xv. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation.

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. When a
provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value of money is material).

Contingent liabilities are disclosed in the financial statements by way of notes to accounts, unless possibility of an outflow
of resources embodying economic benefit is remote.

Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is
probable.

xvi. Financial instruments

Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of
the instruments.

Financial assets and financial liabilities are initially measured at fair value. However, trade receivables that do not
contain a significant financing component are initially measured at transaction value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently
enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.

xvii. Financial Assets

a. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts
of cash that are subject to an insignificant risk of change in value and having original maturities of three months or
less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks
which are unrestricted for withdrawal and usage.

b. Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost using the effective interest method if these financial
assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

c. Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

The Company has made an irrevocable election to present in other comprehensive income subsequent changes in
the fair value of equity investments not held for trading.

d. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair
value through other comprehensive income on initial recognition.

e. Impairment of Financial assets

The Company assesses at each Balance Sheet date whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company
recognizes lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a
financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12
months expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the financial
asset has increased significantly since initial recognition.

f. Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expires, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party.

On derecognition of a financial asset in its entirety, (except for equity instruments designated as FVTOCI), the
difference between the asset's carrying amount and the sum of the consideration received and receivable is
recognized in Statement of Profit and Loss.

xviii. Financial liabilities and equity instruments

a. Financial liabilities are measured at amortized cost using the effective interest method.

b. Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash receipts through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

c. Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue
costs.

d. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and
the consideration paid and payable is recognized in Statement of Profit and Loss.

e. The Company designates certain hedging instruments, such as derivatives, such as forward contracts, as either fair
value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted as cash
flow hedges.

Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of
derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income
and accumulated in equity as 'hedging reserve'. The gain or loss relating to the ineffective portion is recognised
immediately in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in
equity relating to the effective portion, are reclassified to profit or loss in the periods when the hedged item affects
profit or loss, in the same head as the hedged item. The effective portion of the hedge is determined at the lower
of the cumulative gain or loss on the hedging instrument from inception of the hedge and the cumulative change
in the fair value of the hedged item from the inception of the hedge and the remaining gain or loss on the hedging
instrument is treated as ineffective portion.

xix. Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and
financing activities.

I. i. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need
for GIPCL Management to make judgments, estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual
outcomes could differ from the estimates and assumptions used.

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

ii. Critical judgments in applying accounting policies

The following is the critical judgment, apart from those involving estimations (Refer note 4.iii), that the Management has
made in the process of applying the Company's accounting policies and that has the significant effect on the amounts
recognized in the Financial Statements.

Evaluation of indicators for impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant
decline in asset's value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or
physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in
recoverable amount of the Property, Plant and Equipment.

iii. Assumption and key sources of estimation uncertainty

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets,
liabilities, income and expenses is provided below. Actual results may differ from these estimates.

a. 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, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses.

b. Investments in Unquoted Equity Instruments

The unquoted investments of the Company are measured at fair value for financial reporting purposes. In estimating
the fair value of an investment, the Company uses market-observable data to the extent it is available. Where Level
1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation.

a. Capital Redemption Reserve represents reserve created initially at the time of redemption of 13% Cumulative Redeemable
Preference Shares amounting to ' 5,005 Lakhs and at the time of redemption of 13.5% Cumulative Redeemable Preference
shares amounting to Rs 2,495 Lakhs. It was thereafter reduced by ' 4,044.12 Lakhs upon subsequent issue in October 2005
of 40,441,176 equity shares of Rs 10 each.

b. Expansion reserve represents the amount kept aside for future expansion before distributing dividend from the distributable
profit.

c. Securities premium reserve is used to record the premium on issue of equity shares. The reserve is utilised in accordance
with the provisions of the Companies Act 2013.

d. The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the general reserve is not reclassified subsequently to the Statement of profit and loss.

e. The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. This reserve represents the cumulative gains and losses arising on the revaluation of equity
instruments measured at fair value through other comprehensive income. The company transfers amounts from this reserve
to retained earnings when the relevant equity securities are disposed.

