MIRA INFORM REPORT

Report Date :

04.10.2011

IDENTIFICATION DETAILS

Name :	NORTH DELHI POWER LIMITED (w.e.f. July 2002)
Formerly Known As :	NORTH NORTH- WEST DELHI DISTRIBUTION COMPANY LIMITED
Registered Office :	NDPL House, Hudson Lines, Kingsway Camp, Delhi-110009
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.07.2001
Com. Reg. No.:	55 – 111526
Capital Investment/ Paid-up Capital:	Rs. 5520.000 Millions
CIN No.: [Company Identification No.]	U40109DL2001PLC111526
TAN No.: [Tax Deduction & Collection Account No.]	DELN05225D
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Subject is engaged in the business of distribution of electricity.
No. of Employees:	2500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 62340000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a Joint Venture between Tata Power Company Limited and Delhi Government (Delhi Power Company Limited). The company has been promoted by strong and experienced promoters having large means. Financial position is good. Trade relations are reported as fair. Payments are reported to be usually correct. The company can be considered good for normal dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. Hemant Goyal
Designation :	AGM- Finance
Contact No.:	91-11-66233330
Date :	01.10.2011

LOCATIONS

Registered Office :	NDPL House, Hudson Lines, Kingsway Camp, Delhi-110009, India
Tel. No.:	91-011-27468027/ 66112222
Fax No:	91-11-27468042
E-Mail :	ajay.kalsie@ndpl.com hemant.goyal@ndpl.com
Website:	www.ndplonline.com www.ndpl.com http://www.ndpl.comn
Area :	10000 sq.ft.
Location :	Owned

DIRECTORS

As on 31.03.2011

Name :	Mr. Adi Jehangir Engineer
Designation :	Chairman
Address :	Flat A – 8 Sali Soury Apartments, Ahura Co operative Housing Society, Salisbury Park, 66/2, Gultekdi, Pune – 411 037, Maharashtra, India.
Date of Birth/Age :	27.08.1937
Date of Appointment :	01.07.2002
DIN No:	00016320

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U63020MH1970PLC014572	CHEMICAL TERMINAL TROMBAY LIMITED	Director	01-10-99	01-10-99	-	Active	NO
2	U26933KL1991PLC006018	TATA CERAMICS LIMITED	Nominee director	06-10-00	06-10-00	13-09-07	Active	NO
3	U45200MH1921PLC000866	THE ASSOCIATED BUILDING COMPANY LIMITED	Director	10-10-00	10-10-00	-	Active	NO
4	U11100MH1993PLC134095	TATA PETRODYNE LIMITED	Director	30-03-01	30-03-01	20-06-07	Active	NO
5	U45203AP1979PLC057431	TATA PROJECTS LIMITED	Director	27-06-01	27-06-01	-	Active	NO
6	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Nominee director	01-07-02	01-07-02	-	Active	NO
7	L28920MH1919PLC000567	THE TATA POWER COMPANY LIMITED	Director	19-11-03	19-11-03	-	Active	NO
8	U40106KA1989PLC034989	TATA BP SOLAR INDIA LIMITED	Director	20-07-06	20-07-06	-	Active	NO
9	L31300MH1967PLC016531	FINOLEX CABLES LIMITED	Director	23-10-07	23-10-07	-	Active	NO

Name :	Mr. Sunil Kumar Wadhwa
Designation :	Managing Director
Address :	1/19 II Floor, Sarvapriya Vihar, New Delhi – 110 016, India.
Date of Birth/Age :	13.01.1960
Date of Appointment :	01.08.2010
DIN No:	00259638

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Managing director	01-08-10	01-11-05	-	Active	NO
2	U40100MH2003PLC143770	TATA POWER TRADING COMPANY LIMITED	Director	25-06-08	07-08-07	-	Active	NO
3	U40105DL2001PLC110714	POWERLINKS TRANSMISSION LIMITED	Director	27-05-09	11-10-08	-	Active	NO

Name :	Mr. Padmanbhan Sankaranarayanan
Designation :	Director
Address :	132, Apsara NCPA Complex, D Tata Road, Nariman Point, Mumbai-400021, Maharashtra, India
Date of Birth/Age :	15.05.1958
Date of Appointment :	18.07.2008
DIN No:	00306299

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72400MP2006PLC018777	MP Online Limited	Nominee director	27-09-07	11-07-06	12-08-08	Active	NO
2	L22210MH1995PLC084781	TATA CONSULTANCY SERVICES LIMITED	Whole-time director	06-09-07	06-09-07	06-02-08	Active	NO
3	L28920MH1919PLC000567	THE TATA POWER COMPANY LIMITED	Director	10-09-08	06-02-08	-	Active	NO
4	U40100MH2003PLC143770	TATA POWER TRADING COMPANY LIMITED	Director	25-06-08	22-04-08	-	Active	NO
5	U74999MH2007PLC167623	INDUSTRIAL ENERGY LIMITED	Director	23-05-08	23-05-08	-	Active	NO
6	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Director	20-05-09	18-07-08	-	Active	NO
7	U63020MH1970PLC014572	CHEMICAL TERMINAL TROMBAY LIMITED	Director	29-05-09	25-07-08	-	Active	NO
8	U40105DL2001PLC110714	POWERLINKS TRANSMISSION LIMITED	Director	27-05-09	11-10-08	-	Active	NO

Name :	Dr. Homiar Sorabji Vachha
Designation :	Independent Director
Address :	Flat No. 9, Naroji House, Naigaum Cross Road, Dadar, Mumbai-400014, Maharashtra, India
Date of Birth/Age :	23.04.1942
Date of Appointment :	03.01.2009
DIN No:	00016610

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L31300MH1967PLC016531	FINOLEX CABLES LIMITED	Director	11-06-93	11-06-93	-	Active	NO
2	U24100MH1980PTC022617	BO-CHEM PRIVATE LIMITED	Director	25-07-97	25-07-97	01-04-10	Active	NO
3	U26933KL1991PLC006018	TATA CERAMICS LIMITED	Director	08-02-99	08-02-99	-	Active	NO
4	U65990MH1979PLC021037	AF-TAAB INVESTMENT COMPANY LIMITED	Director	25-11-99	25-11-99	-	Active	NO
5	L28920MH1919PLC000567	THE TATA POWER COMPANY LIMITED	Director	30-03-01	30-03-01	-	Active	NO
6	U51900MH1962PLC012528	TATA INTERNATIONAL LIMITED	Director	28-11-03	28-11-03	-	Active	NO
7	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Director	20-05-09	03-01-09	-	Active	NO
8	U51102TN1996PLC034121	GRAZIELLA SHOES LIMITED	Director	17-09-10	30-03-09	-	Active	NO
9	U18209TN1997PLC037515	BACHI SHOES LIMITED	Additional director	24-12-10	24-12-10	-	Active	NO

Name :	Mr. Sowmyan Ramkrishnan
Designation :	Director
Address :	A – 701 NCPA Apartment, Nariman Point, Mumbai – 400 021, Maharashtra, India
Date of Birth/Age :	18.02.1949
Date of Appointment :	20.05.2009
DIN No:	00005090

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U45203AP1979PLC057431	TATA PROJECTS LIMITED	Director	14-07-87	14-07-87	25-09-08	Active	NO
2	U99999MH1942PLC003573	TATA HOUSING DEVELOPMENT COMPANY LIMITED	Director	25-03-94	25-03-94	13-09-10	Active	NO
3	L32200MH1986PLC040652	AGC NETWORKS LIMITED	Director	15-10-01	15-10-01	21-05-11	Active	NO
4	L28920MH1919PLC000567	THE TATA POWER COMPANY LIMITED	Whole-time director	01-10-09	01-10-04	-	Active	NO
5	U40105DL2001PLC110714	POWERLINKS TRANSMISSION LIMITED	Nominee director	03-12-04	03-12-04	25-09-08	Active	NO
6	U65990MH1979PLC021037	AF-TAAB INVESTMENT COMPANY LIMITED	Director	15-12-04	15-12-04	-	Active	NO
7	U40100MH2003PLC143770	TATA POWER TRADING COMPANY LIMITED	Director	28-12-04	28-12-04	-	Active	NO
8	L32200MH1940PLC003164	NELCO LIMITED	Director	31-10-05	31-10-05	-	Active	NO
9	U74899DL2000PLC106999	MAITHON POWER LIMITED	Director appointed in casual vacancy	25-04-11	30-11-05	-	Active	NO
10	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Director	23-07-10	15-12-05	-	Active	NO
11	L28932PN1990PLC016314	AUTOMOTIVE STAMPINGS AND ASSEMBLIES LIMITED	Director	29-12-05	29-12-05	27-01-10	Active	NO
12	U74999MH2007PLC167623	INDUSTRIAL ENERGY LIMITED	Director	07-02-07	07-02-07	23-05-08	Active	NO
13	U74999MH2007PLC168291	INDUSTRIAL POWER UTILITY LIMITED	Additional director	25-07-11	01-03-07	-	Active	NO
14	U40108MH2007PLC168314	Tata Power Renewable Energy Limited	Director	20-06-11	02-03-07	-	Active	NO
15	U40102MH2006PLC182213	Coastal Gujarat Power Limited	Director	07-08-07	22-04-07	-	Active	NO
16	U40106KA1989PLC034989	TATA BP SOLAR INDIA LIMITED	Alternate director	30-04-11	28-07-09	-	Active	NO
17	U40108MH2011PLC211851	TATA POWER GREEN ENERGY LIMITED	Director	05-01-11	05-01-11	25-05-11	Active	NO

