2.15 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation
in measurement are recognized when there is a legal
or constructive obligation as a result of past events
and it is probable that there will be an outflow of
resources and a reliable estimate can be made of the
amount of obligation. Provisions are not recognized
for future operating losses. The amount recognized
as a provision is the best estimate of the consideration
required to settle the present obligation at the end of
the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

Contingent liabilities is not recognized and are
disclosed by way of notes to the financial statements
when there is a possible obligation arising from past
events, the existence of which 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 or when there is a present obligation that
arises from past events where it is either not probable
that an outflow of resources will be required to settle
the same or a reliable estimate of the amount in this
respect cannot be made.

Contingent Assets are disclosed in the financial
statements by way of notes to accounts when an inflow
of economic benefits is probable.

2.16 Employee Benefits

The Company makes contributions to Gratuity fund
which is administered through duly constituted and
approved Trust. Provident Fund contributions are in the
nature of defined contribution scheme. Provident funds
are deposited with the Government and recognised
as expense. The cost of providing benefits under the
defined benefit obligation is calculated by independent

actuary using the projected unit credit method.
Service costs and net interest expense or income is
reflected in the Statement of Profit and Loss. Gain or
Loss on account of remeasurements are recognised
immediately through other comprehensive income in
the period in which they occur. The employees of the
Company are entitled to compensated leave for which
the Company records the liability based on actuarial
valuation computed using projected unit credit
method. These benefits are unfunded except Gratuity.

2.17 Revenue Recognition

Revenue from contracts with customers is recognised
on supply of electricity or when services are rendered
to the customers at an amount that reflects the
consideration to which the Company is entitled under
appropriate regulatory framework.

Revenue to be earned from sale of electricity supplied
from regulated business is accounted for on basis of
monthly billing with specified due dates to consumers
at rates approved by WBERC based on relevant tariff
order and Company's understanding of the applicable
available regulatory provisions. Sales are net of
rebates and do not include electricity duty collected
from consumers and payable to the State Government.

Sale of electricity other than above is billed monthly
with specified due dates and accounted for at rates
agreed with respective consumers

Regulatory income and expense for the year recognised
as per Regulations issued by WBERC are shown
separately in the Statement of Profit and Loss.

The Company receives contribution from consumers
in accordance with the regulations, that is being
used to construct or acquire items of property, plant
and equipment in order to connect the consumer to
the Company's distribution network. The Company
recognises revenue in respect for such contribution so
received from consumer in the year they are connected
to the distribution network.

2.18 Interest, Dividend and Claims

Dividend income is recognized when the right to receive
payment is established. Interest has been accounted
using effective interest rate method. Insurance claims/
other claims are accounted as and when admitted /
settled.

2.19 Borrowing Costs

Borrowing cost comprises of interest and other costs
incurred in connection with the borrowing of the funds.
All borrowing costs are recognized in the Statement

of Profit and Loss using the effective interest method
except to the extent attributable to qualifying Property
Plant and Equipment (PPE) which are capitalized to
the cost of the related assets. A qualifying PPE is an
asset, that necessarily takes a substantial period of
time to get ready for its intended use or sale. Borrowing
cost also includes exchange differences to the extent
considered as an adjustment to the borrowing costs.

2.20 Income Tax

Current tax represents the amount payable based on
computation of tax as per prevailing taxation laws
under the Income Tax Act, 1961. Provision for deferred
taxation is made using liability method on temporary
difference arising between the tax base of assets and
liabilities and their carrying amounts in the financial
statements using tax rates (and laws) that have been
enacted or substantially enacted by the end of the
reporting period and are expected to apply when the
related deferred tax asset is realised or the deferred tax
liability is settled. Deferred Tax Assets are recognized
subject to the consideration of prudence and are
periodically reviewed to reassess realization thereof.
Deferred Tax Liability or Asset will give rise to actual
tax payable or recoverable at the time of reversal
thereof. Current and Deferred tax relating to items
recognised outside profit or loss, that is either in other
comprehensive income (OCI) or in equity, is recognised
along with the related items.

