Notes to Accounts of Indian Energy Exchange Ltd.

Mar 31, 2025

3.6. Provisions (other than employee benefits) and
contingent liabilities

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect of
the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money
and the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised
as a finance cost.

The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at reporting
date, taking into account the risks and uncertainties surrounding
the obligation.

When some or all of the economic benefits required to settle a
provision are expected to be recovered from a third party, the
receivable is recognised as an asset if it is virtually certain that
reimbursement will be received, and the amount of the receivable
can be measured reliably. The expense relating to a provision
is presented in the statement of profit and loss net of any
reimbursement.

Contingent liability is a possible obligation arising from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more future events not
wholly within the control of the Company or a present obligation
that arises from past events but is not recognised because it is
not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount
of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are disclosed on the basis of judgment of
the management/ independent experts. These are reviewed at
each balance sheet date and are adjusted to reflect the current
management estimate.

Contingent asset is not recognised in standalone financial
statements since they may result in the recognition of income that
may never be realised. However, when the realization of income
is virtually certain, then the related asset is not a contingent asset
and is recognised. Further, the contingent assets are reviewed at
each Balance sheet date.

3.7 Income

3.7.1 Revenue from contract with customer

Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
The transaction price of services rendered is net of variable

consideration on account of various discounts and schemes
offered by the company as part of the contract.

Transaction fee is charged based on the volume of transactions
entered into by the respective member or client of trader/
professional member through the exchange. Fee charged in
relation to transactions under the Day Ahead Market, Green Day
Ahead Market, High Price- Day Ahead Market and the Renewable
Energy Certificate segment, is accrued when the orders placed
on the network are matched and confirmed by National Load
Dispatch Centre. Fee charged in relation to transactions under
the Term Ahead Market, High Price-Term Ahead Market and
Green Term Ahead Market is accrued when orders placed on
the network are matched, confirmed by Regional Load Dispatch
Centre and delivered. Fee charged in relation to transactions
under the Real Time Market segment is accrued when orders
placed on the network are matched, confirmed by National Load
Dispatch Centre and delivered.

Membership fees charged from a member of the exchange at the
time of admission to the exchange is recognised on a pro-rata
basis over the estimated period of time over which the services
are expected to be provided.

Annual subscription fee, in the month when the member is
registered for the first time, is recognised on commencement
of trading that coincides with the registration of trader member/
client of member on a pro-rata basis. Annual subscription fee,
in the month when the client is registered for the first time, is
recognised on registration of client on a pro-rata basis.

Annual subscription fee, in any year subsequent to the year of
registration, is recognised on a pro-rata basis over a period of
twelve months from the month of re-registration.

The invoices against transaction fee, membership fee and annual
subscription fee are due for payment from the invoice date.

The Company accounts for volume discounts and pricing
incentives to customers by reducing the amount of revenue
recognised at the time of services rendered. Revenues are shown
net of goods and service tax and applicable discounts and
allowances.

3.7.2 Recognition of Dividend Income, Interest Income and
profit on sale of Investment

Interest income is recognised, when no significant uncertainty as
to measurability or collectability exists, on a time proportion basis
taking into account the amount outstanding and the applicable
interest rate, using the effective interest rate method (EIR).

Dividend income is recognised in the statement of profit and
loss on the date that the Company''s right to receive payment
is established, which in the case of quoted securities is the ex¬
dividend date.

Profit on sale of investments is determined as the difference
between the sales price and carrying value of the investments at
the time of disposal of these investments.

3.8 Employee Benefits

3.8.1 Short term employee benefits

All employee benefits payable wholly within twelve months of
rendering the services are classified as short-term employee
benefits. Benefits such as salaries, wages, bonus, etc. are
recognised in the statement of profit and loss in the period
in which the employee renders the related services. Such
obligations are measured on an undiscounted basis.

A liability is recognised for the amount expected to be paid under
short-term cash bonus, if the Company has a present legal or
constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be
estimated reliably.

3.8.2 Defined contribution plan

A defined contribution plan is a post-employment benefit plan
under which the Company''s legal or constructive obligation is
limited to the amount that it contributes to a separate legal entity.
Obligations for contributions to defined contribution plans are
recognised as an employee benefits expense in the statement of
profit and loss in the period during which services are rendered by
employees.

The Company pays fixed contribution to Provident Fund at
predetermined rates to regional provident fund commissioner.
The contributions to the fund for the year are recognised as
expense and are charged to the statement of profit and loss in
which the related services are provided by the employees.

3.8.3 Defined benefit plan

A defined benefit plan is a post-employment benefit plan other
than a defined contribution plan. The Company''s liability towards
gratuity is in the nature of defined benefit plans.

The Company''s net obligation in respect of defined benefit plan is
calculated separately by estimating the amount of future benefit
that employees have earned in return for their service in the
current and prior periods; that benefit is discounted to determine
its present value. Any unrecognised past service costs and the fair
value of any plan assets are deducted. The discount rate is based
on the prevailing market yields of Indian government securities as
at the reporting date that have maturity dates approximating the
terms of the Company''s obligations and that are denominated in
the same currency in which the benefits are expected to be paid.

When the benefits of a plan are changed or when a plan is
curtailed, the resulting change in benefit that relates to past
service (''past service cost'' or ''past service gain'') or the gain or
loss on curtailment is recognised immediately in Statement of
profit and Loss. The Company recognises gains and losses on
the settlement of a defined benefit plan when the settlement
occurs.

The calculation is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in
a benefit to the Company, the recognised asset is limited to the

total of any unrecognised past service costs. Any actuarial gains
or losses are recognised in Other Comprehensive Income (OCI) in
the period in which they arise.

3.8.4 Other long term employee benefits

Benefits under the Company''s compensated absences constitute
other long term employee benefits.

Cost of long-term benefit by way of accumulating compensated
absences arising during the tenure of the service is calculated
taking into account the pattern of availment of leave. In respect of
encashment of leave, the defined benefit is calculated taking into
account all types of decrements and qualifying salary projected
up to the assumed date of encashment. The present value of
obligations under such long-term benefit plan is determined
based on actuarial valuation carried out by an independent
actuary using the Projected Unit Credit Method as at period end.

3.8.5 Share based payments

The grant date fair value of equity settled share-based payment
awards granted to employees is recognised as an employee
benefits expense, with a corresponding increase in other equity,
over the vesting period of the award. The amount recognised as
expense is adjusted to reflect the number of awards for which
the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognised
as an expense is based on the number of awards that do meet
the related service and non-market vesting conditions at the
vesting date. For share-based payment awards with non-vesting
conditions, the grant date fair value of the share-based payment
is measured to reflect such conditions and there is no true-up for
differences between expected and actual outcome.

When the terms of an equity-settled award are modified, the
minimum expense recognised by the Company is the grant date of
the unmodified award provided the vesting conditions (other than
a market condition) specified on grant date of the award are met

Further, additional expense, if any, is measured and recognised as
at the date of modification, in case such modification increases
the total fair value of the share-based payment plan, or is
otherwise beneficial to the employee.

3.9 Impairment of non-financial assets

The Company’s non-financial assets, other than deferred tax
assets, are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists,
then the asset''s recoverable amount is estimated.

For assets that are not yet available for use, the recoverable
amount is estimated at each reporting date.

The recoverable amount of an asset or cash-generating unit is
the higher of its fair value less costs to disposal and its value in
use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value
of money and the risks specific to the asset. For the purpose of
impairment testing, assets that cannot be tested individually are

grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of
the cash inflows of other assets or groups of assets (the "cash¬
generating unit", or "CGU").

An impairment loss is recognized if the carrying amount of an
asset or its CGU exceeds its estimated recoverable amount.
Impairment losses are recognized in the statement of profit
and loss. Impairment losses recognized in respect of CGUs are
reduced from the carrying amounts of the assets of the CGU.

Impairment losses recognized in prior periods are assessed
at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed
if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only
to the extent that the asset''s carrying amount does not exceed
the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been
recognized.

3.10 Leases

3.10.1 Accounting for operating leases- As a lessee

The Company''s lease assets classes primarily consist of lease
for office premises. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Company assesses
whether:

a) the contract involves the use of an identified asset

b) the Company has substantially all of the economic benefits
from use of the asset through the period of the lease and
the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short¬
term leases) and low value leases. For these short-term and low
value leases, the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term of the
lease. Certain lease arrangements include the options to extend or
terminate the lease before the end of the lease term. ROU assets
and lease liabilities includes these options when it is reasonably
certain that they will be exercised. The right-of-use assets are
initially recognised at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at
or prior to the commencement date of the lease plus any initial
direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or
the site on which its is located, less any lease incentives received.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

Right-of-use assets is subsequently depreciated using the
straight-line method from the commencement date to the earlier
of the end of the useful life of the right-of-use asset or the end
of the lease term, unless the lease transfers ownership of the
underlying asset to the Company by the end of the lease term or
the cost of the right-of-use-asset reflects that the Company will
exercise a purchase option. In that case, the right-of-use asset
will be depreciated over the useful life of the underlying asset,
which is determined on the same basis as those of property, plant
and equipment. In addition, the Right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.

The lease liability is initially measured at the present value of the
lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company''s incremental
borrowing rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.

Lease payments include in the measurement of the lease liability
comprise the following:

• fixed payments, including in substance fixed payments;

• variable lease payments that depend on an index or a
rate, initially measured using the index or rate as at the
commencement date

• amounts expected to be payable under a residual value
guarantee and

• the exercise price under a purchase option that the
Company is reasonably certain to exercise, lease payments
in an optional renewal period if the Company is reasonably
certain to exercise an extension option, and penalties
for early termination of a lease unless the Company is
reasonably certain not to terminate early

The lease liability is measured at the amortised cost using the
effective interest method. It is remeasured when there is change
in future lease payments arising from a change in index or
rate, if there is a change in Company''s estimate of the amount
expected to be payable under a residual value guarantee, if the
Company changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised
in-substance fixed lease payment. When the lease liability is re¬
measured in this way, a corresponding adjustment is made to
the carrying amount of the right-of-use asset, or is recorded in
statement of profit and loss if the carrying amount of right-of-use
asset has been reduced to zero

The Company has elected not to recognise right-of-use asset
and lease liabilities for leases of low-value assets and short-term
leases. The Company recognises the lease payments associated
with these leases as an expense in statement of profit and loss on
a straight-line basis over the lease term.

• less any lease incentives receivable, variable lease payment
that depends on index or a rate, and amount to be paid
under residual value guarantees. The lease payments are

discounted using the interest rate implicit in the lease or,
if not readily determinable, the Company uses incremental
borrowing rates. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

3.11 Income Tax

Income tax expense comprises current and deferred tax. It is
recognised in the statement of profit and loss except to the extent
that it relates to items recognised directly in other comprehensive
income or equity, in which case it is recognised in OCI or equity.

Current tax comprises the expected tax payable or receivable on
the taxable income or loss for the year and any adjustment to the
tax payable in respect of previous years. The amount of current
tax payable or receivable is the best estimate of the tax amount
expected to be paid or received that reflects uncertainty related
to income taxes, if any. It is measured using tax rates enacted or
substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if there is a legally
enforceable right to set off the recognised amounts, and its
intended to realize the asset and settle the liability on a net basis
simultaneously.

Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts
used for taxation purposes. Deferred tax is measured at the
tax rates that are expected to apply to the period when the
asset is realised, based on the laws that have been enacted or
substantively enacted by the reporting date. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle current tax
liabilities and assets on net basis or their tax assets and liabilities
will be realised simultaneously.

Deferred tax is recognised in the statement of profit and loss
except to the extent that it relates to items recognised directly in
OCI or equity, in which case it is recognised in OCI or equity.

A deferred tax asset is recognised to the extent that it is probable
that future taxable profits will be available against which the
temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realized.

Deferred tax is not recognised for:

• temporary differences on the initial recognition of assets or
liabilities in a transaction that:

¦ is not a business combination

¦ at the time of transaction (i) affects neither accounting
nor taxable profit or loss and (ii) does not give rise to
equal taxable and deductible temporary difference.

• temporary differences related to investment in subsidiaries,
associates and joint arrangements to the extent that the
Company is able to control the timing of the reversal of the
temporary differences and it is probable that they will not
reverse in the foreseeable future.

