(r) Provisions and contingent liabilities

Provisions are recognised when the Company has
a present obligation as a result of a past event, it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation.

A disclosure for contingent liabilities is made 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 a present obligation that arises
from past events where it is either not probable
that an outflow of resources embodying economic
benefits will be required to settle or a reliable estimate
of the amount cannot be made.

(s) Business combination

Business combination involving entities or businesses
under common control are accounted for using
the pooling of interest method whereby the assets
and liabilities of the combining entities /business
are reflected at their carrying value and necessary
adjustments , if any, have been given effect to as per
the scheme approved by National Company Law
Tribunal, as applicable.

(t) Regulatory deferral account balances

The Company is a rate regulated entity and follows
Ind AS 114, Regulatory Deferral Accounts. Expenses/
Income are recognized as Regulatory Income/
Expenses in the Statement of Profit and Loss to the
extent recoverable or payable in subsequent periods
based on the Company's understanding of the
provision of the applicable regulations framed by
the West Bengal Electricity Regulatory Commission
(WBERC/Commission) and/or their pronouncements/
orders, with corresponding balances shown in
the Balance Sheet as Regulatory Deferral Account
balances, at their present value duly considering
appropriate discounting methodology in consonance
with the applicable regulations and prudence.

Regulatory Deferral Account balances being estimates
are revised based on factual developments, including
impact of regulatory orders.

NOTE-2B SUMMARY OF SIGNIFICANT JUDGEMENTS
AND ASSUMPTIONS

The preparation of Standalone financial statements
requires the use of accounting estimates, judgements
and assumptions. Management also needs to exercise
judgement in applying the Company's accounting policies.

Estimates and judgements are continually evaluated. They
are based on historical experience and other factors,
including expectations of future events that may have a
financial impact on the Company and that are believed to
be reasonable under the circumstances.

The areas involving critical estimates or judgements are:-

Estimate of useful life of Intangible Assets -Note -2A (e);

Estimation of Restoration Liability- Note- 2A (e) and 23;

Fair Valuation/Impairment assessment of certain
Investments -Note-7 & Note-2 A (g);

Estimation of Regulatory Deferral Account Balances
- Note -18 & 39;

Impairment of Trade Receivables -Note - 2A (g);

Estimates used in Actuarial Valuation of Employee benefits
-Note-35;

Estimates used in Lease liabilities -Note-50.

NOTE-3 CHANGES IN EXISTING IND-AS

The Ministry of Corporate Affairs (MCA) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as
issued from time to time. During the current year, MCA
has notified the following amendments in the existing
standards applicable to the Company w.e.f. April 1, 2025:

(i) Amendments to Ind AS 21 - Lack of exchangeability;

(ii) Amendments to Ind AS 1 - Classification of Liabilities
as Current or Non-current and Non-current Liabilities
with Covenants;

(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier
Finance Arrangements;

(iv) I nternational Tax Reform - Pillar Two Model Rules -
Amendments to Ind AS 12.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have a significant impact on the
Company's standalone financial statements.

a) User Fee Income earned recognised in Statement of profit & loss ' 11.70 crore (previous year: ' 11.70 crore)

b) Fair valuation of the above freehold land as per rent capitalisation method (income approach) amounts to ' 296.90
crore (as on 31.03.2025: ' 295 crore) as per registered independent valuer and categorised as level 2. The main inputs
used in determining the fair valuation of the Investment Property are utility, marketability, self liquidity, future rentals, etc.

c) The lease term in respect of Investment Property - freehold given under Operating Lease is 25 years which can be
extended upon the sole discretion of the Company. This lease has been granted to Quest Properties India Limited
to develop, operate and maintain a mall during the said lease term and the aforesaid property has been offered as
security in respect of financial assistance availed by the said company. Incentive given by the Company by way of rent
free period for development of the Investment Property has been spread across the period of the contract. Future
minimum lease rental receivables during next one to five years ' 11.70 crore (as on 31.03.2025: ' 11.70 crore) in each
of the years and later than five years ' 19.51 crore (as on 31.03.2025: ' 31.21 crore).

d) The lease term in respect of Investment Property - leasehold land is 29 years 11 months which can be extended upon
the execution and registration of fresh lease deed on mutually acceptable terms and conditions between the parties.
The Company intends to sublease this land in near future.

