8.3 Pursuant to initiation of Corporate Insolvency Resolution Process (CIRP) in respect of Meenakshi Energy Limited (MEL), MEL ceased to be subsidiary of the Company w.e.f 7th November, 2019. Fair value of investments in MEL are adjusted through other comprehensive income. Based on developments in CIRP of MEL during the previous year, the Company has recognised fair value loss ' 10,023.41 lakhs including of ' 9,472.12 lakhs in value of its investment in equity shares of MEL through other comprehensive income in the previous year . Resolution plan of MEL has been approved vide National Company Law Tribunal order dated 10th August, 2023 and accordingly the Company has written off its holding in MEL during the year.

8.4 Statement of investment in Subsidiaries and Joint ventures

10.1 (a) Includes ' 485.00 lakhs (' 436.70 lakhs as on 31st March, 2023) kept as margin money with bank and ' 264.36

lakhs (' 186.10 lakhs as on 31st March, 2023) kept with bank as lien against repayment of term loans.

(b) Includes nil (' 48.11 lakhs as on 31st March, 2023) being investment against Unforeseen exigencies fund and nil (' 219.65 lakhs as on 31st March, 2023) being Investment against Unforeseen exigencies Interest fund.

10.2 Beneficial interest in Power Trust represent investments in company's shares and other unlisted companies net off borrowings and liabilities pertaining to investment division of erstwhile IPCL transferred to the said Power Trust in terms of the scheme of amalgamation (refer note 4). Considering that the Company's shares are held by an independent trust and are meant for sale in terms of Hon'ble Calcutta High Court order the beneficial interest (including company's shares) has been treated as financial assets and fair valuation as on 31st March, 2024 as required in terms of Ind AS 109 has been carried out by an independent Registered Valuer and the resultant decrease of ' 436.63 lakhs (' 27,983.93 lakhs as on 31st March, 2023) in value thereof, has been adjusted through other comprehensive income.

13.1 Secured by security deposits/ bank guarantee received from the respective consumers

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, 2024 and 31st March, 2023 is as below:

15.1 (a) Includes ' 985.35 lakhs (' 554.77 lakhs as on 31st March,2023 ) kept as margin money with bank and ' 676.53 lakhs

(' 756.43 lakhs as on 31st March, 2023 ) kept with bank as lien against repayment of term loans.

(b) Includes ' 56.51 lakhs (nil as on 31st March, 2023 ) being investment against unforeseen exigencies fund and ' 252.49 lakhs (' 10.00 lakhs as on 31st March, 2023 ) being Investment against unforeseen exigencies interest fund.

15.2 Earmarked against matter under arbitration with respect to wind assets in Gujarat.

16.2 Loan to related party is 27.19% ( 16.12% as on 31st March, 2023) of the total loans given by the Company.

16.3 Includes loan to Meenakshi Energy Limited of ' 3094.42 lakhs (previous year ' 3094.42 lakhs). The Resolution Plan of Meenakshi Energy Limited (MEL) under Insolvency and Bankruptcy Code, 2016 has been approved by NCLT Hyderabad. As per the said plan no amount has been considered as recoverable for the Company and there by the Company has written off equity investments of ' 10023.41 lakhs as given in note 8.3. However, the Company is having a claim of ' 440,649.45 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. Pending outcome of the said Suit the Management considers the value of receivables including interest thereon (refer note 17.1) from MEL as good.

17.1 Includes interest receivable from Meenakshi Energy Limited '658.82 (' 658.82 lakhs as on 31st March, 2023), (refer note 16.3).

17.2 Receivable from Power Trust represents amount receivable for sale of Compulsorily Convertible Preference Shares and Fully and Compulsorily Convertible Debenture of Hiranmaye Energy Limited in previous years and for which necessary approvals need to be obtained.