Name :	Mr. Praveen Kumar Tripathi
Designation :	Director
Address :	E1/2 Satya Marg, Satya Sadan, Chanakyapuri, New Delhi-110021, India
Date of Birth/Age :	15.12.1952
Date of Appointment :	10.02.2010
DIN No.:	02167497

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U60232DL2006PLC148406	DELHI INTEGRATED MULTI MODAL TRANSIT SYSTEM LIMITED.	Nominee director	23-06-11	31-03-08	-	Active	NO
2	U74899DL1975PLC008007	DELHI TOURISM AND TRANSPORTATION DEVELOPMENT CORPORATION LIMITED	Managing director	20-01-09	20-01-09	28-04-11	Active	NO
3	U92322DL2008NPL177534	SHAHJAHANABAD REDEVELOPMENT CORPORATION	Director	02-04-11	18-02-09	-	Active	NO
4	U74899DL2001PLC111525	BSES YAMUNA POWER LIMITED	Nominee director	25-01-10	25-01-10	-	Active	NO
5	U74899DL2001PLC111527	BSES RAJDHANI POWER LIMITED	Nominee director	25-01-10	25-01-10	-	Active	NO
6	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Nominee director	23-07-10	10-02-10	-	Active	NO
7	U74899DL1980PLC011040	DELHI STATE CIVIL SUPPLIES CORPN LTD	Director	10-02-11	10-02-11	-	Active	NO
8	U85191DL2008SGC178367	GEOSPATIAL DELHI LIMITED	Nominee director	04-04-11	14-02-11	-	Active	NO
9	L24232DL1988PLC030958	INDRAPRASTHA MEDICAL CORPORATION LIMITED	Director	14-09-11	12-05-11	-	Active	NO
10	U74899DL2001SGC109135	PRAGATI POWER CORPORATION LIMITED	Nominee director	13-05-11	13-05-11	-	Active	NO
11	U40103DL2001SGC111530	INDRAPRASTHA POWER GENERATION COMPANY LIMITED	Nominee director	13-05-11	13-05-11	-	Active	NO
12	U40103DL2001SGC111529	DELHI TRANSCO LIMITED	Managing director	13-05-11	13-05-11	-	Active	NO
13	U74899DL1995GOI068150	DELHI METRO RAIL CORPORATION LIMITED	Nominee director	30-06-11	30-06-11	-	Active	NO
14	U37100DL2006PLC146456	INDRAPRASTHA ENERGY AND WASTE MANAGEMENT COMPANY LIMITED	Director	12-08-11	30-06-11	-	Active	NO

Name :	Mr. Anil Kumar Sardana
Designation :	Additional Director
Address :	15, Gagan Vihar, New Delhi-110051, India
Date of Birth/Age :	16.04.1959
Date of Appointment :	08.03.2011
DIN No:	00006867

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U40100MH2003PLC143770	TATA POWER TRADING COMPANY LIMITED	Director	28-12-04	28-12-04	18-10-07	Active	NO
2	U74899DL2000PLC106999	MAITHON POWER LIMITED	Director appointed in casual vacancy	25-04-11	30-11-05	-	Active	NO
3	L28920MH1919PLC000567	THE TATA POWER COMPANY LIMITED	Director	24-08-11	01-03-07	-	Active	NO
4	U40109DL2001PLC111526	NORTH DELHI POWER LIMITED	Director	05-08-11	14-03-07	-	Active	NO
5	U40102MH2006PLC182213	Coastal Gujarat Power Limited	Director	07-08-07	22-04-07	-	Active	NO
6	U74999MH2007PLC167623	INDUSTRIAL ENERGY LIMITED	Nominee director	22-05-07	22-05-07	18-10-07	Active	NO
7	U74899DL1995PLC066685	TATA TELESERVICES LIMITED	Director	01-02-11	03-08-07	12-05-11	Active	NO
8	L64200MH1995PLC086354	TATA TELESERVICES (MAHARASHTRA) LIMITED	Director	31-01-11	12-03-08	19-05-11	Active	NO
9	U72200AP2004PLC042926	VIOM NETWORKS LIMITED	Director	09-09-10	06-10-09	28-01-11	Active	NO
10	L31102MH1964PLC013011	EMCO LIMITED	Director	25-08-10	27-01-10	14-01-11	Active	NO
11	U64202DL2007PLC223153	Viom Infra Networks (Maharashtra) Limited	Director	30-09-10	21-09-10	28-01-11	Active	NO
12	U65990MH1979PLC021037	AF-TAAB INVESTMENT COMPANY LIMITED	Director appointed in casual vacancy	09-02-11	09-02-11	-	Active	NO

Name :	Mr. D. M. Spolia
Designation :	Additional Director
Date of Appointment :	01.06.2011
Name :	Dr. M. M. Kutty
Designation :	Director
Date of Appointment :	01.06.2011
Name :	Mr. Arvind Ray
Designation :	Additional Director
Date of Appointment :	01.06.2011
Name :	Mr. R. K. Srivastava
Designation :	Additional Director
Date of Appointment :	01.06.2011

KEY EXECUTIVES

Name :	Mr. Hemant Goyal
Designation :	AGM- Finance
Email:	hemant.goyal@ndpl.com
Name :	Mr. Ajay Kalsie
Designation :	Secretary
Address :	A/9, 65A, Gomti Apartments, Kakaji Extension, New Delhi-110019, India
Date of Birth/Age :	08.03.1968
Date of Appointment :	01.05.2007
PAN No:	ABDPK5945J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.07.2010

Names of Shareholders	No. of Shares
The Tata Power Company Limited, Maharashtra, India	281519994
Delhi Power Company Limited, Delhi, India	270479996
The Tata Power Company Limited Jointly with Engineer Jehangir Adi	1
The Tata Power Company Limited Jointly with Gupta Sujit	1
The Tata Power Company Limited Jointly with Sardana Kumar Anil	1
The Tata Power Company Limited Jointly with Wadhwa Sunil	1
The Tata Power Company Limited Jointly with Ramakrishnan Swomyan	1
Chief secretary government of National Capital Territory of Delhi, India	1
Principal Secretary Finance Government of National Capital Territory of Delhi, India	1
Principal Secretary Home Government of National Capital Territory of Delhi, India	1
The Tata Power Company Limited jointly with Kapoor Ajay	1
Secretary Power Government of National Capital Territory of Delhi, India	1
Total	552000000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010 Category	Percentage of Holding
Government Companies	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of distribution of electricity.

GENERAL INFORMATION

No. of Employees :

2500 (Approximately)

Bankers :

• State Bank of Mysore, Corporate Accounts, Branch No.3, 4 and 5, DDA Building, Nehru Place, New Delhi – 110019, India
• Allahabad Bank, H-12, Green Park Extension, New Delhi – 110016, Delhi, India
• IDBI Bank Limited, Chaturvedi Mansion, 26, Old Palasia Agra, Bombay Road, Indore– 452001, Madhya Pradesh, India
• State Bank of Travancore
• ICICI Bank
• Punjab National Bank
• HDFC Bank
• Axis Bank
• United Bank of India

Facilities :

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
A) From Banks
i) Cash Credit	1027.802	1091.556
ii) Term Loans
a) State Bank of India	--	--
b) Industrial Development Bank of India	1161.600	1302.400
c) State Bank of Mysore	330.000	370.000
d) State Bank of Saurashtra	330.000	370.000
e) United Bank of India	750.000	850.000
f) Punjab and Sindh Bank	1342.104	1500.000
g) Dhanalxmi Bank	1071.000	1180.000
h) Union Bank of India	2421.052
i) Allahabad Bank	1500.000
B) From Others
i) Infrastructure Development Finance Company Limited	3779.200	4365.250
ii) Power Finance Corporation Limited	190.000	230.000
iii) Axis Bank CLSS 7 Trust 2010	1156.200	1250.000
Total	15058.958	12509.206
Unsecured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
From Banks- Punjab National Bank	1000.000	800.000
Union Bank of India	1000.000	--
Punjab and Sindh Bank	1500.000	--
Karnataka Bank Limited	500.000	--
Dena Bank	600.000	--
South Indian Bank	1000.00	--
From Others- Axis Bank CL55 8 Trust 2010	850.000	1000.000
Axis Bank CL55 2 Trust 2011	1250.000	--
Axis Bank CL55 15 Trust 2011	1000.000	--
Tata Capital Limited	500.000	--
Total	9200.000	1800.000

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	7th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase-II, Gurgaon- 122002, Haryana, India
PAN No :	AABFD2095B
Internal Auditors :
Name:	KPMG Chartered Accountants
Cost Auditor:	Ramanath Iyer and Company Cost Accountants
Holding Company :	The Tata Power Company Limited CIN No: L28920MH1919PLC000567
Fellow Subsidiaries:	Tata Power Trading Company Limited (TPTCL)
Companies holding substantial interest in voting power of the company :	Delhi Power Company Limited (DPCL)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000000	Equity Shares	Rs. 10/- Each	Rs. 7500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
552000000	Equity Shares	Rs. 10/- Each	Rs. 5520.000 Millions

Note:

Of the above

1. 281520000 (Previous year 281520000) Equity Shares of Rs. 10 each are held by Tata Power Company Limited, the holding company.