2.21 Earnings per equity share

Basic earnings per share including regulatory income/
expense is calculated by dividing the net profit or loss
for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the period is adjusted for
events including a bonus issue.

Basic earnings per share excluding regulatory income/
expense is calculated by dividing the net profit or loss
for the period before regulatory income/expense
attributable to equity shareholders (after deducting
attributable taxes) by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period is adjusted for events including a
bonus issue.

For the purpose of calculating diluted earnings per
share including regulatory income/expense, the net
profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) and
the weighted average number of shares outstanding

during the period are adjusted for the effects of all
dilutive potential equity shares.

For the purpose of calculating diluted earnings per
share excluding regulatory income/expense, the net
profit or loss for the period before regulatory income/
expense attributable to equity shareholders (after
deducting attributable taxes) and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

2.22 Regulatory Assets and Liabilities

Regulatory assets and liabilities shown as Regulatory
Deferral Account Balance are recognised based
on process defined in Tariff Regulations issued by
WBERC and in accordance with provision of Ind AS
114- Regulatory Deferral Accounts read with guidance
note on rate regulated activities. Any adjustment
thereof are recognised in the year in which order of
WBERC are received. It includes amount recoverable
from/ refundable to consumers on account of Fuel and
Power Purchase Cost Adjustment (FPPCA), and other
adjustments based on tariff regulations and orders
Consequential adjustments are given effect to upon
confirmation by the relevant authorities.

3 CRITICAL ACCOUNTING JUDGEMENTS,
ASSUMPTIONS AND KEY SOURCES OF
ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in
conformity with IND AS requires management to
make estimates, judgments and assumptions. These
estimates, judgements and assumptions affect the
application of accounting policies and the reported
amount of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the
financial statements and reported amount of revenues
and expenses during the period. Accounting estimates
could change from period to period. Actual results could
differ from those estimates. Appropriate changes in
estimates are made as management becomes aware of
changes in circumstances surrounding the estimates.
Differences between the actual results and estimates
are recognised in the year in which the results are
known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.

Application of accounting policies that require
significant areas of estimation, uncertainty and
critical judgments and the use of assumptions in the
financial statements have been disclosed below. The
key assumptions and other key sources of estimation
and uncertainty at the balance sheet date, that have

a significant risk of causing a material adjustment to
the carrying amount of assets and liabilities within the
next financial year have also been discussed below:

a) Regulatory Deferral Account Balances

Regulatory Deferral account balances consists
of Fuel and Power Purchase Cost Adjustment
(FPPCA) and other accruals as per the tariff
Regulation as recognised in the accounts have
been considered on the basis of available tariff
order and as per the norms and formula prescribed
in the regulations. This may vary requiring
adjustments on determination by the regulator.

b) Fair Valuation of Financial assets

Beneficial interest in Power Trust have been
evaluated and considered based on the valuation
of underlying securities as estimated by the
respective management and evaluated by
an independent valuer. Variation arising with
respect to actual numbers in future may require
adjustment effecting other comprehensive
income.

Investment in unlisted equity are carried at fair
value through other comprehensive income based
on latest available audited financial statement
and other relevant information available with the
Company as at the balance sheet date.

c) Income taxes

Significant judgment is required in determination
of taxability of certain income and deductibility
of certain expenses during the estimation of
the provision for income tax. Accordingly, such
provision has been made considering concession/
allowances including those based on expert
advice/judicial pronouncements.

d) Contingencies

Management judgement is required for estimating
the possible outflow of resources, if any, in
respect of contingencies/claim/litigations as it
is not possible to predict the outcome of pending
matters with accuracy.

e) Impairment loss on trade receivables

The Company evaluates whether there is any
objective evidence that trade receivables
are impaired and determines the amount of
impairment loss as a result of the inability of
the debtors to make required payments. The
Company bases the estimates on the ageing of
the trade receivables balance, credit-worthiness

of the trade receivables and historical write-off
experience. If the financial conditions of the trade
receivable vary, it may effect the amount of actual
write-offs as estimated.

f) Defined benefit obligation (DBO)

Management's estimate of the DBO is based
on a number of critical underlying assumptions
such as standard rates of inflation, cost trends,
mortality, discount rate and anticipation of future
salary increases. Variation in these assumptions
may impact the DBO amount and the annual
defined benefit expenses.

