Notes to Accounts of NTPC Green Energy Ltd.

Mar 31, 2025

7. Provisions, contingent liabilities and contingent

assets

a) A provision is recognized 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
recognized as a finance cost.

b) The amount recognized 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.

c) 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 recognized 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 reimbursement, if any.

d) Contingent liabilities are possible obligations
that arise from past events and whose
existence will only be confirmed by the
occurrence or non-occurrence of one or more
future events not wholly within the control of
the Company. Where it is not probable that an

outflow of economic benefits will be required,
or the amount cannot be estimated reliably, the
obligation is disclosed as a contingent liability,
unless the probability of outflow of economic
benefits is remote. 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.

e) Contingent assets are possible assets that
arise from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control of
the Company. Contingent assets are disclosed
in the financial statements when inflow of
economic benefits is probable on the basis of
judgment of management. These are assessed
continually to ensure that developments
are appropriately reflected in the financial
statements.

f) Present obligations arising under onerous
contracts are recognised and measured as
provisions. An onerous contract is considered
to exist where the Company has a contract
under which the unavoidable costs of meeting
the obligations under the contract exceed the
economic benefits expected to be received
from the contract.

8. Foreign currency transactions and translation

a) Transactions in foreign currencies are initially
recorded at the functional currency spot
exchange rates at the date the transaction first
qualifies for recognition.

b) Monetary assets and liabilities denominated
in foreign currencies outstanding at the
reporting date are translated at the functional
currency spot rates of exchange prevailing
on that date. Exchange differences arising on
settlement or translation of monetary items
are recognized in the statement of profit and
loss in the year in which it arises.

9. Revenue

Company''s revenues arise from sale of energy,

consultancy, project management & supervision

services, and other income.

9.1. Revenue from sale of energy

a) Major portion of revenue from energy
sale where CERC tariff Regulations are not
applicable is recognized based on the rates,
terms & conditions mutually agreed with the
beneficiaries.

b) Certain projects of the Company are also
regulated under the Electricity Act, 2003.
Accordingly, the CERC determines the tariff for
the Company for such power plants based on
the norms prescribed in the tariff regulations
as applicable from time to time. In such cases,
Revenue from sale of energy is accounted for
based on tariff rates approved by the CERC
(except items indicated as provisional) as
modified by the orders of Appellate Tribunal
for Electricity to the extent applicable. In case
of power stations where the tariff rates are yet
to be approved/items indicated provisional
by the CERC in their orders, provisional rates
are adopted considering the applicable
CERC Tariff Regulations. Revenue from sale
of energy is recognized once the electricity
has been delivered to the beneficiary and is
measured through a regular review of usage
meters. Beneficiaries are billed on a periodic
and regular basis. As at each reporting date,
revenue from sale of energy includes an
accrual for sales delivered to beneficiaries
but not yet billed i.e. contract assets/ unbilled
revenue.

c) Rebates allowed to beneficiaries as early
payment incentives are deducted from the
amount of revenue.

9.2. Revenue from services

a) Revenue from consultancy, project
management and supervision services
rendered is measured based on the
consideration that is specified in a contract
with a customer or is expected to be received
in exchange for the services, which is
determined on output method and excludes
amounts collected on behalf of third parties.
The Company recognizes revenue when the
performance obligation is satisfied, which
typically occurs when control over the services
is transferred to a customer.

b) Contract modifications are accounted for when
additions, deletions or changes are approved
either to the contract scope or contract price.

The accounting for modifications of contracts
involves assessing whether the services
added to an existing contract are distinct and
whether the pricing is at the standalone selling
price. Services added that are not distinct are
accounted for on a cumulative catch up basis,
while those that are distinct are accounted for
prospectively, either as a separate contract,
if the additional services are priced at the
standalone selling price, or as a termination
of the existing contract and creation of a new
contract if not priced at the standalone selling
price.

9.3. Other income

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

b) Insurance claims for loss of profit are accounted
for in the year of acceptance. Other insurance
claims are accounted for based on certainty of
realization.

c) Revenue from rentals is recognized on an
accrual basis in accordance with the substance
of the relevant agreement.

d) The interest/surcharge on late payment/
overdue trade receivables for sale of energy is
recognized when no significant uncertainty as
to measurability or collectability exists.

e) Interest/surcharge recoverable on advances
to contractors and suppliers as well as
warranty claims wherever there is uncertainty
of realization/acceptance are not treated as
accrued and are therefore, accounted for on
receipt/acceptance.

f) Dividend income is recognized in profit or loss
only when the right to receive is established,
it is probable that the economic benefits
associated with the dividend will flow to the
Company, and the amount of the dividend can
be measured reliably.

10. Employee benefits

10.1. Defined contribution plans

A defined contribution plan is a post-employment

benefit plan under which an entity pays fixed

contributions to separate entities and will have

no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined
contribution plans are recognized as an employee
benefits expense in 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 the regional
provident fund commissioner. The contributions to
the fund for the year are recognized as expense and
are charged to the statement of profit and loss.

