GE Vernova T&D India Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

a) The Company participates in the cash pool arrangement with effect from 06 December 2023 (LM Wind Power Blades (India) Pvt Ltd (upto 05 December 2023 the arrangement was with GE India Industrial Pvt Ltd) to borrow/invest short term funds based upon the requirement/ availability of working capital on daily basis, pursuant to the arrangement, the Company has invested the funds amounting to H 25,968.0 million (31 March 24: 6,165.0 million) at the stipulated rate of interest in the cash pool account. Outstanding balance of inter corporate deposit as at 31 March 25 is H 5783.4 (31 March 24: 1,428.1 million). As per the terms of the agreement the inter corporate deposit is repayable on demand and bears an interest in the range of @ 6.47% to 7.14% p.a. (31 March 24: 6.99% to 7.11% p.a.)

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of H 2/- per share fully paid up. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

(iv) No share issued for consideration other than cash during last 5 years.

(v) The Company has recommended a dividend @ H5 per share for the year ended March 31, 2025 subject to the approval of the shareholders of the Company at the ensuing Annual General Meeting (AGM) of the Company.

Nature and description of reserves:

Securities premium

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

General reserve

Free reserve to be utilised as per provisions of the Companies Act, 2013.

Cash Flow Hedge Reserve

This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit and loss only when the hedged transaction affects the profit or loss.

Deemed equity/ Capital reserve

Represents equity contribution by the ultimate holding company under employee stock option/RSU scheme by way of issuing ESOPs/RSUs to the employees of the Company.

17 (b). Capital management

(i) Risk management

The Company''s objectives when managing capital are to:

• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

• maintain an optimal capital structure to reduce the cost of capital.

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings (including interest accrued) net of cash and cash equivalents) divided by ''"''Total equity”” (as shown in the Balance Sheet).

(i) Information about other provisions and significant estimates

Warranty and other product related settlements - Warranty and other product related settlement costs are estimated on the basis of contractual agreement and after considering recent historical trends, costs of rectification, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts. Further, estimates, wherever required, are made on a best estimate basis.

Contract losses- Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the Statement of Profit and Loss. The timing of outflows is expected over the period specified in various contracts.

Litigations and related matters - Provision for litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.) and relating to property matters. The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

Provision towards site restoration - Provision for site restoration represents provision for site restoration as per Company''s policy and applicable requirements.

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts has been made in the books of account.

C. The Company participates in the cash pool arrangement with effect from 06 December 2023 LM Wind Power Blades (India) Pvt Ltd (GE India Industrial Pvt Ltd upto 05 December 2023) to borrow/invest short term funds based upon the requirement/ availability of working capital on daily basis. Pursuant to the arrangement, during the previous year, the Company had borrowed loan (from time to time) aggregating to H 10,693.4 million which was also repaid alongwith opening outstanding borrowing. Outstanding balance of loan borrowed as at 31 March 25 is H Nil.

D. Further, no funds have been received by the Company from any person or entity, including foreign entity ("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

c). Performance obligation

Information about the company''s performance obligations are summarised below:

Execution of long term contract for projects

a) Long term (Construction type) contracts- The long term contracts are ordinarily presumed to consist of combined obligations which are not distinct in the context of the contract (i.e., single performance obligation). This is highly attributed to the long-term construction-nature of the projects, whereby deliverables are typically highly interrelated and combined. The typical scope of long term contracts arrangements includes Engineering, manufacturing, shipment, delivery installation, testing, erection and commissioning and civil works. Although there are several components to the overall scope of the contract, the turnkey contracts are generally considered one performance obligation.

b) Products manufacturing and erection, commissioning and installation contracts- These contracts comprising of one performance obligations of supply of products and erection and commissioning thereof. When the manufacturing stage is complete, factory acceptance testing procedures are performed to ensure the equipment meets customer

specifications and may involve the customer physically observing the testing procedures. Revenue from contracts, where the performance obligations are satisfied over time and other consideration, is recognized as per the percentage of completion method. The Company uses the percentage of completion method based on the efforts or costs expended to the date as a proportion of the total efforts or costs to be expended.

c) The Company as part of its contracts, provides warranties of the equipment for defects arising out of poor workmanship, inferior material or manufacturing. Such warranty provided is in the nature of assurance warranty and is not accounted for as a separate performance obligation (also refer note:18).

d). Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2025 is in excess of H 126,575.0 million (31 March 2024: H 62,700 million).The conversion to revenue is highly dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer sites, changes/ variation in scope/ prices etc. In view of these, it is not practical to define the accurate percentage of conversion to revenue.

Nature of CSR activities Promoting Education and Health Care

The company has not entered into any project activities during the year.

*- In financial year 2021-22, the company has spent H 4.5 million against an CSR obligation of H 2.5 million as per Sec 135 of the Companies Act 2013, which has been set-off with the current year obligation.

**-The implementation agency has spent an amount of H 0.3 million for which the fund''s have been disbursed in April 2025 and accordingly its benefit will be claimed in next financial year.

32. Income tax expense

This note provides an analysis of the Company''s income tax expense, and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company''s tax positions.

(ii) Valuation technique used to determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining the fair value, the company has classified its financial instruments into the three levels prescribed under the Indian accounting standard.

The following methods and assumptions have been used to estimate the fair values:

- The Company enters into derivative financial instruments with banks. The valuation technique used to determine the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date, taking into account current interest rates and current exchange rates.

Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company''s audit committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

(A). Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

(ii) Provision for expected credit losses

a. Security deposit and other advances

With regards to security deposit and other advances H 308.2 million (31 March 2024: H 231.1 million), management believes the parties to which these deposits have been made have strong capacity to meet the obligations and risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided for. All the export benefits (included in other financial assets) are receivable from Government and therefore expected probability of default is negligible or nil.

b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable. At year end, the historical observed default and delay rates are updated and analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements, the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn working capital facilities) and cash and cash equivalents on the basis of expected cash flows.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

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 of interest rate risk and currency risk. Financial instruments affected by market risk includes deposits, derivative financial instruments, trade receivables, trade payables and other financial liabilities.

(i) Foreign currency risk

The Company''s policy is to hedge all material firm currency exposure at inception to the extent possible. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

(E) Hedge Accounting

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company. The Company has decided to apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered post April 01, 2023. Hedging strategies are decided and monitored periodically by Chief Financial Officer and Board of Directors of the Company.

Cash Flow Hedge

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in foreign currencies (refer below note), etc. These forecast transactions are highly probable. The foreign exchange forward contract balances vary with the level of expected foreign currency sales and purchases along with changes in foreign exchange forward rates.

(B) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed four years and one ninety days or more of service gets a gratuity on departure at 15 days salary (last drawn basic salary including dearness allowance (if any)) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

(C). Provident fund

i) Provident fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were H29.0 million (31 March 2024: H 25.9 million).

ii) Provident fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.

(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognised in the books in line with the principle of prudence.

e). Others

The Company is liable to fund any shortfall in its recognized Provident Fund trust "Alstom T&D India Limited Employee''s Provident Fund Trust” (the Trust), as it is a defined benefit plan. The Trust''s investments include H 199.8 million (both secured and unsecured) in bonds of IL&FS group of entities. There was a default of interest payment by these entities to the Trust during the previous year. Cumulative provision as of 31 March 2025 stands at H 199.8 million (31 March 2024 stands at H 237.7 million) towards expected shortfall in the Provident Fund Trust.

(D) Other information

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss:

(i) Employer''s Contribution to Superannuation Fund H 44.1 million (31 March 2024: H 45.3 million)

(ii) Employer''s Contribution to ESI H 0.4 million (31 March 2024: H 0.4 million)

36: Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company''s activities/business is reviewed regularly by the Company''s Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS - 108 ''Operating Segments''.

37. Share based payments

A) Employee share purchase plan (ESPP)

Under the globally designed employee share purchase plan (Plan), all the permanent employees of the Company get an opportunity to buy a stake in the General Electric Co, USA (Erstwhile ultimate holding Company). An employee can invest upto a maximum of 25% of their monthly salary (eligible for provident fund) in the shares of General Electric Co, USA. The Company makes a matching contribution of 15% on every purchase made by the employee. All share are bought at market price on the transaction date. The fair value of the share granted under the plan is determined on the basis of market value of the shares on the grant date. The plan has been stopped w.e.f December 2023.

B) Employees stock options

The employees are entitled to shares of GE Vernova Inc, USA, the ultimate holding company. Details of these plan is given below.

The ultimate holding company (GE Vernova Inc, USA) grant stock options, restricted stock units to employees under the 2007 Long-Term Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock options can be granted only to employees.

As restricted stock units (RSU''s) and stock options have been granted at the fair value of option on the grant date, therefore the Company measure and disclose the employee''s compensation expenses relating to restricted stock option units and stock options using the fair value.

The employees'' compensation expense for stock options and RSU''s during the year ended 31 March 2025 amounts to H 23.8 million (31 March 2024: H 20.4 million) as included under salaries and wages, treated as cash settled during the year. Further, the Ultimate Holding Company will raise charge to the Company for both stock options and RSUs at the time awards are exercised or lapsed by employees.

The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when the restrictions lapse over the vesting period.

39. Contingent liabilities	As at 31 March 2025	As at 31 March 2024
(a) Contingent liabilities (i) Demands relating to Sales tax matters and Goods and service tax Direct tax matters Custom, excise duty and service tax matters (ii) Claims against the Company not acknowledged as debts pertaining to legal cases
	2,963.2	2,615.7
	205.9	123.5
	1,380.8	1,382.4
	324.5	268.0

Notes:

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums / authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company has challenged these litigations with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognised these litigations under contingent liability as well.

4) Amount mentioned above excludes Excise/Service tax and Sales tax/ VAT liability of H 275.8 million and 51.8 million related to Service Tax/ Excise and Sales Tax/ VAT related matters respectively pertaining to pre-demerger of Distribution business from erstwhile Company called Areva T&D India Limited and therefore borne by the de-merged entity i.e. Schneider Electric as per approved de-merger agreement.

40. Capital and other commitments	As at 31 March 2025	As at 31 March 2024
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts	781.1	261.6
	781.1	261.6
The Company does not have any potential diluted equity shares and therefore Basic and Diluted EPS are the same.

41. Earnings/(loss) per share

The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstanding for purposes of basic earnings per share calculation are as follows:

43. Ministry of Corporate Affairs (MCA) vide its notification number G.S.R. 206(E) dated March 24, 2021 (amended from time to time) in reference to the proviso to Rule 3 (1) of the Companies (Accounts) Amendment Rules, 2021, introduced the requirement of only using such accounting software w.e.f April 01, 2023 which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Institute of Chartered Accounts of India ("ICAI”) issued an "Implementation guide on reporting on audit trail under rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (Revised 2024 edition)” in February 2024 relating to feature of recording audit trail.

The Company has identified relevant applications that record financial transactions, along with the primary SAP system to which the aforementioned provision and guidance apply for the year ended March 31, 2025 and which has a feature of recording audit trail (edit log) facility wherein:

- in respect of accounting software (SAP), the audit trail feature was enabled at the application level and operated for all relevant transactions recorded in such software.

- in respect of software operated by a third-party service provider, for maintaining payroll records, based on an independent auditor''s System and Organization controls report which covers the requirements of audit trail, has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

- in respect of software operated by a third-party service provider for maintaining employee database, though application has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software however testing of audit trails is not covered in an independent auditor''s System and Organisation Controls report

SAP, as primary accounting software, is a highly integrated application and inherently logged all changes made to the books of account transactions and has a feature of recording audit trail of each and every transaction at the application level except that audit trail was not enabled at the database level to log any direct data changes.

Only authorized personnel have access to the underlying database for the purpose of system support after obtaining explicit permission from the Company. The Company has enabled sufficient logs at the database level which captures objects edited along-with timing and personnel identity. Any data changes would undergo inherent checks that are built onto application and any impermissible changes at the database level creates multiple errors like operational failure, corrupting of tables etc. and rule out the possibility of such changes.

There is no instance noted that audit trail feature being tampered at application level during the year.

Additionally, the audit trail that was enabled at application level (SAP) and operated for the year ended March 31, 2024, has been preserved by the Company as per the statutory requirements for record retention.

The Company has established and maintained an adequate internal control framework and based on its assessment, believes that this was effective for the year ended March 31, 2025.

44. During the year Company stored SAP daily back up on servers physically located in India and daily back up is performed throughout the year.

45. The Company was informed that some unauthorised persons, external to the Company, have fraudulently obtained a refund of H 40.3 million from the Odisha sales tax department. The Company has filed a complaint with the Odisha Sales Tax Department and also a criminal complaint with the Economic offences Wing, Orissa. The Orissa Sales Tax Department has initiated re-assessment proceedings. Presently, the matter is sub-judice.

46. Other statutory information

a. The Company has not traded in Crypto currency or Virtual currency during the financial year.

b. The Company does not have any transaction which is not recorded in the books of accounts and has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961)

c. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.

d. The Company does not have any charges or satisfaction of charge which is yet to register with the Registrar of Company beyond statutory period.

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

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Mar 31, 2024

2.2.16 Provisions and contingent liabilities Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Warranty and product related settlements

A provision for warranty and products related settlements is recognised when the underlying products or services are sold. The provision is based on technical evaluation, global experience, historical warranty and product related settlements data and a weighting of all possible outcomes by their associated probabilities.

Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the Company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before such a provision is made, the Company recognises any impairment loss on the assets associated with that contract

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Provision for site restorations costs

The Company has recognized a provision to clean up historically contaminated waste at sites and bear the costs thereof. In estimating the provisions, the Company have estimated costs based on currently available information about the likely extent of contamination and potential clean-up techniques. Due to the associated uncertainty, it is possible that estimates may need to be revised during the next years as the extent of contamination and potential approaches to clean up are assessed in more detail.

Contingent assets

Contingent assets are not recognised. However, when realisation of income is virtually certain, then the related asset is no longer a contingent asset, and is recognised as an asset.

2.2.17 Segment reporting

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities, which has been defined as one business segment. Accordingly, the Company''s activities/business is reviewed regularly by the Company''s Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components.

Based on the dominant source and nature of risks and returns of the Company, management has identified its business segment as its primary reporting format.

2.2.18 Cash flow statement

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

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of H 2/- per share fully paid up. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

General reserve

Free reserve to be utilised as per provisions of the Companies Act, 2013 Deemed equity/ Capital reserve

Represents equity contribution by the ultimate holding company under employee stock option/RSU scheme by way of issuing ESOPs/RSUs to the employees of the Company.

17 (b). Capital management

(i) Risk management

The Company’s objectives when managing capital are to:

• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

• maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings (including interest accrued) net of cash and cash equivalents) divided by “Total equity” (as shown in the Balance Sheet).

(i) Information about other provisions and significant estimates

Warranty and other product related settlements - Warranty and other product related settlement costs are estimated on the basis of contractual agreement and after considering recent historical trends, costs of rectification, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts. Further, estimates, wherever required, are made on a best estimate basis.

Contract losses- Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the Statement of Profit and Loss. The timing of outflows is expected over the period specified in various contracts.

Litigations and related matters - Provision for litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.) and relating to property matters. The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

Provision towards site restoration - Provision for site restoration represents provision for site restoration as per Company''s policy and applicable requirements.

