Notes;

- The Bank Over draft facility amounting to ' 592.93 crore (March 31, 2024 - ' 946.99 crore) relating to working capital
demand loan having rate of 7.75% to 10.00% p.a.

- The Unsecured borrowing amounting to ' 60.00 crore (March 31, 2024 - ' 15.97 crore) relating to working capital demand
loan having rate of 9.65 % p.a. repayable by May'25.

- Letter of Credits from Banks aggregating to ' 349.29 crore (as on March 31, 2024 ' Nil), having an interest rate range
7.55% to 7.90% p.a. will be repaid on due date basis.

- The Company has submitted all requisite filing on quarterly basis and there is no mismatch between these quarterly
submissions and books of accounts.

Contract assets :

Contract asset is the right to consideration in exchange for goods or services transferred to the customer.
Contract Assets are transferred to receivables when the rights become unconditional

Contract liabilities :

A Contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer, If the customer pays contribution before
the Company transfers goods or services to the customers, a contract liability is recognized when the payment
is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the
performance of obligation is satisfied.

(ii) No funds have been received by the Parent or its subsidiaries from any person(s) or entity(ies), including
foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, 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 provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries.

39. i) The Company through its wholly owned subsidiary, Adani Transmission Step-Two Limited (ATSTL) acquired a
100% stake in Adani Energy Solutions Mahan Limited (Formely known as Essar Transco Limited) after obtaining
requisite regulatory and other approvals for an enterprise value of ' 1,900.00 crore. The share acquisition
is pursuant to definitive agreements signed in June, 2022. The acquisition covers fully operational 400 kV,
673 ckt kms inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in
Chhattisgarh. The project operates under the Central Electricity Regulatory Commission (CERC) regulated
return framework and was commissioned on September 22, 2018.

ii) Company has executed share purchase agreement (SPA) with REC Power Development and Consultancy
Limited ("RECPDCL') for acquiring 100% equity shares of Khavda IVA Power Transmission Limited ("KPTL”)
which includes setting up of 596 ckm transmission line.

iii) During the year, the Company has signed share purchase agreement with PFC Consulting Limited and
acquired 100% shares of Navinal Transmission Limited (NTL), Jamnagar Transmission Limited ("JTL') and
Pune - III Transmission Ltd ("PTL”). NTLs project involves setting up of 515 ckm transmission line, JTLs project
involves setting up of 941 ckm transmission line, at the Jamnagar bus section and PTLs project include the
establishment Pune-III substations and setting up of 816 ckm transmission line.

iv) Company has signed share purchase agreement with REC Power Development & Consultancy Ltd (RECPDCL)
and acquired 100% shares of Rajasthan Part - I Power Transmission Limited under Tariff Based Competitive
Bidding (TBCB) mechanism. The project includes establishment of 6,000 MW HVDC (High Voltage Direct
Current) system between Bhadla to Fatehpur (~2400 ckm) along with 7500 MVA transmission capacity.
The project will help evacuate 6 GW renewable energy from various REZs in Rajasthan beyond Bhadla-III to
demand centers of North India and to the national grid.

v) Company has signed share purchase agreement with PFC Consulting Limited and acquired 100% shares of
Mundra I Transmission Limited. The project involves 150 Ckm of transmission line and upgrading the Navinal
(Mundra) electrical substation by adding two stage 765/400 kv transformers. Additionally, a 75 km long
765kV double-circuit line will be constructed to connect this substation to the Bhuj substation.

vi) Company has signed share purchase agreement with REC Power Development and Consultancy Limited
and acquired 100% shares of Mahan Transmission Limited (MTL) under the Tariff Based Competitive
Bidding (TBCB) mechanism. The The project includes establishment of 2,800 Mega Volt-Amperes (MVA) of
substations capacity and 740 circuit kilometers (ckm) of transmission line.

The company has entered Optical Fibre Lease Agreement with the Adani Transmission (India) Ltd for grant to "Indefeasible
Right of Use" of Dark fibres on lease to the company for the fixed period of 15 years from Mundra to Mohindergarh for approx.
1020 Kms and can be renew the agreement by mutual agreement. Further, company is liable to pay the O&M Fees for at the
rate of 3% per annum of each Link's IRU Fee on quarterly basis in advance.

The expenses relating to payments not included in the measurement of the lease liability and recognised as expenses in the
statement of profit and loss during the year is as follows : Low Value leases & Short-term leases : ' 0.04 crore ( PY - ' 0.01 crore)

41. Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been
formed by the Company. The funds are utilized on the activities which are specified in Schedule VII of the
Companies Act, 2013. The utilisation is done by way of contribution towards various activities.