In respect of employees of NTPC Limited on
secondment basis, employee benefits include
provident fund, gratuity, post-retirement medical
facilities, compensated absences, long service
award, economic rehabilitation scheme & other
terminal benefits. In terms of arrangement with
NTPC, NGEL makes a fixed percentage contribution
of the aggregate of basic pay and dearness
allowance for the period of service rendered in the
Company to NTPC. Accordingly, these employee
benefits are treated as defined contribution
schemes. The contributions to the fund for the year
are recognized as an expense and charged to the
statement of profit and loss.

10.2. Other long-term employee benefits

Benefits under the Company''s leave encashment
and satisfactory service grant constitute other long
term employee benefits.

The actuarial calculation is performed annually
by a qualified actuary using the projected unit
credit method. Any actuarial gains or losses are
recognized in statement of profit and loss account
in the period in which they arise.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

10.3. Short-term benefits

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.

A liability is recognized for the amount expected
to be paid under performance related pay 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.

11. Income tax

a) Income tax expense comprises current and
deferred tax. Current tax expense is recognized
in statement of profit and loss except to the
extent that it relates to items recognized
directly in OCI or equity, in which case it is
recognized in OCI or equity, respectively.

b) Current tax is the expected tax payable on the
taxable income for the year computed as per
the provisions of Income Tax Act, 1961, using
tax rates enacted or substantively enacted
by the end of the reporting period, and
any adjustment to tax payable in respect of
previous years.

c) Deferred tax is recognized using the balance
sheet method, on temporary differences
between the carrying amounts of assets and
liabilities for financial reporting purposes
and the tax bases of assets and liabilities.
Deferred tax is measured at the tax rates that
are expected to be applied to temporary
differences when they materialize, 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 assets against the current tax
liabilities, and they relate to income taxes
levied by the same tax authority.

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

e) Deferred tax liability is recognized for all
taxable temporary differences, except when
the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, 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 differences.

f) A deferred tax asset is recognized for all
deductible temporary differences to the extent
that it is probable that future taxable profits
will be available against which the deductible

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 sufficient taxable
profits will be available in future to allow all or
part of deferred tax assets to be utilized.

g) When there is uncertainty regarding income
tax treatments, the Company assesses whether
a tax authority is likely to accept an uncertain
tax treatment. If it concludes that the tax
authority is unlikely to accept an uncertain
tax treatment, the effect of the uncertainty
on taxable income, tax bases and unused tax
losses and unused tax credits is recognised.
The effect of the uncertainty is recognised
using the method that, in each case, best
reflects the outcome of the uncertainty: the
most likely outcome or the expected value. For
each case, the Company evaluates whether
to consider each uncertain tax treatment
separately, or in conjunction with another
or several other uncertain tax treatments,
based on the approach that best prefixes the
resolution of uncertainty.

12. Leases (as lessee)

a) 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: (1) the contact involves the use
of an identified asset (2) the Company has
substantially all of the economic benefits from
use of the asset through the period of the lease
and (3) the Company has the right to direct the
use of the asset.

b) The Company recognizes a right-of-use asset
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 leases for low value
underlying assets. For these short-term and
leases for low value underlying assets, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over
the term of the lease.

c) Certain lease arrangements include the
options to extend or terminate the lease before

the end of the lease term. Right-of use assets
and lease liabilities include these options
when it is reasonably certain that the option
to extend the lease will be exercised/option to
terminate the lease will not be exercised.

d) The right-of-use assets are initially recognized
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 less any lease incentives.
They are subsequently measured at cost
less accumulated depreciation/amortization
and impairment losses and adjusted for any
reassessment of lease liabilities

e) Right-of-use assets are depreciated/amortized
from the commencement date to the end of
the useful life of the underlying asset, if the
lease transfers ownership of the underlying
asset by the end of lease term or if the cost of
right-of-use assets reflects that the purchase
option will be exercised. Otherwise, Right-of-
use assets are depreciated/amortized from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset.

f) Right-of-use assets are evaluated for
recoverability whenever events or changes
in circumstances indicate that their carrying
amounts may not be recoverable. For
the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair
value less costs of disposal and the value-in¬
use) is determined on an individual asset basis
unless the asset does not generate cash flows
that are largely independent of those from
other assets. In such cases, the recoverable
amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.

g) The lease liability is initially measured at
amortized cost at the present value of the
future lease payments. In calculating the
present value, lease payments are discounted
using the interest rate implicit in the lease
or, if not readily determinable, using the
incremental borrowing rate. Lease liabilities
are re-measured with a corresponding
adjustment to the related right-of-use asset if
the Company changes its assessment whether
it will exercise an extension or a termination
option.

13. Impairment of non-financial assets

a) The carrying amounts of the Company''s
non-financial assets are reviewed at each
reporting date to determine whether there is
any indication of impairment considering the
provisions of Ind AS 36 - ''Impairment of Assets''
If any such indication exists, then the asset''s
recoverable amount is estimated.

b) The recoverable amount of an asset or cash¬
generating unit is the higher of its fair value
less costs of 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").

c) 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.

d) 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 accumulated
depreciation or amortization, if no impairment
loss had been recognized.