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

On 20^th September 2024, a dividend of Rs 3.95 per share (Total dividend ' 5,974.42 lakhs) was paid to holders of fully
paid equity shares. On 16^th September 2023, a dividend of Rs 3.75 per share (Total dividend ' 5,671.92 lakhs) was paid to
holders of fully paid equity shares.

g. In respect of the year ended 31^st March 2025, the Board of Directors has proposed a final dividend of ' 4.09 per share 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 proposed equity dividend is payable to all holders
of fully paid equity shares. The total estimated equity dividend would result in total cash outflow of ' 6,348.33 lakhs.

47. Post-Employment Benefits:

a. Defined Contribution plans:

The Company makes contributions towards provident fund, pension scheme and superannuation fund to Defined
Contribution retirement benefit plan for qualifying employees.

The Company pays fixed contribution to fund at predetermined rates to a separate trust, which invests the funds in permitted
securities. The obligation of the Company is to make such fixed contribution and to ensure a minimum rate of return to the
members as specified by Government of India.

Provident Fund is governed through a separate trust. The Board of Trustees of the Trust functions in accordance with any
applicable guidelines or directions that may be issued in this behalf from time to time by the Central Government or the
Central Provident Fund Commissioner, the board of trustees have the following responsibilities:

i. Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements
of the fund from time to time.

ii. Raising of moneys as may be required for the purposes of the fund by sale, hypothecation or pledge of the investment
wholly or partially.

iii. Fixation of rate of interest to be credited to members' accounts.

The provident fund plan is operated by the Gujarat Industries Power Company Ltd. Provident Fund Trust (the Trust).
Eligible employees receive benefits from the said trust which is a defined contribution plan. Under the plan, the Company
is required to contribute a specified percentage of employee's salary to the retirement benefit plan to fund the benefits. The
Company has recognised ' 435.83 lakhs (P.Y. ' 912.55 lakhs) for Provident Fund contributions, ' 67.59 lakhs (P.Y. ' 62.64
lakhs) for Pension Scheme and ' 279.95 lakhs (P.Y. ' 167.31) for National Pension Scheme (NPS) in the Statement of Profit
and Loss.

The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government. The
Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the
notified interest rate.

The superannuation fund plan is operated by Life Insurance Corporation of India (LIC) under its scheme of superannuation.
The eligible employees receive benefit under the said scheme from LIC. Under the plan, the Company is required to
contribute a specified percentage of employee's basic salary to the retirement benefit plan to fund the benefits. The Company
has recognised ' 178.33 lakhs (P.Y. ' 227.07 lakhs) for Superannuation Fund contributions in the Statement of Profit and
Loss.

b. Defined Benefit plans:

Earned Leave (EL) Benefit

Accrual - 30 days per year

Encashment while in service - Earned Leave balance subject to a minimum available 45 days per calendar year. Encashment
on retirement - maximum 300 days.

Sick Leave (SL) Benefit

Accrual- 10 days per year

The leave is encashable. Leave encashment occurs due to retirement and death. There is no limit on maximum accumulation
of leave days.

Gratuity

The gratuity policy had been amended during the FY 2023-24 from "a range of 15 to 20 days based on range of completed
year of service" to "a range of 15 to 23 days based on range of completed year of service". The impact of the said amendment
of previous years of ' 763.93 lakhs was disclosed in the FY 2023-24 as past service cost in the below reconciliations.
Vesting period is 5 years and the payment is at actual on superannuation, resignation, termination, disablement or on death.
Scheme is not funded. The liability for gratuity as above is recognised on the basis of actuarial valuation.

Post-Retirement Medical Benefits

The Post-Retirement Medical Benefit (PRMB) policy under which the retired employees and their spouse are provided with
reimbursement of Insurance Premium restricted to ' 30,000/- plus taxes.

The liability for the same is recognised annually on the basis of actuarial valuation. An employee should have put in a
minimum of 10 years of service rendered in continuity in GIPCL at the time of superannuation to be eligible for availing
post-retirement medical facilities.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and
salary risk.

i. Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. When there is a deep market
for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for these plans,
investments are made in Government securities, Debt instruments, Short term debt instruments, Equity instruments and
Asset backed, Trust structured securities as per notification of Ministry of Finance.

ii. Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase
in the return on the plan's investments.

iii. Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.

iv. Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan's liability.

No other post-retirement benefits are provided to these employees.

