a) In respect of land acquired by the Company during the periods 1956 to 1977 and 1997 to 2001, ownership is subject to certain restrictions imposed through the assignment deeds and through the Tamil Nadu Acquisition of Land for Industrial Purpose Act, 1997 respectively.

b) PPE Includes assets belonging to Ministry of Coal obtained under Coal Science &Technology Projects. This also includes residual value of assets considered as addition to the assets under Life extension programme.

c) Free hold Land includes acquisition of land relating to Barsingsar extension and Bithnok Power and its related Mining projects amounting to ^ 194.75 Crore.

d) All units of Thermal Power Station -I has been retired from operation subsequent to 30^th September, 2020. The net block of TPS-I assets as on 31^st March, 2023 are included in the above Schedule. Estimated net sale proceeds of the retired assets is expected to be above the residual value of assets appearing in the books.

e) Spares meeting the criteria of PPE and having a value of more than ^ 5 Lakh have been considered for capitalisation .

f) Depreciation on Specialised Mining Equipment( SME) has been considered based on technical estimate of specific assets.

g) Depreciation on Renewable Assets has been calculated considering 5% residual value in line with guidelines of MNRE/SERC.

h) There is no impairment loss identified for the tangible fixed assets during the year.

i) The Company has identified land with limited life and classified the same under the head mining land.

j) In terms of Notification issued by CERC on 13^th September, 2021 and as per the accounting policy of the Company, 1^st April, 2022 has been reckoned as date of commencement of commercial operation in respect of MINE IA Expansion. Accordingly, the capitalization of the amount carried under CWIP as on 31st March,2022 has been reckoned as 1st April, 2022.

k) Based on physical verification of assets FY 2020-21 (including conveyor belts and pipes) the net block of ^ 13.47 Crore which are not available for use are included in the above schedule pending write off from Asset register.

l) Based on physical verification of assets conducted during the year and pertaining to the previous year, the net book value of assets which are not available has been provided and the same are included as part of asset register.

m) Refer Note no. 16(a) for the property, plant and equipment pledged as security by the Company

As per the guidelines from Ministry of Coal, Government of India for preparation of Mine Closure Plan, Escrow Accounts have been opened in the name of "Coal Controller Escrow Account NLC India Limited" for each captive mine and the balances held in these escrow accounts are presented as 'Mine closure deposit'. Up to 50% of the total deposited amount including interest accrued in the escrow account shall be released after every five years in line with the periodic examination of the closure plan as per the Guidelines. Interest earned on the escrow account is added to mine closure deposit account. All the deposits are renewed every year. Deposits made during the year FY 2022-23 amounting to ^ 52.60 Crore.

a) Capital Advances includes ^ 121.62 Crore paid against bank guarantee to an EPC contractor with respect to Barsingsar extension & Bithnok Project. On invocation of the BG, the EPC contractor initially opted for judicial intervention. However subsequently the contractor agreed for arbitration, keeping the BG valid till arbitral award.

b) Advances other than capital advances include amount paid to vendors on receipt of LD Bank guarantee, which will be adjusted along with retention money upon finalisation of contract.

a) Inventory valuation - Inventories are valued at the lower of cost or net realisable value. Cost for this purpose is as follows:

(i) Extracted Lignite & Coal - At absorption cost excluding allocated common charges and social overhead.

(ii) Stores & Spares - At weighted average acquisition cost.

(iii) Fly ash bricks - At absorption cost.

(iv) Goods in transit including goods received but pending inspection / acceptance - At cost of acquisition

(v) Waste products, used belts reconditioned, Stores & Spares discarded for disposal, medicines and canteen stores are taken at NIL value.

b) Refer Note No. 19 (a) for information on inventory pledged as security by the Company.

a) Based on arrangements among NLCIL, Banks and DISCOMs' certain bills which are due from DISCOMs' have been discounted during FY 2022-23 . Accordingly, trade receivables as on 31^st March, 2023 have been disclosed net of outstanding bills discounted amounting to R 3,316.81 Crore (31* March, 2022 R 4,027.58 Crore) and NLCIL is bound to repay the same to the banks in the event of default by beneficiaries.

b) Trade receivables for FY 2022-23 includes R 126.62 Crore (previous year R 46.21 Crore) and R 22.46 Crore (previous year R 15.71 Crore) receivable from NTPL and NUPPL respectively.

c) The Company has reviewed its outstanding debtors balance as at 31^st March, 2023. Taking into account, period of outstanding, collections and the trend of realization subsequent to intervention of Ministry of Power and Ministry of Coal and pending completion of the reconciliation of balances and resolving various issues, in respect of which action have been initiated, on estimated basis, a cumulative provision of R 196.55 Crore ( PY R 501.51 Crore) has been considered towards loss allowances on outstanding debtors balance as at 31st March, 2023.

d) Secured Trade Receivables represents value of Letter of Credit (LC) submitted by DISCOM's as per the MoP order dated 28t^h June, 2019 w.e.f. 1st August, 2019 as Payment Security Mechanism under Power Purchase Agreements.

e) The Company has billed various DISCOMs an amount of R 386.51 Crore during the year under report being income tax recoverable as per the CERC tariff Regulations, for different Tariff periods on account of payments made relating to earlier periods arising out of settlement of disputed cases pursuant to 'Vivad Se Vishwas Scheme' (VSVS). While the Company has recovered a sum of R 58.07 Crore from a few DISCOMs during the year, others have disputed the validity of this Claim and opted for Judicial intervention and initiated legal proceedings. The Company is of the considered opinion that:

(i) the claiming of taxes paid under VSVS is in line with the CERC Regulations for all the tariff periods;

(ii) the sum paid under the dispute resolution scheme viz.VSVS has accrued due to settlement of disputed liabilities, which in any case the Company is entitled to claim in the normal course had the same been paid in the respective years; Further, the Company's petition filed before CERC on 11th April, 2023 seeking their direction on this issue is pending for a decision. However, the Company is of the view that the balance amount is recoverable based on a reasonable assessment of various facts.