• taxable temporary differences arising on the initial
recognition of goodwill.

3.12 Earning per share

Basic earnings per equity share is computed by dividing the net
profit or loss attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding
during the financial year. The weighted average number of equity
shares outstanding during the year is adjusted for bonus issue,
bonus element in a rights issue to existing shareholders, share
split and reverse share split (consolidation of shares).

Diluted earnings per equity share is computed by dividing the net
profit or loss attributable to equity shareholders of the Company
by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares.

3.13 Operating segment

An operating segment is a component of the Company that
engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate
to transactions with any of the Company''s other components,
and for which discrete financial information is available. In
accordance with Ind AS 108, the operating segments used

to present segment information are identified on the basis of
internal reports used by the Company''s management to allocate
resources to the segments and assess their performance.

The Chairman & Managing Director along with the Board of
Directors is collectively the Company''s ''Chief Operating Decision
Maker'' or ''CODM'' within the meaning of Ind AS 108. The indicators
used for internal reporting purposes may evolve in connection
with performance assessment measures put in place.

3.14 Cash flow statement

Cash flows are reported using the indirect method, whereby profit
or loss for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The
cash flows from operating, investing and financing activities of
the Company are segregated.

3.15 Recent Pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. MCA
has notified Ind AS - 117 Insurance Contracts and amendments
to Ind AS 116 - Leases, relating to sale and leaseback
transactions, applicable w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its evaluation
has determined that it does not have any impact in its financial
statements.

17. Equity share capital (Contd...)

at a weighted average buyback price of '' 140.45 per equity share comprising 0.78% of the pre buyback paid up equity share capital of the
Company. The buyback resulted in a cash outflow of '' 9,798.96 (excluding transaction costs and tax on buyback). The Company funded the
buyback from its free reserves in accordance with the provision of Section 68 of the Companies Act, 2013. In accordance with Section 69 of
the Companies Act, 2013, as at 31 March 2023, the Company had created a ''Capital Redemption Reserve'' of '' 69.77 equal to the nominal
value of the above shares bought back as an appropriation from the general reserve.

During the year ended 31 March 2022, the Company had issued 599,113,022 equity shares of '' 1 each as fully paid-up bonus shares
representing a ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date.

There are no shares issued for consideration other than cash and no shares were bought back during the period of 5 years immediately
preceding the reporting date, except mentioned above.

36. Employee benefits

(i) Defined contribution plans:

Provident fund and National Pension Scheme

The Company makes contributions, determined as a specified percentage of employees'' salaries, in respect of qualifying employees towards
Provident Fund (PF) and National Pension Scheme (NPS). The contributions are charged to the Statement of Profit and Loss as they accrue.
The amount recognized as expense towards such contributions for the year aggregated to '' 203.45 (31 March 2024: '' 192.31)

(ii) Defined benefit plans:

Gratuity

The Company has a defined benefit plan that provides for gratuity. The gratuity plan entitles all eligible employees who have completed five
years or more of service to receive half month''s salary for each year of completed service at the time of retirement, superannuation, death
or permanent disablement, in terms of the provisions of the payment of Gratuity Act, 1972. The following table summarizes the position of
assets and obligations:

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity and the amounts recognised
in the Company''s financial statements as at balance sheet date:

37. Leases

Leases where the Company is a lessee:

The Company has entered into lease transactions mainly for leasing of office premise for a period between 1 to 9 years. The terms of
lease include terms of renewal, increase in rents in future periods, which are in line with general inflation, and terms of cancellation. None
of the leases consists of any variable lease payment terms. Extension and termination options are included in a number of property lease
arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s
operations. The majority of extension and termination options held are exercisable based on mutual consent of the Company and respective
lessors and uses to assess the short term leases. The aggregate depreciation expense on Right of Use assets is included under depreciation
and amortization expense in the Statement of Profit and Loss. (Also, refer note-4(a)).

39. Contingent liabilities

a) The Additional Commissioner (Adj.) CGST Delhi issued an order raising a service tax demand of '' 170.88 for reversal of cenvat credit for
the period April 2013 to June 2017 and also imposed equivalent penalty of '' 170.88 in financial year 2021-22, against which the Company
had filed an appeal before the Hon''ble Custom, Excise & Service Tax appellate Tribunal, Delhi (CESTAT). As on date, the matter is pending for
hearing before CESTAT. While the ultimate outcome of the above mentioned appeals cannot be ascertained at this time, based on current
knowledge of the applicable law, management believes that matter raised by department is not tenable and highly unlikely to be retained and
accordingly believe that no amount will be payable to the concerned authorities.

b) The Sales Tax Officer (Adjudicating Authority-GST Delhi) issued an order dated 28 August 2024 raising a demand of the Tax amount of ''
260.71 along with Interest of '' 216.97 and penalty of '' 26.08, against which the Company had filed an appeal before the Appellate Authority,
Delhi - Goods and Service Tax. As on date, the matter is pending for hearing before Authority. While the ultimate outcome of the above-
mentioned appeals cannot be ascertained at this time, based on current knowledge of the applicable law, management believes that matter
raised by department is not tenable and highly unlikely to be retained and accordingly believe that no amount will be payable to the concerned
authorities.

40. Corporate social responsibility

a) Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of various projects/ programmes as
covered under Schedule VII of the Companies Act. Details of expenses incurred are given below:-

31 March 2025

i) Gross amount required to be spent by the Company during the year was '' 841.84

ii) Amount approved by the Board to be spent during the year was '' 101.00 (excluding adminstration cost)

iii) The Company has brought forward ''709.21 excess CSR amount spent in previous financial year(s) and further paid '' 101.00 for CSR
activities during the financial year 2024-25. The total CSR expenditure for the financial year 2024-25 amounted to '' 810.21, with
administrative overheads of '' 31.63, the total CSR spent of the Company for the financial year 2024-25 was '' 841.84. The Company has
fully met its CSR spending requirements for the year ended March 31,2025.

v) Nature of CSR activities - For the financial year 2024-25, the Company''s CSR activities, in alignment with Schedule VII of the Companies
Act, 2013, focused on the protection of national heritage, art, and culture, including the restoration of historical buildings, sites, and works
of art; eradicating hunger and malnutrition; promoting healthcare; advancing education; enhancing vocational skills; supporting the
upliftment of women, adolescent girls, and destitute elderly individuals; and supporting persons with disabilities through initiatives such
as providing nutritious meals, funding cataract surgeries, supporting educational programs, empowering youth with vocational training,
and promoting digital empowerment for women and girls in rural areas.

31 March 2024

i) Gross amount required to be spent by the Company during the year was '' 679.38

ii) Amount approved by the Board to be spent during the year was '' 700.00 (excluding adminstration cost)

iii) The Company has brought forward '' 656.25 excess CSR paid in previous year(s) and further paid '' 732.35 towards CSR activities during
the financial year 2023-24. Out of total amount of '' 1,388.60, the Company utilised '' 679.38 towards current year''s CSR obligation, and
carried forward balance '' 709.21 for set off in subsequent years.

* The carrying amounts of the above mentioned financial assets and financial liabilities approximate their fair value due to their nature.

There are no transfers among levels 1, 2 and 3 during the year.

Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

Level 1: the use of quoted market prices for quoted mutual funds, market linked debentures and unit of Invit
Level 2: the use of NAV for unquoted mutual funds

Level 3: the fair value of the remaining financial instruments is determined using an appropriate discounting rate

42. Financial Risk Management

The Company''s activities expose it to the followings risks arising from financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and
processes for measuring and managing risk.

Risk Management framework

The Company''s Board of Directors ("the Board") has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. The Board provides written principles for overall risk
management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest
rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The
Company''s risk management is carried out by an Enterprise Risk Management Committee under risk policy approved by the Board.

The Company''s Audit Committee oversees how management monitors compliance with Company''s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to risks faced by the Company.

42. Financial Risk Management (Contd...)

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations. The carrying amount of the financial assets represents maximum credit exposure.

Credit risks on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high
credit ratings assigned by domestic credit agencies. Investments primarily include investments in mutual fund units, commercial papers,
market linked debentures, infrastructure investment units, target maturity funds, fixed maturity plans and investment in bonds with fixed
interest income. The management actively monitors the net asset value of investments in mutual funds, infrastructure investment units,
interest rate and maturity period of investment in bonds and commercial papers. The Company does not expect the counterparty to fail
in meeting its obligations. However, investment in target maturity funds, fixed maturity plans, market linked debentures are exposed to
uncertainties as regards to fulfilment of obligations by counter-party. The Company has not experienced any significant impairment losses
in respect of any of the investments. In respect of other financial assets including security deposit, the credit risk associated is relatively low.
Accordingly, no provision for expected credit loss has been provided on such financial assets.

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its
members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as
members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other
charges and exchange fees on or before the delivery and pays out the amount to seller for sale of power one day after delivery. Further,
transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain
settlement guarantee funds for settlement of defaults by any of the members/ clients.

42. Financial Risk Management (Contd...)

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by payments or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, comprising total cash (including bank deposits under lien) and short-term investments and
anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of
business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to
meet its ongoing capital, operating and other liquidity requirements.

Market risk

Market risk is the risk that future cash flows of financial instruments will fluctuate because of change in market price. Market comprises
two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency Risk is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates.
The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows
since all financial assets / liabilities are receivable / payable in Indian currency.

B. Interest rate risk

Interest rate risk is the risk that future cash flows of financial instruments will fluctuate because of change in market interest risks. The
profile of the Company''s interest bearing financial instruments is as follows:

43. Capital Management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue
to provide returns to shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of
capital. The Company does not have any debt outstanding as on 31 March 2025 and 31 March 2024.

44. Operating segments

The Company is a power exchange. The entire operations are governed by similar set of risk and returns. Accordingly, the Company''s
activities/ business is reviewed regularly by the Company''s Chairman & Managing Director alongwith the Board of Directors of the Company,
from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only
one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

45. Additional Disclosures

a) The Company does not have any immovable property other than properties where the Company is a lessee and the lease agreements are
duly executed in favour of the lessee.

b) The Company has not revalued its property, plant and eguipment (including Right-of-Use Assets) and intangible assets during the current
and previous year.

c) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

d) The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender during the current and previous
year.

e) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period during the current and previous year.

f) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf
of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) There are no funds which have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on
behalf of the Funding Party or

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

h) There are no transactions which have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
during the current and previous year.

i) The Company has not traded or invested in Crypto currency or Virtual currency during the curent and previous year.

j) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956 during the current and previous year.

Notes:

Considering the nature of Company''s business, the following ratios cannot be meaningfully calculated or are not applicable to the Company:

- Debt-Eguity ratio (For the purpose of this ratio, lease liability has not been considered as debt. Further, the Company has no other debt
outstanding as at 31 March 2025 and 31 March 2024)

- Debt service coverage ratio (For the purpose of this ratio, lease liability has not been considered as debt. Further, the Company has no other
debt outstanding as at 31 March 2025 and 31 March 2024)

- Trade receivable turnover ratio

- Inventory turnover ratio (The Company does not have any inventory as at 31 March 2025 and 31 March 2024)

48. Share based payment arrangements:

a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 ("ESOP 2010"), which was duly
approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares
of '' 10 each (post sub division equivalent to 6,065,720 of '' 1 each) to IEX ESOP Trust ("ESOP Trust") which administers ESOP 2010 on behalf
of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extra-ordinary General Meeting held on 16
May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013
had authorised the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOPs including the vesting period for
selective/ specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested
yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

In the Annual General Meeting of the Company held on 18 September 2018, the Shareholders of the Company had approved the sub-division
of the nominal value of equity shares of the Company from the earlier nominal value of '' 10 each to nominal value of '' 1 each, thereby all the
numbers have been reinstated.

During the financial year 2021-22, the Company has issued bonus equity shares of '' 1 each as fully paid-up bonus shares in the ratio of 2
(Two) equity share for every 1 (One) equity share outstanding on the record date i.e 6 December 2021, accordingly the outstanding options
were adjusted for this corporate action.

