v Provisions, Contingent Liabilities and
Contingent Assets

The amount recognised 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.

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present
obligation that is not recognised because it is
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of amount cannot be made.

Contingent liabilities may arise from litigation,
taxation and other claims against the Company.
The contingent liabilities are disclosed where it
is management's assessment that the outcome
of any litigation and other claims against the
Company is uncertain or cannot be reliably
quantified, unless the likelihood of an adverse
outcome is remote.

Contingent assets are not recognised but
are disclosed in the notes where an inflow of
economic benefits is probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each reporting date.

A contingent liability recognised in a
business combination is initially measured

at its fair value. Subsequently, it is
remeasured as per provisions of Ind AS 103.

w Impairment of non-financial assets

The Company assesses, at each reporting date
whether there is any indication that assets may
be impaired. If any such indication exists, the
Company estimates the asset's recoverable
amount. An asset's recoverable amount is the
higher of an asset's or cash-generating unit
("CGU") is fair value less costs to disposal and
its value in use.

In assessing value in use, the estimated future
cash flows are discounted to their present
values using a pre-tax discount rate that
reflects current market assessment of the
time value of money and the risks specific to
the asset. In determining fair value less cost of
disposal, recent market transactions are taken
into account. If no such transactions can be
identified, an appropriate valuation model is
used. These calculations are corroborated by
valuation multiples, quoted share prices for
publicly traded companies or other available
fair value indicators.

The Company enters into transaction with
suppliers that involves prepayment in
conjunction with advances for goods and
services wherein the Company assesses at
each reporting date whether goods against
the advance is recoverable and if there is any
indication, the asset may be provided.

Goodwill is tested for impairment annually as
at March 31 and when circumstances indicate
that the carrying value may be impaired.

Impairment is determined for goodwill by
assessing the recoverable amount of each CGU
(or group of CGUs) to which the goodwill relates.

The Company bases its impairment calculation
on detailed budget and forecast calculations,
which are prepared separately for each of
the Company's cash-generating unit to which
the individual assets are allocated. For longer
periods, a long-term growth rate is calculated
and applied to project future cash flows.
To estimate cash flow projections beyond
periods covered by the most recent budget /

forecasts, the Company estimates cash flow
projections based on estimated growth rate.

If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less
than its carrying amount, the carrying amount
of the asset (or cash-generating unit) is reduced
to its recoverable amount. An impairment loss
is recognised immediately in the statement of
profit and loss.

x Mine Development Expenditure

i) Expenditure incurred towards coal mines
under construction are capitalised to
'Coal Mines under construction' as long as
they meet the capitalisation criteria and
is presented as capital work-in-progress.
Upon commencement of production stage,
the 'Coal Mines under construction' is
capitalised and presented as 'Mining Rights'
under Intangible Assets except in situation
when the Company decide to surrender its
rights in mine and amount is classified as
recoverable from Nominated Authorities.

ii) Mining Rights are amortised using unit-of-
production method on the basis of proven
and probable reserves on commencement
of commercial production.

Mine Closure Obligations

The liability for meeting the mine closure has
been estimated based on the mine closure plan
in the proportion of total area exploited to the
total area of the mine as a whole. These costs
are updated annually during the life of the mine
to reflect the developments in mining activities.
The mine closure obligations are included in
Mining Rights under Intangible assets and
amortised based on unit of production method.

y Amended standards adopted by the Company

The accounting policies adopted in the
preparation of the financial statements
are consistent with those followed in the
preparation of the Company's annual financial
statements for the year ended March 31, 2024,
except for amendments to the existing Indian
Accounting Standards (Ind AS). The Company
has not early adopted any other standard,

interpretation or amendment that has been
issued but is not yet effective.

The Ministry of Corporate Affairs notified
new standards or amendment to existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.

The Company applied following amendments
for the first-time during the current year which
are effective from April 1, 2024:

i) Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive
standard that prescribe, recognition,
measurement and disclosure requirements,
to avoid diversities in practice for
accounting insurance contracts and
it applies to all companies i.e., to all
"insurance contracts" regardless of the
issuer. However, Ind AS 117 is not applicable
to the entities which are insurance
companies registered with IRDAI.

Additionally, amendments have been made
to Ind AS 101, First-time Adoption of Indian
Accounting Standards, Ind AS 103, Business
Combinations, Ind AS 105, Non-current
Assets Held for Sale and Discontinued
Operations, Ind AS 107, Financial Instruments:
Disclosures, Ind AS 109, Financial
Instruments and Ind AS 115, Revenue from
Contracts with Customers to align them with
Ind AS 117. The amendments also introduce
enhanced disclosure requirements,
particularly in Ind AS 107, to provide clarity
regarding financial instruments associated
with insurance contracts.

ii) Amendments to Ind AS 116 -Lease liability
in a sale and leaseback

The amendments require an entity to
recognise lease liability including variable
lease payments which are not linked to
index or a rate in a way it does not result
into gain on Right-of-use asset it retains.

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 Financial Statements.

3 Significant accounting judgements,
estimates and assumptions

The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities.
The estimates and assumptions are based on
historical experience and other factors including
expectations of future events that are considered
to be relevant. The estimates and underlying
assumptions are continually evaluated and any
revisions thereto are recognised in the period of
revision and future periods if the revision affects
both the current and future periods. Uncertainties
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected
in future periods.

Key Sources of estimation uncertainty :

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing
a material adjustment to the carrying amounts
of assets and liabilities within the next financial
year are described below. Existing circumstances
and assumptions about future developments may
change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions
when they occur.

i) Useful lives of Property, Plant and Equipment

In case of the power plant equipment, where
the life of the assets has been estimated at 25
or 40 years based on technical assessment,
taking into account the estimated usage of the
asset and the current operating condition of
the asset, depreciation on the same is provided
based on the useful life of each component
based on technical assessment, if materially
different from that of the main asset.

ii) Fair value measurement of financial
instruments

In estimating the fair value of financial assets
and financial liabilities, the Company uses

market observable data to the extent available.
Where such Level 1 inputs are not available,
the Company establishes appropriate valuation
techniques and inputs to the model. The inputs
to these models are taken from observable
markets where possible, but where this is not
feasible, a degree of judgement is required in
establishing fair values. Judgements include
considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in
assumptions about these factors could affect
the reported fair value of financial instruments.
Information about the valuation techniques
and inputs used in determining the fair
value of various assets and liabilities are
disclosed in note 55.

iii) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan
and the present value of the gratuity obligation
are determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, a defined benefit obligation
is highly sensitive to changes in these
assumptions. All assumptions are reviewed
at each reporting date. Information about
the various estimates and assumptions made
in determining the present value of defined
benefit obligations are disclosed in note 59.

iv) Impairment of non financial assets

For determining whether Property, Plant and
Equipment, intangible asset and goodwill
are impaired, it requires an estimation of the
value in use of the relevant cash generating
units. The value in use calculation is based
on a Discounted Cash Flow model over the
estimated useful life of the Power Plants.
Further, the cash flow projections are based on
estimates and assumptions relating to tariff,
change in law claims, operational performance
of the Plants, life extension plans, market prices
of coal and other fuels, exchange variations,
inflation, terminal value etc. which are

considered reasonable by the Management.
(Refer note 50).

v) Impairment of Investments made / Loans given
to subsidiaries

In case of investments made and loans
given by the Company to its subsidiaries,
the Management assesses whether there is
any indication of impairment in the value of
investments and loans. The carrying amount
is compared with the present value of future
net cash flow of the subsidiaries based on its
business model or estimates is made of the
fair value of the identified assets held by the
subsidiaries, as applicable.

vi) Taxes

Significant management judgement is required
to determine the amount of deferred tax assets
that can be recognised, based upon the likely
timing and the level of future taxable profits
together with future tax planning strategies,
including estimates of temporary differences
reversing on account of available benefits under
the Income Tax Act, 1961. (Also refer note 26).

Deferred tax assets are recognised for unused
tax losses to the extent that it is probable that
taxable profit will be available against which the
losses can be utilised. Significant management
judgement is required to determine the amount
of deferred tax assets that can be recognised,
based upon the likely timing and the level of
future taxable profits together with future tax
planning strategies.

vii) Income / Revenue

Revenue from Operations on account of Force
Majeure / Change in Law events or Interest
Income on account of carrying cost in terms of
Power Purchase Agreements / Supplemental
Power Purchase Agreements with various
State Power Distribution Utilities is accounted
for / recognised by the Company based on best
management estimates following principles
of prudence, as per the orders / reports of
Regulatory Authorities, the Hon'ble Supreme
Court of India ("Hon'ble Supreme Court”) and the
outstanding receivables thereof in the books of
account have been adjusted / may be subject

to adjustments on account of consequential
orders of the respective Regulatory Authorities,
the Hon'ble Supreme Court and final closure
of the matters with the respective Discoms.
(Refer note 34 and 35).