In order to meet the post retirement medical expenditure of employees retired on or before 1^st January, 2007 , the Company deposits 1.5% of its profit before tax after deducting actual expenditure towards PRMA in a separate deposit for this purpose termed as PRMA deposit. The above amount will be utilised in future years towards the purpose for which it has been created. The interest accrued in this fund is added to the fund. The deposit matured and renewed on 24t^h March, 2023.

i) The secured loans and unsecured loans to Employees include house building loan, Vehicle loan, multipurpose loan, etc. and are measured at amortised cost and the said deferred interest expenditure representing the benefits accruing to employees is amortised on straight line basis over the remaining period of the loan.

ii) The loans to employees (Housing, Vehicle) are secured against the mortgage of the house property and hypothecation of Vehicles for which the loan has been given in line with the policy of the Company.

iii) The Company, In order to meet the certain emergency financial needs of its two subsidiaries has entered into a interest bearing short term financial arrangements of ^ 1000 Crore with each of its subsidiaries. Out of this arrangement one subsidiary namely Neyveli Uttar Pradesh Power Limited has availed ^ 100 Crore at various dates during the financial year and the repayment of the same is also completed during the year. The details has been provided in table below.

iv) The Company has a policy of extending loans and advances to its employees including Directors, KMPs and the related parties. All these loans are paid in accordance with the Policy adopted by the Company and Repayments and interests are charged accordingly. No loans paid to Directors, KMPs and Related parties are repayable on demand or without specifying the terms of repayment. Hence separate disclosure as mentioned in revised schedule -III of Companies Act 2013 is not applicable .

a) Interest Accrued includes interest due on loans givens to employees, interest on advances given to suppliers and interest on various deposits towards PRMA and Mine closure etc.

b) Unbilled Revenue includes R 696.01 Crore (PY - R 704.13 Crore) of billing done after 31^st March, for Sale of Power related to March 2023. In addition to that on receipt of provisional order from CERC with respect to lignite transfer price for the period 2019-24 , the differential impact has been recognised as unbilled revenue.

c) Further insurance claim in respect of TPS-II fire incident has been lodged with the Insurance Company for recovery of damage including loss of profit. Based on confirmation from insurance Company R 50 Crore was recognized in the current financial year.

NLCIL has opted to avail the Vivad Se Viswas Scheme (VSVS) for settlement of income tax disputes and Form-5 has been issued by Income Tax department on acceptance of the forms filed by NLCIL. The tax liability on this account is R 730.91 Crore which has been considered as Tax expenses in the FY 2021-22. Further consequent to issuance of Form 3 by the department and filing of Form-4 by NLCIL for all years for which it has opted for VSVS, reduction in Tax expenses amounting to R 129.80 Crore arising out of orders of AY 2014-15 and AY 2015-16 have also been accounted in the previous financial year.

(a) The regulatory deferral account balances has been accounted in line with the Company's accounting policy. Refer Note no: 44 for detailed disclosures.

(b) Based on petition filed with CERC for NNTPP (2 X 500 MW), the differential amount (as against provisional tariff order) of ^ 360.27 Crore (PY ^ 114.36 Crore ) considered under regulatory deferral account debit balance.

(c) The Company undertakes concurrent Mine Closure activity. In line with the Mine Closure Guidelines issued in May, 2020 by Ministry of Coal, Gol, actual expenses incurred on mine closure up to a maximum of 50% of the Mine Closure Deposit along with interest in Escrow Account can be withdrawn on verification in every five years. Accordingly, for the 5 year period from 2016-17 to 2020-21, an amount of ^ 171.15 Crore has been considered on provisional basis under regulatory income, pending filing of the claim with "Coal Controller" Pending approval the said amount is being carried forward. An amount of ^ 23.33 Crore(PY : ^ 22.22 Crore) has been considered as regulatory income based on the existing mine plan, Pending execution of Escrow agreement as per the revised mining plan with Coal controller during the current Financial year

d) During the year, the Company has received the provisional tariff order for the period 2019-24 of its thermal power stations( except NNTPS and BTPS) and truing up orders for the period 2014-19 of its thermal power stations (except BTPS).Consequent to allowance of water charges, security expenses and consumption of capital spares as part of O&M, regulatory assets created has been reversed in the current year.

e) During the year the CERC has issued order for the period 2014-19 allowing enhanced wage revision of executives, nonexecutives, CISF, gratuity limit enabling the Company to raise the invoice to the beneficiaries. Accordingly, the total claim of ^ 783.64 Crore which was earlier recognized under regulatory asset has been withdrawn and an amount of ^ 670.87 Crore has been billed to beneficiaries

Details of Terms of Repayment, Rate of Interest and Security :

a. To meet the fund requirement of Neyveli New Thermal Power Project (NNTPP 2x500 MW) borrowing arrangement has been done with:

i) Loan of ^ 3000 Crore was availed from M/s. Power Finance Corporation Ltd. and outstanding amount as at 31.03.2023 is ^ 1950 Crore. The Loan is secured by pari passu charge on project lands & fixed assets of NNTPP , repayable in 20 equal bi-annual instalments commencing from 31^st March, 2020. The interest rate as on 31^st March, 2023 is @ 8.51% p.a. (on the basis of 3 year AAA Reuter rate i.e., 7.66% p.a. plus fixed spread 0.85%)

ii) NLCIL Bonds 2021 Series-I was issued on 12t^h February, 2021 for an amount of R 1175 Crore @ 6.05% p.a. The Bond is unsecured and will be repayable by bullet payment on 12th February, 2026.

iii) NLCIL Bonds 2021 Series-II was issued on 20th December, 2021 for an amount of R 500 Crore @ 6.85% p.a., Out of which ^ 295.60 Crore was utilised towards NNTPP and balance ^ 204.40 Crore was utilised towards General Business Purpose. This Bond is unsecured and will be repayable by bullet payment on 13.04.2032.

b. To meet the fund requirement of Neyveli Solar Power Project (130 MW), borrowing arrangement has been done with HDFC Bank for an amount of ^ 481 Crore. Repayment for the same started from October 2018, amount drawn is ^ 481 Crore and the loan was fully repaid by March, 2023. Interest rate on closure of loan is 8.028% p.a. (on the basis of 5 year G-Sec Rate i.e., 7.398% plus 0.63% fixed spread).

c. To meet the fund requirement of Tamilnadu Solar Power Project 500 MW, borrowing arrangement has been done with the following banks:

i. Axis Bank sanctioned a loan of ^ 500 Crore and drawn ^ 500 Crore. The outstanding amount as on 31st March, 2023 is R 99.97 Crore. The interest rate as on 31st March, 2023 is 8.61% p.a. (on the basis of 5 Year G-Sec rate i.e., 7.39% plus 1.22% fixed spread). Repayment for the loan started from September'2019 in 10 equal half-yearly instalments. This loan is secured by pari-passu charge on the project assets to the extent of the facility.