In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value of the defined
benefit obligation were carried out as at 31^st March 2025 by Actuaries. The present value of the defined benefit

48. Operating Segment

a. The Company's operations fall under single segment namely "Power Generation", taking into account the different risks and
returns, the organization structure and the internal reporting systems hence no separate disclosure of Operating Segment is
required to be made as required under Ind AS - 108 "Operating Segment".

b. Information about major customers

Revenue from sales (which exceeds 10% of total revenues) amounting to ' 117,094.86 lakhs (P.Y. ' 126,220.71 lakhs) is
derived from a single customer which is a state Public Sector Undertaking.

c. Information about geographical areas:

Segment revenue from "Sale of Power" represents revenue generated from external customers which is fully attributable to
the Company's Country of Domicile i.e. India.

All assets are located in the Company's Country of domicile.

d. Information about products and services

The Company derives revenue from sale of power. The information about revenues from external customers is disclosed in
Note no. 33 of the Financial Statements.

49. Financial instruments disclosure:

I. Capital management

The Company's objective when managing capital is to:

a. Safeguard its ability to continue as going concern so that the Company is able to provide maximum return to stakeholders
and benefits for other stakeholders; and

b. Maintain an optimal capital structure to reduce the cost of capital.

The Company maintains its financial framework to support the pursuit of value growth for shareholders, while ensuring a
secure financial base. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The capital structure of the Company consists of total equity and debt.

Management of the Company reviews the capital structure on a regular basis. As part of this review, the management
considers the cost of capital, risks associated with each class of capital requirements and maintenance of adequate liquidity.

III. Financial risk management objectives

While ensuring liquidity is sufficient to meet Company's operational requirements, the Company's management also monitors
and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of
risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance
of a business. The major components of market risk are commodity price risk and interest rate risk.

Interest rate risk management - Borrowings

The Company's main interest rate risk arises from the long-term borrowings with floating rates.

The Company's floating rates borrowings are carried at amortised cost. Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the
risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.
Interest rate risk management - Investment

The Company invests the surplus fund generated from operations in bank deposits. Bank deposits are made for a period of upto
12 months and carry interest rate of 6.00%-7.55% as per prevailing market interest rate. Considering these bank deposits are
short term in nature, there is no significant interest rate risk.

Price risks

The Company's equity securities price risk arises from investments held and classified in the Balance Sheet at fair value through
OCI. The Company's equity investments in GACL & Gujarat Gas Ltd are publicly traded.

Price sensitivity analysis

The sensitivity of profit or loss in respect of investments in equity shares at the end of the reporting period for /-5% change in
price and net asset value is presented below:

Other comprehensive income for the year ended 31^st March 2025 would increase / decrease by ' 528.58 lakhs (P.Y. ' 617.99
lakhs) as a result of 5% changes in fair value of equity investments measured at FVTOCI.

Credit risk management

Credit risk arises from cash and cash equivalents, investments carried at amortized cost and deposits with banks as well as
customers including receivables. Credit risk management considers available reasonable and supportive forward-looking
information including indicators like external credit rating (as far as available), macro-economic information (such as regulatory
changes, government directives, market interest rate).

Major customers, being power purchasing companies having highest credit ratings, carry negligible credit risk. Concentration of
credit risk to any other counterparty did not exceed 15 % of total monetary assets at any time during the year.

Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by the Management.
Investments in liquid plan/schemes are with public sector Asset Management Companies having highest rating. For banks, only
high rated banks are considered for placement of deposits.

Bank balances are held with reputed and creditworthy banking institutions.

Liquidity risk management

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability
of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors
rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity
management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching
the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest
and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

52. 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.

53. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable
losses.

54. Approval of Financials Statements

The Financial Statements were approved for issue by the Board of Directors on 22^nd May 2025.

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

For CNK & Associates LLP Jagdish Prasad Gupta Vatsala Vasudeva

Chartered Accountants Chairman Managing Director

Firm Registration No.: 101961W/W-100036 DIN: 01952821 DIN: 07017455

Pareen Shah K. K. Bhatt Shalin Patel

Partner CGM (Finance & CFO) Company Secretary

Membership No. 12501 1

Place : Vadodara Place : Gandhinagar

Date : 22^nd May 2025 Date : 22^nd May 2025