In certain cases, the Company has claimed
compensation from the Discoms based on
management's interpretation of the regulatory
orders and various technical parameters
including provisional methodology for coal cost
recovery, which are subject to final verification
and confirmation by the respective Discoms,
and hence, in these cases, the revenues have
been recognised during various financial
years / periods, on a prudent basis with
conservative attributable parameters in the
books. The necessary true-up adjustments
for revenue claims (including carrying cost /
delayed payment surcharge) are made in the
books on final acknowledgement / regulatory
orders / settlement of matters with respective
Discoms or eventual recovery of the claims,
whichever is earlier.

In case of Udupi TPP, Revenue from sale of power
and other income is recognised upon judgement
by the management for recoverability of the
claims based on the relevant contractual terms
/ provisional tariff rates as provided by the
regulator / governing tariff regulations, to the
extent applicable, having regard to mechanism
provided in applicable tariff regulations and
the bilateral arrangement with the customers,
which may be subject to adjustments in
future years, on receipt of final orders of the
respective Regulatory Authorities or final
closure of the matter with the customers.
(Refer note 34 and 35).

viii) Classification of Trade Receivables

In cases of circumstances / matters where there
are pending litigations on regulatory matters
/ change in law claims, the classification of
disputed / undisputed trade receivables is
a matter of judgement based on facts and
circumstances. The Company has evaluated
the fact pattern and circumstances including
ongoing discussions with the Discoms for
each such regulatory matter pending to be
adjudicated by the relevant authority.

In cases, where rule of law and principles
of economic restitution have already been
established by APTEL / Supreme Court in
similar matters, the revenues are recognised
on prudent and conservative technical
parameters, significant amounts have been
recovered already and the management does
not perceive any downside risks in future
on final adjudication by Supreme Court and
settlement of matter with Discoms, the related
receivables are classified as undisputed.

In cases, where discussions with Discoms have
not made reasonable progress and matters are
sub-judice, the related receivables are classified
as disputed, even though the management is
reasonably confident of recovering the dues in
full, backed by the regulatory orders in favour
of the Company.

ix) Mega Power Status

One of the thermal power plant has availed
exemption of customs / excise duty in
pursuance to terms of the provisional mega
power policy as notified by the Government
of India. The Company has not recognised for
the reduction in cost to property, plant and
equipment as a grant, pending compliance
of terms of Mega Power Status which
needs to be attained within 156 months, i.e.
September, 2022, from the date of import of

plant and equipment as per approval by the
Ministry of Power ("MoP"), Government of
India vide amendment dated April 07, 2022.
Ministry of Power vide its letter dt. December 19,
2024, has granted proportional Final Mega
Power Certificate to the extent of 71% of the
installed capacity which is tied up under long
term Power Purchase Agreements. For the
balance untied installed capacity of 29%, the
Management is confident to receive the
extension to comply with the conditions for
balance capacity.

x) Applicability of Appendix D - Service
Concession Arrangements of Ind AS 115
Revenue from contracts with customers

The Company has entered into PPAs with
various state DISCOMs for supplying power
for a period upto 25 years from its thermal
power plants (TPP). These TPPs have been
set up on Build-Own-Operate basis with no
transfer of assets at the end of the term of
PPA. The management is of the view that PPA
does not cover the entire life of these power
plants. Further, the DISCOMs does not control
any significant residual interest and does not
restrict the Company's practical ability to
sell or pledge these assets. Accordingly, the
management is of the view that Appendix D to
Ind AS 115 is not applicable to the Company.

4.1 Property, Plant and Equipment and Capital Work-In-Progress (Refer Note 50) (Contd...)

Notes :

i) For charge created on aforesaid assets, Refer note 22 and 28.

ii) I n case of Mundra thermal power plant ("Mundra TPP") and Godda thermal power plant ("Godda TPP"), the Company has
availed tax and duty benefit in the nature of exemptions from Custom Duty, Excise Duty, Service Tax, VAT and CST on its
project procurements. The said benefits were availed by virtue of SEZ approval granted to the Power Plant of Mundra in
December 2006 and Jharkhand in September 2019, in terms of the provisions of the Special Economic Zones Act, 2005
(hereinafter referred to as the 'SEZ Act') and the Special Economic Zone Rules, 2006 which entitled the Power Plant to procure
goods and services without payment of taxes and duties as referred above.

The Company in respect of Tiroda thermal power plants ("Tiroda TPP"), Kawai thermal power plants ("Kawai TPP") and Godda
thermal power plant ("Godda TPP") have availed tax and duty benefit in the nature of exemptions from Custom Duty and
Excise Duty on its project procurements. The said benefits were availed by virtue of power plants being designated as Mega
Power Project in accordance with the policy guidelines issued in this regard by the Ministry of Power, Government of India
which entitled Tiroda TPP, Kawai TPP and Godda TPP to procure goods and services without payment of taxes and duties as
referred above.

Since, the procurement of goods and services during the project period were done by availing the exemption from payment
of aforesaid taxes and duties, the amount capitalised for these power plants as on the capitalisation date, is cost of property,
plant and equipment (PPE) net off tax and duty benefit availed. However, on transition to IND AS w.e.f. April 01, 2015, in
compliance with Ind AS 20 - "Government Grant”, the value of PPE of Mundra TPP, Kawai TPP, Tiroda TPP and Godda TPP have
been grossed up by the amount of tax and duty benefit / credit availed after considering such benefits as government grant.
The amount of said government grant (net off accumulated depreciation) as on the transition date has been added to the value
of PPE with corresponding credit made to the deferred government grant. The amount of grant is amortised over useful life of
PPE along with depreciation on PPE. The amount of deferred liability is amortised over the useful life of the PPE with credit to
statement of profit and loss classified under the head "Other Income”.

The Company has Government grant balance (net of amortisation) of ' 6,098.91 crore till March 31, 2025 (Previous year
' 6,499.22 crore).

iii) Cost of Property Plant and Equipment includes carrying value recognised as deemed cost as of April 01, 2015, measured as per
previous GAAP and cost of subsequent additions.

iv) In case of acquisition of Adani Dahanu Thermal Power Station ("ADTPS"), the cost of the assets acquired have been allocated
to the individual identifiable assets on the basis of their relative fair values on the date of acquisition.

v) Break up of Capital Work-in-Progress is as below :

Notes:

i) The capital assets in the nature of Railway Siding for Raigarh TPP forming part of Capital Work-In¬
Progress have become overdue compared to the original completion plan. The Company is in the
process of acquiring additional land for completing the asset under development. The Management
expects to acquire additional land from the government authorities and has already obtained in
principle approval from railway authorities for the said project. Post acquisition of the additional
land, the management will update the estimate and assumption of the original completion plan of
the assets. Further, given that demand of power is expected to be higher compared with generation
capacity available in the industry, the development of asset forming part of Capital Work-In¬
Progress will have economic viability for the Company. During the previous year, the company had
paid advance of ' 37.60 crore year to CSIDC for allotment of land. Further, during the current year,
the company has obtained final approval of South East Central Railways to carry out development
activities for the siding project and started development activities.

ii) The capital assets in the nature of Mining Project forms part of Capital Work-In-Progress have
become overdue compared to the original completion plan. The Company is in the process of
obtaining mandatory clearances from various regulatory authorities for completing the asset
under development. Post obtaining clearances, the management will update the estimate and
assumption of the original completion plan of the assets.

iii) The Company does not have any project temporarily suspended as at March 31, 2025 and as at
March 31, 2024.