ii. Axis Bank sanctioned a loan of ^ 450 Crore and drawn ^ 450 Crore. The outstanding balance as on 31st March, 2023 is R 134.97 Crore. The interest rate as on 31st March, 2023 is 8.59% p.a. (On the basis of 5 Year G-Sec Rate i.e., 7.39% plus 1.20% fixed spread). Repayment for the loan started from March' 2020 in 10 equal half-yearly instalments. This loan is secured by pari-passu charge on the project assets to the extent of the facility.

iii. Federal bank sanctioned a loan of ^ 456 Crore and drawn ^ 456 Crore. The outstanding as on 31st March, 2023 is R 136.77 Crore. The interest rate as on 31st March, 2023 is 8.78% p.a. (on the basis of 5 Year G-Sec rate i.e., 7.58% plus 1.20% fixed spread). Repayment for the loan started from March' 2020 in 10 equal half-yearly instalments. This loan is secured by pari-passu charge on the project assets to the extent of the facility.

d. To meet the fund requirement of Tamilnadu Solar Power Project 709 MW, borrowing arrangement has been done with SBI for an amount of ^ 2552 Crore. Out of the facility, ^ 2319 Crore was drawn & outstanding amount as on 31st March, 2023 is R 1680.44 Crore. The Interest rate as on 31st March, 2023 is 8.40% p.a. (on the basis of 6 Month MCLR rate @ 8.40%). This loan is repayable in 20 equal half- yearly instalments of ^ 127.60 Crore each, first repayment started on 31st December, 2020. This loan is secured by pari-passu charge on the project assets to the extent of the facility.

e. To meet the fund requirement of Talabira Coal Mine II & III, borrowing arrangement has been done with SBI for an amount of R 1680.75 Crore. Out of the facility, R 593 Crore was drawn & outstanding as on 31st March,2023 is R 256.73 Crore. The interest rate as on 31st March, 2023 is 8.40% p.a. (on the basis of 6 Months SBI MCLR) repayable in 20 equal half- yearly instalments of ^ 84.04 Crore starting from 30th September, 2021. The loan is secured by pari-passu charge on the project assets to the extent of the facility.

f. To meet the General Funding arrangement, NLCIL BONDS 2019 SERIES I was Issued on 29th May, 2019 for R 1475 Crore and NLCIL BONDS 2020 SERIES I was issued on 27th January, 2020 for an amount of R 525 Crore and which carries interest rate @ 8.09% p.a. & 7.36% p.a. respectively. These Bonds were initially secured by pari-passu 1st charge on the project assets of TPS II Expansion 500 MW (250 MW X 2) (including Land) to the extent of the facility and subsequently to have sufficient asset cover another security has been created by pari-passu 1st charge on the project assets of 1000 MW (2 X 500 MW) NNTPP, Neyveli project to the extent of ^ 450 Crore with the consent of lender of NNTPP i.e., PFC. These Bonds are repayable on 29th May, 2029 & 25th January, 2030 respectively. Out of ^ 1475 Crore, ^ 749.22 Crore and ^ 234.98 Crore has been used towards unlocking of Equity of TPS II Expansion Project (2 X 250 MW) & Wind 51 MW respectively and balance were used for operational requirement.

g. To meet the General Funding arrangement, an unsecured Bonds i.e., NLCIL Bond 2020 Series-II was issued on 31^st July, 2020 for ^ 500 Crore carrying an interest rate of 5.34% p.a. which is repayable through bullet payment on 11t^h April, 2025

h. Bi- annual equal repayment (€ 0.219 Million each) of Foreign Currency loan - I from KfW Germany, commenced from 30th December, 2001, ending on 30th June, 2036. This loan is unsecured and guaranteed by GOI @ guarantee fee of 1.20%. The outstanding loan, Euro 5.93 million carries interest rate @ 0.75% p.a.

i. Bi-annual equal repayment (€ 1.401 Million each) of Foreign Currency loan -II from KfW Germany, commenced from 30th June, 2002, ending on 30th June, 2037. This loan is unsecured but guaranteed by GOI @ guarantee fee of 1.20%. The outstanding soft loan, Euro 40.64 million carries interest rate @ 0.75% p.a.

j. The Company has maintained required asset cover as per the terms of offer document/information memorandum and/or Debenture trust deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.

a. Deferred income includes capital grant of ^ 75.97 Crore and ^ 39.38 Crore ( Unamortised value of Grant) received from Ministry of New and Renewable Energy ( MNRE) in respect of installation of 130 MW solar at various locations in Neyveli and 20 MW of Solar Plant at various location of Andaman and Nicobar in their respective year of commissioning. In proportion to the depreciation of the respective solar asset , the grant is amortised to profit and loss account each year.

b. In respect of Mine Closure Pursuant to GOI guidelines on Mine closure, total Mine closure cost was approved by Ministry of Coal at a rate of ^ 6 lakh per hectare for all the open cast Mines. The annual contribution, compounded @ 5% p.a. is deposited in an Escrow account in the name of Coal Controller Escrow account NLC Ltd. Mine., as stipulated by the Coal Controller.

a) Amounts under regulatory deferral liabilities as at 31^st March, 2023 relates to the impact arises out of various regulatory orders for the previous tariff periods.

b) The Company has filed appeals before the Appellate Authority of Electricity (APTEL) against the following CERC orders / filed review petition before CERC which are pending for disposal:

1) Thermal Power Station II (Neyveli) - Rejection of substitution of actual secondary fuel consumption (SFC) in place of normative SFC in computing energy charge rate, disallowance of de-capitalization of LEP Assets and reduction of claim towards capital expenses while truing up for the tariff period 2009-14

2) Lignite Truing up - Disallowance of O &M escalation at 11.50% p.a. as per MOC Guidelines considering FY 2008-09 as the base year

3) Sharing of profits and incentives on additional generation in TS -II on adoption of pooled lignite price considering the cost of Mines - II Expansion. The impact on the above mentioned orders have been considered appropriately under Regulatory Deferral Account Balances / Net Movement in Regulatory Deferral Balances in accordance with Ind AS 114, in the respective previous financial period's.

