Indian Renewable Energy Development Agency Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(xii) Provisions

A provision is recognized when the Company has a present obligation (Legal or Constructive) as a result of
past event, and it is probable that an outflow of resources will be required to settle the obligation in respect
of which a reliable estimate can be made.

(xiii) Contingent liabilities

Contingent liabilities are not recognized but disclosed in Notes when the Company has possible obligation
due to past events and existence of the obligation depends upon occurrence or non- occurrence of future
events not wholly within the control of the Company and Present obligations arising from past events where
it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

Contingent liabilities are assessed continuously to determine whether outflow of Economic resources have
become probable. If the outflow becomes probable, then relative provision is recognized in the financial
statements.

(xiv) Contingent Assets

Contingent Assets are not recognized but disclosed in Notes which usually arise from unplanned or other
unexpected events that give rise to the possibility of an inflow of economic benefits.

Contingent assets are assessed continuously to determine whether inflow of economic benefits becomes
virtually certain, then such assets and the relative income will be recognised in the financial statements.

(xv) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Chairman and Managing Director (CMD) of the Company have been identified
as the Chief Operating Decision Maker (CODM).

(xvi) Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior
periods presented in which the error occurred. If the error occurred before the earliest period presented,
the opening balances of assets, liabilities and equity for the earliest period presented, are restated unless
it is impracticable, in which case, the comparative information is adjusted to apply the accounting policy
prospectively from the earliest date practicable.

(xvii) Taxation

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax''
as reported in the statement of profit and loss /other comprehensive income because of items of income
or expense that are taxable or deductible in other years and items that are never taxable or deductible. The
Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.

Current tax is recognized in the statement of profit and loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current tax is also
recognized in other comprehensive income or directly in equity respectively. Where current tax arises from
the initial accounting for a business combination, the tax effect is included in the accounting for the business
combination.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding amounts used for taxation purpose.

Deferred tax liabilities are generally recognized for all taxable temporary differences.

Deferred tax assets are generally recognized only to the extent that it is probable that future taxable profits
will be available against which the assets can be utilized. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the
related tax benefit will be realized.

Current and deferred tax are recognized in the statement of profit and loss, except when they relate to items
that are recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.

(xviii) Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including
property under construction for such purposes). Investment properties are measured initially at cost,
including import duties, non-refundable taxes, after deducting trade discounts & rebates, borrowing cost
if capitalization criteria are met and any cost directly attributable in bringing the asset to the location and
condition necessary for it to be ready for its intended use.

After initial recognition, the Company measures investment property by using cost model.

An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss
arising on de recognition of the property (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit and loss in the period in which
the property is derecognized.

Investment properties are depreciated in accordance to the class of asset that it belongs and the life of the
asset shall be as conceived for the same class of asset at the Company.

Though investment property is measured using cost model, the fair value of investment property is disclosed
in the notes.

(xix) Employee Benefits

a) Short-term employee benefits

Short-term employee benefits including salaries, short term compensated absences (such as a paid annual
leave) where the absences are expected to occur within twelve months after the end of the period in which
the employees render the related service, profit sharing and bonuses payable within twelve months after
the end of the period in which the employees render the related services and non-monetary benefits for
current employees are estimated and measured on an undiscounted basis.

b) Post-employment benefit plans are classified into defined benefits plans and defined contribution
plans as under:

(i) Defined contribution plan

A defined contribution plan is a plan under which the Company pays fixed contributions in respect of the
employees into a separate fund. The Company has no legal or constructive obligations to pay further
contributions after its payment of the fixed contribution. The contributions made by the Company towards
defined contribution plans are charged to the statement of profit and loss in the period to which the
contributions relate.

(ii) Defined benefit plan

The Company has an obligation towards gratuity, Post-Retirement Medical Benefit (PRMB) and Other
Defined Retirement Benefit (ODRB) which are being considered as defined benefit plans covering eligible
employees. Under the defined benefit plans, the amount that an employee will receive on retirement is
defined by reference to the employee''s length of service, final salary, and other defined parameters. The
legal obligation for any benefits remains with the Company, even if plan assets for funding the defined
benefit plan have been set aside.

The Company''s obligation towards defined benefit plans is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. The liability
recognized in the statement of financial position for defined benefit plans is the present value of the Defined
Benefit Obligation (DBO) at the reporting date less the fair value of plan assets. Management estimates the
DBO annually with the assistance of independent actuaries.

The liability for retirement benefits of employees in respect of provident fund, benevolent fund,
superannuation fund and Gratuity is funded with separate trusts.

The Company''s contribution to Provident Fund / Superannuation Fund is remitted to separate trusts
established for this purpose based on a fixed percentage of the eligible employee''s salary and debited to
Statement of Profit and Loss.

c) Other long-term employee benefits:

Liability in respect of compensated absences becoming due or expected to be availed more than one- year
after the balance sheet date is estimated on the basis of actuarial valuation performed by an independent
actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged
to statement of profit and loss in the period in which such gains or losses are determined.

(xx) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs,
except for those carried at fair value through profit or loss. Subsequent measurement of financial assets
and financial liabilities is described below.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories
upon initial recognition:

• Amortized cost

• Financial assets at fair value through profit or loss (FVTPL)

• Financial assets at fair value through other comprehensive income (FVOCI)

All financial assets except for those at FVTPL or equity instruments at FVOCI are subject to review for
impairment at least at each reporting date to identify whether there is any objective evidence that a financial
asset or a group of financial assets is impaired. Different criteria to determine impairment are applied to
each category of financial assets, which are described below.

? Loan at Amortised Cost

Loans (financial asset) are measured at amortized cost using Effective Interest Rate (EIR) if both of the
following conditions are met:

a) The financial asset is held within a business model whose objective is to hold financial assets to
collect contractual cash flows; and

b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

A loss allowance for expected credit losses is recognized on financial assets carried at amortized cost.

? Financial assets at Fair Value through Profit or Loss (FVTPL)

Financial assets at FVTPL include all derivative financial instruments except for those designated and
effective as hedging instruments, for which the hedge accounting requirements are being applied. Assets in
this category are measured at fair value with gains or losses recognized in the statement of profit and loss.
The fair values of financial assets in this category are determined by reference to active market transactions
or using a valuation technique where no active market exists.

Financial assets at FVOCI comprise of equity instruments measured at fair value. An equity investment
classified as FVOCI is initially measured at fair value plus transaction costs. Gains and losses are recognized
in other comprehensive income and reported within the FVOCI reserve within equity, except for dividend
income, which is recognized in profit or loss. There is no recycling of such gains and losses from OCI to
Statement of Profit & Loss, even on the derecognition of the investment. However, the Company may
transfer the same within equity.

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets)
are derecognized (i.e., removed from the Company''s balance sheet) when the contractual rights to receive
the cash flows from the financial asset have expired, or when the financial asset and substantially all
the risks and rewards are transferred. The Company also derecognizes the financial asset if it has both
transferred the financial asset and the transfer qualifies for de-recognition.

Classification and subsequent measurement of financial liabilities

Financial liabilities are measured subsequently at amortized cost using the effective interest method,
except for derivative financial liabilities which are carried at FVTPL, subsequently at fair value with gains
or losses recognized in the statement of profit and loss. (FVTPL). All host contracts which are in nature
of a financial liability and separated from embedded derivative are measured at amortized cost using the
effective interest method.

De-recognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Derivative financial instruments

The Company is exposed to foreign currency fluctuations on foreign currency assets and liabilities. The
Company limits the effect of foreign exchange rate fluctuations by following established risk management
policies including the use of derivatives.

The Company use Derivative instrument includes principal swap, Cross Currency & Interest Rate Swap
(CCIRS), forwards, interest rate swaps, currency and cross currency options, structured product, etc. to
hedge foreign currency assets and liabilities.

Derivatives are recognized and measured at fair value (MTM). Attributable transaction costs are recognized
in statement of profit and loss as cost.

De-recognition of Financial asset:

Financial assets are derecognized when the contractual right to receive cash flows from the financial assets
expires or transfers the contractual rights to receive the cash flows from the asset.

Hedge Accounting

Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL) except for
derivatives designated as hedging instruments in cash flow hedge relationships, which require a specific
accounting treatment. To qualify for hedge accounting, the hedging relationship must meet all of the
following requirements:

- there is an economic relationship between the hedged item and the hedging instrument

- the effect of credit risk does not dominate the value changes that result from that economic relationship

- the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity
actually uses to hedge that quantity of hedged item.

The Company has designated mostly derivative contracts as hedging instruments in cash flow hedge
relationships. These arrangements have been entered into to mitigate foreign currency exchange risk and
interest rate risk arising against which debt instruments denominated in foreign currency.

• Cash Flow hedging is done to protect cash flow positions of the Company from changes in
exchange rate fluctuations and to bring variability in cash flow to fixed ones.

• The Company enters into hedging instruments in accordance with policies as approved by the
Board of Directors; provide written principles which are consistent with the risk management
strategy/policies of the Company.

• All derivative financial instruments used for hedge accounting are recognised initially at fair
value and reported subsequently at fair value in the balance sheet.

The hedge instruments are designated and documented as hedges at the inception of the contract. The
effectiveness of hedge instruments is assessed and measured at inception and on an on-going basis. The
effective portion of change in the fair value as assessed based on MTM valuation provided by respective
banks/third party valuation of the designated hedging instrument is recognized in the "Other Comprehensive
Income" as "Cash Flow Hedge Reserve". The ineffective portion is recognized immediately in the Statement
of Profit and Loss as and when occurs.

At the time the hedged item affects profit or loss, any gain or loss previously recognised in other
comprehensive income is reclassified from equity to profit or loss and presented as a reclassification
adjustment within other comprehensive income.

If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting
is discontinued prospectively. If the hedging instrument expires or sold, terminated or exercised, the
cumulative gain or loss on the hedging instrument recognized in Cash Flow Hedge Reserve remains in
Cash Flow Hedge Reserve till the period the hedge was effective. The cumulative gain or loss previously
recognized in the Cash Flow Hedge Reserve is transferred to the Statement of Profit and Loss upon the
occurrence of the underlying transaction.

Impairment

Impairment of financial assets
? Loan assets

The Company follows a ''three-stage'' model for impairment of loan asset carried at amortized cost based on
changes in credit quality since initial recognition as summarized below:

• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial
recognition or that has low credit risk at the reporting date.

• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition
but that do not have objective evidence of impairment.

• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and lifetime ECL for
Stage 2 and Stage 3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and
Loss Given Default, defined as follows:

Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial
obligation, either over the next 12 months (12 months PD), or over the remaining lifetime (Lifetime PD) of
the obligation.

Loss Given Default iLGDl - LGD represents the Company''s expectation of the extent of loss on a defaulted
exposure. LGD varies by type of counterparty, type, and preference of claim and availability of collateral or
other credit support.

Exposure at Default [EADl - EAD is based on the amount of outstanding exposure as on the assessment date
on which ECL is computed.

Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD and
LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an on-going
basis.

? Financial Instruments other than Loans consist of :-

• Financial assets include cash and cash equivalents, trade receivables, unbilled revenues, finance
lease receivables, employee and other advances.

• Financial liabilities include borrowings, bank overdrafts, trade payables.

Non derivative financial instruments other than loans are recognized initially at fair value including any
directly attributable transaction costs. Financial assets are derecognized when substantial risks and
rewards of ownership of the financial asset have been transferred. In cases where substantial risks and
rewards of ownership of the financial assets are neither transferred nor retained, financial assets are
derecognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, they are measured as prescribed below:

a) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at bank,
demand deposits with banks, cash credit, fixed deposits and foreign currency deposits, net of outstanding
bank overdrafts that are repayable on demand and are considered part of the Company''s cash management
system. In the statement of financial position, bank overdrafts are presented under borrowings.

b) Trade Receivable

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade
receivables. The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date,
right from its initial recognition. The Company determines impairment loss allowance based on individual
assessment of receivables, historically observed default rates over the expected life of the trade receivables
and is adjusted for forward-looking estimates.

c) Other payables

Other payables are initially recognized at fair value, and subsequently carried at amortized cost using the
effective interest method. For these financial instruments, the carrying amounts approximate fair value due
to the short-term maturity of these instruments.

(xxi) Dividend

Proposed dividends and interim dividends payable to the shareholders are recognized as changes in
equity in the period in which they are approved by the Board of Directors and in the shareholders'' meeting
respectively.

(xxii) Fair Value Measurement & Disclosure

The Company measures financial instruments, such as derivatives at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The
principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, including assumptions about risk, assuming that market participants
act in their economic best interest. A fair value measurement of a non-financial asset takes into account a
market participant''s ability to generate economic benefits by using the asset in its highest and best use or
by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing
the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the financial statements regularly, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

(xxiii) Revenue Recognition

? Interest Income

Interest income is accounted on all financial assets (except Company is not recognizing interest income
on credit impaired financial assets) measured at amortized cost. Interest income is recognized using the
Effective Interest Rate (EIR) method in line with Ind AS 109, Financial Instruments. The Effective Interest
Rate (EIR) is the rate that exactly discounts estimated future cash receipts through expected life of the
financial asset to that asset''s net carrying amount on initial recognition. The EIR is calculated by taking
into account transactions costs and fees that are an integral part of the EIR in line with Ind AS 109. Interest
income on credit impaired assets is recognized on receipt basis.

Rebate on account of timely payment of interest by borrowers is recognized on receipt of the entire interest
amount due in time, in accordance with the terms of the respective contract and is netted against the
corresponding interest income.

Unless otherwise specified, the recoveries from the borrowers are appropriated in the order of (i) incidental
charges (ii) penal interest (iii) overdue interest and (iv) repayment of principal; the oldest being adjusted
first. The recovery under One Time Settlement (OTS)/ Insolvency and Bankruptcy Code (IBC) proceedings
is appropriated first towards the principal outstanding and remaining recovery thereafter, towards interest
and other charges, if any.

? Other Revenue

• Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) are
recognised as per Ind AS 115 - Revenue from contracts with customers outlines a single comprehensive
model of accounting for revenue arising from contracts with customers. The Company recognizes
revenue from contracts with customers based on the principle laid down in Ind AS 115 - Revenue from
contracts with customers.

• Revenue from contract with customers is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.
Revenue is measured at the transaction price agreed under the Contract. Transaction Price excludes
amounts collected on behalf of third parties (e.g., taxes collected on behalf of government) and
includes/adjusted for variable consideration like rebates, discounts, only to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur
when the uncertainty associated with the variable consideration is subsequently resolved.

? Revenue from solar plant

Income from solar plant is recognised when the performance obligation are satisfied over time. Rebate
given is disclosed as a deduction from the amount of gross revenue.

? Revenue from Fees and Commission

• Revenue from Fee & Commission

Fees and commission are recognised on a point in time basis when probability of collecting such fees is
established.

• Revenue from Implementation of Government Schemes & Projects

The Company besides its own activities also acts as implementing agency on behalf of various Government /
Non-Government Organizations on the basis of Memorandum of Understanding (MoU) entered into between
the Company and such organization. The details of such activities are disclosed by the way of Notes to the
Financial Statements.

Wherever any funds are received under trust on the basis of such MoUs entered, the same is not included in
Cash and Cash Equivalents and any income including interest income generated out of such funds belonging
to such organizations is not accounted as revenue of the Company.

Service charges earned from such schemes implemented by the Company are recognised at a point in time
basis when certainty of collecting such service charges is established.

(xxiv) Expense

Expenses are accounted for on accrual basis. Prepaid expenses upto '' 5,00,000/- per item are charged to
Statement of Profit & Loss as and when incurred/adjusted/received.

(xxv) Expenditure on issue of shares

Expenditure on issue of shares, if any, is charged to the securities premium account.

****

i) Foreign currency borrowings from various multilateral / bilateral agencies viz. ADB, World Bank , KfW, AFD, JICA and EIB have
been converted into rupee and hedging of the same is done by undertaking plain vanilla swap transaction /currency interest rate
swap / principal only swap/forward contracts etc. with various banks with whom Company has signed International Swaps and
Derivative Association (ISDA) Master Agreement. These derivative transactions have been entered into with the participating
bank for a maturity period which may be shorter than the maturity period of the loan. The hedging of the foreign currency loan
has been carried out at various intervals and in multiple Tranches based on the drawl under the lines of credit and also rollover.
In addition to the interest cost and other financial charges, due to hedging of foreign currency loans, these loans carry hedging/
derivative cost, which is Tranche wise as per the drawl under the line of credit, thus the applicable rate of interest on these lines
of credit has not been disclosed above.

ii| Rupee Borrowing as on 31-03-2025 mentioned in Note No. 20 were raised at respective Banks/Financial Institutions benchmark
rate plus spread ranging from 0 bps to 155 bps.

iii) The Company raises funds through various instruments including bonds. During the year, the Company has not defaulted in
servicing of any of its debt service obligations whether for principal or interest .

iv) Funds raised during the year have been utilised for the stated objects in the offer document/information memorandum/facility
agreement.

v) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders .

vi) The statements of book debts filed by the Company with banks/ financial institutions are in agreement with the books of
accounts.

vii) None of the borrowings have been guaranteed by Directors.

viii) There were no instances of breach of covenants of loans availed by the Company.

1 Nature and purpose of Reserves

1.1 Special Reserve:

Special reserve has been created to avail income tax deduction under section 36(1](viii] of Income-Tax Act,1961
@ 20% of the profit before tax arrived from the business of providing long term finance. Accordingly, a sum of
'' 362.00 Crores has been provided for the year ended 31.03.2025 (previous year: '' 264.00 Crores].

1.2 Debenture Redemption Reserve:

In terms of Rule 18 (7](b](ii] of the Companies Act 2013, the Company is required to create a Debenture
Redemption Reserve (DRR] upto 25% of the bonds issued through public issue. The Company has made a
provision for DRR, so as to achieve the required amount over the respective tenure of the Tax-Free Bonds.
Accordingly, a sum of '' 41.26 Crores has been provided for the year ended 31.03.2025 (previous year : '' 45.03
Crores].

1.3 General Reserve:

General Reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes, as the same is created by transfer from one component of equity to another.

