MIRA INFORM REPORT

Report Date :

11.11.2008

IDENTIFICATION DETAILS

Name :	RELIANCE INFRASTRUCTURE LIMITED

Formerly Known As :	RELIANCE ENERGY LIMITED

Registered Office :	Reliance Energy Centre, Santacruz (East), Mumbai-400055, Maharashtra.

Country :	India

Financials (as on) :	31.03.2008

Date of Incorporation :	01.10.1929

Com. Reg. No.:	001530

CIN No.: [Company Identification No.]	L99999MH1929PLC001530

TAN No.: [Tax Deduction & Collection Account No.]	MUMR16295G

PAN No.: [Permanent Account No.]	AAACB2273R

Legal Form :	Public Limited Liability Company. The Company Shares Are Listed On Stock Exchange.

Line of Business :	Distribution of Power, Generation of Power, Contracting and Computer Services.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 500000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company, now a part of Reliance Group, country's premier industrial house. Available information indicates high financial responsibility of the company. Trade relations are reported as fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Reliance Energy Centre, Santacruz (East), Mumbai- 400 055, Maharashtra, India
Tel. No.:	91-22-26639999 /30099999
Fax No.:	91-22-26639741 / 30099763
E-Mail :	helpdesk@rel.co.in priti.padte@relianceada.com
Website :	http://www.rel.co.in www.rinfra.com

Corporate Office :	BSES House, Santacruz (East), Mumbai - 400 055, Maharashtra, India
Tel. No.:	91-22-26154284
Fax No.:	91-22-26154291
E-Mail :	info@bses.com
Website :	http://www.bses.com

Power Stations :	Dahanu Power Station BSES Nagar, Dahanu Road - 401602, Thane, Maharashtra, India Goa Power Station Opp. Sancoale Industrial Estate, Zuarinagar- 403 726, Sancoale, Mormugao, Goa, India Samalkot Power Station Industrial Development Area, Peddapuram Mandal, Samalkot- 533 440, Andhra Pradesh, India Wind Farm Near Almangala- 577 558, Chitradurga District, Karnataka, India

DIRECTORS

Name :	Mr. Anil D. Ambani
Designation :	Chairman and Managing Director

Name :	Mr. Satish Seth
Designation :	Executive Vice Chairman

Name :	Mr. J P Chalasani
Designation :	Director (Business Development)

Name :	Mr. S C Gupta
Designation :	Director (Operations)

Name :	Mr. K H Mankad
Designation :	Director (Finance)

Name :	Mr. Gautam Doshi
Designation :	Chairman

Name :	Mr. V R Galkar
Designation :	Director

Name :	Mr. V P Malik PVSM, AVSM (Retired)
Designation :	Director

Name :	Mr. S L Rao
Designation :	Director

Name :	Dr. Leena Srivastava
Designation :	Director

Name :	Mr. Amitabh Jhunjhunwala
Designation :	Director

Name :	Prof. J. Ramachandran
Designation :	Director

Name :	Mr.Lalit Jalan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ramesh Shenoy
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2008

Category Code	Category of Shareholder	No. of Shares	Percentage of Holding
(A)	Shareholding of promoter and promoter group
(1)	Indian
a	Individuals /Hindu undivided family	663378	0.29
b	Central government / state government	-	0.00
c	Bodies corporate	84365268	37.51
d	Financial institutions / banks	-	0.00
e	Any other (specify)	-	0.00

(2)	Foreign
a	Individuals (non-resident individuals/ foreign individuals	-	0.00
b	Bodies corporate	-	0.00
c	Institutions	-	0.00
d	Any other (specify)	-	0.00

(B)	Public Shareholding
(1)	Institutions
a	Mutual Funds / Uti	13905278	6.18
b	Financial Institutions / Banks	921572	0.41
c	Central Government / State Government	81214	0.04
d	Venture Capital Funds	-	0.00
e	Insurance Companies	43137978	19.18
f	Foreign Institutional Investors	38982973	17.33
g	Foreign Venture Capital Investors	-	0.00
h	Any Other (Specify)	-	0.00

(2)	Non – institutions
a	Bodies Corporate	10643305	4.73
b	Individual Shareholders Holding Nominal Share capital Up To Rs. 0.100 Million	28951460	12.87
	Individual Shareholders Holding Nominal Share capital In Excess Of Rs. 0.100 Million	1729054	0.77
c	Any Other (Specify)
1	Trustee	-	0.00
2	NRIS/OCBS	1543049	0.69
3	Pending Confirmation	-	0.00

	Total	230870262	100.00

BUSINESS DETAILS

Line of Business :	Distribution of power, generation of power, Contracting and computer services.

Products :	Distribution of Power Generation of Power Contracting

PRODUCTION STATUS

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Stress Cones	25000	12000	--
Modules	80000	36000	--
Cable head termination	500	500	81
Terminations and Joints	10000	10000	49

GENERAL INFORMATION

No. of Employees :	Around 5539

Bankers :	Canara Bank UCO Bank Union Bank of India Standard Chartered Bank HDFC Bank Limited ICICI Bank Limited ABN Amro Bank N.V State Bank of India HSBC Bank


Banking Relations :	Good

Auditors :
Name :	Haribhakti and Company Chartered Accountants Chaturvedi and Shah Chartered Accountants Price Waterhouse Chartered Accountants

Associates/Subsidiaries :	Reliance Industries Limited BSES Holdings Private Limited Powersurfer Interactive India Limited Utility Powertech Limited ST-BSES Coal Washeries Limited Maithon Power Limited Suryachakra Power Corporation Limited Reliance Life Insurance Company Limited (Subsidiary upto 14^th January 2002) Reliance General Insurance Company Limited (Subsidiary upto 14^th January 2002) Reliance Infocom Limited Reliance Communications Infrastructure Limited Reliance Telecom Limited Reliance Industrial Infrastructure Limited Reliance Europe Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Limited Reliance Salgaoncar Power company Limited Reliance Enterprise Limited Reliance Global Trading Private Limited Unincorporated Oil and Gas Joint Venture Reliance Rubber and chemicals Private Limited Indian Petrochemicals Corporation Limited Reliance Petroinvestments Limited (Subsidiary upto 17^th April, 2002) Vimal Fabrics Limited (formerly – Devti Fabrics Limited) Reliance Ventures Limited Reliance Power Ventures Limited Reliance Petroinvestments Limited Reliance Strategic Investments Limited Reliance LNG Private Limited Reliance Infocom BV Reliance Infocom Inc. Reliance Technologies LLC Reliance Communications (U.K.) Limited Reliance Communications Inc. Gas Transport and Infrastructure Limited BSES Andhra Power Limited BSES Infrastructure Finance Limited Tamilnadu Industries Captive Power Company Limited Utility Powertech Limited BSES Kerala Power Limited Western Electricity Supply Company of Orissa Limited North Eastern Electricity Supply Company of Orissa Limited Southern Electricity Supply Company of Orissa Limited Reliance Power Ventues Limited Reliance Industrial Investment Holdings Limited Reliance capital limited BSES Yamuna Power Limited BSES Rajdhani Power Limited

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
1950000000	Equity Shares	Rs. 10/- Each	Rs.19500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
235620000	Equity Shares	Rs. 10/- Each	Rs.2356.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		2356.200	2285.700	2123.600
2]Equity Warrances Issued		7834.900	0.000	882.400
3] Share Application Money		0.000	0.000	0.000
4] Reserves & Surplus		106678.500	91106.700	75726.800
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		116869.600	93392.400	78732.800
LOAN FUNDS
1] Secured Loans		5000.000	8100.000	19198.100
2] Unsecured Loans		38638.800	44233.200	23471.200
TOTAL BORROWING		43638.800	52333.200	42669.300
DEFERRED TAX LIABILITIES		2485.100	2312.900	2040.700
Service Line Deposits from consumers		201.600	246.400	235.400
Non convertible Debentures		6250.000	6250.000	0.000

TOTAL		169445.100	154534.900	123678.200

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		30675.800	28158.700	26560.600
Capital work-in-progress		5689.200	2884.900	2176.500

INVESTMENT		76643.600	25118.800	11927.400
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3002.900	2926.900	2950.500
	Sundry Debtors	13514.100	12098.800	10927.900
	Cash & Bank Balances	876.500	21759.200	56529.000
	Other Current Assets	6455.800	3464.500	3129.000
	Loans & Advances	66365.300	89429.700	31616.900
Total Current Assets		90214.600	129679.100	105153.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	25993.800	24000.400	15708.200
	Provisions	7784.300	7306.200	6431.400
Total Current Liabilities		33778.100	31306.600	22139.600
Net Current Assets		56436.500	98372.500	83013.700

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		169445.100	154534.900	123678.200

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		49198.700	36109.500	46078.900
Income from EPC, contracts Elastimold Divisions		14443.500	20988.400	0.000
Dividend		97.600	127.700	0.000
Interest		5158.100	5999.800	0.000
Other Income		6114.100	2526.400	0.000
Total Income		75012.000	65751.800	46078.900

Profit/(Loss) Before Tax		11517.000	8723.700	7814.700
Provision for Taxation		670.700	709.200	1311.300
Profit/(Loss) After Tax		10846.300	8014.500	6503.400

Export Value		0.000	0.000	3.400

Import Value		0.000	0.000	2211.700

Expenditures :
	Salaries, Wages, Bonus, etc.	3540.900	2851.400	0.000
	Managerial Remuneration	140.600	53.300	0.000
	Payment to Auditors	11.800	09.300	0.000
	Depreciation & Amortization	2229.400	2400.600	0.000
	Other Expenditure	57572.300	51713.500	38264.200
Total Expenditure		63495.000	57028.100	38264.200

QUARTERLY RESULTS

PARTICULARS	30.06.2008	30.09.2008
Type	1^st Quarter	2^nd Quarter
Sales Turnover	21981.100	24732.300
Other Income	4203.200	2016.300
Total Income	26184.300	26748.600
Total Expenditure	22223.400	21960.400
Operating Profit	3960.900	4788.200
Interest	774.200	652.800
Gross Profit	3186.700	4135.400
Depreciation	612.100	620.000
Tax	24.200	445.700
Reported PAT	2525.400	2889.700

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	05.800	06.500	06.700
Long Term Debt-Equity Ratio	05.100	05.200	05.000
Current Ratio	24.100	29.500	26.400
TURNOVER RATIOS
Fixed Assets	11.200	11.600	08.700
Inventory	207.500	191.100	119.100
Debtors	48.000	50.100	39.100
Interest Cover Ratio	47.300	44.800	50.700
Operating Profit Margin(%)	273.600	236.200	334.200
Profit Before Interest And Tax Margin(%)	237.400	194.600	246.000
Cash Profit Margin(%)	212.500	180.500	252.500
Adjusted Net Profit Margin(%)	176.300	138.900	164.400
Return On Capital Employed(%)	98.000	86.900	96.800
Return On Net Worth(%)	114.800	102.300	107.900

LOCAL AGENCY FURTHER INFORMATION

History

Reliance Energy Limited (formerly BSES Limited) was incorporated in 1929 as 'Bombay Suburban Electric Supply Limited'. In 1992 the name was changed to 'BSES Limited' as the company entered into various activities besides supply of electricity.