4 AMALGAMATION OF INDIA POWER CORPORATION
LIMITED

Pursuant to the scheme of arrangement and
amalgamation ('the scheme') sanctioned by the Hon'ble
Calcutta High Court vide its order dated 17th April, 2013,
erstwhile India Power Corporation Limited (erstwhile
IPCL), has been amalgamated with the Company with
effect from 1st October 2011(the appointed date). The
scheme was therefore given effect to in the financial
Statements for the year ended 31st March 2013.

4.1 Consequent to the amalgamation as above:

The shareholders of erstwhile IPCL (the Transferor
Company) are entitled to 11 equity shares of the
Company (the Transferee Company) against every 100
equity shares held by them. Accordingly 1,12,02,75,823
equity shares of ' 1 each of the Company aggregating to
' 11,202.75 lakhs are to be issued to the shareholders of
erstwhile IPCL. Erstwhile IPCL being the Amalgamating
/ Transferor Company, its shareholding of 51,61,32,374
equity shares of ' 1 each aggregating to ' 5,161.32
lakhs in the Company shall stand cancelled in terms
of the scheme approved by the High Court leaving
38,95,15,856 equity shares held by Power Trust. The
above referred allotment and cancellation has not
been given effect due to certain pending clearance(s)/
approval(s) from the Stock Exchanges. Pending this, a
net amount of ' 6,041.43 lakhs, being the differential
amount with respect to the equity shares to be
allotted and to be cancelled as stated herein above,
has continued to be shown as share capital suspense
account.

In terms of the Orders dated 27th January, 2017 ,
25th August, 2017 and 18th May, 2018 of Hon'ble
Calcutta High Court, Power Trust transferred/sold off
through Offer for Sale 6,57,70,691 equity shares of the
Company. Therefore, Power Trust holds 32,37,45,165
equity shares of the Company as on 31st March, 2025.

13.2 The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal
Electricity Regulatory Commission for regulatory business and as per Power Purchase Agreements (PPA) entered
with DISCOMs for non regulatory business. Consumer's outstanding balances are regularly monitored. The Company
evaluates the concentration of risk with respect to trade receivable as low as outstanding from non regulatory business
is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by
rate regulated body of the state government and customers cannot shift to other distribution licensee without clearing
dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security
deposit from its consumers, to mitigate the credit risk to an extent. Trade receivable ageing for the year ended 31st
March, 2025 and 31st March, 2024 is as below:

19.1 Tariff regulations, risks and uncertainties

I n the State of West Bengal tariff for electricity are determined by West Bengal Electricity Regulatory Commission

(WBERC/Commission).

(a) Multi year tariff (MYT) proposal giving therein details for appropriate capital structure to meet the capital
investment plan with details of cost of financing including interest cost on debt and return on equity, expected
sales for the years and the 'Annual Revenue Requirement' (ARR) covering both variable and fixed cost is submitted
to WBERC. Commission examines the MYT proposals thereafter and tariff is determined for different categories
of consumes At the end of the financial year, "Annual Performance Review" (APR) petition for fixed cost and
Fuel and Power Purchase Cost Adjustment (FPPCA) for variable cost is submitted to WBERC. WBERC reviews
cost incurred under two categories as defined in Tariff regulation as "Controllable" and "Uncontrollable". In case
of Uncontrollable cost all increase are allowed on actual basis and for Controllable cost, the commission may
disallow any increase if these are not considered to be justifiable.

(b) The tariff regulation prescribes various normative operational and financial parameters for the Company. Any
variation thereof may lead to disallowances. The Company is exposed to regulatory risk to the extent accruals
are disallowed on assessment.