14. Dividends

Dividends and interim dividends payable to the
Company''s shareholders are recognized as changes
in equity in the period in which they are approved
by the shareholders and the Board of Directors
respectively.

15. Material prior period errors

Material prior period errors are corrected
retrospectively by restating the comparative

amounts for the prior periods presented in which
the error occurred. If the error occurred before the
earliest period presented, the opening balances of
assets, liabilities and equity for the earliest period
presented, are restated.

16. Earnings 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.

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.

The number of equity shares and potentially
dilutive equity shares are adjusted retrospectively
for all periods presented for any bonus shares
issued during the financial year.

17. Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
The Company recognizes a financial asset or a
financial liability only when it becomes party to the
contractual provisions of the instrument.

17.1. Financial assets

Initial recognition and measurement

All financial assets are recognized at fair value on
initial recognition, except for trade receivables
which are initially measured at transaction price.
Transaction costs that are directly attributable to
the acquisition of financial assets, which are not
valued at fair value through profit or loss, are added
to the fair value on initial recognition.

Subsequent measurement

Business model assessment

The Company holds financial assets which arise
from its ordinary course of business. The objective
of the business model for these financial assets is
to collect the amounts due from the Company''s
receivables and to earn contractual interest income
on the amounts collected.

Investment in Equity instruments

Equity investments in subsidiaries and joint venture
companies are accounted at cost less impairment,
if any.

The Company reviews the carrying value of
investments at each reporting date to determine
whether there is any indication of impairment. If
any such indication exists, then the recoverable
amount of the investment is estimated. If the
recoverable amount is less than the carrying
amount, the impairment loss is recognized in the
statement of profit and loss.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset or part of a Group of similar financial
assets) is primarily de-recognized (i.e. removed
from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ''pass-through''
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

The difference between the carrying amount and
the amount of consideration received/receivable is
recognized in the statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109-''Financial
instruments'', the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets
and credit risk exposure:

(a) Financial assets which are measured at
amortized cost e.g., deposits, bank balances
etc.

(b) Trade receivables (including unbilled revenue)
and contract assets under Ind AS 115.

For trade receivables and contract assets/unbilled
revenue, the Company applies the simplified
approach required by Ind AS 109 Financial

Instruments, which requires lifetime expected
losses to be recognized from initial recognition.

For recognition of impairment loss on other
financial assets and risk exposure (other than
purchased or originated credit impaired financial
assets), the Company determines that whether
there has been a significant increase in the credit
risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of the
instrument improves such that there is no longer
a significant increase in credit risk since initial
recognition, then the entity reverts to recognizing
impairment loss allowance based on 12 month ECL.

For purchased or originated credit impaired
financial assets, a loss allowance is recognized
for the cumulative changes in lifetime expected
credited losses since initial recognition.

17.2. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and financial liabilities
at amortized cost, as appropriate. All financial
liabilities are recognized initially at fair value and,
in the case of liabilities subsequently measured
at amortized cost net of directly attributable
transaction cost. The Company''s financial liabilities
include trade and other payables and borrowings.

Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at amortized cost

After initial measurement, such financial liabilities
are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognized in
statement of profit and loss when the liabilities
are derecognized as well as through the EIR
amortization process Amortized cost is calculated
by taking into account any discount or premium
on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in
finance costs in the statement of profit and loss.
This category generally applies to borrowings,
trade payables and other contractual liabilities.

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term. This category also includes
derivative financial instruments entered into by
the Company that are not designated as hedging
instruments in hedge relationships as defined by
Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are
recognized in the statement of profit and loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated at the initial date of recognition, and
only if the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit
risk is recognized in OCI. These gains/losses are
not subsequently transferred to profit and loss.
However, the Company may transfer the cumulative
gain or loss within equity on disposal. All other
changes in fair value of such liability are recognized
in the statement of profit and loss. The Company
has not designated any financial liability as at fair
value through profit and loss.

De-recognition

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
statement of profit and loss.

17.3. Offsetting of financial assets and financial
liabilities

Financial assets and financial liabilities are offset
and the net amount is presented in the balance

sheet if there is a currently enforceable legal right
to offset the recognized amounts and there is an
intention to settle on a net basis, to realize the
assets and settle the liabilities simultaneously.

D. Use of estimates and management judgments

The preparation of financial statements requires
management to make judgments, estimates and
assumptions that may impact the application of
accounting policies and the reported value of assets,
liabilities, revenue, expenses and related disclosures
concerning the items involved as well as contingent
assets and liabilities at the balance sheet date. The
estimates and management''s judgments are based
on previous experience & other factors considered
reasonable and prudent in the circumstances. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are
revised and in any future periods affected.

In order to enhance understanding of the financial
statements, information about significant areas of
estimation, uncertainty and critical judgments in
applying accounting policies that have the most
significant effect on the amounts recognized in the
financial statements is as under:

1. Formulation of accounting policies

The accounting policies are formulated in a manner
that results in financial statements containing relevant
and reliable information about the transactions, other
events and conditions to which they apply. Those
policies need not be applied when the effect of applying
them is immaterial.