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts has been made in the books of account.

c) . Performance obligation

Information about the company''s performance obligations are summarised below:

Execution of long term contract for projects

a) Long term (Construction type) contracts- The long term contracts are ordinarily presumed to consist of combined obligations which are not distinct in the context of the contract (i.e., single performance obligation). This is highly attributed to the longterm construction-nature of the projects, whereby deliverables are typically highly interrelated and combined. The typical scope of long term contracts arrangements includes Engineering, manufacturing, shipment, delivery installation, testing, erection and commissioning and civil works. Although there are several components to the overall scope of the contract, the turnkey contracts are generally considered one performance obligation.

b) Products manufacturing and erection, commissioning and installation contracts- These contracts comprising of one performance obligations of supply of products and erection and commissioning thereof. When the manufacturing stage is complete, factory acceptance testing procedures are performed to ensure the equipment meets customer specifications and may involve the customer physically observing the testing procedures. Revenue from contracts, where the performance obligations are satisfied over time and other consideration, is recognized as per the percentage of completion method. The Company uses the percentage of completion method based on the efforts or costs expended to the date as a proportion of the total efforts or costs to be expended.

c) The Company as part of its contracts, provides warranties of the equipment for defects arising out of poor workmanship, inferior material or manufacturing. Such warranty provided is in the nature of assurance warranty and is not accounted for as a separate performance obligation (also refer note:18).

d) . Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2024 is in excess of H 62,700 million (31 March 2023: H 36,900 million).The conversion to revenue is highly dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer sites, changes/ variation in scope/ prices etc. In view of these, it is not practical to define the accurate percentage of conversion to revenue.

(ii) Valuation technique used to determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining the fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian accounting standard.

The following methods and assumptions have been used to estimate the fair values:

- The Company enters into derivative financial instruments with banks. The valuation technique used to determine the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date, taking into account current interest rates and current exchange rates.

34. Financial risk management

The Company’s activities expose it to the following risks arising from the financial instruments- market risk

- liquidity risk

- credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company''s audit committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

(A). Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

The Company''s exposure to credit risk for trade receivables by related and other than related parties are as follows:

(ii) Provision for expected credit losses

a. Security deposit, contract assets and other advances

With regards to security deposit and other advances H 231.1 million (31 March 2023: H 462.5 million), management believes the parties to which these deposits have been made have strong capacity to meet the obligations and risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided for.

b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas. The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable. At year end, the historical observed default and delay rates are updated and analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements, the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn working capital facilities) and cash and cash equivalents on the basis of expected cash flows.

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) 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 of interest rate risk and currency risk. Financial instruments affected by market risk includes deposits, derivative financial instruments, trade receivables, trade payables and other financial liabilities.

(i) Foreign currency risk

The Company''s policy is to hedge all material firm currency exposure at inception to the extent possible. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

(B) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed four years and one ninety days or more of service gets a gratuity on departure at 15 days salary (last drawn basic salary including dearness allowance (if any)) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

(D). Provident fund

i) Provident fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were H 25.9 million (31 March 2023: H 26.8 million).

ii) Provident fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

Notes:

(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.

(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognised in the books in line with the principle of prudence.

e). Others

The Company is liable to fund any shortfall in its recognized Provident Fund trust “Alstom T&D India Limited Employee’s Provident Fund Trust” (the Trust), as it is a defined benefit plan. The Trust''s investments include H 237.7 million (both secured and unsecured) in bonds of IL&FS group of entities. There was a default of interest payment by these entities to the Trust during the previous year. Cumulative provision as of 31 March 2024 stands at H 237.7 million towards expected shortfall in the Provident Fund Trust.

(E) Other information

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss:

(i) Employer’s Contribution to Superannuation Fund H 45.3 million (31 March 2023: H 49.8 million)

(ii) Employer’s Contribution to ESI H 0.4 million (31 March 2023: H 0.9 million)

36: Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company''s activities/business is reviewed regularly by the Company''s Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS - 108 ''Operating Segments''.

37. Share based payments

A) Employee share purchase plan (ESPP)

Under the globally designed employee share purchase plan (Plan), all the permanent employees of the Company get an opportunity to buy a stake in the General Electric Co, USA (being the ultimate holding Company). An employee can invest upto a maximum of 25% of their monthly salary (eligible for provident fund) in the shares of General Electric Co, USA. The Company makes a matching contribution of 15% on every purchase made by the employee. All share are bought at market price on the transaction date. The fair value of the share granted under the plan is determined on the basis of market value of the shares on the grant date. During the year, the following numbers of shares were purchased at the below mentioned weighted average fair value:

B) Employees stock options

The employees are entitled to shares of General Electric Co., USA, the ultimate holding company. Details of these plan is given below.

The ultimate holding company (General Electric Co., USA) grant stock options, restricted stock units to employees under the 2007 Long-Term Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock options can be granted only to employees.

As restricted stock units (RSU''s) and stock options have been granted at the fair value of option on the grant date, therefore the Company measure and disclose the employee''s compensation expenses relating to restricted stock option units and stock options using the fair value.

The employees’ compensation expense for stock options and RSU’s during the year ended 31 March 2024 amounts to H 20.4 million (31 March 2023: H 19.8 million) as included under salaries and wages, treated as cash settled during the year. Further, the Ultimate Holding Company will raise charge to the Company for both stock options and RSUs at the time awards are exercised or lapsed by employees.

The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when the restrictions lapse over the vesting period.

Notes:

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums / authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company has challenged these litigations with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognised these litigations under contingent liability as well.

4) Amount mentioned above excludes Excise/Service tax and Sales tax/ VAT liability of H 288.0 million and H 51.8 million related to Service Tax/ Excise and Sales Tax/ VAT related matters respectively pertaining to pre-demerger of Distribution business from erstwhile Company called Areva T&D India Limited and therefore borne by the de-merged entity i.e. Schneider Electric as per approved de-merger agreement.

43. Ministry of Corporate Affairs (MCA) vide its notification number G.S.R. 206(E) dated March 24, 2021 (amended from time to time) in reference to the proviso to Rule 3 (1) of the Companies (Accounts) Amendment Rules, 2021, introduced the requirement of only using such accounting software w.e.f April 01, 2023 which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Institute of Chartered Accounts of India (“ICAI”) issued an “Implementation guide on reporting on audit trail under rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (Revised 2024 edition)” in February 2024 relating to feature of recording audit trail.

The Company has identified relevant applications that record financial transactions, along with the primary SAP system to which the aforementioned provision and guidance apply. Basis the applications identified, the Company has made an assessment that these accounting software have a feature of recording audit trails (edit log) facility which was enabled through the year except the accounting software maintained by the service organization (for payroll records) which did not have the audit trail feature enabled throughout the year.

SAP, as primary accounting software, is a highly integrated application and inherently logged all changes made to the books of account transactions and has a feature of recording audit trail of each and every transaction at the application level except that audit trail was not enabled at the database level to log any direct data changes.

Only authorized personnel have access to the underlying database for the purpose of system support after obtaining explicit permission from the Company. The Company has enabled sufficient logs at the database level which captures objects edited along-with timing and personnel identity. Any data changes would undergo inherent checks that are built onto application and any impermissible changes at the database level creates multiple errors like operational failure, corrupting of tables etc and rule out the possibility of such changes.

There is no instance noted that audit trail feature being tampered at application level during the year.

The Company has established and maintained an adequate internal control framework and based on its assessment, believes that this was effective for the year ended March 31, 2024.

44. During the year Company additionally started to store SAP daily back up on servers physically located in India and daily back up is performed starting March 22, 2024 onwards.

45. During the previous year, to optimize the size of operation for one of its plants, the Company announced an early retirement scheme for eligible employees and accordingly recognized a provision in respect of employees who opted for the scheme of H 72.0 million for the year.

Further, the Company for one of its business initiated the actions to reduce its structural cost by reducing roles in line with the business volumes and accordingly recognized a provision for severance cost of H 41.8 million for the year. This amount is presented as an exceptional item.

An aggregated amount of H 113.8 million is presented as an exceptional item for the year ended 31 March 23.

46. Other statutory information

a. The Company has not traded in Crypto currency or Virtual currency during the financial year.

b. The Company does not have any transaction which is not recorded in the books of accounts and has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).

c. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.

d. The Company does not have any charges or satisfaction of charge which is yet to register with the Registrar of Company beyond statutory period.

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

For and on behalf of the Board of Directors of GE T&D India Limited Sushil Kumar Sandeep Zanzaria

Whole-time Director & Chief Financial Officer Managing Director & Chief Executive Officer

DIN:08510312 DIN:08905291

Anupriya Garg

Place: Noida Company Secretary

Date: 21 May 2024 Membership no: 18612

---

Mar 31, 2023

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of H 2/- per share fully paid up. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

Nature and description of reserves:

Securities premium

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

General reserve

Free reserve to be utilised as per provisions of the Companies Act, 2013.

Deemed equity/ Capital reserve

Represents equity contribution by the ultimate holding company under employee stock option/RSU scheme by way of issuing ESOPs/RSUs to the employees of the Company.

17 (b).Capital management

(i) Risk management

The Company’s objectives when managing capital are to:

• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

• maintain an optimal capital structure to reduce the cost of capital.

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings (including interest accrued) net of cash and cash equivalents) divided by "Total equity” (as shown in the Balance Sheet).

(i) Information about other provisions and significant estimates

Warranty and other product related settlements - Warranty and other product related settlement costs are estimated on the basis of contractual agreement and after considering recent historical trends, costs of rectification, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts. Further, estimates, wherever required, are made on a best estimate basis.

Contract losses- Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the Statement of Profit and Loss. The timing of outflows is expected over the period specified in various contracts.

Litigations and related matters - Provision for litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.) and relating to property matters. The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

Provision towards site restoration - Provision for site restoration represents provision for site restoration as per Company''s policy and applicable requirements.

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts has been made in the books of account.

C. The Company participates in the cash pool arrangement with GE India Industrial Pvt. Ltd. (GEIIPL) to borrow/invest short term funds based upon the requirement/ availability of working capital on daily basis. Pursuant to the arrangement, during the year, the Company has borrowed loan (from time to time) aggregating to H 15,351.6 million and granted loan (for four days) amounting to H 779.6 million at the stipulated rate of interest from/in the cash pool account. Outstanding balance of loan borrowed and invested as at 31 March 23 is H 1,997.8 million and H Nil, respectively.

D. Further, no funds have been received by the Company from any person or entity, including foreign entity (“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.

c) . Performance obligation

Information about the Company''s performance obligations are summarised below:

Execution of long term contract for projects

a) Long term (Construction type) contracts- The long term contracts are ordinarily presumed to consist of combined obligations which are not distinct in the context of the contract (i.e., single performance obligation). This is highly attributed to the long-term construction-nature of the projects, whereby deliverables are typically highly interrelated and combined. The typical scope of long term contracts arrangements includes Engineering, manufacturing, shipment, delivery installation, testing, erection and commissioning and civil works. Although there are several components to the overall scope of the contract, the turnkey contracts are generally considered one performance obligation.

b) Products manufacturing and erection, commissioning and installation contracts- These contracts comprising of one performance obligations of supply of products and erection and commissioning thereof. When the manufacturing stage is complete, factory acceptance testing procedures are performed to ensure the equipment meets customer specifications and may involve the customer physically observing the testing procedures. Revenue from contracts, where the performance obligations are satisfied over time and other consideration, is recognized as per the percentage of completion method. The Company uses the percentage of completion method based on the efforts or costs expended to the date as a proportion of the total efforts or costs to be expended.

c) The Company as part of its contracts, provides warranties of the equipment for defects arising out of poor workmanship, inferior material or manufacturing. Such warranty provided is in the nature of assurance warranty and is not accounted for as a separate performance obligation.

d) . Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2023 is in excess of H 36,900 million (31 March 2022: H 37,200 million). The conversion to revenue is highly dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer sites, changes/ variation in scope/ prices etc. In view of these, it is not practical to define the accurate percentage of conversion to revenue.

(ii) Valuation technique used to determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining the fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian accounting standard.

The following methods and assumptions have been used to estimate the fair values:

The Company enters into derivative financial instruments with banks. The valuation technique used to determine the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date, taking into account current interest rates and current exchange rates.

Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company''s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company''s audit committee oversees how management monitors compliance with Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

(ii) Provision for expected credit losses

a. Security deposit, contract assets and other advances

With regards to security deposit and other advances H 462.5 million (31 March 2022: H 575.1 million), management believes the parties to which these deposits have been made have strong capacity to meet the obligations and risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided for.

b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas. The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable. At year end, the historical observed default and delay rates are updated and analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

Other financial assets

a) The Company has given security deposits to Government departments for rental deposit for securing services from them. As these are well established organisations and have strong capacity to meet the obligations, risk of default is negligible or nil.

b) All the export benefits (included in other financial assets) are receivable from Government and therefore expected probability of default is negligible or nil.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements, the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn working capital facilities) and cash and cash equivalents on the basis of expected cash flows.

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 of interest rate risk and currency risk. Financial instruments affected by market risk includes deposits, derivative financial instruments, trade receivables, trade payables and other financial liabilities.

(i) Foreign currency risk

The Company''s policy is to hedge all material firm currency exposure at inception to the extent possible. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

(i) 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 Company’s debt obligations with floating interest rates.

(B) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed four years and one ninety days or more of service gets a gratuity on departure at 15 days salary (last drawn basic salary including dearness allowance (if any)) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

(D). Provident fund

i) Provident fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were H 26.8 million (31 March 2022: H 31.1 million).

ii) Provident fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

Notes:

(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.

(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognised in the books in line with the principle of prudence.

e) . Others

The Company is liable to fund any shortfall in its recognized Provident Fund trust “Alstom T&D India Limited Employee’s Provident Fund Trust” (the Trust), as it is a defined benefit plan. The Trust''s investments include H 251 million (both secured and unsecured) in bonds of IL&FS group of entities. There was a default of interest payment by these entities to the Trust during the previous year. Cumulative provision as of 31 March 2023 stands at H 251 million towards expected shortfall in the Provident Fund Trust.

f) . During the year, the Company has recognised in other comprehensive income, shortfall of H 27.7 milion in Provident fund trust related

to prior years.

(E) Other information

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss:

(i) Employer’s Contribution to Superannuation Fund H 49.8 million (31 March 2022: H 58.2 million)

(ii) Employer’s Contribution to ESI H 0.9 million (31 March 2022: H 1.6 million)

36. Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company''s activities/business is reviewed regularly by the Company''s Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS -108 ''Operating Segments''.

37. Share based payments

A) Employee share purchase plan (ESPP)

Under the globally designed employee share purchase plan (Plan), all the permanent employees of the Company get an opportunity to buy a stake in the General Electric Co, USA (being the ultimate holding Company). An employee can invest upto a maximum of 25% of their monthly salary (eligible for provident fund) in the shares of General Electric Co, USA. The Company makes a matching contribution of 15% on every purchase made by the employee. All share are bought at market price on the transaction date. The fair value of the share granted under the plan is determined on the basis of market value of the shares on the grant date. During the year, the following numbers of shares were purchased at the below mentioned weighted average fair value:

B) Employees stock options

The employees are entitled to shares of General Electric Co., USA, the ultimate holding company. Details of these plan is given below.

The ultimate holding company (General Electric Co., USA) grant stock options, restricted stock units to employees under the 2007 LongTerm Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock options can be granted only to employees.

As restricted stock units (RSU''s) and stock options have been granted at the fair value of option on the grant date, therefore the Company measure and disclose the employee''s compensation expenses relating to restricted stock option units and stock options using the fair value.

The employees’ compensation expense for stock options and RSU’s during the year ended 31 March 2023 amounts to H 19.8 million (31 March 2022: H 31.4 million) as included under salaries and wages, treated as cash settled during the year. Further, the Ultimate Holding Company will raise charge to the Company for both stock options and RSUs at the time awards are exercised or lapsed by employees.