4) The Company has filed review petition before CERC on the true up order for determination of Lignite Transfer Price for the Tariff Period 2014-19. During the year CERC has admitted the review petition for disallowance of additional capitalization w.r.t. new assets and disallowances of stores for the purpose of interest on working capital and has set aside to review of O&M Expenses as the similar issue for the period 2009-14 is sub-judice before APTEL and O&M Expense for the period 2014-19 is subject to the final decision of the APTEL case. In view of the order, the Company has considered in Regulatory Expenses of ^ 783.79 Crore (including interest) in addition to the existing amount already provided in different periods under Regulatory Deferral Account Balances towards O&M Expenses for the period 2014-19.

All the regulatory deferral liability is being reviewed on periodic basis. Based on subsequent information/ details/orders the same shall be reviewed and considered accordingly.

c) CERC has issued trued up order in respect of TPS-II expansion for the tariff period 2014-19 on 09^th June, 2022. The Company has filed a review petition on 20th July, 2022 and pending disposal of the review petition, the Company has accounted an amount of ^ 48.03 Crore arising out of the difference between billed rate and trued up order rate under regulatory deferral liabilities.

d) The Company has filed Tariff Petition for tariff period 2019-24 for all its Neyveli mines on 26th July, 2022 and for Barsingsar mines on 26th December, 2022. Refer Note no 23 (d) for neyveli mines. Pending disposal of the said Petition, the Company has billed energy charges based on provisionally approved Lignite transfer rate by CERC for NNTPS tariff petition for tariff period 2019-24 for Neyveli mines and provisionally approved rate by CERC for the tariff period 2014-19 for Barsingsar mines. Pending receipt of tariff order with respect to Barsingsar Mines for Tariff period 2019-24, an amount of ^ 40.90 Crore (including interest) representing the difference between billed rate and petition rate has been accounted under regulatory account balances.

e) AS per CERC regulations (second amendment) 2019-24, it is required to share the Non tariff income arising from sale of coal (Talabira Mines) to the beneficiary. Accordingly amount of ^ 143.54 Crore has been recognised as regulatory liabilities.

a) Power Sale includes Sale of Power through Trading for FY 22-23 R 94.64 Crore. (FY 21-22 R 340.45 Crore).

b) Sale of Lignite to related party during the current year is NIL ( PY ^ 5.70 Crore).

c) Pending disposal of tariff petition for BTPS and approval of CERC tariff for NNTPS for the tariff period 2019-24 , beneficiaries are being billed in accordance with the tariff order for the period 2014-19/interim order issued by CERC for control period 2019-24 respectively. However, recovery on account of O&M component for tariff period 2019-24 has been recognized based on CERC tariff regulations and differential revenue between tariff periods 2019-24 and 2014-19 is recognized under Regulatory Deferral Account. The accrual for the remaining 4 components of the capacity charges though charged off in the Statement of Profit and Loss periodically, the consequential adjustment for the same in the revenue will be carried out on obtaining the tariff order.

d) The Company has filed Tariff Petition for tariff period 2019-24 for all its Neyveli mines on 26^th July, 2022 and for Barsingsar mines on 26th December, 2022. Pending disposal of the said Petition, the Company has filed interlocutory application seeking approval of provisional Lignite transfer price for the neyveli mines. Subsequently CERC has issued provisional lignite transfer price order for the control period 2019-24 and the differential impact on such order (Amount in R 1,389.87 Crore) is recognised under power sales.

e) The Company has commissioned Talabira Coal mines on 01^st April, 2021. The Company has filed Tariff petition for the tariff period 2019-24 (effective period 2021-24) before CERC on 25th July, 2022. Pending disposal of the said petition, the Company has adopted petition rate for billing for the linked thermal plant.

f) Coal sales includes sales to NTPL (subsidiary of NLCIL) - amounting to R 257.53 Crore (FY 21-22 R 101.74 Crore).

g) During the year, the CERC has issued order for the period 2014-19 allowing enhanced wage revision of executives, nonexecutives, CISF, gratuity limit enabling the Company to raise the invoice to the beneficiaries. Accordingly, the total claim of R 783.64 Crore which was earlier recognized under regulatory asset has been withdrawn and an amount of R 670.87 Crore has been billed to beneficiaries.

h) Power sales include R 212.84 Crore on account of CERC truing up order and wage revision order for the tariff period 2014-19 with respect to TPS-I for FY 22-23 which was retired from operation as on 30th September, 2020. A Note containing details has been provided in Note no-53

a. Consequent to CERC truing up orders received for the tariff period 2014-19 and tariff orders for the period 2019-24 TPS I, TPSI Expn , TPS II and Neyveli Mines, interest income due on the order impact amounting to R 339.57 Crore (Including R171.09 Crore for Neyveli Mines for tariff period 2019-24) has been recognised under Interest others.

b. Provision written back includes R 304.96 Crore being reversal of expected credit loss provision recognised towards trade receivable and R 122.12 Crore towards provision created earlier in respect of Bithnok and BTPS expansion project capital advance.

c. Deferred income on Govt. grant includes grant received from Ministry of New and Renewable Energy (MNRE) on various Solar Projects executed by the Company.

d. Under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, one DISCOM opted for interest free installment scheme within cutoff date i.e., 3^rd July, 2022. Accordingly such dues were recognised at fair value as per the requirements of IND AS 109 and the consequent unwinding interest income has been recognised in the current year.

e. The other income include R 31.09 Crore (PY R 3.33 Crore) of TPS-I which was retired from operation as on 30th September, 2020. A Note containing details has been provided in Note no-53.

f. Miscellaneous Income includes

i) Scrap sales amounting to R 36.25 Crore( PY : R 44.66 Crore)

ii) Insurance claim in respect of TPS-II fire incident has been lodged with the Insurance Company for recovery of damage including loss of profit. Based on confirmation from insurance Company R50 Crore was recognized in the current financial year.

a) Other Expenses includes R 17.23 Crore( PY R 22.42 Crore) of TPS-I for FY 22-23,which was retired from operation as on 30^th September, 2020. Refer Note No. 53

b) The Company has filed a petition against the ABT implementation order passed for claim of surcharge on the order amount. However CERC has not admitted the petition and consequently the Company has written off debts amounting to R 93.72 Crore.

c) Consequent to the interim order issued by CERC for the control period 2019-24, water charges, security expenses and power surrender sales and surcharge on these items already recognized earlier were written off in the current year amounting to R 1,087.57 Crore.