For the period of five years immediately preceding 31st March,2026, no shares were bought back or were allotted as fully
paid up pursuant to any contract without consideration being received in cash or allotted as fully paid up by way of bonus
shares.

f. Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of ' 1/- per share fully paid up. Holders of equity
shares are entitled to one vote per share. An Interim dividend of ' 6/- per equity share of ' 1/- each (31.03.2025:
' 4.50/- per equity share of ' 1/- each) has been paid during the year ended 31st March 2026. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive the sale proceeds from remaining assets of
the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the
shareholders.

g. Details of shareholders holding more than 5% shares in the Company

Fund for unforeseen exigencies has been created for dealing with unforeseen exigencies and the amount transferred
during the year will be invested as per the applicable regulations. Retained Earnings represents profit earned by the
Company, net of appropriations till date and adjustments done on transition to Ind AS. Equity Instruments through
Other Comprehensive Income represents the cumulative gains and losses arising on fair valuation of equity instruments
measured at fair value through other comprehensive income.

Capital reserve had arisen consequent to a scheme of arrangement pursuant to National Company Law Tribunal
(NCLT) order in financial year ended 31st March 2018.

i Debentures amounting to ' 1687.50 crore (31.03.2025 - ' 1400.00 crore) are secured, ranking pari passu inter se,
by equitable mortgage/hypothecation of the movable property, plant and equipment of the Company as a first
charge. Creation of mortgage security in respect of one debenture amounting to ' 300 crore is in process as on
31.03.2026.

ii Term Loans amounting to:

(a) ' 6360.24 crore (31.03.2025 - ' 7321.23 crore) are secured, ranking pari passu inter se, by equitable
mortgage/hypothecation of the property, plant and equipment of the Company including its land, buildings
and any other constructions thereon, plant and machinery, etc. as a first charge and, as a second charge,
by hypothecation of the Company's current assets comprising stock of stores, coal, book debts, monies
receivable and bank balances;

(b) ' 655.07 crore (31.03.2025 - ' 857.51 crore) are secured, ranking pari passu inter se, by equitable mortgage/
hypothecation of the property, plant and equipment of the Company as a first charge;

(c) ' 197.50 crore (31.03.2025- ' 200.00 crore) are secured, ranking pari passu inter se, by hypothecation of the
movable property, plant and equipment of the Company as a first charge;

(d) Out of above, creation of mortgage security in respect of Rupee Loans aggregating to ' 300 crore is in
process as on 31.03.2026.