Notes :

i) During the year, the Company has invested ' 46.00 crore (Previous year - ' 800.00 crore) in equity
shares of Mahan Energy Limited (MEL). Of the above shares 45,74,70,000 Equity shares (Previous year -
40,85,10,000 Equity shares) have been pledged by the Company as additional security for secured term
loans availed by MEL.

ii) During the year, the Company has been allotted 50,00,000 equity shares of ' 10 each amounting to ' 5
crore by Mirzapur Thermal Energy U.P. Private Limited ("MTEUPL'), a subsidiary of Adani Infra (India) Limited,
on preferential basis resulting in a 99.80 % equity stake in MTEUPL. Further, the company has acquired
remaining equity stake i.e., 10,000 equity shares of ' 10 each amounting to ' 0.01 crore in MTEUPL from
Adani Infra (India) Limited and MTEUPL became wholly owned subsidiary of the Company w.e.f July 23,
2024. Additionally, the Company has invested in 34,08,10,000 equity shares of ' 10 each amounting to
' 340.81 crore.

iii) During the year, the Company has invested ' 246.00 crore (Previous Year ' 118.70 crore) into OCDs of its
subsidiary MEL. These OCDs shall be optionally converted into equity share capital at fair value at the
discretion of issuer or will be redeemed in full on completion of 10 years and 20 years respectively from the
date of allotment. The fair value as at March 31, 2025 is ' 246.39 crore (Previous year ' 54.31 crore).

iv) During the year, the Company has invested ' 3.45 crore (Previous year ' 6.35 crore) into OCDs of its wholly
owned subsidiary Chandenvalle Infra Park Limited for the purpose of acquiring land on lease. These OCDs
shall be optionally converted into equity shares in the ratio of 1 : 1 or will be redeemed at the discretion of
issuer at any time within 10 years from the date of issue.

viii) Adani Power Global Pte Ltd and Adani Power Middle East Ltd have been incorporated as Wholly Owned
Subsidiaries of the Company on June 14, 2024 and August 16, 2024 respectively.

ix) Investments at FVTOCI reflect investment in unquoted equity instruments. These equity shares are
designated as FVTOCI as they are not held for trading purpose, thus disclosing their fair value change in
profit and loss will not reflect the purpose of holding.

x) Investment in Unsecured Perpetual Securities ("Securities”), which are perpetual in nature with no maturity
or redemption and are callable only at the option of the issuer. The distribution on these Securities are
cumulative at 9% p.a. and at the discretion of the issuer. As these securities are perpetual in nature, ranked
senior only to the Equity Share Capital of the issuer and the issuer does not have any redemption obligation,
these are considered to be in the nature of equity instruments.

xi) On June 07, 2022, the Company had acquired 100% equity shares of Innovant Buildwell Private Limited
(Formerly known as Eternus Real Estate Private Limited) ("IBPL') for a consideration of ' 329.30 crore and
it also settled the liability of ' 320.70 crore respectively towards the existing debt of IBPL. Hence, IBPL
became wholly owned subsidiary of the Company w.e.f. June 07, 2022. IBPL hold land parcel at Navi Mumbai.
Further, transaction cost of ' 63.34 crore was added to investment in IBPL. During the previous year, the
Company has disposed off its investment in IBPL. Also refer note 34(vii).

xii) The Company, having effective operational control over operations of MPGL, has accounted for the same
as a subsidiary under Ind AS 110 w.e.f August 30, 2024 and residual stake of 51% has been reflected as
non-controlling interest. There was no change in fair value of Investment in equity instrument of Associate
Company on account of change in control.

xiii) During the year, the Company has invested ' 1 crore in equity shares of Korba Power Limited (KPL). Of the
above shares 5,10,000 Equity shares have been pledged by the Company as additional security for secured
term loans availed by KPL.

xiv) During the year, the Company has been allotted 8,00,00,000 equity shares of ' 10 each at ' 24.90 per
equity share (as per valuation report received from a registered valuer) by Anuppur Thermal Energy (MP)
Private Limited ("ATEMPL'), a subsidiary of Adani Infra (India) Limited, on preferential basis resulting in a
94.40 % equity stake in ATEMPL. Consequent to the allotment of equity shares, ATEMPL has become a

subsidiary of the Company. Subsequently, the Company has acquired remaining equity stake in ATEMPL
from Adani Infra (India) Limited and ATEMPL became wholly owned subsidiary of the Company with effect
from October 03, 2024. ATEMPL is engaged in infrastructure development activities and is yet to commence
commercial activities.

xv) The Company has acquired 100% equity shares of Orissa Thermal Energy Limited ("OTEL') (formerly known
as Padmaprabhu Commodity Trading Private Limited) for a consideration of ' 0.01 crore on September 27,
2024. OTEL holds land parcel at Cuttack, Orissa which Company proposes to develop for Infrastructure
facilities / capacity augmentation of the Company.

xvi) The Company has investment in OCDs of its wholly owned subsidiaries, Alcedo Infra Park Limited. These
OCDs shall be optionally converted into equity shares in the ratio of 1 : 1 or will be redeemed at the discretion
of issuer at any time within 10 years from the date of issue.

Notes:

i) For charges created on Trade Receivables, Refer note 22 and 28.

ii) Credit concentration

As at March 31, 2025, out of the total trade receivables 95.52% (Previous year - 96.46%) pertains to dues
from State Electricity Distribution Companies and Bangladesh Power Development Board ("BPDB")) under
contractual agreement through Power Purchase Agreements ("PPAs”) / Supplemental Power Purchase
Agreement (SPPAs), claims under Force Majeure / Change in Law matters / Contractual Right, Carrying Cost
thereof etc (including significant amount pertaining to dues from BPDB), 4.28% (Previous year - 3.54%)
from related parties (refer note 67) and remaining receivables from others. Also refer note 3(viii) relating to
significant accounting judgements, estimates and assumptions for income / revenue recognition.

iii) Expected Credit Loss (ECL)

The Company is having majority of receivables against power supply from State Electricity Distribution
Companies ("Discoms") which are Government undertakings and also includes dues from Bangladesh
Power Development Board (BPDB) under contractual agreement through Power Purchase Agreements
("PPAs”).

The Company is regularly receiving its normal power sale dues from Discom and BPDB. In case of regulatory
revenue claims, the same is recognised on conservative basis based on best management estimates following
principles of prudence, as per the binding regulatory orders. In case of delayed payments apart from carrying
cost on settlement of claims, the Company is entitled to receive interest as per the terms of PPAs / SPPAs.
Hence they are secured from credit losses in the future.

Receivables are secured by letter of credit amounting to ' 3,777.84 crore (Previous year ' 3,732.24 crore).
The Company holds sovereign guarantee from BPDB for the entire receivables under Power purchase
agreement.

iv) Also refer note 34 for disclosures related to revenue and note 53 for ageing of receivables.

v) The fair value of Trade receivables are approximately the carrying value presented (Refer note 55).

* For transaction with related parties, Refer note 67

Nature and purpose of reserves :

i) Capital Reserve is not a free reserve and can not be utilised for distribution of dividend.

Capital Reserve includes :

(a) Amount of ' 359.80 crore created due to amalgamation of Growmore Trade and Investment Private
Limited with the Company in the financial year 2012-13. As per the order of the Hon'ble High Court of
Gujarat, the capital reserve created on amalgamation shall be treated as free reserve of the Company.

(b) Amount of ' 1,029.60 crore created on account of acquisition of Raipur TPP and Raigarh TPP during
the financial year 2019-20. (including ' 344.49 crore pertaining to equity component of 0.01% CRPS).

ii) Securities premium represents the premium received on issue of shares over and above the face
value of equity shares. The reserve is available for utilisation in accordance with the provisions of the
Companies Act, 2013.

iii) General reserve of ' 9.04 crore was created in the FY 2015-16 due to merger of solar power undertaking
acquired from Adani Enterprises Limited, as per the scheme of arrangement approved by order of the Hon'ble
High Court of Gujarat.

iv) Deemed equity contribution represents the difference between the fair value of financial instruments and
consideration paid / payable as promoters' contribution.

v) During the current financial year, the Company has called up the uncalled amount of NCRPS and subsequently
redeemed the same in full. The difference between the equity component and consideration thereof is
recognised in deemed equity.

vi) The cash flow hedge reserve represents the cumulative gains or losses arising on changes in fair value of
designated effective portion of hedging instruments entered into for cash flow hedges. The same will be
reclassified to profit or loss only when the hedge transactions affects the profit or loss.

vii) Retained earnings represent the amount that can be distributed as dividend considering the requirements
of the Companies Act, 2013. During the current financial year, no dividends are distributed to the owners
by the Company.

22 Non-current Borrowings (Contd...)

Notes:

1. The security details for the borrowing balances:

a. Security Details as at March 31, 2025

i) Rupee Term Loans from Banks aggregating to ' 12,540.00 crore and Rupee Term Loans from
Financial Institutions aggregating to ' 6,175.00 crore are secured by first mortgage, deed of
hypothecation and charge on the identified leasehold and freehold project land (as applicable)
at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and
Solar Bitta plant, immovable and movable assets, both present and future assets of the Company,
operating cash flows including book debts, receivables, permitted investments, advances,
intangible assets etc. except "investments in equity share capital, unsecured loans, quasi equity
etc., Godda TPP and certain non-project land", on paripassu basis with the lenders of the Company.

Term loans from lenders carried annual weighted average interest rate of 8.85% p.a. and are
repayable over a period of next 13 years in quarterly installments from Financial Year 2025-26 to
Financial Year 2037-38.