2. 367950000 (Previous year 367950000) Equity Shares of Rs. 10 each are allotted at par as fully paid to contract without payment being received in cash.

3. 184000000 (Previous year 184000000) Equity Shares of Rs. 10 each are allotted as fully paid up bonus shares by capitalization of reserve and surplus.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5520.000	5520.000	5520.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10064.988	7483.184	3975.880
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15584.988	13003.184	9495.880
LOAN FUNDS
1] Secured Loans		15058.958	12509.206	8945.574
2] Unsecured Loans		9200.000	1800.000	0.000
TOTAL BORROWING		24258.958	14309.206	8945.574
DEFERRED TAX LIABILITIES		0.000	0.000	1391.474
Consumers security deposit		2805.412	2397.261	1973.229
Capital Grants		82.952	75.080	73.562
Consumer Contribution for capital Works		3179.195	2749.376	1541.421
TOTAL		45911.505	32534.107	23421.140
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23712.745	19419.917	16879.807
Capital work-in-progress		4312.418	4216.997	3308.004
INVESTMENT		192.554	194.419	196.183
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	152.156	109.326	99.573
	Sundry Debtors	24391.420	12429.835	5615.549
	Cash & Bank Balances	820.416	827.126	489.218
	Other Current Assets	10.405	12.362	13.971
	Loans & Advances	1147.499	1837.173	2582.374
Total Current Assets		26521.896	15215.822	8800.685
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5429.215	4098.019	1966.955
	Other Current Liabilities	3270.657	2322.424	2819.499
	Provisions	128.236	92.605	977.085
Total Current Liabilities		8828.108	6513.048	5763.539
Net Current Assets		17693.788	8702.774	3037.146
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		45911.505	32534.107	23421.140

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	28316.829	26041.729	23630.345
		Other Operating Income	1279.214	1605.771	1007.322
		Other Income	68.965	263.845	144.011
		TOTAL (A)	29665.008	27911.345	24781.678
Less	EXPENSES
		Cost of Power Purchase	31076.877	25588.263	18065.052
		Operating, Maintenance and Administrative Expenses	3904.450	3946.970	2797.323
		Bad Debts Written off	10.232	443.807	0.000
		Loss on retirements/ Sale of Fixed assets	0.000	0.000	0.000
		Provision for doubtful debts/ advances no longer required written back	0.000	0.000	[10.992]
		Income recoverable from future tariff	[11564.300]	[6726.800]	0.000
		TOTAL (B)	23427.259	23252.240	20851.383
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6237.749	4659.105	3930.295
Less	FINANCIAL EXPENSES/ INTEREST (D)		1728.432	947.351	746.233
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4509.317	3711.754	3184.062
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1309.159	1110.249	952.829
	PROFIT BEFORE TAX (E-F) (G)		3200.158	2601.505	2231.233
Less	TAX (H)		618.354	[905.799]	516.531
	PROFIT AFTER TAX (G-H) (I)		2581.804	3507.304	1714.702
	EARNINGS IN FOREIGN CURRENCY
		Receipts from Consultancy	0.907	2.008	--
	TOTAL EARNINGS		0.907	2.008	--
	IMPORTS
		Capital Goods	12.652	31.010	43.254
		Components and spare parts	0.000	0.000	0.000
	TOTAL IMPORTS		12.652	31.010	43.254
	Earnings Per Share (Rs.)		4.68	6.35	3.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.70	12.56	6.92
Net Profit Margin (PBT/Sales)	(%)	11.30	9.98	9.44
Return on Total Assets (PBT/Total Assets}	(%)	5.86	7.51	8.69
Return on Investment (ROI) (PBT/Networth)		0.20	0.20	0.23
Debt Equity Ratio (Total Liability/Networth)		2.12	1.60	1.55
Current Ratio (Current Asset/Current Liability)		3.00	2.34	1.53

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Payable to Micro, Small and Medium enterprises	1.912	0.014	0.000
Payable for Power Purchase	3598.712	2693.050	1142.894
Others	1828.591	1404.955	824.061
Total	5429.215	4098.019	1966.955

Note:

The Registered office of the company has been shifted from Grid Substation Building, Hudson Lines Kingsway Camp, Delhi – 110 009, India to present address w.e.f. 17.11.2009

BACKGROUND:

The company engaged in the business of distribution of electricity in North and North-West Delhi was set up in term of Delhi Electricity Reforms (Transfer Scheme) Rules 2001. The undertaking of erstwhile Delhi Vidyut Board (DVB) engaged in distribution and retail supply of electricity in the North and North –West districts in the National Capital Territory of Delhi together with the personnel employed therein were transferred to the company with effect from 1 July, 2002 and also market the commencement of commercial operations for the company.

The company has been granted to license under section 20 of the Delhi Electricity Reform Act, 2000 (Act No. 2 of 2001) by the Delhi Electricity Regulatory Commission on 11 March, 2004. the license is valid for a period of twenty five year. During the period 1 July, 2002 to the date of grant of license, NDPL was a deemed licensee.

FINANCIAL HIGHLIGHTS

NDPL earned revenues of Rs. 29590.000 Millions during Financial Year 2010-11 (FY 11), a growth of about 8.7% over the previous year revenues of Rs 27220.000 Millions. The Company however incurred a loss of Rs. 8360.000 Millions in FY11 as compared to a loss Rs. 4130.000 Millions in FY 10 prior to accounting Revenue amounting to Rs. 11560.000 Millions in FY 11(Rs. 6730.000 Millions in FY 10) to be recovered through future tariffs. This amount reflects the shortfall (termed as 'Revenue Gap' in Regulatory parlance) in the Company's revenues billed at current tariffs and those chargeable by it to its consumers based on costs incurred during the year. The same have been recognized as Income of the Current Year on basis of accrual system of accounting which requires revenues to be recognized in the year to which they pertain, even though realisable in future, so long as the same are quantifiable and there is certainty of ultimate recovery. Consequently, on recognising the Rêvenue Gap of Rs. 11560.000 Millions (Rs. 6730.000 Millions in FY 10) as Income Recoverable from future tariffs, resultant profit before tax (PBT) was Rs. 3200.000 Millions in FY11 as compared to Rs. 2600.000 Millions in FY 10 reflecting a growth of 23% over previous year. The Profit after tax (PAT) for FY 11 was Rs. 2580.000 Millions as compared to Rs. 3510.000 Millions in FY 10 which included one-time exceptional credit (reversal of Deferred Tax) of Rs. 1390.000 Millions. After adjusting this exceptional credit in FY 2009-10, the normalised PAT for FY 10 is Rs 2120.000 Millions, thereby reflecting a 21.7% increase in PAT of FY 11 over normalised PAT. of FY10. At the prevailing tariff, a Revenue Gap of Rs. 11560.000 Millions has resulted during

FY 2010-11 largely on account of following:

a. The actual average power purchase cost for FY 11 was Rs. 4.25 per unit against Rs. 2.63 per unit that was factored in Tariffs by DERC, thereby resulting in under- recovery of Rs. 1.62 per unit for 7,316 Mus aggregating to Rs. 11890.000 Millions

b. Overestimation of Revenues by DERC (at target AT and C loss level) considering higher average billing rates, amounting to Rs. 1690.000 Millions

c. Ultimate Estimation of Other Expenses aggregating to Rs. 940.000 Millions, that are recoverable through tariffs, significant part of which is on account of implementation of V1 Pay Commission Recommendations, etc.

d. The above under recovery was partly off-set by Rs. 620.000 Millions on account of actual Other Income being higher than estimated by DERC. The delay in recovery of this Revenue Gap (having arisen due to factors outside the control of NIJPL) through appropriate adjustment in tariffs, has had an adverse effect on the Liquidity and the credit ratings of the Company; any further delay in at-Least stemming further accretion of Revenue Gap is likely to adversely impact the Company’s Capital and Operating Expenditure programs, thereby directly effecting consumer convenience in terms of network reliability, availability and quality of power. The Company has represented to DERC for (a) determination of FY 2011.12 tariffs at cost reflective level (b) determination of total outstanding Revenue Gap together with its recovery trajectory, and (c) introduction of a power purchase cost adjustment mechanism so as to ensure that any variance in actually incurred power purchase cost and the cost that is factored in tariff, gets periodically adjusted during the year itself, rather than accumulating for a lump-sum adjustment in subsequent tariff revision which could result in an undesirable tariff shock for consumers.

OPERATIONS

AT and C Loss Reduction

One of the most significant measure of operational efficiency is Aggregate Technical. (AT and C) Loss Reduction. AT and C Losses refer to the difference between energy input and energy for which revenue is realised.

