Reliance Inf S Regulatory News (RIFS)

Notes:

1. The final determination in the matter of Standby Charges payable for the years 1998-99 to 2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme Court for final hearing. The Company has so far fully accounted the liability of Rs. 515.60 crore as determined earlier by Maharashtra Electricity Regulatory Commission (MERC).

2. The final determination in respect of the claim by TPC of Rs. 323.87 crore, along with interest based on the Orders passed by MERC / Appellate Tribunal for Electricity (ATE) towards difference in energy charge and minimum offtake charges for energy supplied by TPC at 220 kV interconnection is pending before Supreme Court for final hearing. The Company has complied with the interim order direction of depositing Rs. 25 crore with the Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98 crore.

3. The Committee of Whole-time Directors at its meeting held on February 25, 2009 approved a Scheme of Restructuring envisaging transfer of various operating divisions of the Company. Consequently the Dahanu thermal power station division; Goa and Samalkot power station division; power transmission division; power distribution division (together considered under electrical segment); toll roads division and real estate division (together considered under other operations segment) will be transferred to its respective, resulting six wholly owned subsidiaries with effect from March 31, 2009.

This Scheme has since been sanctioned by the Bombay High Court on September 09, 2009 subject to the Company receiving requisite approvals and the same has been filed with the Registrar of Companies on September 14, 2009. Implementation of the said scheme in the financial statements is contingent upon receipt of requisite approvals.

Accordingly the disclosures in respect of continuing and discontinuing operations are as under:

(Rs. Crore)

4. There were no exceptional / extraordinary items during the quarter and nine months ended December 31, 2010.

5. Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended December 31, 2010: opening: Nil; additions: 11; disposals: 11; closing: Nil.

6. During the quarter, Utility Infrastructure & Works Private Limited has become a subsidiary of the Company.

7. The aforesaid standalone financial results were reviewed by the Audit Committee of the Board at its meeting held on February 13, 2011 and subsequently approved by the Board of Directors on February 14, 2011. The statutory auditors of the Company have carried out a "Limited Review" of the above financial results of the Company, as per the listing agreement entered into with the stock exchanges in India.

8. Figures of the previous year / period have been regrouped / reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: February 14, 2011 Chairman

Notes:

1. The final determination in the matter of Standby Charges payable for the years 1998-99 to 2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme Court for final hearing. The Parent Company has so far fully accounted the liability of Rs. 515.60 crore as determined earlier by Maharashtra Electricity Regulatory Commission (MERC).

2. The final determination in respect of the claim by TPC of Rs. 323.87 crore, along with interest based on the Orders passed by MERC / Appellate Tribunal for Electricity (ATE) towards difference in energy charge and minimum offtake charges for energy supplied by TPC at 220 kV interconnection is pending before Supreme Court for final hearing. The Parent Company has complied with the interim order direction of depositing Rs. 25 crore with the Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98 crore.

3. The Committee of Whole-time Directors at its meeting held on February 25, 2009 approved a Scheme of Restructuring envisaging transfer of various operating divisions of the Parent Company. Consequently the Dahanu thermal power station division; Goa and Samalkot power station division; power transmission division; power distribution division (together considered under electrical segment); toll roads division and real estate division (together considered under other operations segment) will be transferred to its respective, resulting six wholly owned subsidiaries with effect from March 31, 2009.

This Scheme has since been sanctioned by the Bombay High Court on September 09, 2009 subject to the Parent Company receiving requisite approvals and the same has been filed with the Registrar of Companies on September 14, 2009. Implementation of the said scheme in the financial statements is contingent upon receipt of requisite approvals.

The Committee of Directors, at its meeting held on May 27, 2010, have approved sale of (i) investment in BSES Kerala Power Limited, a wholly owned subsidiary and (ii) investment of Reliance Energy Generation Limited (a wholly owned subsidiary) in Reliance Goa and Samalkot Power Limited to Reliance Power Limited upon implementation of the above Scheme.

4. There were no exceptional / extraordinary items during the quarter and nine months ended December 31, 2010.

5. Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended December 31, 2010: opening: Nil; additions: 11; disposals: 11; closing: Nil.