1.4 Foreign Currency Monetary Item Translation Reserve:

Foreign Currency Monetary Item Translation Difference Account represents unamortized foreign exchange
gain/loss on Long-term Foreign Currency Borrowings that are amortized over the tenure of the respective
borrowings. The Company has adopted exemption of para D13AA of I nd AS 101, according to which a first-time
adopter may continue the policy adopted for accounting for exchange differences arising from translation
of long-term foreign currency monetary items recognized in the financial statements for the year ending
immediately before the beginning of the first Ind AS financial year as per the previous GAAP. Accordingly, all
transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction.
The exchange differences arising on reporting of long-term foreign currency monetary items outstanding
as on March 31,2018, at rate prevailing at the end of each year, different from those at which they were
initially recorded during the year, or reported in previous financial statements, are accumulated in a "Foreign
Currency Monetary Item Translation Reserve Account" and amortized over the balance year of such long
term monetary item, by recognition as income or expense in each of such years. Long-term foreign currency
monetary items are those which have a term of twelve months or more at the date of origination. Movement
of FCMITR has been shown in the table above.

1.5 NBFC Reserve:

In terms of RBI circular no. DNBR (PD]CC.No.092/03.10.001/2017-18 dated May 31, 2018, the Company is
required to create NBFC reserve under Section 45-IC of RBI Act, 1934 @ 20% of post-tax profit.Accordingly, for
the year ended 31.03.2025, an amount of '' 340 Crores has been appropriated (previous year: '' 251.00 Crores]
towards NBFC reserve.

1.6 Securities Premium:

Securities premium is used to record the premium on issue of shares. The reserve can be utilized only for
limited purposes in accordance with the provisions of the Companies Act, 2013. Expenditure on issue of
shares is charged to the securities premium account.

1.7 Retained Earnings:

Retained earnings represent profits and items of other comprehensive income recognized directly in retained
earnings earned by the Company less dividend distributions and transfer to and from other reserves.

1.8 Cash Flow Hedge Reserve:

The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest
rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses
foreign currency forward contracts, cross currency swaps and interest rate swaps. To the extent the derivative
contracts designated under the hedge accounting are effective hedges, the change in fair value of the hedging
instrument is recognized in ''Effective Portion of Cash Flow Hedges''. Amounts recognized in such reserve
are reclassified to the Standalone Statement of Profit or Loss when the hedged item affects profit or loss.
Movement of Cash Flow Hedge Reserve has been shown in the table above.

1. Company Overview

The Company is a Government Company registered with the Reserve Bank of India (RBI) as a Non-Banking
Financial Company (NBFC). The registered office of the Company is at 1^st Floor, India Habitat Centre, East
Court, Core- 4A, Lodhi Road, New Delhi -110003. The Company has also been accorded Schedule "A" status
vide DPE letter dated 27 September 2023 and upgraded to ''Navratna'' by DPE vide letter dated 26 April 2024.

Any direction issued by RBI or other regulators are implemented as and when they become applicable.
In terms of Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based
Regulation) Directions, 2023 dated 19 October 2023 (as amended) herewith referred as Master Direction
2023 the Company falls under NBFC-Middle Layer (ML). The Company has been granted the status of
Infrastructure Finance Company (IFC) by RBI vide letter dated 13 March 2023 & is classified as "NBFC-IFC"
as per Master Direction 2023.

Equity Shares and Non-Convertible Debt Securities of the Company are listed on National Stock Exchange
of India Limited (NSE) and/or BSE Limited.

The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity (SOCIE) are
presented in the format prescribed under Division III of Schedule III of the Companies Act, 2013 for NBFCs
that are required to comply with Indian Accounting Standards (Ind AS). The Statement of Cash Flows has
been presented as per the requirement of Ind AS 7 - "Statement of Cash Flows".

4. Undisclosed income

There were no transactions not recorded in the books of accounts that has been surrendered or disclosed
as income during the current and previous year in the tax assessments under the Income Tax Act, 1961.
Thus, no further accounting in the books of accounts is required.

5. Disclosure in respect of Indian Accounting Standard (Ind AS)-16 “Property, Plant and Equipment"
Decommissioning liabilities included in the cost of property, plant and equipment

As per Ind AS 16 Property, Plant and Equipment, Appendix A "Changes in Existing Decommissioning,
Restoration and Similar Liabilities", specified changes in decommissioning, restoration or similar Liability
needs to be added to or deducted from the cost of the asset to which it relates; the adjusted depreciable
amount of the asset is then depreciated prospectively over its remaining useful life.

As per para 55 of Ind AS 16, the depreciable amount of an asset is determined after deducting its residual
value. The amount of decommissioning liability and residual value related to solar plant is not reliably
ascertainable. Hence, decommissioning liability related to the solar plant and the residual value have not
been considered. Further , the management is of the opinion that the decommissioning cost (net of residual
value of the solar plant), shall not be material.

6. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits"

General description of various defined employee''s benefits schemes is as under:-

• Provident Fund (Defined Contribution Fund): During the year ended 31 March 2025, the Company
has recognized an expense of '' 3.15 crores (previous year : '' 2.87 crores) in respect of contribution
to Provident Fund at predetermined fixed percentage of eligible employees'' salary and charged to
statement of profit and loss.

• National Pension Scheme / Superannuation Benefit Fund (Defined Contribution Fund): During the
year ended 31 March 2025, the Company has recognized an expense of '' 2.29 crores in respect of
contribution to National Pension Scheme (NPS) (previous year: '' 2.17 crores) at predetermined fixed
percentage of eligible employees'' salary and charged to statement of profit and loss.

Other Benefits:

• Earned Leave (EL) benefit: Accrual 30 days per year. Encashment 2 times in a calendar year while in
service. Encashment on retirement or superannuation maximum 300 days inclusive of Half Pay Leave
(HPL).

For year ended 31 March 2025, the Company has recognized '' 2.38 crores (previous year: '' 3.05 crores]
towards earned leave as per actuarial valuation.

• Half Pay Leave (HPL) benefit: Accrual 10 full days per year. No encashment while in service.
Encashment on retirement or superannuation maximum 300 days inclusive of EL.

For year ended 31 March 2025, the Company has recognized '' 0.19 crores (previous year: '' 1.51 crores]
towards Half pay leave as per actuarial valuation.

• Gratuity: Accrual of 15 days salary for every completed year of service. Vesting period is 05 years and
the payment is limited to 20 Lakhs subsequent to the pay revision applicable from 01 January 2017.

As per actuarial valuation for the year ended 31 March 2025, Net Asset recognized in Balance Sheet
towards gratuity is '' 0.42 crores (previous year: '' 0.21 crores] for on roll employee, whereas the assets
held of '' 13.01 crores against the liability of '' 12.59 crores (previous year: '' 12.40 crores against the
liability of '' 12.19 crores].

• Post-Retirement Medical Benefit (PRMB) Scheme : The Company provides for the defined benefit
plans for Post-Retirement Medical Scheme using projected unit credit method of actuarial valuation.
Under the scheme eligible ex-employees and eligible dependent family members are provided medical
facilities. IREDA Post-Retirement Medical Scheme (PRMS] Trust became operative, and the post¬
retirement medical benefits have been governed under IREDA PRMS Trust & Rules w.e.f. 01 October
2024. The beneficiaries consist of retired employees and their dependents for medical benefits as per
applicable rules.

An amount of '' 42.87 crores has been transferred to the Trust, comprising '' 32.87 crores, based on the
actuarial valuation as of 30 September 2024 and '' 10.00 crores, as an additional contribution to ensure
the Trust''s long-term viability and facilitate the smooth operation to extend medical assistance. The
funds have been invested with LIC of India against the Policy in place.

As per actuarial valuation for the year ended 31 March 2025, Net Asset recognized in Balance Sheet
towards PRMS is '' 4.55 crores, whereas the assets held of '' 44.27 crores against the liability of '' 39.71
crores (previous year: Nil crores assets against the liability of '' 16.89 crores].

• Baggage Allowance: At the time of superannuation, employees are entitled to settle at a place of their
choice, and they are eligible for Baggage Allowance.

As per actuarial valuation for the year ended 31 March 2025, towards Baggage Allowance the Company
has provided '' 0.04 crores (previous year: '' 0.03 crores].

• Farewell Gift: At the time of superannuation of employees, company provides farewell gift to employee
as per policy framed for this purpose. Value of gift is determined on the basis on designation of the
superannuating employee.

During the year ended 31 March 2025, the Company has provided towards the Farewell Gift '' 0.03
crores (previous year: '' 0.02 crores].

The summarized position of various defined benefits recognized in the Statement of Profit & Loss,
Other Comprehensive Income (OCI] and Balance Sheet & other disclosures are as under:-

• Performance Related Pay

During the year ended 31 March 2025, the Company has made a provision of '' 9.43 crores (previous year:
'' 4.91 crores (net of reversal) was created) towards the performance related pay. An amount of '' 6.00 crores
was paid during the year (previous year: '' 8.84 crores) to the eligible employees as per the underlying
scheme.

7. Disclosure in respect of Indian Accounting Standard (Ind AS) -20 “Accounting for Government Grants and
Disclosure of Government Assistance"

a) Grant for Capital Assets

World Bank Clean Technology Fund (CTF) Grant:-

Wortd Bank CTF Grant received related to Intangible assets are treated as deferred income and are
recognized in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the
asset as a deduction to amortization expense. Refer Note 38(17) to Financial Statements.

The Company has received total Grant of '' 5.50 crores till 31 March 2025 (previous year: '' 5.50 crores)
including reimbursements to the Company and direct disbursement to vendors. The Company has disclosed
'' 1.15 crores as balance grant (previous year: '' 1.52 crores) towards the procurement of intangible assets
till 31 March 2025. The Company has disclosed the said grant as "Capital Grant from World Bank -Clean
Technology Fund (CTF)" under "Other non - financial fiabifities"(Refer Note 24) to Financial Statements. The
movement of Grant for Capital Assets is as follows:

A. The Company has incorporated a wholly owned subsidiary company named as "IREDA Global Green
Energy Finance IFSC Ltd" in IFSC (International Financial Services Centre)-GIFT City (Gujarat
International Finance Tec- City) which shall provide debt denominated in foreign currencies for financing
renewable energy sector. The Company has invested an amount of USD 3.11 Million equivalent to ''
26.00 crores in its subsidiary. The subsidiary company has received Certificate of Registration dated
18 February 2025 from IFSCA to undertake activities as a Finance Company.

B. Approval for incorporation of a retail subsidiary focused on renewable energy financing was obtained
from the Department of Investment and Public Asset Management (DIPAM) and Ministry of New and
Renewable Energy (MNRE) on 10 October 2024. Subsequently, NOC / Approval from RBI has been
sought and Outcome of decision is awaited.

C. A non-binding MOU was signed between SJVN, GMR, and IREDA on 09 September 2024, which
stipulated an equity investment of 5% for IREDA in GMR Upper Karnali Hydro Power Ltd (GUKHL),
Nepal & Karnali Transmission Company Pvt Ltd (KTCPL), Nepal each. The proposal for investment
of 5% equity by IREDA in GUKHL and KTCPL each, was approved by Ministry of New and Renewable
Energy (MNRE) and Department of Investment and Public Asset Management (DIPAM) respectively.
Subsequently, the Company has sought approval of RBI for the said investment vide letter dated 24
January 2025. RBI informed the Company vide letter dated 07 March 2025 that the request has not been
acceded to. Thereafter, the Company has again requested RBI for approval for the said investment
vide letter dated 26 March 2025, citing strategic importance of the project. Outcome of decision is
awaited.

12. Compliance with number of layers of companies

The Company has not invested in layers of companies as specified under Companies (Restriction on number
of Layers) Rules, 2017 during the current and previous year.

13. Compliance with approved Scheme(s) of Arrangements

There were no schemes of arrangements entered into by the Company which require approval by the
competent authority in terms of sections 230 to 237 of the Companies Act, 2013, during the current and
previous year.

14. Disclosure in respect of Indian Accounting Standard (Ind AS)-33 “Earnings per Share (EPS)"

A. Basic EPS

Basic earnings per equity share is calculated by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
year. The calculation of Basic EPS is as follows:

15. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of Assets"

The Company, at each balance sheet date, assesses whether there is any indication of impairment of any
asset and/or cash generating unit. If such indication exists, assets are impaired by comparing carrying
amount of each asset and/or cash generating unit to the recoverable amount being higher of the net selling
price or value in use. Value in use is determined from the present value of the estimated future cash flows
from the continuing use of the assets. The Company has no impairment loss during the current and previous
year.

This pertains to Income Tax cases for AY 2014-15 and AY 2020-21 which are pending before the CIT(Appeals), while case for
AY 2022-23 has been moved for rectification under Section 154 of the Income Tax Act. The Company is hopeful of a favourable
outcome in respect of the various issues covered under the appeal and thus except for the issues decided against the Company
in other years, for which reasonable provision has been made, no further provision has been considered as necessary.

For the Income Tax Cases of AY 2010-11 and AY 2012-13 to AY 2018-19 (except AY 2014-15, which is pending before CIT(A)),
the order for appeal effect of CIT(A) is still awaited. However, during FY 2023-24 the Company has provided '' 14.80 crores for
matters not allowed in the favour of the Company and the tax impact on the remaining matters, although not finally determined,
is not considered as a contingent liability as no outflow is considered probable for the items allowed. Any adjustment shall be
accounted for upon receipt of the respective orders. Further, the Company has filed appeal with the ITAT for matters not allowed.

For the Income Tax Cases of earlier years (AY 1998-99 - AY 2009-10), the Hon''ble High Court of Delhi decided the WRIT petition
in favour of the Company vide order dated 08 December, 2023 and pronounced that the assessment proceedings concerning
from AY 1998-99 to AY 2009-10, pursuant to the orders of the Tribunal dated 21 November 2014 and 29 May 2015, have become
time-barred and thus directed the A.O. to accept the returned income and pass the consequential orders. Such consequential
orders are awaited, and any adjustments shall be accounted for upon receipt of the respective orders.

²Service Tax and Goods & Service Tax (GST) cases

The Company had received a Notice of Demand/Order from the Commissioner, Adjudication, Central Tax, GST Delhi East dated
15 March 2022 creating demands on the Company amounting to '' 117.09 crores (excluding applicable interest) for financial
year 2012-13 to 2015-16. Although the Company contends that entire demand is barred by limitation, it has provided for '' 13.22
crores (previous year: '' 12.48 crores) including interest on conservative basis. Based on law and facts in the matter, Service
Tax demand (including interest) of '' 244.94 crores (previous year : '' 229.95 crores) has been disclosed as contingent liability.
Further, since the Company is a government enterprise, no mala fide intention can be attributed to it and thus, extended period
of limitation ought not to be invoked based on certain decisions of Hon''ble Supreme Court in such cases and hence the penalty
has not been considered for disclosure as a contingent liability. The Company has filed an appeal with CESTAT, New Delhi on 15
June 2022 in the matter and the same is pending.

The Company had received order dated 25 March 2022 from the office of Additional Director General (Adjudication) on recovery
of Service Tax on Guarantee Fee Paid to Government under Reverse Charge basis for the period April 2016 to June 2017 raising
a demand of '' 20.73 crores towards Tax, '' 20.73 crores towards penalty and applicable interest thereon. While the Company had
filed an appeal against the same before the Hon''ble CESTAT, Mumbai on 24 June 2022, it has made requisite provision towards
the Tax and interest thereon amounting to '' 69.36 crores (previous year : '' 63.10 crores) and penalty amount of '' 20.73 crores
(previous year '' 20.73 crores) has been disclosed as contingent liability.

The Company has received order dated 31 January 2024 from the office of Commissioner of Central Tax Appeals -1, Delhi, vide
which the appeal filed by the Company against recovery of GST on Guarantee Fee Paid to Government under Reverse Charge
basis for the period 01 July 2017 to 26 July 2018 has been rejected. While the Company is in the process of filing appeal with the
GST Appellate Tribunal, it has paid Tax amount of '' 13.28 crores under protest and made requisite provision towards Tax and
interest thereon amounting to '' 28.96 crores (previous year : '' 28.96 crores). The penalty amount of '' 15.26 crores (previous
period: '' 15.26 crores) has been disclosed as contingent liability.

³Others

Includes penalty for '' 0.03 crores (previous period: '' 0.03 crores) imposed by Ministry of Corporate Affairs (MCA) w.r.t. non¬
appointment of Woman Director. The Company being a government company has no control over appointment of directors and
hence the same has not been considered for provision. The Company has filed appeal before the Regional Director (NR] MCA.
The matter is still pending for adjudication. Also includes an amount of '' 4.62 crores (previous period: '' 3.78 crores) pertaining
to cases pending before Hon''ble High Court of Delhi in the form of Writ Petition against the order of disciplinary authority for
dismissal of staff from service of the Company. There is no interim order in this matter. Also includes '' 0.35 crores (previous
period: '' 0.35 crores] pertaining to withheld PRP of ex-Functional Directors of the Company pending clarification.

Apart from above, the Company has also furnished Bank Guarantee of '' 9.90 crores to NSE to act as a designated stock
exchange for the purpose of Initial Public Offer of the Company. Also, the above does not include amount pertaining to the
arbitration proceedings initiated by M/s Jackson Engineers Ltd against IREDA & Anr on 15 August 2024, in the matter pertaining
to deduction of Liquidated damages amounting to Rs. 13.46 crores by IREDA under contract agreements for Supply, erection
work, civil & allied works as well as for the delay in commissioning of project named 50 MW (AC) Solar PV Plant at Kasargod
Solar Park, District - Kasargod, Kerala. The Claimant (Jackson Engineers Ltd] has filed claim of approx. 156.55 crores and
IREDA has filed statement of defense on 30 October 2024 with a counter claim of Rs 47.34 crores. It is unlikely that the IREDA
may get any adverse order as M/s Jackson Engineers Ltd (the Claimant) was appointed by SECI, not by IREDA. However, if any
adverse order is passed by the tribunal, the same can be challenged under Section 34 of the Arbitration and Conciliation Act,
1996. In view of this , probable outflow is remote hence the same has not been provided or disclosed as a contingent liability.

(ii) Fair value of Investment Property:

The market value of the investment property has been assessed (as per the valuation done by a registered
IBBI valuer as defined under rule 2 of Companies (Registered Valuers and valuation) Rules, 2017) at '' 3.66
crores as on 31 March 2025 basis valuation report dated 09 April 2025 (previous year: '' 2.90 crores).