' 6.25 crore; 29-Dec-31 - ' 6.25 crore; 29-Sep-31 - ' 6.25 crore; 29-Jun-31 - ' 6.25 crore; 29-Mar-31 - ' 6.25 crore;
11-Apr-30 - ' 20.82 crore; 11-Jan-30 - ' 20.84 crore; 11-Oct-29 - ' 20.84 crore; 11-Jui-29 - ' 20.84 crore; 11-Apr-29 -
' 20.84 crore; 11-Jan-29 - ' 20.84 crore; 28-Dec-28 - ' 25 crore; 11-Oct-28 - ' 20.83 crore; 29-Sep-28 - ' 37.50 crore;
28-Sep-28 - ' 25 crore; 26-Sep-28 - ' 300 crore; 11-Jui-28 - ' 20.83 crore; 29-Jun-28 - ' 37.50 crore; 28-Jun-28 -
' 25 crore; 11-Apr-28 - ' 20.83 crore; 29-Mar-28 - ' 37.50 crore; 28-Mar-28 - ' 25 crore; 11-Jan-28 - ' 20.83 crore; 29-
Dec-27 - ' 37.50 crore; 28-Dec-27 - ' 25 crore; 16-Nov-27 - ' 37.50 crore; 17-Oct-27 - ' 25 crore; 11-Oct-27 - ' 20.83
crore;29-Sep-27 - ' 37.50 crore; 28-Sep-27 - ' 25 crore; 16-Aug-27 - ' 37.50 crore; 17-Jui-27 - ' 25 crore; 11-Jui-27 -
' 20.83 crore; 29-Jun-27 - ' 37.50 crore; 28-Jun-27 - ' 25 crore; 16-May-27 - ' 37.50 crore; 17-Apr-27 - ' 25 crore; 29-
Mar-27 - ' 37.50 crore; 28-Mar-27 - ' 25 crore; 16-Feb-27 - ' 37.50 crore; 17-Jan-27 - ' 25 crore; 29-Dec-26 - ' 37.50
crore; 16-Nov-26 - ' 37.50 crore; 17-Oct-26 - ' 25 crore; 30-Sep-26 - ' 50 crore; 16-Aug-26 - ' 37.50 crore; 17-Jui-26 -
' 25 crore; 30-Jun-26 - ' 50 crore; 16-May-26 - ' 37.50 crore and 17-Apr-26 - ' 25 crore.

Interest rates on Rupee Term Loans are fixed or based on spread over respective lenders' benchmark rate. Interest rate
on Debentures are fixed or based on spread over Repo/T-Bill rate.

All of the above are repayable in periodic instalments over the maturity period of the respective loans. Debentures
aggregating to ' 1400 crore are due for maturity on 29-Dec-34 - ' 6.25 crore; 29-Sep-34 - ' 6.25 crore; 29-Jun-34 -
' 6.25 crore; 29-Mar-34 - ' 6.25 crore; 29-Dec-33 - ' 6.25 crore; 29-Sep-33 - ' 6.25 crore; 29-Jun-33 - ' 6.25 crore; 29-
Mar-33 - ' 6.25 crore; 29-Dec-32 - ' 6.25 crore; 29-Sep-32 - ' 6.25 crore; 29-Jun-32 - ' 6.25 crore; 29-Mar-32 - ' 6.25
crore; 29-Dec-31 - ' 6.25 crore; 29-Sep-31 - ' 6.25 crore; 29-Jun-31 - ' 6.25 crore; 29-Mar-31 - ' 6.25 crore; 28-Dec-28
- ' 25 crore; 29-Sep-28 - ' 37.50 crore; 28-Sep-28 - ' 25 crore; 29-Jun-28 - ' 37.50 crore; 28-Jun-28 - ' 25 crore; 29-
Mar-28 - ' 37.50 crore; 28-Mar-28 - ' 25 crore; 29-Dec-27 - ' 37.50 crore; 28-Dec-27 - ' 25 crore; 16-Nov-27 - ' 37.50
crore; 17-Oct-27 - ' 25 crore; 29-Sep-27 - ' 37.50 crore; 28-Sep-27 - ' 25 crore; 16-Aug-27 - ' 37.50 crore; 17-Jul-27 -
' 25 crore; 29-Jun-27 - ' 37.50 crore; 28-Jun-27 - ' 25 crore; 16-May-27 - ' 37.50 crore; 17-Apr-27 - ' 25 crore; 29-Mar-
27 - ' 37.50 crore; 28-Mar-27 - ' 25 crore; 16-Feb-27 - ' 37.50 crore; 17-Jan-27 - ' 25 crore; 29-Dec-26 - ' 37.50 crore;
16-Nov-26 - ' 37.50 crore; 17-Oct-26 - ' 25 crore; 30-Sep-26 - ' 50 crore; 16-Aug-26 - ' 37.50 crore; 17-Jul-26 - ' 25
crore; 30-Jun-26 - ' 50 crore; 16-May-26 - ' 37.50 crore; 17-Apr-26 - ' 25 crore; 30-Mar-26 - ' 50 crore; 16-Feb-26 -
' 37.50 crore; 17-Jan-26 - ' 25 crore; 30-Dec-25 - ' 50 crore; 30-Sep-25 - ' 50 crore and 30-Jun-25 - ' 50 crore.