d) Upon physical verification of fixed assets conducted during the year , provision has been recognised under provision for fixed assets.

a) Pending disposal of tariff petition for BTPS and approval of CERC tariff for NNTPS for the tariff period 2019-24 , beneficiaries are being billed in accordance with the tariff order for the period 2014-19/interim order issued by CERC for control period 2019-24 respectively. However, recovery on account of O&M component for tariff period 2019-24 has been recognized based on CERC tariff regulations and differential revenue/expense between tariff periods 2019-24 and 2014-19 is recognized under Regulatory Deferral Account. The accrual for the remaining 4 components of the capacity charges though charged off in the Statement of Profit and Loss periodically, the consequential adjustment for the same in the revenue will be carried out on obtaining the tariff order.

b) The Company undertakes concurrent Mine Closure activity. Based on expenses incurred on actual mine closure for the 5 years' period from 2016-17 to 2020-21 the Company has submitted a claim for R 171.15 Crore to Coal Controller based on the certification by third party. An amount of R 171.15 Crore (Including R 5.37 Crore recognized in current year) has been recognized under Regulatory Deferral asset. The same is pending for approval as of date.

On similar basis mine closure expenses amounting to R 23.33 Crore (PY : R 22.22 Crore) for the financial year 2022-23 are considered under Regulatory Income. The regulatory income has been recognized based on the existing mine plan, Pending execution of Escrow agreement as per the revised mining plan with Coal controller.

c) As per CERC regulations (second amendment) 2019-24, it is required to share the Non tariff income arising from sale of coal to the beneficiary. Accordingly amount of R 143.54 Crore has been recognised as regulatory liabilities.

d) During the year the CERC has issued order for the period 2014-19 allowing enhanced wage revision of executives, non-executives, CISF, gratuity limit enabling the Company to raise the invoice to the beneficiaries. Accordingly, the total claim of R 783.64 Crore which was earlier recognized under regulatory asset has been withdrawn and an amount of R 670.87 Crore has been billed to beneficiaries

e) During the year , the Company has received the provisional tariff order for the period 2019-24 of its thermal power stations( except NNTPS and BTPS) and truing up orders for the period 2014-19 of its thermal power stations (except BTPS).Consequent to allowance of water charges, security expenses and consumption of capital spares as part of O&M, regulatory assets created has been reversed in the current year.

f) The Company undertakes review of regulatory assets and liabilities at the end of each year and based on reassessment of recoverability/refund of such assets/liabilities necessary accounting adjustments are carried out and in addition to that period cost on regulatory liability has also been considered subject to approval of Regulatory Authority.

a) Power sales - VSVS in FY 2022-23 pertains to the reversal of unbilled sales upon billing the actual.

b) NLCIL has opted to avail the Vivad Se Viswas Scheme (VSVS) for settlement of income tax disputes and Form-5 has been issued by Income Tax department on acceptance of the forms filed by NLCIL. The tax liability on this account is ^ 730.91 Crore which has been considered as Tax expenses in the FY 2021-22. Further consequent to issuance of Form 3 by the department and filing of Form-4 by NLCIL for all years for which it has opted for VSVS, reduction in Tax expenses amounting to ^ 129.80 Crore arising out of orders of AY 2014-15 and AY 2015-16 have also been accounted in the previous financial year.

Note 39- Employment Benefits

(i) Defined benefit plans:

The defined benefit plan is administered by the LIC which is named as LIC Group Gratuity Fund ('Fund') that is legally separated from the Group. The board of the fund is required by law to act in the best interest of the plan participants and is responsible for setting certain policies ( e.g. investment, contribution and indexation policies) of the fund. Their defined benefit plans expose the group to actuarial risks, such as longevity risk, currency risk, interest rate risk and market ( investment) risk.

A. Funding

Defined benefit plan is fully funded by the group. The funding requirements are based on the fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purpose.

The Company has determined that in accordance with the terms and conditions of the defined benefit plan and in accordance with statutory requirements, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan asset less the total present value of obligations.

B. Movement in net defined benefit ( Asset ) Liabilities

Gratuity & Leave Benefit

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 * last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of ^ 0.20 Crore on superannuation, resignation, termination, disablement or on death considering the provisions of the Payment of Gratuity Act, 1972, as amended. The gratuity scheme is funded by the Company and is managed by separate trust. The liability for gratuity scheme is recognised on the basis of actuarial valuation.

The Company provides earned leave benefit and half pay leave to the employees of the Company, which accrue annually at 30 days and 20 days respectively. Earned leave is encashable while in service. Half pay leaves ( HPL) are encashable only on separation. However total number of leave that can be encashed on superannuation shall be restricted to 300 days and no commutation of half pay leave shall be permissible. The liability for the same is recognized on the basis of actuarial valuation.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Provident Fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI. Accordingly, the Company has obtained report of the actuary, based on which overall interest earnings and cumulative surplus is more than the statutory interest payment requirement for all the periods presented. Further, contribution to employee pension scheme is paid to the appropriate authorities.

Pursuant to Para 57 of Ind AS 19, accounting by an entity for defined benefit plans, inter-alia, involves determining the amount of the net defined benefit liability (asset) which shall be Adjustment for any effect of limiting a net defined benefit asset to the asset ceiling prescribed in Para 64. As per Para 64 of Ind AS 19, in case of surplus in a defined benefit plan, an entity shall measure the net defined benefit asset at the lower of actual surplus or the value of the assets ceiling determined using the discount rate. The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. Further, Para 65 provides that a net defined benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen.

As per the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Company has no right to the benefits either in the form of refund from the plan or lower future contribution to the plan towards the net surplus of ^9.01 Crore (Previous year ^ 10.03 Crore) determined through actuarial valuation. Accordingly, Company has not recognised the surplus as an asset and the actuarial gains in Other Comprehensive Income, as these pertain to the Provident Fund Trust and not to the Company.

C. Defined Contribution Plan:

Post Retirement Medical Assistance (PRMA)

The Company has a Post Retirement Medical Assistance scheme, under which annual cash assistance is provided to retired employees and their spouses for both inpatient and outpatient medical treatment availed in subject to Company's grade wise policy applicable for employees.

A trust has been constituted and is managed by the Company for its employees, for the sole purpose of providing post retirement medical assistance facility to them. For the employees retired on or before 31^st December, 2006 , the Company has extended the post retirement medical assistance in form of cash reimbursements and mediclaim insurance. A separate fund is maintained by the Company and necessary contributions are made every year for this purpose.