19. Disclosure as per Indian Accounting Standard (Ind AS) 107 - “Financial Instruments: Disclosures”

The Company has established a comprehensive policy framework to effectively manage credit risk, market
risk, liquidity risk, and operational risk. The Risk Management Policy has been developed under the
guidance of the Risk Management Committee (RMC) and approved by the Board of Directors. The Risk
Management Committee is a Board level Committee and the Board has overall responsibility for the Risk
Management Committee which is supplemented by Management level and corporate level committees
namely Asset Liability Committee, Credit Risk Management Committee and Operational Risk Management
Committee. The Risk Management Policy is periodically reviewed. The Risk Management Committee,
headed by an Independent Director, ensures independent risk oversight and full transparency in the risk
management process. The prudent Risk Management policies are ratified by the Board of Directors to ensure
compliance with RBI guidelines and SEBI (LODR) Regulations, 2015, which form the governing framework
for the company''s business activities. This includes, but is not limited to, the roles and responsibilities
of Independent Directors (ID), as outlined in Schedule IV of the Companies Act 2013, Section 177(4)(vi),
Regulation 6.12 of the DPE Guidelines 2011, and SEBI LODR Regulation 4. These roles and responsibilities
are clearly defined for sub-Board committee members. The company also has a designated Chief Risk
Officer (CRO) in an advisory capacity, in line with the RBI notification.

A Foreign Exchange and Derivatives Risk Management Policy, and a Foreign Exchange and Derivative
Management Committee (FMC) is in place in the Company and hedging instruments such as forward
contracts, s

---

Mar 31, 2024

(xii) Provisions

A provision is recognized when the company has a present obligation (Legal or Constructive) as a result of past event, and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(xiii) Contingent liabilities

Contingent liabilities are not recognized but disclosed in Notes when the company has possible obligation due to past events and existence of the obligation depends upon occurrence or non- occurrence of future events not wholly within the control of the company and Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent liabilities are assessed continuously to determine whether outflow of Economic resources have become probable. If the outflow becomes probable, then relative provision is recognized in the financial statements.

(xiv) Contingent Assets

Contingent Assets are not recognized but disclosed in Notes which usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits.

Contingent assets are assessed continuously to determine whether inflow of economic benefits becomes virtually certain, then such assets and the relative income will be recognised in the financial statements.

(xv) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Chairman and Managing Director (CMD) of the Company have been identified as the Chief Operating Decision Maker (CODM).

(xvi) Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest period presented, the opening balances of assets, liabilities and equity for the earliest period presented, are restated unless it is impracticable, in which case, the comparative information is adjusted to apply the accounting policy prospectively from the earliest date practicable.

(xvii) Taxation

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss /other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Current tax is recognized in the statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current tax is also recognized in other comprehensive income or directly in equity respectively. Where current tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding amounts used for taxation purpose.

Deferred tax liabilities are generally recognized for all taxable temporary differences.

Deferred tax assets are generally recognized only to the extent that it is probable that future taxable profits will be available against which the assets can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Current and deferred tax are recognized in the statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

(xviii) Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including import duties, non-refundable taxes, after deducting trade discounts & rebates, borrowing cost if capitalization criteria are met and any cost directly attributable in bringing the asset to the location and condition necessary for it to be ready for its intended use.

After initial recognition, the company measures investment property by using cost model.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on de recognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss in the period in which the property is derecognized.

Investment properties are depreciated in accordance to the class of asset that it belongs and the life of the asset shall be as conceived for the same class of asset at the Company.

Though investment property is measured using cost model, the fair value of investment property is disclosed in the notes.

(xix) Employee Benefits

a) Short-term employee benefits

Short-term employee benefits including salaries, short term compensated absences (such as a paid annual leave) where the absences are expected to occur within twelve months after the end of the period in which the employees render the related service, profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related services and non-monetary benefits for current employees are estimated and measured on an undiscounted basis.

b) Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

(i) Defined contribution plan

A defined contribution plan is a plan under which the Company pays fixed contributions in respect of the employees into a separate fund. The Company has no legal or constructive obligations to pay further contributions after its payment of the fixed contribution. The contributions made by the Company towards defined contribution plans are charged to the statement of profit and loss in the period to which the contributions relate.

(ii) Defined benefit plan

The Company has an obligation towards gratuity, Post-Retirement Medical Benefit (PRMB) and Other Defined Retirement Benefit (ODRB) which are being considered as defined benefit plans covering eligible employees. Under the defined benefit plans, the amount that an employee will receive on retirement is defined by reference to the employee''s length of service, final salary, and other defined parameters. The legal obligation for any benefits remains with the Company, even if plan assets for funding the defined benefit plan have been set aside.

The Company''s obligation towards defined benefit plans is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. The liability recognized in the statement of financial position for defined benefit plans is the present value of the Defined Benefit Obligation (DBO) at the reporting date less the fair value of plan assets. Management estimates the DBO annually with the assistance of independent actuaries.

Actuarial gains/losses resulting from re-measurements of the liability/asset are included in Other Comprehensive Income.

The liability for retirement benefits of employees in respect of provident fund, benevolent fund, superannuation fund and Gratuity is funded with separate trusts.

The company''s contribution to Provident Fund / Superannuation Fund is remitted to separate trusts established for this purpose based on a fixed percentage of the eligible employee''s salary and debited to Statement of Profit and Loss.

c) Other long-term employee benefits:

Liability in respect of compensated absences becoming due or expected to be availed more than one- year after the balance sheet date is estimated on the basis of actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the period in which such gains or losses are determined.

(xx) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss. Subsequent measurement of financial assets and financial liabilities is described below.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

• Amortized cost

• Financial assets at fair value through profit or loss (FVTPL)

• Financial assets at fair value through other comprehensive income (FVOCI)

All financial assets except for those at FVTPL or equity instruments at FVOCI are subject to review for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied to each category of financial assets, which are described below.

? Loan at Amortised Cost

Loans (financial asset) are measured at amortized cost using Effective Interest Rate (EIR) if both of the following conditions are met:

a) The financial asset is held within a business model whose objective is to hold financial assets to collect contractual cash flows; and

b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A loss allowance for expected credit losses is recognized on financial assets carried at amortized cost.

? Financial assets at Fair Value through Profit or Loss (FVTPL)

Financial assets at FVTPL include all derivative financial instruments except for those designated and effective as hedging instruments, for which the hedge accounting requirements are being applied. Assets in this category are measured at fair value with gains or losses recognized in the statement of profit and loss. The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

? Financial assets at Fair Value through Other Comprehensive Income (FVOCI)

Financial assets at FVOCI comprise of equity instruments measured at fair value. An equity investment classified as FVOCI is initially measured at fair value plus transaction costs. Gains and losses are recognized in other comprehensive income and reported within the FVOCI reserve within equity, except for dividend income, which is recognized in profit or loss. There is no recycling of such gains and losses from OCI to Statement of Profit & Loss, even on the derecognition of the investment. However, the Company may transfer the same within equity.

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are derecognized (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are transferred. The Company also derecognizes the financial asset if it has both transferred the financial asset and the transfer qualifies for de-recognition.

Classification and subsequent measurement of financial liabilities

Financial liabilities are measured subsequently at amortized cost using the effective interest method, except for derivative financial liabilities which are carried at FVTPL, subsequently at fair value with gains or losses recognized in the statement of profit and loss. (FVTPL)

De-recognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Derivative financial instruments

The Company is exposed to foreign currency fluctuations on foreign currency assets and liabilities. The Company limits the effect of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives.

The Company use Derivative instrument includes principal swap, Cross Currency & Interest Rate Swap (CCIRS), forwards, interest rate swaps, currency and cross currency options, structured product, etc. to hedge foreign currency assets and liabilities.

Derivatives are recognized and measured at fair value (MTM). Attributable transaction costs are recognized in statement of profit and loss as cost.

De-recognition of Financial asset:

Financial assets are derecognized when the contractual right to receive cash flows from the financial assets expires or transfers the contractual rights to receive the cash flows from the asset.

Hedge Accounting

Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL) except for derivatives designated as hedging instruments in cash flow hedge relationships, which require a specific accounting treatment. To qualify for hedge accounting, the hedging relationship must meet all of the following requirements:

- there is an economic relationship between the hedged item and the hedging instrument

- the effect of credit risk does not dominate the value changes that result from that economic relationship

- the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item.

The Company has designated mostly derivative contracts as hedging instruments in cash flow hedge relationships. These arrangements have been entered into to mitigate foreign currency exchange risk and interest rate risk arising against which debt instruments denominated in foreign currency.

• Cash Flow hedging is done to protect cash flow positions of the company from changes in exchange rate fluctuations and to bring variability in cash flow to fixed ones.

• The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors; provide written principles which are consistent with the risk management strategy/policies of the Company.

• All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the balance sheet.

The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments is assessed and measured at inception and on an on-going basis. The effective portion of change in the fair value as assessed based on MTM valuation provided by respective banks/third party valuation of the designated hedging instrument is recognized in the "Other Comprehensive Income” as "Cash Flow Hedge Reserve”. The ineffective portion is recognized immediately in the Statement of Profit and Loss as and when occurs.

At the time the hedged item affects profit or loss, any gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss and presented as a reclassification adjustment within other comprehensive income.

If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in Cash Flow Hedge Reserve remains in Cash Flow Hedge Reserve till the period the hedge was effective. The cumulative gain or loss previously recognized in the Cash Flow Hedge Reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction.

Impairment

Impairment of financial assets

? Loan assets

The Company follows a ''three-stage'' model for impairment of loan asset carried at amortized cost based on changes in credit quality since initial recognition as summarized below:

• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial recognition or that has low credit risk at the reporting date.

• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition but that do not have objective evidence of impairment.

• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and lifetime ECL for Stage 2 and Stage 3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss Given Default, defined as follows:

Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12 months PD), or over the remaining lifetime (Lifetime PD) of the obligation.

Loss Given Default (LGD) - LGD represents the Company''s expectation of the extent of loss on a defaulted exposure. LGD varies by type of counterparty, type, and preference of claim and availability of collateral or other credit support.

Exposure at Default (EAD) - EAD is based on the amount of outstanding exposure as on the assessment date on which ECL is computed.

Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an on-going basis.

? Financial Instruments other than Loans consist of :-

• Financial assets include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances.

• Financial liabilities include borrowings, bank overdrafts, trade payables.

Non derivative financial instruments other than loans are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, they are measured as prescribed below:

a) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at bank, demand deposits with banks, cash credit, fixed deposits and foreign currency deposits, net of outstanding bank overdrafts that are repayable on demand and are considered part of the Company''s cash management system. In the statement of financial position, bank overdrafts are presented under borrowings.

b) Trade Receivable

The company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. The application of simplified approach does not require the company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company determines impairment loss allowance based on individual assessment of receivables, historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.

c) Other payables

Other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. For these financial instruments, the carrying amounts approximate fair value due to the short-term maturity of these instruments.

(xxi) Dividend

Proposed dividends and interim dividends payable to the shareholders are recognized as changes in equity in the period in which they are approved by the Board of Directors and in the shareholders'' meeting respectively.

(xxii) Fair Value Measurement & Disclosure

The Company measures financial instruments, such as derivatives at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset

or liability, including assumptions about risk, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements regularly, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(xxiii)Revenue Recognition

? Interest Income

Interest income is accounted on all financial assets (except company is not recognizing interest income on credit impaired financial assets) measured at amortized cost. Interest income is recognized using the Effective Interest Rate (EIR) method in line with Ind AS 109, Financial Instruments. The Effective Interest Rate (EIR) is the rate that exactly discounts estimated future cash receipts through expected life of the financial asset to that asset''s net carrying amount on initial recognition. The EIR is calculated by taking into account transactions costs and fees that are an integral part of the EIR in line with Ind AS 109. Interest income on credit impaired assets is recognized on receipt basis.

Rebate on account of timely payment of interest by borrowers is recognized on receipt of the entire interest amount due in time, in accordance with the terms of the respective contract and is netted against the corresponding interest income.

Unless otherwise specified, the recoveries from the borrowers are appropriated in the order of (i) incidental charges (ii) penal interest (iii) overdue interest and (iv) repayment of principal; the oldest being adjusted first. The recovery under One Time Settlement (OTS)/ Insolvency and Bankruptcy Code (IBC) proceedings is appropriated first towards the principal outstanding and remaining recovery thereafter, towards interest and other charges, if any.

? Other Revenue

• Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) are recognised as per Ind AS 115 - Revenue from contracts with customers outlines a single comprehensive model of accounting for revenue arising from contracts with customers. The Company recognizes revenue from contracts with customers based on the principle laid down in Ind AS 115 - Revenue from contracts with customers .

• Revenue from contract with customers is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably. Revenue is measured at the transaction price agreed under the Contract. Transaction Price excludes amounts collected on behalf of third parties (e.g., taxes collected on behalf of government) and includes/adjusted for variable consideration like rebates, discounts, only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

? Revenue from solar plant

Income from solar plant is recognised when the performance obligation are satisfied over time. Rebate given is disclosed as a deduction from the amount of gross revenue.

? Revenue from Fees and Commission

• Revenue from Fee & Commission

Fees and commission are recognised on a point in time basis when probability of collecting such fees is established.

• Revenue from Implementation of Government Schemes & Projects

The company besides its own activities also acts as implementing agency on behalf of various Government / NonGovernment Organizations on the basis of Memorandum of Understanding (MoU) entered into between the company and such organization. The details of such activities are disclosed by the way of Notes to the Financial Statements.

Wherever any funds are received under trust on the basis of such MoUs entered, the same is not included in Cash and Cash Equivalents and any income including interest income generated out of such funds belonging to such organizations is not accounted as revenue of the company.

Service charges earned from such schemes implemented by the company are recognised at a point in time basis when certainty of collecting such service charges is established.

(xxiv)Expense

Expenses are accounted for on accrual basis. Prepaid expenses upto '' 5,00,000/- per item are charged to Statement of Profit & Loss as and when incurred/adjusted/received.

1 Nature and purpose of Reserves

1.1 Special Reserve:

Special reserve has been created to avail income tax deduction under section 36(1)(viii) of Income-Tax Act,1961 @ 20% of the profit before tax arrived from the business of providing long term finance. Accordingly, a sum of '' 26,400.00 Lakhs has been provided for the year ended 31.03.2024 (previous year: ''15,555.00 Lakhs).

1.2 Debenture Redemption Reserve:

In terms of Rule 18 (7)(b)(ii) of the Companies Act 2013, the Company is required to create a Debenture Redemption Reserve (DRR) upto 25% of the bonds issued through public issue. The Company has made a provision for DRR, so as to achieve the required amount over the respective tenure of the Tax-Free Bonds. Accordingly, a sum of ''4,503.38 Lakhs has been provided for the year ended 31.03.2024 (previous year : ''4,629.11 Lakhs).

Additionally, Tax Free Bonds Series XIII Tranche 1A and 1B aggregating to ''7,575.90 Lakhs and ''10,529.14 Lakhs respectively were redeemed during the year ended 31.03.2024. Inline DRR amounting to 25% of the redeemed amount i.e. ''4,526.26 Lakhs (previous year: ''NIL) was rolled back from DRR.

1.3 General Reserve:

General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes, as the same is created by transfer from one component of equity to another.

For the year ended 31.03.2024, an amount of ''70,000.00 Lakhs has been appropriated (previous year: '' 48,750.00 Lakhs) towards General reserve.

1.4 Foreign Currency Monetary Item Translation Reserve:

Foreign Currency Monetary Item Translation Difference Account represents unamortized foreign exchange gain/loss on Long-term Foreign Currency Borrowings that are amortized over the tenure of the respective borrowings. The company has adopted exemption of para D13AA of Ind AS 101, according to which a first-time adopter may continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognized in the financial statements for the year ending immediately before the beginning of the first Ind AS financial year as per the previous GAAP. Accordingly, all transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction. The exchange differences arising on reporting of long-term foreign currency monetary items outstanding as on March 31,2018, at rate prevailing at the end of each year, different from those at which they were initially recorded during the year, or reported in previous financial statements, are accumulated in a "Foreign Currency Monetary Item Translation Reserve Account” and amortized over the balance year of such long term monetary item, by recognition as income or expense in each of such years. Long-term foreign currency monetary items are those which have a term of twelve months or more at the date of origination. Movement of FCMITR has been shown in the table above.

1.5 NBFC Reserve:

In terms of RBI circular no. DNBR (PD)CC.No.092/03.10.001/2017-18 dated May 31, 2018, the Company is required to create NBFC reserve under Section 45-IC of RBI Act, 1934 @ 20% of post-tax profit. Accordingly, for the year ended 31.03.2024, an amount of ''25,100.00 Lakhs has been appropriated (previous year: ''17,300.00 Lakhs) towards NBFC reserve.

1.6 Securities Premium:

Securities premium is used to record the premium on issue of shares. The reserve can be utilized only for limited purposes in accordance with the provisions of the Companies Act, 2013. Expenditure on issue of shares is charged to the securities premium account.

During the year ended 31.03.2024, an amount of ''88,696.24 Lakhs has been received (previous year: Nil Lakhs) towards securities premium. Refer Note 38(25) for details on Initial Public Offer.

1.7 Retained Earnings:

Retained earnings represent profits and items of other comprehensive income recognized directly in retained earnings earned by the Company less dividend distributions and transfer to and from other reserves.

1.8 Cash Flow Hedge Reserve:

The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross currency swaps and interest rate swaps. To the extent the derivative contracts designated under the hedge accounting are effective hedges, the change in fair value of the hedging instrument is recognized in ''Effective Portion of Cash Flow Hedges''. Amounts recognized in such reserve are reclassified to the Statement of Profit or Loss when the hedged item affects profit or loss.Movement of Cash Flow Hedge Reserve has been shown in the table above.

1. Company Overview

The Company is a Government Company registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC). The registered office of the Company is at 1^st Floor, India Habitat Centre, East Court, Core- 4A, Lodhi Road, New Delhi -110003. The Company has also been accorded Schedule "A” status vide DPE letter dated September 27, 2023.

Any direction issued by RBI or other regulator are implemented as and when they become applicable. In terms of Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated October 19, 2023 (as amended) herewith referred as Master Direction 2023 the Company falls under NBFC-Middle Layer (ML). The Company has been granted the status of Infrastructure Finance Company (IFC) by RBI vide letter dated March 13, 2023 & is classified as "NBFC-IFC” as per Master Direction 2023.

Equity Shares and Non-Convertible Debt Securities of the Company are listed on National Stock Exchange of India Limited (NSE) and/or BSE Limited.

The Balance Sheet, the statement of profit and loss and the statement of change in equity (SOCIE) are presented in the format prescribed under Division III of Schedule III of the Companies Act , 2013 for NBFCs that are required to comply with Ind AS. The statement of cash flow has been presented as per the requirement of Ind AS 7 - Statement of Cash Flows.