Security creation as per master facility agreement dated March 22, 2024 has been completed
during the Financial Year 2024-25, which was in process during Financial Year 2023-24.

ii) I n case of Godda TPP, Borrowings from Financial Institutions aggregating to ' 7,374.56 crore
are secured by first charge on all present and future immovable, movable assets of the Godda
TPP. Further, these borrowings are secured by DSRA bank guarantees issued on the limits of the
subsidiary. It carried annual weighted average interest rate of 11.50% p.a. and are repayable over
a period of next 14 years in monthly installments from Financial Year 2025-26 to Financial Year
2038-39. Further during the year, Godda TPP has repaid trade credits from Bank aggregating to
' 1,139.30 crore against which ' 853.02 crore has been disbursed by Rural Electrical Corporation
Limited (REC) and Power Finance Corporation Limited (PFC) out of their letter of comfort.

b. Security Details as at March 31, 2024

i) Rupee Term Loans from Banks aggregating to ' 13,200.00 crore and Rupee Term Loans from
Financial Institutions aggregating to ' 6,500.00 crore are secured by first mortgage, deed of
hypothecation and charge on the identified leasehold and freehold project land (as applicable)
at Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP and Solar Bitta plant,
immovable and movable assets, both present and future assets of the Company, operating cash
flows including book debts, receivables, permitted investments, advances, intangible assets
etc. except "investments in equity share capital, unsecured loans, quasi equity etc. and certain
non-project land", on paripassu basis with the lenders of the Company.

Term loan from banks in terms of master facility agreement carried annual weighted average
interest rate based on respective lenders benchmark rate applicable spread, equivalent to 9.54%
p.a. and are repayable over a period of next 14 years in quarterly installments from Financial Year
2024-25 to Financial Year 2037-38.

Consequent to the enhancement in the credit rating of the Company to AA-, which followed the
amalgamation of its six subsidiaries with the Company, the Company has consolidated the term
loan facilities into a single long-term Rupee term loan facility of ' 19,700 crore under a consortium
financing arrangement with lead banker, State Bank of India.

ii) In case of Godda TPP, Borrowings from Financial Institutions aggregating to ' 7,080.66 crore are
secured by first charge on all present and future immovable, movable assets of the Godda TPP.

a. During the financial year 2021-22, the erstwhile wholly owned subsidiary of the Company, Adani Power
(Mundra) Limited (now amalgamated with the Company), had issued 5,00,00,000 nos. of upto 5%
Non-cumulative Compulsory Redeemable Preference shares ("NCRPS'') of ' 100 each amounting to ' 500
crore and had called ' 60 per share amounting to '300 crore. On account of amalgamation, the Company
cancelled the NCRPS and issued fresh NCRPS on the same terms during the financial year 2022-23.
During the current financial year balance amount of ' 40 per share amounting to ' 200 crore was
called and aggregate called up amount of ' 100 per share amounting to ' 500 crore was fully redeemed
during current financial year 2024-25. The discounted value at March 31, 2025 is ' Nil (Previous year -
' 66.88 crore).

b. During the financial year 2019-20, the erstwhile wholly owned subsidiary of the Company, Raipur
Energen Limited (now amalgamated with the Company), had issued 4,15,86,207 nos. of 0.01%
Compulsory Redeemable Preference shares (CRPS) of ' 100 each amounting to ' 415.86 crore
which are redeemable in 3 equal annual instalments from FY 2036-37 to FY 2038-39. On account of
amalgamation, the Company cancelled the CRPS and issued fresh CRPS during financial year 2022-23.
Considering CRPS as compound financial instrument, these are accounted for as liability at fair value
of ' 71.37 crore and other equity (under capital reserve) of ' 344.49 crore on initial recognition.
Interest on liability component is accounted for as interest expense, using the effective interest
method. The discounted value at March 31, 2025 is ' 129.37 crore (Previous year ' 117.61 crore).

3. The amount disclosed in security details in note 1 above and repayment schedule in note 2 above are gross
amount excluding adjustments towards upfront fees.

Notes :

a. Security Details as at March 31, 2025

i) Working Capital Demand Loans, Trade Credits, Cash Credits and Customers' Bills Discounted provided
by Banks (Working Capital Facilities) aggregating to ' 6,710.95 crore are secured by first mortgage,
deed of hypothecation and charge on the identified leasehold and freehold project land at Mundra
TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP, Dahanu TPP and Solar Bitta plant,
immovable and movable assets, both present and future assets of the Company, operating cash flows
including book debts, receivables, permitted investments, advances, intangible assets etc. except
"investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non¬
project land", on paripassu basis with the lenders of the Company. It carried annual weighted average
interest rate of 5.90% p.a.

ii) In case of Godda TPP, Secured trade credits, Working Capital Demand Loan and Cash Credit aggregating
of ' 2,026.21 crore are secured by first mortgage and charge on the identified immovable, movable and
leasehold land, both present and future assets of the project on paripassu basis with other secured
lenders. It carried annual weighted average interest rate of 8.36% p.a.

b. Security Details as at March 31, 2024

i) Working Capital Demand Loans, Trade Credits, Cash Credits and Customers' Bills Discounted provided
by Banks (Working Capital Facilities) aggregating to ' 5,775.06 crore are secured by first mortgage,
deed of hypothecation and charge on the identified leasehold and freehold project land at Godda
TPP, Mundra TPP, Tiroda TPP, Kawai TPP, Udupi TPP, Raipur TPP, Raigarh TPP and Solar Bitta plant,
immovable and movable assets, both present and future assets of the Company, operating cash flows
including book debts, receivables, permitted investments, advances, intangible assets etc. except
"investments in equity share capital, unsecured loans, quasi equity etc., Godda TPP and certain non¬
project land", on paripassu basis with the lenders of the Company. It carried annual weighted average
interest rate of 6.27% p.a.

28 Current Borrowings (Contd...)

ii) In case of Godda TPP, Secured trade credits, Working Capital Demand Loan and Cash Credit aggregating
of ' 621.89 crore are secured by first mortgage and charge on the identified immovable, movable and
leasehold land, both present and future assets of the project on paripassu basis with other secured
lenders. It carried annual weighted average interest rate of 8.62% p.a.

c. Working Capital Demand Loans, Cash Credits and Trade Credits are repayable on demand / on their
respective due dates.

d. The Company has sanctioned borrowings / facilities from banks on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks and financial institutions
are in agreement with the books of accounts.

Notes:

(i) In respect of Tiroda TPP

(a) In the matter of non-availability of coal due to cancellation of Lohara coal block for the Company's 800
MW power generation capacity at Tiroda thermal power plant ("Tiroda TPP”), the Hon'ble Supreme Court
vide its order dated April 20, 2023, upheld the orders of Maharashtra Electricity Regulatory Commission
("MERC”) dated September 06, 2019 and APTEL order dated October 05, 2020, granting compensation
(including carrying costs thereon) towards additional coal cost for the use of alternative coal.

(b) Similarly, in a matter relating to shortfall in availability of domestic coal under New Coal Distribution
Policy ("NCDP”) and Scheme of Harnessing and Allocating Koyala (Coal) Transparently in India ("SHAKTI”)
policy of the government, for the Company's 2500 MW power generation capacity at Tiroda TPP, Hon'ble
Supreme Court vide its orders dated March 03, 2023 and April 20, 2023, upheld the MERC's orders
dated March 07, 2018 and February 07, 2019, and the APTELs orders dated September 14, 2020 and
September 28, 2020 respectively granting compensation (including carrying costs thereon) towards
additional coal cost for the use of alternative coal.

(c) Based on the various regulatory orders in respect of matters stated in (a) and (b) above, the Company
has continued to recognise tariff compensation claims towards additional coal cost of ' 3,786.20
crore and carrying cost of ' Nil (including ' 366.26 crore pertaining to earlier years) during the year
ended March 31, 2025 and additional coal cost of ' 4,282.15 crore and carrying cost of ' 190.49 crore
(includes tariff compensation claims of ' 290.19 crore (net of credit of ' 115.72 crore) and carrying cost
of ' 190.49 crore pertaining to earlier years) during the year ended March 31, 2024.

Further, during the year ended March 31, 2025, the Company has also accounted late / delayed payment
surcharge ("LPS”) of ' 367.90 crore (Previous year ' 5,870.81 crore) from Maharashtra State Electricity
Distribution Company Limited ("MSEDCL'), under other income, based on Company's policy relating to
recognition of late / delayed payment surcharge on acknowledgement or receipt, whichever is earlier.