From a modest licensee supplying power to the suburbs of Bombay, BSES is today a multi locational and multidimensional enterprise. In the process it has emerged as the country's leading integrated power company with activities spanning the entire power process right from concept to consumption of electrical energy.

During the year 2004-2005 , the company has modernized and upgraded its two Delhi distribution companies that is BSES Rajdhani Power Limited and BSES Yamuna Power Limited which consists of 14 Divisions and 19 Divisions respectively.

The Company has sponsored Reliance Energy Genereation Limited (REGL) to develop,construct and operate a 3740 MW gas based power generation project at Dhirubhai Ambani Energy City. REGL has been shortlisted as a pre-qualified bidder for 1000 MW Anpara C Power Project in Uttar Pradesh. Also REGL has Signed MOU on 04th April 2005 with Government of Maharashtra to examine the feasibility of setting up a Gas based Combined Cycle Power Plant of 4000 MW in Maharashtra.

The Company is about to implement 500 MW of wind based power projects across various states in India such as Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu and Andhra Pradesh. The Company is also exploring hydro based power generation projects in the states of Himachal Projects, Uttaranchal, Arunachal Pradesh and other states having hydro potential. As a result of this, the company has secured 280 MW Sobla Hydro Power Project on the Dhauliganga river in Pithorgarh district of Uttaranchal State.

The Company has been selected as preferred bidder and the finalised transaction documents have been initialled on 17th January 2005 by Power Grid Corporation of India Limited for selection of a joint partner for setting up of the transmission line for Parbati and Koldam hydro-electric projects in Himachal Pradesh, on build-own-operate-transfer basis.

BSES, with its corporate lineage going back to 1929, is India's premier utility engaged in the generation, transmission and distribution of electricity in and around Mumbai. It provides a portfolio of value added services in electrical contracting, engineering, procurement and construction (EPC) contracts and computer services.

BSES and its subsidiaries provide electricity service to more than 2.70 million consumers in area covering about 1,23,000 sq. km. and with an estimated population of about 34 million.BSES operates a state-of-the-art 500 MW Thermal Power Station at Dahanu near Mumbai and supplies the power to the Company's own distribution grid. The Generation Division undertakes engineering and construction of power plants. The Transmission Division designs and installs transmission lines and sub-stations. Contracts, EPC and International Divisions render comprehensive value added services in construction, erection and commissioning through a nationwide network of regional office including a representative office in the Middle East. The Computer Division offers a wide range of utility related computer services.BSES is currently promoting several power projects, on its own and through joint ventures, in various parts of India. BSES has also entered into the internet service provider business in a big way. BSES is selling its internet services under the brand name powersurfer.net

.
The liberalization of the Indian economy has opened up newer opportunities for the power sector and as the leading private sector player, BSES is poised to take advantage of these reforms.

Strategies upto 2000 A.D. - Power generation, transmission and distribution are areas of core competencies. - 90% of investment to be made in core activities and the balance in other related activities. - Other related activities cover those synergetic to the core activities. - The resources for these projects would be met by BSES and raised through joint ventures.

Corporate Plan - First Five Years:Core Areas: Power Generation capacity around 2000 MW Dahanu expansion / Palghar Project: Capacity - 500 MW Projects at different locations - Capacity - 1500 MW Three to four distribution networks of similar size as BSES Mumbai.Through Joint venturesBSES Kerala Power Limited TICAPCO-Srimushnam Project BSES Andhra Power Limited Maithon Power Limited

During 2001-02 the BSES Kerala Power Limited had commission the power station in the Combined Cycle mode but due to various reasons the BKPL has suspended its operations from October,2001. OFGW of 220 kV transmission line between Ghodbunder,Versova and Dahanu was successfully completed.

Distribution: Orissa Distribution Companies Part of Rajasthan Distribution System. Consultancy of Goa, Andhra Pardesh. It has given consultancy to Andhra Pradesh State Electricity Board (APSEB) for privatisation of Distribution System. Also the Goa Power Department has shown interest for consultancy for restructuring and privatisation of power department. The assignment is awarded to BSES and it is being executed.

Related Areas: ST BSES Coal Washeries Limited Utility Powertech Limited BSES Telecom Limited BSES Infrastructure Finance Limited

Electric Supply and Transmission Division:

BSES has a consumer base of 2 million. Importantly, there is no agriculture load as the company caters to the urban areas only. It has a good recovery of 99.4%, which helps it to provide efficient and effective consumer services.

PROFILE

Subject Company (formerly Reliance Energy Limited) is a part of the Reliance Anil Dhirubhai Ambani Group, India's second largest business house.

Incorporated in 1929, Subject is one of India's fastest growing companies in the infrastructure sector. It ranks among India's top listed private companies on all major financial parameters, including assets, sales, profits and market capitalization.

Subject companies distribute more than 25 billion units of electricity to over 25 million consumers across an area that spans over 1,24,300 sq kms and includes India's two premier cities, Mumbai and Delhi. The Company generates over 940 MW of electricity through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.

Subject has emerged as the leading player in India in the Engineering, Procurement and Construction (EPC) segment of the power sector,

In the last few years, Reliance Infrastructure has expanded its foot-print much beyond the power sector. Currently, Reliance Infrastructure group is engaged in the implementation of projects not only in the field of generation, transmission, distribution and trading of power but also in other key infrastructural areas such as highways, roads, bridges, metro rail and other mass rapid transit systems, special economic zones, real estate, etc.

In order to appropriately reflect the diverse businesses being carried on by it, Subject changed its name, effective April 28, 2008, from Reliance Energy Limited to Reliance

Financial Performance

During the year, the Company recorded the total income of Rs.75010.000 millions, against Rs 65750.000 millions in the previous year, an increase of 14%. Net Profit for the financial year ended Mach 31, 2008 recorded an increase of 35% to Rs 10850.000 millions from Rs 8010.000 millions in the previous year.

Shareholders equity (Networth) increased to Rs 116900.000 millions from Rs 93390.000 millions in the previous year.

Change of name

As approved by the members through postal ballot on April 17, 2008, the name of the Company has been changed to Reliance Infrastructure Limited with effect from April 28, 2008. The new name appropriately reflects various infrastructure businesses being carried on by the Company and redefines the Company's vision and focus to emerge as a premier infrastructure company.

Major Associate Company

Reliance Power Limited

Reliance Power Limited (Reliance Power), promoted jointly by subject company and Shri Anil Dhirubhai Ambani through AAA Project Ventures Private Limited, made an Initial Public Offering (IPO) of 260.000 millions equity shares of Rs 1 0 each in January 2008 at an issue price of Rs 450 per share with a discount of Rs 20 to retail investors i.e. an issue price of Rs 430 per share. The IPO received an overwhelming and record breaking response, with commitment of about Rs 7,50,0000.000 millions (USS 1 90 billion) from nearly 500 institutional investors across the globe and over 5 million retail investors.

Subsidiary Companies

The Company, as of March 31, 2008 had nine subsidiaries, viz, BSES Kerala Power Limited, Reliance Infraprojects Limited, Reliance Projects Finance Private Limited, Reliance Power Infrastructure Private Limited, Reliance Power Transmission Limited, Noida Global SEZ Private Limited, Mumbai Metro One Private Limited, Reliance Energy Trading Limited and Parbati Koldam Transmission Company Limited. Besides, Western Region Transmission (Maharashtra) Private Limited and Western Region Transmission (Gujarat) Private Limited became wholly owned subsidiaries of Reliance Power Transmission Limited, a subsidiary of the Company, with effect from

November 14, 2007 and in terms of Section 4(1) (c) of the Companies Act, 1956, these two companies have become subsidiaries of the Company.

In terms of the approvals granted by the Central Government under Section 21 2(8) of the Companies Act, 1 956, copies of the balance sheet, profit and loss account and reports of the board of directors and auditors of the subsisting subsidiaries have not been attached with the balance sheet of the Company, However, these documents will be made available upon request to any member of the Company interested in obtaining the same. As directed by the Central Government, the financial data of the subsidiaries has been

MANAGEMENT SISCUSSION AND ANALYSIS

Overall review

The Company has changed its name from Reliance Energy Limited to Reliance Infrastructure Limited with effect from April 28, 2008 as approved by the members through postal ballot on April 1 7, 2008. The new name appropriately reflects various infrastructure businesses, including in the power and energy sector, being carried on by the Company and redefines the Company's vision and focus to emerge as a premier Infrastructure Company. Reliance Infrastructure is India's leading private sector Infrastructure Company, with aggregate estimated group revenues of Rs 1 66900.000 millions (USS 4.1 6 billion) and gross fixed assets of Rs 1 33000.000 millions (USS 3.31 billion), Reliance Infrastructure is ranked amongst India's leading private companies on all major financial parameters, including assets, sales, profits and market capitalisation.

The highlights of performance of the Company for the year 2007- 08 are:

Totallncome of Rs 75010.000 millions (USS 1.87 billion), as against Rs 65750.000 millions (USS 1.64 billion) in the previous financial year, an increase of 1 4 per cent.

Cash Profit of Rs 13080.000 millions (USS 326 million), against Rs 10410.000 millions (USS 259 million) in the previous financial year, an increase of 26 per cent.