The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant date if not exercised.

Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when the restrictions lapse over the vesting period.

39. Contingent liabilities
	As at 31 March 2023	As at 31 March 2022
(i) Demands relating to
Sales tax matters and Goods and service tax	2,851.2	3,579.2
Direct tax matters	123.5	123.5
Custom, excise duty and service tax matters	1,228.0	1,169.5
(ii) Claims against the Company not acknowledged as debts pertaining to legal cases	264.8	308.0

Notes:

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums / authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company has challenged these litigations with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognised these litigations under contingent liability as well.

4) Amount mentioned above excludes Excise/Service tax and Sales tax/ VAT liability of H 51.8 million and H 301.6 million related to Service Tax/ Excise and Sales Tax/ VAT related matters respectively pertaining to pre-demerger of Distribution business from erstwhile Company called Areva T&D India Limited and therefore borne by the de-merged entity i.e. Schneider Electric. This has also been confirmed by the Schneider Electric.

43 • The Company is maintaining its proper books of account as required by law except for the keeping backup on daily basis for such books of account maintained in electronic mode on the server physically located outside India.

44 (a) • The Company had entered into a business transfer agreement (BTA) dated 23 December 2019 to sell its manufacturing facility at Naini, Allahabad (identified as disposal group) to a third party at a revised proposed consideration (net of transaction cost) of H 362.3 million. The proposed sale consists of the Company’s rights in the leased land at the facility, identified movable and immovable properties and assumed liabilities. The validity period of the BTA has been further extended.

The Company has entered into a settlement agreement with unionized staff for one time compensation to each workers who agrees to join / get transferred to new management once the sale of the undertaking consummates. Total cost of settlement compensation to all workmen was approx. H 160.0 million.

Subsequent to the previous year ended 31 March 2022 , basis the conditions agreed with the purchaser as part of BTA amendentment, the net gain of H 68.7 million arrived by reducing the cost incurred / to be incurred from the selling price which was shown as exceptional items in P&L in FY 21-22 and accordingly assets held for sale of H 362.3 million and liabilities held for sale of H 293.6 million was recorded.

During the current year Naini facility sale was concluded and accordingly assets held for sale of H 362.3 million and liabilities held for sale of H 293.6 million were transferred to the buyer.

44 (b) • During the previous year, basis internal evaluation, management has created a provision of H 198.4 million take for site restoration based on present obligation for activities related to production performed in eariler years same was reported under exceptional items.

44 (c). During the previous year, the Company has transferred its Global Engineering Operating Division (Engineering division) (GEOD) to GE India Industrial Private Limited (GEIIPL) a fellow subsidiary together with the assets and manpower comprised therein on a slump sale basis for a total cash consideration of H 1,406 million. GEOD was engaged in providing Engineering, designing, R&D and other related services to its GE fellow subsidiaries on a cost plus markup basis. The transfer of the GEOD business represents a strategic sale out to GEIIPL for the purpose of integrating existing engineering resources within GEIIPL and developing advanced grid technologies and accelerate the energy transition.

The consideration for the transfer was determined basis a fair valuation by an independent third party valuation specialist.

The excess of consideration received over the GEOD’s carrying value of net assets amounting to H 1,231.4 million, had been recognized as gain on sale of the division and included in the profit and loss account for year ended 31 March 2022. The above transaction was approved by the non-controlling shareholders.

In the absence of any explicit guidance regarding accounting treatment to be followed in common control transactions in the books of the transferor in Appendix C to Ind-AS 103 on “Business Combination”, the Company has adopted an accounting policy choice and has recognized such gains in the Statement of Profit and Loss.

44 (d) • During the year, to optimize the size of operation for one of its plants, the Company announced an early retirement scheme for eligible employees and accordingly recognized a provision in respect of employees who opted for the scheme of H 72.0 million for the year.

Further, the Company for one of its business initiated the actions to reduce its structural cost by reducing roles in line with the business volumes and accordingly recognized a provision for severance cost of H 41.8 million for the year. This amount is presented as an exceptional item.

An aggregated amount of H 113.8 million is presented as an exceptional item for the year ended 31 March 23.

45. Other statutory information

a. The Company has not traded in Crypto currency or Virtual currency during the financial year.

b. The Company does not have any transaction which is not recorded in the books of accounts and has been surrendered or disclosed as

income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the

Income Tax Act, 1961)

c. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.

d. The Company does not have any charges or satisfaction of charge which is yet to register with the ROC beyond statutory period.

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

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Mar 31, 2022

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of H 2/- per share fully paid up. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

Nature and description of reserves :

Securities premium

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

General reserve

Free reserve to be utilised as per provisions of the Companies Act, 2013.

Deemed equity/ Capital reserve

Represents equity contribution by the ultimate holding company under employee stock option/RSU scheme by way of issuing ESOPs/RSUs to the employees of the Company.

17 (b). Capital management

(i) Risk management

The Company’s objectives when managing capital are to:

• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and

• maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings net of cash and cash equivalents) divided by “Total equity” (as shown in the Balance Sheet).

(i) Information about other provisions and significant estimates

Warranty and other product related settlements - Warranty and other product related settlement costs are estimated on the basis of contractual agreement and after considering recent historical trends, costs of rectification, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts. Further, estimates, wherever required, are made on a best estimate basis.

It includes provision on the basis of the Company’s best estimate to settle potential liability arising out of some weaknesses detected by the Company in carrying out certain testing procedures in respect of certain products in the past.

The management had taken corrective steps to strengthen these procedures.

The above estimates made on the basis of generally accepted accounting principles involve assumptions made by management and are subject to uncertainties/ sensitivities in terms of amount and timing of outflows. Actual amounts of expense/ settlement could be different than the estimates.

Contract losses - Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the Statement of Profit and Loss. The timing of outflows is expected over the period specified in various contracts.

Litigations - Provision for litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.) and relating to property matters. The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

Provision towards site restoration - Provision for site restoration represents provision for site restoration as per Company’s policy and applicable requirements.

The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of account. Refer note 44 (b).

The Company made provisions towards warranty and other product related settlements in earlier years, which included provision on the basis of the Company’s best estimate to settle potential liability arising out of some weaknesses detected by the Company in carrying out certain testing procedures in respect of certain products in the past. The management had taken corrective steps to strengthen these procedures.

During the current year 31 March 2022, the Company finalised the above potential liability and reassessed the reserves towards warranty and other product related settlements and accordingly reversed the excess reserve of H 592.1 million.

C. The Company participates in the cash pool arrangement with GE India Industrial Pvt. Ltd. (GEIIPL) to borrow/invest short term funds based upon the requirement/ availability of working capital on daily basis. Pursuant to the arrangement, during the year, the Company has borrowed loan (from time to time) aggregating to H 11,896.3 million and granted loan (for two days) amounting to H 142.9 million at the stipulated rate of interest from/in the cash pool account. Outstanding balance of loan borrowed and invested as at 31 March 22 is H 1,469.8 million and H Nil, respectively.

D. Further, no funds have been received by the Company from any person or entity, including foreign entity (“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

c) Performance obligation

Information about the company’s performance obligations are summarised below:

Execution of long term contract for projects

a) Long term (Construction type) contracts- The long term contracts are ordinarily presumed to consist of combined obligations which are not distinct in the context of the contract (i.e., single performance obligation). This is highly attributed to the long-term construction-nature of the projects, whereby deliverables are typically highly interrelated and combined. The typical scope of long term contracts arrangements includes Engineering, manufacturing, shipment, delivery installation, testing, erection and commissioning and civil works. Although there are several components to the overall scope of the contract, the turnkey contracts are generally considered one performance obligation.

b) Products manufacturing and erection, commissioning and installation contracts- These contracts comprising of one performance obligations of supply of products and erection and commissioning thereof. When the manufacturing stage is complete, factory acceptance testing procedures are performed to ensure the equipment meets customer specifications and may involve the customer physically observing the testing procedures. Revenue from contracts, where the performance obligations are satisfied over time and other consideration, is recognized as per the percentage of completion method. The Company uses the percentage of completion method based on the efforts or costs expended to the date as a proportion of the total efforts or costs to be expended.

c) The Company as part of its contracts, provides warranties of the equipment for defects arising out of poor workmanship, inferior material or manufacturing. Such warranty provided is in the nature of assurance warranty and is not accounted for as a separate performance obligation.

d) Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

‘The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2022 is in excess of H 37,200 million (31 March 2021 H 45,000 million).The conversion to revenue is highly dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer sites, changes/ variation in scope/ prices etc. In view of these, it is not practical to define the accurate percentage of conversion to revenue.

e) There was no revenue recognised in the current year ended 31 March 2022 from performance obligations satisfied (or partially satisfied) in previous periods due to no significant changes in transaction price.

Note: The Company has spent H 4.5 million during the financial year ended March 31, 2022 as CSR expenditure for the activities specified in the Corporate Social Responsibility Policy of the Company, against the amount prescribed under section 135 of the Companies Act, 2013 (“Act”) and CSR budget of H 2.5 million. Excess spent amount of H 2.0 million is being carried forward to be set-off in next three financial years as per Act read with rules made thereunder.

32. Income tax expense

This note provides an analysis of the Company’s income tax expense, and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company’s tax positions.

(ii) Valuation technique used to determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining the fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian accounting standard.

The following methods and assumptions have been used to estimate the fair values: The Company enters into derivative financial instruments with banks. The valuation technique used to determine the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date, taking into account current interest rates and current exchange rates.

Risk Management Framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company’s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company’s audit committee oversees how management monitors compliance with Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

(ii) Provision for expected credit losses

a. Security deposit, contract assets and other advances

With regards to security deposit and other advances H 575.1 million (31 March 2021 : H 337.4 million), management believes the parties to which these deposits have been made have strong capacity to meet the obligations and risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided for.

In respect of Contract assets amounting to H 1,626.3 million (31 March 2021: H 2,650.3 million), the Company recognised H 157.9 million (31 March 2021 H 163.5 million) as provision for expected credit loss on account of delay in receiving the amount from customers.

b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas. The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable. At year end, the historical observed default and delay rates are updated and analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

Other financial assets

a) The Company has given security deposits to Government departments for rental deposit for securing services from them. As these are well established organisations and have strong capacity to meet the obligations, risk of default is negligible or nil.

b) All the export benefits (included in other financial assets) are receivable from Government and therefore expected probability of default is negligible or nil.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements, the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn working capital facilities) and cash and cash equivalents on the basis of expected cash flows.

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) 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 of interest rate risk and currency risk. Financial instruments affected by market risk includes deposits, derivative financial instruments, trade receivables, trade payables and other financial liabilities.

The Company uses derivative to manage market risks. All such transactions are carried out within the guideline as prescribed in the Company’s risk management policy.

(i) Foreign currency risk

The Company’s policy is to hedge all material firm currency exposure at inception to the extent possible. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

(D). Provident fund

i) Provident fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were H 31.1 million (31 March 2021 H 28.2 million).

ii) Provident fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

Notes:

(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.

(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognised in the books in line with the principle of prudence.

e). Others

The Company is liable to fund any shortfall in its recognized Provident Fund trust “Alstom T&D India Limited Employee’s Provident Fund Trust” (the Trust), as it is a defined benefit plan. The Trust’s investments include H 251 million (both secured and unsecured) in bonds of IL&FS group of entities. There was a default of interest payment by these entities to the Trust during the previous year. Cumulative provision as of 31 March 2022 stands at H 251 million towards expected shortfall in the Provident Fund Trust.

(E) Other information

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss:

(i) Employer’s Contribution to Superannuation Fund H 58.2 million (31 March 2021 H 70.8 million)

(ii) Employer’s Contribution to ESI H 1.6 million (31 March 2021 H 1.5 million)

36. Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company’s activities/business is reviewed regularly by the Company’s Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS - 108 ‘Operating Segments’.

37. Share based payments

A) Employee share purchase plan (ESPP)

Under the globally designed employee share purchase plan (Plan), all the permanent employees of the Company get an opportunity to buy a stake in the General Electric Co, USA (being the ultimate holding Company). An employee can invest upto a maximum of 25% of their monthly salary (eligible for provident fund) in the shares of General Electric Co, USA. The Company makes a matching contribution of 15% on every purchase made by the employee. All share are bought at market price on the transaction date. The fair value of the share granted under the plan is determined on the basis of market value of the shares on the grant date. During the year, the following numbers of shares were purchased at the below mentioned weighted average fair value:

B) Employees stock options

The employees are entitled to shares of General Electric Co., USA, the ultimate holding company. Details of these plan is given below.

The ultimate holding company (General Electric Co., USA) grant stock options, restricted stock units to employees under the 2007 Long-Term Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock options can be granted only to employees.

As restricted stock units (RSU’s) and stock options have been granted at the fair value of option on the grant date, therefore the Company measure and disclose the employee’s compensation expenses relating to restricted stock option units and stock options using the fair value.

The employees’ compensation expense for stock options and RSU’s during the year ended 31 March 2022 amounts to H 31.4 million as included under salaries and wages, treated as cash settled during the year. Further, the Ultimate Holding Company will raise charge to the Company for both stock options and RSUs at the time awards are exercised or lapsed by employees.

The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when the restrictions lapse over the vesting period.

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums / authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and

disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognised these litigations under contingent liability as well.

4) Amount mentioned above excludes an amount of H 53.6 million and H 370.4 million related to Service Tax/ Excise and Sales Tax/ VAT related matters respectively pertaining to pre-demerger of Distribution business from erstwhile Company called Areva T&D India Limited and therefore borne by the de-merged entity i.e. Schneider Electric. This has also been confirmed by the Schneider Electric.

5) There are no lease contracts which have been entered into but not yet commenced as at 31 March 2022.

43. The Management, have evaluated the impact of the pandemic on its business operations under various scenarios. The Company currently has a strong order book in excess of H 37,200 million, leading to a clear visibility of revenue over the next 12-15 months. The Company has adequate fund-based credit facilities available from banks and other parties. The Company through the lockdown period and even subsequently has been able to maintain adequate control of its assets and there have been no significant changes to its control environment during the period.

The Company has also assessed the impact of any delays and inability to meet contractual commitments and has taken actions such as engaging with the customers in light of current crisis, and invoking of force-majeure clause to ensure that revenue recognition in such cases reflect realisable values. Further, the Company has evaluated the impact of COVID-19 on the financial results and made adequate provisions, wherever required, such as expected credit loss, estimated project costs etc. Any further impact till the date of report, if any, of COVID 19 on current year financial statement is not expected to be material.

44 (a). The Company had entered into a business transfer agreement (BTA) dated 23 December 2019 to sell its manufacturing facility at Naini, Allahabad (identified as disposal group) to a third party at a revised proposed consideration (net of transaction cost) of H 362.3 million. The proposed sale consists of the Company’s rights in the leased land at the facility, identified movable and immovable properties and assumed liabilities. The validity period of the BTA has been further extended.

The Company has entered into a settlement agreement with unionized staff for one time compensation to each workers who agrees to join / get transferred to new management once the sale of the undertaking consummates. Total cost of settlement compensation to all workmen is approx. H 160 million.

Subsequent to the year end, basis the conditions agreed with the purchaser as part of BTA amendentment, the net gain of H 68.7 million arrived by reducing the cost incurred / to be incurred from the selling price has been shown as exceptional items in P&L. Accordingly assets held for sale of H 362.3 million and liabilities held for sale of H 293.6 million is recorded.