(d) Apart from above, in one of the matters relating to cost factor for computation of tariff compensatory
claim, on account of consumption of alternate coal, based on the claim amount billed by the Company,
MSEDCL filed an appeal with APTEL although the Company has favorable tariff compensation order
from MERC dated September 11,2021 in the matter. APTEL vide its order dated July 09, 2024 dismissed
the appeal filed by MSEDCL. Subsequently, MSEDCL filed an appeal with Hon'ble Supreme Court in the
matter which is pending adjudication. Further, during the year ended March 31, 2024, MSEDCL has also
filed a petition with MERC w.r.t. the interpretation of its earlier order relating to compensation for in¬
land transportation cost factor for transfer of domestic coal.

Currently, the Company has continued to recognise the compensation claim on best estimate basis
pending settlement of petition and does not expect any adverse outcome in the matter.

34 Revenue from Operations (Contd...)

ii) In case of PPAs governed by section 62 of Electricity Act, 2003, the Company recognises revenue from sale
of power based on the most recent tariff order / provisional tariff approved by the respective Regulatory
Commission, as modified by the orders of Appellate Tribunal for Electricity ('APTEL!') / Regulatory commissions
and necessary provisions / adjustment considered on conservative basis. This revenue is recognized having
regard to mechanism provided in applicable tariff regulations and the bilateral arrangements with the
Discoms. Such tariff orders are subject to conclusion of final tariff orders in terms of Multiyear Tariff ("MYT”)
Regulations at the end of respective tariff period.

iii) In respect of Kawai TPP

In the matter relating to shortfall in availability of domestic linkage coal, the Hon'ble Supreme Court vide its
order dated August 31, 2020 has admitted all tariff compensation claims for additional coal costs incurred
for power generation and the Company continues to realise the claim amount towards compensation.
During the previous year, Rajasthan Urja Vikas and IT Services Limited ("RUVITL') (formerly known as Rajasthan
Urja Vikas Nigam Limited) has filed a fresh petition before Rajasthan Electricity Regulatory Commission
("RERC”) primarily challenging the methodology and operating parameters considered while arriving at the
tariff compensation claim for additional coal cost incurred for power generation by the Company which
had earlier been settled by RUVITL in March, 2022 based on Hon'ble Supreme Court order dated August
31, 2020. The RERC vide its order dated September 01, 2023 dismissed the petition of RUVITL. RUVITL has
now preferred an appeal with APTEL against the ruling of RERC. The Company continues to recognise the
revenue based on the principle as approved in the order passed by the Hon'ble Supreme court.

iv) In respect of Mundra TPP

(a) The Company and Gujarat Urja Vikas Nigam Limited ("GUVNL') had entered into an additional
Supplemental Power Purchase Agreements ("SPPAs”) dated March 30, 2022 to resolve all pending
matter / dispute relating to Bid 1 and Bid 2 Power Purchase Agreement ("PPA / SPPA”), towards supply of
2434 MW of power and thereby approached CERC to determine the base energy tariff rates for power
sales under Bid 1 & Bid 2 SPPAs, with retrospective effect from October 15, 2018, for further submission
to the Government of Gujarat ("GoG”). CERC vide its order dated June 13, 2022 recommended the
base energy tariff rates for final approval of GoG which is still pending as on reporting date. CERC
order allows the Company and GUVNL to mutually agree on adoption of six monthly or monthly CERC
escalation index to apply over base energy tariff rate as on October 2018 as per the provisions of earlier
SPPA dated December 05, 2018 having impact on determination of subsequent period energy rates.

(b) Pending approval of the base energy tariff rate by GoG and also the mutual agreement between
the Company and GUVNL as regards adoption of monthly / six-monthly CERC escalation index, the
Company has been supplying power to GUVNL based on certain mechanism whereby actual fuel cost
incurred gets pass through in the billing of energy charges, from March 01, 2022 onwards till date
as per understanding with GUVNL for the purpose of additional Supplemental PPA dated March 30,
2022. The Company also realised significant amounts of invoices billed to GUVNL, although there are
certain deductions made by GUVNL which are pending reconciliation / settlement. During the previous
year, the Company received communication from GUVNL seeking refund of ' 1,172.69 crore towards
energy charges on account of adjustment of coal cost in respect of power supplied during October 15,
2018 to March 31, 2023, which was adjusted in the books as a matter of caution, though disputed by
company with GUVNL.

The Company continues to recognise energy charges revenue as per amount billed based on actual
fuel costs since the date of SPPA, pending approval of base energy tariff and agreement between the
Company and GUVNL regarding adoption of method of CERC escalation index, which has impact on the
Company's energy charges claims, depending on the trend of coal price movement. The escalation index
has positive impact on energy charges as at reporting date but Company continues to invoice energy
charges on actual fuel cost basis. The Company does not expect any adverse outcome in this matter.

34 Revenue from Operations (Contd...)

(c) In respect of the matter relating to shortfall in availability of domestic coal under Fuel Supply Agreement
("FSAs”) with Coal India Limited's subsidiaries for supply of power against 1424 MW of PPA from
Mundra TPP (reduced to 1200 MW PPA pursuant to the SPPAs dated February 28, 2023) with Haryana
Discoms, the Hon'ble Supreme Court vide its order dated April 20, 2023 upheld the APTELs orders dated
November 3, 2020 and June 30, 2021, allowing the tariff compensation claims (including carrying cost
thereon) relating to NCDP and SHAKTI policy, respectively.

Pursuant to the said orders, the Company has recognised additional tariff compensation claims of
' 393.23 crore (including carrying cost of ' 135.55 crore) during the previous year, including pertaining
to earlier period on account of realisation of certain additional claims from Haryana Discoms after
initial estimation of claims made by the Company during the year ended March 31, 2023.

Further, during the previous year, the Company has also recognised income towards delayed payment
interest of ' 961.89 crore (including ' 941.85 crore pertaining to earlier period) as other income based
on realisation of such amount from Haryana Discoms based on Company's policy relating to recognition
of late / delayed payment surcharge.

(d) The Company has claimed compensation for alternate coal cost incurred for supply of power under
1,200 MW of Supplemental Power Purchase Agreement (SPPA) with Haryana Discoms. The Haryana
Discoms have sought certain information to validate such claims. Pending final resolution of the matter,
Haryana Discoms continue to pay 50% of the claims made by the Company from June 2023 till date.
The Company expects a favorable outcome in the matter and has accordingly recognised revenues of
' 891.04 crore during the year, on best estimate basis, which has been fully realised.

v) Revenue from operations and other income (including amounts disclosed separately elsewhere in other notes)
includes following amounts pertaining to earlier years, based on the orders received from various regulatory
authorities such as MERC / CERC, APTEL, the Hon'ble Supreme Court and reconciliation with Discoms relating
to various claims towards change in law events, carrying cost thereon and delayed payment interest.

vi) For regulatory claims / change in law claims, the management recognises income on conservative parameters,
since the same are under litigation / pending final settlement with Discoms. The differential adjustments
on account of such claims are recognised on resolution of the litigation / final settlement of matter with
Discoms, including carrying cost / late payment surcharge.

vii) During the previous year, the Company had disposed off its investments in the subsidiaries, lnnovant Buildwell
Private Limited ("IBPL”) (formerly known as Eternus Real Estate Private Limited) (acquired on June 07, 2022)
and Aviceda Infra Park Limited ("AIPL'(incorporated on September 05, 2022), by execution of Share Purchase
Agreements with AdaniConnex Private Limited for an aggregate consideration of ' 536.22 crore. The net
income on such sale of investments amounting to ' 143.50 crore is accounted as other operating revenue.

viii) Godda Thermal Power Plant (”Godda TPP”), is having a long-term Power purchase agreement (PPA) with
Bangladesh Power Development Board ("BPDB”) for supply of power from its 1600 MW thermal power station.
Since inception of the said PPA, Godda TPP has been supplying power and raising monthly invoice in
compliance with PPA and Godda TPP has been receiving payments on a regular basis. The management of
the Company is confident of recovering the overdue receivables and late payment surcharge as on reporting
date, from BPDB.

ix) For transaction with related parties, Refer note 67.

43 Amalgamation of Adam Power (Jharkhand) Limited ("APJL'), (wholly owned subsidiary
company ("WOS")) with the Company:

The Ahmedabad Bench of the National Company Law Tribunal ("NCLT”) vide its order dated April 04, 2025,
have approved the Scheme of Amalgamation (the "Scheme”) of wholly owned subsidiary of the Company, Adani
Power (Jharkhand) Limited with the Company with an appointed date of April 01, 2024, under section 230 to
232 and other applicable provisions of the Companies Act, 2013 read with the rules framed thereunder. The said
Scheme has became effective from April 25, 2025 on compliance of all the conditions precedent mentioned
therein. Consequently, above mentioned wholly owned subsidiary of the Company got amalgamated with the
Company w.e.f. April 01, 2024. Since the amalgamated entity is under common control, the accounting of the
said amalgamation has been done applying Pooling of interest method as prescribed in Appendix C of Ind AS
103 'Business Combinations' w.e.f the first day of the earliest period presented i.e. April 01, 2023. While applying
Pooling of Interest method, the Company has recorded all assets, liabilities and reserves attributable to the
wholly owned subsidiary company at their carrying value as appearing in the consolidated financial statements
of the Company immediately prior to the amalgamation as per guidance given in ITFG Bulletin 9.