Net Profit of Rs 10850.000 millions (USS 270 million), against Rs 8010.000 millions (USS 200 million) in the previous financial year, an increase of 35 percent.

Cash Earnings Per Share for the year of Rs 55 (USS 1.37) against Rs 46 (USS 1.1 5) in the previous financial year, an increase of 20 per cent.

Earnings Per Share (EPS) of Rs 47 (USS 1.17) against Rs 37 (USS 0.9) in the previous financial year, an increase of 27 percent.

In order to optimise shareholder value, the Company continues to focus on in-house opportunities as well as selective large external projects for its Engineering, Procurement and Construction (EPC) Division. The EPC Division had an order book position of Rs 78490.000 millions (USS 1,96 billion) as on March 31, 2008.

Financial Review

Reliance Infrastructure's total income for the year ended March 31, 2008 increased to Rs 75010.000 millions (USS 1.87 billion), compared to Rs 65750.000 millions in the previous year,

The total income includes earnings from sale of electrical energy of Rs 49200.000 millions (USS 1.23 billion) as compared to Rs 36110.000 millions recorded last year. The sale of electrical energy includes income of Rs 3080.000 millions (USS 77 million) and Rs 2980.000 millions (USS 74 million) from the Samalkot Power Station (SPS) and the Goa Power Station (GPS) respectively.

The turnover of their EPC business was Rs 14440.000 millions (USS 360 million), against Rs 20990.000 millions (US S 523 million) in the previous year. Other income for the year rose to Rs11350.000 millions (USS 283 million), mainly representing interest income.

The cost of electrical energy purchased increased by 62 per cent from Rs 15330.000 millions (US S 382 million) in the previous year to Rs 24880.000 millions (USS 620 million) during the current year.

During the year, interest expenditure increased to Rs 3090.000 millions (USS 77 million) as compared to Rs 250 0.000 millions (US S 62 million) in the previous year, owing to higher level of debt for the period.

To reflect true value of its prime assets, the Company has revalued assets of its Dahanu power station by Rs 7520.000 millions (USS 187 million). In view of this, the depreciation on such revalued assets is higher by Rs 540.000 millions (USS 1 3 million), and the same has been adjusted by withdrawing equivalent amount from the general reserve, which is credited to the profit and loss account.

The generation undertakings - Dahanu power station, Samalkot power station, Goa power station and the wind farm in Karnataka are eligible for tax holiday under section 80IA of the Income Tax Act, 1 961 for a total of 1 0 consecutive years out of 1 5. Hence, the effective tax rate for the Company as a whole is governed by section 11 5 JB of the Income Tax Act, 1 961.

The corporate tax liability for the year was Rs 1370.000 millions (USS 34 million), compared to Rs 900.000 millions in the previous year. There was a deferred tax liability of Rs 1 70.000 millions (USS 4 million) for the year. Cash profit for the year was Rs 13080.000 millions (USS 326 million) compared to Rs 10410.000 millions (USS 259 million) in the previous year,

Operating profit i.e. profit before depreciation, interest and tax (PBDIT) increased by 23 per cent to Rs 16830.000 millions (USS 41 9 million) during the year, up from Rs 13630.000 millions in the previous year.

Net profit for the year recorded an increase of 35 per cent to Rs 10850.000 millions (US$ 271 million), against Rs 8010.000 millions in the previous financial year.

The net profit of Rs 10850.000 millions (USS 271 million) has been arrived at after taking into consideration the following higher expenses aggregating to Rs 1740.000 millions (USS 43 million) for the year.

• Rs 400.000 millions (USS 9.8 million) towards swap loss and exchange fluctuation in respect of trade activities

• Rs 800.000 millions (USS 20 million) towards provision for contingencies.

• Rs 540.000 millions (USS 13.5 million) towards increase in salaries and wages

Excluding the above, the net profit would have been higher at Rs 12580.000 (USS 311 million), an increase of 57 per cent. During the year under review, the equity capital of the Company increased by Rs 80.000 Millions to Rs 2365.300 Millions (USS 58.79 million), consequent upon conversion of outstanding foreign currency convertible bonds.

In their ongoing endeavour to enhance value for their shareholders, RInfra introduced India's largest share buy-back programme. The Company made an announcement to buy-back up to 1 0 per cent of the paid-up capital and free reserves (including securities premium) of the Company aggregating Rs 8000.600 Millions, at a maximum price of Rs 1,600 per share, as approved by the Board of Directors on March 5, 2008. The shareholders of the Company have also approved the buy-back of up to 25 per cent of the paid-up capital and free reserves of the Company aggregating Rs 20001.400 Millions on April 1 7, 2008, inclusive of the percentage of shares and the aggregate amount approved by the Board of Directors of the Company.

The Company bought-back 9,51,500 equity shares for an aggregate amount of Rs 1 226.800 Millions between March 25, 2008 and March 31, 2008. These shares were extinguished by April 11, 2008. As of the date of this report, the Company has cumulatively boughtback 24,38,551 equity shares for an aggregate amount of Rs 307.68 crore,

The total dividend payout for the year at 63 percent dividend rate is Rs 1 730.000 Millions (USS 43 million) including dividend tax, an increase of nearly 22 per cent over the dividend pay out including tax of Rs 1 420.000 Millions at 53 per cent dividend rate forthe previous year. Capital expenditure during the year was Rs 8190.000

Millions (USS 204 million), primarily on account of expenditure incurred on modernizing and strengthening of the distribution network.

Total gross assets increased during the year to Rs 63960.000 Millions (USS 1.594 billion).

The Company ranks among leading Indian private sector companies in terms of net worth. As on March 31, 2008, the net worth of the Company stood at Rs 116870.000 Millions (USS 2.91 3 billion).

During the year, Reliance Energy Trading Limited and Parbati Koldam Transmission Company Limited have become subsidiaries of the Company. Further, Western Region Transmission (Gujarat) Private Limited and Western Region Transmission (Maharashtra) Private Limited, both subsidiaries of an existing subsidiary company, Reliance Power Transmission Limited, also became subsidiaries of the Company during the year. The revenues and profits of these newly incorporated companies in the brief financial period ended March 31, 2008 were not significant.

Resources and Liquidity

Reliance Infrastructure continues to maintain its conservative financial profile, as reflected in its top-end credit ratings.

Reliance Infrastructure's long-term debt is rated 'AAA' from CRISIL, the highest rating awarded by the agency. FITCH Ratings India has also awarded 'Ind AAA' debt rating for the Company, indicating the highest credit quality. The Company's debt is rated 'MAAA' from ICRA, reflecting the highest inherent financial strength.

The Company's gross debt as at the end of the financial year stood at Rs49890.000 Millions (USS 1.24 billion). Of this, nearly 67 percent represented foreign currency denominated debt. The average final maturity of the Company's long-term debt is about 4 years The average annual interest cost is about 4.5 per cent.

Reliance Infrastructure's current cash flow levels, for less than four years, are adequate to extinguish its entire gross debt, reflecting its inherent financial strength and conservatism. At net level, the Company is currently debt free.

The Company funds its long-term and project related financing requirements from a combination of internally generated cash flows and external sources. The working capital requirements are met through commercial rupee credit lines provided by a consortium of Indian and foreign banks.

The Company also undertakes liability management transactions and enters into other structured derivatives arrangements such as interest rate and currency swaps. This is practised on an ongoing basis to reduce overall cost of debt and diversify liability mix.

Infrastructure Industry Structure and developments

The acceleration in India's recent economic growth has been spearheaded by the private sector. The cumulative effects of marketopening reforms has been to raise competition, diffuse new management know-how and technologies and unleash entrepreneurial spirit.

Yet, the inadequate supply of infrastructure remains a major constraint and has prevented India from realizing its true growth potential. (World Economic Forum's Global Competitiveness Report, FY2007),

The Government of India has unveiled the 11 th Five-Year Economic Plan, spanning the financial year 2007 to the financial year 201 2. The Plan estimates a capital requirement of about USS 320 billion to be spent over the planned period on improving roads, railways, ports, power and water systems. This is a policy initiative in the right direction and would raise infrastructure spending from the current 5 per cent of GDP to about 9 per cent in financial year 2012.

It is estimated that at least 30 per cent of the planned infrastructure expenditure shall be met through private sector participation. The private sector participation in infrastructure is being pursued through innovative routes and combination thereof, including Public-Private- Partnership (PPP), formation of special purpose vehicles and

provision of viability gap funding.

PPP involves long-term contracts between the government and private sector entities detailing the rights and obligation of both parties. PPP framework offers significant advantages in terms of sharing risks and lowering the cost of provisions of services to users. The PPP framework also ensures the continued support of the government throughout the project life, an essential ingredient for successful implementation of infrastructure projects in the country.

In order to attract private sector participation, the government is undertaking various initiatives at the highest level. The transaction documents for PPP projects are being standardized; the Model Concession Agreement (MCA) for PPPs in National Highway Projects is already in operation; similarly MCAs for other segments of the infrastructure businesses viz. Mass Rapid Transit Systems (MRTS),

Reliance Energy - Energy Distribution Division of Reliance Infrastructure

Mumbai Distribution Business

The Company has been in the field of power distribution for nearly eight decades and with its emphasis on continuous improvement, has achieved the distinction of consistently operating its distribution network at 99.9 per cent reliability.

Automation and Information Technology

Their focus area this year has been to assist operations by incorporating the spatial component of field activities through Geographical Information Systems (CIS). It is now emerging as the workspace for several critical field transactions. Its integration with other systems like SAP R/3. SAP ISU-CCS, Outage Management, Distribution Management (Secondary SCADA) has been completed. This has been successfully undertaken by their in-house team, thereby containing costs.

Several dominos based office productivity enhancement systems have been augmented and developed. Earlier systems are now being used and have become the backbone of several critical transactions. The introduction of office systems like travel and documents management has improved efficiency and eased the working of office staff.

The year 2007-08 has also seen a major consolidation of their IT systems. With the upgradation of SAP R/3 and the addition of an HR module to the latest ECC6, they are now at the leading edge of the SAP application version. Several functionalities have been added to the existing SAP HR services. The Performance Management System (PMS) has been tested in a live context along with training and event management system.