a. Estimated amount of contracts remaining to be executed on capital account (including those relating to mine
development) and letter of comforts to arrange for support if required, towards borrowing/financing obligations
of subsidiaries from banks, amount to ' 670.45 crore (31.03.2025: ' 41.31 crore) and ' 1371.37 crore (31.03.2025:
' 1414.43 crore) respectively. Also refer Note 4 for project related letter of comforts.

b. The Ministry of Coal had encashed the bank guarantee of the Company amounting to ' 66.15 crore in April 2018, in
terms of its letter dated 25.04.2018, alleging non-compliance with the mining plan for the years 2015-16 and 2016¬
17 as per the Coal Mine Development and Production Agreement (CMDPA). Further, in terms of the above letter, the
Ministry had directed the Company to top-up the bank guarantee with the aforesaid encashed amount. The Hon'ble
High Court of Delhi while disposing the petition filed by the Company against the Ministry's letter dated 25.04.2018,
stayed the operation of this letter and further directed the Company to approach the Tribunal. The Company has filed
a petition before the Special Tribunal at Godda, Jharkhand challenging the letter dated 25.04.2018 and further seeking
refund of the encashed amount. Based on a legal opinion, the Company expects a favourable outcome in the matter,
and no provision has been considered necessary.

c. The Company has given bank guarantee of ' 181.29 crore (31.03.2025: ' 184.05 crore) for procurement of coal, etc.
which is outstanding as on the reporting date.

d. The Company had executed commitment agreement to extend support and provide equity in respect of certain
subsidiaries engaged in project development including restriction on transfer of certain investments held by the
Company.

e. (i) The Company had received order under section 270A of the Income Tax Act for ' 0.96 crore in respect of

Assessment Year 2018-19 on certain disallowances made during the course of assessment proceedings and filed
necessary appeal. Based on legal opinion obtained, the Company expects a favourable outcome in the matter
and no provision has been considered necessary in the books of accounts.

(ii) The Company has received adjudication orders aggregating to ' 43.97 crore confirming GST on road restoration
charges paid by the Company to municipal authorities for the years 2018-19 to 2021-22. The Company is pursuing
available legal remedies. Based on legal opinion obtained, the Company expects a favourable outcome in the
matter and no provision has been considered necessary in the books of accounts.

f. Bharat Coking Coal Limited (BCCL) and Mahanadi Coalfields Limited (MCL) raised demands on the Company amounting
to ' 111 crore and ' 12 crore respectively with respect to alleged excess supply of coal during 2015-16 and 2016-17
under respective Fuel Supply Agreements (FSAs) towards levy of premium beyond the notified and settled price. Such
levy of premium is not in consonance with the FSAs and accordingly the Company has moved to the Hon'ble Calcutta
High Court and obtained interim protection against the aforesaid demands. In the previous year, the Company received
similar demand from Eastern Coalfields Limited amounting to ' 22 crores. Based on a legal opinion, the Company
expects a favourable outcome in the matter, and no provision has been considered necessary.

