POWERGRID CORPORATION OF INDIA LTD. (A Govt. of India Enterprise)

B-9, QUTAB INSTITUTIONAL AREA,KATWARIA SARAI,NEW DELHI-110016.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL)

FOR THE THREE MONTHS ENDED 31st MARCH, 2004

(Rs. in lacs)

PARTICULARS

3 Months

Corresponding

12 Months

Accounting

ended

3 Months in

ended

Year ended

31/03/04

the Previous

31/03/04

31/03/03

(Provisional)

Year ended

(Provisional)

(Audited)

31/03/03

(Provisional)

1. Sales/Income from Operations

    a)  Transmission Tariff

59854

53342

215265

195748

    b) Sale of Power

Nil

Nil

Nil

12645

Total

59854

53342

215265

208393

2.Other Income

a) RLDC Expenditure Reimbursement

697

522

2790

2872

b) Surcharge

129

16600

653

19229

c) Lease Income - State Sector ULDC

1006

1829

5400

4888

d) Others

11876

3484

54192

17892

Total Other Income

13708

22435

63035

44881

Total Income

73562

75777

278300

253274

3. Total Expenditure

a) Purchase of Power

Nil

Nil

Nil

12643

b) Staff Cost

5754

4187

20813

17523

c) RLDC Expenditure

810

640

2799

2487

d) Others

3820

5689

16341

29137

Total

10384

10516

39953

61790

4.Interest & Finance charges

   a)  Interest & Other Charges

22198

21018

81765

64719

   b)  Rebate to Customers

5008

1330

25993

5322

27206

22348

107758

70041

5.Depreciation

13995

12161

59464

46259

6.Profit Before Tax

21977

30752

71125

75184

7.Provision for Taxation(MAT)

352

1733

2400

7042

8.Current Profit after MAT

21625

29019

68725

68142

9. (a) Provision for Deferred Taxes

0

334

0

3883

(After reducing tax  recoverable from SEBs )

9. (b) Provision for Deferred Tax W/Back

5300

0

5300

0

10. Profit after deferred Tax

26925

28685

74025

64259

11.(a) Paid up Equity Share Capital

303525

303525

303525

303525

11.(b) Paid up Equity Share Capital

307406

307406

307406

307406

(including Share Capital deposit)

12. Reserves excluding Revaluation Reserve

469337

but including Capital Reserves(as per

Balance Sheet of previous accounting year)

13.(a) Basic EPS(Not Annualised)

89

95

244

212

(Rs./Share of Rs 1000 each calculated on

profit after Deferred Tax)

13.(b) Diluted EPS(Not Annualised)

88

93

241

209

(Rs./Share of Rs 1000 each calculated on

profit after Deferred Tax)

Notes :

1.Pending disposal of appeal filed by the Company against the CERC orders before the Hon'ble Delhi High Court, the transmission income for the period has been accounted for provisionally on the basis of tariff determined as per CERC norms.

2. The Electricity Act, 2003 has replaced the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commission Act, 1998 applicable to the company, with efffect from 10.06.2003.  Under the Electricity Act, 2003 CERC is the appropriate authority for fixation of Tariff.  Transmission Tariff has been accounted for as per CERC norms for the block year 2001-04 notified on 26.03.2001.

3. The depreciation on fixed assets has been charged to profit & loss account at the rates notified by CERC applicable for the purpose of recovery of tariff.  The depreciation charge for the quarter is lower by Rs. 10225 lacs as compared to the rates prescribed in schedule XIV of the Companies Act, 1956 as depreciation rates are not specified by Electricity Act, 2003.

4. Impact of final tariff notification issued by CERC upto the quarter ended 31.03.04 for the period from 2001-02 to 2002-03 amounting to Rs. 17661 lacs has been reduced from the transmission charges.   Consequently, related provision made during the financial year 2002-03 amounting to Rs. 11649 lacs has been written back and included in Other Income.  The impact of pending final tariff notifications to be issued by CERC is not ascertained.

5.   Business of purchase and sale of power has been transferred to Power Trading Corporation of India Ltd. w.e.f. 01.10.2002.

6.  (I) Interest on Bonds issued / to be issued by Reserve Bank of India (RBI) under the Scheme of  one time settlement of dues of State Electricity Boards  (the Scheme) has been exempted from Income Tax vide CBDT notification dated 27th June, 2003.  Deferred tax liability for the financial years 2001-02 and 2002-03 has been recalculated in view of the above exemption.  Consequently, the provision of Rs. 53 crore of deferred tax liability on account of above has been written back resulting in increase in profit after tax.

6.  (II) Impact of this notification has been considered for working out provision for Tax (MAT) and Deferred Tax.

7. Existing accounting policies of allocation of central and regional office expenses between capital and revenue has been changed.  The impact of change in policy is approx. Rs. 15 crore decrease in expenditure and increase in profit. This is done for more rationalised allocation resulting in better presentation of accounts.

8. Power Transmission is principal business activity of the corporation.  The Company has transmission projects located across different states within the country and no geographical segment is distinguishable.  Other segments do not form a reportable segment as per  Accounting Standard -17.

9. The accounting policy of treating the expenditure as Deferred Revenue Expenditure(DRE) of the projects which are ready for use but not commercially commissioned and not charging of depreciation of such projects has been changed in view of AS-26 coming into force w.e.f. 01.04.2003. Henceforth,the expenditure and depreciation of such projects shall be charged to revenue resulting in lower profit by Rs. 415 lacs during the year ending 31.03.2004.

10. The above results have been reviewed by the Audit Committee and have been taken on record by the Board of Directors in its meeting held on 23.04.2004.