Note 42- Disclosure as per Ind AS 116 'Leases'

The Company has adopted Ind AS 116 "Leases" with effect from 1^st April 2019 and has applied the standard to all lease contracts that are existing as at 1^st April 2019. The Company has chosen the modified retrospective approach for valuation of its right of use assets and lease liability.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices and aggregate standalone prices of non-lease components. However, for the leases of land and buildings and vehicles in which it is a lessee, the Company has elected not to separate non-lease components and account for lease and non-lease components as a single lease component.

i. As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability Adjustment for any lease payments made at or before the commencement date, 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 it is located, less any lease incentives received. The right-of-use asset 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 end of the lease term. The estimated useful lives of right-of-use assets are 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 Adjustment for certain re-measurements 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, using the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease payments included in the lease liability comprises of fixed payments (including in-substance fixed payments), residual value guarantees and where the Company is reasonably certain to exercise purchase, renewal and termination options includes exercise price under a purchase option, lease payments in an optional renewal period and penalties for early termination of a lease. The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there are any reassessments or lease modifications or revised in-substance fixed payments. 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 profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-to-use assets that do not meet the definition of investment property in 'property, plant and equipment' and lease liabilities in 'loans and borrowings' in the balance sheet.

Short-term leases and leases of low-value assets

The Company has elected not to recognize right-of-use assets and lease liabilities for all short-term leases that have lease term of 12 months or less and leases of low-value assets, when it is new. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis or any other systematic basis over the lease term.

The companies significant leasing arrangements are in respect of various assets are as follows :

a) Land : The Company has lease arrangement with respect to its office and township requirements at various locations ( i.e., HUDCO land at Delhi and office & township land in Talabira project, Odisha) for 99 years. The lease rental are fixed for entire lease term, which has been arrived based on lease agreement. The lease can be extended for similar periods on mutually agreed terms after the completion of the current lease period. The Company does not have option to buy.

b) Vehicles : The Company has taken certain vehicles (including e-vehicles) on lease for a period extending up to 5 years, which can be further extended at mutually agreed terms. All the lease rental of vehicles are fixed in nature except for e-vehicles Lease rental for which are escalated @10% each year.

c) Plant and Machinery : An agreement has been arrived between NLCIL (the Company) and Solar Development Operator (SDO) to use power evacuation facility for a period of 25 years. The lease rental are fixed in nature.

d) Buildings : Premises for use of offices and guest houses on lease are usually renewable on mutually agreeable terms. The lease rental are fixed in nature for one property and escalated by 10% each year for other properties.

When measuring lease liabilities, the Company discounted lease payments using its weighted average borrowing rate of long term loans.

The Company does not face significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

ii. As a lessor

The Company has not entered any agreement as on date of this financial year as a lessor. Thus the disclosure requirements of Ind AS 116 as lessor does not arise for the Company.

The Company's investments do not contain any restrictions on disposal within a stipulated period of time.

Note 44- Disclosure as per Ind AS 114 'Regulatory Deferral Accounts'

i. Nature of rate regulated Activities

The Company is engaged in the business of mining of lignite/coal and generation of power by using lignite as well as renewable energy sources. The price to be charged by the Company for electricity sold to its customers is determined by the Central Electricity Regulatory Commission (CERC)/State Electricity Regulatory Commission (SERC)/bidding process. The CERC provide extensive guidance on the principles and methodologies for determination of the tariff for the purpose of sale of power and transfer of lignite. The CERC has notified its second amendment to its tariff regulation 2019-24, where in transfer price of Coal/Lignite will be determined by CERC effective from 1^st April, 2019. The Company has filed Tariff Petition for tariff period 2019-24 for all its Neyveli mines on 26t^h July, 2022 and for Barsingsar mines on 26t^h December, 2022 in line with regulations. Pending disposal of the said Petition, the Company has filed interlocutory application seeking approval of provisional Lignite transfer price for the neyveli mines. Subsequently CERC has issued interim lignite transfer price order for the control period 2019-24 and the differential impact on such order is recognised under power sales.

The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return. This form of rate regulation is known as cost-of-service regulations which enable the Company to recover its costs of providing the goods or services plus a fair return.

ii. Recognition and Measurement

As per the CERC/SERC Tariff Regulations, any gain or loss on account of exchange risk variation during the construction period shall form part of the capital cost till declaration of Commercial Operation Date (COD) to be considered for calculation of tariff. CERC during the past periods in tariff orders for various stations has allowed exchange differences incurred during the construction period in the capital cost. Accordingly, exchange difference arising during the construction period is within the scope of Ind AS 114. When the Company prefers appeal in APTEL/Other authorities the impact of the adverse items in the order along with period cost if any required is considered under the Regulatory Deferral Account in the Profit or Loss of the respective financial year based on the reliable estimates of the Company on case to case basis.

In view of the above, exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as 'Regulatory deferral account debit/credit balance' by credit/debit to 'Movements in Regulatory deferral account balances' during construction period and Adjustment from the year in which the same becomes recoverable from or payable to the beneficiaries. Accordingly, an amount of ^134.24 Crore for the year ended 31^st March, 2023 has been accounted for as 'Regulatory deferral account debit balance' (31st March, 2022: ^ 117.85 Crore accounted as 'Regulatory deferral account debit balance'.)

As per the CERC tariff regulation the expenses towards water charges , security expense and capital spares shall be allowed to be claimed from the beneficiaries based on prudence check at the time of truing up. The Company has recognised ^ 108.78 Crore as on 31st March, 2023 ( ^ 484.04 Crore as on 31st March, 2022.) under its regulatory assets subject to petition for truing up for tariff period 19-24.

iii. Risks associated with future recovery/reversal of regulatory deferral account balances:

(a) Demand risk -Availability of alternative and cheaper sources of power may result in reduced demand.

(b) Regulatory risk - the regulatory deferral balances may undergo a change due to the rate setting process or truing up at the end of the tariff period resulting in derecognition of regulatory deferral asset/liability.

(c) Other risks - The Foreign Exchange Variation on actual repayment of loans are eligible for recovery from the customers and hence the risk is mitigated. In respect of disputed orders, where the Company has preferred an appeal has recognised Regulatory Deferral Liability which may require economic outflow of resources upon passing of orders by the appellate authorities.

