POWER GRID 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 DECEMBER, 2004
(Rs. in crores)
PARTICULARS 3 Months Corresponding 9 Months Corresponding Accounting  Budget
  ended 3 Months in ended 9 Months in Year ended Figures
  31/12/04 the Previous  31/12/04 the Previous 31/03/04 for
  (Provisional) Year ended (Provisional) Year ended (Audited) First
    31/12/03   31/12/03   Quarter
    (Provisional)   (Provisional)    
   
1. Transmission Tariff 564.18 522.37 1648.19 1554.11 2190.61
           
2.Other Income          
    a) RLDC Expenditure Reimbursement 6.91 6.97 21.26 20.93 27.94
    b) Surcharge 3.37 5.24 4.41 5.24 6.98
    c) Lease Income - State Sector ULDC 12.50 14.65 37.50 43.94 53.67
    d) Interest on Securitisation Bonds 39.66 37.12 118.97 239.97 265.07
    e) Others 44.79 36.18 105.72 183.19 261.15
Total Other Income 107.23 100.16 287.86 493.27 614.81 5250
           
Total Income 671.41 622.53 1936.05 2047.38 2805.42 5250
           
3. Expenditure          
    a) Staff Cost 57.49 54.83 167.39 150.59 220.33 5783
    b) RLDC Expenditure 6.59 6.57 20.69 19.89 29.70
    c) Others 44.95 45.20 137.02 125.21 243.72 4948
    Total Expenditure 109.03 106.60 325.10 295.69 493.75 10731
           
4.  Interest & Finance Charges           23808
    a) Interest & Other Charges 169.38 165.35 531.24 595.67 757.12 23808
    b) Incentive to SEBs under Securitisation scheme 26.64 17.94 62.70 166.68 177.49
    c) Rebate to Customers 11.69 14.65 33.82 43.17 56.35 23808
    Total Interest & Finance Charges 207.71 197.94 627.76 805.52 990.96 23808
           
5. Depreciation 160.19 164.71 472.32 454.69 606.42 13970
           
6. Profit Before Tax 194.48 153.28 510.87 491.48 714.29 -43259
           
7. Provision for Taxation(MAT) 11.00 0.00 31.00 20.48 16.64 1513
           
8. Profit after MAT 183.48 153.28 479.87 471.00 697.65 -44772
           
9. (a) Provision for Deferred Taxes                              -                                  -                                  -                                  -                     - 800
    (After reducing tax  recoverable from SEBs )          
    (b) Provision for Deferred Taxes Written Back                              -                                  -                                  -                                  - 50.55 800
           
10. Profit after Deferred Tax 183.48 153.28 479.87 471.00 748.20 -45572
           
11. (a) Paid up Equity Share Capital  3035.25 3035.25 3035.25 3035.25 3035.25
           
      (b) Paid up Equity Share Capital  3074.06 3074.06 3074.06 3074.06 3074.06
      (including Share Capital deposit)          
           
12. Reserves excluding Revaluation Reserve                              -                                  -                                  -                                  - 5454.23
but  including  Capital  Reserves ( as  per           
Balance Sheet of previous accounting year)          
           
13.(a) Basic EPS(Not Annualised) 60 50 158 155 247
(Rs./Share of Rs 1000 each calculated on          
profit after Deferred Tax)          
           
13.(b) Diluted EPS(Not Annualised) 60 50 156 153 243
(Rs./Share of Rs 1000 each calculated on          
profit after Deferred Tax)          
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. CERC notification for tariff norms effective from 01.04.2001 provide for amended rates of depreciation for the purpose of tariff.  Consequently, the transmission charges for the half year ending 30.09.2002 are lower by Rs.20226 lacs.  However, the rate
 
3.* Results for the corresponding quarter ending 30th September, 2001 and half year ending 30th September, 2001, as published earlier, have been recasted  in view of (1)and (2) above.
(1) CERC has issued notification no. L-7/25(1)/2001-CERC dated 26.03.2001 prescribing the terms and conditions of
      tariff as applicable from 01.04.2001. Keeping in view the stay granted by Honourable High Court of Delhi and Gazettee notification
     dated 24.01.2002 the tariff upto 31.03.2002 has been cosidered based on GOI notification dated 16.12.1997 which has been followed hitherto.
(2) Transmission Incentive amounting to Rs.166 crores upto F.Y. 2000-01 and Rs. 110 cr. For 2001-02 has been considered.
4. The above results have been taken on record  by the Board of Directors in their meeting held on 25.10.2002.
Place: New Delhi.                                For and on behalf of Power Grid Corp. of India Ltd.
Date:  25.10.2002.
Notes :
 
1.The  transmission  income  for  the  period  has  been  accounted  for  on  the  basis  of  regulations  issued  by  CERC  for  the  block  period  2004-09.  The tariff for previous block period (2001-04) in a few cases is subject to revision, impact thereof shall be considered after the final orders are passed by CERC.
 
2. During  the  year  the  company  has  provided  depreciation  at  the  rates  notified  for  the  purpose  of  recovery  of  tariff  by  Central  Electricity  Regulatory  Commission  empowered under  The  Electricity  Act,  2003. The issue of charging depreciation has been referred by CAG to the Ministry of Power (MOP).  The decision of MOP is awaited.  Impact thereof will be considered on receipt of final decision.
3. AS-28  w.r.t. "Impairment of Assets" is applicable w.e.f. 01.04.2004. The company shall consider the effect of impairement of assets as per AS-28 at the end of the current financial year i.e., year ended 31.03.2005.
4. 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.
5. Exchange rate variation on transactions till 31.03.04 on liabilities towards fixed assets is continued to be included in carrying cost of respective fixed assets in accordance with the accounting policy of the company as the same is governed by the provisions of erstwhile AS-11 "Effects of Changes in Foreign Exchange Rates (1994)".  However, effect in accounting of exchange rate variation in terms of provisions of ASI-10 issued on AS-16 "Borrowing Costs" shall be considered at the year end.
6. No effect of change, if any, on treatment of Self Insurance Reserve in pursuance of AS-29 on "Provisions, Contingent Liabilities and Contingent Assets" has been given.
7. Deferred Tax liability in pursuance of AS-22 on "Accounting for Taxes on Income" is not provided as the tax liability is recoverable from the beneficiaries.
8. During the second quarter of the financial year 2003-04 bonds worth Rs. 1717 crore were received under securitisation scheme w.e.f. 01.10.2001 and the interest income with arrears was accounted for.  Other Income in Financial Year 2003-04 includes Rs. 116 crore provision written back towards CERC final order implications.
9. The  above  results  are subject to limited review by statutory auditors of the Company.
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 28.01.2005.
For and on behalf of POWER GRID CORPORATION OF INDIA LTD.
Sd/-
Place :  New Delhi. (R.P.Singh)
Date  :  28.01.2005. Chairman & Managing Director