2. Disclosure in respect of Indian Accounting Standard (Ind AS)-10 "Events after the reporting period"

Approval of financial statements

The financial statements for the year ended on March 31, 2024, were approved by the Board of Directors of the Company and authorized for issue on April 19, 2024.

4. Undisclosed income

There were no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the current and previous year in the tax assessments under the Income Tax Act, 1961. Thus, no further accounting in the books of accounts is required.

5. Disclosure in respect of Indian Accounting Standard (Ind AS)-16 "Property Plant and Equipment”

Decommissioning liabilities included in the cost of property, plant and equipment

As per Ind AS 16 Property, Plant and Equipment, Appendix A "Changes in Existing Decommissioning, Restoration and Similar Liabilities", specified changes in decommissioning, restoration or similar liability needs to be added to or deducted from the cost of the asset to which it relates; the adjusted depreciable amount of the asset is then depreciated prospectively over its remaining useful life.

As per para 55 of Ind AS 16, the depreciable amount of an asset is determined after deducting its residual value. The amount of decommissioning liability and residual value related to solar plant is not reliably ascertainable. Hence, decommissioning liability related to the solar plant and the residual value have not been considered. Further , the management is of the opinion that the decommissioning cost (net of residual value of the solar plant), shall not be material.

6. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

General description of various defined employee''s benefits schemes is as under:-

• Provident Fund: During the year ended 31.03.2024 , the Company has recognized an expense of '' 287.27 Lakhs (previous year : '' 251.41 Lakhs) in respect of contribution to Provident Fund at predetermined fixed percentage of eligible employees'' salary and charged to statement of profit and loss which includes contribution of '' Nil Lakhs (previous year : '' Nil Lakhs ) as per sub- clause no. 28 of clause number 27AA i.e. terms and conditions of exemption of The Employees'' Provident Funds Scheme, 1952 towards loss to the trust due to diminution in the value of the investment . Any amount (if recovered) by the Company''s PF Trust shall be refunded to the Company.

• National Pension Scheme / Superannuation Benefit Fund (Defined Contribution Fund): During the year ended 31.03.2024, the Company has recognized an expense of '' 216.55 Lakhs in respect of contribution to National Pension Scheme (NPS) (previous year: '' 185.57 Lakhs at predetermined fixed percentage of eligible employees'' salary and charged to statement of profit and loss.

Other Benefits:

• Earned Leave benefit (EL): Accrual 30 days per year. Encashment 2 times in a calendar year while in service. Encashment on retirement or superannuation maximum 300 days inclusive of HPL.

For year ended 31.03.2024 the Company has recognized ''304.76 Lakhs (previous year: ''72.75 Lakhs) towards earned leave as per actuarial valuation.

• Half Pay Leave benefit (HPL): Accrual 10 full days per year. No encashment while in service. Encashment on retirement or superannuation maximum 300 days inclusive of EL.

For year ended 31.03.2024 the Company has recognized ''151.41 Lakhs (previous year: '' 37.93 Lakhs) towards Half pay leave as per actuarial valuation.

• Gratuity: Accrual of 15 days salary for every completed year of service. Vesting period is 05 years, and the payment is limited to 20 Lakhs subsequent to the pay revision applicable from 01.01.2017.

As per actuarial valuation for the year ended 31.03.2024, Net Asset recognized in Balance Sheet towards gratuity is '' 21.07 Lakhs (previous year: ''Nil Lakhs) for on roll employee, whereas the assets held of ''1,239.57 Lakhs against the liability of ''1,218.50 Lakhs (previous year: ''1,188.83 Lakhs against the liability of ''1,114.80 Lakhs).

• Post-Retirement Medical Benefit (PRMB): The Company contributes to the defined benefit plans for Post-Retirement Medical Scheme using projected unit credit method of actuarial valuation. Under the scheme eligible ex-employees and eligible dependent family members are provided medical facilities.

As per actuarial valuation for year ended 31.03.2024 towards the PRMB, the Company has provided ''172.58 Lakhs (previous year: ''136.22 Lakhs).

• Baggage Allowance: At the time of superannuation, employees are entitled to settle at a place of their choice, and they are eligible for Baggage Allowance.

As per actuarial valuation for the year ended 31.03.2024, towards Baggage Allowance the Company has provided ''3.17 Lakhs (previous year: ''2.82 Lakhs).

• Farewell Gift: At the time of superannuation of employees, company provides farewell gift to employee as per policy framed for this purpose. Value of gift is determined on the basis on designation of the superannuating employee.

During the year ended 31.03.2024, the Company has provided / (recognized) towards the Farewell Gift ''2.21 Lakhs (previous year: ''1.32 Lakhs).

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under:-

a) Grant for Capital Assets

World Bank Clean Technology Fund (CTF) Grant: -

World Bank CTF Grant received related to Intangible assets are treated as deferred income and are recognized in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset as a deduction to amortization expense. Refer Note 38(18) to Financial Statements.

The Company has received total Grant of '' 550.00 Lakhs till 31.03.2024 (previous year: '' 425.40 Lakhs) including reimbursements to the Company and direct disbursement to vendors . The Company has disclosed '' 152.05 Lakhs as balance grant (previous year: '' 425.40 Lakhs) towards the procurement of intangible assets till 31.03.2024. The Company has disclosed the said grant as "Capital Grant from World Bank -Clean Technology Fund (CTF)” under "Other non- financial

b) Revenue Grant

The Company has received a revenue grant "Technical Assistance” (TA) from World Bank, amounting to ''244.83 Lakhs for the year ended 31.03.2024 (previous year: ''49.96 Lakhs) for engaging external consultant to assess loan applications under World bank line of credit. The Company is in compliance with Ind AS 20 "Government grant and assistance” and has adopted to present its revenue grant as deduction to the related expenses.

The Company has received a revenue grant "Technical Assistance” (TA) from KfW, amounting to ''Nil Lakhs for the year ended 31.03.2024 (previous year: ''164.44 Lakhs) for engaging consultants for the ''Solar PV Project Pipeline programme'' and ''Access to Clean Energy programme'' under KfW IV and VI lines of credit respectively. The Company is in compliance with Ind AS 20 "Government grant and assistance” and has adopted to present its revenue grant as deduction to the related expenses.

¹ Shri Pradip Kumar Das has been appointed as Chairman & Managing Director (CMD), w.e.f. May 06, 2020. and was entrusted with additional charge of Director (Finance) w.e.f. May 06, 2020. Subsequently, Ministry of New and Renewable Energy (MNRE) extended the additional charge of Director (Finance) to Shri Pradip Kumar Das, CMD, from time to time and last extended w.e.f. November 06, 2022 for a period of 01 (One) year or till the assumption of charge of the post by regular incumbent, or until further orders whichever is earliest.

MNRE vide its letter dated August 30, 2023 have accorded ex-post facto approval for the entrustment of the Additional Charge of the post of Director (Technical) to Shri Pradip Kumar Das, Chairman and Managing Director, for a period of 01 (One) year w.e.f. March 5, 2023, or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest. Accordingly, the said charge was valid till March 04, 2024.

² Dr. Bijay Kumar Mohanty has been appointed as Director (Finance) of the Company for a period of five years.w.e.f. October 12, 2023 (A/N) vide MNRE Order no. 1/22/2017-IREDA dated October 12, 2023. Further, Dr. Bijay Kumar Mohanty, Director (Finance) has been appointed as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) of the Company in place of Dr. R.C. Sharma, GM (F&A) w.e.f. October 16,2023. Further, MNRE vide Office Order No. 1/13/2017-IREDA dated March 27, 2024 have entrusted the additional charge of the post of Director (Technical), to Shri Bijay Kumar Mohanty, Director (Finance), for a period of 6 (six) months w.e.f. March 05, 2024, or till the appointment of regular incumbent, or until further orders, whichever is the earliest.

³ MNRE vide its order no.340/85/2017-IREDA dated February 7, 2023, has appointed Shri Padam Lal Negi, JS& FA, MNRE and Shri Ajay Yadav, JS, MNRE as Govt. Nominee Directors on the Board of the Company. However, DIN of Shri Ajay Yadav was obtained from Registrar of Companies (ROC) on February 14, 2023. Accordingly, Shri Ajay Yadav is deemed to be Director of the Company w.e.f. February 14, 2023.

⁴ MNRE vide its order no. 340-11/1/2018-IREDA dated January 21, 2022 appointed Shri Shabdsharan N. Brahmbhatt, as Part-Time Non-Official Director (Independent Director) on the Board of the Company for a period of three years with immediate effect. However, as DIN was obtained from ROC on January 28,

2022. Accordingly, he is deemed to be Director of the Company w.e.f. January 28, 2022.

⁵ MNRE vide its order no. 340-11/1/2018-IREDA dated March 28, 2022 appointed Dr. Jagannath C. M. Jodidhar as Non-Official Director (Independent Director) on the Board of the Company for a period of three years from the date of the order. However, as DIN was obtained from ROC on March 31, 2022. Accordingly, he is deemed to be Director of the Company w.e.f. March 31, 2022.

⁶ MNRE vide its order no. 340-11/1/2018-IREDA dated March 06, 2023, has appointed Shri Ram Nihal Nishad & Smt. Rohini Rawat, as Part-Time Non-Official Directors (Independent Directors) on the Board of the Company for a period of three years w.e.f. the date of issue of the order or until further orders, whichever event occurs earlier. However, DIN of both the Directors had been obtained from ROC on March 09, 2023. Accordingly, they are deemed to be Director of the Company w.e.f March 09, 2023.

⁷ Pursuant to retirement of Shri Surender Suyal (Company Secretary & Chief Compliance Officer) on October 31, 2022, Smt. Ekta Madan, Sr. Manager (Corporate Affairs) has been designated as Company Secretary & Compliance Officer in compliance to the provisions of Section 203 of Companies Act, 2013. At present, Shri Piyush Kumar, DGM (Law) has been appointed as Chief Compliance Officer of the Company w.e.f. February 16, 2024 in place of Smt. Punnu Grover, DGM (Finance & Accounts).

⁸ Shri Chintan N. Shah, Director (Technical) completed his tenure on March 4, 2023 (A/N). Accordingly, he ceased to be Director of the Company w.e.f March 4,

2023.

⁹ MNRE vide its letter dated October 31, 2022 has informed that Central Deputation tenure of Shri Vimalendra Anand Patwardhan, Former JS & FA, MNRE has been completed on October 25, 2022. Accordingly, Shri Vimalendra Anand Patwardhan ceased to be Govt. Nominee Director of the Company w.e.f. October 26, 2022. MNRE vide its order no.340/85/2017-IREDA dated February 7, 2023, has informed that Shri Dinesh Dayanand Jagdale, Director JS, MNRE ceased to be Government Nominee Director of the Company w.e.f. February 7, 2023.

Funds under control of the Company

• IREDA Employees Contributory Provident Fund Trust

• IREDA Employees Gratuity Fund Trust

• IREDA Employee Benevolent Fund

• IREDA Exchange Risk Administration Fund (Non-Operational)

During the year, the Company has also received interest of ''16,080.67 Lakhs (previous year: '' 3,998.57 Lakhs) and repayment of principal of '' 4,295.66 Lakhs (previous year: '' 667.08 Lakhs) on the loans to government related entities. Further, an amount of '' 1,110.91 Lakhs (previous year: '' 712.57 Lakhs) has been accounted for as Service Charges towards the various schemes implemented as per the mandate of the Government of India (GOI). Refer Note 28 to Financial Statements.

11. Loans or advances in the nature of loans granted to promoters, directors, KMPs and related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are:

The Company is in process of incorporation of a Wholly Owned Subsidiary Company in IFSC (International Financial Services Centre) - GIFT (Gujarat International Finance Tec-City) City with the proposed name of "IREDA Global Green Energy IFSC Ltd.” which has been approved by ROC, Delhi. The Company has incurred an expenditure of '' 0.02 Lakhs (previous year: '' Nil Lakhs) towards the same.

The Company intends to incorporate a Wholly Owned Subsidiary Company for retail lending w.r.t. rooftop solar, PM KUSUM scheme and other B2C segments. The request in this regard has been submitted to the administrative ministry.

13. Compliance with number of layers of companies

The Company has not invested in layers of companies as specified under Companies (Restriction on number of Layers) Rules, 2017 during the current and previous year.

14. Compliance with approved Scheme(s) of Arrangements

No scheme of Arrangements has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current and previous year.

income Tax

This pertains to Income Tax cases for AY 2014-15 and AY 2020-21 which are pending before the CIT(Appeals), while case for AY 2022-23 has been moved for rectification under Section 154 of the Income Tax Act. The Company is hopeful of a favourable outcome in respect of the various issues covered under the appeal and thus except for the issues decided against the Company in other years, for which reasonable provision has been made, no further provision has been considered as necessary.

For the Income Tax Cases of AY 2010-11 to AY 2018-19 (except AY 2014-15 , which is pending before CIT(A)), the Company has received orders dated 22.03.2024 passed by CIT(A) , wherein the appeal has been partially allowed .Pending the receipt of the order for appeal effect , the Company has provided ''1,479.60 Lakhs (previous year: Nil ) for matters not allowed in the favour of the Company and balance demand, although not finally determined, is not considered as a contingent liability as no outflow is considered probable for the items allowed. Any adjustment shall be accounted for upon receipt of the respective orders. Further, the Company has an option to appeal to higher authorities within the prescribed timelines for matters not allowed.

For the Income Tax Cases of earlier years (AY 1998-99 - AY 2009-10), the Hon''ble High Court of Delhi decided the WRIT petition in favour of the Company vide order dated 08.12.2023 and pronounced that the assessment proceedings concerning from AY 1998-99 to AY 2009-10, pursuant to the orders of the Tribunal dated 21.11.2014 and 29.05.2015, have become time-barred and thus directed the A.O. to accept the returned income and pass the consequential orders. Such consequential orders are awaited and any adjustments shall be accounted for upon receipt of the respective orders.

²Service Tax and Goods & Service Tax (GST) cases

The Company had received a Notice of Demand/Order from the Commissioner, Adjudication, Central Tax, GST Delhi East dated 15.03.2022 creating demands on the Company amounting to ''11,709.11 Lakhs (excluding applicable interest) for financial year 2012-13 to 2015-16. Although the Company contends that entire demand is barred by limitation, it has provided for ''1,248.39 Lakhs (previous year: ''1,174.80 Lakhs) including interest on conservative basis. Based on law and facts in the matter, Service Tax demand (including interest) of '' 22,995.18 Lakhs (previous year: ''21,492.48 Lakhs) has been disclosed as contingent liability. Further, since the Company is a government enterprise, no mala fide intention can be attributed to it and thus, extended period of limitation ought not to be invoked based on certain decisions of Hon''ble Supreme Court in such cases and hence the penalty has not been considered for disclosure as a contingent liability. The Company has filed an appeal with CESTAT, New Delhi on 15.06.2022 in the matter and the same is pending.

The Company had received order dated 25.03.2022 from the office of Additional Director General (Adjudication) on recovery of Service Tax on Guarantee Fee Paid to Government under Reverse Charge basis for the period April 2016 to June 2017 raising a demand of '' 2,072.89 Lakhs towards Tax, '' 2,072.89 Lakhs towards penalty and applicable interest thereon. While the Company had filed an appeal against the same before the Hon''ble CESTAT, Mumbai on 24.06.2022, it has made requisite provision towards the Tax and interest thereon amounting to ''6,309.78 Lakhs (previous year: ''5,683.73 Lakhs) and penalty amount of ''2,072.89 Lakhs (previous year: ''Nil Lakhs) has been disclosed as contingent liability.

The Company has received order dated 31.01.24 from the office of Commissioner of Central Tax Appeals -1, Delhi, vide which the appeal filed by the Company against recovery of GST on Guarantee Fee Paid to Government under Reverse Charge basis for the period 01.07.2017 to 26.07.2018 has been rejected. While the Company is in the process of filing appeal with the GST Appellate Tribunal, it has paid the Tax amount of ''1,327.87 Lakhs under protest and made requisite provision towards Tax and interest thereon amounting to '' 2,895.75 Lakhs (previous year: ''2,627.98 Lakhs). The penalty amount of ''1,525.58 Lakhs (previous year: '' Nil Lakhs) has been disclosed as contingent liability.

includes penalty for '' 2.62 Lakhs (previous year: '' 2.62 Lakhs) imposed by Ministry of Corporate Affairs (MCA) w.r.t. non-appointment of Woman Director. The Company being a government company has no control over appointment of directors and hence the same has not been considered for provision. The Company has filed appeal before the Regional Director (NR) MCA. The matter is still pending for adjudication. Also includes an amount of ''377.56 Lakhs (previous year: ''346.07 Lakhs) pertaining to cases

20. Disclosure as per Indian Accounting Standard (Ind AS) 107 - "Financial Instruments Disclosures"

The Company has established a comprehensive policy framework to effectively manage credit risk, market risk, liquidity risk, and operational risk. The Risk Management Policy has been developed under the guidance of the Risk Management Committee (RMC) and approved by the Board of Directors. The Risk Management Committee is a Board level Committee having the overall responsibility of risk management of the organization. The Risk Management Policy is periodically refined based on emerging market trends and the Company''s own experience. The Risk Management Committee, headed by an Independent Director, ensures independent risk oversight and full transparency in the risk management process. The Prudent Risk Management policies are ratified by the Board of Directors to ensure compliance with RBI guidelines and SEBI (LODR) Regulations, 2015, which form the governing framework for the Company''s business activities. The Company also has a designated Chief Risk Officer (CRO) as per the directive of the RBI.

A Foreign Exchange and Derivatives Risk Management Policy, and a Foreign Exchange and Derivative Management Committee (FMC) is in place in the Company and hedging instruments such as forward contracts, swaps etc. are used to lower/mitigate the currency and interest rate risks on the foreign currency borrowings. Hedging instruments are used exclusively for hedging purpose and not as a trading or speculative instrument.

The key risks which the Company faces during its business operations are Credit Risk, Market Risk, Liquidity Risk, and Operational Risk. These risks are carefully identified, assessed, and managed through the implemented risk management policies and procedures. 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.

A. Credit risk

Credit risk is the inherent risk in the lending operation and arises from lowering of the credit quality of the borrowers and the risk of default in repayments by the borrowers. A robust credit appraisal system is in place for the appraisal of the projects in order to assess the credit risk. The process involves appraisal of the projects, rating by external agencies and assessment of credit risk, appropriate structuring to mitigate the risk along with other credit risk mitigation measures. The Company splits its exposures into smaller homogenous portfolio based on shared credit risk characteristic, as described below in the following order: -

• Secured/ unsecured i.e., based on whether the loans are secured.