NDPL has consistently over-achieved’ its Regulatory AT and C Loss Reduction Targets, thereby generating additional revenues which have considerable helped in mitigating retail tariff increases despite steep increase in input costs, as well as earning incentives for the Company. From an opening loss level of 53% in July 2002, NDPL has reduced AT and C losses by 75% to 13.2% at end of FY 2011, a record in the country, and probably elsewhere.

Power Procurement

As in the past years, NDPL procured sufficient quantity of power during the period of meeting 100% peak demand of its Consumers despite considerable Financial stress on account of delay in revision of tariffs. The Company procured 7,316 Million units (MUS) of energy in FY 2010-11 against 6911 Mus in FY 2009-10, reflecting an increase of 6% over the previous year.

Capital Expenditure

Over and above the opening asset value of Rs. 9200.000 Millions at the time of taking over in 2002, NDPL has executed Distribution related Capital. works aggregating to Rs. 27430.000 Millions in the past 9 Years and this amount has been judiciously utilized for enhancement of Reliability through Network improvements, Reduction of AT and C Losses and improvement in consumer services. Rs. 3900.000 Millions of distribution related expenditure was capitalized during FY 2010-11 (Previous Year Rs. 3760.000 Millions). Further, Rs. 1890.000 Millions of Generation related expenditure (Rs. 1670.000 Millions for Rithala and Rs. 220.000 Millions for various Solar projects) was also capitalized during the year. Capex aggregating to Rs. 26340.000 Millions has been incrementally capitalised till FY 2011 since takeover. Due to infusion of capex for strengthening and augmenting network and advancements in maintenance practices. Reliability of NDPLS network continued to improve with the Average System Availability Index (ASAI) increasing from 98.71% in FY 10 to 99.45% in FY 11.

Generation Initiatives NDPL successfully commissioned 60 MW generation capacity out of total 108 MW capacity of Rithala Generation Plant in Feb 2011; the balance generation capacity is expected to be commissioned shortly. The Project is aimed at augmenting power supply to our consumers to partially meet their demand and to enable supply to critical! emergency services during any grid collapse by ensuring islanding. NOEL also commissioned 1 MWp Rooftop Solar Power Plant in its Licensed Area, in Nov 2010; the Plant is the first operational 1 MWp Solar plant of this capacity in the Capital. NDPL has also established other smaller solar projects (approximately. 200 kWp) on its Grid Rooftops. Out of the total installed renewable capacity of LOS MW in Delhi as at March 31, 2011- 12 MW has been added by NDPL, NDPL is committed to the cause of Greener and cleaner Delhi, and this is a small but significant beginning in this direction.

SCADA EMS and DMS

NDPL implemented SCADA EMS (Energy Management System) with GSAS (Grid S/Stn Automation System) to control and monitor the 66/33 KV network with main objective of improving operational efficiency. This has resulted in significant improvement in reliability of power supply as the entire network is now operated from a central location with alt load management decisions being based on real time power flow information from the system. As of now, 58 out of 60 grids have been automated and 56 are unmanned, The balance grids shall be un-manned in a phased manner during financial year 2011-12.

SCADA DM5 (Distribution Management System) with DA (Distribution Automation) was successfully implemented during FY 2010-11 to monitor and control 11 KV network. Its implementation has helped in curtailing downtime of the 11 KV network by online identification of faults and centralized restoration of power supply from the control center through automated switching.. While DMS has been rolled out across the Organization, DA has been implemented in 7 out of 12 districts. The balance districts are being covered in a phased manner with its completion being targeted during FY 2011-12.

Outage Management System (DM5)

As part of NDPL’s continued efforts to enhance reliability of network and to further reduce fault restoration tIme, NDPL is now implementing an Outage Management System (DM5) for faster and more accurate location and restoration of faults in the It Network, thereby significantly reducing downtime. NOPL is the first Utility in the country to be implementing the OMS.

The System is now operational in one of the five Circles in the Organisation as well as for entire street lighting infrastructure across NDPL. The OMS is expecting to be deployed across the Company within FY 2011-12.

Smart Grid:

Smart Grid is an integration of automation systems encompassing generation, transmission, distribution and consumer end by utilization of IT for seamless integration of two way communication system. It ensures optimum utilization of power flow at peak and off peak hours, allowing integrating of infirm renewable power such as solar and wind, with the Grid. As relating to the Distribution segment, beside the above features, Smart Grids address issues of Reliability of Supply, Consumer Satisfaction. Demand Side Management, Environment and Safety. They facilitate consumers in monitoring their power consumption in real time, thereby empowering them to take informed decisions with respect to timing and quantity of consumption. In order to assess and validate the benefits of Smart Grid, NDPL has submitted a proposal to DERC for implementing of a pilot smart feeder/grid project including two-way smart metering on a feeder with large consumers, integrating the same with a Demand Response (DR) solution.

Human Resources Development

During the period under review, the Company launched various initiatives towards improving performance, culture building and employee engagement. Other initiatives like Tata Business Excellence Model (TBEM) wokshops a assessment through internal resources, Peoples Capability Maturity Model (PCMM) Level II certification and Six Sigma were also implemented.

Great PIace to work Institute India, has ranked NDPL in band of top 50-100 among 471 Indian Companies surveyed in 2011. NDPL was also ranked by the Institute in band of top 50-100 in 2010, however out of 395 Indian companies. EmpIoyee Engagement The overall Employee Engagement and Satisfaction Score increased to 72% in 2011 as compared 70t in 2009. Employee participation in the Employee Engagement and Satisfaction Survey improved to 61% in 2011 as compared to 28% in the last survey conducted in 2009.

Talent Management

To further enhance performance orientation and learning environment in the organization. several initiatives were undertaken like Midyear review a Feedback, Personal development Programme (PDP) and its system integration with SAP to increase transparency. Further, to address development needs of under-. performing employees, a Performance Improvement Programme has been started to counsel & guide them so as to ensure improved performance in future.

Welfare

An Employee Voluntary Benevolent Contribution Scheme has been instituted to provide monetary relief to the families of deceased member employees, Under the Scheme, in the event of death of a member, immediate monetary relief is provided to the deceased’s family which is contributed by alt members of the Scheme together with a matching contribution by the Company. As at March 31, 2011, 85% of the Company’s employee strength of 3981 is member of this Voluntary Scheme. Mass Health Awareness Programmes and Health check up camps were conducted for the entire workforce during 2010-11, Long Service Award was instituted during FY 2010-11 to honour employees for their Long association with the organisation. The award is given for continuous 5 yrs service from 2002 onwards. 2,835 employees were given this long service award in FY 2010-11.

Safety

In order to enhance focus on Safety across the Company, reporting of Near Misses/ Safety Incidents / Accidents was made a mandatory KRA for all employees. Additionally, so as to encourage and recognize safe practices, a Zeros Accident Incentive Scheme was launched for the workforce. Ethics To inculcate ethical culture and implement ethics management across the organization, the Company has adopted the NDPL Code of Conduct, and also has a Whistle Blower policy in place. As per the Whistle Blower policy, any stakeholder can raise ethical concern(s) upto the level of the Chairman, Audit Committee. The Company has instituted a three tier Ethics Management Structure headed by the Chief Ethics Officer i.e. Managing Director, which in turn reports to the Board of Directors which maintains a continuous oversight on ethical issues being raised and their resolution. Further1 steps like celebration of ethics week, online quizzes, publication of Ethics Patrika and Ethics Violation Updates, Ethical Compass, etc. have been undertaken to promote culture of ethics. Also, strict disciplinary action(s) are taken in case of ethics violations.

Industrial Relations

In a significant judgment, Han’ble High Court of Delhi has ordered Union Elections in all Power Companies in Delhi on a Company wide basis rather than the earlier practice of a common union through a common election.. Elections are due some-time in August 2011.

Corporate Social Responsibility

NDPL believes that improving quality of life of people is an essential aspect of its business concurrent with its activity of supply of electricity to its consumers. NDPL’s VISION, MISSION and Corporate Sustainability Policy set the overall direction for community initiatives. NDPL aims at generating responsible profits by assessing social and environmental impacts of our operations proactively and by catering for development as an essential part of the business. Employees are aware of their obligations towards serving the community at large in line with Tata traditions, NDPL considers Community initiatives as vital elements which contribute towards sustainability by way of a three pronged strategy i.e. Compensatory in nature, Business Oriented and Philanthropic activities. Recognizing the special needs of weaker section of society, a separate group (Special Consumer Group) was constituted to address the needs and requirements of such consumers who reside mainly in Slum clusters. The 5CC works closely with the CSR Group in developing initiatives to empower these communities through vocational training, entrepreneurship programs, drug de-addiction, etc. Additionally, various other initiatives including blood donation camps, free health checkups, adult literacy center vocational training cum tutorial centers NDPL-TERI Earth Day Celebrations, Clean Delhi-NCR Drive were undertaken during the period under review. In order to increase the reach and frequency of medical health check-up assistance1 a facility of NDPL Mobile dispensary was also launched during the year.