(a) Gross amount as per the limits of Section 135 of the Companies Act, 2013 : ' 2.08 crore (Previous year : ' 0.56 crore)

(b) Amount spent and paid during the year ended March 31, 2025 : ' 2.09 crore (Previous year : ' 0.56 crore)

42. Segment Reporting

The Company prepares separate financial statements as well consolidated financial and hence segment reporting
as required under Ind AS 108 - 'Operating Segment' has been given in consolidated financial statements.
Hence, no separate disclosure of segment reporting is required.

43. As per Ind AS 19 “Employee Benefits", the disclosures are given below.

- The Company has a defined benefit gratuity plan (funded) and is governed by the Payment of Gratuity Act, 1972.
Under the Act, every employee who has completed at least five year of service is entitled to gratuity benefits on
departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with
Life Insurance Corporation of India (LIC) in form of a qualifying insurance policy for future payment of gratuity
to the employees.

- Each year, the management reviews the level of funding in the gratuity fund. Such review includes the asset
- liability matching strategy. The management decides its contribution based on the results of this review.
The management aims to keep annual contributions relatively stable at a level such that no plan deficits (based
on valuation performed) will arise.

(a) (i) Defined Benefit Plan

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees, which provides
a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment,
of an amount based on the respective employee's salary and the tenure of employment.

viii) . The Company has defined benefit plans for Gratuity to eligible employees, the contributions for which are

made to Life Insurance Corporation of India who invests the funds as per Insurance Regulatory Development
Authority guidelines.

ix) . Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase, attrition rate and mortality. The sensitivity analysis below have been determined based
on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding
all other assumptions constant. The results of sensitivity analysis is given below:

These plans typically expose the Company to actuarial risks such as below :

Interest Rate risk: The plan exposes the Company to the risk off all in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liabilty.

Demographic 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.

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.

x). Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which
the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company,
as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficient
funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the
duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement
in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability
without corresponding increase in the asset).

43. As per Ind AS 19 "Employee Benefits", the disclosures are given below. (Contd...)

xi). Effect of Plan on Entity's Future Cash Flows

a) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees of
the group. Every year, the insurance company carries out a funding valuation based on the latest employee
data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded
by the Company.

b) Expected Contribution during the next annual reporting period

The Company's best estimate of Contribution during the next year is 0.15 crore

c) Maturity Profile of Defined Benefit Obligation

Weighted average duration (based on discounted cash flows) - 18 years.

xii). The Company has defined benefit plans for Gratuity to eligible employees of the group, the contributions for
which are made to Life Insurance Corporation of India who invests the funds as per Insurance Regulatory
Development Authority guidelines.

The discount rate is based on the prevailing market yields of Government of India securities as at the balance
sheet date for the estimated term of the obligations.

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2024-25.

The actuarial liability for compensated absences (including Sick Leave) as at the year ended March 31, 2025 is
' 0.22 crore (March 31, 2024 is ' 0.16 crore).

(b) Defined Contribution Plan

(i) Provident fund

- Employer's contribution to Employees' State Insurance

The Company has recognised the following amounts as expense in the financial statements for the year:

45. Financial Instruments and Risk Overview (Contd...)

- In the ordinary course of business, the Company is mainly exposed to risks resulting from
exchange rate fluctuation (currency risk), interest rate movements (interest rate risk) collectively
referred as Market Risk, Credit Risk, Liquidity Risk and other price risks such as equity price risk.
The Company's senior management oversees the management of these risks. It manages its exposure
to these risks through derivative financial instruments by hedging transactions. It uses derivative
instruments such as Principal only Swaps and foreign currency forward contract to manage these
risks. These derivative instruments reduce the impact of both favorable and unfavorable fluctuations.
The Company's risk management activities are subject to the management, direction and control of Central
Treasury Team of the Group under the framework of Risk Management Policy for Currency and Interest
rate risk as approved by the Board of Directors of the Company. The Group's central treasury team ensures
appropriate financial risk governance framework for the Company through appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Group's policies and risk
objectives. It is the Group's policy that no trading in derivatives for speculative purposes may be undertaken.

- The decision of whether and when to execute derivative financial instruments along with its tenure can vary
from period to period depending on market conditions and the relative costs of the instruments. The tenure
is linked to the timing of the underlying exposure, with the connection between the two being regularly
monitored. The Company is exposed to losses in the event of non-performance by the counterparties to the
derivative contracts. All derivative contracts are executed with counterparties that, in our judgment, are
creditworthy. The outstanding derivatives are reviewed periodically to ensure that there is no inappropriate
concentration of outstanding to any particular counterparty. In current year, Company have no any foreign
borrowing exposure and hence no derivative contracts.