• Nature of security i.e., nature of security if the loans are determined to be secured.

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Mar 31, 2023

The Company is the implementing agency for certain schemes of the Government Of India .The funds received for disbursement to various agencies under the scheme are kept in a separate bank account. The undisbursed funds for the scheme (including interest thereon, if any) are presented as designated funds of the Scheme . Refer Note 38 (31).

‘An amount of Z 42.63 Lakhs (As on 31.03.2022 : Z 40.50 Lakhs) kept as FDR including interest with Bank of Baroda, Bhikaji Cama Place New Delhi against two Bond holders payments i.e. M/s The Bengal Club Ltd and Ms. Maya M. Chulani as per the order dated 31.7.2009 passed in Civil Misc Writ petition No. 28928 of2009 passed by the Hon’ble Allahabad High Court.

²Provided by KfW to cover up to 70% default risks of the overall ''Access to Energy'' portfolio of the Comapny under KfW VI line of credit by establishment of a portfolio risk reserve account (PRRA). The said amount shall be utilised to recover up to 70% of outstanding debt service obligation of the borrower, after exhausting Debt Service Reserve Account (DSRA), upon being declared NPA.

Out of the total unsecured loans of Z 395,448.82 Lakhs as on 31.03.2023 (As on 31.03.2022 : Z 447,471.76 Lakhs), Loans amounting to Z 395,222.01 Lakhs as on 31.03.2023 (As on 31.03.2022 : Z 447,154.80 Lakhs) are secured by intangible security by way of exclusive charge on Default Escrow Account by earmarking unencumbered specific revenue stream for repayment of IREDA loans.

During the year , the Company has sent letters to borrowers, except where loans have been recalled or pending before court/NCLT, seeking confirmation of balances as at 31.03.2023 to the borrowers. Confirmations for 4.68% (previous year : 9.75%) of the said balances have been received. Out of the remaining loan assets amounting to Z 4,487,229.29 Lakhs (previous year : Z 3,062,319.72 Lakhs) for which balance confirmations have not been received, 82.63% loans (previous year : 68.80%) are secured by tangible securities, 12.69% (previous year : 31.20%) by way of Government Guarantee/ Loans to Government and balance are unsecured loans.

For Disclosures on Credit Risk , refer Note 38 (37).

i) The possession of the NBCC premises was delayed due to Public Interest Litigation (PIL) filed in the National Green Tribunal, thus not considered as delayed w.r.t. the original plan .

ii) IREDA has taken over the possession of office space at NBCC Building, Kidwai Nagar on 06.07.21 & 2 residential flats at NBCC Building, Kidwai Nagar on 15.07.21.The MoU has been signed with NBCC-NSL limited on 27.7.2022 for award of interior work for IREDA office space.

iii) The matter for payment of property tax is also under discussions with NDMC and upon finalisation of demand by NDMC for IREDA as well as other institutions, the same will be paid.

i) Foreign currency borrowings from various multilateral / bilateral agencies viz. ADB, World Bank , KfW, AFD, JICA and EIB have been converted into rupee and hedging of the same is done by undertaking plain vanilla swap transaction /currency interest rate swap / principal only swap etc. with various banks with whom IREDA has signed International Swaps and Derivative Association (ISDA) Master Agreement. These derivative transactions have been entered into with the participating bank for a maturity period which may be shorter than the maturity period of the loan. The hedging of the foreign currency loan has been carried out at various intervals and in multiple tranches based on the drawl under the lines of credit. In addition to the interest cost and other financial charges, due to hedging of foreign currency loans, these loans carry hedging/derivative cost, which is tranche wise as per the drawl under the line of credit, thus the applicable rate of interest on these lines of credit has not been disclosed above.

ii) *With effect from 01.03.2021, the Term Loan Facility I and II from State Bank Of India were converted to FCNR(B) Demand Loan till 28.02.2022. The FCNR Loans had a fixed interest rate of 6.20% p.a. and other terms and conditions were same as that of erstwhile Term Loan Facility. After 28.02.2022, the FCNR Loans were converted back to Rupee Term Loan Facility.

iii) The Company raises funds through various instruments including bonds. During the year, the Company has not defaulted in servicing of any of its debt service obligations whether for principal or interest .

iv) Funds raised during the year have been utilised for the stated objects in the offer document/information memorandum/facility agreement.

v) The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders .

vi) The statements of book debts filed by the Company with banks/ financial institutions are in agreement with the books of accounts.

vii) #The loan From India Infrastructure Finance Company Limited (IIFCL) - Loan-II was pre-closed on 24.08.2022

viii) Term Loans from banks/ financial institutions/ Govt. as mentioned in Note No. 20 have been raised at interest rates ranging from 5.60% to 8.30% payable on monthly/quarterly/semi annual rests.

1 The Company has issued only one class of equity shares having face value of ^ 10 per share.

2 Equity shareholders are entitled to receive dividends which is subject to approval in the ensuing Annual General Meeting, except in case of interim dividend.

3 Equity Shareholders have full voting rights with no restrictions.

4 The company has not, for a year of 5 years immediately preceeding the balance sheet date :

a) issued equity share without payment being received in cash.

b) issued equity share by way ofbonus share.

c) bought back any of its share.

5 The company has no equity share reserved for issue under options/contracts /commitment for the sale of shares or disinvestment .

6 Calls unpaid (showing aggregate value of calls unpaid by directors and officers): Nil

7 Forfeited shares (amount originally paid up): Nil

8 For Capital Management: Refer Note 38(38).

9 During the FY 2021-22 Government of India (GoI) had infused ^ 150,000.00 Lakhs of equity contribution leading to increase in Equity Share Capital to 2,284.60 Lakhs . Refer Note 38(43).

Nature and purpose of reserves

1 Special Reserve : Special reserve has been created to avail income tax deduction under section 36(1)(viii) of Income-Tax Act,1961 @ 20% of the profit before tax arrived from the business of providing long term finance .

2 Debenture Redemption Reserve : Debenture redemption reserve is created out of the Retained earnings for the purpose of redemption of Debentures/Bonds .This reserve remains invested in the business activities of the company.

3 General Reserve : General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes, as the same is created by transfer from one component of equity to another.

4 Foreign Currency Monetary Item Translation Reserve (FCMITR) : Foreign Currency Monetary Item Translation Difference Account represents unamortized foreign exchange gain/loss on Long-term Foreign Currency Borrowings that are amortized over the tenure of the respective borrowings. IREDA has adopted exemption of para D13AA of Ind AS 101, according to which a first-time adopter may continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the year ending immediately before the beginning of the first Ind AS financial reporting year as per the previous GAAP. Accordingly, all transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction. The exchange differences arising on reporting of long-term foreign currency monetary items outstanding as on March 31,2018, at rate prevailing at the end of each reporting year, different from those at which they were initially recorded during the year, or reported in previous financial statements, are accumulated in a “Foreign Currency Monetary Item Translation Reserve Account” and amortized over the balance year of such long term monetary item, by recognition as income or expense in each of such years.Long-term foreign currency monetary items are those which have a term of twelve months or more at the date of origination

5 Retained Earnings : Retained earnings represent profits and items of other comprehensive income recognised directly in retained earnings earned by the Company less dividend distributions and transfer to and from other reserves.

6 NBFC Reserve : Reserve created u/s 45-IC(1) of Reserve Bank of India Act, 1934 represents transfer from retained earning @ 20 % of net profit after tax for the year .

7 Effective Portion of Cash Flow Hedges : The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross currency swaps and interest rate swaps. To the extent the derivative contracts designated under the hedge accounting are effective hedges, the change in fair value of the hedging instrument is recognised in ‘Effective Portion of Cash Flow Hedges’. Amounts recognised in such reserve are reclassified to the Statement of Profit or Loss when the hedged item affects profit or loss.

3. Disclosure in respect of Indian Accounting Standard (Ind AS)-37 "Provisions, Contingent Liabilities and Contingent Assets"

(A) Contingent Liabilities:		(^ in Lakhs)
Particulars	As at 31.03.2023	As at 31.03.2022
a) Claims against the company not acknowledged as debt
a) Taxation Demands:
Income Tax cases1	23,776.48	21,212.06
Service Tax and Goods & Service Tax (GST) cases2	21,492.48	19,993.88
ii) Others3	348.69	303.61
b) Guarantees excluding financial guarantees
i. Guarantees	48,611.41	66,803.82
ii. Letter of comfort / Payment Order Instrument issued and outstanding	136,654.23	78,579.23
c) Other money for which the company is contingently liable
i. Property tax in respect of office building at India Habitat Centre (Refer Note 38(26))	Undeterminable	Undeterminable

‘Income Tax (Income Tax Cases - AY 1998-99 - AY 2009-10):

This includes Income Tax cases for AY 1998-99 to AY 2002-03 were referred back on the direction of Hon’ble High Court of Delhi to Hon’ble ITAT and Hon’ble ITAT to the Assessing Officer and Income Tax cases for AY 2003-04 to AY 2009-10 were referred back on the direction of Hon’ble ITAT to the Assessing Officer (referred as AO). The AO had not passed the order on these cases within the statutory time limit prescribed under the Act. Earlier the company had deposited the taxes under protest on the basis of demand raised for the aforementioned Assessment Years.

In view of the foregoing, the demands paid over and above the tax payable as per returns filed became refundable. Accordingly, during Financial Year 2018- 19, a Writ petition has been filed with Hon’ble High Court to issue the necessary directions to the department to grant the refund for the aforementioned years. The Hon’ble High Court at Delhi had passed an interim order as under- “In the meanwhile, the respondents are permitted to proceed and complete the assessment orders and not give effect to it or take any coercive action.” Final decision in the matter is still pending.

‘Service Tax and Goods & Service Tax (GST) cases

The Company had received of Notice of Demand/Order from the Commissioner, Adjudication, Central Tax, GST Delhi East vide no GST-15/Adju/DE/IREDA/71/2017-18/3706-08 dated 15.03.2022 creating demands on IREDA amounting to ^ 11,709.11 Lakhs for Financial year 2012-13 to 2015-16. Although the company contends that entire demand is barred by limitation, it has provided for ^ 1,174.80 Lakhs (previous year ^ 1,101.41 Lakhs) including interest on conservative basis. Based on law and facts in the matter, Service Tax demand (including interest) of ^ 21,492.48 Lakhs ( previous year ^ 19,993.88 Lakhs) has been disclosed as contingent liability.

Further, since the company is a government enterprise, no mala fide intention can be attributed to it and thus, extended period of limitation ought not to be invoked based on certain decisions of Hon’ble Supreme Court in such cases and hence the penalty has not been considered for disclosure as a contingent liability. The company has filed an appeal with CESTAT, New Delhi on 15.06.2022 in the matter.

The company has also received order no. DE/NP/R-174/GST/ADC(NR)/005/2022-23 dated 28.02.2023 from the office of Additional Commissioner, Adjudication, Central Tax, GST Delhi East on recovery of GST on Guarantee Fee Paid to Government under Reverse Charge basis for the period: 01.07.2017 To 26.07.2018 raising a demand of Rs. 1,525.08 Lakhs towards Tax, Rs. 1,525.58 Lakhs towards penalty and applicable interest thereon. While the Company is in the process of filing an appeal against the same, requisite provision towards the Tax and interest thereon has already been made in the books of accounts, but the penalty has not been considered for disclosure as contingent liability as explained above.

³Includes Penalty for ^ 2.62 Lakhs imposed by Ministry of Corporate Affairs (MCA) w.r.t. non-appointment of Woman Director (Refer 58(G)). The company being a government company has no control over appointment of directors and hence the same has not been considered for provision. Also includes cases pending before Hon’ble High Court of Delhi in the form of Writ Petition against the order of disciplinary authority for dismissal of staff from service of IREDA. There is no interim order in this matter.

b) Contingent Assets: Undeterminable* (previous year: Undeterminable*).

*The Madras High Court vide its order dated 29.03.2022, regarding recovery proceedings against Arunachalam Sugar Mills Ltd. (ASML), enabled the Company to dispose off -- the assets of ASML for ^ 710.00 Lakhs plus Goods & Services Tax (GST) of 18%. The Company has already recovered ^ 177.50 Lakhs against the said sale along with GST amounting to ^ 127.80 Lakhs, which was duly deposited by the Company. The company also received ^ 23.11 Lakhs against the remaining outstanding of ^ 532.50 Lakhs through the order of the honourable court. The balance of ^ 509.39 Lakhs is with the official liquidator (OL) who was directed by the honourable court to call upon secured creditors and settle charges in favor the workmen (which are still undetermined) before transmitting the balance to the Company. The Company had ^ 0.40 Lakhs outstanding (Actual principal outstanding is ^ 4,840.12 lakhs) in its books of accounts against an equivalent provision being a NPA loss asset.

IREDA is taking appropriate steps to sell the immovable assets pertaining to M/s Arunachalam Sugar Mills Ltd., which is charged to IREDA valued at Rs. 2,850 lakhs through Hon’ble High Court vide order dated 31.03.2023 through open public auction.

4. Commitments		(^ in Lakhs)
Particulars	As at 31.03.2023	As at 31.03.2022
Capital Commitments:
Estimated amount of contracts remaining to be executed	1,299.53	682.80
on capital account

5. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as on 31.03.2023 (as on 31.03.2022: ^ Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Disclosure in respect of Indian Accounting Standard (Ind AS)-23 "Borrowing Costs"

^ Nil (previous year: ^ Nil)

8. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

General description ofvarious defined employee''s benefits schemes is as under:

• Provident Fund: During the year ended 31.03.2023, the company has recognized an expense of ^ 251.41 Lakhs (previous year : ^ 519.69 Lakhs) in respect of contribution to Provident Fund at predetermined fixed percentage of eligible employees'' salary and charged to statement of profit and loss which includes contribution of ^ Nil Lakhs (previous year : ^ 291.47 Lakhs ) as per sub- clause no. 28 of clause number 27AA i.e. terms and conditions of exemption of The Employees’ Provident Funds Scheme, 1952 towards loss to the trust due to diminution in the value of the investment . Any amount (if recovered) by the IREDA’s PF Trust shall be refunded

to the company. In view of recent order of the Hon''ble Supreme Court dated 4.11.2022 , the company has given its employees , opportunity to exercise the joint option for EPS 1995 pension on actual / higher salary basis.

• National Pension Scheme /Superannuation Benefit Fund (Defined Contribution Fund): During the year ended 31.03.2023, the company has recognized an expense of ^ 185.57 Lakhs in respect of contribution to National Pension Scheme (NPS) (previous year: ^ 156.29 Lakhs in respect of contribution to National Pension Scheme (NPS)) at predetermined fixed percentage of eligible employees'' salary and charged to statement of profit and loss.

Other Benefits:

• Earned Leave benefit (EL): Accrual 30 days per year. Encashment 2 times in a calendar year while in service. Encashment on retirement or superannuation maximum 300 days inclusive of HPL. For the year ended 31.03.2023 the company has provided ^ 72.75 Lakhs (previous year : ^ 174.44 Lakhs as income) towards earned leave as per actuarial valuation and company''s best estimates.

• Half Pay Leave benefit (HPL) : Accrual 10 full days per year. No encashment while in service. Encashment on retirement or superannuation maximum 300 days inclusive of EL. For the year ended 31.03.2023 the company has provided ^ 37.93 Lakhs (previous year: ^ 56.03 Lakhs) towards sick leave as per actuarial valuation and company''s best estimates.

• Gratuity: Accrual of 15 days salary for every completed year of service. Vesting period is 05 years, and the payment is limited to 20 Lakhs subsequent to the pay revision applicable from 01.01.2017. As per actuarial Valuation and company''s best estimates for the year ended 31.03.2023, towards gratuity is ^ 1,114.80 Lakhs (previous year: ^ 1,115.77 Lakhs) for on roll employee, whereas the assets held of ^ 1,188.83 against the liability of ^ Nil Lakhs (previous year: ^ 1,167.44 Lakhs against the liability of ^ 1,110.95 Lakhs). The expenses charged during the year is ^ 60.17 Lakhs (previous year: ^ 72.93 Lakhs)

• Post-Retirement Medical Benefit (PRMB): The Company contributes to the defined benefit plans for PostRetirement Medical Scheme using projected unit credit method of actuarial valuation. Under the scheme eligible ex-employees and eligible dependent family members are provided medical facilities. As per Actuarial Valuation company''s best estimates for year ended 31.03.2023 towards the PRMB, the company has provided ^ 136.22 Lakhs (previous year : ^ 220.06 Lakhs).

• Baggage Allowance: At the time of superannuation, employees are entitled to settle at a place of their choice, and they are eligible for Baggage Allowance. As per actuarial Valuation and company''s best estimates for the year ended 31.03.2023, towards Baggage Allowance the company has provided ^ 2.82 Lakhs (previous year : ^ 3.45 Lakhs).

• Farewell Gift: At the time of superannuation of employees, company provides farewell gift to employee as per policy framed for this purpose. Value of gift is determined on the basis on designation of the superannuating employee. During the year ended 31.03.2023, the company has provided towards the Farewell Gift ^ 1.32 Lakhs due to decrease in liability (previous year : ^ 11.07 Lakhs).

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated. Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

9. Disclosure in respect of Indian Accounting standard (Ind AS)-108: "Operating Segments"

(i) Operating segments

Based on the "management approach" as defined in Ind AS 108, the CMD, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on an analysis of various performance indicators by business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segment and are as set out in the significant accounting policies.

The Company operates in two segments - Financing activities in the Renewable Energy (RE) & Energy Efficiency (EE) sector and Generation of power through Solar Plant operations at Kasaragod, Kerala. Major revenue for the company comes from the segment of financing activities in the RE & EE sector. The other operating segment -Generation of power through Solar Plant is not a reportable segment. The company operates in India; hence it is considered to operate only in domestic segment. As such considered as a single business/geographical segment for the purpose of Segment Reporting.

¹ Shri Pradip Kumar Das has been appointed as Chairman & Managing Director (CMD), IREDA w.e.f. 06.05.2020 and was entrusted with additional charge of Director (Finance) w.e.f. 06.05.2020. Subsequently, MNRE extended the post of additional charge of Director (Finance) to Shri Pradip Kumar Das, CMD, IREDA from time to time and last extended w.e.f. 06.05.2022 for a period of six months which was valid till 05.11.2022. MNRE vide Office Order No.1/13/2017-IREDA dated April 10, 2023 entrusted the additional charge for the post of Director (Technical), IREDA to Shri Pradip Kumar Das, Chairman & Managing Director, IREDA for a period of three months w.e.f. 05.03.2023 or till the appointment of a regular incumbent, or until further orders, whichever is earliest.