Affirmative Action

NDPL’s journey in the realm of Affirmative Action began with the signing of the Code for Affirmative Action on 3rd February 2007. The “Policy on Affirmative Action for Scheduled Caste & Scheduled Tribe Communities” was approved by the Board of Directors on 18th July 2007. In order to supplement efforts of the government to improve condition of socially and economically underprivileged SC/STs and to create a level playing field, concrete steps for giving better opportunities in the private sector were initiated. Tata Group expressed their commitment towards this initiative, in order to ensure upliftment of the socially backward and underprivileged in the society.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments

The Company operates in the Retail end of the Electricity chain as Power Distribution Company with Generation, Transmission and Trading being the other distinct components of the Electricity Sector. The sector is governed by the provisions of Electricity Act 2003 and various regulations issued by the CERC (Central Electricity Regulatory Commission) and SERCs (State Electricity Regulatory Commissions .A brief outlook on the Power Sector is provided below:

Power Distribution

The distribution sector has been historically bedeviled by high AT and C losses. The national average losses stand at around 28%. Additionally, absence of Cost Reflective Tariffs is further worsening the situation of distribution utilities. The need for Cost Reflective Tariffs has also been recognized by the Finance Commission in its Thirteenth Finance Commission Report which states that the net losses of the State T and D Utilities, taking into account reasonable reduction of losses and increase in Power Purchase and Distribution Costs, are estimated to increase from over Rs. 680000.000 Millions in FY 2010-11 to over Rs 1160000.000 Millions. in FY 2014-15. Hence even considering the prevailing subsidy levels, power tariffs in the country need to be revised upwards, failing which the viability of the entire sector may be jeopardized.

The Thirteenth Finance Commission Report highlights the facts that tariff revision have not taken place in some of the states for as Long as 5 years which clearly cannot be sustainable state of affairs. As per the Economic Survey 2011 there is an need to revise electricity tariffs to economic levels. India currently has some of the lowest and most uneconomic electricity tariffs in the world--8 cents/kwh at retail level, compared to about 12-15 cents/kwh in Canada, South Africa, the USA and 19-20 cents/kwh elsewhere. It is worthwhile to point out that tariffs in Delhi have been largely stagnant for the last 5 years with the result that discom are burdened with a revenue gap of over Rs. 80000.000 Millions approximately due to absence of Cost Reflective tariffs. To assess the financial position of distribution utilities, Hon’ble Prime Minister has appointed a High Level Panel which is headed by former Comptroller E Auditor General Shri V K Shunglu. The panel shall also review the managerial structure of the utilities and accounting practices and ‘recommend a plan of action to achieve financial viability in distribution of power by 2017”.

The Ministry of Power has also approached the k w ate Tribunal for Electricity to conside .assuing directions under Section 121 of the Electricity Act to the State Regulatory Authorities to revise the tariff appropriately (suo-moto, if required), in the interest of improving the financial health and long term viability of electricity . sector in general and distribution utilities in particular. As AT&C losses still remain a key area of concern, the Govt. of India has restructured its Accelerated Power Development E Reform Programme (APDRP) which was launched in 2001 for the strengthening of Sub - Transmission and Distribution network and reduction in ATEC Losses as (APDR) in August 2008 with an outlay of Rs, 500000.000 Millions. The programme was to be implemented in towns and cities with a population of more than 30,000. Loss Levels at 15% and lower were targeted to be reached by end of the Xlth Plan (FY 12) for the 1400 towns/cities covered under the R-APDRP. While the R-APDRP is a significant initiative of the Government of India to accelerate operational efficiencies of Distribution Utilities, private utilities have been presently kept out of the ambit of the Program thereby depriving them the benefit of cheaper financing by way of Grants which would have resulted in lower investment servicing costs and consequently lower tariffs for their consumers. The scheme needs to be suitably amended to include private utilities so that the benefit of cheaper and longer tenor source of financing are extended to consumers of such UtiIitIes also. In order to improve efficiency of the sector and accountability of individual segments of the value chain viz. Generation, Transmission and Distribution, most of the SEBs have been unbundled into functional entities and corporatized. The full benefit of unbundled ft corporatization is, however not being realized presently. In order to bring about autonomy in their functioning and for introduction of best practices, it is imperative that at least the Distribution part of the’ value chain, which has maximum inefficiencies ft impacts consumers directly, should be privatised. utilization of Distribution in Orissa further progress has been made on the i.e. State Governments are only pursuing the Franchisee Model, whereby long O and M contract(s) for particular areas tendered to private parties. The franchisee Contracts are generally being for 10 to 15 years based on “Input franchisee Model” wherein a fixed period franchise of a designated area is offered based on the per unit power purchase rate committed to be paid by the successful franchisee to licensee i.e. State Utility giving out the Franchise, for the period of Franchise. Franchisees for some cities / towns in Maharashtra, Uttar Pradesh and Madhya Pradesh have been awarded with some other States such as Karnataka, Bihar; Chhattisgarh, Haryana, etc. under various stages of planning/tendering. Given the relatively short, fixed tenure Franchisee contracts, the Franchisee route is only a halfhearted attempt in bringing improvement in distribution since the short tenure does not inspire sufficient confidence in investors to plan and execute strategies that shall ensure long term sustainable benefits. Moreover, this model is not likely to result in substantial benefits to consumers either in service delivery, reliability or lower tariffs considering that entire benefits of reduction in losses are shared between the licensee and franchisee with the consumer being left Cut, The Planning Commission, taking cognizance of the shortcomings ft the Franchisee Model, is in the process of developing an alternate PPP based licensee Model for Distribution. Introduction of Competition in the sector bad been a key intent of the Electricity Act 2003 and while regulations have been framed by various SERCs for promotion of Open Access in distribution, the same has not taken off significantly. Mainly short term, intra-day Open Access transactions have been taking place so far which have at times left the incumbent utilities in significant financial stress due to inadequate compensation through. cross subsidy surcharges. For Open Access to be a reality on a sustainable basis, it is essential that there is adequate merchant capacity for being contracted through Open Access as well as appropriate standby and cross subsidy, surcharge mechanism in place, Presently State owned Discoms are generally apprehensive of losing high end cross subsidizing consumers without being adequately compensated through cross subsidy charges. The solution lies in Cost Reflective tariffs based on cost to serve which once introduced would allow for free competition.

In order to address challenge of Climate Change, the Government of India (GoI) has released a National Action Plan on Climate Change (NAPCC) which envisages a Renewable Energy share of 15% by 2020 in the country. The necessary Regulatory Framework has been instituted with feed in tariffs being fixed and Renewable Energy trading’ mechanism being put in place through REC route. In line with the National Solar Mission which targets deployment of 20000 MW of solar power by 2022, the National Tariff Policy has also been recently amended to provide for a 3% Solar RPO imposition on Discoms by 2022 starting from 0.25% in 2012-13. The increasing share of renewable sources in the energy mix as envisaged, shall at least Capacity addition during 11th plan has been adversely affected on account of shortage of skilled manpower, delay in readiness of balance of plants by the executing agencies, land acquisition, rehabilitation, environmental and forest related issues. These Issues continue to pose challenge in accelerating pace of capacity addition, Further, the’ country is laced with fuel constraints as the development of fuel sources within the country is not keeping pace with capacity addition plans thereby making the sector more dependent on imported sources which expose the generators to fuel price and forex volatility. The demand -for coal in Power Sector is expected to touch 700 million tonnes in 2016- 17 as per Expert Committee Report on Coal Sector Reforms. There are various issues in development of the coal blocks which include forest and environment clearance, land acquisition together with the issue of simultaneous development of ports and railway infrastructure for downloading imported coal as well as transporting imported! domestic coal to generation plants at load centers. In the 12th Plan FY 2013-17), an additional 100,000 MW of generation capacity is planned to be added, which seems to be a herculean task, given the constraints and actual pace of capacity addition. Transmission Development of a strong National Grid is a necessity to ensure optimal supply of power to all. The Ministry of Power (MOP) has envisaged establishment of an integrated National Power Grid in the country by the year 2012. The inter-regional power transmision capacity as on March 2011 is around 22400 MW which is expected to be enhanced to 37700 MW by 2012 and further to 58700 MW by 2014-15.

Private investment is set to pick up increased focus on private participation in transmission sector JV/ PPP route.

During 2010.11, Central Electricity Regulatory Commission (CERC) has notified its regulations on Sharing of inter State Transmission Charges and Losses’. These regulations would implement the point of connection method of sharing the cost of inter-state transmission services in India, replacing the present system of regional postage stamps. The regulations would facilitate soIar -based generation by allowing zero transmission access charge for the use of inter-state transmission system (ISTS) and allocating no transmission loss to solar-based generation,

Power Trading India has two power exchanges India Energy Exchange (IEX) and Power Exchange india Limited (PXIL). The volume of electricity transacted through the exchanges for the FY 2010-11 war approximately 2% of total generation which in times to come is expected to increase as newer capacities are added which shalL be transacted through the exchanges.