Reliance Infrastructure has been certified for ISO 27001, an Information Security Management System (ISMS). In the process of achieving certification, several systems and processes were aligned and best practices implemented as per the policy requirements of ISMS to ensure quality and security of data.

Orissa Distribution Business

The three Orissa distribution companies ("Discoms") have in the last 5 years, made substantial improvement with cash collections rising by almost 70 per cent, without any increase in tariff.

The Bulk Supply tariff orders for 2006-07 and 2007-08 were having substantial adverse financial impact for two Discoms viz., Western Electricity Supply Company of Orissa Limited (WESCO) and North Eastern Electricity Supply Company of Orissa Limited (NESCO). The discoms will be filing review petition to OERC and the matters are pending before ATE and the Suprreme Court.

The Orissa Electricity Regulatory Commission (OERC) has not permitted any increase in tariff for eight consecutive years in retail supply and the tariff order as computed by the OERC has resulted in negative returns to discoms.

The load growth in WESCO and NESCO in the last two years is encouraging. NESCO earned profits in 2005-06 and 200.6-07, whereas WESCO earned profit during 2005-06, but due to steep increase in BST, it again incurred loss in 2006-07.

The Company has made adequate provision for diminution in the value of its investments in these companies.

Generation Business

Dahanu Thermal Power Station

During the year, the Dahanu Thermal Power Station generated 4.459 billion units at an average Plant Load Factor (PLF) of 101.53 per cent, against 4.458 billion units generated in the previous year. The plant has gradually progressed from a PLF of 90.53 percent in 2002-03 to the current record level of 1 01,53 per cent, as against the CERC norm of 80 per cent in the last five years. The station has also achieved a plant availability of 96.70 per cent during the year.

The Dahanu Power Station emerged as the country's best thermal power plant on various parameters such as PLF, availability and heat rate. The power station has recieved a string of prestigious awards for excellence across different categories ranging from operational performance and energy conservation to pollution control and water management.

The power station continues to surge ahead on six sigma quality initiatives for all round improvement in the business processes. The station has the distinction of obtaining ISO 9001. ISO 1 4001, OHSAS 1 8001 and SA 8000 certifications in the country. The Dahanu Power Station has received the Integrated Management Systems (IMS) certification for ISO 9001, ISO 1 4001 andOHSAS18001.

Installation and commissioning of flue gas de-sulphurization plant was completed in the month of September 2007 which has reduced the environmental plant S02 emissions to less than 1 0 per cent of the earlier values.

Samalkot Power Station

During the year, the 220 MW combined cycle power station of the Company at Samalkot in Andhra Pradesh recorded a PLF of 60.61 per cent, against a PLF of 50.55 per cent in the previous year. The station generated 1.1 71 billion units, against 974.20 million units in the previous year. The average gas availability to the station increased to 0.63 million cubic meters as against 0.56 million cubic meters per day made available in the last year. This year the plant has also operated in mixed fuel mode as per AP Transco's dispatch instructions. The plant continued to maintain an availability factor of 97.40 per cent.

The station has received the Integrated Management Systems (IMS) certification covering ISO 9001, ISO 1 4001, OHSAS 1 8001, ISO 27001 and SA 8000 standards.

Goa Power Station

During the year 2007-08, the 48 MW combined cycle power station of the Company at Goa generated 359.53 million units (including 32.70 million units as deemed generation), at an average PLF of over 85.27 per cent against a generation of 396 million units and PLF of 94.04 per cent achieved in the previous year. The station

achieved plant availability of 91,66 per cent compared to 94.93 per cent achieved in 2006-07. Both generation and PLF declined

year. Gross station heat rate increased by 2.43 percent at 2,065 Kcal/Kwh compared to 2,01 6 Kcal/Kwh achieved in 2006-07. The reduction in generation and PLF for the current year, ascompared to 2006-07 was mainly due to cooling tower revamping work.

The plant has taken up several initiatives towards conservation of resources and improving environmental performance. The Energy Conservation Cell of the Company is responsible for implementation of energy conservation projects and to follow all guidelines set by the Bureau of Energy Efficiency. Continuous efforts towards energy conservation have reduced the auxiliary power consumption to about 2.20 per cent compared to 2.31 per cent achieved in the previous year.

A six sigma project was undertaken for study of improvement in combined cycle heat rate by reduction in compressor fouling. Suggestions from the study have been implemented to minimize fouling of gas turbine compressor and improve heat rate.

The distribution system of the Goa power station achieved an overall availability of over 99.98 per cent. The ATandC losses were maintained at 0.85 percent. Customer Satisfaction Indices (CSI) has also been developed for effective feedback from consumers about power quality and services. The entire metering and billing cycle was reduced to 4 hours and the station achieved collection efficiency of almost 1 00 per cent.

The station achieved significant milestones in the fields of environment and safety practices during 2007-08. It was adjudged the best among gas based power stations in the country and was awarded the prestigious Greentech Silver Award in the category of environment management. Similarly, the station was also conferred

the Greentech Gold Award for safety management amongst gas based power plants.

The station is certified for ISO 14001 and OHSAS 1 8001, SA8000, IS09001 and IS027001 certifications are under progress for all the certifications under Integrated Management System.

Kochi Power Station

BSES Kerala Power Limited (BKPL) operates the 1 65 MW naphtha based power plant at Kochi in the state of Kerala.

During the year under review, the plant could not operate at a significant PLF level, on account of lower dispatch instructions from the Kerala State Electricity Board (KSEB), due to steep increase in naphtha prices. The availability of the plant during this period under review was 90 per cent. The loss in availability was on account of

one of the gas turbines developing fault during its operation in October 2007. The turbine was sent to the depot of GE, Netherlands, the original equipment manufacturer, for repairs and the machine has been brought back after repairs and reinstalled in February 2008. During the year under review, the Station generated 73.99 million units on naptha fuel at an average PLF of 25.8 per

cent compared to a PLF of 1 3.24 per cent in the year 2006-07, due to lower dispatch instructing by KSEB.

The Plant was operated as per the instruction of KSEB.

Wind Farm Project

During the year, the Company's wind farm project consisting of 33 windmills with an aggregate capacity of 7.59 MW at Chitradurga in Karnataka generated over 21.290 Millions units.

The wind farm recorded a PLF of 25.81 percent during the year 2007-08 as against 27.88 per cent during the previous year because of lower wind velocity patterns in the area. Installation of SCADA at the wind farm is under progress for better monitoring and control of the windmills.

EPC Business

Overview

The Company undertakes the Engineering, Procurement and Construction (EPC) contracts of industrial projects in various fields like power generation, transmission and distribution. The EPC Division mainly focuses on the power sector projects and is continuously building up on its strengths in the same field. The division is equipped with the requisite expertise and vast experience to undertake EPC projects and execute them successfully on stand alone basis. It employs state-of-the-art technology in engineering design and project management to execute its projects.

The division has continued to perform well during 2007-08 with an order book position of about Rs 78490.000 Millions as on March 31, 2008 as compared to about Rs5 5250.000 Millions as on March 31, 2007. The EPC Division has been recommended for Integrated Management System (IMS) by Det Norske Veritas (DNV) covering Environmental Management System (ISO 14001) and Occupational Health and Safety Management (OHSAS 1 8001).

Business Environment

The current trends indicate that the Indian economy is growing at a GDP growth rate of 8.7 per cent, largely due to sustained growth in the industrial sector. Industrial sector in India is a major consumer of energy accounting for about more than 52 per cent of commercial energy consumption and has registered a growth rate of around 9.2 per cent during the first three quarters of the current fiscal and is expected continue to grow at same pace and even more with commensurate development of infrastructure facilities. The economic growth of the country is closely linked with that of the power sector. In 2007-08, the average power deficit in the country was 7 per cent and went up, at peak demand, to as high as 14 per cent. For the past few years, the centre as well as the state governments have substantially raised their focus on the power sector which in turn has created huge growth opportunities for the Company.

Ongoing EPC Projects

Generation Projects

* 2 X 300 MW (600 MW) Deenbandhu Chhoturam Thermal Power Station, Yamuna Nagar

The project is on the verge of completion and has achieved significant progress during the year with an over-all physical progress of 99.8 per cent against the plan of 100 per cent. Significant highlights are:

- Both Unit No. 1 and Unit No. 2 synchronized successfully in November 2007 and March 2008 respectively.

- Concreting of 2,49,834 cubic metre has been done out of total of 2,60,000 cubic metre.

- Fabrication of 28,105 metric tons and erection of 27,685 metric ton structural steel has been completed.

- Crusher 2 erection work and wagon tippler 2 erection work completed.

- Final preparations for handing over the project to Haryana Power Generation Corporation Limited (HPGCL) are underway.

* 2 X 600 MW (1,200 MW) Rajiv Gandhi Thermal Power Project, Hisar

This is the second project awarded by HPGCL. The project execution work, which commenced in January, 2007, is currently running ahead of schedule, despite the aggressive timelines of 35 months for Unit-I and 38 months for Unit-II. So far the project has achieved 28.33 per cent progress against the plan of 26.37 per cent. In achieving this progress, significant highlights and milestones reached are:

- Piling for the main plant is completed.

- 4,368 metric tonnes of fabrication and 1,838 metric tonnes of erection of structural steel completed.

- 1,51,600 cubic metre of concrete was poured.

- Railway siding layout finalized with HPGC.

- Total 20,133 metric tonnes of boiler and turbine generator material dispatched from Shanghai Electric Corporation, China.

* 2 x 250 MW (500 MW) Parichha Thermal Power Project - II (Unit 5 and 6) BOP Package

The project has been awarded to the Company by Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited for the construction of Balance of Plants for its Parichha-II extension project. The project took off in February, 2007 and has achieved an overall progress of 21 per cent.

Construction work is in progress for cooling water pump house, forebay, demineralization plant, cooling water switchgear, electric motor repair workshop, fuel oil pump house, fuel oil distribution tanks, culverts for roads and drainages, service and diesel generator building. Test pile -load test completed and report sent for approval. 98 per cent excavation completed in cooling water forebay, cooling water piping fabrication to the extent of 45 per cent. 26 per cent of inspection work was completed.]