6. During the quarter, Utility Infrastructure & Works Private Limited has become a subsidiary of the Parent Company. There is no material impact on the financial results on account of the same.

7. The Company has opted to publish consolidated financial results for the year 2010-11. Standalone financial results, for the quarter and nine months ended December 31, 2010 can be viewed on the websites of the Company, National Stock Exchange of India Limited and Bombay Stock Exchange Limited at www.rinfra.com, www.nseindia.com and www.bseindia.com respectively. Key standalone financial information is given below:

(Rs. Crore)

8. The aforesaid financial results were reviewed by the Audit Committee of the Board at its meeting held on February 13, 2011 and subsequently approved by the Board of Directors on February 14, 2011.

9. Figures of the previous year / period have been regrouped / reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: February 14, 2011 Chairman

MEDIA RELEASE

NET PROFIT * OF Rs 277 CRORE (US$ 60 MILLION) FOR THE QUARTER - AN INCREASE OF 10 %

TOTAL OPERATING INCOME **OF Rs 2,287 CRORE (US$ 492 MILLION) FOR THE QUARTER

EPC ORDERBOOK POSITION AT Rs 18,970 CRORE (US$ 4.1 BILLION)

COMPANY HAS CASH & CASH EQUIVALENTS OF OVER Rs 7,800 CRORE

(US$ 1.7 BILLION)

* Profit would have been higher by Rs 58 crore to Rs 335 crore, an increase of 33 % from corresponding period of previous year, had the company accounted the additional net sales of electrical energy of Rs 70 crore

** Reduction due to reduced FAC owing to lower cost of power purchased

Mumbai, January 29, 2010: Reliance Infrastructure Limited today announced its un-audited financial results for the quarter ended December 31, 2009. The performance highlights are:

·; Total Operating Income of Rs 2,287 crore (US$ 492 million), against Rs 2,718 crore in the corresponding period of previous year. The reduction in income is due to reduced FAC owing to lower cost of power purchased.

·; Net Profit of Rs 277crore(US$ 60 million) against Rs 251 crore in the corresponding period of previous year. This profit would have been higher by Rs 58 crore, had the company accounted additional net sales of electrical energy of Rs 70 crore giving effect to the tariff hike which has been temporarily stayed by MERC.

·; Cash Profit of Rs 346 crore (US$ 74 million), against Rs 325 crore in the corresponding period of previous year, an increase of 6 %

·; Annualised Cash Earnings Per Share (Cash EPS) of Rs 74(US$ 1.6), against Rs 66 in the corresponding period of previous year, an increase of 12 %

·; Annualised Earnings Per Share (EPS) of Rs 55(US$ 1.2), against Rs 46 in the corresponding period of previous year, an increase of 20 %

On standalone basis, the net worth of the Company stood at Rs 13,732 crore (US$ 3 billion) and book value per share at Rs 609 as on December 31, 2009.

The Company has over Rs 7,800 crore (US$ 1.7 billion) of cash & cash equivalents as on December 31, 2009. Of the cash and cash equivalents, more than Rs 2,250 crore (US$ 484 million) is in cash and liquid mutual funds. The company doesn't have any exposure to equity markets.

The Company's total debt is Rs 4,418 crore (US$ 949 million). The Company remains debt free at the net level, and enjoys the top-end ratings of 'AA+' and 'AA' by CRISIL and FITCH, respectively

Financial Review

The total sales of electrical energy during the quarter ended December 31, 2009 was Rs 1,600 crore (US$ 344 million), against Rs 1,966 crore in the corresponding period of previous year. The reduction in sales was due to reduced FAC owing to lower cost of power purchased.

The turnover of the EPC Division for the quarter ended December 31, 2009 was Rs 635 crore (US$ 136 million) against Rs 682 crore in the corresponding previous period. The division had a recordorder book position of about Rs 18,970 crore (US$ 4.1 billion) as on December 31, 2009.

Other Operating Income for the quarter was Rs 52 crore (US$ 11 million) as against Rs 70 crore in the corresponding period of previous year.

During the period under review, total operating income of the Company was Rs 2,287 crore (US$ 492 million) against Rs 2,718 crore in the corresponding quarter of previous year.