44 (b). During the year, management has created a provision of H 198.4 million for site restoration based on present assessment of expenditure for activities related to earlier years and the same is reported under exceptional items.

44 (c). During the year, the Company has transferred its Global Engineering Operating Division (Engineering division) (GEOD) to GE India Industrial Private Limited (GEIIPL) a fellow subsidiary together with the assets and manpower comprised therein on a slump sale basis for a total cash consideration of H 1,406 million. GEOD is engaged in providing Engineering, designing, R&D and other related services to its GE fellow subsidiaries on a cost plus markup basis. The transfer of the GEOD business represents a strategic sale out to GEIIPL for the purpose of integrating existing engineering resources within GEIIPL and developing advanced grid technologies and accelerate the energy transition.

The consideration for the transfer was determined basis a fair valuation by an independent third party valuation specialist.

The excess of consideration received over the GEOD’s carrying value of net assets amounting to H 1,231.4 million, has been recognized as gain on sale of the division and included in the profit and loss account. The above transaction was approved by the non-controlling shareholders.

In the absence of any explicit guidance regarding accounting treatment to be followed in common control transactions in the books of the transferor in Appendix C to Ind-AS 103 on “Business Combination”, the Company has adopted an accounting policy choice and has recognized such gains in the Statement of Profit and Loss.

45. Other statutory information

a. The Company have not traded in Crypto currency or Virtual currency during the financial year.

b. The Company does not have any transaction which is not recorded in the books of accounts and has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961)

c. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company.

d. The Company do not have any charges or satisfaction of charge which is yet to register with the ROC beyond statutory period.

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

46. The comparative financial information of the Company for the year ended/as at March 31, 2021, were reviewed/audited by the BSR & Associates LLP, Chartered Accountants, the predecessor auditor who have expressed an unmodified conclusion/opinion.

47. Previous year figures have been re-grouped or reclassified to conform to such current year classification

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Mar 31, 2019

Notes to the Financial Statements for the year ended 31 March 2019

(All figures in Rs million, except share data and unless otherwise stated)

36. Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company''s activities/business is reviewed regularly by the Company''s Managing Director assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS -108 ''Operating Segments''.

(i) The entity wide disclosures as required by Ind AS -108 are as follows:

Description	Year ended March 31, 2019	Year ended March 31, 2018
Sale of products	17,175.4	17,263.7
Revenue from execution of contracts for projects and services	23,776.9	25,399.6
Sale of services	1,157.6	1,137.4
Other operating income	78.3	57.5
Revenue from operations	42,188.2	43,858.2

(ii) Geographical Information

*Exports to any single country are not material to be disclosed Note: Two customers accounts for approx 35% ( 31 March 2018 one customer accounts for 24%) of Company''s total revenue from operations.

* Non-current assets exclude financial instruments and deferred tax assets.

37. Share based payments

The employees of the Company are entitled to the shares of General Electric Company, United States (ultimate holding company) under an equity-settled share-based compensation plan. The share based payments expense accruals which are disclosed under employee benefits is not material, hence, the required disclosures have not been provided.

Revenue from external customers	Year ended March 31, 2019	Year ended March 31, 2018
India	36,095.6	39,240.4
Other countries*	6,092.5	4,617.8
	42,188.1	43,858.2
Non-current assets**	Year ended March 31, 2019	Year ended March 31, 2018
India	8,591.5	8,835.5
Other countries

38. Related party transactions

Names of related parties and nature of relationship:

(i) Parties with whom control exist:
General Electric Company, United States	Ultimate Holding Company
GE Albany Global Holdings BV, Netherlands	Intermediate Holding Company
ALSTON B.V., Netherlands (w.e.f 20 December 2018)	Intermediate Holding Company
GE Grid Alliance B.V., Netherlands	Intermediate Holding Company
Grid Equipments Private Limited, India	Immediate Holding Company

(ii) Key managerial personnel	Mr. Sunil Wadhwa (Managing Director)
	Mr. Stephane Cai (Chairman, Non Executive Director)
	Mr. Gaurav Manoher Negi (Whole time Director and Chief Finance Officer)
	Mr. Nagesh Tilwani (Whole time Director )
	Mr. Bhanu Bhushan (Independent Director)
	Mr. Kirit S Parikh (Independent Director)
	Mr. Rakesh Nath (Independent Director)
	Ms. Neera Saggi (Independent Director)

(iii) Fellow subsidaries with whom transactions have taken place:
Grid Solutions Argentina S.A	Argentina	GE Grid Solutions Japan K.K.	Japan
GE Grid Australia Pty Ltd	Australia	General Electric International Operations Company, Inc. -JO	Jordan
Grid Solutions SAS	Bahrein	GE Power Services (Malaysia) Sdn. Bhd	Malaysia
Grid Solutions Belgium sprl	Belgium	GE Power Solutions (Malaysia) Sdn. Bhd	Malaysia
GE Digital Energy do Brasil Ltda	Brazil	GE Grid Solutions, S.A. de C.V.	Mexico
GE Energias Renovaveis Ltda	Brazil	GE Grid Solutions Maroc	Morocco
Grid Solutions Transmissao de Energia Ltda	Brazil	GE International Operations (NIG) Limited	Nigeria
Reason Tecnologia S.A.	Brazil	GE Power Sp.z.o.o.	Poland
GEMultilin	Canada	Grid Solutions Portugal, Lda.	Portugal
Grid Solutions Canada ULC	Canada	Grid Solutions SAS	Qatar
ALSTOM Shanghai Instrument Transformers Co., Ltd	China	Grid Solutions Romania Sri	Romania
GE (Wuhan) Engineering & Technology Co., Ltd	China	General Electric International, Inc.	Saudi Arabia
GE Grid (Shanghai) Co., Ltd	China	COGELEX	Saudi Arabia
GE Grid Technology Centre Co Ltd	China	Grid Solutions Arabia Ltd Co	Saudi Arabia
GE High Voltage Switchgear (Suzhou)	China	GE Energy (Singapore) Pte. Ltd	Singapore
GE Energy Colombia S.A.	Colombia	GE Grid Solutions Pte. Ltd	Singapore
Grid Solutions for Electrical Networks S.A.E.	Egypt	General Electric International, Inc	Singapore
Grid Solutions Oy	Finland	General Electric South Africa (Pty) Ltd	South Africa
ALSTOM Power Conversion SAS	France	Kelman Distributors Africa (Pty) Ltd	South Africa
GE IS & T SAS	France	GE Grid Solutions S.A.	Spain
GE Support France	France	GE Power Management S.L.	Spain
Grid Solutions SAS	France	GE Renewable Hydro Spain, S.L	Spain
GE Grid GmbH	Germany	GE Grid (Switzerland) GmbH	Switzerland
GE Grid Messwandler GmbH	Germany	General Electric (Switzerland) GmbH	Switzerland
GE Intelligent Platforms GmbH	Germany	General Electric Technology GmbH	Switzerland

General Electric Deutschland Holding GmbH	Germany	Grid Solutions (Thailand) Ltd	Thailand
Grid Solutions Hellas S.A. Electrical Commercial	Greece	Grid Solutions Enerji Endustrisi A.S.	Turkey
and Construction Company
GE Grid Solutions Limited	Hong Kong	GE Middle East FZE	UAE
GE Infrastructure Hungary Holding Kft	Hungary	General Electric International Operations Company	UAE
GE BE Private Ltd	India	Grid Solutions Middle-East (FZE)	UAE
GE Global Sourcing India Private Ltd	India	Grid Solutions SAS	UAE
GE India Industrial Private Ltd	India	GE Energy Power Conversion UK Limited	United Kingdom
GE Intelligent Platforms Private Ltd	India	GE Grid Solutions (UK) Ltd	United Kingdom
GE Oil & Gas India Private Ltd	India	General Electric Energy UK Ltd	United Kingdom
GE Power Conversion India Pvt. Ltd.	India	General Electric International, Inc	United Kingdom
GE Power India Ltd	India	GE Grid Solutions, LLC	USA
GE Power Systems India Private Limited	India	GE Packaged Power, Inc.	USA
GE Power Systems India Private Limited (formerly ALSTON Bharat Forge Power Private Ltd)	India	GE Working Capital Solutions, LLC	USA
IndoTech Transformers Ltd	India	General Electric Company	USA
Wipro GE Healthcare Private Limited	India	General Electric International, Inc	USA
GE Operations Indonesia, PT	Indonesia	GRID Solutions (U.S.) LLC	USA
PT Grid Solutions Indonesia	Indonesia	Instrument Transformers, LLC	USA
PTUnelec Indonesia	Indonesia	GE Vietnam Limited	Vietnam
GRID Solutions S.p.A.	Italy	Grid Solutions Vietnam Company Ltd	Vietnam

(iv) Employee benefit trusts where control exists:
Alstom T&D India Limited (Pallavaram PF, Trust)
Alstom T&D India Limited (Regional PF Trust, Kolkata)	(upto 21 February 2018)
Alstom T&D India Limited (Staff PF Trust, Kolkata)	(upto 21 February 2018)
Alstom T&D India Limited (Senior Staff PF Trust, Kolkata)	(upto 21 February 2018)

Related party transactions and balances:

Description	For the year ended March 31, 2019						For the year ended March 31, 2018
Transactions	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts
Revenue from operations
GE PowerSystems India Private Ltd, India			1,317.2						193.6
General Electric Energy UK Ltd, United Kingdom			916.0						807.0
Grid Solutions SAS, France			366.8						338.0
GE Grid Solutions, S.A. de C.V., Mexico			295.5						226.6
GE Grid Solutions Pte Ltd, Singapore			199.2						273.1
COGELEX, Saudi Arabia			194.5						200.9
GE PowerServices (Malaysia) Sdn. Bhd, Malaysia			181.2						-
GE High Voltage Switchgear (Suzhou), China			171.8						200.5
GRID Solutions (U.S.) LLC, USA			155.4						206.4
General Electric Tech no logy Gmb, Switzerland			148.4						84.2
Grid Solutions Portugal, Lda., Portugal			139.9						231.1
GEPowerlndia Ltd, India			125.2						238.0
GE Grid Australia Pty Ltd, Australia			122.2						-
GE Grid GmbH, Germany			115.8
Grid Solutions Transmissao de Energia Ltda, Brazil			107.9
PT Grid Solutions Indonesia			99.4						159.4
GE PowerConversion India Pvt. Ltd, India			61.5						301.5
Others			415.6						723.2
Purchase of raw material, components consumed and project related costs
Grid Solutions SAS, France			614.1						428.9
General Electric Energy UK Ltd, United Kingdom			194.7						704.0
GEMultilin, Canada			182.8						74.0
GRID Solutions S.p.A., Italy			181.7						21.9
GE Grid (Switzerland) GmbH, Switzerland			117.2						154.5
GE Grid GmbH., Germany			102.9						1.2
Reason Tecnologia S.A.			98.1						69.2
Indo Tech Transformers Ltd., India			92.4						-
GE Grid Solutions (UK) Ltd, United Kingdom			80.5						103.7
GE Power Management S.L., Spain			44.4						90.4
GE High Voltage Switchgear (Suzhou)			42.2						57.3
Others			182.5						199.8

Description	For the year ended March 31, 2019						For the year ended March 31, 2018
Transactions	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts
Purchase of Services - Others
Grid Solutions SAS, France			689.4						273.0
GE India Industrial Private Ltd, India			832.5						295.4
Others			84.7						57.4
Purchase of property, plant and equipment
General Electric Energy UK Ltd, United Kingdom			3.2
GE BE Private Ltd., India			1.5
GE Intelligent Platforms GmbH, Germany			0.2
GE Grid (Switzerland) GmbH, Switzerland									3.6
Grid Solutions SAS, France									1.1
Technology licence fee and others
General Electric Tech no logy GmbH. Switzerland			421.5						476.4
General Electric Energy UK Ltd, United Kingdom			155.2						120.9
Grid Solutions SAS, France			18.1						19.9
Grid Solutions (U.S.) LLC (formerly ALSTON Grid LLC), USA			13.6						18.8
Trade mark fees
General Electric Company, USA	395.1						396.5
Interest
GE Powerlndia Limited, India									43.8
Grid Equipments Private Limited, India		-						102.2
Dividend remitted
Grid Equipments Private Limited, India		315.9						315.9
GE Grid Alliance B.V., Netherlands		29.8						29.8
Borrowings availed
Grid Equipments Private Limited, India								440.0
Borrowings repaid
GE Powerlndia Limited, India			-						2,200.0
Grid Equipments Private Limited, India		-						2,220.0
Key management personnel Remuneration
Sunil Wadhwa				27.9						25.2
Gaurav ManoherNegi				21.8						17.7
NageshTilwani				10.3						11.8
Key management personnel compensation *
Short-term employee benefits				57.4						52.2
Post-employment benefits				2.6						2.5
Sitting fees to Independent / non- executive directors					5.3						3.6
Commission to Independent / non- executive directors					6.0						1.8

Description	For the year ended March 31, 2019						For the year ended March 31, 2018
Transactions	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts	Ultimate Holding company	Immediate Holding company / Intermediate Holding company	Fellow Subsidiaries	Key management personnel	Others	Employee benefit trusts
Contribution to employee related trusts
Alstom T&D India Limited (Pallavaram PF Trust)						81.2						83.6
Closing balances
Trade receivables
GE Power Systems India Private Ltd, India			197.8						-
General Electric Energy UK Ltd, United Kingdom			189.9						132.4
GE Power Services (Malaysia) Sdn. Bhd			94.6						1.3
Grid Solutions (U.S.) LLC, USA			87.0						54.8
GE Power Conversion India Pvt. Ltd, India			81.2						125.1
GE Grid GmbH, Germany			76.1						27.6
GE Power India Ltd, India			72.1						138.8
Grid Solutions SAS, France			58.3						56.2
GE Grid Solutions, S.A. de C.V., Mexico			57.2						100.8
PTGrid Solutions Indonesia			56.4						27.1
GRID Solutions S.p.A., Italy			54.6						8.7
GE High Voltage Switchgear (Suzhou), China			42.0						33.0
Grid Solutions Transmissaode Energia Ltda			28.8						16.7
GE Grid Solutions Pte. Ltd, Singapore			27.8						61.5
GE Grid Australia Pty Ltd, Australia			26.1						24.4
COGELEX, Saudi Arabia			25.2						27.0
Others			92.9						145.2
Advance from customer
GE PowerSystems India Private Ltd, India									291.3
Trade payables
Grid Solutions SAS, France			657.4						582.8
General Electric Energy UK Ltd, United Kingdom			421.5						218.2
General Electric Technology GmbH. Switzerland			263.9						709.0
GE India Industrial Private Ltd, India			261.6						242.9
GRID Solutions (U.S.) LLC, USA			103.0						40.2
GE Grid GmbH, Germany			96.0						0.2
GEGrid Solutions (UK) Ltd, United Kingdom			78.9						45.0
GRID Solutions S.p.A., Italy			68.2						21.5
GE Grid (Switzerland) GmbH, Switzerland			58.7						49.6
GE Multilin, Canada			51.7						20.6
General Electric Company, USA	20.3						846.1
Reason Tecnologia S.A. , Brazil			7.1						28.6
Others			183.2						153.2

*Does not include gratuity and compensated absences as these are provided in the books of accounts on the basis of actuarial valuation forthe Company as a whole and hence individual amount cannot be determined.

39. Contingent liabilities

	As at March 31, 2019	As at March 31, 2018
(a) Contingent liabilities (i) Demands relating to
Sales tax matters	2,673.1	1,343.8
Excise duty and service tax matters	53.6	48.3
(ii) Claims against the Company not acknowledged as debts pertaining to legal cases	209.8	230.2

Notes:

40. Capital and other commitments

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums /authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognised these litigations under contingent liability as well.