The previous year figures of Balance Sheet, Statement of Profit and Loss (including Other Comprehensive
Income), Statement of changes in equity and Statement of Cash Flows have been restated considering that the
amalgamation has taken place from the first day of the earliest period presented i.e., April 01, 2023 as required
under Appendix C of Ind AS 103. Below is the summary of restatement of previous year figures:

Notes:

1) (a) In Case of Raipur TPP, The Ministry of Power, Government of India vide letter dated September

8, 2011 had granted Provisional Mega Power Status Certificate under the Mega Power
Policy for construction of its 1,370 MW Thermal based Power Plant. In terms of the same,
the Company has availed exemptions of duty of customs and excise duty upon submission
of bank guarantees worth ' 960.01 crore and pledge of margin money deposits of ' 59.67
crore. The grant of final Mega power status of Raipur TPP is dependent upon plant achieving
tie up under long term Power Purchase Agreements (PPAs) in accordance with Ministry of
Power's Office Memorandum dated January 20, 2014 and April 7, 2022 within stipulated time
of September 12, 2024. During the current year, the company has entered into PPA of 800
MW with MPSEZ Utilities Limited. The Company had submitted application to the Ministry of
Power for release of proportionate Mega power benefits in accordance with the Mechanism
for Operationalization of the release of proportionate Bank Guarantees / FDRs for Provisional
Mega Power Projects issued by Ministry of Power vide its Office Memorandum dated March
1, 2018. Ministry of Power vide its letter dated December 19, 2024, has granted proportional
Final Mega Power Certificate to the extent of 71% of the installed capacity which is tied up
under long term Power Purchase Agreements. Basis the representation made by Industry, the
Management is confident to receive the extension to comply with the conditions for balance
untied capacity. The management continues to disclose the proportionate amount of ' 247.98
crore as contingent liability.

(b) I n case of Raipur TPP, the Company had entered into a bulk power transmission agreement
('BPTA') with Power Grid Corporation of India Limited ('PGCIL) dated March 31, 2010 as per
which the Company was granted Long term Access ('LTA') of 816 MW. However, owing to non¬
availability of PPA, which as per management is beyond the control of the Company, Raipur
TPP was not in a position to utilise the LTA and has accordingly sought for surrender of the
LTA, for which PGCIL has raised demand of ' 154.50 crore towards relinquishment charges on
the Company. However, the said claim will be subject to the outcome of the petition dated
September 07, 2020 filed by the Company before the APTEL. Presently, the Company has
taken legal opinion in the matter as per which there are force majure events and other factors
as per which it is not liable to pay charges.

44 Contingent Liabilities and Commitments (to the extent not provided for) : (Contd...)

2) The custom duty matter amounting to ' 248.10 crore and ' 3.60 crore at Udupi TPP and Tiroda TPP
respectively, pertaining to Coal Classification matter which is being contested at Customs, Excise
and Service Tax Appellate Tribunal ("CESTAT") pertaining to period March 2012 to February 2013.

3) The Central Sale Tax matter of Company's Mundra TPP relating to FY 2017-18, is contested at
Commissioner Appeals.

4) The Goods and Services Tax matters pertaining to short reversal of GST Input Tax Credit/short
payment of GST, of Company's Mundra TPP and Raipur TPP relating to FY 2017-18 and Raigarh TPP
relating to FY 2022-23, are contested at Appellate tax authority, and matter of Company's Raipur
TPP relating to FY 2020-21 is contested at Jurisdictional tax authority.

5) I n case of Godda TPP, Water resource department ("WRD"), Jharkhand has charged penalty on
the amount of penalty on water charges which has not been accepted by the Company as per the
terms of agreement and the matter is under discussion with WRD to reconsider the demand.

ii) In case of Mundra TPP, apart from above, the Development Commissioner, Mundra has issued a show
cause notice to the Company in case of Mundra TPP for the period FY 2009-10 to FY 2014-15 in
relation to custom duty on raw materials used for generation of electricity supplied from SEZ to DTA,
which amounts to ' 963.94 crore. The Company has contested the said show cause notice. Further, the
management is of the view that such duties on raw material are eligible to be made good to Mundra
TPP under the PPA with Discoms or are refundable from the Authorities. Hence, the Company has not
considered this as contingent liabilities.

iii) The Company has assessed that it is only possible, but not probable, that outflow of economic resources
will be required in respect of above matters.

Capital commitment mainly includes open purchase order of ' 22,964.96 crore (net of capital advances)
pertaining to Phase II expansion project at Raipur TPP, Raigarh TPP and Kawai TPP.

Other Commitment:

The Company has given a commitment to lenders of Mahan Energen Limited (MEL) that it will not transfer
its 49% equity holding in MEL outside the Adani Power Group, except with the prior approval of lenders.

45 Leases

The Company has lease contracts for land, Building and computer hardware used in its operations. Leases of these
items have lease terms between 2 to 99 years. The Company is restricted from assigning and subleasing certain
leased assets. The Company's obligation under its leases are secured by the lessor's title to the right-of-use assets.

The weighted average incremental borrowing rate applied to lease liabilities are in range of 8.50% to 9.00%.
(Previous year 8.50% to 9.00%)

47 The Company had sought cancellation of the Jitpur coal block and requested the Nominated Authority, Ministry
of Coal, New Delhi, to cancel the Vesting Order, vide its representation dated October 31, 2020 and had also
requested to authority for refund of the costs of ' 138.66 crore incurred by it and for release of the performance
bank guarantee of ' 92.90 crore given to the Nominated Authority. The Nominated Authority vide its letter dated
September 17, 2021, had accepted the surrender petition by the Company. The Nominated Authority concluded
the fresh e-auction of Jitpur Coal Block on September 13, 2022. Pursuant to this, the Coal Mines Development
and Production Agreement ("CMDPA”) has been signed between the new bidder and the Nominated Authority,
Ministry of Coal on October 13, 2022.

The Nominated Authority, has issued the Final Compensation Order dated November 13, 2024 and the Company
is in process of submitting the required documents with the Nominated Authority, for final settlement and
closure of the matter.

48 The Company through erstwhile subsidiary, Raipur Energen Limited ("REL') had incurred cost of ' 55.57 crore
and ' 30.75 crore towards development of Talabira Coal mine and Ganeshpura Coal mine, respectively in
the earlier years.

In the above matter, earlier the Company had filed two writ petitions with Hon'ble Delhi High Court requesting
surrender of the said mines in view of Union of India's ("UoI”) notification dated April 16, 2015 stating capping
of the fixed / capacity charges and also requested to refund the costs incurred along with the release of bid
security. The Hon'ble Delhi High Court vide its single order dated April 15, 2019 dismissed the petitions on the
ground of delay in filling of writ petitions. Consequently, the Company filed petitions before Hon'ble Supreme
Court to set aside the order of the Hon'ble Delhi High Court. Pending adjudication of the petitions, Hon'ble
Supreme Court directed UoI and others vide its order dated May 30, 2019 that no coercive action to be taken
in these matters.

The management expects favourable resolution of these matters and is reasonably confident to realise the
entire cost spent towards these coal mines as compensation in the subsequent periods.

However, the matter has been pending for long period of time, the company based on prudence principles has
fully provided the amount in the books for the purpose of financial reporting.

49 The National Green Tribunal ("NGT") in a matter relating to non-compliance of environmental norms relating to
Udupi thermal power plant ("Udupi TPP”) directed the Company vide its order dated March 14, 2019, to make
payment of ' 5.00 crore as an interim environmental compensation to Central Pollution Control Board ("CPCB").

NGT vide its order dated May 31, 2022 directed the Company to deposit an additional amount of ' 47.02 crore.
The Company has recognised expense provision in the books on a conservative basis, although, the Company has
filed an appeal with the Hon'ble Supreme Court dated August 26, 2022 against the above referred NGT order.
The Udupi TPP continues to operate in compliance with all the conditions under Environment Clearance as at
March 31, 2025.

50 (a) In respect of Mundra TPP, the management believes that on account of resolution of majority of the issues

relating to tariff compensation claim with GUVNL and Haryana Discoms and also on account of execution of
360 MW PPA with MPSEZ Utilities Limited ("MUL'), and certain other factors, Mundra TPP of the Company
would continue to establish profitable operations over a foreseeable future and meet its performance and
financial obligations. During the previous year, the Company has resumed supply of power to Haryana
Discom and consequently has improved its operational performance in terms of achieving Higher Plant load
factor (PLF) and generating positive operating cashflows, hence, based on the assessment of value in use
of Mundra TPP, no provision / adjustment is considered necessary to the carrying value of its Mundra TPP
related property, plant and equipment aggregating to ' 14,260.35 crore as at March 31, 2025.