The Company's Earnings Before Interest, Depreciation and Tax (EBIDT) was Rs 451 crore (US$ 97 million) during the period, against Rs 456 crore in the corresponding quarter of previous year.

Depreciation was at Rs 83 crore (US$ 18 million)as against Rs 59 crore for the corresponding quarter of previous year.

The corporate tax liability, including the deferred taxes, for the quarter ended December 31, 2009 was Rs 34 crore (US$ 7 million), as against Rs 56 crore in the corresponding quarter of previous year.

Net Profit for the quarter ended December 31, 2009 recorded an increase of 10 % to Rs 277 crore (US$ 60 million) from Rs 251 crore in the corresponding quarter of previous year.

Due to the stay order from MERC over tariff hike, there is non-accrual of sale of electrical energy of Rs 70 crore in this quarter, which would be accounted as and when stay is withdrawn. Otherwise, the net profit would have been higher at Rs 335 crore (US$ 72 million), an increase of 33 % from corresponding period of previous year.

During the period under review, the annualised cash earnings per share (CEPS) was Rs 74, an increase of 12 %.

Annualised Earnings Per Share (EPS) for the quarter ended December 31, 2009 was Rs 55 an increase of 20 %.

Management Discussion and Analysis

Energy Sales

The Company achieved aggregate sales of electrical energy of 2,459 million units during the quarter ended December 31, 2009, against 2,407 million units in the corresponding period of previous year, an increase of 2 %.

The Company's aggregate revenues from energy sales were Rs 1,600 crore (US$ 344 million) compared to Rs 1,966 crore in the corresponding period of previous year. The reduction in income is due to reduced FAC owing to lower power purchase cost.

Mumbai Distribution

The Mumbai distribution business achieved aggregate sales of electrical energy of 2,080 million units during the period under review, against 2,090 million units in the corresponding period of previous year. The sale is reduced due to migration of about 6,400 customers to Tata Power. However, there is no impact on the profitability as the Company continues to receive wheeling charges from the migrated customers, as all customers are on R Infra network.

The Company's aggregate revenues from energy sales in Mumbai Distribution were Rs 1,450 crore (US$ 312 million) compared to Rs 1,828 crore in the corresponding period of previous year. The reduction in revenue is due to reduced FAC owing to lower cost of power purchased.

During the period under review, the Company purchased 1,361 million units of electrical energy from external sources as compared to 1,407 million units purchased in the corresponding period of previous year, a decline of 3 %.

The cost of energy purchased decreased by 28 % to Rs 891 crore (US$ 191 million) during the period under review, owing to decrease in per unit cost to Rs 6.53 for the period against Rs 8.74 in the previous period.

EPC Business 

The Division had order book position of about Rs 18,970 crore (US$ 4.1 billion) as on December 31, 2009.

Currently, the EPC Division is working on 6 power projects and implementing over 7,000 MW of power projects along with one road project as:

Energy Trading Business

The division has traded 777 million units in the quarter as compared to 627 million units in corresponding period in previous year, an increase of 24 %.

Quantum (in units) under assured trading arrangements for the coming years having as on date is about 30,000 million units.

Projects under Development

The Company is developing 15 projects aggregating around Rs 28,000 crore (US$ 6 billion) of Transmission, Road and Metro rail projects excluding 5 Airports and 2 Specialty Real Estate Projects. The Company has become the country's largest infrastructure company on an ownership basis.

Of these 15 projects, 7 projects totaling over Rs 10,000 crore (US$ 2.1 billion) should be operational in FY11.

Roads

Developing 9 road projects of 730 kms worth Rs 7,350 crore (US$ 1.6 billion). Of which two are operational and the other 4 road projects are expected to be operational in FY11. The toll collection from Pune Satara road project should start from Q1FY11.

Metro Rails

The Company is the only private player in metro rail projects in the Country. Developing 3 metro rail projects in Mumbai and Delhi worth over Rs 16,000 crore (US$ 3.4 billion). Mumbai Metro Line 1 and Delhi Airport Express Link will be operational in FY11.

* includes construction period

Above all, R Infra have been awarded as 'Most Admired Infrastructure Company - Overall' and Metro Line 1 of Mumbai has been awarded 'Project of the year' in 2nd KPMG Infrastructure Today Awards 2010.