(c) As per the Tariff Regulation any increase in variable cost is allowed to be recovered from consumers based on
formula prescribed in the tariff regulation for " Fuel and Power Purchase Cost Adjustment" (FPPCA) as 'monthly
variable cost adjustment' (MVCA). FPPCA recoverable/ refundable, reliability incentive etc. is accounted for as
regulatory income/(expense) in the statement of Profit and Loss.

(d) Regulatory deferral account balances relate to FPPCA, Reliability incentive and other accruals recognised on the
basis of latest declared tariff order and claims filed with WBERC. Accruals on account of FPPCA and reliability
incentives etc. are recognised in books as per formula prescribed in Tariff Regulation. Reversal/ accrual are carried
out in the year in which Tariff, FPPCA and APR orders are received. Recovery of the regulatory deferral account
balances are carried out in the manner and instalments as allowed by WBERC.

21.1 Considering that capital contribution from consumers toward service lines are not refundable to the consumers even
after they cease to be consumers and the underlying assets there against being under ownership of the Company,
such contribution are being treated as Capital Reserve.

21.2 Reserve arising on amalgamation of Associated Power Company Limited with the Company in the year 1978 has been
shown as other capital reserve.

21.3 (a) The general reserve is created from time to time by appropriating profits from retained earnings at the discretion

of the Company. As the general reserve is created by a transfer from one component of equity to another, and
accordingly it is not reclassified to the Statement of Profit and Loss.

21.3 (b) General Reserve include ' 56,887.09 lakhs being General reserve of amalgamating company in terms of Note 4.

Further, reserve of ' 20,079.84 lakhs arising on amalgamation has also been included therein.

21.4 Reserve for unforeseen exigencies reserve are created in terms of the Tariff Regulation issued by West Bengal Electricity
Regulatory Commission. The sum appropriated to 'Reserve for unforeseen exigencies fund' are to be invested in
specified securities and financial instruments (fixed deposit) at Nationalised bank. The interest accrued from such
investment is reinvested and kept under - 'Reserve for unforeseen exigencies interest fund'. The aforesaid reserves or
fund shall be drawn upon only to meet such charges as the Commission may approve.

21.5 Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company.

21.6 Dividend Distribution

The amount that can be distributed as dividends to its equity shareholders is determined considering the requirements
of the Companies Act, 2013 and the dividend distribution policy of the Company.

On 27th September, 2024 dividend pertaining to the financial year 2023-2024 of ' 0.05 per equity shares aggregating
to ' 228.83 lakhs has been approved and paid to equity shareholders of the Company.

In respect of the year ended 31st March, 2025, the Board of Directors has recommended a dividend of ' 0.05 per share
to be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General
Meeting and has not been included as a liability in these financial statements. The actual dividend will be paid on equity
share capital outstanding as on the record date/ book closure.

23.1 (a) Includes term loan of Nil (' 1585.56 lakhs as on 31st March, 2024) at 1 year MCLR plus 3.40% and is repayable in

9 years from 10th September 2016 in equal quarterly installments and is secured by exclusive charge on entire
fixed assets pertaining to 220/33 kv sub-station at J.K Nagar, Burdwan, both present and future.

23.1 (b) Includes term loan of ' 123.86 lakhs (' 210.35 lakhs as on 31st March, 2024) at 1 year MCLR plus 5.65% repayable

in 40 quarterly installments with effect from 31st March 2016 and is secured by first pari passu charge with other
financing banks/financial institution on the assets created/to be created out of the term loan, both present and
future and exclusive fixed charge on certain fixed assets of the Company.

23.1 (c) Includes Guaranteed emergency credit line - Working Capital term loan of ' 702.21 lakhs (' 1468.26 lakhs as on

31st March, 2024 ) at 1 year MCLR plus 0.60%repayable in 48 equal monthly installments after moratorium of 12
months from the date of first disbursement and is 100% guaranteed by National Credit Guarantee Trustee Company
Limited secured by second charge by way of hypothecation of entire current assets of the Company, both present
and future.