4) During the year ended 31st March 2018, the Company''s internal reviews identified some weaknesses in carrying out certain testing procedures in respect of certain products. The management had taken corrective steps to strengthen these procedures and is communicating with the relevant stakeholders. No claims have been made on the Company so far. At this point of time, it is not possible to assess/estimate the extent and impact, if any, of the same

5) There are numerous interpretative issues relating to the recent Supreme Court (SC) judgement on Provident fund dated 28th February 2019. The Company is in compliance with the Hon''ble Supreme Court judgement for the year ending 31st March 2019. The Company will update its provision for any prior periods if required, on receiving further clarity on the judgement. The Company does not expect the impact to be material.

41. Earnings/(loss) per share

The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstanding for purposes of basic earnings per share calculation are as follows:

(a) Basic/diluted earnings per share

	As at March 31, 2019	As at March 31, 2018
Earnings attributable to the equity holders of the Company	2,126.7	2,087.6
Weighted average number of equity shares	25,60,49,135	25,60,49,135
Total basic/ diluted earnings per share attributable to the equity holders of the Company	8.31	8.15

	As at March 31, 2019	As at March 31, 2018
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (net of advances)	31.5	16.6
	31.5	16.6

42. Revenue from Contracts with Customers

a) Disaggregated revenue information

	As at March 31, 2019
Revenue by Geography
India	36,095.6
Other countries*	6,092.5
	42,188.1

*Exports to any single country are not material to be disclosed

	As at March 31, 2019
Revenue by offerings
Sale of products	17,175.4
Revenue from execution of contracts for projects and services	23,776.9
Sale of services	1,157.6
Other operating income	78.3
	42,188.2

b) Contract balances

	As at March 31, 2019
Trade receivables	20,202.5
Advance from customers (Contract liabilities)	3,531.4
Deferred income	5,968.0
Contract assets *	2,985.5
	32,687.4

•Contract asset is a right that is conditioned on something other than the passage of time therefore a contract asset is not a financial instrument. In Company''s contracts with customers, since the contractual right to payment arises only upon achievement of milestones specified in the contract, it is believed that the performance completed until the achievement of a particular milestone should be recorded as a contract asset under non-financial assets. In March 2019, Rs 52.6 million (March 2018: Rs Nil) was recognised as provision for expected credit losses on contract assets.

During the year ended 31 March 2019, Rs 1,440.6 million of contract assets pertaining to the long term contracts as of 1 April 2018 has been reclassified to trade receivables upon billing to customers on completion of milestones.

During the year end 31 March 2019 the company recognise revenue of Rs 5,848.8 million arising from opening deferred income as of 1 April 2018.

c) No significant adjustment expected in contract price for revenue recognised in statement of profit and loss.

d) Performance Obligation

Information about the company''s performance obligations are summarised below: Execution of long term contract for projects

a) Long term (Construction type) contracts - The long ter

---

Mar 31, 2018

1. Equity share capital (contd..):

(i) Movements in equity share capital (contd.. )

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of H2/- per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

* Pursuant to an ‘Open Offer’ in terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“SEBI SAST Regulations” ) completed in February 2016, the shareholding of the Acquirer/Promoter Group increased from 75% to 75.02%. In terms of regulation 7(4) of SEBI SAST Regulations read with rule 19A of Securities Contracts (Regulations) Rules, 1957, the Company/ Promoters had one year time from completion of open offer to comply with minimum public shareholding threshold. GE Energy Europe B.V. had completed sale of 42,565 out of 42,570 equity shares in the Company on 02 November 2016, pursuant to the approval by Securities and Exchange Board of India for on-market sell down, in accordance with the provisions of the SEBI Circular No. CIR/CFD/CMD/14/2015 dated 30 November 2015, to comply with the minimum public shareholding threshold. Further on 04 May 2017, GE Energy Europe BV sold its balance 5 equity shares held in the Company to another existing promoter, GE Grid Alliance B.V.

Nature of reserves Securities premium reserve

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

General reserve

Free reserve to be utilized as per provisions of the Companies Act, 2013.

Capital reserve

Capital reserve represents a reserve created for employee stock option scheme and will be utilized as per provisions of the Companies Act, 2013.

2. (b). Capital management

(i) Risk management

The Company’s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and

- maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings net of cash and cash equivalents) divided by “Total equity” (as shown in the Balance Sheet).

(ii)Dividends not recognized at the end of the reporting period

After the reporting date, on 23 May 2018, the Board of Directors of the Company has recommended a final dividend of H1.80 per equity share (“proposed dividend”) amounting to H460.9 million (excluding dividend distribution tax) for the financial year ended March 31, 2018, subject to approval of the shareholders at the ensuing Annual General Meeting. This dividend (plus the related dividend distribution tax) will be recorded in the period in which the shareholders approve it.

(i) Information about other provisions and significant estimates

Warranty- Warranty costs are estimated on the basis of contractual agreement, technical evaluation, past experience and global experiences. The timing of outflows is expected to be as per warranty periods as specified in various contracts.

Contract losses- Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the Statement of profit and loss. The timing of outflows is expected over the period specified in various contracts.

Tax litigation - Provision for tax litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.). The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

Note:

* In accordance with Ind AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended March 31, 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales Tax. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not recognized as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. Accordingly, Financial statements for the year ended March 31, 2018 and in particular, Sales and ratios in percentage of sales, are not comparable with the figures of the previous year.

* Includes income from unwinding of amortization for retention receivables

** During the year, the Company has transferred its “Global Finance Shared Business” to GE India Industrial Private Limited, a GE group company, together with the assets and manpower comprised therein on a ‘slump sale’ basis at a consideration of H65 million, resulting in a gain on such sale of H60.7 million. The said business was non-core business activity for the Company providing accounting services of transactional nature to various General Electric group companies both in India and outside India.

# Includes gain on mark to market of derivative financial instrument amounting to H232.1 million.

* Includes H304.2 million (March 31, 2017 H27 million) (net of reversals) on account of provision for slow moving items / obsolescence made during the year.

* The Company has not disclosed the fair values for financial instruments such as trade receivables, cash and bank balances, loans, unbilled receivables and others and investments, because their carrying amounts are a reasonable approximation of fair value.

# The Company has not disclosed the fair value for financial instruments such as borrowings, trade payables and other financial liabilities, because their carrying amounts are a reasonable approximation of fair value.

3: Financial instruments and fair value measurements (contd..)

(ii) Valuation technique used to determine fair value

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in deterring the fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

The following methods and assumptions have been used to estimate the fair values:

The Company enters into derivative financial instruments with banks. The valuation technique used to determine the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date, taking into account current interest rates and current exchange rates.

4: Financial risk management

The Company’s activities expose it to the following risks arising from the financial instruments

- market risk

- liquidity risk

- credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

Risk Management Framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company’s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company’s audit committee oversees how management monitors compliance with Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

5: Financial risk management (contd.. )

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

In general, it is presumed that credit risk has increased since initial recognition if the payments are more than 90 days past due. A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

(ii) Provision for expected credit loss

a. Security deposit and other advances

With regards to security deposit and other advances amounting to RS, 2,339.5 million (March 31, 2017 : RS, 1,746.7 million) the management believes these to be high quality assets with negligible credit risk. The management believes the parties to which these deposits and other advances have been made have strong capacity to meet the obligations and where the risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided on these financial assets.

b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At year end, the historical observed default and delay rates are updated and changes in the forward-looking estimates are analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other expenses.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all no derivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) 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 of interest rate risk and currency risk. Financial instruments affected by market risk includes deposits, derivative financial instruments, trade receivables, trade payables and other financials liabilities.

The Company uses derivative to manage market risks. All such transactions are carried out within the guideline as prescribed in the Company’s risk management policy.

(i) Foreign currency risk

The Company’s policy is to hedge all firm currency exposure at inception to the extent possible. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

6. Provision for employee benefits

(A) Liability for compensated absences

The liability for compensated absences cover the Company’s liability for Privilege Leave (as per Company Policy). The amount of the provision of H 79.7 million (March 31, 2017 - H 40.7 million) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next twelve months. The following amounts reflect leave that is not expected to be taken or paid within the next twelve months.

(B) Long term incentive plans

Out of the two erstwhile incentive plans namely ‘Deferred Incentive Plan’ and ‘Critical Skill Retainer Scheme’ for different categories of managerial employees to retain and attract experienced talent, the liability of Deferred Incentive Plan has been discharged in the year 2017-18. The final amounts payable to employees, under Critical Skill Retainer Scheme is expected to be paid by the year 2018-19 and liability against this scheme has been treated as short term incentive plan in the current year.

(C) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

7. Provision for employee benefits (contd.. )

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The following tables summaries the components of net employee benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans.

*During the current year 2017-18, the Company has transferred its “Global Finance Shared Business” to GE India Industrial Private Limited, a GE group company, together with the assets and manpower comprised therein on a ‘slump sale’ basis.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

Future mortality rate is based on published rates under the Indian Assured Lives Mortality (2006-08) Ult table.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The employees of the Company are assumed to retire at the age of 60 years.

The expected contribution payable to the plan next year is H50.0 million (March 31, 2017: H50 million)

Projected plan cash flow

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan based on past service of the employees as at the valuation date :

The weighted average duration to the payment of these cash flow is 7.62 years (March 31, 2017 : 9.64 years).

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points (50 basis points in respect of March 31, 2017)

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

i) Provident fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were RS,25.5 million (March 31, 2017 - RS,22.7 million).

ii) Provident fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognized Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

d). Sensitivity analysis

The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumptions used in preparing the sensitivity analyses.

Notes:

(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.

(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognized in the books in line with the principle of prudence.

(E) Others

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss:

(i) Employer’s Contribution to Superannuation Fund RS,.73.4 million (March 31, 2017 RS, 79.7 million)

(ii) Employer’s Contribution to ESI RS, 1.6 million (March 31, 2017 RS, 1.2 million)

8: Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company’s activities/business is reviewed regularly by the Company’s Managing Director assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and has no reportable segments in accordance with Ind AS - 108 ‘Operating Segments’.

** Non-current assets exclude financial instruments and deferred tax assets.

9. Share based Payments

The employees of the Company are entitled to the shares of General Electric Company, United States (ultimate holding company) under an equity-settled share-based compensation plan. The share based payments expense disclosed under employee benefits is not material, hence, the required disclosures have not been provided.

38: Related party transactions

Names of related parties and nature of relationship:

(i) Parties with whom control exist:

General Electric Company, United States Ultimate Holding Company

GE Energy International Cooperatief U.A., Netherlands Intermediate Holding Company

GE Albany Global Holdings BV, Netherlands Intermediate Holding Company

GE Grid Alliance B.V., Netherlands Intermediate Holding Company

Grid Equipments Private Limited, India Immediate Holding Company

(ii) Key managerial personnel Mr. Sunil Wadhwa (Managing Director w.e.f. April 4, 2017)

Mr. Gaurav Manoher Negi (Whole time Director and Chief Finance Officer w.e.f July 26, 2016)

Mr. Nagesh Tilwani (Whole time Director w.e.f December 21, 2016)

Mr. Rathindra Nath Basu (Managing Director up to February 28, 2017)

Mr. S.M.Momaya (Whole time Director and Chief Financial Officer upto May 31, 2016)

Mr. Ravi Kumar Krishnamurthy (Whole time Directors and Head AIS business upto December 20, 2016)

Mr. Bhanu Bhushan (Independent Director)

Mr. Kirit S Parikh (Independent Director)

Mr. Rakesh Nath (Independent Director)

Ms. Neera Sagi (Independent Director w.e.f July 26, 2016)

#The total amount of dividend remittance in absolute value is Rs,76,626 for FY 2016-17, but for reporting purpose rounded up to 0.1 million.

# # In view of loss during the financial year ended March 31, 2017 (in terms of Section 198 of Companies Act, 2013), (a) in terms of Part II of Schedule V of Companies Act, 2013 approval of Shareholders by way of special resolution was obtained in annual general meeting dated 26 July 2017 for the payment of managerial remuneration (excluding the perquisites not included for the computation of the ceiling on remuneration as per Part II of Schedule V of Companies Act, 2013 viz. leave encashment at the end of tenure, contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income-tax Act, 1961 and gratuity) of Rs,17.0 million, Rs,1.8 million and Rs,10.3 million to Mr. Rathindra Nath Basu, Mr. S. M. Momaya and Mr. Ravi Kumar Krishnamurthy, respectively, and (b) amounts of Rs,14.5 million, Rs,16.1 million and Rs,9.6 million recoverable from Mr. Rathindra Nath Basu, Mr. S. M. Momaya and Mr. Ravi Kumar Krishnamurthy, respectively, as excess remuneration have been refunded by them during the year 2017-18.

Notes:

1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various forums / authorities.

2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does not expect any reimbursements in respect of above contingent liabilities.

3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary course of business. The Company have challenged these litigation with respective authorities. Based on the facts currently available, management believes that likelihood of outflow of resources is remote and hence the Company has not recognized these litigations under contingent liability as well.

4) During the year, the Company’s internal reviews identified some weaknesses in carrying out certain testing procedures in respect of certain products. The management has taken corrective steps to strengthen these procedures and is communicating with the relevant stakeholders. No claims have been made on the Company so far. At this point of time, it is not possible to assess/estimate the extent and impact, if any, of the same.

# The Company has determined the stage of completion of contracts on the basis of contract milestones which reflects the physical proportion of contract being completed.

* percentage of completion method

10. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of account.

Note: The information relates to such vendors identified as micro and small enterprises, on the basis of information available with the Company.

* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.

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Mar 31, 2017

1. Corporate and General Information

GE T&D India Limited (formerly ALSTOM T&D India Limited) (‘GETDIL’ or ‘the Company’) is a publicly listed Company, incorporated on 13 March 1957 in India under the provisions of the Indian Companies Act.

The Company in the business of building the power transmission and distribution infrastructure. It has a portfolio of products, solutions and services, comprising the entire range of transmission equipment up to Extra and Ultra High Voltages (765 kV and beyond), including air-insulated switchgear (AIS) and locally manufactured power transformers and gas-insulated switchgear (GIS). It also provides power electronics solutions to create super highways and offers advanced power management Smart Grid solutions for transmission and distribution including renewable energy integration.

2. Equity share capital

(i) Movements in equity share capital

Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of Rs. 2/- per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets on winding up. The equity shares are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

ii) Number of equity shares held by immediate holding company, ultimate holding company and their subsidiaries

3 (a). Other equity

Nature of reserves Securities premium reserve

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

General reserve

Free reserve to be utilised as per provisions of the Act.

3 (b). Capital management

(i) Risk management

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and

- maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The Company monitors capital using a gearing ratio, which is calculated as:

Net debt (total borrowings net of cash and cash equivalents) divided by “Total equity” (as shown in the Balance Sheet).

On 24 May 2017, the Board of Directors of the Company has recommended a final dividend of Rs. 1.80 per equity share (“proposed dividend”) for the financial year ended 31 March 2017, subject to approval of the shareholders at the ensuing Annual General Meeting.

The Central Government in consultation with National Advisory Committee on Accounting Standards has amended the Companies (Accounting Standards) Rules, 2006 (“amended rules”), vide notification issued by Ministry of Corporate Affairs (“MCA”) dated 30 March 2016. As per the amended rules, the proposed dividend after the reporting date but before the financial statements are approved for issue, will not be recognised as a liability at the reporting date (amended Accounting Standard 4 - Contingencies and Events Occurring After the Balance Sheet Date). Additionally, as per General Circular No. 04/2016 dated 27 April 2016 issued by MCA, the amended rules should be used for preparation of the financial statements for accounting periods commencing on or after 30 March 2016.