Future Outlook and Opportunities and Threats

Tariff Regulations for the first MVT Control Period providing tariff fixation principles and targets were originally fixed for four years (FY 08-FY 11); however, due to inordinate delay in finalizing of the regulations for the next Control Period, DERC has communicated the continuance of current MYT principles for another financial year with NDPL’s AT and C loss reduction target for FY 2011-12 fixed at 13%, compared to the target of 17% for FY 20I0-11. While NDPL has been consistently overachieving its Regulatory Targets for AT and C loss reduction thereby bringing significant benefits to the Sector and the stakeholders of the Company, further incremental reduction would be at a slower pace due to already low loss Levels. Further, the Regulatory practice followed by DERC of restatement of base AT and C loss level at Actual Loss level at the end of Control Period (FY11) for determination of

in the short to medium term, also affect the Power Purchase Price of utilities given the existing disparity in the price of conventional vis-à-vis renewable power, notwithstanding the tariff / capital subsidies being extended by various Governments for Renewal generation. It is however expected that with increase in critical mass of Renewable Power together with further improvement in technology, cost of Renewable Power shall achieve grid parity in the long term. Further, Demand Side Management and Energy Efficiency have gained greater focus to reduce the demand supply gap prevailing in the country. The Govt. has launched the National Mission on Energy Efficiency under the stewardship of Bureau of Energy Efficiency (BEE). BEE has notified a Three Year Perform, Achieve and Trade (PAT) program starting from April 1, 2011 for eight most energy intensive industries, which account for aver 50% of energy consumption

The Bureau of Energy Efficiency has also launched the ‘Bachat Lamp Yojana’ under DSM which promotes replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs) by leveraging sale of Certified Emission Reduction (CERs) under the Kyoto Protocol’s Clean Delivery Mechanism {CDM), the proceeds of which, shall go toward subsidizing cost of CFL’s.

With a view to more efficient management of consumers’ electricity consumption behavior along with more efficient use of grid to identify arid correct demand-supply imbalances, integrating renewable sources of power and detecting faults rapidly in a self- healing process, implementation of Smart Grids is being evaluated across the Sector. Transition to a Smart Grid will allow utilities to better manage their network, limit electricity loss, prevent outages and provide customers information and tools (smart meters) to optimize their own energy use.

For the systemic growth of Smart Grids in the country, “india Smart Grid Forum” and “India Smart Grid Task Force” have been set up under the aegis at Ministry of Power, Govt. of India, While the India Smart Grid Task Force is an inter-ministerial group which will serve as Government’s focal point for activities related to Smart Grid, the India Smart Grid Forum is a nonprofit voluntary consortium of public and private stakeholders entrusted with the objective of accelerating Smart Grid development in India. As the implementation of Smart Grids shall be capital intensive, ensuring that the same are commercially viable and do not adversely impact tariffs is a challenge. NDPL is an active member of the Smart Grid Forum and is working actively in developing a suitable business model for implementation of Smart Grids. In this context, NDPL has conceptualized a Smart Feeder Pilot Project which is presently in discussion with the DERC and USTDA.

Generation

The total installed capacity of the country as on 31.03.2011 stands at around 1,73,626 MW out of which 14,228 MW has been added during the year 2010-11. Against a capacity addition target of 78,700 MW fixed for the XI plan (FY 08- 12), Planning Commission in its midterm review had reduced the target to 62,374 MW which is unlikely to be achieved considering that on 41,297 MW of capacity as been added in the first four years of the Plan. It is likely that we shall end the XIth Plan with a capacity addition of around 50,000 MW in the Plan Period FY 08-12, which while being the highest in any Plan period till now, pales into insignificance when compared to China which adds 1,00,000 MW of generating capacity each year.

thermal Power continues to be dominant in the current installed capacity with a share of 65% followed by Hydro at 22% as illustrated below:

Total Capacity MW %Share

Thermal 112824.48 65.0

Hydro 37567.40 21.6

Nuclear 4780.00 2.8

Renewable Energy Sources 18454.52 10.6

Total 173626.40 100

Regulatory targets of AT and C losses targets for FY 2011-12 and beyond shall also result in withdrawl of entire efficiency benefits (incentives) that the company was able to earn and retain during the period FY O8 to FY 11 through reduction of Losses well below the targeted levels.

In addition to the above, speedy recovery of legitimate costs through Cost Reflective tariffs is becoming the single Largest challenge which is threatening financial viability of all Discoms, including NDPL. NDPL has accumulated a Revenue Gap of Rs. 21500.000 Millions as at 31.03.2011 reflecting the difference between legitimate costs incurred vis-ã-vis costs actually recovered through tariffs which has put pressure on the Liquidity position of the company. At current tariff Level an additional revenue gap of around Rs. 15000.000 Millions. is expected to accumulate in FY 2011-12.

Major reason for increasing Revenue Gaps is the underestimation by the DERC of power purchase costs over the last two years (i.e. effective per unit cost of power purchase cost increased from Rs. 2.63/ unit in FY 2008-09 to Rs. 3.68/unit in FY09-10 and subsequently to Rs. 421/unit in FY 10-11) without a corresponding adjustment in retail tariffs, which are based on power purchase costs of Rs, 2.63. These costs went up primarily due to increase in fuel costs of generators and the expensive power available in the market during peak demand. Tariff revision got inordinately delayed due to a PIL filed by a consumer which resulted in the Hon’ble Delhi High Court staying issuance of any Tariff Order without its permission. The PIL has been recently disposed off, With the PIL being disposed off arid stay on Tariff Order being vacated, the DERC has initiated the process for Tariff determination for the FY 2011-12. The Company has filed a petition for true up of Revenue Cap upto FY 2010-11 and Aggregate Revenue Requirement (ARR) and tariff determination for FY 2011-12. Further, in order to ensure that variances in Power Purchase Costs (actual cost vs base cost factored in tariff) are periodically adjusted by way of positive/ negative surcharge along with base tariff, the company has filed a petition with DERC for automatic adjustment of difference in actual Power Purchase Cost vis-à-vis estimated at the time of fixing tariffs on quarterly basis. Such periodic adjustment of variance shall ensure that consumers do not suffer tariff shocks at the end’ of a tariff period due to Large accumulated gaps requiring recovery in the next tariff setting exercise. All the above referred Tariff Petitions have been admitted by the DERC and are under active consideration. The Tariff Order for FY 2011-12 is likely to be issued in August. It is imperative that the DERC makes an appropriate tariff correction while determining applicable tariffs for FY 2011-12 so as to ensure that the financial condition. of Discoms and ability to buy power does not deteriorate further.

Additionally, sustaining profitability and ensuring its growth in a continuously evolving and increasingly stringent regulatory framework which would entail higher expenditure to meet rising expectations, ensuring recovery of full costs through tariffs, poses significant challenges and in some cases (Like open access) offers opportunities, which the Company is geared to both counter and exploit as below:

1. Power Sourcing including Own Generation

In-order to keep power procurement costs at most efficient levels, the Company is continuously striving to arrange adequate power on long term basis from most competitive sources. Towards achievement of, this endeavour, it has in the Last 2-3 years entered into Long Term (25- 30 years) Power Purchase Agreements with various Generating Companies, aggregating to over 1 500 MW. In FY 2010-11, the Company entered into LT PPM for around 353 MW out of which 157 MW is Coal Based, 153 MW Gas Based and 41 MW from Hydra sources. While the company is making conscious effort to contract more Hydro and Renewable sources of energy in order to address the challenge of climate change, the issue of low PLFs of these sources together with the high capital cost having adverse impact on tariffs, which in present scenario are under extreme pressure, cannot be ignored.

In addition to contracted Power, the Company has established co MW Gas Based Combined Cycle Power Plant at Pit hate which shall enhance availability and reliability of supply to the company’s consumers. The Open Cycle Operations have commenced from February 2011 and Combined Cycle operations are expected to be commissioned in the next few months. Rithala is the only backward integration project by any Discom in the country which has been privatized or unbundled pursuant to a Distribution Reforms process, The Company is also developing an ‘Istanding Scheme’, whereby critical installations within NDPLs Licensed Area will continue to get uninterrupted supply even during a situation of Grid Collapse. As per present demand-supply projections, the above tong term tie- ups should result in 100% peak demand of NDPL Consumers being fully secured till FY 201 6-17. NDPL is evaluating various options for bridging future deficits from FY 2017- 18.

2. Introduction of potential Competition through Open Access

Open Access (OA) in Distribution has been progressively allowed by the DERC since July 1, 2007. with Consumers with a load of 1 MW and above being presently allowed the option to receive supply of electricity from a person other than distribution licensee of its area of supply. While large cross subsidies built into the tariff can result in High End consumers seeking avenues of sourcing own power through Open Access, the Company does not foresee any major threat in retaining its existing consumer base owing to its superior comparative performance. In order to ensure that incumbent licensees including NDPL) are provided with a level playing field vis-á-vis any Open Access Supplier who is not hound by regulated tariffs, the Company is strongly advocating movement towards consumer category wise cost reflective tariffs with subsidies restricted to t/- 20% of Cost to Serve to him with the National Tariff Policy of then Government of India.

3. Sustained Long Term Growth

Ensuring long term sustainable growth within the Licensed Area is a challenge considering the physical boundaries of the Licensed Area and eventually limited growth potential within the area.