2. Useful life of property, plant and equipment and
intangible assets

The estimated useful life of property, plant and
equipment and intangible assets is based on a number
of factors including the effects of obsolescence,
demand, competition and other economic factors (such
as the stability of the industry and known technological
advances) and the level of maintenance expenditures
required to obtain the expected future cash flows from
the asset.

Useful life of the assets of the generation of electricity
business (where tariff is regulated) is determined by the
CERC Tariff Regulations in accordance with Schedule II
of the Companies Act, 2013.

3. Recoverable amount of property, plant and
equipment and intangible assets

The recoverable amount of property, plant and
equipment and intangible assets is based on estimates
and assumptions regarding in particular the expected
market outlook and future cash flows associated with
the power plants. Any changes in these assumptions
may have a material impact on the measurement of the
recoverable amount and could result in impairment.

4. Revenues

The Company records a part of revenue from sale of
energy based on tariff rates approved by the CERC
as modified by the orders of Appellate Tribunal for
Electricity, as per principles enunciated under Ind AS
115. However, in cases where tariff rates are yet to be
approved, provisional rates are adopted considering
the applicable CERC Tariff Regulations.

5. Leases not in legal form of lease

Significant judgment is required to apply lease
accounting rules as per Ind AS 116 in determining
whether an arrangement contains a lease. In
assessing arrangements entered into by the Company,
management has exercised judgment to evaluate the
right to use the underlying asset, substance of the
transactions including legally enforceable agreements
and other significant terms and conditions of the

arrangements to conclude whether the arrangement
meets the criteria as per Ind AS 116.

6. Provisions and contingencies

The assessments undertaken in recognizing provisions
and contingencies have been made in accordance
with Ind AS 37,- ''Provisions, contingent liabilities and
contingent assets'' The evaluation of the likelihood
of the contingent events require best judgment by
management regarding the probability of exposure to
potential loss. Should circumstances change following
unforeseeable developments, this likelihood could
alter.

7. Impairment test of investments in Subsidiaries and
Joint Venture Companies

The recoverable amount of investment in subsidiaries
and joint venture companies is based on estimates and
assumptions regarding in particular the future cash
flows associated with the operations of the investee
Company. Any changes in these assumptions may
have a material impact on the measurement of the
recoverable amount and could result in impairment.

8. Income taxes

Significant estimates are involved in determining
the provision for current and deferred tax, including
amount expected to be paid/recovered for uncertain
tax positions.

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Mar 31, 2024

7. Provisions, contingent liabilities and contingent assets

A provision is recognized 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 recognized as a finance cost.

The amount recognized 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 recognized 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 reimbursement, if any.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed
by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated
reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits
is remote. 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 assets are possible assets that arise from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company. Contingent assets are disclosed in the financial statements when inflow of economic benefits is probable
on the basis of judgment of management. These are assessed continually to ensure that developments are
appropriately reflected in the financial statements.

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract
is considered to exist where the Company has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received from the contract.

8. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot exchange rates at the date
the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies outstanding at the reporting date are translated
at the functional currency spot rates of exchange prevailing on that date. Exchange differences arising on settlement
or translation of monetary items are recognized in the statement of profit and loss in the year in which it arises.

9. Revenue

Company''s revenues arise from sale of energy, consultancy, project management & supervision services, and
other income. Revenue from other income comprises interest from banks, contractors etc., dividend from
investments in joint venture & subsidiary companies, surcharge received from beneficiaries for delayed payments,
sale of scrap, other miscellaneous income, etc.

9.1. Revenue from sale of energy

A portion of Revenue from sale of energy is accounted for based on tariff rates approved by the CERC. In such
cases, Revenue from sale of energy is accounted for based on tariff rates approved by the CERC (except items

indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In
case of power stations where the tariff rates are yet to be approved/items indicated provisional by the CERC in
their orders, provisional rates are adopted considering the applicable CERC Tariff Regulations. Revenue from sale
of energy is recognized once the electricity has been delivered to the beneficiary and is measured through a
regular review of usage meters. Beneficiaries are billed on a periodic and regular basis. As at each reporting date,
revenue from sale of energy includes an accrual for sales delivered to beneficiaries but not yet billed i.e. contract
assets/ unbilled revenue.

Part of revenue from energy sale where CERC tariff Regulations are not applicable is recognized based on the
rates, terms & conditions mutually agreed with the beneficiaries and trading of power through power exchanges.

Rebates allowed to beneficiaries as early payment incentives are deducted from the amount of revenue.

Revenue from sale of energy saving certificates/carbon credits is accounted for as and when sold.

9.2. Revenue from services

Revenue from consultancy, project management and supervision services rendered is measured based on the
consideration that is specified in a contract with a customer or is expected to be received in exchange for the
services, which is determined on output method and excludes amounts collected on behalf of third parties. The
Company recognizes revenue when the performance obligation is satisfied, which typically occurs when control
over the services is transferred to a customer.