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

- 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 three types of risk: interest rate risk, foreign currency
risk and price risk.

1) Interest rate risk

The company is exposed to changes in market interest rates due to financing, investing and cash
management activities. 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 and period
of borrowings. The Company manages its interest rate risk by having a balanced portfolio of fixed and
variable rate loans and borrowings.

Interest rate sensitivity

The sensitivity analysis below have been determined based on the exposure to interest rates at the end
of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the
liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease represents management's assessment of the reasonably possible change
in interest rates. If interest rates had been 50 basis points higher / lower and all other variables were
held constant, the Company's profit before tax and consequential impact on Equity before tax for the
year ended March 31, 2025 would decrease / increase by ' 0.78 crore (P.Y. ' 0.60 crore). This is mainly
attributable to interest rates on variable rate borrowings.

Derivative Financial Instrument

- The Company uses derivatives instruments as part of its management of risks relating to exposure to
fluctuation in foreign currency exchange rates. The Company does not acquire derivative financial
instruments for trading or speculative purposes neither does it enter into complex derivative transactions
to manage the above risks. The derivative transactions are normally in the form of Forward Currency
Contracts to hedge its foreign currency risks and are subject to the Company's guidelines and policies.

- The fair values of all derivatives are separately recorded in the balance sheet within current and non
current assets and liabilities. Derivative that are designated as hedges are classified as current or non
current depending on the maturity of the derivative.

- The use of derivative can give rise to credit and market risk. The Company tries to control credit risk as
far as possible by only entering into contracts with stipulated / reputed banks and financial institutions.
The use of derivative instrument is subject to limits, authorities and regular monitoring by appropriate
levels of management. The limits, authorities and monitoring systems are periodically reviewed by
management and the Board. The market risk on derivative is mitigated by changes in the valuation of
underlying assets, liabilities or transactions, as derivatives are used only for risk management purpose.

- The Company enters into derivative financial instruments, forward currency contracts for hedging the
liabilities incurred/recorded and accounts for them as cash flow hedges and states them at fair value.
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow
hedge reserve, while any ineffective portion is recognised immediately in the statement of profit and
loss. Amounts recognised in OCI are transferred to profit or loss when the hedged transaction affects
profit or loss, such as when the hedged financial income or financial expense is recognised or when a
forecast sale occurs.

The fair value of the Company's derivative positions recorded under derivative financial assets and derivative

financial liabilities are as follows :

3) Commodity Price Risk

The Company is affected by the price volatility of Copper and Aluminum products. Continuous supply
of copper and aluminum are required for its under construction subsidiaries for construction of
transmission lines. Due to the significantly increased volatility of the price of the commodity, the
Company entered into various purchase contracts for Copper and Aluminum (for which there is
an active market). The prices in these purchase contracts are linked to the price of London Metal
Exchange (LME).

The Company has developed and enacted a risk management strategy regarding commodity price risk
and its mitigation. The forward contracts do not result in physical delivery of copper and aluminum
products but are designated as cash flow hedges to offset the effect of price changes in copper and
aluminum products. The Company hedges its expected copper and aluminum products purchases
considered to be highly probable.

4) Price risk

The Company invests its surplus funds in various mutual funds and fixed deposits. In order to manage
its price risk arising from investments, the Company diversifies its portfolio in accordance with the
limits set by the risk management policies. The Company has exposure across mutual fund and money
market instruments. Due to the very short tenure of money market instruments and the underlying
portfolio in liquid schemes, these do not pose any significant price risk.

45. Financial Instruments and Risk Overview (Contd...)

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a loss
to the company. The Company has adopted the policy of only dealing with creditworthy counterparties as a
means of mitigating the risk of financial losses from default, and generally does not obtain any collateral or
other security on trade receivables.

The Company measures the expected credit loss of trade receivable based on historical trend, industry
practices and the business environment in which the entity operates. Loss rates are based on actual credit
loss experience and past trends. Based on the historical data, loss on collection of receivable is not material
and hence no additional provision considered.

The carrying amount of financial assets recorded in the financial statements represents the Company's
maximum exposure to credit risk.

The Company has issued corporate guarantees to banks and financial institutions on behalf of and in respect
of loan / credit facilities availed by subsidiary companies. The value of corporate guarantee contracts
given by the Company as at March 31, 2025 is ' 10,498.60 crore (as at March 31, 2024'10,693.84 crore).
The value of financial guarantee contracts denotes outstanding amount of credit facilities availed by
subsidiary companies.

Liquidity risk

The Company monitors its risk of shortage of funds 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 the use of various types of borrowings.

The table below is analysis of derivative and non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.