g. With regard to the Company's power purchase from one of its subsidiaries (provider), West Bengal Electricity Regulatory
Commission (WBERC) has issued the tariff order (considering applicable Annual Performance Review (APR) orders for
Generation and Transmission Project) for the years 2018-19 to 2025-26, wherein certain underlying matters have
been dealt with in deviation from past practices of tariff determination and kept for disposal through future truing up
exercise, impact of which is not ascertained. The said provider not being in agreement with the same, has since filed
appeal in respect of the above Tariff Order before the Hon'ble Appellate Tribunal for Electricity (APTEL) on the grounds
interalia, that the orders have been passed after substantial period of delay, the applicable periods are long over and
directions passed are impossible to comply because of significant delay in passing the said orders. However, since the
Tariff Order from the financial year 2022-23 onwards were issued during applicable financial years, the said provider
has given effect to the same from 2022-23 onwards with application of principles in terms of applicable Regulations.
With respect to APR orders of the said provider from WBERC for the years 2014-15 to 2019-20 including refund orders
for the aforesaid APR Orders, the said provider not being in agreement with the same, has filed appeals in the matter
before the Hon'ble APTEL in respect of APR Orders and refund orders. Based on legal opinion obtained, the provider is
confident of the matter being adjudicated in its favour. Accordingly, necessary adjustment, if any, will be made on the
matter reaching finality.

h. Commitments relating to leasing arrangement, refer note 50.

(i) Defined contribution plans

The Company makes contributions for provident fund and family pension schemes (including for superannuation)
towards retirement benefit plans for eligible employees. Under the said plan, the Company is required to contribute a
specified percentage of the employees' salaries to fund the benefits. The fund has the form of trust and is governed by
the Board of Trustees. During the year, based on applicable rates, the Company has contributed and charged ' 63.16
crore (previous year: ' 62.61 crore) on this count in the Statement of Profit and Loss.

The Company also sponsors the Gratuity plan, which is governed by the Code on Social Security, 2020. The Company
makes annual contribution to independent trust, who in turn, invests in the Employees Group Gratuity Scheme of
eligible funds for qualifying employees.

Liabilities at the year end for gratuity, leave encashment and other retiral benefits including post-retirement medical
benefits have been determined on the basis of actuarial valuation carried out by an independent actuary.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined
benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated
with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability
recognised in the balance sheet.

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

(viii) Risk exposure

The Plans in India typically expose the Company to some risks, the most significant of which are detailed below:

Discount Rate Risk: Decrease in discount rate will increase the value of the liability. However, this will partially set off
by the increase in the value of plan assets.

Demographic Risk: In the valuation of the liability certain demographic (mortality and attrition rates) assumptions are
made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the
assumptions thereby causing an increase in the scheme cost.

Future Salary Increase Risk: In case of gratuity & leave the scheme cost is sensitive to the assumed future salary
escalation rates for all last drawn salary linked defined benefit Schemes. If actual future salary escalations are higher
than that assumed in the valuation actual Scheme cost and hence the value of the liability will be higher than that
estimated. But PRMB & pension are not dependant on future salary levels.

Regulatory Risk: New Act/Regulations may come up in future which could increase the liability significantly in case
of Leave obligation, PRMB & Pension. Gratuity Benefit must comply with the requirements of the Code on Social
Security, 2020. Also in case of interest rate guarantee, Exempt Provident Fund must comply with the requirements of
the Employees Provident Funds and Miscellaneous Provisions Act 1952 as amended up-to-date.

Regulatory Income/(Expenses) arise to the Company pursuant to the regulatory provisions applicable to the Company
under the provisions of the Electricity Act, 2003 and regulations framed thereunder and disposals made by WBERC on the
Company's various petitions/applications, in terms of the said regulations, at different timeframe including the tariff and APR
orders for various years notified till date. These estimates have been recognised with discounting methodology, assuming
recovery over a period of time, in consonance with the applicable regulations and application of prudence, considering net
discounting impact of ' (576.45) crore [Previous year: ' (61.89) crore].