Reimbursement of expenses is recognized as other income, as per the terms of the service contracts.

Contract modifications are accounted for when additions, deletions or changes are approved either to the contract
scope or contract price. The accounting for modifications of contracts involves assessing whether the services
added to an existing contract are distinct and whether the pricing is at the standalone selling price. Services
added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are
accounted for prospectively, either as a separate contract, if the additional services are priced at the standalone
selling price, or as a termination of the existing contract and creation of a new contract if not priced at the
standalone selling price.

9.3. Other income

Interest income is recognized, when no significant uncertainty as to measurability or collectability exist, on a time
proportion basis taking into account the amount outstanding and the applicable interest rate, using the effective
interest rate method (EIR). For debt instruments measured either at amortized cost or at fair value through other
comprehensive income (OCI), interest income is recognized using the EIR to the gross carrying amount of the
financial asset and included in other income in the statement of profit and loss. For purchased or originated
credit-impaired (POCI) financial assets interest income is recognized by calculating the credit-adjusted EIR and
applying that rate to the amortized cost of the asset.

Insurance claims for loss of profit are accounted for in the year of acceptance. Other insurance claims are accounted
for based on certainty of realization.

The interest/surcharge on late payment/overdue trade receivables for sale of energy is recognized when no
significant uncertainty as to measurability or collectability exists.

Interest/surcharge recoverable on advances to contractors and suppliers as well as warranty claims wherever
there is uncertainty of realization/acceptance are not treated as accrued and are therefore, accounted for on
receipt/acceptance.

Dividend income is recognized in profit or loss only when the right to receive is established, it is probable that the
economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be
measured reliably.

10. Employee benefits

The employees of the company are on secondment from NTPC Limited (the parent company). Employee benefits
include provident fund, pension, gratuity, post-retirement medical facilities, compensated absences, long service

award, economic rehabilitation scheme and other terminal benefits. In terms of arrangement with the Parent
Company, the Company is required to make a fixed percentage contribution of the aggregate of basic pay and
dearness allowance for the period of service rendered in the Company. Accordingly, these employee benefits are
treated as defined contribution schemes.

11. Other expenses

Expenses on training & recruitment are charged to the Statement of Profit and Loss in the year incurred.

Preliminary expenses on account of new projects incurred prior to approval of feasibility report/techno economic
clearance/winning of project under tender based competitive bidding system are charged to statement of profit
and loss.

Net pre-commissioning income/expenditure is adjusted directly in the cost of related assets and systems.

12. Income tax

Income tax expense comprises current and deferred tax. Current tax expense is recognized in statement of profit
and loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized
in OCI or equity, respectively.

Current tax is the expected tax payable on the taxable income for the year computed as per the provisions of
Income Tax Act, 1961, using tax rates enacted or substantively enacted by the end of the reporting period, and
any adjustment to tax payable in respect of previous years.

Deferred tax is recognized using the balance sheet method, on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the tax bases of assets and liabilities. Deferred tax is
measured at the tax rates that are expected to be applied to temporary differences when they materialize, 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 assets against the current tax liabilities,
and they relate to income taxes levied by the same tax authority.

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

Deferred tax liability is recognized for all taxable temporary differences, except when the deferred tax liability
arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination
and, 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 differences.

A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which the deductible 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.

When there is uncertainty regarding income tax treatments, the Company assesses whether a tax authority is
likely to accept an uncertain tax treatment. If it concludes that the tax authority is unlikely to accept an uncertain
tax treatment, the effect of the uncertainty on taxable income, tax bases and unused tax losses and unused tax
credits is recognised. The effect of the uncertainty is recognised using the method that, in each case, best reflects
the outcome of the uncertainty: the most likely outcome or the expected value. For each case, the Company
evaluates whether to consider each uncertain tax treatment separately, or in conjunction with another or several
other uncertain tax treatments, based on the approach that best prefixes the resolution of uncertainty.

13. Leases
As lessee

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: (1) the contact involves the use of an identified asset (2) the Company has substantially
all of the economic benefits from use of the asset through the period of the lease and (3) the Company has the
right to direct the use of the asset.

The Company recognizes a right-of-use asset 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 leases for low
value underlying assets. For these short-term and leases for low value underlying assets, 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.
Right-of use assets and lease liabilities include these options when it is reasonably certain that the option to
extend the lease will be exercised/option to terminate the lease will not be exercised.

Right-of-use assets are depreciated/amortized from the commencement date to the end of the useful life of the
underlying asset, if the lease transfers ownership of the underlying asset by the end of lease term or if the cost of
right-of-use assets reflects that the purchase option will be exercised. Otherwise, Right-of-use assets are
depreciated/amortized from the commencement date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset.

Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less costs of disposal and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. In
calculating the present value, lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rate. Lease liabilities are re-measured with a corresponding
adjustment to the related right-of-use asset if the Company changes its assessment whether it will exercise an
extension or a termination option.

14. Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment considering the provisions of Ind AS 36 - ''Impairment of Assets''. If
any such indication exists, then the asset''s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs of 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 accumulated depreciation
or amortization, if no impairment loss had been recognized.

15. Operating segments

In accordance with Ind AS 108-''Operating segments'', 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 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.

16. Dividends

Dividends and interim dividends payable to the Company''s shareholders are recognized as changes in equity in
the period in which they are approved by the shareholders and the Board of Directors respectively.

17. Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior
periods presented in which the error occurred. If the error occurred before the earliest period presented, the
opening balances of assets, liabilities and equity for the earliest period presented, are restated.

18. Earnings 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.

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.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any bonus shares issued during the financial year.

19. Statement of cash flows

Statement of cash flows is prepared in accordance with the indirect method prescribed in Ind AS 7-''Statement of
cash flows''.

20. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. The Company recognizes a financial asset or a financial liability only when it
becomes party to the contractual provisions of the instrument.

20.1. Financial assets

Initial recognition and measurement

All financial assets are recognized at fair value on initial recognition, except for trade receivables which are initially
measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets,
which are not valued at fair value through profit or loss, are added to the fair value on initial recognition.

Subsequent measurement

Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance
income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of
profit and loss. This category generally applies to trade and other receivables.

Business model assessment

The Company holds financial assets which arise from its ordinary course of business. The objective of the business
model for these financial assets is to collect the amounts due from the Company''s receivables and to earn
contractual interest income on the amounts collected.

Investment in Equity instruments

Equity investments in subsidiaries and joint venture companies are accounted at cost less impairment, if any.

The Company reviews the carrying value of investments at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the recoverable amount of the investment is estimated.
If the recoverable amount is less than the carrying amount, the impairment loss is recognized in the statement of
profit and loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is
primarily de-recognized (i.e. removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement;
and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

The difference between the carrying amount and the amount of consideration received/receivable is recognized
in the statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109-''Financial instruments'', the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

(a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities,
deposits and bank balance.

(b) Lease receivables under Ind AS 116.

(c) Trade receivables, unbilled revenue and contract assets under Ind AS 115.

For trade receivables and contract assets/unbilled revenue, the Company applies the simplified approach required
by Ind AS 109 Financial Instruments, which requires lifetime expected losses to be recognized from initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure (other than purchased or originated
credit impaired financial assets), the Company determines that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent
period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

For purchased or originated credit impaired financial assets, a loss allowance is recognized for the cumulative
changes in lifetime expected credited losses since initial recognition.

20.2. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and
financial liabilities at amortized cost, as appropriate. All financial liabilities are recognized initially at fair value

and, in the case of liabilities subsequently measured at amortized cost net of directly attributable transaction
cost. The Company''s financial liabilities include trade and other payables, borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at amortized cost

After initial measurement, such financial liabilities are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in statement of profit and loss when the liabilities are derecognized as
well as through the EIR amortization process Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in
finance costs in the statement of profit and loss. This category generally applies to borrowings, trade payables
and other contractual liabilities.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified
as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by the Company that are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/losses attributable to changes in own credit risk is recognized in OCI. These gains/losses are not
subsequently transferred to profit and loss. However, the Company may transfer the cumulative gain or loss
within equity on disposal. All other changes in fair value of such liability are recognized in the statement of profit
and loss. The Company has not designated any financial liability as at fair value through profit and loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit and loss.

20.3. Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet if there is
a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

21. Non -Current Assets Held for Sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be
recovered principally through a sale rather than through continuing use and a sale is considered highly probable.

Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification as held for sale, and actions required to complete the plan of
sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be
withdrawn.

Non-Current Assets held for sale and disposal groups are measured at the lower of their carrying amount and the
fair value less cost of disposal.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or
amortized.

In circumstances, where an item of property, plant and equipment and intangible asset is permanently abandoned
and retired from active use, however criteria of ''non-current assets held for sale'' as above are not met, such items
are not classified as held for sale and continued to be depreciated over their revised useful lives, as assessed. Such
assets are evaluated for impairment in accordance with material accounting policy no. C.14.

D. Use of estimates and management judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that
may impact the application of accounting policies and the reported value of assets, liabilities, revenue, expenses and
related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date.
The estimates and management''s judgments are based on previous experience & other factors considered reasonable
and prudent in the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimates are revised and in any future periods affected.

In order to enhance understanding of the financial statements, information about significant areas of estimation,
uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
recognized in the financial statements is as under:

1. Formulation of accounting policies

The accounting policies are formulated in a manner that results in financial statements containing relevant and
reliable information about the transactions, other events and conditions to which they apply. Those policies need
not be applied when the effect of applying them is immaterial.

2. Useful life of property, plant and equipment and intangible assets

The estimated useful life of property, plant and equipment and intangible assets is based on a number of factors
including the effects of obsolescence, demand, competition and other economic factors (such as the stability of
the industry and known technological advances) and the level of maintenance expenditures required to obtain
the expected future cash flows from the asset.