50. During the year ended 31 March 2025, the Company has reclassified amount receivable/payable arising out of settlement obligations with
members of the Company''s electricity exchange platform, from ''Trade receivables'' to ''Other financial assets'' amounting to '' 8,548.26 and
from ''Trade payable'' to ''Other financial liabilities'' amounting '' 56,008.82 for better presentation of the nature of these outstanding balances.
Further, considering its nature, the aforesaid reclassification does not materially impact the understanding of the opening balance sheet as
at 1 April 2023.

51. The Company had constituted a separate ''Settlement Guarantee Fund'' (''SGF'') in respect of the activities carried out in various contracts
being traded at the exchange platform. The members are required to contribute interest free margin money which forms part of the SGF.
However, as per CERC order dated 9 October 2018, the Company has to share 70% of the return earned on ''initial security deposits'' with the
Members. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The
Cash Margin Money forming part of SGF is '' 2,406.48 (previous year '' 2,144.25) and same has been disclosed under note 24- Other current
financial liabilities i.e. '' 2,138.30 (previous year '' 2,001.29) under Deposits towards Settlement Guarantee Fund and note 19- Other non
current financial liabilities- Deposits towards Settlement Guarantee Fund i.e. '' 268.18 (previous year '' 142.96). These balances have been
accounted for on amortised cost basis. The Company had also collected non cash portion of the Settlement Fund comprising collateral such
as bank guarantees, received from the members amounting to '' 65.00 (previous year '' 175.00) which does not form part of the Balance
Sheet.

52. The Company receives trading margin deposits from the members corresponding to their average trading volume during last 7 days. Trading
margin money is refundable, subject to adjustments, if any. The Cash Margin Money forming part of trading margin deposits is '' 16,419.77
(previous year '' 11,248.03) and same has been disclosed under note 24 - Other current financial liabilities. The Company has also collected
non cash portion of the trading margin deposits comprising collateral such as bank guarantees, received from the members amounting to ''
2,230.00 (previous year '' 2,130.00) which does not form part of the Balance Sheet.

53. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards
Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be
framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the
Code becomes effective and the related rules are published.

54. The Company had incorporated a wholly-owned subsidiary in India, International Carbon Exchange Private Limited (ICX) on 27 December
2022, to explore business opportunities in the Carbon Market. The Company has invested '' 500 in the form of 5,000,000 Equity shares of face
value of ''10 each.

As per our report of even date attached
For Walker Chandiok & Co LLP

Chartered Accountants ^{For and on behalf of the Board of Directors} °^f

ICAI Firm Registration Number: 001076N/N500013 Indian Energy Exchange Limited

Sd/- Sd/- Sd/-

Rohit Arora Satyanarayan Goel Vineet Harlalka

Partner Chairman & Managing Director Chief Financial Officer

Membership No.: 504774 DIN-02294069 & Company Secretary

Place : Noida Place : Noida Place : Noida

Date : 24 April 2025 Date : 24 April 2025 Date : 24 April 2025

---

Mar 31, 2024

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share. The par value of the shares is ''1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

During the current year, the Company had declared final dividend for the year ended 31 March 2023 @ '' 1 per equity share which was recommended by the Board of Directors in its meeting held on 25 May 2023 and approved at the AGM held on 5 September 2023.The same has been paid during the year.

Further, during the current year, the Company has declared interim dividend @ '' 1 per equity share which was approved by the Board of Directors in their meeting held on 25 January 2024. The same has also been paid during the current year.

Further, the Board of Directors of the Company has recommended a final dividend of '' 1.5 per equity share of face value of '' 1 each for the financial year ended 31 March 2024, subject to the approval of the Shareholders at the ensuing Annual General Meeting.

d) Details of shares issued for consideration other than cash / bonus shares / bought back

During the year ended 31 March 2023, the Board of Directors of the Company, at its meeting held on 25 November 2022, approved the buyback of equity shares from the open market route through the Indian stock exchanges, amounting to '' 9,800 (maximum buyback size, excluding buyback tax) at a price not exceeding '' 200 per share (maximum buyback price), subject to approval of the members of the Company. The Shareholders approved the proposal for buyback of Equity Shares recommended by its Board of Directors by way of e-voting on the postal ballot, the results of which were declared on 30 December 2022. The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on 11 January 2023 and was completed on 16 March 2023. During this buyback period, the Company purchased and extinguished a total of 6,976,798 equity shares from the stock exchange at a weighted average buyback price of '' 140.45 per equity share comprising 0.78% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of '' 9,798.96 (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves in accordance with the provision of Section 68 of the Companies Act, 2013. In accordance with Section 69 of the Companies Act, 2013, as at 31 March 2023, the Company had created a ''Capital Redemption Reserve'' of '' 69.77 equal to the nominal value of the above shares bought back as an appropriation from the general reserve.

During the year ended 31 March 2022, the Company had issued 599,113,022 equity shares of ''1 each as fully paid-up bonus shares representing a ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date.

The Company had on 10 April 2019 completed the buyback of 3,729,729 fully paid-up equity shares of ''1 each (representing 1.23% of

the total number of equity shares in the paid-up share capital of the Company) at a price of '' 185 (Rupees One Hundred Eighty Five only) per equity share (the "Maximum Price") paid in cash aggregating to a total consideration of '' 6,900.

There are no shares issued for consideration other than cash and no shares were bought back during the period of 5 years immediately preceding the reporting date, except mentioned above.

e) Employee stock options

Terms attached to stock options granted to employees are described in Note 47.

f) During the current year, Nil options (previous year : 180,000) (post bonus) out of the options granted earlier have been exercised.

g) Promoter shareholding as on 31 March 2024 is Nil (previous year : Nil)

Nature of reserves:

Employee stock options outstanding account

Employee stock options outstanding account is used to record the impact of employee stock option scheme. Refer note 47 for further details of this plan.

ESOP Trust reserve

ESOP Trust reserve represents the surplus arising in the books of ESOP Trust from profit on the issue of shares to employees, dividend earned by the Trust and other income/ expenses included in the statement of profit and loss.

Retained Earnings

This reserve represents undistributed accumulated earnings of the Group as on the balance sheet date.

Capital redemption reserve

Capital redemption reserve has been created to the extent of share capital extinguished '' Nil (31 March 2023: '' 69.77).

35. Employee benefits

(i) Defined contribution plans:

Provident fund and National Pension Scheme

The Company makes contributions, determined as a specified percentage of employees'' salaries, in respect of qualifying employees towards Provident Fund (PF) and National Pension Scheme (NPS). The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognized as expense towards such contributions for the year aggregated to '' 192.31 (31 March 2023: '' 168.33)

(ii) Defined benefit plans:

Gratuity

The Company has a defined benefit plan that provides for gratuity. The gratuity plan entitles all eligible employees who have completed five years or more of service to receive half month''s salary for each year of completed service at the time of retirement, superannuation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act, 1972 or as per Company''s scheme whichever is more beneficial. The following table summarizes the position of assets and obligations:

The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognised in the Balance Sheet.

Sensitivities due to mortality and withdrawals are not material & hence impact of change due to these have not been calculated.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior years.

h) Risk exposure:

i) Changes in discount rate

A decrease in discount yield will increase plan liabilities.

ii) Mortality table

The gratuity plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in plan liabilities.

Expected contributions to post-employment benefit plans for the next annual reporting period as on 31 March 2024 are '' 137.52 (31 March 2023: '' 132.04)

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 19.52 years (31 March 2023: 19.57 years)

36. Leases

Leases where the Company is a lessee:

The Company has entered into lease transactions mainly for leasing of office premise for a period between 1 to 9 years. The terms of lease include terms of renewal, increase in rents in future periods, which are in line with general inflation, and terms of cancellation. None of the leases consists of any variable lease payment terms. Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on mutual consent of the Company and respective lessors and uses to assess the short term leases. The aggregate depreciation expense on Right of Use assets is included under depreciation and amortization expense in the Statement of Profit and Loss. (Also, refer note-4(a)).

37. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for '' 26.50 (31 March 2023: '' 23.11)

38. Contingent liabilities

a) During the financial year 2018-19, the Company had received a Show Cause Notice (SCN) from the service tax department for reversal of Cenvat credit of '' 170.88 for the period April 2013 to June 2017. Against, the said SCN, the Additional Commissioner (Adj.) CGST Delhi issued an order raising a demand of '' 170.88 and also imposed equivalent penalty of '' 170.88 in financial year 2021-22, against which the Company had filed an appeal before the Hon''ble Custom, Excise & Service Tax appellate Tribunal, Delhi (CESTAT). As on date, the matter is pending for hearing before CESTAT. While the ultimate outcome of the above mentioned appeals cannot be ascertained at this time, based on current knowledge of the applicable law, management believes that matter raised by department is not tenable and highly unlikely to be retained and accordingly believe that no amount will be payable to the concerned authorities.

b) The Company has filed a commercial suit on 26 March 2022 before the District Judge, Saket District Court, Delhi with the primary objective of recovering the security deposit amount from the landlord of the erstwhile office premises of the Company. The said premises was vacated by the Company on 20 December 2020. The said matter is pending to be settled before the District Court. In the meanwhile, in response to the Company''s case, the landlord filed a counter claim against the Company during the current year before the Hon''ble High Court of Delhi claiming an amount of '' 931.46 towards arrears of rent, mense profit, damages etc against the Company. The said matter is currently pending for hearing at the Hon''ble High Court of Delhi. While the ultimate outcome of the said suit can not be ascertained at this time, however, the Company, on the basis of legal advice, is of the firm belief that the said demand is not tenable and is highly unlikely to be retained by the court and therefore, the Company is not carrying any provision in its books of accounts in respect of the said claim.

Further, with respect to above contingent liabilities, the Company does not expect any reimbursements. Also, pending resolution of the respective proceedings in the above matters, it is not practicable for the Company to estimate the timing of cash outflows, if any, as it is determinable only on receipt of judgments/ decisions pending at respective forums

C) In February 2019, the Honorable Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. There are interpretative challenges on the application of judgement retrospectively and as such the Company does not consider any probable obligations for past periods. Accordingly, the impact of such judgement has been considered prospectively by the Company.

39. Corporate social responsibility

a) Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of various projects/ programmes as covered under Schedule VII of the Companies Act. Details of expenses incurred are given below:-

31 March 2024

i) Gross amount required to be spent by the Company during the year was '' 679.38

ii) Amount approved by the Board to be spent during the year was '' 700.00 (excluding adminstration cost)

iii) The Company has brought forward '' 656.25 excess CSR paid in previous year(s) and further paid '' 732.35 towards CSR activities during the financial year 2023-24. Out of total amount of '' 1,388.60, the Company utilised '' 679.38 towards current year''s CSR obligation, and carried forward balance '' 709.21 for set off in subsequent years.

31 March 2023

i) Gross amount required to be spent by the Company during the year was '' 565.89

ii) Amount approved by the Board to be spent during the year was '' 600.00 (excluding adminstration cost)

iii) The Company has brought forward '' 595.19 excess CSR paid in previous year and further paid '' 626.95 towards CSR activities during the financial year 2022-23. Out of total amount of '' 1,222.14, the Company utilised '' 565.89 towards current year''s CSR obligation, and carried forward balance '' 656.25 for set off in subsequent years.

* The carrying amounts of the above mentioned financial assets and financial liabilities approximate their fair value due to their nature. There are no transfers among levels 1,2 and 3 during the year.

Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

a) the use of quoted market prices for quoted mutual funds, market linked debentures and unit of Invit

b) the use of NAV for unquoted mutual funds

c) the fair value of the remaining financial instruments is determined using an appropriate discounting rate

41. Financial Risk Management

The Company''s activities expose it to the followings risks arising from financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

Risk Management framework

The Company''s Board of Directors (""the Board"") has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by an Enterprise Risk Management Committee under risk policy approved by the Board.

The Company''s Audit Committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risks faced by the Company.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of the financial assets represents maximum credit exposure.