² Shri Chintan N. Shah, Director (Technical) has completed his tenure on March 4, 2023 (a/n). Accordingly, he is ceased to be director of IREDA.

³ MNRE vide its letter dated 31.10.2022 has informed that Central Deputation tenure of Shri Vimalendra Anand Patwardhan, Former JS & FA, and MNRE has been completed on 25.10.2022. Accordingly, Shri Vimalendra Anand Patwardhan is ceased to be Govt. Nominee Director of IREDA.

⁴ MNRE vide its order no.340/85/2017-IREDA dated February 7, 2023, has informed that Shri Dinesh Dayanand Jagdale, Director (Govt Nominee) Ceased to be Director of IREDA w.e.f February 7, 2023.

⁵ MNRE vide its order no.340/85/2017-IREDA dated February 7, 2023, has appointed Shri Padam Lal, JS& FA, MNRE and Shri Ajay Yadav, JS, MNRE as Govt. Nominee Directors on the Board of IREDA. However, DIN of Shri Ajay Yadav has been obtained from Registrar of Companies on February 14, 2023. Accordingly, Shri Ajay Yadav is deemed to be director of IREDA w.e.f February 14, 2023.

⁶ Ministry of New and Renewable Energy (MNRE) vide its order no. 340-11/1/2018-IREDA dated 21.01.2022 appointed Shri Shabdsharan Brahmbhatt, as Part-Time Non-Official Director (Independent Director) on the Board of IREDA for a period of three years with immediate effect. However, as DIN has been obtained from Registrar of Companies on 28.01.2022. Accordingly, he is deemed to be Director w.e.f. 28.01.2022.

⁷ Ministry of New and Renewable Energy (MNRE) vide its order no. 340-11/1/2018-IREDA dated 28.03.2022 appointed Shri Chennakesava Murthy Jaganath, as Non-Official Director (Independent Director) on the Board of IREDA for a period of three years from the date of the order. However, as DIN has been obtained from Registrar of Companies on 31.03.2022. Accordingly, he is deemed to be Director w.e.f. 31.03.2022. Also, the name of Shri Chennakesava Murthy Jaganath has been updated as Dr. Jagannath C. M. Jodidhar in MCA records on 29.09.2022.

⁸ Ministry of New and Renewable Energy (MNRE) vide its order no. 340-11/1/2018-IREDA dated 06.03.2023 , has appointed Shri Ram Nihal Nishad & Smt. Rohini Rawat, as Part-Time Non-Official Directors (Independent Directors) on the Board of IREDA for a period of three years w.e.f. the date of issue of the order or until further orders, whichever event occurs earlier. However, DIN of both the Directors have been obtained from Registrar of Companies on 09.03.2023. Accordingly, they are deemed to be director of IREDA w.e.f 09.03.2023.

⁹ Shri Surendra Suyal, (Company Secretary) was appointed as the Chief, Internal Audit by the Board in its 361st meeting w.e.f. 23.05.2022. Pursuant to retirement of Shri Surendra Suyal on 31.10.2022, Smt. Ekta Madan, Sr. Manager (Corporate Affairs) has been designated as Company Secretary cum Compliance Officer in compliance to the provisions of Section 203 of Companies Act, 2013 and Shri Som Pal, GM (Internal Audit) has been appointed as Chief Compliance Officer w.e.f 01.11.2022.

• The Chairman and Managing Director, Director (Finance) and Director (Technical) have also been allowed staff car including private journey upto a ceiling of 1000 Kms. per month on payment of monthly charges as per Department of Public Enterprises guidelines.

• Contribution towards Gratuity Fund, for Functional Directors is not ascertainable separately as the contribution to LIC is not made employee wise.

• Provision for leave encashment, post-retirement medical benefit, farewell gift etc. to functional director have been made on the basis of actuarial valuation and are in addition to the above given compensation.

Major terms and conditions of transactions with related parties

1. Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions

2. The remuneration and staff loans to Key Managerial Personnel are in line with the service rules of the Company.

3. There are no pending commitments to the Related Parties.

During the year, the Company has also received interest of ^ 3,998.57 Lakhs (previous year: ^ 1,051.06 Lakhs) and repayment of principal of ^ 667.08 Lakhs (previous year : ^ 541.38 Lakhs) on the loans to government related entities. Further, an amount of ^ 712.57 Lakhs (previous year : ^ 617.15 Lakhs) has been accounted for as Service Charges towards the various schemes implemented as per the mandate of the Government of India (GoI) (Refer Note 28 ). During the year ended 31.03.2023; MoU has been signed with NBCC-NSL limited on 27.07.2022 for award of interior work for IREDA office space at NBCC office Kidwai Nagar for which the BoQ has been submitted for total amount of ^ 1,711 Lakhs. approx.

Above transactions with the Government related entities cover transactions that are significant individually and collectively. The Company has also entered into other transactions such as telephone expenses, air travel and deposits etc. with other CPSUs. They are insignificant individually & collectively and hence not disclosed. All transactions are carried out on market terms.

12. Disclosure in respect of Indian Accounting standard (Ind AS) 116 "Leases"

The company has applied Ind AS 116 with the date of initial application of April 01, 2019. The company has applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial application is recognized in retained earnings on April 01,2019. The company has applied the above-mentioned approach to all of its lease arrangement enforceable as on April 01,2019.

As per Para C11 of Ind AS 116, for leases that were classified as finance leases applying Ind AS 17, the carrying amount of the right-of-use asset and the lease liability at the date of initial application shall be the carrying amount of the lease asset and lease liability immediately before that date measured applying Ind AS 17. Hence, the carrying amount of lease asset in case of leasehold property at India Habitat Centre (IHC) and August Kranti Bhawna (AKB), the Company has carried forward the same amount as right of use asset as per Ind AS 116.

a) Description of lease accounted as Right of Use assets as per Ind AS 116

The Company has lease agreements for office space in Mumbai and Solar Park Land at Kerala. The tenure of each agreement and rental payments are different. The Company has applied the measurement principles under Ind AS 116 for the leases on which exemption under short term lease are not available in line with the accounting policy of the Company.

14. Performance Related Pay

During the year ended 31.03.2023, the Company has made a provision of ''935.54 Lakhs (previous year : ''695.96 Lakhs) towards the performance related pay. An amount of ''524.82 Lakhs was paid during the year (previous year : '' 810.59 Lakhs) to the eligible employees as per the underlying scheme.

16. The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross currency swaps, principal only swaps and interest rate swaps. To the extent the derivative contracts designated under the hedge accounting are effective hedges, the change in fair value of the hedging instrument is recognized in ‘Effective Portion of Cash Flow Hedges’. Amounts recognized in such reserve are reclassified to the Statement of Profit and Loss when the hedged item affects profit or loss.

17. In addition to the security held by way of assets etc., of the borrowing entities, the Company held FDRs & Guarantees issued by Banks amounting to ''24,935.83 Lakhs and ''18,599.32 Lakhs respectively (previous year : ''20,055.86 Lakhs and ''16,466.17 Lakhs respectively) as additional securities for loans granted.

18. As per the Board approved Foreign Exchange and Derivative Risk Management Policy of IREDA, an open exposure on foreign currency loans (40% of outstanding forex borrowing) is permissible. The open exposure as on 31.03.2023 is ''188,629.68 Lakhs (previous year : ''1,94,043.39 Lakhs) which is 18.62% ( previous year: 18.60 %) ofthe outstanding forex borrowing and is within the permissible limits.

Out of the said open exposure part hedging has been done for EURO 3,03,84,097.05 loan has been part hedged by taking Principal Only Swap (USD/INR) for USD 33,726,347.73 equivalent to '' 27,728.76 Lakhs (as on 31.03.2022 USD 33,726,347.73 equivalent to ''25,566.97 Lakhs). JPY 23,71,500,000 has been hedged by taking Principal Only Swap (USD/JPY) equivalent to USD 1,76,00,564.05 amounting to ''14,655.87 Lakhs at applicable rate on 31.03.2023 (as on 31.03.2022: Nil)

(ii) Fair value of Investment Property :

The market value of the property has been assessed (as per the valuation done by a registered valuer as defined under rule 2 of Companies (Registered Valuers and valuation) Rules, 2017) at ''258.16 Lakhs as on 31.03.2023 (previous year: ''230.00 Lakhs).

21. Decommissioning liabilities included in the cost of property, plant and equipment

As per Ind AS 16 Property, Plant and Equipment, Appendix A “Changes in Existing Decommissioning, Restoration and Similar Liabilities”, specified changes in decommissioning, restoration or similar liability needs to be added to or deducted from the cost of the asset to which it relates; the adjusted depreciable amount of the asset is then depreciated prospectively over its remaining useful life. As per para 55 of Ind AS 16, the depreciable amount of an asset is determined after deducting its residual value. The amount of decommissioning liability and residual value related to solar plant is not reliably ascertainable. Hence, decommissioning liability related to the solar plant and the residual value have not been considered. However, the management is of the opinion that the decommissioning cost (net of residual value of the solar plant), will not be material.

22. Approval of financial statements

The financial statements for the year ended on 31.03.2023 were approved by the Board of Directors of the company and authorized for issue on 25.04.2023.

23. Revenue from Contracts with Customers

Company is operating a solar power plant. The Power Purchase Agreement (PPA) has been signed between IREDA and Kerala State Electricity Board Limited (KSEBL) on 31.03.2017 @ '' 4.95/KWH or rate as approved by Kerala State Electricity Regulatory Commission (KSERC), whichever is lower. Accordingly, IREDA filed a petition for approval of the Power Purchase Agreement with KSERC, which in its interim order dated 14.02.2018 approved an interim tariff of '' 3.90 per unit till March 2018. During the financial year 2019-20, KSERC passed a tariff order and determined tariff of '' 3.83 per unit. Accordingly, Company has recognized the

gross revenue on the supply of power to KSEBL. Further, the Company has also continued to provide its consultancy services during the year.

24. SOLAR POWER PROJECT

The company entered into an MOU with Solar Energy Corporation of India (SECI) in the year 2014-15 for implementation of 50 MW Solar Project of IREDA situated at Ambalathara Solar Park, Kasaragod District, in the state of Kerala. It has been capitalized in the books in FY 2016-17 at '' 29,398.48 Lakhs. In turn, SECI (as a Project Management Consultant (PMC) on behalf of IREDA had selected M/s. Jakson Engineers Limited as EPC (Engineering Procurement and Construction) consultant for designing, engineering, supply, construction, erection, testing, commissioning of Solar PV Power Plant at a fixed price of '' 26,929.25 Lakhs plus 8% management charges (including Taxes) of '' 2,456.32 Lakhs payable to SECI and '' 12.92 Lakhs being interest capitalized during the FY 2016-17. An amount of '' 1,500.00 Lakhs (excluding taxes) which was paid as advance towards evacuation charges to Renewable Power Corporation of Kerala Limited (RPCKL), the Solar Park Developer, was capitalized during FY 2017-18. During FY 2019-20, a further amount of '' 812.71 Lakhs was paid and capitalized.

The PPA was signed between IREDA and Kerala State Electricity Board Limited (KSEBL) on 31.03.2017 @ '' 4.95 /KWH or rate as approved by Kerala State Electricity Regulatory Commission (KSERC), whichever is lower. Accordingly, IREDA filed a petition for approval of the Power Purchase Agreement with KSERC, which in its interim order dated 14.02.18 had approved an interim tariff of '' 3.90 per unit. Further to the same, KSERC, in its order dated 06.02.19 had approved of the levelized tariff @ '' 3.83 per unit. It has also further ordered as under:

• KSEB Ltd shall reimburse, any tax paid on the Return on Equity (RoE), limited to the amount of equity specified in this Order. For claiming the tax, developer shall furnish the proof of payment of such tax to KSEB Ltd.

• KSEB Ltd shall reimburse, the land lease paid by IREDA /RPCKL, less amount received as subsidy, if any, in addition to the above.

Accordingly, in the FY 2020-21, IREDA had made a claim of '' 1,313 Lakhs from RPCKL, who had responded in the negative of the claim and the value thereof. Further, IREDA has approached Appellate Tribunal for Electricity (APTEL) with a review petition for review of the tariff fixed which is pending. Notwithstanding, the generation income has been accounted for @ '' 3.83 per unit.

The Company had issued the Operational Acceptance certificate on 09.03.2020. The Plant handover and taking over has been done on 09.03.2021. The Solar Project has been set up on Leasehold land, for which no lease rentals were payable for the first 5 years. The Company has entered into a lease agreement with Renewable Power Corporation of Kerala Limited (RPCKL) with respect to the land use for a period of 28 years (from 07.10.2015 to 06.10.2043). As per the agreement, the Company was exempted from payment of the land lease charges till 06.10.2020. As per KSERC Tariff order dated 06.02.2019, IREDA is eligible to avail reimbursement of land lease charges paid to RPCKL. In view of this reimbursement letter to KSEBL has been sent on 24.03.2022 for lease rent paid. The same being uncertain, no asset has been created towards the same.

Further, IREDA had filed a review petition on 05.04.2022 before the Appellate Tribunal for Electricity and IREDA is pressing its grounds on being permitted the total costs paid by it to RPCKL in full which amounts to

2.538.00 Lakhs and not '' 1,225.00 Lakhs as allowed by the State Commission. In a cost-plus based tariff determination process under Sections 61, 62 & 64 of the Electricity Act, 2003, the actual costs incurred by the Petitioner ought to be capitalized in tariff and the State Commission cannot proceed based on estimates. Since the Review can only be sought for on limited grounds, IREDA proceeded with filing of a Second Appeal as permissible before the Hon''ble Supreme Court on 08.06.2022 in terms of Section 125 of the Electricity Act, 2003, on certain legal grounds. Diary No. has been given i.e., No. 18137 of2022. IREDA has filled rejoinder to the reply filed by RPCKL.

IREDA has filed the Review Petition No. 15 of 2023 under Section 120 (2) (f) of the Electricity Act, 2003 seeking review of the Judgement dated 10.02.2022 passed by the Hon’ble Appellate Tribunal of Electricity in Appeal No. 141 of 2021. The present review is limited to the decision of this Hon’ble Tribunal on the issue of expenditure incurred by IREDA as project development cost and paid to Respondent No. 2 - Renewable Power Corporation of Kerala Limited. M/s RPCKL has filed the counter reply. Thereafter IREDA has filed the rejoinder. Pleadings has been completed. The matter is now listed for final hearing. The next date is not yet notified.

25. During the previous year ended on 31.03.2022, the company liquidated its Investment in the Associate Company - MP Windfarms Limited, to M/s I-Bahn Retail Services Pvt. Ltd. for a consideration of '' 24.00 Lakhs. Accordingly, the transfer/sale ofthe entire 168,000 Equity Shares of Face Value of '' 10/- each (including

48.000 Equity Shares of'' 10/- each allotted as Bonus Shares) held by IREDA was transferred on 26.03.2022.

26. The property tax demand raised up to 31.03.2023 in respect of all the residential and office premises have been paid. The property tax in respect of office building at India Habitat Centre has been paid as per the demand of India Habitat Centre, which was based on unit area method. South Delhi Municipal Corporation (SDMC) has raised an issue with India Habitat Centre to include license fee received for the facilities area for the purpose of calculating ratable value for the period 1994-2004. This matter was pending with the Hon’ble Delhi High Court as on 31.03.2023. However , subsequently the issue was settled between SDMC and IHC and petitions were withdrawn by both the Parties. Vide order dated 11th April 2023 of Hon’ble High Court , no further liability has arisen.

27. In terms of Section 135 of The Companies Act, 2013, IREDA is required to constitute a corporate social responsibility (CSR) Committee of the Board of Directors and the Company has to spend 2% of the average net profits of the company’s three immediately preceding financial years calculated as per section 198 of the Companies Act 2013. In accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 notified w.e.f. 22.01.2021, any unspent amount pursuant to any ongoing project shall be transferred to unspent CSR Account in any scheduled bank within a period of thirty days from the end of the financial year, to be utilized within a period of three financial years from the date of such transfer. Any unspent CSR amount, other than for any ongoing project, shall be transferred to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year. Further, if the Company spends an amount in excess of the requirement under statute, the excess amount may be carried forward and set off in three succeeding financial years against the amount to be spent.

As the notification was made effective during FY 2020-21, the Company complied with the amended provisions of Section 135 of the Companies Act, 2013 with effect from the FY 2020-21. Accordingly, the unspent CSR amount as at 31.03.2020 would continue to be dealt with in accordance with the pre-amendment framework.

b. For FY 2022-23, the Board had approved CSR budget of '' 1,057.73 (FY21-22''685.34 Lakhs) based on 2% of

the average standalone Profit (before tax) as per Companies Act, 2013. The projects sanctioned in a year may be completed in subsequent years based on milestone linked payment to various stages of completion of the project. Further, as per the DPE guidelines, the CSR Budget is non-lapsable, and any unspent amount is carried forward to the next year for utilization for the purpose for which it was allocated.

During the year ended, an aggregate amount of '' 697.44 Lakhs (previous year: '' 950.60 Lakhs) has been spent in cash on CSR projects based on the progress of the projects. Out ofthe funds released during the year, an amount of '' 448.43 Lakhs relates to the projects expenditure in the financial year 2022-23 and balance of '' 249.01 Lakhs relates to the projects expenditure of the earlier years (previous year: an aggregate amount of '' 950.60 Lakhs was spent, of which '' 872.93 Lakhs was pertaining to the expenditure on projects expenditure of FY 2021-22 and balance of '' 77.67 Lakhs relates to the projects expenditure of the earlier years).

d. There were no related party transactions by the Company in relation to CSR expenditure in the current year or previous year.