The effect of adjustments towards income/(expenses) for the current year, relating to (a) cost of energy purchased, fuel
related costs and those having bearing on revenue account and (b) Deferred Taxation estimate, as appropriate, based on
the Company's understanding of the applicable regulatory provisions and applicable orders of the competent authorities,
amounts to ' 625.00 crore [Previous year: ' 1195.00 crore] and ' (90.49) crore [Previous year: ' (60.20) crore] respectively.
The cumulative sum as described above have been shown as Regulatory Income/(Expenses) with corresponding sums,
reflected in Balance Sheet as Regulatory Deferral Account Balances (refer Note 18).

During the current financial year, the Company has received orders from WBERC in respect of its Annual Performance
Review (APR) for the financial year 2020-21, which has deviated from past practices/extant regulations in certain matters, for
which the Company has filed necessary appeals, including for earlier years. Based on legal opinion obtained, the Company
is confident of the matter being adjudicated in its favour. Accordingly, necessary adjustment, if any, will be made on the
matter reaching finality.

The Regulatory Deferral Asset and related Deferred Tax Liability balances as at 1st April, 2024, was recomputed and reduction
of ' 751.94 crore and ' 151.63 crore was factored on account of adoption of New Tax Regime and effect of change in capital
gains taxation pursuant to Finance Act 2024 respectively.

Regulatory deferral account debit balance comprise the effect of (a) Deferred tax recoverable, (b) cost of fuel and purchase
of power and other adjustments having bearing on revenue account amounting to ' 2102.95 crore (31.03.2025: ' 2193.47
crore) and ' 4406.67 crore (31.03.2025: ' 3762.07 crore) respectively. These balances have been recognised, assuming
recovery over a period of time in consonance with applicable regulations and prudence.

Accordingly, the accurate quantification and disposal of the matters with regard to Regulatory Deferral Account balances,
shall be given effect to, from time to time, on receipt of necessary direction from the appropriate authorities, including
those attributable to the mining of coal from Sarisatolli mine which commenced operations from 10th April 2015.

The different levels have been defined below:

Level 1: financial instruments measured using quoted price. The fair value of all equity instruments which are traded in

the stock exchanges is determined using the closing price.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either

directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data.
c) The following methods and assumptions were used to estimate the fair values

i. The fair value of preference share is determined on the basis of discounted cash flow wherein future cash flows
are based on the terms of preference share discounted at rate that reflects market rate.

ii. The carrying amounts of trade receivables, trade payables, receivable towards claims and services rendered,
receivable from related parties, other bank balances, interest accrued payable/receivable, other receivables/
payables, cash and cash equivalents are considered to be the same as their fair values, due to their short term
nature.

iii. Loans, non-current borrowings, lease receivable/payable and security deposits are based on amortised cost using
effective interest rate method.

iv. Fair Value of financial Intruments is determined on the basis of discounted cash flow analysis, considering the
nature, risk profile and other qualitative factors. The carrying amounts are a reasonable approximation of the fair
value.

NOTE-41 FINANCIAL RISK AND OTHER RISKS MANAGEMENT AND CAPITAL MANAGEMENT

The Company's operations of generation and distribution of electricity are governed by the provisions of the Electricity
Act 2003 and Regulations framed thereunder by the West Bengal Electricity Regulatory Commission and accordingly the
Company, being a licensee under the said statute, is subject to regulatory provisions/guidelines and issues evolving therefrom,
having a bearing on the Company's liquidity, earning, expenditure and profitability, based on efficiency parameters provided
therein including timing of disposal of applications/regulatory matters by the authority.

The Company being the sole provider of electricity in the licenced area has been managing the operations keeping in
view its profitability and liquidity in terms of above regulations. In order to manage credit risk arising from sale of electricity,
multipronged approach is followed like maintenance of security deposit, precipitation of action against defaulting consumers,
obtaining support of the administrative authority. Credit risk towards Investment of surplus funds is managed by obtaining
support of credit rating and appraisal by external agencies and lending bodies. The Company extends financial support to
its subsidiaries including letter of comforts etc. to their lenders, for borrowings, etc.

