost incurred on the project upto 31st March 2015 is 8,73,244 lakh (previous year 4,45,573 lakh). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7th May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost of 15,457 lakh (previous year 14,546 lakh) incurred on the project up to 31st March 2015 is included in non-current assets. Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

8. Claims recoverable as at 31st March 2015 include 46,628 lakh (previous year 42,600 lakh) recoverable from Government of India (GOI) towards the cost incurred 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. 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 contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

9.In accordance with the principles approved by the Board of Directors of the Company, the dispute with coal suppliers on account of GCV has been settled. Accordingly, against the total disputed billed amount of 2,57,874 lakh (previous year 4,10,287 lakh) as at 31st March 2014, during the year the Company has paid 1,77,351 lakh and provided 2,548 lakh and remaining amount of 77,975 lakh is settled. Sales corresponding to energy charges recoverable for the amounts paid/provided as above have been recognized on settlement.

10. The Company has revised the accounting policy for depreciation of certain assets in alignment with Schedule-II to the Companies Act, 2013 which has become applicable from 1st April 2014. Consequently, profit for the year ended 31st March 2015 is lower by 1,497 lakh and fixed assets as at 31st March 2015 are lower by 2,044 lakh. Further, an amount of 358 lakh (net of deferred tax of   189 lakh) has been recognized in the opening balance of the retained earnings where the remaining useful life of such assets is Nil as at 1st April 2014 in line with the provisions of Schedule-II to the Companies Act, 2013.

11. In line with the accounting policy on advance against depreciation, excess of depreciation charged in the books over the depreciation recovered in tariff, amounting to 20,832 lakh upto 31st March 2014 has been recognised as prior period sales and netted from 'Other expenses'.

12.Regulations, 2014 provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. Accordingly, deferred tax provided during the year ended 31st March 2015 on the generation income is accounted as 'Deferred asset for deferred tax liability'. Deferred asset for deferred tax liability for the year will be reversed in future years when the related deferred tax liability forms a part of current tax.

13. During the quarter, the Company out of free reserves issued one 8.49% secured non-cumulative non-convertible redeemable taxable fully paid-up debenture of 12.50 by way of bonus for each fully paid-up equity share of par value 10/-. The debenture amount of 10,30,683 lakh and dividend distribution tax thereon of 2,06,076 lakh has been debited to general reserve.

14. During the quarter, the Company has paid an interim dividend of 0.75 per equity share (par value 10/-each) for the year 2014-15. The Board of Directors has recommended final dividend of 1.75 per equity share (par value 10/- each). The total dividend (including interim dividend) for the financial year 2014-15 is 2.50 per equity share (par value 10/-each).

15. The audited accounts are subject to review by Comptroller and Auditor General of India under Section 143(6)&(7) of the Companies Act, 2013.

16. 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).

17. Previous periods/year figures have been regrouped/rearranged wherever necessary.

18. 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: 29^th May 2015

sd/-
(K. BISWAL)
DIRECTOR (FINANCE)