3. Recoverable amount of property, plant and equipment and intangible assets

The recoverable amount of property, plant and equipment and intangible assets is based on estimates and
assumptions regarding in particular the expected market outlook and future cash flows associated with the power
plants. Any changes in these assumptions may have a material impact on the measurement of the recoverable
amount and could result in impairment.

4. Revenues

The Company records a part of revenue from sale of energy based on tariff rates approved by the CERC as modified
by the orders of Appellate Tribunal for Electricity, as per principles enunciated under Ind AS 115. However, in
cases where tariff rates are yet to be approved, provisional rates are adopted considering the applicable CERC
Tariff Regulations.

5. Leases not in legal form of lease

Significant judgment is required to apply lease accounting rules as per Ind AS 116 in determining whether an
arrangement contains a lease. In assessing arrangements entered into by the Company, management has exercised
judgment to evaluate the right to use the underlying asset, substance of the transactions including legally
enforceable agreements and other significant terms and conditions of the arrangements to conclude whether the
arrangement meets the criteria as per Ind AS 116.

6. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind
AS 37,- ''Provisions, contingent liabilities and contingent assets''. The evaluation of the likelihood of the contingent
events require best judgment by management regarding the probability of exposure to potential loss. Should
circumstances change following unforeseeable developments, this likelihood could alter.

7. Impairment test of investments in Subsidiaries and Joint Venture Companies

The recoverable amount of investment in subsidiaries and joint venture companies is based on estimates and
assumptions regarding in particular the future cash flows associated with the operations of the investee Company.
Any changes in these assumptions may have a material impact on the measurement of the recoverable amount
and could result in impairment.

8. Income taxes

Significant estimates are involved in determining the provision for current and deferred tax, including amount
expected to be paid/recovered for uncertain tax positions.

c) Approval for assignment/novation of ROU land pertaining to Rojmal project and Jetsar project is yet to be consented
by the lessor. Agreements have been entered to provide right to use ROU land pertaining to Rojmal project and
Jetsar project by NTPC Ltd. to the company (sub-lease) for a period of 11 months for carrying out necessary activities,
as required to be carried out under BTA pending transfer of leasehold rights etc. These lands are included as part of
purchase consideration in BTA.

d) As per terms and consitions of Business Transfer Agreement (BTA) between NTPC Ltd and the company, the balance
purchase consideration of 3407.38 crore has been settled during the year by payment/adjustments with NTPC Ltd.

32 Disclosure as per Ind AS 1 ''Presentation of financial statements''

a) Material Accounting Policies :

(i) Changes in Material accounting policies:

During the year, the accounting of scrap has been modified. Now, scrap generated out of any activity, whether steel
scrap or otherwise, shall not be valued. On actual disposal of scrap through sale, the proceeds shall be recognized in
Income from Sale of Scrap/Surplus, Gain on sale of scrap generated out of PPE to be recognized to Gain on sale of
assets account, as is being done now. Impact on profit due to the above change is not material.

(ii) Reclassifications and comparative figures

The Company has made certain reclassifications to the comparative period''s financial statements to enhance
comparability with the current year''s financial statements. As a result, certain line items have been reclassified in
the balance sheet the details of which are as under:

b) Period of accounting:

The financial statements have been prepared for the period starting from 01.04.2023 and ending on 31.03.2024. As the
company was incorporated on 07.04.2022, the financial statements for the previous year were prepared for the period
starting from 07.04.2022 and ending on 31.03.2023. Therefore, the previous year profit & loss figures are not comparable
with current year figures.

c) Currency and Amount of presentation :

Amount in the financial statements are presented in Crore (rounded off upto two decimals) except for per share data
and as other-wise stated.

33 Disclosure as per Ind AS 2 ''Inventories''

a) Amount of inventories consumed and recognized as expense during the year is as under:

There are no contingent liabilities as at 31 March 2024 under Ind AS 37. Disclosure with respect to contingent assets are
made in Note 49.

41. Disclosure as per Ind AS 38 ''Intangible Assets''

There is no Research expenditure recognised as expense in the Statement of Profit and Loss during the year.

42. Disclosure as per Ind AS 108 ''Operating Segments''

The Board of Directors is collectively the company''s ''Chief Operating Decision Maker'' or ''CODM'' within the meaning of
Ind AS 108. The company predominantly operates in one segment i.e. Generation of Electricity. As on date, the company
has no other reportable segment as per the CODM of the company.

43. Financial Risk Management

The Company''s principal financial liabilities comprise loans and borrowings in domestic currency, trade payables and
other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s
principal financial assets include trade and other receivables, cash and short-term deposits that derive directly from its
operations. The Company also holds equity investments.

Risk management framework

The Company''s activities makes it susceptible to various risks. The Company has taken adequate measures to address
such concerns by developing adequate systems and practices. The Company''s overall risk management program focuses
on the unpredictability of markets and seeks to manage the impact of these risks on the Company''s financial performance.

The Board of Directors has overall responsibility for the establishment and overseeing of the Company''s risk management
framework. The Board perform within the overall risk framework of the ultimate parent company.