23.1. (d) Includes Guaranteed emergency credit line - Working Capital term loan of ' 142.05 lakhs (' 311.00 lakhs as on

31st March, 2024 ) at 1 year MCLR plus 1% repayable in 48 equal monthly installments after moratorium of 12
months from the date of first disbursement and is 100% guaranteed by National Credit Guarantee Trustee Company
Limited secured by second charge by way of hypothecation of entire current assets of the Company, both present
and future on pari passu basis with working lenders and second charge on assets of 1x12 MW plant project and
immovable property consisting of Land of 20.10 acres at Dishergarh, District Burdwan and second pari passu
charge on immovable properties consisting of 1.0749 acres of land and all the buildings including all structures
there on, fixed plant and machinery, furniture & fittings, present and future at Plot X1-3 , Block EP, Salt lake, Kolkata
and 1731.82 sq. mtr land at Iswarpura (Gujarat). and land measuring 0.18 decimal located at Mouza- Mandalpur
and also on immovable properties situated at Jamuria.

23.1. (e) Includes Guaranteed emergency credit line - Working Capital term loan of ' 130.00 lakhs (' 256.52 lakhs as on 31st

March, 2024 ) at 1 year MCLR plus 1% repayable in 48 equal monthly installments after moratorium of 12 months
from the date of first disbursement and is 100% guaranteed by National Credit Guarantee Trustee Company Limited
and secured by second pari passu charge on current assets of the Company, both present and future and second
pari passu charge on certain unencumbered assets.

23.2 Includes term loan of ' 314.00 lakhs (' 512.57 lakhs as on 31st March, 2024 ) at 10.20% repayable in 20 equated quarterly
installments with effect from 30th June 2021 and is secured by hypothecation of entire fixed assets pertaining to
SCADA at J.K Nagar Sub-station and associated 33/11 kv substation including any interconnecting equipment in-
betweens, collateral security of value equivalent 30% of loan amount in form of residential plots/flats/houses along
with post-dated cheques of both principal and interest amounts as per repayment schedule.

45 (c) Corporate Guarantee was issued on 23rd September 2016 in favour of lenders of Meenakshi Energy Limited
(MEL) for the outstanding loan amount subject to WBERC approval. WBERC has declined the approval vide their
letter dated 10th November, 2017. Accordingly, the lenders of MEL were informed that the Corporate Guarantee
given earlier is void. Despite the above the State Bank of India, the lenders had filed section 7 application under
Insolvency and Bankruptcy Code 2016 in NCLT, Hyderabad on 25th August 2021 claiming an amount of ' 50047.58
lakhs against the Corporate Guarantee provided by the Company. The same has been dismissed by Hon'ble NCLT,
Hyderabad vide its order dated 30th October 2023.

State bank of India has filed an appeal on 2nd December 2023 against the Company before National Company
Law Appellate Tribunal (NCLAT), Chennai under the Insolvency and Bankruptcy Code,2016 challenging the order
dated 30th October 2023 passed by NCLT, Hyderabad dismissing Section 7 application filed by State Bank of India
. Vide its order dated 1st May, 2024 and 9th July 2024 NCLAT, Chennai rejected the application of SBI. SBI had also
filed a civil appeal before Hon'ble Supreme Court of India. Hon'ble Supreme Court of India vide its Order dated
14th February, 2025 had remanded back the matter before NCLT Hyderabad which is pending for adjudication.

However, the Company is having a claim of ' 440649.45 lakhs against the Valuation of the Shares of MEL which
was invoked by SBI Cap Trustee on 2nd May 2018 for which a Suit has been filed before the Commercial Court,
Alipore. Same is pending adjudication.

45 (d) Corporate guarantee given in 45 (c) above are in the nature of insurance contract.

46 IN THE CAPACITY OF LESSEE

46.1 Certain premises has been obtained on operating lease. The term of lease for premises is less than 1 year and is

renewable as per mutual agreement.

46.2 The Company has taken certain plant and machinery on lease basis.

Significant features of aforesaid lease arrangements are as follows:

i) The Company will pay the lease rent over the lease period . The lease rent is calculated on revenue receipt.

ii) Upon the expiry of the lease period by efflux of time, the lessor, may agree to have the lease renewed for a
secondary lease period.

iii) There are no restrictions imposed on the Company by the existing lease agreements.