Credit risks on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit agencies. Investments primarily include investments in mutual fund units, commercial papers, market linked debentures, infrastructure investment units, target maturity funds, fixed maturity plans and investment in bonds with fixed interest income. The management actively monitors the net asset value of investments in mutual funds, infrastructure investment units, interest rate and maturity period of investment in bonds and commercial papers. The Company does not expect the counterparty to fail in meeting its obligations. However, investment in target maturity funds, fixed maturity plans, market linked debentures are exposed to uncertainties as regards to fulfilment of obligations by counter-party. The Company has not experienced any significant impairment losses in respect of any of the investments. In respect of other financial assets including security deposit, the credit risk associated is relatively low. Accordingly, no provision for expected credit loss has been provided on such financial assets.

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other charges and exchange fees on or before the delivery and pays out the amount to seller for sale of power one day after delivery. Further, transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain settlement guarantee funds for settlement of defaults by any of the members/ clients.

(ii) Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting periods in respect of these assets

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk and SGF funds available with the Company and hence no impairment loss has been recognised during the reporting year in respect of trade receivables.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by payments or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, comprising total cash (including bank deposits under lien) and short-term investments and anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to meet its ongoing capital, operating and other liquidity requirements.

Market risk is the risk that future cash flows of financial instruments will fluctuate because of change in market price. Market comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency Risk is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates. The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows since all financial assets / liabilities are receivable / payable in Indian currency.

42. Capital Management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns to shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company does not have any debt outstanding as on 31 March 2024 and 31 March 2023.

43. Operating segments

The Company is a power exchange. The entire operations are governed by similar set of risk and returns. Accordingly, the Company''s activities/ business is reviewed regularly by the Company''s Chairman & Managing Director alongwith the Board of Directors of the Company, from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

44. Additional Disclosures

a) The Company does not have any immovable property other than properties where the Company is a lessee and the lease agreements are duly executed in favour of the lessee.

b) The Company has not revalued its property, plant and equipment (including Right-of-Use Assets) and intangible assets during the current and previous year.

c) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

d) The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender during the current and previous year.

e) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period during the current and previous year.

f) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) There are no funds which have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

h) There are no transactions which have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current and previous year.

i) The Company has not traded or invested in Crypto currency or Virtual currency during the curent and previous year.

j) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current and previous year.

Considering the nature of Company''s business, the following ratios cannot be meaningfully calculated or are not applicable to the Company:

- Debt-Equity ratio (For the purpose of this ratio, lease liability has not been considered as debt. Further, the Company has no other debt outstanding as at 31 March 2024 and 31 March 2023)

- Debt service coverage ratio (For the purpose of this ratio, lease liability has not been considered as debt. Further, the Company has no other debt outstanding as at 31 March 2024 and 31 March 2023)

- Trade receivable turnover ratio

- Inventory turnover ratio (The Company does not have any inventory as at 31 March 2024 and 31 March 2023)

47. Share based payment arrangements

a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 ("ESOP 2010"), which was duly approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares of '' 10 each (post sub division equivalent to 6,065,720 of '' 1 each) to IEX ESOP Trust ("ESOP Trust") which administers ESOP 2010 on behalf of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extraordinary General Meeting held on 16 May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013 had authorised the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOPs including the vesting period for selective/ specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

In the Annual General Meeting of the Company held on 18 September 2018, the Shareholders of the Company had approved the sub-division of the nominal value of equity shares of the Company from the earlier nominal value of '' 10 each to nominal value of '' 1 each, thereby all the numbers have been reinstated.

During the financial year 2021-22, the Company has issued bonus equity shares of ''1 each as fully paid-up bonus shares in the ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date i.e 6 December 2021, accordingly the outstanding options were adjusted for this corporate action.

** representing figures post-sub-division adjustment of equity shares, each option entitle the holder to get one equity share of '' 1 each (post sub-division of equity shares of the Company from face value of '' 10 to '' 1)

The options outstanding at 31 March 2024 have an exercise price of '' 131 to 141, each option entitle the holder to get one equity share of '' 1 each (31 March 2023: '' 272, each option entitle the holder to get one equity share of '' 1 each) and a weighted average remaining contractual life of 2.31 years (31 March 2023: 1.71 years).

No share options have been exercised in financial year 2023-24 (2022-23: Weighted average share price at the date of exercise for share options exercised '' 50.67 for 180,000 shares of ''1 each).

49. The Company had constituted a separate ''Settlement Guarantee Fund'' (''SGF'') in respect of the activities carried out in various contracts being traded at the exchange platform. The members are required to contribute interest free margin money which forms part of the SGF. However, as per CERC order dated 9 October 2018, the Company has to share 70% of the return earned on ''initial security deposits'' with the Members. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The Cash Margin Money forming part of SGF is '' 2,144.25 (previous year '' 2,025.71) and same has been disclosed under note 23- Other current financial liabilities i.e. '' 2,001.29 (previous year '' 1,927.62) under Deposits towards Settlement Guarantee Fund and note 18- Other non current financial liabilities- Deposits towards Settlement Guarantee Fund i.e. '' 142.96 (previous year '' 98.09). These balances have been accounted for on amortised cost basis. The Company had also collected non cash portion of the Settlement Fund comprising collateral such as bank guarantees, received from the members amounting to '' 175.00 (previous year '' 225.00) which does not form part of the Balance Sheet.

50. The Company receives trading margin deposits from the members corresponding to their average trading volume during last 7 days. Trading margin money is refundable, subject to adjustments, if any. The Cash Margin Money forming part of trading margin deposits is '' 11,248.03 (previous year '' 13,663.48) and same has been disclosed under note 23 - Other current financial liabilities. The Company has also collected non cash portion of the trading margin deposits comprising collateral such as bank guarantees, received from the members amounting to '' 2,130.00 (previous year '' 2,630.00) which does not form part of the Balance Sheet.

51. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

52. The Company had incorporated a wholly-owned subsidiary in India, International Carbon Exchange Private Limited (ICX) on 27 December 2022, to explore business opportunities in the Carbon Market. The Company has invested '' 500 in the form of 5,000,000 Equity shares of face value of ''10 each.

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Mar 31, 2023

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share. The par value of the shares is ^ 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

During the current year, the Company had declared final dividend for the year ended 31 March 2022 @ ^ 1 per equity share which was recommended by the Board of Directors in its meeting held on 27 April 2022 and approved at the AGM held on 2 September 2022.The same has been paid during the year.

Further, the Board of Directors of the Company has recommended a final dividend of ^ 1/- per equity share of face value of ^ 1 each for the financial year ended 31 March 2023, subject to the approval of the Shareholders at the ensuing Annual General Meeting.

d) Details of shares issued for consideration other than cash / bonus shares / bought back

During the year ended 31 March 2023, the Board of Directors of the Company, at its meeting held on 25 November 2022, approved the buyback of equity shares from the open market route through the Indian stock exchanges, amounting to f 9,800 (maximum buyback size, excluding buyback tax) at a price not exceeding f 200 per share (maximum buyback price), subject to approval of the members of the Company. The Shareholders approved the proposal for buyback of Equity Shares recommended by its Board of Directors by way of e-voting on the postal ballot, the results of which were declared on 30 December 2022. The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on 11 January 2023 and was completed on 16 March 2023. During this buyback period, the Company purchased and extinguished a total of 6,976,798 equity shares from the stock exchange at a weighted average buyback price of f 140.45 per equity share comprising 0.78% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of f 9,798.96 (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves in accordance with the provision of Section 68 of the Companies Act, 2013. In accordance with Section 69 of the Companies Act, 2013, as at 31 March 2023, the Company has created a ''Capital Redemption Reserve'' of f 69.77 equal to the nominal value of the above shares bought back as an appropriation from the general reserve.

During the previous year, the Company had issued 599,113,022 equity shares of f 1 each as fully paid-up bonus shares representing a ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date.

The Company had on 10 April 2019 completed the buyback of 3,729,729 fully paid-up equity shares of f 1 each (representing 1.23% of the total number of equity shares in the paid-up share capital of the Company) at a price of f 185 (Rupees One Hundred Eighty Five only) per equity share (the "Maximum Price") paid in cash aggregating to a total consideration of f 6,900.

There are no shares issued for consideration other than cash and no shares were bought back during the period of 5 years immediately preceding the reporting date, except mentioned above.

e) Employee stock options

Terms attached to stock options granted to employees are described in Note 47.

f) During the current year, Nil options (previous year 119,400) (pre bonus) and 180,000 options (previous year : 150,000) (post bonus) out of the options granted earlier have been exercised.

g) Promoter shareholding as on 31 March 2023 is Nil (previous year : Nil)

Nature of reserves:

Employee stock options outstanding account

Employee stock options outstanding account is used to record the impact of employee stock option scheme. Refer note 47 for further details of this plan.

ESOP Trust reserve

ESOP Trust reserve represents the surplus arising in the books of ESOP Trust from profit on the issue of shares to employees, dividend earned by the Trust and other income/ expenses included in the statement of profit and loss.

Retained Earnings

This reserve represents undistributed accumulated earnings of the Group as on the balance sheet date.

Capital redemption reserve

Capital redemption reserve has been created to the extent of share capital extinguished ^ 69.77 (31 March 2022: Nil). The opening balance of the previous year was utilised for issing Bonus shares.

(i) Defined contribution plans:

Provident fund and National Pension Scheme

The Company makes contributions, determined as a specified percentage of employees'' salaries, in respect of qualifying employees towards Provident Fund (pf) and National Pension Scheme (NPS). The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognized as expense towards such contributions for the year aggregated to f 168.33 (31 March 2022 f 144.07).

(ii) Defined benefit plans:

Gratuity

The Company has a defined benefit plan that provides for gratuity. The gratuity plan entitles all eligible employees who have completed five years or more of service to receive half month''s salary for each year of completed service at the time of retirement, superannuation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act, 1972 or as per Company''s scheme whichever is more beneficial. The following table summarizes the position of assets and obligations:

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognised in the Balance Sheet.

Sensitivities due to mortality and withdrawals are not material & hence impact of change due to these have not been calculated.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior years.

h) Risk exposure:

i) Changes in discount rate

A decrease in discount yield will increase plan liabilities. ii) Mortality table

The gratuity plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in plan liabilities.

36. Leases

Leases where the Company is a lessee:

The Company has entered into lease transactions mainly for leasing of office premise for a period between 1 to 9 years. The terms of lease include terms of renewal, increase in rents in future periods, which are in line with general inflation, and terms of cancellation. None of the leases consists of any variable lease payment terms. Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on mutual consent of the Company and respective lessors and uses to assess the short term leases. The aggregate depreciation expense on Right of Use assets is included under depreciation and amortization expense in the Statement of Profit and Loss. (Also, refer note-4(a)).

38. Provisions and contingent liabilities

a. The Company is directly or indirectly (through its members/other parties) involved in lawsuits, claims, and proceedings, which arise in the ordinary course of business. The Company or its members/other parties have challenged these litigations with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote.

b. During the financial year 2018-19, the Company had received a show cause notice from the service tax department for reversal of Cenvat credit of ^ 170.88. During the financial year 2021-22, the Additional Commissioner (Adj.) CGST Delhi issued an order raising demand of ^ 170.88 and also imposed equivalent penalty of ^ 170.88, against which the Company had filed an appeal before the Hon''ble Custom, Excise & Service Tax appellate Tribunal, Delhi (CESTAT). As on date, the matter is pending for hearing before CESTAT. While the ultimate outcome of the above mentioned appeals cannot be ascertained at this time, based on current knowledge of the applicable law, management believes that matter raised by department is not tenable and highly unlikely to be retained and accordingly believe that no amount will be payable to the concerned authorities.

c. In February 2019, the Honorable Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. There are interpretative challenges on the application of judgement retrospectively and as such the Company does not consider any probable obligations for past periods. Accordingly, the impact of such judgement has been considered prospectively by the Company.

39. Corporate social responsibility

a. Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of various projects/ programmes as covered under Schedule VII of the Companies Act. Details of expenses incurred are given below:-

31 March 2023

a. Gross amount required to be spent by the Company during the year was ^ 565.89.

b. The Company has brought forward ^ 595.19 excess CSR paid in previous year and further paid ^ 626.95 towards CSR activities during the financial year 2022-23. Out of total amount of ^ 1,222.14, the Company utilised ^ 565.89 towards current year''s CSR obligation, and carried forward balance ^ 656.25 for set off in subsequent years.