In the short to medium term, the demand in expected to grow at 8% p.a. Additionally, NDPL.’s industrial areas of Bawana and Narela are also expected to experience significant toad growth as industries increasingly are shifted from non-conforming areas to these designated industrial areas. In an endeavour to establish Company’s brand image outside its existing licensed area, to leverage its domain expertise and be strategically positioned to identify and exploit emerging business opportunities, the Company constituted a Business Development Group in 2008 which is pursuing national/ international consultancy assignments relating to the Distribution Sector, viz. Loss management, Customer Relationship Management, Performance Management, Business Process Reengineering arid Restructuring, Capacity building, IT/SCADA. etc. The Company is empanellied as IT Consultant, IT Implementation Agency, SCADA and DMS Consultant with Power Finance Corporation) Rural Electrification Corporation (REC). The Company has initiated IT Consultancy assignments in 3 states and SCADA Consultancy assignment in 4 states. The Company is also evaluating other distribution opportunities both nationally and internationally.

4. Cost Optimization

Cost Optimization is an ongoing challenge, especially in view of the stringent Performance Assurance Standards which provide (or penalties for non compliance. In addition to the various initiatives being made to reduce/ optimize costs in all areas of operations, be it Power Purchase, Establishment, R and M or A and G Costs, an empowered Task Force has been constituted for effecting Cost control across the Organization through various initiatives, such as Business Processes Re-engineering, Six Sigma Initiatives. etc.

5. Performance Assurance

The DERC has notified Performance Assurance (PA) Standards with effect from April 2007 whereby penalties are leviable in the event of non conformance to the same. These include services such as new connections, fault/supply restoration, faulty meter replacement. With increasing stakeholder expectations OERC is in the process of revision of existing Performance Assurance Standards making them further stringent. The Company has initiated strict monitoring mechanisms to ensure compliance and also put forth improvement initiatives to improve the overall experience of consumers on every single interaction. Internal cycle times, which are more stringent than the PA Standards, are being monitored through a dedicated Performance Assurance Cell to ensure full compliance to the norms.

6. Climate Change

While the Distribution Business per-se is a relatively ‘clean’ business, the Company has identified certain areas where it Cr contribute effectively in meeting the challenge of Climate Change. The Company has formulated its Climate Change Policy in line with the Tata Group Policy and has mapped its Carbon Footprint as well as identified Abatement Levers to reduce Carbon emissions progressively. The progress on these initiatives is being monitored through a dedicated Combat Climate Change Team. The Company is also assisting other Tata Companies in mapping their respective Carbon footprints. Some of the areas that have been dentified and activities initiated are Sourcing of ‘Green Energy from Renewable Sources: In line with the National Electricity Policy and DERC’s directive of arranging at- least 1% of the total Energy Requirement from Renewable Sources, NDPL is exploring viable options of clean power, from various Renewable Energy sources. Delhi does not have any significant Wind potential. Electricity generated from harnessing of wind energy shall need to be imported from neighboring states. The single largest initiative undertaken in this area which shall also assist the company in meeting its RPO when made mandatory is the implementation of 1MW Solar Photovoltaic (SPV) Roof top project within its area of operations which is the first successfully commissioned and operating 1MW Roof top project in the National Capital of Delhi. In addition, NDPL has also established solar project capacities aggregating to 167 Kwp at various locations. While NDPL is exploring options to install SPV projects at its grid stations which can accommodate a total capacity of 2-3 MW grids under the proposed Delhi Solar Policy, the Company intends to proceed cautiously on this issue, considering the impact of Renewable (especially solar) Power on Tariffs and the current difficulties in obtaining cost reflective tariffs. In addition to its Renewable aspiration of offsetting its entire Carbon generation (due to Own consumption), the Company also aspires to become water neutral with focused efforts being made for establishment of Water Harvesting facilities at its Grid substations.

Demand Side Management (DSM):

The Company is undertaking load research to assess contribution of various end uses (such as ACs, refrigerators, lighting etc.) to its peak demand and energy requirements. It had also suggested to the DERC to implement Time of the Day Tariff so as to smoothen the demand curve. The Company’s suggestion of seasonal Tariff was included by DERC in the tariff structure of FY 2009-IC. Additionally, the Company is evaluating Demand Response as a part of its Demand Side Management program which shall incentive consumers to voluntarily shed load on call and help the company in shaving its peak to some extent. Proposal for the same has been submitted to DERC and is currently under evaluation. The Company has also associated itself with the ‘Bachat Lamp Yojna’ (SLY) launched by BEE and has undertaken distribution of over 10000 CELs in its area of operations on a pilot basis. Under the SLY, CFLs are aimed to be supplied to consumers at a subsidized rate of Rs. 15 each with the subsidy being funded through sale of CERs under an already approved CDM Project. Subsequent to Measurement and Verification (M and V) of the energy saved (and consequent reduction -carbon emission) from the already distributed CFLs, the scheme shall be deployed across NDPL on a Large- scale.

Various other initiatives for mitigating the adverse impact of climate change are being taken under the aegis of the Corporate Sustainability Group such as plantation of trees (Bamboo/ Neem and other Fruit trees), sensitization of students through Energy Clubs and public through Nukkád Nataks, etc. Lastly, NDPL, by virtue of utility being empanelled Service Company (ESCO) exploring the opportunity Perform, Achieve and program notified by BEE under the aegis of National Mission on Energy Efficiency for promoting energy efficiency in energy being the only as Energy is currently offered in the Trade (PAT) intensive industries.

Risk Management Procedure and Structure

A disciplined approach is evaluating risks and appropriate strategies to manage risk. An Enterprise wide Risk Register has teen prepared and continuously reviewed so as to ensure that existing/new/potential Risks are appropriately addressed. Each risk on the register is assigned an impact and probability rating the product of which determines the inherent (gross) risk. Detailed risk mitigation plans are developed for each risk which then determines the level of residual (net) risk. A Corporate Level Risk Management Committee, chaired by CFO who is also the Chief Risk Officer of the Company, periodically reviews existing, potential future risks and their mitigation plans. Group internal audit monitors the progress of mitigation plans and reports its findings to the Audit Committee on a quarterly basis.

Internal Control Systems And Their Adequacy

The Company has an adequate system of internal controls towards achieving efficiency in operations, optimum utilization of resources, and effective monitoring thereof and (or compliance with all applicable laws. The internal control mechanism comprises a well -defined organization structure, predetermined authority levels, risk assessment, segregation of duties and documented policy with a comprehensive delegation of authority, The Company is currently implementing ‘Governance Risk Compliance (GRC) Access Control’ to facilitate Segregation of Duties (SOD) and access control over key information assets. Its implementation will further mitigate likelihood of occurrence of errors and fraud by limiting access and increasing accountability and oversight. The Company has an In House Internal Audit department. A portion of internal audit work is also handled by an External firm of Chartered Accountants, which conducts the Internal Audit on the basis of Audit Plan approved by the Audit Committee. The scope and authority of Internal Audit department is derived from the Internal Audit Charter approved by the Audit Committee. The internal audit process seeks to include review and evaluation of effectiveness of the existing processes and controls. It also ensures adherence to policies and systems and mitigation of the operational risks perceived from each area under audit. Observations and recommendations for improvement of business processes are reported during the year to the Audit Committee of the Board which reviews the Internal Audit Reports and status of implementation of the agreed action plan.

The Audit Committee also meets the Company’s Statutory Auditors to ascertain their views on the adequacy of internal control systems in the company ft their observations on financial reports. The Audit Committee’s observations and suggestions are acted upon by the Management which again are reviewed by the Audit Committee.

Human Resources Development

Management’s relation with employees continued to be cordial and cooperative. Joint Interaction Forum and HR Nodal Officers have continuously improved direct interface with all employees.

During the period, The NDPL recruited people at various locations and various levels and reached employee strength of 3981.

Cautionary statement

Some of the statements in the Management Discussion and Analysis, describing North Delhi Power Limited’s objectives. projections and estimates, are forward-looking statements and progressive, within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic condition, Government policies and other incidental related factors.

Name Change:

Since the Tata Power Company Limited holds 51% Equity Share Capital and Management Control of the company, (thereby making NDPL a subsidiary of the Tata Power Company Limited), it is felt that incorporation of Tata in the company’s name would reflect the correct status of the company and be beneficial to it.

The Board approved change of name of the company from North Delhi limited to Tata Power Delhi Distribution Limited in its meeting dated may 11, 2011, subject to approval of shareholders ands the central government.