Accordingly, the Company has not recorded Rs. 460.9 million as liability for proposed dividends (for the year ended 31 March 2017) (plus corporate dividend tax) as at 31 March 2017.

4. Provisions

(i) Information about individual provisions and significant estimates

Warranty- Warranty costs are estimated on the basis of contractual agreement, technical evaluation, past experience and global experiences. The timing of outflows is expected to be as per warranty periods as specified in various contracts.

Contract losses- Provision for contract losses are based on difference between total estimated revenues and total estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately in the income statement. The timing of outflows is expected over the period specified in various contracts.

Tax litigation - Provision for tax litigation represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added Tax, Sales Tax, etc.). The timing of outflows is determinable only on receipt of judgment / decisions pending with various forums / authorities.

(ii) Movements in provisions

Movements in each class of provision during the financial year, are set out below:

5: First-time adoption of Ind AS Explanation of transition to Ind AS

These are Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet on the date of transition i.e. 1 April 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and an explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Business Combinations

As per Ind AS 101, at the date of transition, the Company may elect not to restate business combinations that occurred before the date of transition. If the Company reinstates any business combinations that occurred before the date of transition, then it restates all later business combinations from that same date. The Company has opted to restate all the business combinations prospectively occurring from the transition date.

A.1.2 Property, plant and equipment

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

A.1.3 Determining whether an arrangement contains a lease

Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement)

The Company has elected to avail of the above exemption.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS are consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Impairment of financial assets based on expected credit loss model.

- Determination of discounted value for financial instruments carried at amortised cost.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transaction to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from the date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financials assets and liabilities derecognised as a result of past transaction was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

B: Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Explanations for reconciliation of above items as previously reported under previous GAAP to Ind AS I. Fair valuation of revenue

Under previous GAAP, contract revenue was recorded at transaction price. Under Ind AS 11, contract revenue is measured at the fair value of the consideration received or receivable. A portion of revenue is retained by the customer (retention money) at the time of making the payment, which is released by the customer at the end of the Project. Therefore, the arrangement effectively constitutes a financing transaction as the customer makes the payment on deferred settlement terms. Contractual maturity represents the expected date of collection of retention money. Accordingly, the Company discounts the related retention money over the contractual maturity period to reduced revenue, which is recognised as finance income over the contractual maturity period.

II. Expected credit loss

On transition to Ind AS, the Company has recognised impairment loss on trade receivables measured at amortised cost based on the expected credit loss model as required by Ind AS 109. Consequently, trade receivables measured at amortised cost have been reduced with a corresponding decrease in retained earnings on the date of transition and there has been an incremental provision for the year ended 31 March 2016.

III. Discounting at amortised cost

Based on Ind AS 109, assets in form of security deposit (that are refundable in cash), earnest money deposit and liabilities in form of retention payables and provisions in form of warranty, contract loss have been accounted at amortised cost using the effective rate method.

A. Loans (Security deposit)

The impact arising from the change is summarised as follows:

B. Other current assets (Earnest money deposit) The impact arising from the change is summarised as follows:

C. Trade Payables

As per Ind AS 109, the company applies the fair valuation principles on the retention payables due to its vendors. At the time of initial recognition, these liabilities are recognised at fair value. Subsequently, these are measured at amortised cost.

D. Non Current Provisions

Under Ind AS, provisions are measured at discounted amounts, if the effect of time value is material. Accordingly, non current provisions comprising of long term warranty and contract loss have been discounted to their present values.

IV. Mark to market of hedging instruments Other financial liabilities

Under Ind AS 109, it is required to de-recognise the unamortized premium at the opening balance sheet date and going forward it is required to account for the Mark To Market (MTM) gains as well, which were previously ignored.

V. Proposed dividend and tax thereon

Under the previous GAAP, dividends proposed by the board of directors after the reporting date but before the approval of the financial statements were considered to be adjusting events and accordingly recognised (along with related dividend distribution tax) as liabilities at the reporting date. Accordingly, provision for proposed dividend and dividend distribution tax recognised under previous GAAP has been reversed and recorded in the period in which it has been approved by the shareholders.

VI. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amount included in the net interest expenses on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss. Under the previous GAAP, these measurement were forming part of statement of profit and loss for the year.

VIII: Excise duty

Under previous GAAP, revenue from sale of goods was presented net of excise duty on sales. Under Ind AS the revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the statement of profit and loss as an expense. This has resulted in an increase in revenue from operation and expenses for the year ended 31 March 2016. The total comprehensive income for the year ended and equity as at 31 March 2016 has remained unchanged.

X. Deferred Tax Assets

Under previous GAAP, tax expense in the financial statements was computed by performing line by line addition of tax expense. Under Ind AS, deferred taxes are also recognised on undistributed profits. Deferred tax are recognised on the adjustments made on transition to the Ind AS.

6: Financial instruments and fair value measurements- accounting classification A. Accounting classifications and fair values

The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.

(i) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are :

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

(ii) Valuation technique used to determine fair value

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in the active markets, their fair value is measured using a valuation techniques including the estimated present value technique. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments 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.

7: Financial risk management

The company’s activities expose it to the following risks asrising from the financial instruments-market risk liquidity risk credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements

Risk Management Framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The Company’s risk management is carried out by a central treasury team department under policies approved by the board of directors.

The Company’s audit committee oversees how management monitors compliance with Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward looking information.

In general, it is presumed that credit risk has increased since initial recognition if the payments are more than 90 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Provision for expected credit loss

a. Security deposit and other advances

With regards to security deposit and other advances amounting to Rs. 1,746.7 million (31 March 2016 : Rs. 2,671.5 million; 1 April 2015 : Rs. 4,525 million) the management believes these to be high quality assets with negligible credit risk. The management believes the parties to which these deposits and other advances have been made have strong capacity to meet the obligations and where the risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided on these financial assets.

b. Trade receivables (Expected credit loss for trade receivables under simplified approach)

Trade receivables consists of a large number of customers spread across diverse industries and geographical areas.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At year end, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

(B) liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the business requirements the treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The company had access to the following undrawn borrowing facilities at the end of the reporting period:

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all nonderivative financial liabilities, and net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company’s income or the value of its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return.

The Company uses derivative to manage market risks. All such transactions are carried out within the guideline as prescribed in the Company’s risk management policy.

(i) Foreign currency risk

Company’s policy is to hedge all firm currency exposure at inception to the extent possible. However, for individual transactions exceeding a value equivalent to Rs 6.9 million or all transactions for a project wherein the aggregate of the exposures exceeding a value equivalent to Rs 6.9 million, currency hedging is recommendatory. Individual foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.

8. Provision for employee benefits

(A) Liability for compensated absences

The liability for compensated absences cover the Company’s liability for Privilege Leave and Sick Leave (as per Company Policy). The amount of the provision of Rs. 40.7 million (31 March 2016 - Rs. 37.6 million, 1 April 2015 - Rs. 33.1 million) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next twelve months. The following amounts reflect leave that is not expected to be taken or paid within the next twelve months.

(B) Long Term Incentive plans

The Company has two incentive plans namely ‘Deferred Incentive Plan’ and ‘Critical Skill Retainer Scheme’ for different categories of managerial employees to retain and attract experienced talent. Under these plans, employees will receive certain annual grants, which will be paid over a pre-determined future periods. Each pay-out is independently amortised over a period from grant date to final pay-out date. Since the Deferred Incentive Plan is withdrawn / foreclosed, the entire liability will be discharged in 2017 accordingly this plan will be treated as short term incentive plan in the current year.

In respect of ‘Critical Skill Retainer Scheme’, the Company’s liability is actuarially determined (using the projected unit credit method) at the end of each year. Actuarial gains and losses arising from effects of changes in actuarial valuations are recognised in the Statement of Profit and Loss in the year in which they arise.

(C) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

Future mortality rate is based on published rates under the Indian Assured Lives Mortality (2006-08) Ult table.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The employees of the Company are assumed to retire at the age of 60 years.

The expected contribution payable to the plan next year is Rs 50.0 million (31 March 2016: Rs 99.2 million; 1 April 2015: Rs 76.0 million)

Projected plan cash flow

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan based on past service of the employees as at the valuation date :

vii). Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate.

The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.

(D). Provident Fund

i) Provident Fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were Rs. 22.7 million (Previous year - Rs. 21.8 million).

ii) Provident Fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

9. Segment information

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company is engaged in the business relating to products, projects and services for electricity transmission and related activities. Accordingly, the Company’s activities/business is reviewed regularly by the Company’s Managing Director assisted by an executive committee from an overall business perspective, rather than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment, and no reportable segments in accordance with Ind AS - 108 ‘Operating Segments’.

10. Share based Payments

The employees of the Company are entitled to the shares of General Electric Company, United States (ultimate holding company) and ALSTOM, France (erstwhile ultimate holding company) under an equity-settled share-based compensation plan. The share based payments expense disclosed under employee benefits expense is not material hence the required disclosures has not been provided.

11. Specified Bank Notes

As per the notification issued by Ministry of Corporate Affairs dated 30 March 2017, amended the Schedule III to the Companies Act, 2013 under which Company shall require to disclose the details of ‘Specified Bank Notes’ held and transacted during the period from 08 November 2016 to 30 December 2016.

12. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of account.

13. The Company’s significant leasing arrangements are primarily in respect of operating leases for premises (office, residential, warehouses etc.) and vehicles. The aggregate lease rentals charged to the statement of Profit and Loss are Rs. 124.7 million (2015-16 Rs. 121.9 million).

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Mar 31, 2014

1. GENERAL INFORMATION

ALSTOM T&D India Limited (''ATDIL'' or ''the Company'') is a publicly listed company, incorporated on March 13, 1957 as The English Electric Company of India (Private) Limited with its registered office at NCT of Delhi and Haryana. The Company''s operations encompass the operations of some of the erstwhile companies (inter-alia including the operations of The General Electric Company of India Limited formed in the year 1911) which merged into the Company.

The Company has been building the power transmission and distribution infrastructure to support economic growth in the country. It has a portfolio of products, solutions and services, comprising the entire range of transmission equipment up to Extra and Ultra High Voltages (765 kV and beyond) including air-insulated switchgear (AIS) and locally manufactured power transformers and gas-insulated switchgear (GIS). It also provides power electronics solutions (HVDC, FACTS) to create super highways and offers highly advanced power management Smart Grid solutions for transmission and distribution including renewable energies integration.

2. SHARE CAPITAL

a. Rights, preferences and restrictions attached to equity shares:

The Company has one class of equity shares having a par value of Rs.2/- per share. Each equity share holder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

e. Pursuant to the ''Open Offer'' made by Alstom Holdings, France (Acquirer) in terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 which was completed in February 2013, the Acquirer/ Promoter Group shareholding increased from 73.40% to 80.31% as a result of their acquisition of 16,542,372 equity shares. Consequently, the public shareholding reduced to 19.69%.

During the current year, in order to comply with the Securities Contracts (Regulation) Rules, 1957 and clause 40A of the Equity Listing Agreement with Stock Exchanges, which requires the Company to maintain a minimum public shareholding of 25%, the Company issued and allotted 16,942,500 equity shares of face value of Rs.2 each at an Issue Price of Rs.165 per equity share (including a premium of Rs.163 per equity share) by way of an Institutional Placement Programme (IPP) to Qualified Institutional Buyers in terms of Chapter VIII-A of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. Upon issue and allotment of the above mentioned equity shares, (i) the promoters shareholding in the Company got reduced from 80.314% as hitherto to 74.999998% and public shareholding increased from 19.686% to 25.000002%. (ii) the Company''s paid up share capital and securities premium account stood at Rs.512.1 million and Rs.2,761.6 million, respectively.

f. The original equity shares of Rs.10/- each of the Company were sub-divided into five shares of Rs.2/- each with effect from October 31, 2008.

g. Prior to sub-division of shares: (i) 15,750,000 equity shares of Rs.10/- each were allotted as fully paid bonus shares by capitalisation of General Reserve, Securities Premium Account and Surplus in Statement of Profit and Loss.

(ii) 19,871,327 equity shares of Rs.10/- each were issued and allotted as fully paid up shares pursuant to the scheme of amalgamation with The General Electric Company of India Limited in 1992-93 (11,520,000 shares), GEC Power Engineering Services of India Limited (PESIL) in 1993-94 (330,000 shares), ALSTOM T&D Distribution Transformers Limited in 2000-01 (87,992 shares) and with AREVA T&D Systems India Limited, AREVA T&D Instrument Transformers India Private Limited and AREVA T&D Lightning Arresters Private Limited in 2007 (7,933,335 shares) without payment being received in cash.

(iii) During 1994-95, the Company offered 9,950,000 equity shares of Rs.10/- each to the existing shareholders in the ratio of 1 share for every 3 shares held at a premium of Rs.40/- per share as per letter of offer dated May 10, 1994. The shares, barring 1,034 shares, which were kept in abeyance for technical reasons, were allotted at the meeting of Committee of Directors held on July 28, 1994. Of the 1,034 shares of Rs.10/- each, kept in abeyance, 514 shares of Rs.10/- each, were allotted upto 2001-02.

3. DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS

3.1 Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

3.2 Provident Fund

a) Provident Fund - defined contribution plan

The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were Rs.20.1 million (Previous year - Rs.19.6 million).

b) Provident Fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

3.3 Others

In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of Profit and Loss. (i) Employer''s Contribution to Superannuation Fund Rs.74.4 million (Previous year Rs.69.4 million) (ii) Employer''s Contribution to ESI Rs 2.0 million (Previous year Rs.1.8 million)

4. EMPLOYEE SHARE BASED PAYMENTS

Certain employees of the Company have been granted stock options, stock appreciation rights and free performance shares by the Company''s ultimate parent ALSTOM SA France. However, cost for such grant is not recharged by the ultimate parent to the Company. Accordingly, the Company has not accounted for such options in its books of account.

As at As at March 31, 2014 March 31, 2013

5. CONTINGENT LIABILITIES

(i) Demands relating to Sales tax matters 256.5 125.0

Excise duty and Service tax matters 236.3 211.8

(ii) Claims against the Company not acknowledged as debts pertaining to legal cases 69.9 65.8 and provident fund.

6. UTILISATION OF IPP PROCEEDS AND SHARE ISSUE EXPENSES

Out of the proceeds of Rs.2,795.5 million from the issue of shares, Rs.2,493.2 million has been utilised for repayment of loans (including interest) and balance proceeds was used to meet the working capital requirement as envisioned in the Prospectus dated 30th November 2013.

Expenses amounting to Rs.44.0 million incurred in connection with the issue is set off against securities premium account.

7. EXCEPTIONAL ITEMS

Exceptional item in previous year represents profit on sale of land and building at Perungudi for a consideration of Rs.223.6 million.

8. PREVIOUS YEAR CORRESPONDING FINANCIAL INFORMATION

Previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification.

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Mar 31, 2013

1. GENERAL INFORMATION

ALSTOM T&D India Limited (''ATDIL'' or ''the Company'') is a publicly listed Company, incorporated on March 13, 1957 as The English Electric Company of India (Private) Limited with its registered office at NCT of Delhi and Haryana. The Company''s operations encompass the operations of some of the erstwhile companies (inter-alia including the operations of The General Electric Company of India Limited formed in the year 1911) which merged into the Company.