46.3 The Company has taken certain land on Lease. Carrying value of land taken on lease is ' 32,046.53 lakhs
(' 30,536.33 lakhs as on 31st March, 2024). The Company is scheduled to pay lease rental as follows:

48 SEGMENT REPORTING

Company's business activities involves power generation, power distribution and other strategic activities. The
Company's organisational structure and governance processes are designed to support effective management of
multiple segment while retaining focus on each one of them. The segments of Company are well organised and internal
records are separately maintained for each segment. Further management reviews each segment independently to
make decisions about resource allocation and performance measurement.

The operation of the Company consist of two segments, namely :

a. Regulated Business, which consist of power distribution business (including thermal power generation which
exclusively supply power for distribution business) in Asansol, West Bengal (licensed area) regulated by West Bengal
Electricity Regulatory Commission;

b. Non Regulated business, consists of all business which are not covered under clause (a).

48 SEGMENT REPORTING (CONTD.)

Non Regulated business of the Company are independent and has no bearing with the Regulated business. All rights,
obligations, liabilities, profits or losses of Non Regulated Business arising from any contract, financial transaction,
financial commitment (including corporate guarantee) or any statute or under any Act is solely attributable to Non
Regulated segment. Any demand &/or loss (present &/or future), pertaining to Non Regulated Business, arising out
of any activity, including inter-alia, investment activity or acquisition activity starting from the acquisition of the
investments and from its further operations will be the liability of the Non Regulated business division only and to be
settled utilising the funds of Non Regulated Business &/or from its assets.

51A Additional Regulatory information required by schedule III to the Companies Act, 2013

i. The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transaction Prohibition Act, 1988 (45 of 1988) and
Rules made thereunder.

ii. The Company has not been declared willful defaulter by any bank or financial institution or any other lender.

iii. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year and
previous financial year.

iv Utilisation of borrowed funds and share premium

I. The Company have not advanced or loaned or invested funds to any other person or entity, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

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

II. The Company have not received any fund from any person or entity, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

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

v. 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
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vi. The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87) of the Companies Act, 2013 read with Companies (Restriction of number of layers) Rules, 2017.

52 The Company has reviewed and reassessed the recoverability of its assets and liabilities and has written off/provided
' 8749.80 lakhs and written back ' 8886.21 lakhs.

53 EMPLOYEE BENEFITS
Gratuity (Funded)

The Company's gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a
gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India (LIC),
make payments to vested employees on their cessation of employment, death or incapacitation of an amount based
on the respective employee's salary and tenure of employment subject to a maximum limit of '20.00 lakhs. Vesting
occurs upon completion of five years of service.

The weighted average duration of the defined benefit obligation as on 31st March, 2025 is 6 years (6 years as on 31st
March, 2024).

Post Retirement Obligation -Lump sum payment in lieu of Pension (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lump sum amount
at various scales to the vested employee or their nominee upon retirement, death or cessation of service based on
tenure of employment. Vesting occurs upon completion of 20 years of service.

The weighted average duration of the defined benefit obligation as on March 31, 2025 is 4 years (4 years as on 31st
March, 2024).

b) Fair Value Technique

The fair values of the financial assets and financial liabilities are considered at the amount that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The following methods and assumptions were used to estimate the fair values:

56.2 Fair Value Hierarchy (Contd.)

i) The fair value of cash and cash equivalents, other bank balances, current financial assets, trade receivables,
current trade payables, current financial liabilities and borrowings approximate their carrying amount largely
due to the short-term nature of these instruments. The Board considers that the carrying amounts of financial
assets and financial liabilities recognised at cost/amortised cost in the financial statements approximates their
fair values.

ii) Non Current borrowing has been contracted at floating rates of interest, which are reset at short intervals. Fair
value of floating interest rate borrowings approximates their carrying value.

iii) Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date
multiplied by the quantity held.

iv) Valuation of Beneficial Interest in Power Trust has been arrived by fair valuing its assets less liabilities. Assets
of Power Trust mainly consist of quoted and unquoted investments. Quoted investments are valued at prevailing
market rate. Unquoted investments are fair valued by adopting Net Asset Value (NAV) approach. Under NAV
approach Fair Value of unquoted equity instruments is computed based on the last audited financial statement
of the respective companies. The valuation is based on the assumptions and estimates considered appropriate.

v) Fair Value of unquoted equity instruments is Net Asset Value (NAV) computed based on the last audited financial
statement of the respective companies and other relevant information available with the Company as at the
balance sheet date.