17.3 The lease of Chinakuri Power Station (CPS) with Eastern Coal Fields Limited (ECL) has expired on 31st March, 2012 and in terms of lease agreement ECL is required to take over all assets at respective Written Down Value as on the date of termination of the lease. In terms of the arbitration order passed by Arbitration Tribunal, handing / taking over of vacant and peaceful possession of CPS has been completed on 6th October, 2016. During the year Company has received an amount of ' 90.36 lakhs and the balance amount of ' 1221.13 lakhs (' 1311.49 lakhs as on 31st March, 2023) has been shown as recoverable from ECL. The said recoverable amount and counter claim by ECL is presently subjudice.

19.1 Tariff regulations, risks and uncertainties

In 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 consumers. 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 installments as allowed by WBERC.

19.2 Receivable on account of FPPCA of ' 966.75 lakhs for the year has been recognised on the basis of formulae prescribed under the applicable Tariff Regulations. The Company is entitled for incentive and gains including incentive for reliability in power supply and accordingly based on applicable norms as per Tariff regulation and claims filed with WBERC, ' 623.68 lakhs have been recognised. Adjustments in these respects are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities.

20.1 The Company has only one class of equity shares having a par value of ' 1 each. Each share has one voting right.

20.2 There is no movement in the number of shares outstanding and the amount of Share Capital as at 31st March, 2024 and 31st March, 2023.

Erstwhile India Power Corporation Limited (CIN: 40101WB2003PLC097340) has merged with DPSC Limited, now known as India Power Corporation Limited ( CIN: L40105WB1919PLC003263) on and from 24th May, 2013, pursuant to the scheme of Arrangement and Amalgamation sanctioned by Hon'ble High Court at Calcutta vide its order dated 17th April, 2013 ("scheme"). Subsequently CIN of Erstwhile IPCL has been marked as "amalgamated" on the Master Data available on the Ministry of Corporate Affairs portal and erstwhile IPCL is not an active Company.

However erstwhile IPCL continues to be shown as promoter of the Company holding 51,61,32,374 equity shares in the Company which is to be cancelled and 112,02,75,823 equity shares are to be issued to the shareholders of erstwhile IPCL as per the above mentioned scheme. The aforesaid cancellation and issue of shares has not been given effect to since certain clearance(s)/ approvals are still pending from the Stock exchanges.

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 by the Group 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 22nd September, 2023 dividend pertaining to the financial year 2022-2023 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, 2024, 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.

21.7 OCI represents

(a) Revaluation Surplus- The Company has elected to remeasure the value of its freehold and long term leasehold land and the gain arising on revaluation has been recognised in other Comprehensive income. The said reserve can not be utilised for distribution to shareholders

(b) Cumulative gains and losses arising on fair valuation of beneficial interest in Power Trust and equity instruments. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities and beneficial interest in Power Trust are disposed.

21.8 Refer Statement of changes in Equity for movement in balances of reserves.

23.1 (a) Includes term loan of nil (' 309.24 lakhs as on 31st March, 2023 ) at 1 year MCLR plus 5.10% and is repayable after

moratorium of two years from 1st April, 2012 in 9 years in thirty six equal quarterly installments and is secured by exclusive 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).

23.1 (b) Includes term loan of ' 1585.56 lakhs (' 2486.95 lakhs as on 31st March, 2023) 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 (c) Includes term loan of ' 210.35 lakhs (' 310.32 lakhs as on 31st March, 2023) 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. (d) Includes Guaranteed emergency credit line - Working Capital term loan of ' 1468.26 lakhs (' 2234.31 lakhs as on

31st March, 2023 ) 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. (e) Includes Guaranteed emergency credit line - Working Capital term loan of ' 311.00 lakhs (' 466.5 lakhs as on 31st

March, 2023 ) 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 security given against term loan in note 23.1 (a) and land measuring 0.18 decimal located at Mouza- Mandalpur and also on immovable properties situated at Jamuria.

23.1. (f) Includes Guaranteed emergency credit line - Working Capital term loan of ' 256.52 lakhs (' 383.01 lakhs as on 31st

March, 2023 ) 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 ' 512.57 lakhs (' 710.56 lakhs as on 31st March, 2023 ) 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 postdated cheques of both principal and interest amounts as per repayment schedule.