- Above excludes carrying value of equity nature Investments in subsidiaries accounted at cost in accordance
with Ind AS 27.

- The management assessed that the fair value of cash and cash equivalents, other balance with banks,
investments, trade receivables, loans, trade payables, other financial assets and liability approximate their
carrying amount largely due to the short term maturities of these instruments.

- The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties. The following methods and assumptions
were used to estimate the fair values.

- The fair value of loans from banks and other financial liabilities, as well as other non-current financial
liabilities is estimated by discounting future cash flow using rates currently available for debt on similar
terms, credit risk and remaining maturities.

- The Company enters into derivative financial instruments with various counterparties, principally banks and
financial institutions with investment grade credit ratings. Foreign exchange forward contracts are valued
using valuation techniques, which employs the use of market observable inputs. 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 rate curves of the underlying currency. All derivative contracts are fully
collateralized, thereby, eliminating both counterparty and the company's own non-performance risk.

51. 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 by authorised
users where the process is started during the year and stabilized 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 has been preserved by the Company as per the statutory requirements for
record retention.

52. In accordance with the requirement of Ind AS 1 'Presentation of Financial Statements' and Division II - Ind AS
Schedule III to the Companies Act, 2013, the group has made better presentation for below items which does not
have any impact to net profits or on financial position presented in the financial statements.

53. During the financial year 2022-23, a short seller report ("SSR") was published alleging certain issues against
Adani group entities including the Company and its subsidiaries. On January 3, 2024, the Hon'ble Supreme Court
("SC") disposed off all matters of appeal in various petitions including separate independent investigations
relating to the allegation in SSR and stated that the Securities and Exchange Board of India ("SEBI") should
complete the investigation on balance two pending matters and take investigations to their logical conclusion
in accordance with law. During the current period, management believes that balance two investigations have
been concluded based on available information. The Company received a Show Cause Notice (SCN) from the
SEBI during the quarter ended March 2024 relating to validity of Peer Review Certificate (PRC) of one of
the former statutory auditor in respect of an earlier period which was duly responded by the management.
During the current year, a SCN has been received, alleging wrongful categorisation of shareholding pertaining
to period FY 2012-2020 of certain entities as public shareholding and consequences therefrom. However, it
does not have any bearing with the current free float and shareholding which fully complies with the applicable
laws and regulations.

Pursuant to the SC order, various legal and regulatory proceedings by the SEBI, legal opinions obtained,
independent legal & accounting review undertaken by the Adani group and the fact that there is no pending
regulatory or adjudicatory proceeding as of date except relating to SCNs as mentioned above, the management
of the Company concluded that there were no material consequences of the SSR and the Company continues to
hold good its position as regards the compliance of applicable laws and regulations.

54. In November 2024, the Company 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 by US DOJ for alleged securities & wire fraud conspiracy and securities fraud for misleading statements
and civil complaint by US SEC in respect of alleged omission of disclosure of material facts in certain statements.
The Company is not 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 financial statements.

55. Other Statutory Disclosures

(i) There is no transaction with struck off companies during the year.

(ii) The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to
the approval of financial statements to determine the necessity for recognition and/or reporting of any of these
events and transactions in the financial statements. As of April 24, 2024, there are no subsequent events to be
recognized or reported that are not already disclosed.

(iii) There are no proceedings initiated or pending against the company under section 24 of the Prohibition of Benami
Property Transactions Act, 1988 and rules made there under for holding any benami property.

(iv) The company has not been declared a wilful Defaulters by any bank or financial institution or consortium thereof
in accordance with the guidelines on wilful defaulters issued by the RBI.

(v) There is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutory period.

(vi) The company does not have any transaction not recorded in the books of accounts that has been surrendered or
not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

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

(viii) The company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the
Companies Act, 2013.

(ix) The company has not traded or invested in Crypto currency or Virtual Currency during the reporting periods.

(x) There is no immovable property in the books of the company whose title deed is not held in the name
of the company.

(xi) Term loans were applied for the purpose for which the loans were obtained.

(xii) The Financial Statements for the year ended March 31, 2025 have been reviewed by the Audit Committee and
approved by the Board of Directors at their meetings held on April 24, 2025.

As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants ADANI ENERGY SOLUTIONS LIMITED

Firm Registration no. 001076N/N500013 (Formerly Known as Adani Transmission Limited)

neeraj goel gautam s. adani anil sardana

Partner Chairman Managing Director

Membership No. 99514 DIN: 00006273 DIN: 00006867

KANDARP PATEL KUNJAL MEHTA

Chief Executive Officer Chief Financial Officer

jaladhishukla

Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date : April 24, 2025 Date : April 24, 2025