(b) On March 31, 2025, the Company has determined the recoverable amounts of all its thermal power plants
over their useful lives based on the Cash Generating Units ("CGUs”) identified, as required under Indian
Accounting Standards ("Ind AS”) 36 "Impairment of Assets”, based on the estimates relating to tariff, demand
for power, operational performance of the plants, life extension plans, market prices of coal and other fuels,
exchange variations, inflation, terminal value, climate change impact, etc. which are considered reasonable
by the Management. On a careful evaluation of the aforesaid factors, the Management of the Company has
concluded that the recoverable value of all the thermal power plants is higher than their carrying amounts
including goodwill assigned to each CGU.

On a careful evaluation of the aforesaid factors, the Management of the Company has concluded that the
recoverable value of such CGUs individually is higher than their respective carrying amounts as at March 31,
2025. However, if these estimates and assumptions were to change in future, there could be corresponding
impact on the recoverable amounts of the Plants.

51 The Company has taken various derivatives to hedge its risks associated with foreign currency fluctuations on
items including principal loan amount, Trade Credits etc. and interest thereof along with interest rate changes.
The outstanding position of derivative instruments is as under :

52 Financial Risk Management Objective and Policies :

The Company's risk management activities are subject to the management direction and control under the
framework of Risk Management Policy as approved by the Board of Directors of the Company. The Management
ensures appropriate risk governance framework for the Company through appropriate policies and procedures
and the risks are identified, measured and managed in accordance with the Company's policies and risk objectives.
All derivative activities for risk management purposes are carried out by specialist teams that have appropriate
skills, experience and supervision. It is the company policy that no trading in derivatives for speculative purposes
may be undertaken.

The Company's financial liabilities (other than derivatives) comprises mainly of borrowings including interest
accrual, leases, trade, capital and other payables. The Company's financial assets (other than derivatives) comprise
mainly of investments, cash and cash equivalents, other balances with banks, loans, trade and other receivables.

In the ordinary course of business, the Company is exposed to Market risk, Credit risk and Liquidity risk.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises four types of risk: interest rate risk, currency risk,
commodity risk and equity price risk.

a) Interest rate risk

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 part of Company's debt obligations with floating interest rates.

The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate
loans and borrowings. Significant portion of Company's borrowing is in INR (?) and are borrowed at
fluctuating interest rate.

The sensitivity analysis have been carried out based on the exposure to interest rates for instruments
not hedged against interest rate fluctuation at the end of the reporting period. The said analysis has
been carried out on the amount of floating rate liabilities outstanding at the end of the reporting period.
The year end balances are not necessarily representative of the average debt outstanding during the
year. A 50 basis point increase or decrease represents management's assessment of the reasonably
possible change in interest rates.

b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities (trade receivables) and
borrowings in the form of Trade Credits. The Company manages its foreign currency risk by hedging
transactions that are expected to realise in future. The Company also enters into various foreign
exchange hedging contracts such as forward covers, swaps, options etc. to mitigate the risk arising
out of foreign exchange rate movement on foreign currency borrowings and trade payables (including
capital creditors).

Every one percentage point depreciation / appreciation in the exchange rate between the Indian rupee
and U.S. dollar on the unhedged exposure of $ 53.50 million as on March 31, 2025 and $ 73.44 million
as on March 31, 2024 would have affected the Company's profit or loss for the year as follows:

c) Commodity price risk

The Company's exposure to commodity price is affected by a number of factors including the effect
of regulations, the price volatility of coal prices in the market, including imported coal, contract size
and length, market condition etc. which is moderated by optimising the procurement under fuel supply
agreement and getting compensated under long term power purchase agreements and change in law
regulations. In case, the company anticipates non-availability of coal, the same is mitigated by sourcing
imported coal in advance to meet the demand. Its operating / trading activities require the on-going
purchase for continuous supply of coal and other commodities. Therefore the Company monitors its
purchases closely to optimise the procurement cost.

52 Financial Risk Management Objective and Policies : (Contd...)

d) Equity Price risk

The Company does not have equity price risk except to the extent impairment of investment.

(ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss.

a) Trade Receivables

The Company is having majority of receivables from State Electricity Boards which are Government
undertakings and have interest clause on delayed payments and hence, they are secured from credit
losses in the future. Receivables are secured by letter of credit amounting to ' 3,777.84 crore (Previous
year ' 3,732.24 crore). Further, the Company holds sovereign guarantee from BPDB for the entire
receivables under Power purchase agreement.

b) Financial Guarantee

The Company has issued financial guarantees to banks on behalf of and in respect of loan facilities
availed by its subsidiaries. In accordance with the policy of the Company, the Company has recognised
these financial guarantees as liability at fair value (Refer note 24 and 31). Outstanding loans in the
subsidiary against the financial guarantee contracts given by the Company as at March 31, 2025 is
' 950 crore (Previous year ' Nil).

c) Other Financial Assets

This comprises of deposit with banks, loans, investments in mutual funds, derivative assets and other
receivables. The company limits its exposure to credit risks arising from these financial assets and there
is no collateral held against these because counter parties are group companies, banks and recognised
financial institutions. Banks and recognised financial institutions have high credit ratings assigned by
credit rating agencies.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities.

The Company monitors its liquidity requirement using cash flow forecasting models. These models consider
the maturity of its financial investments, committed funding and projected cash flows from operations. The
Company's objective is to provide financial resources to meet its business objectives in a timely, cost effective
and reliable manner and to manage its capital structure. A balance between continuity of funding and
flexibility is maintained through internal accruals as well as adequately adjusting the working capital cycle.
Having regard to the nature of the business wherein the Company is able to generate regular cash flows
over a period of time, any surplus cash generated, over and above the amount required for working capital
management and other operational requirements, is retained as cash and cash equivalents (to the extent
required) and any excess is invested in highly liquid mutual funds with appropriate maturities to optimise
the cash returns on investments while ensuring sufficient liquidity to meet its liabilities; or lent to group
entities (within Adani Power Limited) at market determined interest rate.

Read with note 54, the Company expects to generate positive cash flows from operations in order to meet
its external financial liabilities as they fall due and also consistently monitors funding options available in
the debt and capital market with a view to maintain financial flexibility.

53 Contract balances and Trade Receivables Ageing (Contd...)

i) The above ageing has been calculated based on due date as per terms of agreement. In case where
due date is not provided, date of transaction is considered.

ii) Trade receivable includes certain balances which are under reconciliation / settlement with
Discoms for payment / closure.

iii) In respect of the Company's 40 MW solar power plant at Bitta, in the matter of alleged excess energy
injected in terms of the PPA, GUVNL has withheld ' 72.10 crore against power supply dues during
the year ended March 31, 2022. Gujarat Electricity Regulatory Commission ("GERC”) vide its order
dated November 03, 2022 directed GUVNL to make payment of the amount withheld within three
months from the date of order along with late payment surcharge as per PPA. However, GUVNL has
filed an appeal with APTEL against the said order of GERC and the matter is pending adjudication.
The Company, as per interim order of APTEL dated February 28, 2023, has received ' 51.75 crore
being 75% of the withheld amount subject to outcome of appeal with APTEL. The management,
based on GERC order, expects favorable outcome in the matter.

iv) In respect of receivable from GUVNL against Mundra TPP, refer note 34(iv)(b).

v) Also refer note 3(viii).

54 Capital management :

The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating
and healthy capital ratios in order to support its business and provide adequate return to shareholders through
continuing growth. The Company's overall strategy remains unchanged from previous year.

The Company sets the amount of capital required on the basis of annual business and long-term operating plans
which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, unsecured perpetual securities, internal fund
generation and other long term borrowings (including consolidation of borrowings). The Company monitors
capital and long term debt on the basis of debt to equity ratio.

The debt equity ratio is as follows :

Notes:

(i) Debt is defined as Non-current borrowings (including current maturities) and lease liabilities.

(ii) Capital is defined as Equity share capital, Instruments entirely equity in nature and other equity including
reserves and surplus.

The Company believes that it will able to meet all its current liabilities and interest obligations in timely manner.
The Company's capital management ensure that it meets financial covenants attached to the interest
bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial
covenants would permit the bank to levy penal interest and immediately call all borrowings as per terms
of sanction. There have been no breaches in the financial covenants of any interest bearing loans and
borrowings in the current year. No changes were made in the objectives, policies or processes for managing
capital by the Company during the year ended March 31, 2025 and March 31, 2024.