The Company is exposed to the following risks from its use of financial instruments:- Credit risk- Liquidity risk- Market
risk

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 resulting in a financial loss to the Company. Credit risk arises principally from trade receivables
& unbilled revenue, loans and advances, cash and cash equivalents and deposits with banks and financial institutions.

Trade receivables & unbilled revenue

The Company primarily sells electricity to bulk customers comprising mainly state utilities owned by State Governments.
The Company has a robust payment security mechanism in the form of Letters of Credit (LC).

The Company has not experienced any significant impairment losses in respect of trade receivables during the relevant
period. Since the Company has its power stations as well as customers spread over various states of India, geographically
there is no concentration of credit risk.

Unbilled revenue primarily relates to the Company''s right to consideration for sale effected but not billed at the reporting
date and have substantially the same risk characteristics as the trade receivables for the same type of contracts.

Cash and cash equivalents

The Company held cash and cash equivalents of '' 113.45 Crore (31 March 2023: '' 10.14 Crore). The company has
banking operations with SBI and Axis Bank which are scheduled banks. These banks have high credit rating and risk of
default with these banks is considered to be insignificant.

Balances with banks and financial institutions, other than cash and cash equivalents

The Company held balances with banks , including earmarked balances, of '' 356.52 Crore (31 March 2023: Nil). In order
to manage the risk, Company places deposits with only high rated banks/institutions.

(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was:

(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. Accordingly, no loss allowance for impairment has been recognised.

(b) Financial assets for which loss allowance is measured using life-time expected credit losses as per simplified
approach

The Company has customers (State government utilities) with 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 behaviour and extensive
analysis of customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in
respect of trade receivables and unbilled revenue.

(iii) Ageing analysis of trade receivables
Refer Note 8(b)

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 has an appropriate liquidity risk management framework for the management of short, medium and
long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company''s Treasury department is responsible for managing the short-term and long-term liquidity requirements
of the Company. Short-term liquidity situation is reviewed daily by the Treasury department. Long-term liquidity
position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to
the situation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a
month, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters.

Market risk

Market risk is the risk that changes in market prices and interest rates will affect the Company''s income. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the
Company.

Currency risk

The Company executes agreements for the purpose of purchase of capital goods in INR. Any change in foreign
currency exchange rate is to the account of the contractor. Hence, there would be no impact of strengthening
or weakening of Indian rupee against USD, Euro, JPY, etc. on the company.

The carrying amounts of current trade receivables, current trade payables, payable for capital expenditure, cash and
cash equivalents, bank balances other than cash and cash equivalents and other financial assets and liabilities are
considered to be the same as their fair values, due to their short-term nature.

Also, carrying amount of claims recoverable approximates its fair value as these are recoverable immediately.

The carrying value of non-current lease liabilities has been calculated based on the cash flows discounted using a current
discount rate in the current financial year and is thus considered to be the same as their fair value.

The fair value of borrowings is considered to be the same as their carrying value, as they carry currently prevailing
market interest rates. Further they are calssified as Level 3 borrowings as per the fair value hierarchy as the inputs are
not directly observable in the market.

45. Capital Management

The Company''s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders and

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital
through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and
international financial markets so as to maintain investors, creditors & markets'' confidence and to sustain future
development of the business.

Under the terms of major borrowing facilities, the Company is required to comply with the following financial covenants:

(i) Total liability to networth will not at any time exceed 3:1

(ii) Ratio of EBITDA to interest expense shall not at any time be less than 1.75 : 1

There have been no breaches in the financial covenants of any interest bearing borrowings.

The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial
ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital
requirements.

46. Disclosure as per Ind AS 115, ''Revenue from contracts with customers''

Nature of goods and services
(a) Revenue from Energy sales

The major revenue of the Company comes from energy sales. The Company sells electricity to bulk customers,
mainly electricity utilities owned by State Governments operating in States as well as Central PSUs. Sale of electricity
is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries.

Below are the details of nature, timing of satisfaction of performance obligations and significant payment terms
under contracts for energy sales:

xv) There were no scheme of Arrangements approved by the competent authority during the year in terms of sections 230
to 237 of the Companies Act,2013.

xvi) The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding
that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party with the understanding that the Company shall whether, directly or
indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xvii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xviii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

52. Corporate Social Responsibility Expenses (CSR)

As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, GOI, the
Company is required to spend, in every financial year, at least two per cent of the average net profits of the Company
made during the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses
for the year are as under:

For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- Sd/-

(Manish Kumar) (Neeraj Sharma) (Rajiv Gupta) (Jaikumar Srinivasan) (K Shanmugha Sundramam)
CS CFO CEO Director Chairman

(DIN 01220828) (DIN 10347322)

These are the notes referred to in our report of even date

For P. R. Mehra & Co.

Chartered Accountants Firm
Reg. No.000051N

(CA. Ashok Malhotra) Partner
Membership No. 082648
UDIN:24082648BKGEIB9081

Date: 17/05/2024
Place: New Delhi