The Company has been building the power transmission and distribution infrastructure to support economic growth in the country. It has a portfolio of products, solutions and services, comprising the entire range of transmission equipment up to Extra and Ultra High Voltages (765 kV and beyond) including air-insulated switchgear (AIS) and locally manufactured power transformers and gas-insulated switchgear (GIS). It also provides power electronics solutions (HVDC, FACTS) to create super highways and offers highly advanced power management Smart Grid solutions for transmission and distribution including renewable energies integration.

During the year 2009, ALSTOM Holdings, France and Schneider Electric Industries SAS entered into consortium agreement to acquire the global T&D business of AREVA SA, the then holding Company, such that transmission business would be allocated to ALSTOM group and the distribution business to Schneider group of companies.

During the previous period, the demerger of the distribution business of the Company was completed. The name of the Company was changed to ALSTOM T&D India Limited from AREVA T&D India Limited on January 31, 2012.

a. Rights, preferences and restrictions attached to equity shares:

The Company has one class of equity shares having a par value of Rs. 2/- per share. Each equity share holder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. The process of ''Open Offer'' made by Alstom Holdings, France (Acquirer) in terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 was completed in February 2013 and in terms of the same, 16,585,241 equity shares of the Company were tendered by the Shareholders of the Company and 16,542,372 equity shares were acquired by the Acquirer. The shareholding in the Company of the Acquirer/Promoter Group, as a result increased to 80.31% from 73.40% as hitherto.

The Acquirer/Promoter Group have committed themselves to reduce their shareholding in the Company within the regulatory time frame, such that the minimum public shareholding of the voting share capital of the Company is maintained, to enable the Company''s Shares continuing to be listed.

c. The original equity shares of Rs. 10/- each of the Company were sub-divided into five shares of Rs. 2/- each with effect from October 31, 2008.

d. Prior to sub-division of shares:

i. 15,750,000 equity shares of Rs.10/- each were allotted as fully paid bonus shares by capitalisation of General Reserve, Securities Premium Account and Surplus in Statement of Profit and Loss.

ii. 19,871,327 equity shares of Rs.10/- each were issued and allotted as fully paid up shares pursuant to the scheme of amalgamation with The General Electric Company of India Limited in 1992-93 (11,520,000 shares), GEC Power Engineering Services of India Limited (PESIL) in 1993-94 (330,000 shares), ALSTOM T&D Distribution Transformers Limited in 2000-01 (87,992 shares) and with AREVA T&D Systems India Limited, AREVA T&D Instrument Transformers India Private Limited and AREVA T&D Lightning Arresters Private Limited in 2007 (7,933,335 shares) without payment being received in cash.

iii. During 1994-95, the Company offered 9,950,000 equity shares of Rs.10/- each to the existing shareholders in the ratio of 1 share for every 3 shares held at a premium of Rs. 40/- per share as per letter of offer dated May 10, 1994. The shares, barring 1,034 shares, which were kept in abeyance for technical reasons, were allotted at the meeting of Committee of Directors held on July 28, 1994. Of the 1,034 shares of Rs.10/- each, kept in abeyance, 514 shares of Rs.10/- each, were allotted upto 2001-02.

2.1 Provident Fund

a) The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner. The amounts debited to the Statement of Profit and Loss in this regard during the current year were Rs.20 million (Previous period - Rs. 24 million).

b) Provident Fund - defined benefit plan

The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

* As the Provident Fund Trust follows the April to March year for accounting, the information provided by the Actuary is for the twelve months period ended March 31, 2012.

c) Total contribution charged to the Statement of Profit and Loss for the aforesaid schemes amounts to Rs. 86.35 million (Previous period - Rs. 120.25 million).

Notes:

(i) In the absence of relevant information from the Actuary, the above details do not include the composition of Plan Assets.

(ii) The excess of the Plan Assets over the liability for the Benefit Obligation as at March 31, 2013 has not been recognised in the books in line with the principle of prudence enunciated in Accounting Standard 1 on Disclosure of Accounting Policies.

3. EMPLOYEE SHARE BASED PAYMENTS

Certain employees of the Company have been granted stock options, stock appreciation rights and free performance shares by the Company''s ultimate parent ALSTOM SA France. However, cost for such grant is not recharged by the ultimate parent to the Company. Accordingly, the Company has not accounted for such options in its books of account.

4. CONTINGENT LIABILITIES IN RESPECT OF

(i) Sales tax, Service tax and Excise matters. 336.82 172.12

(ii) Claims against the Company not acknowledged as debts pertaining to legal cases and provident fund. 65.79 46.77

5. SEGMENT INFORMATION

Based on the dominant source and nature of risks and returns of the Company, management has identified its business segment as its primary reporting format. The Company is engaged in the business relating to products, projects and systems for electricity transmission and related activities only, which has been defined as one business segment and accordingly disclosure requirement as per Accounting Standard 17 on Segment Reporting for primary basis segment are not applicable.

Note: Figures in brackets are for the previous period.

The accounting policies applicable to the reportable geographical segments are the same as those used in the preparation of the financial statements as setout above. Segment revenue from external customers includes amounts which can be directly identified to the geographical segment or allocated on a reasonable basis and does not include interest income. Segment assets include all operating assets used by the segment and consist primarily of trade receivables, inventories and fixed assets. Capital expenditure comprises additions to fixed assets including capital work-in-progress by geographical area in which assets are located.

6. RELATED PARTY DISCLOSURES

6.1 Names of related parties and nature of relationship:

(i) Ultimate Holding Company ALSTOM SA, France

(ii) Intermediate Holding Companies ALSTOM Grid Finance BV, Netherlands (w.e.f. February 1, 2012)

ALSTOM Holdings, France

T&D Holding, France (upto January 23, 2012)

ALSTOM Sexant 5 SAS, France (upto March 30, 2012)

(iii) Immediate Holding Company Grid Equipments Limited, India (w.e.f. February 1, 2012)

ALSTOM Grid SAS, France (upto January 23, 2012)

(iv) Other related parties with whom transactions have taken place during the period:

7. Non Funded Facilities from Certain Banks are Secured by way of First Charge on Inventories, Book Debts and Other Moveable Assets.

8. CAPITAL GAINS TAX

During the year, the Company sold certain immovable properties. Capital gains tax on such sale has been provided based on the actual sales considerationas per the sale deed. The Registering Authority has not accepted the value as per the sale deed and is in the process of fixing the appropriate value for these properties for the purpose of stamp duty. Pending such determination, the actual sale consideration is treated as the market value of the properties. The Company has also obtained a valuation report from a professional valuer for the subject properties and the same is comparable with the actual sale consideration.

9. EXCEPTIONAL ITEMS

Exceptional item represents profit on sale of land and building at Perungudi for a consideration of Rs. 223.61 million. In the previous period, the exceptional items represents profit on sale of land and building at Puducherry and Bengaluru for a consideration of Rs. 33 million and Rs. 122.43 million respectively.

10. REORGANISATION OF ALSTOM TRANSMISSION AND DISTRIBUTION BUSINESS DURING THE PREVIOUS PERIOD:

During the previous period ended March 31, 2012, a Scheme of Arrangement (the "Scheme") between the Company (Transferor Company), Smartgrid Automation Distribution and Switchgear India Limited (now called Schneider Electric Infrastructure Limited) (the Transferee Company) and their respective Shareholders and Creditors for demerger of Company''s "Distribution business" into the Transferee Company under Section 391-394 of The Companies Act,1956 with an appointed date of April 1, 2011, was sanctioned by the Hon''ble High Courts of Gujarat and Delhi, respectively on September 19, 2011 and October 24, 2011.

The Scheme has been given effect to on November 26, 2011 (effective date) with the filing of certified true copies of orders of Hon''ble High Courts with therespective Registrar of Companies at ''Gujarat, Dadra and Nagar Havelli'' and ''NCT of Delhi and Haryana''.

The demerged business undertaking has been transferred and vested as of the appointed date being April 1, 2011 and the Company has accounted for the same by recording the transfer of relevant assets and liabilities of the demerged business in terms of the approved Scheme at their book values as on the appointed date with an equivalent withdrawal from the Company''s reserves for Rs. 2,383.32 million resulting in no net gain or loss to the Company as follows:

11. PREVIOUS PERIOD CORRESPONDING FINANCIAL INFORMATION

During the previous period, the Company''s financial year was changed from calendar year to April through following March. Accordingly, the previous period figures represent the period of fifteen months from January 1, 2011 to March 31, 2012 whereas the current year financial statements are for the year ended March 31, 2013.

As described in note 50 above, the distribution business of the Company was demerged during the previous period effective from November 26, 2011, with the appointed date of April 1, 2011. The previous period financial statements include the financial information for the demerged business for the quarter ended March 31, 2011.

Therefore, the current year and previous period financial information is not strictly comparable.

The financial statements for the 15 months period ended March 31, 2012 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2013 are prepared as per Revised Schedule VI. Accordingly, the previous period figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous period figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2012

1 BACKGROUND

ALSTOM T&D India Limited ('ATDIL' or 'the Company') (formerly AREVA T&D India Limited) is a publicly listed company, incorporated on March 13,1957 as The English Electric Company of India (Private) Limited with its registered office at NCT of Delhi and Haryana. The Company's operations encompass the operations of some of the erstwhile companies (inter-alia including the operations of The General Electric Company of India Limited formed in the year 1911) which merged into the Company.

The Company has been building the power transmission and distribution infrastructure to support economic growth in the country. It has a portfolio of products, solutions and services, comprising the entire range of transmission equipment up to Extra and Ultra High Voltages (765 kVand beyond) including air-insulated switchgear (AIS) and locally manufactured power transformers and gas-insulated switchgear (GIS). It also provides power electronics solutions (HVDC, FACTS) to create super highways and offers highly advanced power management Smart Grid solutions for transmission and distribution including renewable energies integration.

During the year 2009, ALSTOM Holdings, France and Schneider Electric Industries SAS entered into consortium agreement to acquire the global T&D business of AREVA SA, the then holding company, such that transmission business would be allocated to ALSTOM group and the distribution business to Schneider group of companies.

During the current period, the demerger of the distribution business of the Company was completed. The name of the Company was changed to ALSTOM T&D India Limited from AREVAT&D India Limited on January 31, 2012. As at As at

March 31, 2012 December 31, 2010

2. CONTINGENT LIABILITIES IN RESPECT OF

(i) Income Tax matters relating to disallowances which are under litigation before the - 150,051 various appellate forums for various assessment years up to March 31, 2012

(Net of provisions)

(ii) Sales tax matters primarily relating to demands on account of non collection of 172,123 138,897 declaration forms

(iii) Claims against the Company not acknowledged as debts 46,770 123,575

The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible outflows are dependent on the outcome of the legal proceedings and therefore cannot be predicted.

The Company engages reputed professional advisers to protect its interest and has been advised that it has reasonable chances of success in these appeals.

3. REORGANISATION OF ALSTOM TRANSMISSION AND DISTRIBUTION BUSINESS

On January 20,2010, ALSTOM Holdings and Schneider Electric Industries SAS ("acquirers") entered into a share purchase agreement with AREVA SA., through ALSTOM Sextant 5 SAS, a special purpose vehicle, for acquisition of the Global T&D Business of AREVA SA effective from June 7, 2010. In terms of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, in India, the acquirers during the previous year made a public announcement on May 28, 2010 to the shareholders of the Company and made an open offer to purchase up to 20% of the issued share capital of the Company. The offer opened on November 6, 2010 and closed on November 25, 2010. On December 3, 2010, the acquirers had informed the Company confirming the completion of the open offer formalities. Thereafter the Promoter Group's holding stood increased to 175,492,524 (73.40%) equity shares after acquiring 2,906,624 (1.22%) equity shares from the open offer.

Pursuant to the open offer, a Scheme of Arrangement (the "Scheme") between the Company (Transferor Company), Smart grid Automation Distribution and Switchgear Limited (now called Schneider Electric Infrastructure Limited) (the Transferee Company) and their respective Shareholders and Creditors for demerger of Company's "Distribution business" into the Transferee Company under Section 391-394 of The Companies Act, 1956, was sanctioned by the Hon'ble High Courts of Gujarat and Delhi, respectively on September 19, 2011 and October 24,2011.

The Scheme contained a detailed plan for separation of operations and under the Scheme, ALSTOM T&D India Limited (formerly AREVA T&D India Limited) shareholders will continue to remain the shareholders of ALSTOM T&D India Limited (formerly AREVA T&D India Limited), and they will also be issued shares in Smart grid Automation Distribution and Switchgear Limited in the ratio of i:l. The Scheme has been given effect to on November 26, 2011 (effective date) with the filing of certified true copies of orders of Hon'ble High Courts with respective Registrar of Companies at'Gujarat, Dadraand Nagar Haveli' and 'NCT of Delhi and Haryana'.

The transfer of demerged business undertaking has been transferred and vested as of the effective date and the Company has accounted for the same by recording the transfer of relevant assets and liabilities ofthe demerged business in terms of the approved Scheme at their book values as on the appointed date with an equivalent withdrawal from the Company's reserves for Rs. 2,383,318 thousand resulting in no net gain or loss to the Company as follows:

4. INVESTMENT IN SUBSIDIARY COMPANIES

(i) A wholly owned subsidiary company, Smart grid Automation Distribution and Switchgear Limited (now called Schneider Electric Infrastructure Limited, the Transferee company) was incorporated to vest the Company's' distribution business with 500,000 shares of Rs 2/- each as issued, subscribed and nil-paid up share capital for which the Company contributed Rs 1000 thousands. Following issuance and allotment of shares by the Transferee company in terms of the Scheme, the shares held by the Company and its nominees in the Transferee company were cancelled and the liability, if any, of the Company and its nominees stood discharged. Accordingly, Smart grid Automation Distribution and Switchgear Limited (now called Schneider Electric Infrastructure Limited) ceased to be a subsidiary of the Company following the Scheme having been given effect to on November 26, 2011, with an appointed date April l, 2011.

(ii) The entire shareholding of 500,000 (Previous year - 500,000) Equity Shares of Rs. 2 each in the wholly owned subsidiary - Energy Grid Automation Transformers and Switchgear India Limited have been transferred as part of Net Assets of the 'Distribution business' to the Transferee Company, Smart grid Automation Distribution and Switchgear Limited (now called Schneider Electric Infrastructure Limited).

(iii) The entire shareholding of 500,000 (Previous year - 500,000) Equity Shares of Rs. 2 each in wholly owned subsidiary, Grid Equipments Limited has been transferred by way of sale at face value, with requisite approvals, on January 4, 2012 to ALSTOM Grid Finance BV, a member of the promoter group.

Following above, the Company does not have any subsidiaries as at March 31, 2012. During the current period, there were no transactions with the subsidiaries other than those described above including final divestiture in them by the Company.

5. SEGMENT INFORMATION

Based on the dominant source and nature of risks and returns of the Company, management has identified its business segment as primary reporting format. The Company has been engaged in the business of designing, manufacturing and commissioning products, projects and systems for electricity transmission and distribution and accordingly had only one business segment. As described in detail in note 5 above, during the current financial period, pursuant to obtaining the Court orders and their filing with the Registrar of Companies on November 26, 2011, the Company demerged its distribution business with the appointed date being April l, 2011. However, having regard to the in- principle approval to the proposed Scheme of Arrangement for demerger of the Distribution Undertaking of the Company in April 2011, the Company decided to identify and report the Transmission and Distribution businesses as segments for the quarter ended March 31, 2011. Thereafter the Distribution business comprised discontinuing operations till November 26,2011 when the Court Orders were filed with the Registrar of Companies. Following the vesting of the Distribution business to the transferee company during the quarter ended December 31, 2011 with the appointed date being April 1, 2011, within the current period, the Company has only one business segment i.e. business relating to products, projects and systems for electricity transmission. Accordingly, disclosures requirements as per Accounting Standard 17 - Segment Reporting, are not applicable.