Quality - trade test have commenced at site and certificates issued to skilled workers.

* 2 x 300 MW (600 MW) Rosa Thermal Power Project, Rosa, UP

Since its start from March 2007 the project has so far achieved 18.82 per cent physical progress against a plan target of 16.67 per cent. The work on the project site is progressing rapidly with following major milestones:

- 59,240 cum concreting completed.

- 2,684 piles completed in BTG area.

- Boiler erection commenced in February 2008.

- In Switchyard, 553 equipment foundations completed.

- Structure erection completed for field hostel and guest house in township.

- Chimney raft foundation completed in March 2007.

Coal Handling Plant piling and other civil work started in March 2008. Structure work for both the permanent stores completed, while finishing work is in progress.

Implementation of OHSAS 18001-2007 at site and trade test has been conducted to train every skilled labour.

* 6 x 660 MW (3,960 MW) Sasan Ultra Mega Power Project

Reliance Power bagged India?s second ultra mega power project and the largest domestic coal based power plant (Sasan UMPP) in August 2007 through an international competitive bidding process. The project is being executed by the EPC Division of Reliance Infrastructure and has started progressing rapidly.

In the early work programme, the actual progress achieved is 22.4 per cent. Purchase orders/ work orders placed for 35 packages including consultancy and site enabling packages. Route survey work for 33 kV transmission line and relief and rehabilitation colony electrification has been completed.

Load approval has been received from MPSEB for construction power. All study and investigation work except topographical survey and soil investigation work at site, has been completed. The logistics study has been awarded. V-sat has been installed and commissioned at site and the base camp is functional.

* 4,000 MW Krishnapatnam Ultra Mega Power Project

In November 2007, Power Finance Corporation Limited issued the Letter of Intent to Reliance Power for the India's third ultra mega power project at Krishnapatnam. Reliance Infrastructure's EPC Division is executing the project with a schedule of 51 months for Unit 1 and 75 months for Unit 5.

The project, located in the coastal region of Andhra Pradesh, is based on imported coal supply.

The initial part of the project including master planning, the construction of a like site office and guest house, the erection of a sea water intake system, topographical survey and soil investigation, is underway and progressing rapidly.The technical evaluation for the logistics study is also underway.

* 2 x 600 MW (1,200 MW) Raghunathpur Thermal Power Project

In December 2007, the EPC Division received the Letter of Intent from Damodar Valley Corporation for the 2 X 600 MW Raghunathpur Thermal Power Plant. The project was awarded to the Company on the basis of single bid for the first time in the history of Indian power sector. Few highlights are:

- Engineering work is in full swing with the appointment of consultant on December 2007.

- Topographical survey of the main plant area, the ash pond area, the ash corridor and the river corridor for storm water has been completed.

- Site office area grading work completed. Excavation of 35 footings completed. Plain Cement Concrete of 23 footings completed.

- Contract signed with Shanghai Electric Corporation in February 2008 for boiler turbine generator equipment supplies.

- Soil investigation for bound wall, permanent store, administration building completed and main plant area is in progress.

- Office functional at site.

* 7,480 MW Project at Dhirubhai Ambani Energy City, Dadri, Uttar Pradesh

The project, which is the world's largest gas based power plant at a single location, is being developed by Reliance Power. It entails the development, construction and operation of 7,480 MW ultra mega power project. In addition, a coal based 1,320 MW thermal power plant is also envisaged. The major highlights are:

- 2,175 acres of land has been acquired. This includes 132 acres of private land, 193 acres of government land and 75 acres of land under exchange.

- Conceptualization of coal based unit along with 7,480 MW Gas based combined cycle power plant, has been completed and the detailed project report for the former has been prepared.

- The thermal power plant recieved chimney clearance from both the Ministry of Defense and the Airport Authority of India in October 2008.

- Coal logistics, railway siding, raw water pipeline survey study completed.

- Detailed project report for the railway siding including Rail Traffic Control (RTC) clearance and conceptual plan is in process.

Transmission and Distribution Projects

* 220 KV AD Hydro Transmission Works

This 220 kV Transmission line is being constructed in the country at an altitude of 2,740 meters from the mean sea level. Towers are designed with an ice deposit of 36 mm. 143 Nos foundations casted out of 160 numbers released. Erection of 94 out of 143 towers completed released so far. The remaining towers are planned to be erected by May 2008. The engineering and procurement work has been completed and the construction work has achieved a physical progress of 53 per cent.

* 220 kV Rosa Switchyard

The EPC Division is developing a state-of-the-art switchyard at the Rosa power project site. The Division is using the pipe structure for 220 KV towers instead of conventional lattice type. There is no control room building and bay controllers are being kept in the switchyard using AC Kiosks. More than 50 per cent of the engineering and procurement work has been completed. Satisfactory progress has been achieved in the construction work. The project is expected to be completed by the first quarter of 2008-09.

* 400 kV Hisar Switchyard

This switchyard is being developed at the Hisar power project site for HPGCL. Control Room is being designed with better aesthetics. Out of 455 foundations in all, 343 have been completed. The work is going on in full swing. There has been of 6 per cent progress in engineering, 54 per cent in procurement and 22 per cent in construction front. The project is expected to be completed by the first quarter of 2008-09.

* 400 KV DVC Raghunathpur Switchyard

This switchyard is being made at the Raghunathpur power project site for the DVC. It includes two of 315 MVA 400/ 220 kV ICTs and four 50 MVAR reactors. The Engineering work has achieved a progress of 24.50 per cent and the Procurement has achieved 6.18 per cent progress. The project is expected to be completed by second quarter of 2009-10.

* 765 kV Sasan Switchyard

This is the biggest 765 kV sub-station in Madhya Pradesh located at Sasan.It includes 765/400 kV, 333 MVA, 1ph transformers and 765 kV, 80 MVAR, 1ph reactors. Engineering work has been started and 5 per cent progress achieved. Technical specifications are under preparation.

* UPRE Rural Electrification Project

The EPC Division is executing the project under the Government?s rural electrification scheme called Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY). The project is on the verge of completion with the electrification of 99 per cent of the villages as per the revised scope. The project has provided more than one lakh Below Poverty Line (BPL) connections till date.

Following are the key highlights of the year:

- Electrical Inspectorate clearance obtained for 4,281 villages.

- More than 4,000 villages have been energized till date.

- 36 of 33/11 KV new substations have been commissioned and 79 Nos. of 33/11 KV substations augmented.

- 3,859 villages have been handed over to the client.

In the Sitapur and Rae Bareilly rural electrification projects, under the same RGGVY scheme, the Division has electrified 561 villages and released more than 9,000 BPL connections till date. 5 out of 6 33/11 KV Sub stations have been augmented.

Hydro Projects

Along with the Thermal power projects, the Company is also executing Hydro Power Projects in the states of Uttarakhand and Arunachal Pradesh.

Following is the brief status of these projects:

* 4X175 MW Tato-II Hydro Electric Project

- DPR Preparation under progress by consultants, SNC Lavalin.

- Topographical survey completed.

- Geophysical survey and Geo-technical investigations under progress.

- 15 packages for Consultancy and site enabling works ordered.

- Pre-bid activities and technical evaluation for owner?s consultant completed.

- Gauge and Discharge sites established for site data measurement.

- Office-cum-guest houses established at Itanagar, along and Tato.

- V-SAT communication system and DG Set installed at Tato.

* 4X250 MW Siyom Hydro Electric Project

- Project transfer cost paid and take over of documents/physical assets being in progress.

- Detailed Project Report prepared by NHPC under review by consultant, Halcrow.

- Pre-bid activities and technical evaluation for owner?s consultant completed.

- Gauge and Discharge sites established for site data measurement.

* 4X100 MW Urthing Sobla Hydro Electric Project

- Stage-I of detailed project report along with Topographical survey completed.

- Work on Draft Chapters of Hydrology and Power Potential in progress.

- Gauge and Discharge site measurements continuing.

- DG Set installed at site office-cum guest house at Dharchula.

- Theoretical studies for reservoir sedimentation and turbine selection completed.

- Terms of Reference for Hydraulic Model Studies finalized with CWPRS.

* Letter of Intent received for following new projects in Arunanchal Project

- Mithundon (400 MW), Emini (500 MW), Amulin (420 MW).

Awards and Recognitions

Reliance Infrastructure continues to receive prestigious awards and recognitions for its outstanding performance in various fields.

The various power stations of the Company received the following awards during the year 2007-08.

Dahanu PowerStation

1. G3 Award (Good Green Governance) 2006 by Srishti Publications Private Limited

2. Golden Peacock Environment Management Award 2007

3. International Diamond Globe for Quality Award by Business Initiative Directions

4. Greentech Environmental Excellence Award 2007 5. Prime Minister's Shram Awards 2005 - Shram Shree Award for 2 employees

6. Safety Innovation Award 2007 by Institute of Engineers (India)

7. Viswakarma Rashtriya Puraskar 2006 Award for 2 Employees

8. National Safety Council-Maharashtra Chapter for achieving Longest accident free period during the year 2006

9. National Safety Council- Maharashtra Chapter for achieving Lowest accident frequency rate during the year 2006

10. "Beat the best" award by Reliance Infrastructure for overall performance during 2006-07

11. CII - National Management Award 2007

12. CII-National Award for Innovative project for Energy Efficiency 2007

13. Arch of Excellence award for Environment and Safety by All India Achievers Conference

14. Infraline Energy Excellence Award 2007

1 5. National award for Excellence in Water Management beyond the fence 2007

16. Golden Peacock National Award 2007

17. Maharashtra Energy Development Agency Award for Excellence in Energy Conservation and Management

in Thermal Power Station sector for 2006.

18. Silver Shield (National Award) for Meritorious Performance by Central Electricity Authority, Government of India for its Excellent Performance amongst Indian Thermal Power Plants in the year 2006-07

19. Golden Peacock National Award 2007 for Corporate Social Responsibility

20. International Star for Leadership in Quality Award by Business Initiative Directions (BID) at Paris

Contingent Liabilities:

Counter Guarantees given to Banks against guarantees issued by the Banks on behalf of the Company aggregate to Rs 33006.800 Millions (Rs 17954.500 Millions) [including Rs 365.000 Millions (Rs Nil) in respect of Joint Ventures],

Corporate Guarantees given to Banks and other parties aggregating Rs 27522.500 Millions (Rs 15572.500 Millions) in respect of financing facilities granted to other body corporates.