Bankers Charges Report as per Registry

Corporate identity number of the company	U40109DL2001PLC111526
Name of the company	NORTH DELHI POWER LIMITED
Address of the registered office or of the principal place of business in India of the company	NDPL House, Hudson Lines, Kingsway Camp, Delhi-110009, India Email: ajay.kalsie@ndpl.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	10258916
Type of charge	Immovable Property Book Debts Movable Property Others
Particular of charge holder	Allahabad Bank, H-12, Green Park Extension, New Delhi – 110016, Delhi, India Email: seeman_sn@yahoo.co.in
Nature of instrument creating charge	First Modification of charge as per Deed of Simple Mortgage dated 23.09.2011 by providing the additional security over the Immovable Properties as described in Schedule 1 of the mortgage deed on pari passu basis in favour of Allahabad Bank for securing a term loan of Rs. 1000.000 Millions for the purpose meeting partial ongoing capex/ for repayment of capex loans availed from other Bank. Original Charge crested vide term loan agreement (Hypothecation of Movables) dated 24.12.2010
Date of instrument Creating the charge	23.09.2011
Amount secured by the charge	Rs. 1000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Fixed Rate 9.50% p.a. with monthly rests. It shall be re-set after every three years from date of first disbursement. If BR of the bank exceeds above rate, interest rate will be equal to BR. Terms of Repayment 36 equal quarterly installments of Rs. 27.777 Millions commencing from 15^th January 2012 Margin 30% capex will be financed through internal accurals Extent and Operation of the charge First Charge on Term Loan of Rs 1000.000 Millions obtained vide Term Loan Agreement (hypothecation of movables) dated 24.12.2010 is now extended to immovable properties more specifically defined in Schedule 1 of Deed of Mortgage i.e. first pari passu charge on all movables and fixed assets, Stores and spares both present and future and third pari passu charge over receivables of the company. The Security will be shared on pari passu basis with other term lenders as well as working capital lenders.
Short particulars of the property charged	1st pari passu charge in favour of the bank over all movable and fixed assets of company to be shared with Term lenders and Working Capital Lenders. 1st pari passu charge in favour of the bank over present and future stores and spares of Company to be shared with Term lenders and Working Capital Lenders. 3rd pari passu charge over receivables of Company to be shared with Term lenders and Working Capital Lenders.
Particulars of the present modification	By Deed of Simple Mortgage dated 23.09.2011 first Charge is now extended to immovable property more particularly described in Schedule 1 of Deed of Simple Mortgage on pari passu basis to be shared with Existing Term and Working Capital Lenders for securing the term loan of Rs. 1000.000 Millions.

FIXED ASSETS:

• Buildings
• Plant and Machinery
• Furniture and Fittings and Office Equipment
• Vehicles
• Transmission Lines Cable Network

WEBSITE DETAILS:

Awards and Recognitions

1. Subject Wins 'India Power Awards 2008' - Adjudged winner in recognition for 'Overall Utility Performance in Distribution'

Subject won 'India Power Awards 2008' in recognition for Overall Utility Performance in Distribution.

2. Subject Wins 'Asian Utility of the Year Award 2008' at Asian Power Awards

Subject has won the 'Asian Utility of the Year 2008' award at the recently held 'Asian Power Awards 2008'. Mr. Sunil Wadhwa, Chief Executive Officer, NDPL, has been conferred the prestigious 'Most Inspirational CEO of the Year' award.

3. Subject wins International Balanced Scorecard (BSC) Hall of Fame Award 2008

Subject has won the international Palladium Balanced Scorecard Hall of Fame award- 2008. The award puts subject in a select and elite group of 106 companies worldwide who have won the award. Subject deployed the Balanced Scorecard (BSC) as a tool for strategy execution and used it to transform itself to a consumer centric entity with a performance-driven culture

4. Subject Wins 'SAP ACE Award 2008'

Subject won SAP ACE Award 2008 in the category "Best Utilities Sector Implementation - Large Enterprises". In its third edition, the SAP ACE awards 2008 celebrates breakthrough IT deployment catalyzing business transformation.

5. Subject Wins Prestigious Honour- The Edison Award by Edison Electric Institute (EEI), USA.

North Delhi Power Limited has become the first power distribution utility from India to have received the prestigious honor in the international category by winning the Edison Award

The award was presented to subject, in recognition of its operational excellence in the electric industry, for innovatively utilizing and integrating its Geographical Information System (GIS) with other applications for network planning, operations, commercial and asset management

The prestigious award is given annually by the Edison Electric Institute (EEI) to honour both international and U.S. electric companies for outstanding contributions to the advancement of the Power industry. A panel of academics and past and current EEI Chairmen select the finalists and ultimate winners.

6. 'Excellence in Cost Management 2007' Award by ICWAI.

Subject won the 'National Award for Excellence in Cost management' in the category of "Service Sector with turnover of more than 10000.000 Millions" by the Institute of Cost and Works Accountants of India (ICWAI). This is for the first time in India that any electricity distribution company has been conferred an award for cost management initiatives

Subject has been acknowledged for its sincere efforts in increasing revenue through reduction in AT and C losses over a period of more than 5 years through constant endeavor of cost management practices in all spheres in a regulatory regime

7. 'Power Utility of the Year' Award at Asian Power Awards 2007

Subject has won the 'Power Utility of the Year' award at 'Asian Power Awards 2007'. Asian Power Awards are the industry's leading awards independently judging the best in the power industry in entire Asia. There are total of 25 awards of which ten go to power plants and the rest to companies and projects. The awards are aimed at recognizing the broad spectrum of Asia's power supply industry and acknowledging the vital input from all elements of this industry.

8. 'Most Admired Organization in the Joint Sector/Private Sector' award

Subject has been presented the Power Line 'Expert Choice Awards' for the 'Most Admired Organization in the Joint Sector/ Private Sector'. The awards were given by Mr Sushil Kumar Shinde, Union Minister of Power.The awards are based on a first of its kind 'Eminent Expert Opinion Survey' by Power Line, a premier magazine for the Indian power sector, in which sector specialists were asked to give their opinion on various criteria pertaining to Power sector

9. Asian Power Award 2006 for Excellence in Service Enhancement

Subject has won Asian Power Awards 2006 for Excellence in Service Enhancement. Asian Power Awards are the industry's leading awards independently judging the best in the power industry in entire Asia. There are total of 25 awards of which ten go to power plants and the rest to companies and projects. The awards are aimed at recognizing the broad spectrum of Asia's power supply industry and acknowledging the vital input from all elements of this industry. The award conferred on subject is in recognition to its outstanding achievement throughout the year and fortifies it status as a leader in the power industry

10. Achievers Award for settling 10,000 cases in record time

Subject has successfully settled 10,000 cases in PLAs, Special Lok Adalats under the aegis of DLSA during the period October 2003- July 2006. The award was presented to subject by the Hon'ble Chief Justice Delhi High Court for this landmark achievement. It is record in the history of Alternate Disputes Resolution (ADR) Mechanism (under the Legal Services Authority Act, 1987).

11. TBEM Score Band 551-650

It is a matter of joy and pride that in TBEM External Assessment 2008, Subject has moved from previous score band of 451-550 to the upper band of 551-650, which distinguishes them as 'Emerging Industry Leader'. The TBEM Excellence framework is practiced in almost all TATA organization and is based on the renowned Malcolm Baldridge Award Instituted in the United States

12. CII EXIM AWARD for Strong Commitment to Excel

Subject is the youngest and only Power Distribution utility in India to have been bestowed with this prestigious award for exhibiting strong commitment to excel

13. ISO 9001, ISO 14001 and OHSAS 18001

Subject is a certified ISO 9001, ISO 14001 and OHSAS 18001 company which bears testimony to its commitment to Quality, Environment Management and Safety related aspects of Power Distribution.

14. NABL Accreditation for Subject's Meter Testing Lab

Subject became the 1^st power utility in Northern India to receive accreditation for it's state-of-the art meter testing lab from NABL (National Accreditation Board for Testing and Calibration Laboratories). NABL is an autonomous body established under the aegis of Department of Science and Technology, Government of India. The accreditation signifies that the applied testing results of Subject’s Lab are legally valid and at par with test results of any laboratory across the globe.

15. Intelligent Enterprise Award

Subject’s billing system and other consumer friendly IT interventions have made them achieve the Intelligent Enterprise Award instituted by the Indian Express Group two years in succession.

16.Annual Bhagidari Award for 'Outstanding Work in Promoting Bhagidari Initiative' for the year 2006-07

Subject won the Annual Bhagidari Award for 'Outstanding Work in Promoting Bhagidari Initiative' for the year 2006-07. Smt.Sheila Dikshit, Hon'ble Chief Minister of Government of Delhi, presented the award to Team NDPL at the awards ceremony in the 'Bhagidari Utsav 2007' organized at Pragati Maidan on February 2^nd and 3^rd, 2007 by the Government of Delhi.

17. National Award to NDPL for Meritorious Performance in Power Distribution

Subject was awarded the prestigious silver 'National Award for Meritorious Performance for 2004-2005 and 2005-2006' in Power Distribution by the Hon'ble Prime Minister of India Dr. Man Mohan Singh

The award, instituted by Ministry of Power, Government of India, was conferred in recognition of NDPL's outstanding performance in power distribution.

18. 'PCQuest Best Information Technology (IT) Implementation Award 2007'

Subject won the PC Quest Best IT Implementation Award for successful implementation of GIS (Graphical Information System) in its distribution network of North and North West Delhi. NDPL was awarded the most challenging project award.

The usage of GIS by NDPL has been touted as an innovative use of IT wherein it has created a GIS map of North Delhi and has captured every detail down to the last street along with each and every piece of electrical equipment including grids, transformers, wires etc in it's electricity distribution area.

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 records 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.49.42
UK Pound	1	Rs.76.72
Euro	1	Rs.65.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.