(Figures below ' 50,000 are denominated with *)

The fair value of the financial assets and financial liabilities included in the level 2 categories above have
been determined in accordance with generally accepted pricing models based on a discounted cash flow
analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
The most frequently applied valuation techniques include forward pricing and swap models, using present
value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign
exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the
respective currencies, interest rate curves and forward rates curves of the underlying derivative.

The fair values of investments in mutual fund / Alternative Investment Fund units is based on the net
asset value ('NAV').

There have been no transfers between Level 1 and Level 2 during the year ended March 31, 2025 and March 31, 2024

63 During the financial year 2019-20, the erstwhile wholly owned subsidiary of the Company, Raipur Energen
Limited (now amalgamated with the Company), had issued 4,15,86,207 nos. of 0.01% Compulsory Redeemable
Preference shares (CRPS) of ' 100 each amounting to ' 415.86 crore which are redeemable in three equal
installments starting from FY 2036-37 to FY 2038-39. On account of amalgamation, the Company cancelled
the CRPS and issued fresh CRPS during financial year 2022-23. During the current year, dividend of ' 0.04
crore (Previous Year - ' 0.04 crore) has been paid. Further, the Board of Directors of the Company has proposed
dividend of ' 0.04 crore for the Financial Year 2024-25 which is subject to approval of the shareholders.

64 (a) During the current year, National Company Law Tribunal ("NCLT”) vide its order dated August 30, 2024,

approved the resolution plan submitted by the Consortium, of which the Company is a part, for acquisition
of Coastal Energen Private Limited ("CEPL”), a company undergoing Corporate Insolvency Resolution Process
("CIRP”) under the Insolvency and Bankruptcy Code. Further, the approved resolution plan also included the
amalgamation of CEPL with Moxie Power Generation Limited ("MPGL”), a Special Purpose Vehicle ("SPV”)
incorporated by the Consortium, in which the Company holds 49% equity stake. On fulfilment of conditions
precedent as per the NCLT order, the SPV has made upfront payment of ' 3,335.52 crore to the financial and
operational creditors and CEPL has been amalgamated with MPGL as per NCLT order w.e.f. August 31, 2024.

Further, upon appeal filled by the erstwhile director of CEPL, National Company Law Appellate Tribunal
("NCLAT’') vide its order dated September 06, 2024, had instructed that for the time being the status quo
to be maintained and resolution professional will continue to operate the plant. In response to the petition
filed by the Company against the said NCLAT order, the Hon'ble Supreme Court ("SC”) vide its order dated
September 12, 2024, had ordered that status quo as was operating when the NCLAT order was passed on
September 06, 2024 shall continue to remain in operation until the matter is disposed of by the NCLAT.

(b) During the current year, National Company Law Tribunal ("NCLT') vide its order dated August 21, 2024,
approved the resolution plan submitted by the Company for acquisition of Lanco Amarkantak Power Limited
("LAPL'), a company undergoing Corporate Insolvency Resolution Process ("CIRP”) under the Insolvency and
Bankruptcy Code. LAPL had capacity of 600 MW (2x300 MW) coal fired power plant and is also setting
up 1,320 MW (2x660 MW) coal fired power plant in the state of Chhattisgarh. LAPL has been acquired by
the Company w.e.f. September 6, 2024 on fulfillment of conditions precedent as per the NCLT order and
on infusion of agreed amount of equity share capital of ' 1 crore, along with upfront payment of ' 4,101.00
crore to its lenders. Subsequent to the acquisition, the name of LAPL has been changed to Korba Power
Limited ("KPL').

(c) During the current year, the resolution plan of the Company to acquire Vidarbha Industries Power Limited
("VIPL') through Insolvency and Bankruptcy Code has been approved by the Committee of Creditors ("CoC")
of VIPL. VIPL has capacity of 600 MW (2x300 MW) coal fired power plant in the state of Maharashtra.
Consequently, Resolution Professional appointed by National Company Law Tribunal ("NCLT") has issued a
Letter of Intent ("LOI”) dated February 24, 2025 in favour of the Company and in terms of such LOI, a bank
guarantee of ' 100 crore as performance security has been submitted.

The closure of the transaction shall be subject to the terms of LOI and necessary approvals and fulfilment
of conditions precedent under the Resolution Plan, which is pending approval from NCLT.

65 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). Further, No funds have
been received by the Company from any parties (Funding Parties) with the understanding that the Company shall
whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding
party or provide any guarantee, security or the like on behalf thereof.

66 In the financial year 2022-23, a short seller report ("SSR") was published in which certain allegations were made
on some of the Adani Group Companies, including Adani Power Limited ("the Company") and its subsidiaries.

During the financial year 2023-24, a) the Hon'ble Supreme Court of India ("SC") by its order dated January 03,
2024, disposed of all matters of appeal relating to the allegations in the SSR and in various petitions including
those relating to separate independent investigations and b) the SEBI concluded its investigations in twenty-two
of the twenty-four matters of investigations, and issued two Show Cause Notices (SCNs) to the Company alleging
non-compliance of provisions of the Listing Agreement and SEBI LODR Regulations pertaining to related party
transactions with regard to certain transactions with third parties in earlier financial years from a substance-over¬
form perspective which were not reported as a related party transactions in those financial years. The Company
is of the view that the alleged transactions were compliant with applicable regulations at the relevant time, and
has accordingly, made necessary submissions to SEBI in this regard.

During the current year, the SEBI has issued SCN(s), to the Company pertaining to allegations, of wrongful
categorisation of shareholding of certain entities with respect to SEBI public shareholding norms. The Company
made necessary submission to SEBI for resolution of the matter.

Further, based on the information available, the management believes that as of date all investigations by
SEBI have been concluded. In respect of above matters, the Adani group had undertaken independent legal &

70 Recent Pronouncements:

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 year ended March
31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable
to the Company.

71 The Company does not have any transaction to report against the following disclosure requirements as notified
by MCA pursuant to amendment to Schedule III:

1. Crypto Currency or Virtual Currency

2. Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

3. Registration of charges or satisfaction with Registrar of Companies

4. Related to Borrowing of Funds:

i. Wilful defaulter

ii. Utilisation of borrowed fund and share premium

iii. Discrepancy in utilisation of borrowings

iv. Discrepancy in information submitted towards borrowings obtained on the basis of security
of current assets

5. There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

72 In November 2024, the Company's management became aware of an indictment filed by United States Department
of Justice (US DOJ) and a civil complaint by Securities and Exchange Commission (US SEC) in the United States
District Court for the Eastern District of New York against a non-executive director of the Company. The director
is indicted on three counts namely (i) alleged securities fraud conspiracy (ii) alleged wire fraud conspiracy and
(iii) alleged securities fraud for making false and misleading statements and as per US SEC civil complaint,
director omitting material facts that rendered certain statements misleading to US investors under Securities
Act of 1933 and the Securities Act of 1934. The Company has not been named in these matters.

Having regard to the status of the above-mentioned matters, and the fact that the matters stated above do not
pertain to the Company, there is no impact to these audited financial statements.

73 The Company uses an 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 accounting software except the audit trail feature is enabled, for certain direct changes to SAP application
and its underlying HANA database when using certain privileged / administrative access rights where the process
is started during the year, stabilized and enabled from March 17, 2025. Further, there is no instance of audit trail
feature being tampered with in respect of the accounting software where such feature is enabled.

Additionally, the audit trail of relevant prior years has been preserved for record retention to the extent it
was enabled and recorded in those respective years by the Company as per the statutory requirements for
record retention.

74 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
Certain sections of the Code came into effect on May 03, 2023. However, the final rules/interpretation have
not yet been issued. Based on a preliminary assessment, the entity believes the impact of the change will not
be significant.

75 Based on review of commonly prevailing practices and to ensure better presentation, management has
regrouped and rearranged the previous year's figures to confirm to current year's classification. The management
believes that such reclassification does not have any material impact on the information presented in the
Financial Statements.

76 According to the management's evaluation of events subsequent to the balance sheet date, there were
no significant adjusting events that occurred other than those disclosed / given effect to, in these financial
statements as of April 30, 2025.

As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Adani Power Limited

Firm Registration No. : 324982E/E300003

per Navin Agrawal Gautam S. Adani Anil Sardana S. B. Khyalia

Partner Chairman Managing Director Chief Executive Officer

Membership No. 056102 DIN : 00006273 DIN : 00006867

Dilip Kumar Jha Deepak S Pandya

Chief Financial Officer Company Secretary

Membership No. F5002

Place : Ahmedabad Place : Ahmedabad

Date : April 30, 2025 Date : April 30, 2025