30. Additional Information

a) Expenditure in Foreign Currency:

• On Travelling ''15.34 Lakhs (previous year: '' Nil)

• Interest & Commitment expenses: '' 18,944.31 Lakhs (previous year: ''9,119.43 Lakhs).

b) Earnings in Foreign Exchange:

• Interest: '' Nil Lakhs (previous year: '' 1.81 Lakhs)

c) During the year, M/s KFW paid ''48.29 Lakhs (previous year: ''203.98 Lakhs) (including ''43.38 Lakhs directly to consultants hired under TA Programme under Direct Disbursement Procedures and '' 4.91 Lakhs directly to IREDA towards taxes) against Technical Assistance Programme (TAP) of EURO

0.60 Million sanctioned to IREDA in respect of KFW IV lines of credit for “Technical Assistance for Solar PV Project Pipeline in India” etc.

d) During the year, M/s KFW paid ''116.15 ''NilLakhs (previous year: ''173.93 Lakhs) (including ''104.34 Lakhs directly to consultants hired under TA Programme under Direct Disbursement Procedures and ''11.81 Lakhs directly to IREDA towards taxes) against TAP of EURO 1 million sanctioned to IREDA in respect of KFW VI line of credit for expert services for capacity building measures and costs for related goods and services for IREDA.

e) The World Bank has sanctioned a Clean Technology Fund (CTF) Grant of USD 2 Million to assist in financing of the Shared Infrastructure for Solar Parks Project under IBRD III Line of credit. During the year, World Bank released ''174.55 Lakhs including ''49.96 Lakhs towards revenue expenses and '' 124.59 Lakhs towards capital expenses (previous year: '' 246.92 Lakhs) to IREDA under the CTF Grant.

31. MNRE / UNDP - IREDA SCHEME FUNDS

The Company besides its own activities implements Programme on behalf of Ministry for New and Renewable Energy on the basis of Memorandum of Understanding entered into with the said Ministry. In terms of stipulations of each of the MoUs, MNRE has placed an agreed sum in respect of each Programme with the company for Programme implementation. Interest on MNRE funds is accounted as and when received. As the income generated by the MNRE Programme loans is not the income of the company and also the loan assets belong to MNRE, the same is not considered for asset classification and provisioning purposes. On closure of the respective Programme, the company is required to transfer the amount standing to the credit of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the service charges, irrecoverable defaults, and other dues as stipulated in the MoU.

a) Generation Based Incentives (GBI) / Capital Subsidy Scheme etc.: IREDA is the Program Administrator on behalf of Ministry of New & Renewable Energy (MNRE) for implementation of Generation Based Incentive Scheme and Capital Subsidy for Wind and Solar Power Projects registered under the Scheme. Under these schemes, fund is provided by MNRE to IREDA for the purpose of disbursement of the same towards energy generation to the GBI claimants i.e., the Project Developers/ DISCOM as per the scheme. Therefore, essentially, the activity is receipt and utilization of funds. For release of GBI fund by MNRE, IREDA is required to submit the Utilization Certificate along with Audited Statement of Expenditure duly certified by a Chartered Accountant, for the previous tranche of fund released by MNRE. The said requirement is fully complied with by IREDA, and nothing further has been required by MNRE so far. The statutory auditors have not audited the accounts of Scheme.

The amount due to MNRE on account of the above at the close of the year, along with interest on unutilized funds kept in separate bank accounts with Nationalized Banks as savings banks / short-term deposits etc. shown as Bank balances other than included in Cash and Cash Equivalents (Refer Note 3) and the corresponding liability is shown under the head Other Financial Liabilities (Refer Note 22) in the Balance Sheet.

b) GEF -MNRE -United Nations Industrial Development Organization (UNIDO) Project: Ministry of New and Renewable Energy and UNIDO have jointly implemented a GEF-5 funded project on using biogas/bio-methane technology for waste to energy conversion, targeting innovations and sustainable energy generation from industrial organic wastes. Under the said project UNIDO will provide funds for subsidizing the interest rate by 5% for the project developers and IREDA is the fund handler. During the year no claims have been made to UNIDO, however funds amounting to ''255.14 Lakhs has been received

by IREDA towards the 1^st tranche of USD 3,40,000, along with GST of ''45.92 Lakhs (claimed on 01.02.2022). The requisite fund liability (including accrued interest) is disclosed under Note 22-Other financial liabilities.

32. MNRE GOI FULLY SERVICED BONDS

In terms of O.M. No. F.15 (4)-B (CDN)/2015 dated 03.10.16 issued by Department of Economic Affairs, Ministry of Finance, Government of India, IREDA had been asked to raise an amount of '' 400,000 Lakhs through GOI fully serviced bonds for utilization of the proceeds by them for MNRE Schemes / Programs relating to Grid Interactive Renewable Power, off-Grid/Distributed & Decentralized Renewable Power and Investment in Corporations & Autonomous Bodies. A MoU between MNRE and IREDA has also been signed on 25.01.17 defining the role and responsibilities of both. Para No I of General Clauses at page 5 of the MoU specifically defines that the borrowings of MNRE bonds shall not be considered as assets/liability for any financial calculation by the Company. This implies that the amount raised by way of MNRE bonds while shall be reflected in the borrowing as well as assets however, there will be no impact of the same on IREDA s borrowings/ Assets or Income / Expenses.

IREDA had raised '' 164,000.00 Lakhs GOI Fully Serviced Bonds on behalf of MNRE during the year 2016-17 and the same has been shown under Note No. 24 - Other Non-Financial liabilities. Against this an amount of '' 163,879.20 Lakhs has been disbursed up to 31.03.2023 (previous year: ''163,879.20 Lakhs) as per the instructions of the MNRE for various plans/schemes. The said amount has been shown under Note No. 17 -Other Non-Financial Assets - as amount recoverable from MNRE. The amount was kept in MIBOR Linked deposit on which the accrued interest of ''1,160.42 Lakhs as on 31.03.2023 (previous year: '' 1,117.48 Lakhs) has been shown under Note No. 24 - Other Non-Financial liabilities. The balance cumulative amount (inclusive of interest accrued / earned) as on 31.03.2023 is ''928.69 Lakhs (previous year: ''885.75 Lakhs) which is kept in MIBOR Linked Term Deposit and remaining in Current Account amounting to ''352.53 Lakhs as on 31.03.2023 (previous year: ''352.53 Lakhs) which are shown under Note No. 3 - Other Bank Balances in respective sub heads.

During the year ended 31.03.2023, interest on the GOI fully Serviced Bond of ''12,434.70 Lakhs (previous year: ''12,434.70 Lakhs) became due for payment to the investors and the same has been received from GOI and paid to the investor.

33. SUBSIDY / INCENTIVE RECEIVED FROM MNRE AND HANDLED ON THEIR BEHALF

A. Interest Subsidy

As per the Government policy, MNRE is providing interest subsidy. The interest subsidy is released to borrowers implementing MNRE programmes of Co-generation, Small Hydro, Briquetting, Biomass, Solar Thermal and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is passed on to the borrowers on quarterly basis subject to complying with the terms and conditions of the sanction by these borrowers.

B. Capital subsidy

During the year, an amount of ''3,594.77 Lakhs (previous year: ''3,871.38) was received from MNRE towards Capital Subsidy. Out of the total capital subsidy amount available, ''3,594.77 Lakhs (as on 31.03.2022: ''3,871.38) was passed on to the borrowers on compliance of the terms and conditions of the capital subsidy scheme.

34. Debenture Redemption Reserve

In terms of Rule 18 (7) (b) (ii) of The Companies Act 2013, the company is required to create a Debenture Redemption Reserve (DRR) upto 25% of the bonds issued through public issue. The Company has made a provision for DRR, so as to achieve the required amount over the respective tenure of the Tax-Free Bonds. Accordingly, a sum of ''4,629.11 Lakhs has been provided for the year ended 31.03.2023 (previous year: '' 4,629.11 Lakhs).

35. NBFC Reserve

In terms of RBI circular no. DNBR (PD)CC.No.092/03.10.001/2017-18 dated May 31, 2018, IREDA is required to create NBFC reserve under Section 45-IC of RBI Act, 1934 @ 20% of post-tax profit. Accordingly, for the year ended 31.03.2023, an amount of ''17,300 Lakhs has been appropriated (previous year: ''12,700 Lakhs) towards NBFC reserve.

This section explains the judgement and estimates made in determining the fair values of 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 financial statements. To provide an indication about reliability of the inputs used in determining fair value the company has classified its financial instruments into three levels prescribed under accounting standard. An explanation on each level follows underneath the table.

c) Considering the materiality, we have ignored discounting of employee loan and security deposits.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as on the reporting date. The mutual funds are valued using the closing NAV

Level 2: Financial instruments that are not traded in active market (for example, traded bonds,) is determined using other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Technique which use inputs that have a significant effect on the recorded fair value that are not based on observable market data like unlisted equity securities.

MTM calculation is based upon the valuation provided by the registered independent valuer as defined under rule 2 of Companies (Registered Valuers and valuation) Rules, 2017, for outstanding derivative instrument at reporting date.

Fair value measurements using significant unobservable inputs (level 3)

Pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

IV. Valuation Processes

For valuation of MTM value of hedge deal, IREDA has obtained valuation from a registered independent expert valuer, who has provided such valuation after considering movement in market position, movement in exchange rate, interest rate etc.

The carrying amount of the trade receivables, trade payables, cash and cash equivalents, other bank balance, other financial assets and liabilities are considered to be same as their fair values, due to their short-term nature.

The fair values for borrowings, loans to companies, debt securities are calculated based on cash flows discounted using current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

37. Financial risk management

Risk is managed through a risk management framework, identification measurement and monitoring subject to risk limits and other controls. The Board of Directors is responsible for overall risk management approach and for approving the risk management strategies and principles.

The risk committee has the responsibility for the development of risk strategy and implementing principles, framework, policies and limits. The risk committee is responsible for managing risk decisions and monitoring risk level and report to the Board. The company’s finance & treasury is responsible for managing its assets and liability and overall financial structure. The Company also has ALCO in place and Board approved ALM policy for managing liquidity, funding, reviewing asset liability mismatch and setting up various risk tolerance limits. The finance & treasury is responsible for the funding and liquidity management of the company

---

Mar 31, 2009

A) Capital Commitment

Estimated value of contract to be executed on Capital Account and not provided for Rs. 21,70,000 (Previous year: Rs. Nil)

b) Contingent Liabilities not provided for:-

Income tax demand for Assessment Years 2003-04,2004-05,2005-06 and 2006-07 aggregating to Rs. 40.70 Crores (Previous year: Rs. 23.59 crores) is outstanding. The company has filed appeals against the orders of the Income Tax Department for the respective assessment years and based upon the decision of the Honble ITAT on similar issues for assessment years 1998-99 to 2002-03 and on opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India on provision for disputed income tax/interest demands raised by Income Tax Authorities in respect

(2) MNRE Programme Funds

a) The Company besides its own activities implements Programmes on behalf of Ministry for New & Renewable Energy on the basis of Memorandum of Understanding entered into with the said Ministry. In terms of stipulations of each of the Molls, MNRE has placed an agreed sum in respect of each Programme with the company for programme implementation. Interest on MNRE loans are accounted on due basis. As the income generated by the MNRE programme loans is not the income of the company and also the loan assets belong to MNRE, the same is not considered for asset classification and provisioning purposes. On closure of the respective Programmes, the company is required to transfer the amount standing to the credit of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the Service charges, irrecoverable defaults and other dues as stipulated in the MoU. The amount due to MNRE on account of the above at the close of year, along with interest on unutilized funds kept in separate bank account with Nationalized Banks as short-term deposits, is shown under the head Current Liabilities in the Balance Sheet.

b) MNRE has created a Revolving Fund out of UNDP GEF sources with an initial contribution of US $ 1.40 million for the development of Small Hydro Project in Hilly Areas. The initial contribution to the company has been treated as a capital grant and interest accrued is credited to the said fund.

(3) Subsidy

(a) Interest Subsidy

As per the Government policy, MNRE is providing interest subsidy. The interest subsidy is released to programmes like Co-generation, Small Hydro, Briquetting, Biomass and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is to be passed on to the borrowers on quarterly basis subject to the borrowers complying with the terms and conditions of the sanction.

The undisbursed interest subsidy as on 1-4-2008 was Rs. 28,91,65,275 (Previous year: Rs.29,44,62,294) and the company received during the year Rs. 9,64,65,050 (Previous year: Rs. 22,12,88,536). Out of this, a sum of Rs.23,74,76,598 (Previous year: Rs.23,34,28,919) has been passed on during the year to the borrowers on compliance of the terms and conditions of the interest subsidy scheme. Further, during the year a sum of Rs. 1,13,97,530 (Previous year: Rs. Nil) has been refunded to MNRE on account of loan recalled/pre-closed by the borrowers. The total undisbursed interest subsidy as on 31 -3-2009 stands at Rs. 14,14,90,088 (Previous year: Rs.28,91,65,275).

The programme-wise details of interest subsidy received, passed, refunded during the year and the balance as on 31st March, 2009 are as under:-

(4) Bank Balances under the head "Current Assets, Loan & Advances" include a sum of Rs. 61,77,100 (Previous year : Rs.63,36,903) In Current Account with Scheduled Banks on account of unutilized funds received from UNDP/MNRE for implementation of "Green House Gases Emission". The equivalent amount is shown under the head Current Liabilities.

(5) (a) Conveyance deeds in respect of leasehold buildings ¦ a residential flat costing Rs.41,43,149 (Previous year

Rs.41,43,149) and office premises costing Rs.2,64,10,058 (Previous year Rs.2,64,10,058) are yet to be executed in favour of the Company. The cost includes proportionate value of land which has not been separately determined and accounted for. As such, depreciation has been charged on composite cost at the rates prescribed as per Schedule XIV to the Companies Act, 1956.

(b) The property tax in respect of office premises for the period upto 31st March, 2004 has been paid as per the demand raised by India Habitat Centre which was based on cost of the building. Municipal Corporation of Delhi has raised an issue with India Habitat Centre to include license fee received from the facilities area for the purpose of calculating rateable value.

This matter is now pending with the Honble Delhi High Court. In case the Honble Delhi High Court decides against the company, the liability on account of municipal tax will have to be reworked which is not ascertainable at this stage.

(6) The scales of pay of Executives (including Board level appointees)/Non-unionized Supervisors and Non-executives of the company are due for revision w.e.f. 1st January, 2007 and 1 st August, 2007 respectively. The Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India vide Office Memorandums No.2(70)/08-DPE(WC)-GL- XVI/08 dated 26" November, 2008, No.2(70)/08-DPE(WC)-GL-IV/09 dated 9th February, 2009 and No. 2(70)/08-DPE (WC)-GL- VII/09 dated 2nd April, 2009 has conveyed revision of scales of pay and allowances in respect of Board level and below Board level executives and Non-unionised Supervisors w.e.f. 1.1.2007. The Department of Public Enterprises has also issued I guidelines vide Office Memorandum No. 2(7)/2006-DPE(WC)-GL-XIV dated 9* November, 2006 for holding 7th Round of Wage Negotiations with unionized workers. In terms of the above referred Office Memorandums issued by the Department of Public Enterprises, provision of Rs.285 lakhs (Previous Year: Rs.63 Lakhs) has been made in respect of Board level and below Board level Executives, Non-unionized Supervisors and Non-executives w.e.f. 1st January, 2007 on account of pay revision arrears. A further provision for Performance Incentive of Rs. 122 lakhs (Previous year: Rs. 84 lakhs) has been made in terms the said office memorandum of Department of Public Enterprises.

(7) While making provision for Non Performing Assets, the value of security and provision for doubtful cases has been derived from the balance sheet of the borrower(s) by applying the depreciation as per rates prescribed under Schedule XIV of the Companies Act, 1956. However, the balance sheet of the borrowers) if older than 5 years from the financial year for which the shortfall is worked out, the same is ignored.

(8) IREDA is a Non Banking Financial Company registered with Reserve Bank of India and follows the guidelines in case of income recognition, asset classification and provisioning as approved by Board of Directors of IREDA in terms of Articles of Association and complies with the disclosure requirements as per RBI guidelines pertaining to Financial Institutions and other requirements as per NBFCs, as amended from time to time. Accordingly, the unrealized interest amounting to Rs. 97,91,18,836/- (Previous year: Rs.118,58,35,976) on accounts classified as Non-Performing Asset (NPAs) has not been recognized as income for the year. Further, a sum of Rs. NIL/- (Previous year: Rs.2,02,19,151) being the amount of unrealized interest upto 2007-08 has been reversed in respect of those accounts which have been classified as NPAfor the first time during the year. An amount of Rs. 27,95,99,951/- (Previous year: Rs.28,11,85,342) has been recognized as income being interest realized during the year from NPAaccounts.

(9) The company has created Exchange Risk Administration Fund (IREDA - ERAF) for management of foreign exchange risk on international lines of credit which is approved by Central Board of Direct Taxes vide notification No. 11220. The company has made a provision for an amount of Rs. 87,849,100/- (Previous year Nil) equivalent to liability of International Development Agency (IDA) credit Second Renewable Energy Project on Rupee basis. Books of account of ERAF are prepared and maintained separately.

(10) All the operations of the company are considered as a single business segment. Further, the company does not have any full- fledged branch. As such all the activities are considered as a single business/geographical segment for the purpose of Accounting Standard (AS) -17 on Segment Reporting issued under the Companies (Accounting Standards) Rules, 2006.

(11) The company had made an investment in 1,68,000 equity shares of Rs. 10 each, including 48,000 equity shares allotted as bonus shares in M/s M.P. Wind Farms Ltd., a joint sector company promoted by M/s Consolidated Energy Consultants Ltd., M/s I M.P.Urja Vikas Nigam Ltd. and Indian Renewable Energy Development Agency Ltd. The face value of equity shares invested was Rs.12.00 lakhs. The company had subsequently sanctioned two loans to M/s M.P.Wind Farms Ltd., for their wind projects which were classified as Non Performing Assets (NPA) since 2000-01 and 100% provision was made against the said investment in the year 2004-05 in terms of RBI Circular No.:REF.DBS.FID.No.C-5/01.02.00/2004-05 dated 9* August 2004 applicable to financial institutions and the investment was written off in the books of account during the financial year 2004-05 after retaining a nominal value of Rs.1.

During the year 2008-09, M/s M. P. Wind Farms Ltd has repaid the dues as per the One Time Settlement and the loan account has been closed. Therefore the investment has been reinstated in the books to the original value of Rs. 12 Lakhs. The difference of Rs.11,99,999 has been credited to Investment Written Back.

(12) Employee Benefits

(i) The summarized position of Post-employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard 15 (Revised) are as under:-

(13) Change in Accounting Policy

During the year ended 31st March, 2009, the company has changed the accounting policy with regard to income recognition, asset classification and provisioning with respect to loans and advances in terms of Article No: 84(26) of Articles of Association of the company.

(i) Interest amounting to Rs. 2.81 Crores has been accounted for as income in the statement of profit and loss account. Had the accounting policy not been changed, the said amount of interest would not be recognized as income.