23.3 Represents loan from a body corporate repayable on 30th April, 2026 (for previous year repayable on 30th April, 2024) at nil rate of interest.

29.1 (a) Includes ' 812.77 lakhs (' 2222.50 lakhs as on 31st March, 2023) secured by first pari passu charge on current

assets both present and future 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). Company is in process of creating security for second pari passu charge on the property.

29.1 (b) Includes ' 509.84 lakhs (' 534.67 lakhs as on 31st March, 2023) secured by first charge, ranking pari passu on

current assets both present and future.

29.1 (c) Includes ' 225.69 lakhs (' 714.38 lakhs as on 31st March, 2023) secured by first pari passu charge on current assets

both present and future.

29.1 (d) Includes ' 1018.88 lakhs (' 1514.96 lakhs as on 31st March, 2023) secured by first pari passu charge on current

assets both present and future and exclusive charge on certain movable fixed assets of Dhasal sub-station.

29.2 Statement of current assets filed with the banks are in agreement with books of accounts except trade receivable where consumer's outstanding has not been considered in the accounts pending necessary approval.

30.3 One of the power suppliers of the Company has adjusted the dues related to the company amounting to ' 8717.06 lakhs with the receivables of another body corporate. Company has disputed the same and is taking necessary steps to address the matter. Till the matter is resolved, Company is continuing to show the balances outstanding of the said power supplier as trade payables.

32.1 Includes ' 11981.33 lakhs on account of electricity duty payable as per Bengal Electricity Duty Act, 1935. The management has taken necessary measures to address the matter by adjustments/setoff of this balance with the receivables from government consumers. As such the consequential impact on delay in payment has not been considered in the financial statement and management is of the view that the same will not arise on the Company.

45 (c) The Company had given Corporate Guarantee on 23rd September 2016 in favour of lenders of Meenakshi Energy Limited (MEL) for the outstanding loan amount (' 2,79,963.76 lakhs as on March 31, 2019) subject to WBERC approval. WBERC has declined the approval vide their letter dated November 10, 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. The 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.

46.4 The Company has not made any sublease arrangement with other parties.

46.5 The Company has recognised an amount of ' 1479.44 lakhs (previous year ' 1087.41 lakhs) towards lease rent (note 39) and ' 6.46 lakhs (previous year ' 6.09 lakhs) for rent of premises (note 43) for the year.

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).

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.

49.1 Share capital suspense of ' 6,041.43 lakhs represents equity share capital of ' 11,202.75 lakhs (net of '5,161.32 lakhs to be cancelled), to be issued to the Shareholders of amalgamating Company pursuant to a scheme under implementation as on this date. EPS has been computed taking into account the net balance of ' 6,041.43 lakhs in share suspense account representing ' 6,041.43 lakhs fully paid up shares of ' 1 each, the allotment in respect of which is in abeyance for certain pending formalities with stock exchange as per interim order of SEBI relating to Minimum Public Shareholding.

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.

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 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, 2024 is 6 years (6 years as on 31st March, 2023).

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, 2024 is 4 years (4 years as on 31st March, 2023).

These assumptions were developed by management with the assistance of independent actuarial appraisers Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience.

52.11 The contribution to the defined benefit plans expected to be made by the Company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

53 During the year ' 285.27 lakhs has been recognised as expenditure towards defined contribution plans of the company (previous year ' 267.07 lakhs)

54 CORPORATE SOCIAL RESPONSIBILITY EXPENSE

A. Gross Amount required to be spent by the Company during the year is ' 37.20 lakhs (previous year ' 44.57 lakhs)

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:

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 Discounted Free Cash Flow method (DCF) and Net Asset Value (NAV) approach. The DCF method estimates the cash flows for each financial period included in the period for projections and discounts this to its present value at an appropriate weighted average cost of capital (WACC). 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.

56 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:

56.1 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

56.2 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.

56.3 Market Risk

The Company does not have any material market risk.

56.5 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.

57 These financial statements has been approved and adopted by Board of Directors of the Company in their meeting dated 29th May, 2024 for issue to the Shareholders for their adoption.