Uncalled liability on partly paid shares Rs 1 07.000 Millions (Rs 41 0680.000 Millions)

Claims against the Company not acknowledged as debts and under litigation aggregate Rs 3612.700 Millions (Rs 1 968.500 Millions) these include claim from Suppliers aggregating Rs 2598.300Millions (Rs 1 510.000 Millions), Income-tax claims Rs 907.500 Millions (Rs 342.000 Millions and Other claims Rs1 06.900 Millions (Rs 1 16.500 Millions)

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2008

Rs. In Million

Sr. No.	Particulars	3 Months ended	6 Months ended
	Particulars	30.09.2008	30.09.2008
1	(a) Net sales of Electrical Energy	20008.700	37646.000
	(b) income from EPC and contracts	4339.400	8683.200
	(C) other operating income	384.200	1306.000
	Total operating Income	24732.300	47635.200

2	Expenditure
	(a) Cost of electrical energy purchased	12177.000	22999.700
	(b) cost of fuel	3074.300	6042.200
	(C) Tax on sale of electricity	416.000	786.500
	(d) cost of material and sub –contract charges (EPC and contracts)	3313.900	6885.000
	(e) employees cost	1372.100	2617.200
	(f) depreciation	620.000	1232.200
	(g) other expenditure	1607.100	2674.500
	Total expenditure	22580.400	43237.3000

3	Profit from operations before other income (net) and interest	2151.900	4397.900
4	Other income (net)	2016.300	3119.100
5	Profit before interest	4168.200	7517.000
6	Interest and finance charges	652.800	1427.000
7	Profit from ordinary activities before tax	3515.400	6090.000
8	Provision for taxation
	Current tax	430.700	730.700
	Deferred tax	180.000	205.000
	Fringe benefit tax	15.000	30.000
	Tax adjustment for earlier years	0.000	(290.800)
9	Net profit	2889.700	5415.100
10	Paid-up equity share capital (face value of Rs. 10 per share)	2309.100	2309.1000
11	Reserves including statutory reserves excluding revaluation reserves	0.000	0.000
12	Earnings per share (not annualized)
	(a) Basic (Rs.)	124.900	233.200
	(b) Diluted (Rs.)	122.600	228.900
13	Aggregate of public shareholding
	Number of shares	145841616	145841616
	Percentage of shareholding	63.17	63.17

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. In Million

Sr. No.	Particulars	3 Months ended	6 Months ended
	Particulars	30.09.2008	30.09.2008
1	Segment Revenue
	Electrical Energy	20294.400	38758.100
	EPC and Contracts	4437.900	8877.100
	Others	-	-
	Total	24732.300	47635.200
	Less : Inter Segment Revenue	-	-
	Net Sales / Income from Operations	24732.300	47635.200

2	Segment Results
	Profit before tax and Interest from each segment
	Electrical Energy	1805.400	3679.300
	EPC and Contracts	352.700	826.700
	Others	(00.100)	(00.300)
	Total	2158.000	4505.700

	Interest and finance charges	(652.800)	(1427.000)
	Interest income	866.100	2056.800
	Other un-allocable income net of expenditure	1144.100	954.500
	Profit before tax	3515.400	6090.000

3	Capital Employed
	Electrical Energy	43916.900	43916.900
	EPC and Contracts	(8031.700)	(8031.700)
	Others	08.300	08.300
	Unallocated Corporate Assets (net)	81847.800	81847.800
	Total	117741.300	117741.300

It is in trade terms with:

· Adrash Cement Products Private Limited

· Anandji Cables

· Ashoka Udyog

· Bolton Industries

· Chadha Industries

· Comet Industries

· Conin Prakriti Instrumentation

· Dharam Industries

· Electrilite Power Private Limited

· Equip Tech Private Limited

· Colt Cable

· Power and Production

· Shakti Cables

· Saroj Dhatu Udyog

· Accucel Polytech P. Limited

· Shri Ram Industries

· Ultima Switchgears and Projects Private Limited

· Farm Fresh Foods Private Limited

· G.J.Metal Industries

· Calvano India Private Limited

· Kapco Electric Private Limited

· Kotsons Private Limited

· Krishna Electricals Industrial

· Mohindra Bedi Electrical Indus.

· Mukund Industrial Fasteners

· Paras Power Engineering Private Limited

· Polaris Cablesand Wires P Limited

· Polycab Wires Private Limited

· R.M. Industries

· Kse Electricals Private Limited Rajindra Concrete Products

· M.K. Engineers and Controls Private Limited Rajindra Prestress Concrete

· Mass Tech Conrols Private Limited Reliable Electricals

· Mohindra Bedi and Sons

· Electromech and Transtech

· Hindustan Vidyut Products Limited

· Sfiree Sainath Fibres Private Limited

· Usha Spun Pipes

· Me Machine

· Press-N.Tech Electrjcals

· Pagoda Cables Private Limited

· Alliance Engg Private Limited

· Sargir Plastics Private Limited

· Tilak Raj and Co

· Vinal Trade Links

· Anilux Coated Prod.

· Voltamp Transformer Private imited

PRESS RELEASES

NET PROFIT OF Rs 5420.000 MILLIONS (US$ 115 MILLION) FOR THE HALF YEAR AN INCREASE OF 15 %

TOTAL OPERATING INCOME OF Rs 47640.000MILLIONS (US$ 1 BILLION) FOR THE HALF YEAR - AN INCREASE OF 49 %

EPC ORDERBOOK POSITION AT Rs 207900.000 MILLIONS (US$ 4.4 BILLION) - AN INCREASE OF 340 %

COMPANY HAS CASH and LIQUID BALANCES OF Rs 101640.000 MILLIONS (US$ 2.2 BILLION)

Mumbai, October 22, 2008: Reliance Infrastructure Limited today announced its un-audited financial results for the half year ended September 30, 2008. The performance highlights are:

Total Operating Income of Rs 47640.000 Millions (US$ 1 billion), against Rs 32010.000 Millions in the corresponding period of previous year, an increase of 49 %

Net Profit of Rs 5420.000 Millions (US$ 115 million), against Rs 4720.000 Millions in the corresponding period of previous year, an increase of 15 %

Cash Profit of Rs 6850.000 Millions (US$ 146 million), against Rs 6190.000 Millions the corresponding period of previous year, an increase of 11 %

Annualised Cash Earnings Per Share (Cash EPS) of Rs 58.2 (US$ 1.2), against Rs 52.4 in the corresponding period of previous year, an increase of 11 %

Annualised Earnings Per Share (EPS) of Rs 46.6 (US$ 1), against Rs 41.3 in the corresponding period of previous year, an increase of 13 %

The Company has Rs 101640.000 Millions (US$ 2.2 billion) of cash and liquid balances as on September 30, 2008. The Company remains debt free at the net level.

As on September 30, 2008, the net worth of the company stood at Rs 117740.000 Millions (US$ 2.5 billion)

The shareholders of the company approved a buy-back of the equity shares for an amount of up to Rs 20000.000 Millions As on October 22, 2008, company has bought-back 56,60,000 equity shares aggregating Rs 6300.000 Millions (US$ 134 million), which is the highest buyback by any company in the country.

Management Discussion and Analysis

Energy Sales

The Company achieved aggregate sales of electrical energy of 49500.000 Millions units during the half year ended September 30, 2008, against 4,860million units in the corresponding period of previous year, an increase of 2%.

The Company’s aggregate revenues from energy sales were Rs 37650.000 Millions (US$ 802 million) compared to Rs 254.500 Millions in the corresponding period of previous year, an increase of 48 %.

During the period under review, the customer base in Mumbai Supply area increased by .0.050 Millions to 2.650 Millions customers.

Power Generation

Dahanu Thermal Power Station (DTPS)

During the period under review, the Company’s Dahanu Thermal Power Station achieved a Plant Load Factor (PLF) of 103.3 %, against the PLF of 99.1 % achieved during the corresponding period of previous year. The Station generated 2,270 million units during the period.

Samalkot Power Station, Andhra Pradesh

During the half year ended September 30, 2008, the Samalkot Power Station achieved a Plant Load Factor (PLF) of 51.6 %, against the PLF of 66.2 % achieved during the corresponding period of previous year due to non-availability of sufficient gas. The station generated 500million units against 640 million units in the corresponding half of previous year.

Goa Power Station

During the period under review, the Goa Power Station achieved a Plant Load Factor (PLF) of 89.5 %, against the PLF of 79.3 % achieved during the previous year.

Windfarm Power Project

During the period under review, the wind farm achieved a Plant Load Factor (PLF) of 42%, against the PLF of 46 % achieved during the corresponding period

Power Purchased

During the period under review, the company purchased 27760.000 Millions units of electrical energy from external sources, which is higher by 6 % compared to the off-take in the corresponding period of previous year.

The cost of energy purchased increased by 74% to Rs 23000.000 Millions (US$ 490 million) during the period under review, owing to increase in units purchased as well as higher per unit cost.

Financial Review

The total sales of electrical energy during the half year ended September 30, 2008 were Rs 37650.000 Millions (US$ 802 million), against Rs 25450.000 Millions in the corresponding period of previous year, an increase of 48 %.

The turnover of the EPC Division for the half year ended September 30, 2008 was Rs 8680.000 Millions (US$ 185million) against Rs 6210.000 Millions in the corresponding previous period. The division had a record order book position of about Rs 207900.000 Millions (US$ 4.4 billion) as on September 30, 2008, as against Rs 47180.000 Millions in the corresponding period of previous year, an increase of over 340%.

Other Income for the half year was Rs 3120.000 Millions (US$ 66 million) as against Rs 4460.000 Millions in the corresponding period of previous year.

During the period under review, the total operating income of the company was Rs 47640.000 Millions (US$ 1 billion), against Rs 32010.000 Millions in the corresponding half of previous year, an increase of 49 %.