57 FINANCIAL RISK MANAGEMENT

The Company's business activities are exposed to a variety of financial risks - credit risk, liquidity risk, market risk and
interest rate risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and that
financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The
Board of Directors reviews and approves policies for managing each of these risks, which are summarized below:

57.1 Credit Risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables). The Company's exposure
to credit risk is influenced mainly by the individual characteristic of each consumer and the concentration of risk from the
top few consumers.

The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal
Electricity Regulatory Commission for regulatory business and as per terms of Power Purchase agreement (PPA) entered
with DISCOMS for non regulatory business. Consumers outstanding are regularly monitored. The Company evaluates the
concentration of risk with respect to trade receivable as low as outstanding from non regulatory business is covered with
PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body
of the state government and customers can not shift to other distribution licensee without clearing dues and obtaining "No
objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers,
to mitigate the credit risk to an extent. (refer note no. 13.2)

Credit risk pertaining to regulatory receivables have been dealt with in note no. 19.1

57.2 Liquidity Risk

The company objective is to maintain optimum level of liquidity to meet its cash and collateral requirement at all times.
The Company relies on Borrowing and internal accruals to meet its need for fund. The current committed lines of credit are
sufficient to meet its short to medium term expansion needs

The table provides undiscounted cash flow towards non -derivative financial liabilities into relevant maturity based on the
remaining period at balance sheet date to contractual maturity date.

In terms of loan agreement the Company is required to fulfill specified covenants including maintaining debt service and
other ratios, and failing which the lender has option to call back the loan.

The Company has current financial assets which will be realised in ordinary course of business. The Company monitors
rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining
headroom on its undrawn committed borrowing facilities at all times so that Company does not breach borrowing limits
or covenants (where applicable ) on any of its borrowing facilities.

57.3 Market Risk

The Company does not have any material market risk.

57.4 Interest rate risk

(i) Interest rate risk exposure

Interest rate exposure of the Company is mainly on Borrowing from Banks, which is linked to marginal cost of
fund based lending rate (MCLR) of bank's lending and the Company does not foresee any risk on the same. Inter
Corporate Deposits were taken on fixed rate of interest.

57.5 Capital Management
Risk Management

For the purpose of the Company's capital management, capital includes issued equity capital, share capital suspense
account and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company's capital management is to maximise the shareholders value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt,
loans and borrowings, less cash and cash equivalents.

Refer note 21.3 (b) for General Reserve arising on amalgamation which is included for arriving at total equity

58 The Audit Committee in its meeting held on 20th May, 2025 has recommended to the Board the Business Transfer
Agreement (BTA) for transfer of Non-Regulated Business of the Company to its wholly owned Subsidiary, IPCL Power
Limited (previously known as Parmeshi Energy Limited). The Board of Directors at their meeting held on even date has
approved the said BTA and transfer subject to approval of the Members of the Company.

59 These financial statements has been approved and adopted by Board of Directors of the Company in their meeting
dated 20th May, 2025 for issue to the Shareholders for their adoption.

As per our report on even date For and on behalf of the Board

For S S Kothari Mehta & Co. LLP

Chartered Accountants

Firm Registration No. 000756N/N500441

Rana Sen Somesh Dasgupta Raghav Raj Kanoria

Partner Whole-Time Director Managing Director

Membership No. 066759 (DIN:01298835) (DIN:07296482)

Place: Kolkata Anil Krishna Prasad Dhananjoy Karmakar

Date: 20th May, 2025 Chief Financial Officer Company Secretary