41. Financial Risk Management

The Company''s activities expose it to the followings risks arising from financial instruments:

• Credit risk

• Liquidity risk

• Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

Risk Management framework

The Company''s Board of Directors ("the Board") has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by an Enterprise Risk Management Committee under risk policy approved by the Board.

The Company''s Audit Committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risks faced by the Company.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of the financial assets represents maximum credit exposure.

Credit risks on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit agencies. Investments primarily include investments in mutual fund units, target maturity funds, fixed maturity plans and investment in bonds with fixed interest income. The management actively monitors the net asset value of investments in mutual funds, interest rate and maturity period of these investments. The Company does not expect the counterparty to fail in meeting its obligations. However, investment in target maturity funds and fixed maturity plans of mutual funds are exposed to uncertainties as regards to fulfilment of obligations by counter-party. The Company has not experienced any significant impairment losses in respect of any of the investments. Security deposit given for facilities taken on rent will be returned/ adjusted at the end of lease term. Hence, the credit risk associated with such deposits is relatively low. Accordingly, no provision for expected credit loss has been provided on these financial assets.

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other charges and exchange fees on or before the delivery and pays out the amount to seller for sale of power one day after delivery. Further, transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain settlement guarantee funds for settlement of defaults by any of the members/ clients.

(ii) Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting periods in respect of these assets.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk and SGF funds available with the Company and hence no impairment loss has been recognised during the reporting year in respect of trade receivables.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by payments or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, comprising total cash (including bank deposits under lien) and shortterm investments and anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to meet its ongoing capital, operating and other liquidity requirements.

Market risk

Market risk is the risk that future cash flows of financial instruments will fluctuate because of change in market price. Market comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency Risk is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates. The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows since all financial assets / liabilities are receivable / payable in Indian currency.

Fair value sensitivity analysis for fixed-rate instruments

The Company''s fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

42. Capital Management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns to shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company does not have any debt outstanding as on 31 March 2023 and 31 March 2022.

43. Operating segments

The Company is a power exchange. The entire operations are governed by similar set of risk and returns. Accordingly, the Company''s activities/ business is reviewed regularly by the Company''s Chairman & Managing Director alongwith the Board of Directors of the Company, from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

44. Additional Disclosures

a. The Company does not have any immovable property other than properties where the Company is a lessee and the lease agreements are duly executed in favour of the lessee.

b. The Company has not revalued its property, plant and equipment (including Right-of-Use Assets) and intangible assets during the current and previous year.

c. No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

d. The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender during the current and previous year.

e. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period during the current and previous year.

f. There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g. There are no funds which have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

h. There are no transactions which have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current and previous year.

i. The Company has not traded or invested in Crypto currency or Virtual currency during the curent and previous year.

j. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current and previous year.

a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 ("ESOP 2010"), which was duly approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares of ^ 10 each (post sub division equivalent to 6,065,720 of ^ 1 each) to IEX ESOP Trust ("ESOP Trust") which administers ESOP 2010 on behalf of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extra-ordinary General Meeting held on 16 May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013 had authorised the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOPs including the vesting period for selective/specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

In the Annual General Meeting of the Company held on 18 September 2018, the Shareholders of the Company had approved the sub-division of the nominal value of equity shares of the Company from the earlier nominal value of ^ 10 each to nominal value of ^ 1 each, thereby all the numbers have been reinstated.

49. The Company had constituted a separate ''Settlement Guarantee Fund'' (''SGF'') in respect of the activities carried out in various contracts being traded at the exchange platform. The members are required to contribute interest free margin money which forms part of the SGF. However, as per CERC order dated 09 October 2018, the Company has to share 70% of the return earned on ''initial security deposits'' with the Members. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The Cash Margin Money forming part of SGF is ^ 2,025.71 (previous year ^ 1,931.49) and same has been disclosed under note 23 - Other current financial liabilities i.e. ^ 1,927.62 (previous year ^ 1,882.27) under Deposits towards Settlement Guarantee Fund and note 18 - Other non current financial liabilities - Deposits towards Settlement Guarantee Fund i.e. ^ 98.09 (previous year ^ 49.22). These balances have been accounted for on amortised cost basis. The Company had also collected non cash portion of the Settlement Fund comprising collateral such as bank guarantees, received from the members amounting to ^ 225.00 (previous year ^ 75.00) which does not form part of the Balance Sheet.

50. The Company receives trading margin deposits from the members corresponding to their average trading volume during last 7 days. Trading margin money is refundable, subject to adjustments, if any. The Cash Margin Money forming part of trading margin deposits is ^ 13,663.48 (previous year ^ 24,928.88) and same has been disclosed under note 23 - Other current financial liabilities. The Company has also collected non cash portion of the trading margin deposits comprising collateral such as bank guarantees, received from the members amounting to ^ 2,630.00 (previous year ^ 1,605.00) which does not form part of the Balance Sheet.

51. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

52. The Company has incorporated a wholly-owned subsidiary in India, International Carbon Exchange Private Limited (ICX) on 27 December 2022, to explore business opportunities in the Carbon Market. The Company has invested ^ 500 in the form of 5,000,000 Equity shares of face value of ^ 10 each.

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Mar 31, 2022

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share. The par value of the shares is Re.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

The Company has declared final dividend for the year ended 31 March 2021 @ Re. 1.5 per equity share as recommended by the Board of Directors in its meeting held on 22 July 2021 and approved at the AGM held on 2 September 2021.The same has been paid before the year-end.

Further, during the current year, the Company has declared interim dividend Re. @ 1.0 per equity share in their meeting held on 24 January 2022. The same has been paid before the year-end.

Further, the Board of Directors of the Company have recommended a final dividend of Re. 1/- per equity share of face value of Re. 1 each for the financial year ended 31 March 2022, subject to the approval of the Shareholders at the ensuing Annual General Meeting.

d) Details of shares issued for consideration other than cash / bonus shares / bought back

During the current year, the Company has issued 599,113,022 equity shares of Re.1 each as fully paid-up bonus shares representing a ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date. Accordingly, as required by Ind AS-33 Earnings per share, the EPS of current and previous period have been restated. There are no shares issued for consideration other than cash and no shares were bought back during the period of 5 years immediately preceding the reporting date, except that, the Company had on 10 April 2019 completed the buyback of 3,729,729 fully paid-up equity shares of Re.1 each (representing 1.23% of the total number of equity shares in the paid-up share capital of the Company) at a price of ? 185 (Rupees One Hundred Eighty Five only) per equity share (the “Maximum Price”) paid in cash aggregating to the total consideration of ? 6,900 lakhs.

e) Employee stock options

Terms attached to stock options granted to employees are described in Note 46.

f) During the current year, 119,400 options (previous year 180,400) (pre bonus) and 150,000 options (previous year : nil) (post bonus) out of the options granted earlier, have been exercised.

g) Promoter shareholding as on 31 March 2022 is Nil (Previous year : Nil)

Employee stock options outstanding account

Employee stock options outstanding account is used to record the impact of employee stock option scheme. Refer note 46 for further details of this plans.

ESOP Trust reserve

ESOP Trust reserve represents the surplus arising in the books of ESOP Trust from profit on the issue of shares to employees, dividend earned by the trust and other income/ expenses included in the statement of profit and loss.

Capital redemption reserve

Capital redemption reserve was created to the extent of share capital extinguished ? Nil (31 March 2021: Nil). The opening balance has been utilised during the current year for Bonus share issue.

35. Employee benefits

(i) Defined contribution plans:

Provident fund

The Company makes contributions, determined as a specified percentage of employees'' salaries, in respect of qualifying employees towards provident fund which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognized as expense towards such contribution to provident fund for the year aggregated to ? 144.07 (31 March 2021 ? 119.45).

(ii) Defined benefit plans:

Gratuity

The Company has a defined benefit plan that provides for gratuity. The gratuity plan entitles all eligible employees who has completed five years or more of service to receive one half month''s salary for each year of completed service at the time of retirement, superannuation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act or as per company''s scheme whichever is more beneficial. The following table summarizes the position of assets and obligations:

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognised in the Balance Sheet.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these have not been calculated. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior years.

Expected contributions to post-employment benefit plans for the next annual reporting period as on 31 March 2022 are ? 116.21 (31 March 2021: ^ 111.15).

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 19.81 years (31 March 2021: 19.73 years).

36. Leases

i) Leases where company is a lessee:

The Company has entered into lease transactions mainly for leasing of office premise for a period between 1 to 9 years. The terms of lease include terms of renewal, increase in rents in future periods, which are in line with general inflation, and terms of cancellation. None of the leases consists of any variable lease payment terms. Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on mutual consent of the Company and respective lessors and uses to assess the short term leases. The aggregate depreciation expense on Right of Use assets is included under depreciation and amortization expense in the Statement of Profit and Loss. (Also, refer note-4(a)).

37. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for ? 165.03 (previous year ?

463.12).

38. Provisions and contingent liabilities

a) The Company''s pending litigations comprise proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. This provision has been created only as a matter of abundant caution. Management continues to believe that it has a strong case and that the demands against it are not tenable.

b) The Company is directly or indirectly (through its members/other parties) involved in other lawsuits, claims, and proceedings, which arise in the ordinary course of business. The Company or its members/other parties have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote.

c) During the financial year 2018-19, the Company had received a show cause notice from the service tax department for reversal of Cenvat credit of ? 170.88. During the year, against this show cause notice, the Additional commissioner (Adj.) CGST Delhi has issued an order raising demand of ? 170.88 and also imposed penalty of equivalent amount of ? 170.88, against which the Company had filed an appeal before the Hon''ble Custom, Excise & Service Tax appellate Tribunal, Delhi (CESTAT). As on date, matter is pending for hearing before CESTAT. While the ultimate outcome of the above mentioned appeals cannot be ascertained at this time, based on current knowledge of the applicable law, management believes that matter raised by department is not tenable and highly unlikely to be retained and accordingly believe that no amount will be payable to the concerned authorities.

d) The Hon''ble Supreme Court of India, vide their ruling dated 28 February 2019, set out the principles based on which certain allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed by a third party and is pending before the SC for disposal. In view of the management, pending decision on the subject review petition and directions from the EPFO, the management has a view that the applicability of the decisions is prospective. Further, the impact for the past period, if any, is not practically ascertainable in view of various interpretation issues.

39. Corporate social responsibility

A) Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of various projects/ programs as covered under Schedule VII of the Companies Act. Details of expenses incurred are given below:-

31 March 2022

a. Gross amount required to be spent by the Company during the year was ? 456.38.

b. The Company has brought forward ? 546.84 excess CSR spend from previous year and further spend ? 504.73 towards CSR activities during the year FY22. Out of total amount of ? 1,051.57, the Company utilised ? 456.38 toward current year CSR obligation, and carried forwarded balance ? 595.19 for set off in subsequent years. Amount approved by the Board to be spent during the year 2021-22 was ? 504.73 (including administrative overheads).

a. Gross amount required to be spent by the Company during the year was ? 415.73.

b. Amount approved by the Board to be spent during the year 20-21 was ? 966.84, out of which ? 546.84 approved by the Board to be carried forward for next years.

40. Fair Value Measurements

(a) Financial instruments by category and fair values hierarchy

The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.

The carrying amounts of the above mentioned financial assets and financial liabilities approximate their fair value due to their short-term nature.

#The fair values for security deposits given and deposit for settlement guarantee fund were calculated based on cash flows discounted using effective interest rate (‘EIR'') method. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk/own credit risk.

Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

a) the use of quoted market prices for quoted mutual funds and market linked debentures

b) the use of NAV for unquoted mutual funds

c) the fair value of the remaining financial instruments are discounted using an appropriate discounting rate

41. Financial Risk ManagementThe Company’s activities expose it to the followings risks arising from financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

Risk Management framework

The Company''s Board of Directors (“’’the Board””) has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analysis the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by an Enterprise Risk Management Committee under risk policy approved by the Board.

The Company''s Audit Committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of the financial assets represents maximum credit exposure.