The Company manages its liquidity risk on financial liabilities by maintaining healthy working capital and liquid fund position
keeping in view the maturity profile of its borrowings and other liabilities as disclosed in the respective notes.

The Company's market risk relating to variation of foreign currency, interest rate and commodity price is mitigated through
relevant regulations and availability of bulk commodity namely coal generally sourced from own captive mine, domestic
long term linkage and Special Forward E-Auction conducted by Coal India Limited and/or its subsidiaries.

While managing the capital, the Company ensures to take adequate precaution for providing returns to the shareholders
and benefit for other stakeholders, including protecting and strengthening the balance sheet. Availability of capital and
liquidity is also managed, in consonance with the applicable regulatory provisions.

The Company considers climate-related matters in estimates and assumptions, where appropriate. The Company is
closely monitoring relevant changes and developments, such as new climate-related legislation. The Company analyses all
applicable statutory compliances towards enhancing energy efficiency through implementation of latest technologies and
adoption towards reduction of green house gas emissions in its establishments.

Liability in respect of the security deposit collected by the Company, in terms of applicable regulations of the WBERC, has
been classified as non - current, given the nature of its business in the license area, excepting to the extent of the sum
refundable/payable within a year, based on past trends.

Interest on Consumers' Security Deposits (being in the nature of trade deposits) is included in Other Expenses, as per
consistent practice followed by the Company. This is paid to the consumers at the applicable rates in terms of the Regulations
framed, under the Electricity Act, 2003.

NOTE- 46

Miscellaneous Expenditure in Note 38, includes a Contribution of ' 60 crore (previous year: ' 60 crore) to Prudent Electoral
Trust in accordance with Sec. 182 of the Companies Act, 2013, advances/other receivables written off amounting to ' 6.97
crore (Previous year: ' 3.50 crore) and impairment of investments amounting to ' 0.05 crore (Previous year: ' 0.10 crore).

The Company is primarily engaged in generation and distribution of electricity which is the only reportable business segment
in line with the segment wise information which is being presented to the Chief Operating Decision Maker (CODM). There
are no reportable geographical segments, since all business is within India.

The Company is also running a single retail store in state of Gujarat which is not significant for the CODM and hence not
considered as reportable segment.

NOTE- 49

In terms of applicable Regulations under the Electricity Act, 2003, depreciation on tangible assets other than freehold land
is provided on straight line method on a pro-rata basis at the rates specified therein, the basis of which is considered by the
West Bengal Electricity Regulatory Commission (Commission) in determining the Company's tariff for the year, which is
also required to be used for accounting purpose as specified in the said Regulations. Based on legal opinions obtained, the
Company continues with the consistently followed practice of recouping from the retained earnings an additional charge
of depreciation relatable to the increase in value of assets arising from fair valuation, which for the current year amounts
to ' 188.25 crore (31.03.2025: ' 190.96 crore) and corresponding withdrawal of ' 0.07 crore (31.03.2025: ' 0.13 crore)
consequent to sale/disposal of such assets.

Consequent to change in WBERC regulations relating to Advance Against Depreciation (AAD), the net depreciation charge
for the year has been computed after necessary adjustments of AAD computed in terms of the Tariff regulations, as amended
from time to time. Consequently, the depreciation amount to be claimed for the year for tariff purposes, is reduced by
' 19.60 crore (previous year: ' 3.03 crore). Also refer Note 2A(c).

None of the above ratios vary more than 25% except Inventory turnover ratio & Trade payables turnover ratio. Such variation
in Inventory turnover ratio is on account of decrease in average fuel inventory level in current year as compared to previous
year. Further the variation in Trade payable turnover ratio is due to increase in Payable to a subsidiary company for power
purchases.