The Company's Earnings before Interest, Depreciation and Tax (EBIDT) was Rs 8750.000 Millions (US$ 186 million) during the period, against Rs 8370.000 Millions in the corresponding half of previous year.

Depreciation was at Rs 1230.000 Millions (US$ 26 million) as against Rs 1140.000 Millions for the corresponding half of previous year.

The corporate tax liability, including the deferred taxes, for the half year ended September 30, 2008 was Rs 670.000 Millions(US$ 14 million), as against Rs 970.000 Millions in the corresponding half of previous year.

Net Profit for the half year ended September 30, 2008 recorded an increase of 15 % to Rs 5420.000 Millions (US$ 115 million) from Rs 4720.000 Millions in the corresponding half of previous year.

During the period under review, the annualised cash earnings per share (CEPS) was Rs 58.2, an increase of 11 %.

Annualised Earnings Per Share (EPS) for the half year ended September 30, 2008 was Rs 46.6 an increase of 13 %.

EPC Business

The division had a record order book position of about Rs 20,7900.000 Millions (US$ 4.4 billion) as on September 30, 2008, as against Rs 47180.000 Millions in the corresponding half of previous year, an increase of over 340 %.

Currently working on multiple projects and implementing over 6,500 MW of power projects as:

Electrification of 6,715 villages under Uttar Pradesh rural electrification scheme – 80% villages has been handed over
2X600 MW of power project in Hisar, Haryana - Overall progress of 50% achieved
2X250 MW Parichha Thermal Power Station, Uttar Pradesh - BOP
2X600 MW Purulia project, Damodar Valley Corp.
Western Region System Strengthening (WRSS) transmission project
6 X 660 MW Sasan UMPP by Reliance Power

Transmission

Both the projects, WRSS and Parbati and Koldam have been won on competitive bidding basis.

Project Name	Project Cost (Rs millions)	Share-holding
Western Region Strengthening Scheme (WRSS)	14000.000	100%
Transmission lines Parbati and Koldam in HP	7500.000	R Infra -74% PGCIL-26%
Strengthen Mumbai Transmission Network	18000.000	100%

The EPC contract of WRSS has already been awarded to EPC division of Subject.

Set up a JV with Power Grid Corporation Limited, known as the Parbati Koldam Transmission Company Limited, to install 300-km-long transmission lines for Parbati and Koldam projects in Himachal Pradesh.

Transmission license for the corridor has been received
Initiated the discussion with vedors for placement of orders.
This company will shortly commence construction of the project.

· Received all regulatory approval to strengthen Mumbai transmission network through implementation of multiple projects. These projects are under implementation and are expected to be completed over next 3 years. These projects will give regulatory returns.

Energy Trading Business

The division has traded 626.000 million units in the half year as compared to 375 .000 million units in corresponding period of previous year, an increase of 67%.

The division has started operations through the First Energy Exchange of India (IEX) and traded 80 million units in the quarter ended September 30, 2008.

The division has signed various medium term power trading contracts for assured 1,800 million units during the coming years.

Infrastructure Business

The Company is implementing the following infrastructure projects:

Roads

Developing 5 road projects in Tamil Nadu - These projects make Reliance Infrastructure, as the largest concessionaire of road projects for NHAI on BOT basis. The details of each project are presented below:

Project	Length (km)	Cost (Rs Millions)	Grant (Rs Millions)	Concession Period*	COD
Namakkal Karur (NK Toll Project)	44	3450.000	240.000	20 years	Jan, 2009
Dindigul Samyanallore (DS Toll Project)	53	4150.000	310.000	20 years	Jan, 2009
Trichy Karur (TK Toll Project)	80	7550.000	1480.000	30 years	July, 2010
Trichy Dindigul (TD Toll Project)	88	5600.000	2260.000	30 years	July, 2010
Salem Ulenderpet (SU Toll Project)	136	10830.000	3660.000	25 years	July, 2010
Total	401	31580.000	7950.000

Some of the major mile stones achieved in Road projects are:

· NK Toll and DS Toll projects have achieved 75% completion. The projects are scheduled to be completed by end of January, 2009 with tolling revenue to commence immediately.

· For other 3 projects - Engineering designs has been completed and construction work is in full swing

Metro

Developing 2 metro rail projects in Mumbai and Delhi. The company is implementing both the MRTS Projects awarded in India under Competitive bidding till date, by separate SPV’s named “Mumbai Metro One Private Limited” (MMOPL) and “Delhi Airport Metro Express Link Private ” (DAMEPL). The details of the two projects are:

Project

Project Cost

(Rs Millions)

Length (Km)

Corridor

Concession Period*

COD

Mumbai Metro I

24000.000

Versova – Andheri – Ghatkopar

35 Years

Sep, 2010

Airport Metro Express Line – Delhi

25000.000

New Delhi Railway Station - IGI Airport – Dwarka

30 Years

July, 2010

Some of the major mile stones achieved in Mumbai Metro are:

· Financial Closure for complete debt of Rs 12000.000 Millions has been successfully completed. IDBI Bank is the lead arranger for the loan.

· All major contracts like Signalling, Rolling Stock, Civil works, Communication system, Traction and Power supply has been awarded.

· Right of Way (ROW) for 7.5 km of alignment has been obtained including most critical DN Nagar depot land.

· 6 kms of total alignment has been barricaded and 150 piles have already been completed.

· Civil work is under progress at multiple locations at Andheri, Chakala, Airport Road, Sakinaka and Ghatkopar stations.

Some of the major mile stones achieved in Delhi Metro are:

· Major contracts like Rolling Stock, Signalling, Traction and Power supply has been awarded.

· All Preliminary design and engineering work has been completed.

· Civil structures for the project will be provided by DMRC progressively section wise on the completion of the respective sections.

· The most critical Depot land is anticipated to be handed over by mid of November, to commence construction by December.

· Initiated discussion with Axis Bank for financial arrangements.

Real Estate

· Developing Trade Tower of 100 storeys and Commercial Business District (CBD) in Hyderabad under an SPV named “CBD Tower Pvt. Limited.”, with equity participation from Reliance Infrastructure Limited and associates (89%) and APIIC(11%).Following are the project highlights:

India’s tallest tower with 100 floors, totaling around 7 mn sqft of office space along with an additional 18 mn sqft in the commercial business district (CBD) around it.
Initiated discussions with the leading banks for the financial arrangements.

Detailed master planning, architecture and landscaping exercise has been initiated and construction is expected to start in next financial year.

Located 6 kms from Hyderabad Airport on the proposed outer ring road

· Developing IT/ITES SEZ at Dhirubhai Ambani Knowledge City (DAKC), Navi Mumbai over 45 acres of land with a saleable area of 4 million sqft. It’s a high tech office space along with a 4 star lakeside hotel and support retail facilities. Following are some of the project highlights:

Notification process has been initiated and expected by the end of financial year.

Land is already in possession as it is owned by Group Company. Development and operations would be done under separate SPV.

Detailed market study for determining the best use development mix has already been completed. The master planning, architecture and landscaping exercise is being initiated.

Company expects to finalize the EPC contractors and start construction in the next financial year and complete the first phase in next 2 years

Delhi Distribution

This is a year of strong operating performance by Delhi Discoms with significant improvement across all parameters when compared to same period last year.

Sales in H1FY09 have increased by 7% and 13% for BRPL and BYPL whereas power purchase has decreased by 3% and 1.5% respectively leading to dramatic reduction in TandD losses. With this high performance both BSES discoms would earn incentives this year. BYPL has already exceeded targets and is in incentive zone since last year.

We have appealed before ATE regarding disallowances of Capex, capitalization and other expenses by DERC for amount aggregating to Rs 2,000 cr. (approx.) Matter is expected to be heard shortly.

BACKGROUND

Reliance Infrastructure Limited

Reliance Infrastructure, a part of Reliance - Anil Dhirubhai Ambani Group, is India's leading private sector Infrastructure and Utility Company.

The Reliance Anil Dhirubhai Ambani Group currently has a market capitalization of over Rs 1200000.000 Millions

net worth in excess of Rs 580000.000 Millions, cash flows of Rs 120000.000 Millions net profit of Rs 8,000 crore and zero net debt.

The Company is ranked amongst India’s top 25 listed private companies in terms of all major financial parameters, including assets, sales, net worth, profits and market capitalisation.

Reliance Energy - Mumbai Police to Host Free Medical Camp at Kurla

Mumbai, August 11, 2005: Reliance Energy in association with Mumbai Police has organized a free medical camp at Kurla on Friday Aug. 12 to provide relief to the people of the area that was ravaged by last week’s rain and the subsequent flood. The camp will be held at the Central Board for Workers’ Education Campus near Kurla Court on the LBS Road from 9 am onwards.

Besides general check up, the camp will also provide free ophthalmic, orthopedic, pediatric and ENT check up facility. Medicine prescribed by attending doctors will be provided free too. Those requiring further treatment will be given free treatment at the company’s BSES – MG Hospital at Andheri (West).

This is the second camp that the power utility has organized in the aftermath of the calamity that hit the city on July 26. The first one at Kalina on Aug. 7 had elicited tremendous response with 3,300 people receiving treatment from fifteen specialist doctors. The Kurla camp will have 20 specialist doctors from reputed city hospitals.

As part of its humanitarian gesture, the company has already distributed 10,000 food packets and 5,000 bed sheets and blankets.

Reliance Energy Limited

Reliance Energy Limited , a member of the Anil Dhirubhai Ambani Enterprises Group, is India’s leading private sector utility company, with aggregate estimated revenues of Rs 95000.000 Millions (US $ 2.2 billion) and total assets of Rs.10 7000.000 Millions (US $ 2.4 billion).

It generates 941 MW of power through its power plants located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa and distributes over 21 billion units of power to over 5 million consumers in Mumbai, Delhi, Orissa and Goa over an area spanning 1,24,300 square kilometers.

It is among India’s top 20 listed private companies in terms of all major financial parameters including assets, sales, profits and market capitalization.

Medical Relief by Reliance Energy -

Company Hosts Free Medical Check Up Camp for People in the Flood Hit Areas of Mumbai Suburbs.