Note 45- Financial Instruments

Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Board of directors maintains an optimal balance between the higher return that further borrowings may generate vis -s vis the security afforded by sound capital position.

Under the terms of major borrowing facilities, the Company is required to comply with the following financial covenants: Loan from PFC - Debt service coverage ratio not less than 1.50 Neyveli Bond - Minimum asset coverage ratio of 1.0

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.

The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of noncurrent borrowings (including current maturities ) and current borrowings as specified in Note no.19 (a) , 16 ( a) less cash and cash equivalents ( excluding earmarked deposits). Equity includes equity share capital and reserves ( excluding earmarked Reserves) that are managed as capital.

Note 46- Financial Risk Management

The treasury function of the Company provides services to the business, co-ordinates access to domestic and international financial markets monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk) credit risk and liquidity risk.

The Company's principal financial liabilities comprise loans and borrowings in domestic and foreign 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 loans, trade and other receivables, short term deposits etc.

A. 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, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade Receivable

The Company primarily sells electricity to customers comprising, mainly state electrical utilities owned by State Governments and Union Territory. The risk of default in case of power supplied to these state owned companies is considered to be insignificant. The Company has not experienced any significant impairment losses in respect of trade receivables in the past years. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit defaults and the Company's historical experience for customers.

Since the Company has its customers within different states of India, geographically there is no concentration of credit risk. However, management considers the factors that may influence the credit risk of its customer base, including the default risk of the industry.

At 31^st March, 2023, the Company's most significant customer, Tamil Nadu Generation & Distribution Co. Ltd (TANGEDCO) accounted for ^ 3,263.54 Crore of the trade receivables carrying amount (^ 2,009.58 Crore of the trade receivables as at 3rt March, 2022)

Loans and Advances

The Company has given loans & advances to its employees. The Company manages its credit risk in respect of Loan and advances to employees through settlement of dues against full & final payment to employees.

Cash and cash equivalents and deposits with banks

The Company has banking operations with highly rated banks including scheduled banks which are owned by Government of India and Private Sector Banks. The risk of default with government controlled entities is considered to be insignificant.

(i) 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/customers have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment has been recognised during the reporting periods in respect of such assets.

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

The Company has customers (State government utilities) with strong capacity to meet the obligations. Further, management believes that the unimpaired amounts that are past due by more than 45 days are still collectible in full. However, considering various regulatory and other disputes including historical payment behaviour and analysis of customer credit risk impairment loss has been considered for the reporting period in respect of trade receivables.

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 other 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 manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows.

The Company's treasury department is responsible for managing the short term and long term liquidity requirements of the Company.

Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

a) SBI R 1,680.75 Crore facility has been taken for Talabira project. Out of the entire facility as on 31^st March, 2023 the undrawn amount is R 1,087.75 Crore. Ref note 16(a).

b) SBI term loan of R 2,552.00 Crore has been taken for solar 709 MW , out of which R 2,319.00 Crore has been utilised till date and the undrawn amount is R 233.00 Crore as on 31st March, 2023. ref note 16 (a).

c) A working capital cash credit facility of R 4,000.00 Crore availed from SBI, out of which R 498 Crore ( PY R 285 Crore) Crore has been utilised and the undrawn amount of R 3,502 Crore ( PY R 3,715 Crore) Crore is available as on 31.03.2023. Ref Note no. 19 (a).

C. Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices which will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return.

D. Currency risk

The Company executes import agreements for the purpose of purchase of capital goods. Up to 31^st March, 2016 the Company till the date of commercial operation capitalize the exchange gain/loss on account of re-instatement/actual payment of the vendor liabilities. Such capital cost is allowed by CERC as recovery from beneficiaries. If any exchange gain/loss arise after the date of commercial operation the same will also be recovered from beneficiaries as part of rate regulated asset. From April 01, 2016 exchange gain/loss on long term foreign currency monetary item will be recovered from beneficiaries as a part of rate regulated asset. Hence there is no risk in case of foreign exchange gain/loss on long term foreign currency monetary items. The exposure in case of foreign exchange gain/loss on short term foreign currency monetary items is considered to be insignificant.

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

E. Interest rate Risk

The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. However, the actual interest incurred on normative loan is recoverable from beneficiary as fixed charge as per CERC Regulations.

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.

Equity price risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. In the case of the Company, none of the investments in equity shares are quoted in the market and does not expose the Company to equity price risks.

1. Since the business operation is within India the secondary disclosure does not arise.

2. The inter-segment transfers are priced on cost plus profit basis.

3. Allocation of

i) Storage charges on the basis of material consumption

ii) Common charges and social overhead on the basis of salaries and wages

iii) Service Centres Assets & Liabilities are apportioned among the Segments on the basis of the service rendered. Conformation about major customers

Revenue from one major customer under "generation of energy" segment is ^ 4,530.47 Crore ( 31^st March, 2022 : ^ 4,208.87 Crore) which is more than 10% of Company's total revenues.

Note 48

Advances, Sundry Debtors and Sundry Creditors have been linked with corresponding credits/debits to the extent practicable. Balances due in respect of advances and amount due to creditors are subject to confirmation and reconciliation. However, power and lignite sale dues are reconciled periodically with debtors.

The above Contingent liabilities do not include the guarantees / letter of comfort/credit given by NLCIL to its subsidiaries and letter issued to various authorities against tax / other demand which has been challenged by the Company.

The Company is in the process of evaluating value of contingent assets. Based on preliminary estimate the same was not found material for separate disclosure.

C. Dividend distribution tax on proposed dividend not recognised at the end of the reporting period

Since year end, the Board of Directors of NLCIL have recommended the payment of final dividend @20% amounting to R 2 per share for FY 2022-23 (31^st March, 2022: R 1.5 per share ). As per IT act, 1961 as amended by Finance Act, 2020 dividend declared/ distributed/paid by the Company on or after 01.04.2020 shall be taxable in the hand of the share holder and the Company shall be required to deduct tax at source (TDS) at the rate prescribed under Income Tax Act from the dividend amount to be paid to the share holders at the time of distribution/payment of dividend .