Formulae for computation of above ratios are as follows:

Current Ratio = Total Current Assets/Totai Current Liabilities

Debt Equity Ratio = Non Current Borrowings (including current maturities of long-term debts) Current Borrowings/Totai
Equity

Debt Service Coverage Ratio = Profit after tax depreciation deferred tax provisions finance costs/finance costs lease
rent expense (excluding short term lease rent) debt repayments (net of proceeds utilised for Refinancing)

Return on Equity (ROE) = Profit after tax/Average Total Equity

Inventory Turnover Ratio = Cost of Fuei/Average Fuel Inventory

Trade Receivables Turnover Ratio = Revenue from Operations/Average Trade Receivables

Trade payables turnover Ratio = Cost of Fuei & Power Purchase/Average Trade payabie for cost of energy purchased &
cost of fuei

Net working capital turnover ratio = Revenue from Operations/Average Working Capital
Net profit ratio = Profit after Tax/Totai Income

Return on capital employed (ROCE) = Earning before interest and taxes/Capitai Employed

Capital Employed = Total Equity Non Current Borrowings (including current maturities of long-term debts) Current
Borrowings

Return on investment = Income generated from investments/Average invested funds in treasury investment
Net Worth = Equity Other Equity

NOTE- 53 OTHER STATUTORY INFORMATION (Contd.)

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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

(vi) The Company has not received any fund from any person(s) or entity(ies), 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.

(vii) The Company has no such 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).

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company is maintaining its books of accounts in electronic mode and these books of accounts are accessible in
India at all times and the back-up of the books of accounts has been kept in servers physically located in India on a daily
basis. The Company has used various accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further no instance of audit trail feature being tampered with was noted in respect of those
accounting software. Additionally, the audit trail of prior years has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in the respective years.

(x) The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with
the books of accounts.

NOTE- 54 DISCLOSURE UNDER SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015.

The Company has given loans and advances from time to time to its wholly owned subsidiaries, Kota Electricity Distribution
Limited (KEDL), Eminent Electricity Distribution Limited (EEDL) and Malegaon Power Supply Limited (MPSL) amounting
to ' 22 crore, Nil and ' 91.72 crore respectively. Out of the said loans and advances, a sum of ' 26 crore was refunded
to the Company by KEDL and ' 120 crore by EEDL thereby leaving an outstanding balance as on March 31, 2026 of Nil
(31.03.2025: ' 4 crore) for KEDL, ' 899 crore (31.03.2025: ' 1019 crore) for EEDL and ' 151.72 crore (31.03.2025: ' 60 crore)
for MPSL. The maximum outstanding amount during the year was ' 26 crore (31.03.2025: ' 26.30 crore), ' 1019 crore
(31.03.2025: ' 1,019 crore) and ' 151.72 crore (31.03.2025: ' 60 crore) for KEDL, EEDL and MPSL respectively.

NOTE- 56 A

The Ministry of Power, Government of India, has notified the Electricity Distribution (Accounts and Additional Disclosure)
Rules, 2025 vide Gazette Notification dated September 2025, which shall come into force with effect from 1 April 2026.
Based on legal advice the said Rules are applicable prospectively from 1 April 2026, they do not have any impact on the
recognition, measurement or presentation of asset and liabilities, income or expense in the standalone financial statements
for the year ended March 31, 2026. The Company is in the process of evaluating the impact of the said Rules on its financial
statements for periods commencing on or after 1 April 2026.

NOTE- 56 B

The Government of India has consolidated existing 29 labour legislations into a unified framework comprising four labour
codes viz the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the
Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the ""Codes""). The Codes have
been made effective from November 21, 2025.

The impact of these changes on employee benefit obligations, assessed by the Company, on the basis of the information
available, amounting to ' 5 crores with consequential impact on regulatory income has been recognised in the standalone
financial statements of the Company during the year ended 31st March, 2026. The Company continues to monitor the
finalisation of rules by the Central and State Governments and clarifications from the Government for appropriate actions
for such developments, as needed.

NOTE- 57

The above financial statements were approved by the Board of Directors at their meeting held on 6th May, 2026.