Credit risks on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit agencies. Investments primarily include investments in mutual fund units, fixed maturity plans and investment in bonds with fixed interest income. The management actively monitors the net asset value of investments in mutual funds, interest rate and maturity period of these investments. The Company does not expect the counterparty to fail in meeting its obligations. However, investment in fixed maturity plans of mutual funds are exposed to uncertainties as regards to fulfilment of obligations by counter-party. The Company has not experienced any significant impairment losses in respect of any of the investments. Security deposit given for facilities taken on rent will be returned to the Company at the end of lease term. Hence, the credit risk associated with such deposits is relatively low. Accordingly, no provision for expected credit loss has been provided on these financial assets.

41. Financial Risk Management (Cont...)

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other charges and exchange fees on the day of trade and pays out the amount to seller for sale of power on the second day from the day of trade (one day after actual delivery). Further, transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain settlement guarantee funds for settlement of defaults by any of the members/ clients.

(ii) Provision for expected credit losses(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting periods in respect of these assets.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk and SGF funds available with the Company and hence no impairment loss has been recognised during the reporting year in respect of trade receivables.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, comprising total cash (including bank deposits under lien) and short-term investments and anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to meet its ongoing capital, operating and other liquidity requirements.

Market risk

Market risk is the risk that future cash flows of financial instruments will fluctuate because of change in market price. Market comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency Risk is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates. The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows since all financial assets / liabilities are receivable / payable in Indian currency.

43. Operating segments

The Company is a power exchange. The entire operations are governed by similar set of risk and returns. Accordingly, the Company''s activities/ business is reviewed regularly by the Company''s Managing Director alongwith the Board of Directors of the Company, from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

Note:

Above amounts does not include gratuity and compensated absences (except actually paid) since these are determined for the Company as whole.

¹ Includes ? 180 lakhs towards provision for variable /special pay, payable post requisite approvals.( Previous year included ? 11.95 lakhs towards variable pay provision, against which ? 11.99 lakhs was paid in current year).

² Previous year included ? 97.07 lakhs towards variable commission, against which ? 97.29 lakhs was paid in current year.

³ Includes ? 56.43 lakhs towards provision for variable /special pay, payable post requisite approvals.( Previous year included ? 26.54 lakhs towards variable pay provision, against which ? 42.09 lakhs was paid in current year).

46. Share based payment arrangements:

a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 (“ESOP 2010”), which was duly approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares of ? 10 each (post sub division equivalent to 6,065,720 of ? 1 each) to IEX ESOP Trust (“ESOP Trust”) which administer ESOP 2010 on behalf of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extra-ordinary General Meeting held on 16 May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013 had authorised the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOP''s including the vesting period for selective/specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

In the Annual General Meeting of the Company held on 18 September 2018, the Shareholders of the Company had approved the sub-division of the nominal value of equity shares of the Company from the earlier nominal value of ? 10 each to nominal value of Re. 1 each, thereby all the numbers have been reinstated.

During the year the Company has issued bonus equity shares of Re.1 each as fully paid-up bonus shares in the ratio of 2 (Two) equity share for every 1 (One) equity share outstanding on the record date i.e 6 December 2021, accordingly the outstanding options were adjusted for this corporate action.

** representing figures post-sub-division adjustment of equity shares, each option entitle the holder to get one equity share of ?

1 each (post sub-division of equity shares of the Company from face value of ? 10 to ? 1)

The options outstanding at 31 March 2022 have an exercise price in the range of ? 48 to ? 272, each option entitle the holder to get one equity share of ? 1 each (31 March 2021: ? 75 to ? 166, each option entitle the holder to get one equity share of ? 1 each) and a weighted average remaining contractual life of 2.27 years (31 March 2021: 0.80 years).

The weighted average share price at the date of exercise for share options exercised in 2021-22 was ^120.52 for 1,19,400 shares vested prior to issuance of Bonus shares and ^51.6 for 1,50,000 shares vested post issuance of Bonus shares ? 1 each (2020-21: ? 107.84 for 180,400 shares of ? 1 each).

47. The Company had constituted a separate ‘Settlement Guarantee Fund'' (‘SGF'') in respect of the activities carried out in various contracts being traded at the exchange platform. The members are required to contribute interest free margin money which forms part of the SGF. However, as per CERC order dated 09 October 2018, the Company has to share 70% of the return earned on ‘initial security deposits'' with the Members. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The Cash Margin Money forming part of SGF was ? 26,860.37 (previous year ? 13,617.10) and same has been disclosed under note 23 - Other current financial liabilities i.e. ? 26,811.15 (previous year ? 13,498.05) under Deposits towards Settlement Guarantee Fund and note 18 - Other non current financial liabilities - Deposits towards Settlement Guarantee Fund i.e. ? 49.22 (previous year ? 119.05). These balances have been accounted for on amortised cost basis. The Company had also collected non cash portion of the Settlement Fund comprising collateral such as bank guarantees, received from the members amounting to ? 1,605.00 (previous year ? 1,405.00) which does not form part of the Balance Sheet.

48. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

49. On 17 January 2022, the Company has executed a transaction for sale of 4.93% stake in Indian Gas Exchange Limited (IGX), to Indian Oil Corporation Limited (IOCL) consisting of 3,693,750 equity shares, having a face value of ^10 each. This transaction has consequently resulted in cessation of Holding-Subsidiary Relationship between Indian Energy Exchange Limited and Indian Gas Exchange Limited from that date.

50. In view of pandemic related to COVID -19, the Company has considered internal and external information and has performed its own analysis based on current estimates in assessing the recoverability of its investment, right of assets use and other financial assets, for possible impact on the Standalone Financial Statements. However, the actual impact of COVID-19 on the Company''s standalone financial statements may differ from that estimated and the Company will continue to closely monitor any material changes to future economic conditions.

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Mar 31, 2021

37. Employee benefits

(i) Defined contribution plans:

Provident fund

The Company makes contributions, determined as a specified percentage of employee''s salaries, in respect of qualifying employees towards provident fund which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognized as expense towards such contribution to provident fund for the year aggregated to Rs. 119.45 (31 March 2020 Rs. 96.02).

(ii) Defined benefit plans:

Gratuity

The Company has a defined benefit plan that provide gratuity. The gratuity plan entitles all eligible employees who has completed five years or more of service to receive one half month''s salary for each year of completed service at the time of retirement, superannuation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act or as per company''s scheme whichever is more beneficial. The following table summarizes the position of assets and obligations:

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity and the amounts recognised in the Company''s financial statements as at balance sheet date:

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognised in the Balance Sheet.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these have not been calculated. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior years.

h) Risk exposure:

i) Changes in discount rate

A decrease in discount yield will increase plan liabilities.

ii) Mortality table

The gratuity plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in plan liabilities.

i) Leases where company is a lessee:

The company has entered into lease transactions mainly for leasing of office premise for a period between 1 to 9 years. The terms of lease include terms of renewal, increase in rents in future periods, which are in line with general inflation, and terms of cancellation. None of the leases consists of any variable lease payment terms. Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on mutual consent of the Company and respective lessors and uses to assess the short term leases. The aggregate depreciation expense on Right of Use assets is included under depreciation and amortization expense in the Statement of Profit and Loss. (Also, refer note-4(a)).

39. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 463.12 (previous year

Rs. 56.61).

40. Provisions and contingent liabilities

a) The Company''s pending litigations comprise proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. This provision has been created only as a matter of abundant caution. Management continues to believe that it has a strong case and that the demands against it are not tenable.

b) The Company is directly or indirectly (through its members/other parties) involved in other lawsuits, claims, and proceedings, which arise in the ordinary course of business. The Company or its members/other parties have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote.

c) During the financial year 2018-19, the Company had received a show cause notice from the service tax department for Rs. 170.88. The Company had filed a reply to the department for the show cause notice and no further action has been observed from the service tax authorities after filing of the reply. While the ultimate outcome of the above mentioned appeals cannot be ascertained at this time, based on current knowledge of the applicable law, management believes that matter raised by department is not tenable and highly unlikely to be retained and accordingly believe that no amount will be payable to the concerned authorities.

d) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

e) The Hon''ble Supreme Court of India, vide their ruling dated 28 February 2019, set out the principles based on which certain allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed by a third party and is pending before the SC for disposal. In view of the management, pending decision on the subject review petition and directions from the EPFO, the management has a view that the applicability of the decisions is prospective. Further, the impact for the past period, if any, is not practically ascertainable in view of various interpretation issues.

41. Corporate social responsibility

A) Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of eradication of hunger and malnutrition, promoting education, healthcare, art & culture, environment sustainability, disaster relief, skill development etc. Details of expenses incurred are given below:-

31 March 2021

a) Gross amount required to be spent by the Company during the year was Rs. 415.73.

b) Amount approved by the Board to be spent during the year 20-21 was Rs. 966.84, out of which Rs 546.84 approved by the

Board to be carried forward for next years.

*The carrying amounts of trade receivables, trade payables, other current financial liabilities, cash and cash equivalent, other bank balances, loans (security deposits) and other current financial assets, approximates the fair values, due to their short-term nature. In case of the non current bank deposits (due for maturity after twelve months from reporting date) and interest accrued but not due on bank deposits also the carrying value approximates the fair values as on the date.

#The fair values for security deposits given and deposit for settlement guarantee fund were calculated based on cash flows discounted using effective interest rate (‘EIR'') method. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk/own credit risk.

Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

a) the use of quoted market prices for quoted mutual funds and market linked debentures

b) the use of NAV for unquoted mutual funds

c) the fair value of the remaining financial instruments are discounted at appropriate discounting rate

43. Financial Risk ManagementThe Company’s activities expose it to the followings risks arising from the financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

Risk Management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analysis the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by an Enterprise Risk Management Committee under risk policy approved by the board of directors.

The Company''s audit committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from trade receivables, investments, loans and advances, cash and cash equivalents, deposits with banks and other financial assets. The carrying amount of the financial assets represents maximum credit exposure.

Credit risk on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit agencies. Investments primarily include investments in mutual fund units, fixed maturity plans and investment in bonds with fixed interest income. The management actively monitors the net asset value of investments in mutual funds, interest rate and maturity period of these investments. The Company does not expect the counterparty to fail to meet its obligations. However, investment in fixed maturity plans of mutual funds are exposed to uncertainties in regards to fulfilment of obligations by counter-party. Further the Company has not experienced any significant impairment losses in respect of any of the investments. The loans primarily represents security deposits given for facilities taken on rent. Such security deposit will be returned to the Company at the end of lease term. Hence, the credit risk associated with such deposits is relatively low. Accordingly, no provision for expected credit loss has been provided on these financial assets.

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other charges and exchange fees on the day of trade and pays out the amount to seller for sale of power on the second day from the day of trade (one day after actual delivery). Further, transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain settlement guarantee funds for settlement of defaults by any of the members/ clients.

(ii) Provision for expected credit losses(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting periods in respect of these assets.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk and SGF funds available with the Company and hence no impairment loss has been recognised during the reporting year in respect of trade receivables.

43. Financial Risk Management ( Contd...)

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, including total cash (including bank deposits under lien) and short-term investments and anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to meet its ongoing capital, operating and other liquidity requirements.

Market risk

Market risk is the risk that future cash flows of a financial instruments will fluctuate because of change in market price. Market comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency Risk is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates. The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows since all financial assets / liabilities are receivable / payable in Indian currency.

B. Interest rate risk

Interest rate risk is the risk that future cash flows of financial instruments will fluctuate because of change in market interest risks. The interest rate profile of the Company''s interest bearing financial instruments as reported to the management of the Company is as follows:

43. Financial Risk Management ( Contd...)

Fair value sensitivity analysis for fixed-rate instruments

The company''s fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

44. Capital Management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders. For the purpose of the Company''s capital management, the Company monitors capital using a ratio of ‘adjusted net debt'' to ‘adjusted equity''. For this purpose, adjusted net debt is defined as total liabilities less cash and cash equivalents and other bank balance. Adjusted equity refers to total equity and includes issued equity share capital and other equity comprises securities premium, retained earnings etc.

45. Operating segments

The Company is a power exchange. The entire operations are governed by the similar set of risk and returns. Accordingly, the Company''s activities/ business is reviewed regularly by the Company''s Managing Director alongwith the Board of Directors of the Company, from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

Above amounts does not include provision for gratuity and compensated absences since these are determined for the Company as whole.