The accounting policies applicable to the reportable geographical segments are the same as those used in the preparation of the financial statements as set out above. Segment revenue from external customers includes amounts which can be directly identified to the geographical segment or allocated on a reasonable basis and does not include interest income. Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets. Capital expenditure comprises additions to fixed assets including capital work in progress by geographical area in which assets are located.

6. EMPLOYEE BENEFITS

6.1 Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognized in the Profit and Loss Account and the funded status and amounts recognized in the balance sheet for the respective plans.

The details of actuarial valuation as per the certificate furnished by independent actuary are given below:

6.2 Provident Fund

a) The Company contributes Provident Fund for certain selected employees to the Regional Provident Fund Commissioner. The amounts debited to the Profit and Loss Account in this regard during the current period were Rs 24,003 thousand.

b) Provident Fund - defined benefit plan

The Company also contributes Provident Fund for other selected employees into a recognized Provident Fund Trust set up for the Company and contributions to the Trust are expensed to Profit and Loss Account when such amounts are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if any, with regard to the interest due on contributions as per the rate notified by the Government.

During the current period, the liability for the interest differential has been recognized based on its actuarial valuation. The details of actuarial valuation as per the certificate furnished by independent actuary are given below:

Notes:

(i) In the absence of relevant information from the Actuary, the above details do not include the composition of Plan assets.

(ii) The current year is the first year of actuarial valuation being done for Provident Fund, in view of the issuance of the Guidance Note by the Institute of Actuaries of India. Accordingly, previous year figures have not been provided.

(iii) The excess of the plan assets over the liability for the benefit obligation as at March 31, 2012 has not been recognized in the books in line with the principle of prudence enunciated in Accounting Standard on Disclosure of Accounting Policies AS-1.

7. EMPLOYEE SHARE BASED PAYMENTS

Certain employees of the Company have been granted stock options, stock appreciation rights and free performance shares by the Company's ultimate parent ALSTOM SA France. However, cost for such grant is not recharged by the ultimate parent to the Company. Accordingly, the Company has not accounted for such options in its books of account.

Notes :

1. Provision for Warranties are estimated based on past obligations and are expected to be settled within next 15 to 24 months with the average period being 18 months.

2. Provision for Contract losses are based on difference between total estimated revenues and total estimated costs.

Pursuant to the announcement by The Institute of Chartered Accountants of India in respect of Accounting for Derivatives in March 2008 and in view of the principle of prudence as enunciated in Accounting Standard 1 - "Disclosure of Accounting Policies", the entity has provided for losses in respect of all outstanding derivative contracts at the balance sheet date by marking them to market. The Company has recognized mark to market net losses Rs.73,817 thousand (Previous year- Rs.199,136 thousand) relating to foreign exchange derivatives in the Profit and Loss Account and included in foreign exchange fluctuation (net)' in Schedule 17 above.

8. Non funded facilities from certain banks are secured by way of first charge on inventories, book debts and other moveable assets

Notes : Remuneration to Executive Directors excludes:

(i) Expenditure for compensated leave and gratuity, as actuarial valuation is done on a total Company basis.

(ii) Cost of employee share based payments for stocks of ALSTOM SA France, the ultimate parent Company not recharged to the Company (Refer Note HonSchedulel9)

* Includes supplementary bonus of Rs. Nil (Previous year - Rs 6,353 thousand), reimbursed by the ultimate parent company.

** Commission provided for in the books for Non Executive Directors resident in India is subject to approval of shareholders in the ensuing Annual General Meeting.

9. EXCEPTIONAL ITEMS

Exceptional items represent profit on sale of land and building at Puducherry, and a portion of the land including part of the building appurtenant thereto at Bangalore which was acquired by the National Highway Authority, fore consideration of Rs.33,000 thousand and Rs.122,431 thousand respectively.

10. PREVIOUS YEAR CORRESPONDING FINANCIAL INFORMATION

The Company's financial year was changed from calendar year to April through following March. Accordingly, the current period figures represent the period of fifteen months from January 01, 2011 to March 31, 2012 whereas the previous year financial statements were for The year ended December3l, 2010.

As described in note 5 above, the distribution business of the Company was demerged during the current period effective from 26 November 2011, with the appointed date of April 1, 2011. The current period financial statements include the financial information for the demerged business only for the quarter ended March 31, 2011 whereas the previous year financial statements include the financial information for the demerged business for the full year.

Therefore, the current period and previous year financial information is not strictly comparable.

The previous year figures have been regrouped / reclassified, wherever necessary, to conform with current period's presentation.

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Dec 31, 2010

(Rs. in thousands)

1. CONTINGENT LIABILITIES IN RESPECT OF Dec 2009 Dec 2010

(a) Legal cases against the Company not acknowledged as debts 123,575 23,012

(b) Sales tax and Excise demands against which the Company has filed appeals 138,897 65,627

2. ACCOUNTING OF DERIVATIVES

Pursuant to the announcement by the Institute of Chartered Accountants of India in respect of Accounting for Derivatives in March 2008 and in view the principle of prudence as enunciated in Accounting Standard 1 - "Disclosure of Accounting Policies", the entity has provided for losses in respect of all outstanding derivative contracts at the balance sheet date by marking them to market. The Company has recognised mark to market net losses of Rs. 199,136 thousand (Rs 99,519 thousand) relating to foreign exchange derivatives in the profit and loss account and included in Bank Charges and foreign exchange variation cost (net) under Note 18.

3. AREVA TRANSMISSION AND DISTRIBUTION BUSINESS SALE:

On January 20, 2010 between ALSTOM Holdings and Schneider Electric Industries SAS ("acquirers") entered into a share purchase agreement with AREVA SA, through ALSTOM Sextant 5 SAS, a special purpose vehicle, acquired the Global T&D Business of AREVA SA effective from June 7, 2010. In terms of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, in India, the acquirers during the year made a public announcement on May 28, 2010 to the shareholders of the Company and made an open offer to purchase up to 20% of the issued share capital of the Company. The offer opened on November 6,2010 and closed on November 25, 2010. On December 3,2010, the acquirers had informed the Company confirming the completion of the open offer formalities. The acquirers had acquired 2,906,624 (1.22%) equity shares tendered by the aforesaid erstwhile shareholders. These shares were held in Trust by the Registrar to the Offer, though not formally transferred in the Companys records. Consequently on completion of formalities, the Promoters holding stands increased to 175,492,524 (73.40%) equity shares. In the above open offer, the shareholders were also informed about the intention of proposed transfer of the Distribution business to Schneider group. The broad outline for giving effect to as aforesaid is under examination and upon firming up, necessary steps will be taken.

4. SUBSIDIARY COMPANIES

Two wholly owned subsidiaries - Grid Equipments Limited and Energy Grid Automation Transformers and Switchgears India Limited were incorporated on December 29, 2010. As subscribers to the Memorandum of Association of these wholly owned subsidiaries, the Company has agreed to subscribe Rs. 1,000 thousands each in the equity share capital. A sum of Rs.103 thousands incurred towards incorporation of these companies are shown as recoverable balances in these financial statements. There were no transactions in these companies during the period.

5. PRIOR YEAR COMPARATIVES

Prior years figures have been recast/regrouped wherever considered necessary for comparative purposes.

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Dec 31, 2009

1. SHARE CAPITAL

a) 15,750,000 equity shares of Rs 10/- each (before sub-division of shares) were allotted as fully paid bonus shares by capitalisation of general reserve, share premium and profit and loss account balance.

b) 19,871,327 equity shares of Rs 10/- each (before sub-division of shares) were issued and allotted as fully paid up pursuant to the scheme of amalgamation with The General Electric Company of India Limited in 1992-93 (11,520,000 shares), GEC Power Engineering Services of India Limited (PESIL) in 1993-94(330,000 shares), ALSTOM T&D Distribution Transformers Limited in 2000-01 (87,992 shares) and with AREVAT&D Systems India Limited, AREVAT&D Instrument Transformers India Private Limited and AREVAT&D Lightning Arresters Private Limited, in 2007, (7,933,335 shares), without payment being received in cash.

c) During 1994-95, the Company offered 9,950,000 equity shares of Rs 10/- (before sub-division of shares) each to the existing shareholders in the ratio of 1 share for every 3 shares held at a premium of Rs 40/- per share as per letter of offer dated May 10, 1994.

The shares, barring 1,034 shares, which were kept in abeyance for technical reasons, were allotted at the Committee of Directors meeting held on July 28,1994. Of the 1,034 shares kept in abeyance, 514 shares were allotted upto 2001/02.

e) Pursuant to the approval of the shareholders through postal ballot, the equity shares of Rs 10/- each of the Company were sub- divided into five shares of Rs 2/- each with effect from the record date October 31,2008.

2. RESTRUCTURING AND RELOCATION COSTS

In 2008, construction of three greenfield sites were substantially completed resulting in certain set-up costs and costs associated with shifting of machineries, materials and employee transfers/separations. In 2009, these projects were completed and commercial production has commenced and additional costs incurred have been charged to profit & loss account.

3. COMMITMENTS December 2009 December 2008

4. CONTINGENT LIABILITIES IN RESPECT OF

(a) Legal cases against the Company not acknowledged as debts 23,012 13,012

(b)Sales tax and Excise demands against which the Company has filed appeals 65,627 49,738

Name of the Statute Nature of Dues Rupees Period Forum where

thousands dispute is pending

Central Sales Tax Act Disallowance of C forms 5,271 2002-03, 2004-05, 2006-07, 2008-09 Deputy Commis -sioner (Appeals)

Central Sales Tax Act Non receipt of Forms 28,760 2005-06 to 2008-09 Joint Commissio -ner(Appeals)

Central Sales Tax Act Non receipt of Forms 5,609 2005-06 Revisional Board

Central Sales Tax Act Non receipt of Forms 25,016 2006-07 Joint Commissio -ner(Appeals)

Local Sales Tax Act (Various States) Non receipt of Forms 971 1991-92 Dy. Commissioner (Appeals)

65,627 Amount deposited as at December 31, 2009 is Rs 2,608 thousand (December 2008 - Rs 2,780 thousand)

(c) The Company has received demand for excise/ service tax amounting to 455,300 thousand for various years. The Company has preferred appeals against these demands which is pending before various appellate authorities, and has been advised that there are reasonable chances of success in these appeals.

(d) Demands for pending concessional sales tax forms for various years amounts to Rs 703,500 thousand. The company has, an ongoing process for collection and submission of these forms to the concerned authorities and does not foresee any liability in this regard.

Note: Show cause notices received have not been considered as contingent liabilities.

5. CHARGE ON ASSETS

Non funded facilities from certain banks are secured by way of a first charge on inventories, book debts and other movable assets.

6. ACCOUNTING OF DERIVATIVES

Pursuant to the announcement by the Institute of Chartered Accountants of India in respect of Accounting for Derivatives in March 2008 and in view the principle of prudence as enunciated in Accounting Standard 1 - "Disclosure of Accounting Policies", the entity has provided for losses in respect of all outstanding derivative contracts at the balance sheet date by marking them to market. The Company has recognized mark to market net losses of Rs. 99,519 thousand relating to foreign exchange derivatives in the profit and loss account and included in Bank Charges and foreign exchange variation cost (net) account under Note 18.

7. RELATED PARTY DISCLOSURES - As identified by the management and relied upon by the auditors

a) List of Related parties and description of relationship

(i) Parties where control exists: AREVAT&DSAS, France (Holding Company),

AREVA SA, France (Ultimate Holding Company) AREVA T&D Holdings SA, France (Parent of Holding Company)

(ii) Other related parties with whom transactions have taken place during the year: Fellow subsidiaries:

AREVA T&D Australia Limited AREVA T&D De Energia Ltd, Brazil

AREVA T&D Canada Inc. AREVAT&Dlnc.USA

AREVA T&D Protection & Control, Stafford AREVA Hellas, AE, Greece

AREVA T&D Xiamen, China AREVA T&D U.K Limited, England

AREVA T&D SAdeC.V, Mexico AREVA T&D Middle East FZE, Dubai

AREVAT&D Enerjis Endustrisi AS, Turkey Long & Crawford Limited

AREVA Energietechnic, Gmbh, Germany Zao AREVA Transmission and Distribution

AREVAT&D ChileS.A AREVA Sachsenwerk, Gmbh, Germany

Ritz MeBwandler Ludwigslust GmbH, Germany AREVA Parafoudres S.A, France

AREVAT&D MalaysiaSdnBhd AREVAT&DTransformateursde MesuresSA, France

AREVAT&D AG, Switzerland AREVAT&D Sp.z.o.o., Poland

AREVA Hungariakft AREVA T&D Suzhou High Voltage Switchgear Company Limited

AREVAT&D Pte Limited, Singapore AREVAT&D Shanghai Power Automation Company Limited

AREVA Belgium S.A. AREVAT&D Iberica.SA, Spain

AREVAT&D FIRSpA, Italy AREVAT&D Yangzhou

AREVAT&D Austria AG Shanghai RITZ High Voltage Instrument Transformers Company Limited

AREVAHuadian Switchgear AREVAT&D Indonesia

AREVAT&D Limited, Finland AREVA T&D Thailand Limited

(iii) Key management personnel : Rathindra Nath Basu

8. INCOME TAX

a. The company in an earlier year was constrained not to make investment in capital gains bonds in respect of the capital gains that arose on disposal of non T&D business because of the notification dated December 22, 2006 issued by the Central Government capping the investment in capital gains bonds at Rs 5,000 thousand. Hence the company had challenged by way of a writ petition in the Madras High Court the said notification. This writ was dismissed by the High Court as infructuous, since the notification under challenge was legalised by the Finance Act 2007 through a retrospective amendment to Sec 54EC of the Income Tax Act 1961. Against this decision of Madras High Court the company preferred a special leave petition before the Supreme Court of India which was also dismissed. Consequently the company has now filed a fresh writ petition before the Madras High Court challenging the constitutional validity of the retrospective amendment to Section 54EC itself. The said writ is admitted and pending disposal.

b. The company has estimated Rs 42,256 thousand of potential income tax risk relating to certain disallowances and consequential interest relating to various assessment years.

c. The Company has received tax demand (including interest) of Rs 369,284 thousand on completion of assessment for the assessment year 2006-07. The Company has preferred appeal against this demand which is pending before the appellate authority, and is of the opinion that there are reasonable chances of success in the appeal.

9. AREVAGLOBAL TRANSMISSION AND DISTRIBUTION BUSINESSSALE:

During the year, AREVA, the ultimate holding company decided to exit T&D business and consequent to the decision, AREVA Executive Board has begun negotiations with Alstom-Schneider Consortium. In January 2010, the management in India has been informed that a Share Purchase Agreement was signed between AREVA Group and Alstom-Schneider Electric and the completion of the sale transaction is subject to obtaining the merger clearances from EU Commission and other Competition authorities. When the transaction is cleared by the said authorities, the acquirers in compliance with SEBI regulations in India, will need to communicate to the shareholders their detailed plans, wherein possible reorganisation of the T&D business in India is expected.

10. CHANGE IN REGISTERED OFFICE

During the year, the registered office of the Company was shifted from Kolkata to New Delhi after obtaining necessary approvals.

11. PRIOR YEAR COMPARATIVES

Prioryearfigures have been reclassified wherever necessary for comparative purposes.