Note 55- Additional Disclosures to the notification dated 24^th March 2021, by Ministry of Corporate Affairs

a) Title deeds/Assignment Deeds/Govt.Orders of Immovable Property not held in name of the Company : As on the date of financials all the immovable properties are held in the name of the Company by way of Title deed /Assignment deed/ Government Order. In certain cases the Company is in the process of updation of name in the revenue records.

b) Loans and Advances to Directors, KMPs, & Related Parties : The Company has a policy of loans and advances given to its employees including loans and advances given to Directors, KMPs and the related parties. All these loans are paid as in accordance with the Policy adopted by the Company and Repayments and interests to be charged accordingly. No loans paid to Directors, KMPs and Related parties are repayable on demand or without specifying the terms of repayment. Hence the additional disclosure as specified in the notification no.GSR 207 (e) dated 24^th March, 2021 to Companies Act 2013 is not applicable to the Company.

c) Details of benami Properties : There is no benami properties held by the Company as on date of financials. Hence the additional disclosure as specified in the notification no.GSR 207 (e) dated 24th March, 2021 to Companies Act 2013 is not applicable to the Company.

d) Wilful Defaulter : As on date of financials or any of the previous years , the Company has not defaulted any of its loans paid to any Banks or Financial Institutions.

f) Compliance with number of layers of companies : Clause (87) of section 2, section 450 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 and section 2 Companies (Restriction on number of layers) Rules, 2017, government companies are exempt from requirements of disclosing the number of layers of its holding in subsidiaries. Hence the additional disclosure as specified in the notification no.GSR 207 (e) dated 24^th March, 2021 to companies Act 2013 is not applicable to the Company.

g) Utilisation of Borrowed funds and share premium:

1) The Company has not advanced or loaned or invested any funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall. (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

2) The Company has not received any fund from any person(s) or entity(s), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the Company shall disclose the following.

Hence both the above additional disclosure as specified in the notification no.GSR 207 (e) dated 24th March, 2021to companies Act 2013 is not applicable to the Company.

h) Details of Crypto Currency or Virtual Currency : The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year or any of the previous financial years.

i) Borrowings secured against current assets:

The Company has availed working capital facility of ^ 5000 Crore ( ^ 4000 Crore Fund based and ^ 1000 Crore non fund based.) agreed with SBI and is secured by Hypothecation of entire current assets of the Company i.e., raw Materials, Stock in progress, Consumable stores, Spares and charge on receivables. The outstanding Working Capital loan as on 31^st March, 2023 is ^ 498 Crore in the form of T-bill linked WCL. This outstanding loan carries interest rate of 7.60% p.a.

The Company has filed quarterly/monthly returns with the banks and financial institutions as per the terms of loans. These returns are in agreement with books of accounts of the Company. There are no material discrepancies in the returns filed by the Company during the FY 22-23 or any of previous financial years.

(A) Recent Pronouncement Standards notified but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting standards) Amendment Rules, 2023 dated 31^st March, 2023 to amend the following Ind AS which are effective from 1st April, 2023.

(i) Definition of Accounting estimates - Amendments to Ind AS 8 :

The amendments clarify the distinction between the changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after April 1, 2023 and apply changes in accounting policies and changes in accounting estimates that occur on or after the start of the period.

The amendments are not expect to have a material impact on the Company's Financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirements for entities to disclose their 'significant' accounting policies with a requirement to disclosure their 'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments to Ind AS 1 are applicable for annual periods beginning on or after 1st April, 2023. Consequential amendments have been made in Ind AS 107.

The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

(iii) Deferred Tax related to Assets and Liabilities arising from single transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transaction that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented, in addition, at the beginning of the earliest comparative period presented, a deferred tax asset ( Provided that sufficient taxable profit is available ) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual period beginning on or after 1st April, 2023. The Company is currently assessing the impact of the amendments.

(B) The Code on Social Security, 2020 ('the Code') has been enacted, which would impact contribution by the Company towards employee benefits. The effective date from which changes are applicable is yet to be notified and the rules thereunder are yet to be announced. The actual impact on account of this change will be evaluated and accounted for when notification becomes effective.

(C) Rounding off & Regrouping in Financials

Amount in the financial statements are presented in ^ Crore (up to two decimals) except for per share data and as other-wise stated. Certain amounts, which do not appear due to rounding off, are disclosed separately. Figures of previous year has been regrouped/reclassified wherever necessary.

D) Disclosure as per IND AS - 8, Accounting Policies, Change in Estimates and Errors

During the year the Company has modified its accounting policy with respect to the following to align industry practice, Ind AS compliance and for better understanding.

a. Financial instruments

b. Prepaid Expenses

c. Revenue recognition.

d. Depreciation

The impact on account of these changes in accounting policies are immaterial.

Note 57

a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables for sale of energy, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipt of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries for sale of power and lignite is generally done on periodical basis. So far as trade/ other payables and loans and advances are concerned, the balance confirmation letters with the negative assertion as referred in the Standard on Auditing (SA) 505 (Revised) 'External Confirmations', were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact. Loan outstanding balances of employees are also reconciled periodically.

b) In the opinion of the management, the value of assets, other than property, plant and equipment and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

c) The Company is faced with significant deficit in availability of land at Neyveli for lignite mining, which is affecting the operations of the Company in the foreseeable future.

The Company has been initiating serious and deliberate efforts to acquire adequate lands but has to contend with significant challenges in the process which, inter alia, include:

i) Delay in requisite legislations being passed to facilitate smooth acquisition of lands.

ii) General resistance by landowners to cede possession of lands.

iii) Fresh demands by the landowners for additional compensation, employment opportunities and other benefits beyond agreed terms.

iv) Landowners' reluctance to cede possession of lands and continuing to retain and enjoy the possession of lands including benefits accruing owing to such possession despite having received the full compensation as agreed.

The combined effect of all the above factors had led to lower levels of production of lignite as well as uncertainties with regard to sustaining the production capabilities in future.

There have been also instances of shutdowns of power stations during the year besides difficulties encountered by the Company in meeting their commitments for supply of lignite to the customers.

Considering the huge requirement of lands, the Company has initiated the following measures:

a) Enhancing the compensation packages as well as offering very attractive and socially and environmentally compliant Rehabilitation and Resettlement and other welfare initiatives to adequately address the human side of the issues.

b) Giving preferential treatment to all Project affected people in competitive examinations of recruitment adding 20 marks.

c) Holding frequent meetings with authorities at both State and District level.

Initiating efforts to identify alternate sources of lignite to ensure continuous operations.

The Company is confident of overcoming the challenges on land acquisition at Neyveli mines with sustained efforts, in the near future