¹ Includes Rs. 11.95 lakhs towards provision for variable pay, payable post requisite approvals.

² Includes Rs. 97.07 lakhs towards variable commission, to be paid post requisite approvals (previous year included Rs. 70 lakhs variable commission, against which Rs 59.95 lakhs was paid in current year).

³ Previous year includes provision of Rs. 21.87 lakhs towards variable pay, out of which Rs 20.45 lakhs was paid in current year.

⁴ Includes Rs. 26.54 lakhs towards variable pay provision, to be paid post requisite approvals (previous year included Rs. 26.14 lakhs towards variable pay provision, against which Rs 25.50 lakhs was paid in current year).

* Sitting fee paid to REC.

47. Share based payment arrangements:

a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 (“ESOP 2010”), which was duly approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares of Rs. 10 each ( post sub division equivalent to 6,065,720 of Rs 1 each) to IEX ESOP Trust (“ESOP Trust”) who will administer ESOP 2010 on behalf of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extra-ordinary General Meeting held on 16 May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013 had authorised the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOP''s including the vesting period for selective/specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

48. The Company had constituted a separate ‘Settlement Guarantee Fund'' (‘SGF'') in respect of the activities carried out in various contracts being traded at the exchange platform. The members are required to contribute interest free margin money which forms part of the SGF. However, as per CERC order dated 09 October 2018, the Company has to share 70% of the return earned on ‘initial security deposits'' with the Members. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The Cash Margin Money forming part of SGF was Rs. 13,617.10 (previous year Rs. 11,689.42) and same has been disclosed under note 25 - Other current financial liabilities i.e. Rs. 13,498.05 (previous year Rs. 11,517.93) under Deposits towards Settlement Guarantee Fund and note 20 - Other non current financial liabilities - Deposits towards Settlement Guarantee Fund i.e. Rs. 119.05 (previous year Rs. 171.50). These balances have been accounted for on amortised cost basis. The Company had also collected non cash portion of the Settlement Fund comprising collateral such as bank guarantees, received from the members amounting to Rs. 1,405.00 (previous year Rs. 905.00) which does not form part of the Balance Sheet.

49. In view of pandemic relating to COVID 19, the Company has considered internal and external information and has performed sensitivity analysis based on current estimates in assessing the recoverability of right-of-use assets, investment in subsidiary and other financial assets, for possible impact on the Standalone Financial Statements. However, the actual impact of COVID-19 on the Company''s standalone financial statements may differ from that estimated and the Company will continue to closely monitor any material changes to future economic conditions.

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Mar 31, 2018

* On 12 June 2017, the Board of Directors has recommended a final dividend on equity shares of H35 per share for the financial year ended 31 March 2017 and the same was approved by the shareholders at the Annual General Meeting held on 25 July 2017.

** On 12 June 2017, the Board of Directors has recommended a final dividend on CCPS of H35 per CCPS for the financial year ended 31 March 2017 and the same was approved by the shareholders at the Annual General Meeting held on 25 July 2017.

*** On 26 April 2018, the Board of Directors has recommended a final dividend on equity shares of RS,22 per share for the financial year ended 31 March 2018 and the same is yet to be approved by the shareholders in the Annual General Meeting.

This note provides an analysis of the company''s income tax expense, and how the tax expense is affected by non-assessable and nondeductible items. It also explains significant estimates made in relation to the company''s tax positions.

b) Dividend distribution tax on proposed dividend not recognized at the end of the reporting period

Since at year end, the Board of Directors of the Company in the meeting held on 26 April 2018 (previous year 12 June 2017 )have recommended the payment of final dividend to equity shareholders amounting to RS,6,672.30 (31 March 2017: RS,10,190.42). The dividend distribution tax on this proposed dividend amounting to 1,371.51 (31 March 2017: RS,2,074.53) has not been recognized since this proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

Simlarly, the Board of Directors of the Company, had recommended the payment of final dividend to preference shareholders amounting to Nil (31 March 2017: RS,424.60). The dividend distribution tax on this proposed dividend amounting to Nil (31 March 2017: RS,86.44) has not been recognized since this proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

29. Employee benefits

(i) Defined contribution plans:

Provident fund

The Company makes contributions, determined as a specified percentage of employee''s salaries, in respect of qualifying employees towards provident fund which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognized as expense towards such contribution to provident fund for the year aggregated to RS,62.41 (31 March 2017 RS,45.73) .

(ii) Defined benefit plans:

A. Gratuity

The Company has a defined benefit plan that provide gratuity. The gratuity plan entitles all eligible employees who has completed five years or more of service to receive one half month''s salary for each year of completed service at the time of retirement, superannuation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act or as per company''s scheme whichever is more beneficial. The following table summarizes the position of assets and obligations:

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity and the amounts recognized in the Company''s financial statements as at balance sheet date:

The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognized in the Balance Sheet.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior years.

h) Risk exposure:

i) Changes in discount rate

A decrease in discount yield will increase plan liabilities.

ii) Mortality table

The gratuity plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in plan liabilities.

Expected contributions to post-employment benefit plans for the year ending 31 March 2019 are RS,47.28 (31 March 2018: RS,39.33,1 April 2017: H31.80).

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 20.12 years (31 March 2017:

20.15 years, 1 April 2016: 20.10 years).

(iii) Other long term employee benefit plans

Other long term employee benefit plans comprises of compensated absences.

The Company operates compensated absences plan (earned leaves), where in every employee is entitled to the benefit equivalent to 21 days salary for every completed year of service which is subject to maximum of 60 days accumulation of leaves. The same is payable during early retirement, withdrawal of scheme, resignation by employee and upon death of employee.

The Company also recognizes sick leave provision, where in every employee is entitled to the benefit equivalent to 10 days salary for every completed year of service which is subject to maximum of 60 days accumulation of leaves. The salary for calculation of earned leave & sick leaves are last drawn basic salary.

The amount of the provision of RS,14.64 (31 March 2017: RS,12.21, 01 April 2016: RS,10.81) is presented as current liability as per the acturial report.

30. Leases Operating leases Leases as lessee

The Company has taken office premises under operating lease arrangements. The lease period for office premises taken under non-cancellable lease agreement is 9 years with lock-in-period of 3 years, thereafter the same can be cancelled by lessee by giving notice of three months to the lessor. Lease rental expenses recognized in the Statement of Profit and Loss for the year ended 31 March 2018 is RS,301.99 ( 31 March 2017: RS,210.69)

31. Contingent liabilities and commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for RS,19.90 (previous year RS,10,815.80)

b) The Company is directly or indirectly (through its members/other parties) involved in other lawsuits, claims, and proceedings, which arise in the ordinary course of business. The Company or its members/other parties have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote.

32. Provision for pending litigations

The Company''s pending litigations comprise proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. Based on current knowledge of applicable laws, the Company carries a provision of RS,22.00 (previous year RS,22 ) in its financial statements which is pertaining to various assessment years.

33. Corporate social responsibility

Pursuant to section 135 of the Companies Act, 2013, the Company has incurred expenditure in respect of eradication of hunger and malnutrition, promoting education, healthcare, art & culture, environment sustainability, disaster relief, skill development etc. Details of expenses incurred are given below:-

31 March 2018

a) Gross amount required to be spent by the Company during the year was H301.69.

b) Amount spent during the year on

31 March 2017

a) Gross amount required to be spent by the Company during the year was H274.90.

b) Amount spent during the year on

*The carrying amounts of trade receivables, trade payables, other current financial liabilities, cash and cash equivalent, bank balances other cash and cash equivalents, loans (security deposits) and other current financial assets, approximates the fair values, due to their short-term nature. In case of the non current bank deposits (due to maturity after twelve months from reporting date) and interest accrued but not due on bank deposits, and fixed deposit (in PNB Housing Finance) and interest accrued on the same, again the carrying value approximates the fair values as on the date.

#The fair values for security deposits given and deposit for settlement guarantee fund were calculated based on cash flows discounted using effective interest rate (''EIR'') method. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk/own credit risk.

Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

a) the use of quoted market prices for quoted mutual funds

b) the use of NAV for unquoted mutual funds

c) the fair value of the remaining financial instruments are discounted at appropriate discounting rate

There have been no transfers in either direction for the year ended 31 March 2018 and year ended 31 March 2017.

35. Financial Risk Management

The Company activities expose it to the followings risks arising from the financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.

Risk Management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analysis the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as regulatory risk, compliance risk, technology related risk, IT risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by an enterprise risk management committee under policies approved by the board of directors.

The Company''s audit committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from trade receivables, investments, loans and advances, cash and cash equivalents and deposits with banks and other financial assets. The carrying amount of the financial assets represents maximum credit exposure.

Credit risks on cash and cash equivalents and bank deposits is limited as the Company generally invest in deposits with banks with High credit ratings assigned by domestic credit agencies. Investments primarily include investments in liquid mutual fund units and investment in bonds with fixed interest income. The management actively monitors the net asset value of investments in mutual funds, interest rate and maturity period of these investments. The Company does not expect the counterparty to fail to meet its obligations. Further also, the Company has not experienced any significant impairment losses in respect of any of the investments. The loans primarily represents security deposits given for facilities taken on rent. Such security deposit will be returned to the Company at the end of lease term. Hence, the credit risk associated with such deposits is relatively low. Accordingly, no provision for expected credit loss has been provided on these financial assets.

Credit risk on trade receivable is also very limited. The Company mitigates its exposure to risks relating to trade receivables from its members / clients by requiring them to comply with the Company''s established financial requirements and criteria for admission as members / clients. As a process, the Company collects the amounts from buyer for purchase of power, including transmission and other charges and exchange fees on the day of trade and pay out the amount to seller for sale of power on the second day from the day of trade (one day after actual delivery). Further, transmission charges etc. are paid to system operator on the next day from the day of trade. Further, the Company also holds and maintain settlement guarantee funds for settlement of defaults by any of the members/ clients.

(ii) Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognized during the reporting periods in respect of these assets.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk, no impairment loss has been recognized during the reporting years in respect of trade receivables.

36. Financial Risk Management Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, including total cash (including bank deposits under lien) and short-term investments of RS,30,527.54 as at 31 March 2018 (31 March 2017: RS,44,037.82 ; 1 April 2016 RS,37,115.07) and anticipated future internally generated funds from operations, will enable it to meet its future known obligations in the ordinary course of business. However, liquidity needs were to arise, the Company believes it has access to financing arrangements which would enable it to meet its ongoing capital, operating and other liquidity requirements.

* the overdraft facilities may be drawn at any time

(ii) Maturities of financial liabilities

The following are the contractual maturities of financial liabilities at the reporting date. The contractual cash flow amount are gross and undiscounted.

Market risk

Market risk is the risk that future cash flows of a financial instruments will fluctuate because of change in market price. Market comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. Currency risk

Currency is the risk that the future cash flows of a financial instrument will fluctuate because of change in foreign exchange rates. The Company is not exposed to the effects of fluctuations in the prevailing foreign exchange rates on its financial position and cash flows since all financial assets / liabilities are receivable / payable in Indian currency.

Fair value sensitivity analysis for fixed-rate instruments

The company''s fixed rate instruments are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders. For the purpose of the Company''s capital management, the Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity. For this purpose, adjusted net debt is defined as total liabilities less cash and cash equivalents & bank balance other than cash and cash equivalents. Adjusted equity includes issued equity share capital, Instruments entirely equity in nature and other equity comprises share premium, retained earnings etc..

38. Operating segments

The Company is a power exchange. The entire operations are governed by the similar set risk and returns. Accordingly, the Company''s activities/ business is reviewed regularly by the Company''s Managing Director along with the Board of Directors of the Company, from an overall business perspective, rather than reviewing its activities as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS 108 - Operating Segments.

39. Related Party Disclosures a) List of Related parties:

i) Key Managerial Personnel (KMP):

Satyanarayan Goel Managing director & CEO

Dinesh Kumar Mehrotra Independent director

Kayyalathu Thomas Chacko Independent director

Vallabh Bhanshali Independent director

Ajeet Kumar Agarwal (REC representative ) Non executive director (Nominee)

* Amount is exclusive of tax.