Mumbai, August 7, 2005: Reliance Energy had hosted a free medical check up camp for people in flood hit areas of Kurla and Kalina at the Community Centre Hall, Old Air India Colony, Kalina, Santa Cruz (East), Mumbai – 400 055 today on Sunday, the 7th August 2005 from 9.00 a.m. onwards. The Camp was hosted in association with the Mumbai Police.

Around 3298 patients from the surrounding localities visited the camp and availed the benefit.

Apart from the free general medical check up, free check up facilities for Ophthalmic, Orthopedic, Pediatric and E. N. T. problems were also provided for the people with the help of 15 specialist doctors from the various hospitals of repute all over the city.

As prescribed by the specialists, Company provided free medicines to the people, who visited the camp. In addition, Company also recommended some of the patients for the further medical treatment at its own medical facility, i.e., BSES – MG Hospital, Andheri (West).

REL had hosted this camp as a part of its continuous process to help the needy people in the worst hit areas of Kurla and Kalina. The Company had already distributed around 10000 Food Packets and 5000 Bed sheets and Blankets sets in the surrounding areas of Kurla and Kalina earlier in this week.

Reliance Energy Limited

Reliance Energy Ltd., a member of the Anil Dhirubhai Ambani Enterprises Group, is India’s leading private sector utility group, with aggregate estimated group revenues of Rs 95000.000 Millions (US $ 2.2 billion) and total assets of Rs.10 7000.000 Millions (US $ 2.4 billion).

The group distributes more than 21 billion units of power to over 5 million consumers in Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 sq. kms.

REL restores power in all flood-hit homes

Thursday, 04 August , 2005, 16:28

Reliance Energy Limited has announced that in a massive operation under the most trying conditions, the Company that supplies power to North Mumbai suburbs on August 04, 2005 has successfully restored normal power supply to all residential areas affected by the century's worst downpour on the city.

The Company deployed its men and machinery on a war footing to restart all its transformers. Areas like Saki, Kurla and Kalina had been badly affected due to last week's heavy flooding and remained inaccessible for any repairs to be carried out.

The Company, however, managed to switch on a maximum number of transformers in these areas in the shortest possible time by working relentlessly. All the flood-hit areas that suffered power cuts due to the natural calamity now have normal supply.

The Company was compelled to switch off power supply in the waterlogged areas as a safety precaution and to avoid electrocution. In fact, several alert users made appeals to the Company Call Centre and officials to switch off power as water levels began to rise. It may be noted that not a single case of electrocution has been reported due to above factors.

The Company's Operation Restoration has been severely hampered by non-stop heavy downpour, water-logging and slush accumulation, which made the areas inaccessible and even dangerous for the entire week. The transformers took a very long time to dry due to the continuous rains and absence of sunshine for over five days. Continuous ambient humidity on all electric supply equipment posed compounded risk to the company's engineers and workers.

Even though the water may have appeared to recede in some areas, unexpected cable faults of underground cabling was another factor which severely hampered repair work. Any attempt to switch on power under such circumstances would have resulted in human disaster.

It was also humanly impossible to reach out to and then work for several hours and days together in affected areas that had collected mounds of garbage and animal carcasses spreading intolerable stench.

Moreover, many Company's teams, which managed to reach the waterlogged areas to carry out repairs despite all these challenges, were subjected to physical intimidation and violence. The speed of operation restoration' was further disrupted as elements from different places 'hijacked' the Company's teams under threat, to attend to their problem areas first.

Despite all these impediments and challenges, the Company's teams have demonstrated immense courage and commitment, fulfilling the gigantic task of restoring power with a missionary zeal.

The Company wishes to thank all authorities and valued customers for their support during these very trying times for the city.

REL continues to redress power supply related complaints

amidst continued attacks on its employees

Mumbai, 13th July, 2006: REL employees have been making valiant attempts to attend to repairs and maintenance work and consumer complaints amidst continued rein of unrest and vandalism being unleashed by a group of miscreants in the Malad, Dindoshi and Kandivali areas. Led by one Mr. SG Kanade, an ex-employee of REL, the group has been obstructing repair works, threatening staff and officers and even assaulting and manhandling the maintenance teams in the field. For the last few days, REL teams have been attending to consumer complaints under police and security cover, which is leading to delayed restoration of supply and redressal of consumer complaints. REL’s endeavor has received appreciable support from large number of consumers and several electrical contractors who have come forward to help the maintenance crew on duty. They are proud of their employees and grateful to their consumers and electrical contractors for braving the situation together with us”, said an REL spokesperson. REL was all praise for the police authorities who have been helping them despite the precarious law and order situation in the metro” REL has further appealed to the consumers in the aforesaid areas to bear immediately inform any untoward incidence or any kind of suspicious movement that they may notice taking place near their electrical installations on power helpline 3030 3030 or 3009 7222 or 3009 7223. While the police are on the look out for the suspected miscreants, REL has apprised the Government of Maharashtra of the prevailing situation and is hopeful of a swift action in this matter.

Techno savvy REL goes high-tech further.

The State Minister for Energy, Shri Dilip Valse Patil inaugurates

REL’s advanced, state of the art SCADA system.

Mumbai suburban consumers to get power supply at higher reliability and quality.

“New SCADA system is aimed at faster response time to locate,isolate cable fault and restore power supply”, Says REL.

Mumbai, June 15, 2006: In line with its new corporate brand identity and the theme, think bigger … think faster and moving upward towards new heights of excellence and success in all its operations and affairs, Reliance Energy, the energy giant and lead power supplier in Mumbai suburbs, has now gone high-tech further. Shri Dilip Valse – Patil, State Minister for Energy, today inaugurated REL’s state of the art, most advanced Supervisory Control And Data Acquisition (SCADA) System at Company’s 220kV Receiving Station in Aarey Colony. With this, the Company has added one more feather in the crown of achievements and moved a step ahead in its mission of serving its customers better. The SCADA system installed by REL at its Master Control Room at Aarey is the state of art, advanced SCADA system comparable with the best in the world. The commissioning of this advanced system will now enable REL to serve its 2.5 million consumers in its distribution are of 384 sq. kms. in Mumbai suburbs with more reliability level even than the present level of around 99%. Reliable and quality power supply to Mumbai metropolis, being financial capital of the nation, is a key component in its development and growth. Mumbai Suburbs are growing faster with residential and commercial developments, which include huge residential complexes, IT and Software parks, malls, large multiplex theatres etc. REL, being a lead power supplier for over seven decades, has to play a role of immense importance in these developments. To ensure reliable power supply, during normal and abnormal conditions, it is pertinent to adopt advanced technology to facilitate transfer of power right from the sources of generation through transmission to end users. One of the tools to be used in this process is the advanced state of the art SCADA system. New advanced state of the art SCADA (Supervisory Control And Data Acquisition) System installed by REL is the most important tool that monitors the operations of entire distribution network from a central location and takes appropriate action to maintain supply under normal conditions and facilitates quick restoration of power supply in case of breakdowns. The newly installed SCADA system consists of cluster of computers that receive data from distribution network over dedicated communication channel. The operators in SCADA control room can monitor every aspect of the state of power network and take appropriate action so that in case of emergencies, the continuity and reliability of supply to Mumbai is maintained. Shri Dilip Valse Patil, State Minister for Energy and Chief Guest for the function, while speaking on the occasion, complemented REL for making available the world class state of the art new SCADA system for Mumbai suburban consumers and expressed his wishes that REL will endeavour to bring such kinds of advanced technologies for serving consumers much better in future. Shri Bhagwan Sahay, Energy Secretary of GoM, who presided over the function also praised REL for efforts taken in making available such a world class SCADA system for Mumbai suburban consumers.

Various dignitaries from MSEB and its unbundled companies; officials from PWD’s electrical wing; ABB Ltd., who supplied the SCADA system to REL and officers and employees of REL at large graced the occasion with their presence. REL Spokesperson, on the occasion said, “They are techno savvy entity and therefore in future too will continue to endeavour to introduce various world class technologies in their operations to serve their consumers better.” He further added, “The new SCADA system is aimed at ensuring faster response time to locate, isolate cable fault and restore power supply.” Benefits of REL’s New state of the art integrated SCADA System: Single Integrated SCADA system for generation, transmission and distribution network with centralised control & monitoring. Visibility of entire 220 kV network at central location. Islanding scheme based on real time data during contingencies.

Operational flexibility for load shedding requirements at Central location for existing and proposed 220 kV stations Monitoring of equipment overloading. Faster response time to locate, isolate fault and restore supply. Implementation of Distribution Management System application for secondary network feasible to integrate with other business processes.

Quality & reliable power supply for consumers. On line control. Archived data helps in improvement and planning the system. Most flexible system Reduction in losses and trouble call management helps in serving the consumers more efficiently Customer satisfaction.

Reliance Energy Limited:

Reliance Energy Limited, incorporated in 1929, is a fully integrated utility engaged in the Generation, Transmission and Distribution of electricity. It ranks among India’s top listed Private companies on all major financial parameters, including assets, sales, profits and Market Capitalization.

A constituent of the Reliance – Anil Dhirubhai Ambani Group, Reliance Energy is India’s foremost private sector utility with aggregate estimated revenues of Rs 95000.000 Millions (US$ 2.1 billion) and total assets of Rs 107000.000 Millions (US$ 2.4 billion). Reliance Energy distributes more than 21 billion units of electricity to over 25 million consumers in Mumbai, Delhi, Orissa and Goa, across an area that spans 1,24,300 sq. kms. It generates 941 MW of electricity, through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa. Reliance Energy is currently pursuing several gas, coal, wind and hydro-based power generation projects in Maharashtra, Uttar Pradesh, Arunachal Pradesh and Uttaranchal with aggregate capacity of over 12,500 MW. These projects are at various stages of development. Reliance Energy is vigorously participating in emerging opportunities in the areas of trading and transmission of power. It is also engaged in a portfolio of services in the power sector in Engineering, Procurement and Construction (EPC) through a network of regional offices in India.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.32
UK Pound	1	Rs.74.20
Euro	1	Rs.60.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

MIRA INFORM REPORT

3002.900

13514.100

876.500

6455.800

66365.300

90214.600

25993.800

7784.300

33778.100

56436.500

Unit