# Does not include gratuity and compensated absences as these are provided based on the Company as whole.

@ Provision towards variable pay as per his terms of appointment

40. First-time Adoption of Ind AS

With effect from 1 April 2017, the Company is required to prepare its financial statements in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ''Act'') (including subsequent amendments thereto) and other relevant provisions of the Act. Accordingly, the Company''s management has now prepared the Ind AS financial statements.

In preparing these Ind AS Financial Statements, the Company''s Opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS.

According to Ind AS 101, the first Ind AS financial statements must use recognition and measurement principles that are based on standards and interpretations that are effective at 31 March 2018, the date of first-time preparation of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial Statements.

Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1 April 2016 compared with those presented in the Indian GAAP Balance Sheet as of 31 March 2016, were recognized in equity under retained earnings within the Ind AS Balance Sheet.

Following notes explain the principal adjustments made by the Company in restating Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Optional exemptions availed and mandatory exceptions

In the Ind AS Opening Balance Sheet as at 1 April 2016, the carrying amounts of assets and liabilities from the Indian GAAP as at 31 March 2016 are generally recognized and measured according to Ind AS in effect. For certain individual cases, however, Ind AS 101 provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and exceptions in preparing its Ind AS Opening Balance Sheet:

i. Property, plant and equipment and other intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and other intangible assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment and other intangible assets at their previous GAAP carrying value.

ii. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. Key estimates considered in preparation of financial statements that one not required under the previous GAAP are listed below :

-Fair valuation of financial instruments carried at FVTPL.

-Determination of discounted value of financial instruments carried at amortized cost.

iii. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively except where the same is impracticable.

iv. Classification and measurement of financial liabilities

Ind AS 101 requires an entity to assess classification of financial liabilities on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial liabilities accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial liabilities based on facts and circumstances that exist on the date of transition. Measurement of the financial liabilities accounted at amortized cost has been done retrospectively except where the same is impracticable.

Notes to first-time adoption:

(a) Financial assets (Loans): Security deposits

Under Indian GAAP, interest free security deposits (that are refundable in cash on completion of the term as per the contract) are recorded at their transaction value. Under Ind AS, such financial assets are required to be recognized initially at their fair value and subsequently at amortized cost. Difference between the fair value and transaction value of the security deposit has been recognized as deferred rent. Consequent to this change the amount of security deposit as on 31 March 2017 has decreased by RS,75.53 (1 April 2016: RS,83.83) with a creation of deferred rent (included in other non-current and current assets) of RS,68 (1 April 2016: RS,78.41). The other equity (net) decreased by RS,5.42 as at 1 April 2016. The unwinding of security deposit happens by recognition of a notional interest income in Statement of Profit and Loss at effective interest rate. The deferred rent gets amortized on a straight line basis over the term of the security deposits. The profit and other equity for the year ended 31 March 2017 decreased by RS,2.11 due to Amortization of deferred rent by RS, 10.41 (included in other expenses), and increase in notional interest income of H8.3 recognized on security deposits (included in other income).

(b) Financial liabilities

Under Indian GAAP, interest free long term liabilities for which the Company has contractual obligation to deliver cash or another financial asset to another entity such as settlement guarantee fund (SGF) are recorded at their transaction value. Under Ind AS, such financial liabilities are required to be recognized initially at their fair value and subsequently at amortized cost. Difference between the fair value and transaction value of the SGF has been recognized as deferred income. Consequent to this change the amount of SGF as on 31 March 2017 has decreased by RS,25.06 (1 April 2016: RS,41.16) with a creation of deferred income (included in other non-current and current liability) of RS,24.34 (1 April 2016 : RS,38.87 ). The other equity increased by RS,2.29 as at 1 April 2016. The unwinding of SGF happens by recognition of a notional interest expense in Statement of Profit and Loss at effective interest rate. The deferred income gets recognized on a straight line basis over the term of the security deposits. The profit and other equity for the year ended 31 March 2017 decreased by RS,1.56 due to recognition of deferred income by RS,26.95 (included in revenue from operation), and increase in notional interest expense of RS,28.51 recognized on SGF (included in finance cost).

(c) Fair valuation of Investments

Under Indian GAAP, investments in mutual funds were classified as current investments and non-current investments, respectively, based on intended holding period and reliability. The current investments were carries at lower of cost or fair value, Under Ind AS, these investments are required to be measured at fair value, the resulting fair value changes of these investments amounting to RS,31.98 have been recognized in retained earnings as at the date of transition (i e 1 April 2016) and subsequently in the profit and loss for the year ended 31 March 2017. This has increased the profit by RS,14.93 as at 31 March 2017.

(d) Deferred taxes

Under Indian GAAP accounting for deferred tax, using the income statement approach, which focuses on differences between taxable profits and accounting profits for the year. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

In addition, the various transitional adjustments lead to temporary differences. On the date of transition (i.e 1 April 2016), the net impact on deferred tax liabilities is of RS,(3.63) [31 March 2017: RS,(30.51)]. The profit and other equity for the year ended 31 March 2017 have decreased by RS,26.88 due to differences in temporary differences.

(e) Provisions : Proposed dividend

Under Indian GAAP up to 31 March 2016, dividend proposed by the Board of Directors after the reporting period but before the approval of the financial statements were considered as adjusting events. Accordingly, the provision for proposed dividend was recognized as liability. Under Ind AS such dividends are recognized when the same is approved by the shareholders in the annual general meeting. Accordingly, the total liability recorded for proposed dividend and corporate dividend tax of RS,7,300.55 as at 1 April 2016 included in the provisions has been reversed with corresponding adjustment to reserves and surplus. Consequently, the other equity increased by RS,7,300.55 as at 1 April 2016.

The Ministry of Corporate Affairs, Government of India, vide Notification No. G.S.R. 739(E), dated 7th December, 2006, notified Companies (Accounting Standards) Rules 2006, Amended the AS 4 (effective from 1 April 2016), stating that dividends declared after the balance sheet date but before the financial statements are approved for issue, are not recognized as a liability at the balance sheet date because no obligation exists at that time unless a statute requires otherwise, therefore, for the year ended 31 March 2017 no provision was considered in the books of accounts in relation to the proposed divided as per Indian GAAP also.

(f) Employee benefits :

Under lnd AS, remeasurements i.e. actuarial gains and losses on the net defined benefit liabi1ity are recognized in other comprehensive income instead of statement of profit and loss. Under Indian GAAP these were forming part of the statement of profit and loss for the year. As a result of this change, the employee benefit expense to the extent of actuarial loss amounting to RS,2.05 for the year ended 31 March 2017 has been reduced with corresponding impact on Other Comprehensive Income. There is no impact on the other equity as at 31 March 2016.

During the year ended 31 March 2017, compensated absences for sick leaves had been provided for the first time. Accordingly expenses for the prior period have been adjusted in the opening provision amounting RS,9.50.

(g) Lease equalization reserves

Under Indian GAAP, operating lease charges are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term and lease equalization reserve (''LER'') is to be amortized over the lease term. In case operating lease charges are related to pre-construction period then the same should be capitalized as part of leasehold improvement and to be depreciated over the lease term.

However, under Ind AS, Lease payments under an operating lease shall be recognized as an expense on a straight line basis over lease term only if the payments to the lessor are not structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases. Since, escalation allowed in lease arrangement in respect of office premises taken by the Company represents general inflation. Hence, lease payments under an operating lease shall not be required to be recognize on a straight line basis over lease term.

The effect of the adjustments resulted in reversal in the value of lease equalization reserves of RS,70.01 (31 March 2017: RS,96.24) with corresponding decrease in leasehold improvements by RS,33.03 (31 March 2017: RS,28.65) comprises of depreciation charged of RS,5.29 (31 March 2017: RS,9.67) and increase in retained earnings by RS,36.98 on transition date.

During the year ended 31 March 2017, reversal of the value of lease equalization reserves of RS,26.23 with corresponding decrease in rent expenses and reversal of accumulated depreciation on leasehold improvement with corresponding decrease in depreciation of H4.38 resulted in increase in profit and loss by RS,30.61.

(h) ESOP trust

Under IND AS, the ESOP trust has been treated as an extension of the Company and accordingly shares held by ESOP Trust are treated as treasury shares. Consequently, all the assets, liabilities, income and expenses of the trust area accounted for as assets, liabilities, income and expenses of the Company, except for profit / loss on issue of shares to the employees and dividend paid on the shares held by ESOP trust which are directly taken to the ESOP Trust Reserve.

(i) Other equity :

Retained earnings as at 1 April 2016 has been adjusted consequent to the above Ind AS transition adjustments. Refer ''Reconciliation of total equity as at 31 March 2017 and 1 April 2016'' as given above for details.

(j) Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Items that have been reclassified from statement of profit and loss to other comprehensive income includes remeasurement of defined benefit plans net of tax. Hence, on overall basis, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

(k) Statement of cash flows

The impact of transition from Indian GAAP to Ind AS on the statement of cash flow is due to reclassification adjustments recorded under Ind AS balance sheet and statement of profit and loss. The transition from Indian GAAP to Ind AS does not have a material impact of the statement of cash flow of the Company.

(l) Employee stock option compensation expenses

Under Indian GAAP, employee stock options compensation expenses was recorded at intrinc value method. However according to Ind AS, employee stock options compensation expenses have to be recorded at fair value.

@ For the purpose of this disclosure, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated 8 November 2016.

1. Share based payment arrangements: a. Description of share-based payment arrangements

During the financial year 2010-2011, the Company had framed an Employee Stock Option Scheme - 2010 ("ESOP 2010"), which was duly approved by the Shareholders and Board of Directors of the Company. Accordingly, the Company allotted 606,572 number of equity shares of H10 each to IEX ESOP Trust ("ESOP Trust") who will administer ESOP 2010 on behalf of the Company. Subsequently, ESOP 2010 has been amended by special resolution passed at the Extra-ordinary General Meeting held on 16 May 2017 by the shareholders of the Company.

Further, the Shareholders of the Company vide their special resolution passed at the Annual General Meeting held on 27 September 2013 had authorized the Board of Directors/ Compensation Committee of the Company to vary the terms of ESOP''s including the vesting period for selective/specific eligible employees in respect of the options which have yet not been granted or granted but which have not been vested yet, subject to a minimum vesting period of one year from the date of grant under ESOP 2010.

The risk-free interest rate being considered for the calculation is the interest rate applicable for maturity equal to the expected life of the options based on the zero-yield curve for Government Securities. Expected volatility calculation is based on historical net asset method of valuation.

The options outstanding at 31 March 2018 have an exercise price in the range of RS,150 to RS,750 (31 March 2017: RS,150 to RS,535) and a weighted average remaining contractual life of 2.38 years (31 March 2017: 1.75 years)

The weighted average share price at the date of exercise for share options exercised in 2017-18 was RS,268.46 for 32,500 shares (2016-17: no options exercised).

2. The Company had constituted a separate ''Settlement Guarantee Fund'' (''SGF'') in respect of the activities carried out in various contracts being traded at the exchange platform. The members are required to contribute to the fund in the form of interest free margin money, which forms part of the SGF. The margin money is refundable, subject to adjustments, if any. Such fund is also termed as Settlement Guarantee Fund. The Cash Margin Money forming part of SGF was RS,11,671.76 (previous year RS,6,326.84) disclosed under note 17 - Other current financial liabilities RS,11,555.79 (previous year RS,6,213.55) under Security Deposits towards Settlement Guarantee Fund and note 17 - Other noncurrent financial liabilities - Deposits towards Settlement Guarantee Fund RS,115.97 (previous year RS,113.29). The Company had also collected non cash portion of the Settlement Fund comprising collateral such as bank guarantees, received from the members amounting to RS,800.00 (previous year RS,820.00) which does not form part of the Balance Sheet. These balances have been accounted for on amortized cost basis.

3. Recent accounting pronouncements

Standards issued but not yet effective:

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On 28 March 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from 01 April 2018. The Company has evaluated the effect of this on the financial statements and the impact is not significant.

Ind AS 115- Revenue from Contract with Customers:

On 28 March 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The Company will adopt the standard on 01 April 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended 31 March 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.