(ii) The impact of the change in policy has resulted in reduction of provision for NPAs during the year by Rs. 17.30 Crores. However, the company has decided not to reverse such excess provision and to retain the same in its books of account as a prudent measure. Thereby the aforesaid change in the policy has no impact on the Profit & Loss Account for the year ended 31 st March, 2009.

(15) Impairment of Assets

The company has assessed on the Balance Sheet date that whether there are any indication (listed in the paragraph 8 to 10 of the Accounting Standards-28) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, final estimate of the recoverable amount has not been made. Accordingly, no impairment loss has been provided for in the Books of Account.

(16) Deferred Taxes

a) In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued under the Companies (Accounting Standards) Rules, 2006, the company has taken debit in the Profit & Loss Account towards deferred tax asset (net) on account of timing differences. After giving due consideration, deferred tax assets/liabilities are measured using the applicable current rates of Income Tax. In accordance with the provisions of AS-22, the current year deferred tax debit of Rs. 438.97 lakhs (Previous year: credit Rs. 643.60 lakhs) has been debited to the profit and loss account.

b) The details of deferred tax assets (net) as on 31st March, 2009 is given below:-

(17) Loan to constituents of IREDA include a sum of Rs. NIL (Previous year: Rs.43,78,59,375) in respect of which the execution of final security documents are in the process of being completed by the constituents and has been treated as unsecured.

(18) Bonds have been issued in demat form as per the requests received from bondholders.

(19) The amount payable to enterprises falling under The Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous year: Rs. Nil). Accordingly, no disclosure is being made as required by the said Act.

(20) The Current Asset, Loans & Advances of the company have a value on their realization in the ordinary course of the business equivalent to the amount stated in the Balance Sheet.

(21) (i) For the assessment year 2004-05, income tax demand of Rs.1034 lakhs was raised out of which 50% was paid during 2006-07. No provision has been made in respect of the aforesaid amount as the Company had filed an appeal to the CIT(A) against the order of the Assessing Officer. The CIT(A) has granted partial relief. Further, the company has filed an appeal with ITAT against the order of CIT(A) which is pending.

(ii) For the assessment year 2005-06, income tax demand of Rs. 1444 lakhs was raised out of which Rs.783 lakhs was paid during 2007-08. No provision has been made in respect of the aforesaid amount as the Company had filed an appeal to the CIT(A) against the order of the Assessing Officer.

(iii) Interest tax assessment have been completed upto the assessment year 2001-02. In respect of tax recoverable amounting to Rs.22.11 lakhs (Previous year: Rs.22.11 lakhs) from the assessment years 1996-97 to 2000-01, the company is taking the necessary steps for its recovery.

(22) Information pursuant to the provisions of Part-II of Schedule VI of the Companies Act, 1956:

a) Expenditure in Foreign Currency:

- On Traveling Rs. 2,29,697 (Previous year: Rs.90,868)

- OthersRs.31,77,84,159(Previousyear: Rs.34,22,30,119)

b) Earnings in Foreign Exchange:

- Interest Rs. 35,20,72,189 (Previous year: Rs.37,04,00,399)

c) Revenue Grant Rs. 1,08,71,354 (Previous year: Rs. 4,96,99,565) (GEF)

(23) The disclosure under RBI Guidelines are as under (IREDA only):- (i) On CRAR, NPAs, Exposure, Liquidity etc.

(24) Disclosure on risk exposure in derivatives

In terms of RBI Circular No. RBI/2004-05/436/DBOD. No. FID.FIC-l/01.02.00/2004-05 dated 26-4-2005, the qualitative and quantitative disclosures in respect of risk exposure are as under:-

A) Qualitative Disclosure:-

(i) The company recognized various market risks including interest rate, foreign exchange fluctuation and other assets liability mismatches;

(ii) In order to protect the company from foreign exchange fluctuation risk, the company has entered into long term agreements with nationalized banks with adequate flexibility which enable the company to re-negotiate the term to get advantage of the interest rate regime.

(iii) The company has also established Exchange Risk Administration Fund (ERAF) to protect itself against the exchange risk arising out of INR borrowings repayable in US$ terms.

(iv) The company is taking active action for protection against interest rate risk by adopting hedging instrument on case to case basis. In this regard, during the financial year 2004-05, an interest rate swap has been finalized with Standard Chartered Bank for KfW loan. As per the swap, the company hedged variable interest rate receivable by fixed interest rate receivable against fixed interest rate liability.

(25) Figures are rounded off to the nearest rupee. Previous years figures have been re-arranged/re-grouped wherever considered necessary to make them comparable with the current years figures.

(26) Schedule A to P form an integral part of Balance Sheet and Profit & Loss Account and have been duly authenticated.

---

Mar 31, 2007

(1) As per Accounting Standard (AS) - 29 on Provisions, Contingent Liabilities and Contingent Assets issued by The Institute of Chartered Accountants of India, the details of Provisions, Contingent Liabilities as on 31st March, 2007 are disclosed as under:-

(2) MNRE Programme Funds :

(a) The Company besides its own activities implements Programmes on behalf of Ministry of New and Renewable Energy on the basis of Memorandum of Understanding entered into with them. In terms of stipulations of each of the Molls, MNRE has placed an agreed sum in respect of each Programme with IREDA for programme implementation. Interest on MNRE loans are accounted on due basis and interest on MNRE term deposits on cash basis. As the income generated by the MNRE programme loans are not the income of IREDA and also the loan assets belongs to MNRE, the same are not considered for asset classification and provisioning purposes. On closure of the respective Programmes, IREDA is required to transfer the amount standing to the credit of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the Service charges, irrecoverable defaults and other dues as stipulated in the MoLI. The amount due to MNRE on account of the above at the close of year/along with interest on unutilized funds kept in separate bank account with Nationalized Banks as short-term deposits, is shown under the head Current Liabilities in the Balance Sheet.

(b) MNRE has created a Revolving Fund out of UNDP - GEF sources with an initial contribution of US $ 1.40 million for the development of Small Hydro Project in Hilly Areas. The initial contribution to IREDA has been treated as a capital grant and interest accrued is credited to the said fund.

(3) Subsidy

(a) Interest Subsidy

As per the Government policy, MNRE is providing interest subsidy. The interest subsidy is released to programmes like Co- generation, Small Hydro, Briquetting, Biomass and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is to be passed on to the borrowers on quarterly basis subject to the borrowers complying with the terms and conditions of the sanction.

The undisbursed interest subsidy as on 1-4-2006 was Rs. 27,40,42,982 (Previous year Rs. 28,95,98,496) and IREDA received during the year Rs. 26,73,64,943 (Previous year Rs. 18,01,02,586). Out of this, a sum of Rs. 24,69,01,631 (Previous year Rs. 15,93,08,738) has been passed on during the year to the borrowers on compliance of the terms and conditions of the interest subsidy scheme. Further, during the year a sum of Rs. 44,000 (Previous year - Rs. 3,63,49,362) has been refunded to MNRE on account of loan recalled/pre- closed by the borrowers. The total undisbursed interest subsidy as on 31-3-2007 stands at Rs. 29,44,62,294 (Previous year - Rs. 27,40,42,982).

(4) Upto financial year 2005-06, the expenditure on account of performance incentive has been worked out based on the actual working results for the particular financial year after the accounts are adopted by the shareholders and the same is paid in the next financial year. However, for the financial year 2006-07, the incentive has been worked out based on the provisional accounts and provision has been made accordingly for a sum of Rs. 22 lakhs. This has resulted in booking of expenditure of Rs. 17.17 lakhs for the year 2005- 06 under the head Prior Period Item.

(5) While making provision for Non Performing Assets, the value of security and provision for doubtful cases has been derived from the balance sheet of the borrower(s) by applying the depreciation as per rates prescribed under Schedule XIV of the Companies Act, 1956. However, the balance sheet of the borrower(s) if older than 5 years from the financial year for which the shortfall is worked out, the same is ignored.

(6) During the year, IREDA has restructured 23 out of 25 Small Hydro Projects in the state of Andhra Pradesh which were adversely affected by drought during the three financial years viz; 2001-02 to 2003-04. The said restructuring envisage keeping aside the instalments of funded interest outstanding as on 01.04.2005 to be repaid after repayment of the main loan over the extended period of loan depending upon cash flow from the project. The said funded interest kept aside, will not carry any interest during the period 01.04.2005 till the repayment of the main loan. However, the funded interest shall carry interest from the date of repayment of the main loan and repayable in 4 years after repayment of main loan. Further, the rate of interest has been reduced from the current interest rate to 10% (fixed) after payment of premium, as approved by the Board.

All the 25 projects had paid the requisite premium but only 23 commissioned projects have been sanctioned the restructuring package on 27.03.2007. Two projects which were under implementation were not immediately sanctioned the said package due to examination of the implementation period based on which the repayment schedule shall be fixed and the package made effective.

In terms of the RBI Guidelines dated 28* March, 2001, the sacrifice in interest in respect of 9 standard assets from the current level i.e. 10%/14.68% to 0% measured in present value term has been provided. The said sacrifice in NPV terms works out to Rs.18.80 crores and the same has been earmarked out of the ad-hoc provision made in the earlier years.

(7) IREDA is following the prudential norms issued by the Reserve Bank of India to the term lending institutions for income recognition, asset classification and provisioning as amended by Ministry of New and Renewable Energy from time to time. Accordingly, the unrealized - interest amounting to Rs.129,75,08,243 (Previous year - Rs. 126,06,62,958) on accounts classified as Non-Performing Asset (NPA) has not been recognized as income for the year. Further, a sum of Rs. 13,57,78,806 (Previous year - Rs. 39,64,15,748) being the amount of unrealized interest upto 2005-06 has been reversed in respect of those accounts which have been classified as NPA for the first time during the year. An amount of Rs. 30,73,80,749 (Previous year - Rs. 8,22,51,879) has been recognized as income being interest realized during the year from NPA accounts.

(8) The company is exempted from the prudential norms applicable to Non-Banking Financial Companies (NBFCs) but is following the norms applicable to Financial Institutions (FIs) in respect of income recognition, assets classification, provisioning and other related matters as prescribed by the Ministry of New and Renewable Energy vide letter dated 5th March, 2002. Since, the company is carrying on the business of NBFC hence the disclosures required in terms of paragraph 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, in so far applicable to the company have been disclosed separately by way of an annexure.

(9) Upto the financial year 2005-06, depreciation on fixed assets including computer software was provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. Consequent to introduction of new Accounting Policy in the financial year 2006-07, Intangible assets are amortized over their estimated useful life but not exceeding 10 years. The impact of the above change in the accounting policy resulted in higher depreciation of Rs. 1,57,398 on computer software for the year.

(10) IREDA has created Exchange Risk Administration Fund (IREDA - ERAF) for management of foreign exchange risk on international lines of credit which is approved by Central Board of Direct Taxes vide notification No.11220. IREDA has made Nil provision (Previous year - Nil) equivalent to liability of IDA credit Second Renewable Energy Project on Rupee basis. Books of account of ERAF are prepared and maintained separately.

(11) All the operations of the company are considered as a single business segment. Further, the company does not have any full-fledged branch. As such all the activities, are considered as a single business/geographical segment for the purpose of Accounting Standard (AS) -17 on Segment Reporting issued by The Institute of Chartered Accountants of India.

(12) IREDA had made an investment in 1,68,000 equity shares of Rs. 10 each, including 48,000 equity shares allotted as bonus shares in M/s M.P. Wind Farms Ltd., a joint sector company promoted by M/s Consolidated Energy Consultants Ltd., M/s M.P.Urja Vikas Nigam Ltd. and Indian Renewable Energy Development Agency Ltd. The face value of equity shares invested was Rs. 12.00 lakhs. IREDA had subsequently sanctioned two loans to M/s M.P.Wind Farms Ltd., for their wind projects. The above loans have been classified as Non Performing Assets (NPA) in the books of IREDA since 2000-01. The loans were under doubtful category and 100% provision made. Further the company was sanctioned One Time Settlement (OTS) which has not been completed. In terms of RBI Circular No.:REF.DBS.FID.No.C-5/01.02.00/2004-05 dated 9th August 2004 applicable to financial institutions, 100% provision has been made in respect of non performing investments (NPI). As the working results of M/s. M.P.Wind Farms Ltd., was not satisfactory, the investment had been written off in the books of account during the financial year 2004-05. The investment is being disclosed in the books of account at a nominal value of Re.1.

(13) Impairment of Assets

Provision of impairment loss as required under Accounting Standard (AS) - 28 on Impairment of Assets is not necessary as in the opinion of management, there is no Impairment of Assets during the financial year.

(17) As on 31st March, 2007, the authorized as well as paid up share capital of IREDA stands at Rs. 400 crores. Ministry of New and Renewable Energy (MNRE) has approved increase in authorized share capital vide letter dated 16th March, 2007 from Rs. 400 crores to Rs. 1000 crores. The increase in the authorized share capital has to be approved by the shareholders. Pending completion of the formalities, MNRE has released Rs. 40 crores towards equity contribution to IREDA and the same has been shown as "Amount received towards Equity contribution pending allotment" in the books of account.

(14) Deferred Taxes

a) The deferred tax assets/liabilities have been accounted for in terms of the Accounting Standard -22 (AS-22) on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India (ICAI) since the year it became applicable to the company. In terms of the transitional provisions of AS-22, the accumulated deferred tax assets for the period prior to the adoption of this standard was credited to Genera! Reserve.

The company is availing tax rebate u/s 36(1 )(viii) of the Income Tax Act, 1961 by appropriating upto 40% of the taxable profit to Special Reserve A/c. Since the company does not see any possibility of withdrawing this Special Reserve in future, it had not created deferred tax liability on the Special Reserve by treating it as a permanent difference. On reconsideration, in compliance of the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India in terms of AS - 22, the company has accounted for the deferred tax liability on Special Reserve created u/s 36(1)(viii) of the Income Tax Act, 1961, during the year 2006-07 for the first time. In terms of the transitional provisions of the said standard, the deferred tax liability of Rs. 1454.57 lakhs on Special Reserve upto the financial year 2001-02 has been adjusted with General Reserve. The deferred tax liability of Rs. 2673.55 lakhs for the financial years from 2002-03 to 2005-06 has been charged to the Profit & Loss A/c under the head Deferred Tax - Earlier year and the liability for the financial year 2006-07 amounting to Rs.470.55 lakhs has been charged to the Profit & Loss Account.

(15) Loan to constituents include a sum of Rs. 47,75,02,000 (Previous year - Rs. 23,08,00,000) in respect of which the execution of final security documents are in the process of being completed by the constituents and has been treated as unsecured.

(16) Bonds have been issued in demat form as per the requests received from bondholders.

(17) Under sundry creditors, amount payable to small scale industries as on 31st March, 2007 is Nil (Previous year - Nil).

(18) The company is in the process of identifying the amount payable to enterprises falling under The Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, no disclosure is being made as required by the said Act.

(19) The Current Asset, Loans & Advances of IREDA have a value on their realization in the ordinary course of the business equivalent to the amount stated in the Balance Sheet.

(20) Legal and professional charges includes remuneration (excluding service tax) paid to Statutory Auditors of the Company as under-

For Statutory Audit Rs. 1,26,500 (Previous year - Rs. 1,26,500)

For Tax Audit Rs. Nil (Previous year - Rs. 50,600)

For Certification Rs. 95,500 (Previous year - Rs. 1,14,500)

(21) (i) For the assessment year 2004-05, income tax demand of Rs. 1034 lakhs has been raised out of which 50% has been paid during 2006-07 and for balance demand, stay has been granted upto 31.7.2007. No provision has been made in respect of the aforesaid amount as the Company has filed an appeal to the CIT(A) against the order of the Assessing Officer and is hopeful to get the desired relief in appeal,

(ii) Tax provision is not considered necessary in respect of income tax demand of Rs. 1594.73 lakhs in respect of Assessment year 2001-02 pending the disposal of Companys appeal filed against the said Order,

(iii) Interest tax assessment have been completed upto the assessment year 2001-02. In respect of tax recoverable amounting to Rs. 22.11 lakhs (Previous year - Rs. 22.11 lakhs) from the assessment years 1996-97 to 2000-01, the company is taking the necessary steps for its recovery.

(22) Information pursuant to the provisions of Part-ll of Schedule VI of the Companies Act, 1956:

a) Expenditure in Foreign Currency:

On Traveling Rs. 2,95,006 (Previous year - Rs. 4,54,923) Others Rs. 26,83,84,907 (Previous year - Rs. 21,22,75,659)

b) Earnings in Foreign Exchange:

Interest Rs. 28,53,07,383 (Previous year - Rs. 19,23,54,310)

c) Revenue Grant Rs. 4,47,81,976 (Previous year - Rs. 3,49,19,061) (GEF)

d) On forward rate agreements and interest rate swaps

The notional principal of swap agreements ? A swap agreement was entered with Bank of Baroda for foreign exchange risk management of Asian Development Bank (ADB) line of credit. As per the arrangement, the loan drawn from ADB will be kept in deposit with Bank of Baroda, London which earns interest at 6 monthly LIBOR. Against this deposit, INR loan is drawn from Bank of Baroda, New Delhi at PLR less 3.75% as modified in their revised terms.

* A similar swap agreement was entered with Canara Bank for foreign exchange risk management of KfW line of credit. As per the arrangement, the loan drawn from KfW will be kept in Euro deposit with Canara Bank, London which earns interest at 6 monthly EURIBOR. Against this deposit INR loan is drawn from Canara Bank, New Delhi at PLR less 4.25%.

* Another similar swap arrangement was entered with Canara Bank for 1 foreign exchange risk management of IBRD-II line of credit for IBRD portion of US$2.25 million. As per arrangement, the loan drawn from IBRD will be kept in US$ deposit with Canara Bank, London which earns interest at 6 monthly LIBOR. Against the deposit, INR loan is drawn from Canara Bank, New Delhi at PLR less 4.25% p.a.

* Further, after negotiation, another similar swap arrangement was entered with Bank of Baroda for foreign exchange risk management for balance amount of US$ 77.75 million of IBRD-II line of credit for IBRD portion. As per the arrangement, the loan drawn from IBRD will be kept in $ deposit with Bank of Baroda, London which earns interest at 6 monthly LIBOR + 0.30% p.a. Against this deposit, INR loan will be drawn from Bank of Baroda, New Delhi at PLR less 3.75%.

* Nature and terms of the swaps including * Nature and terms of swap is indicated above, information on credit and market risk and the accounting policies adopted for recording the swaps ? All foreign currency liabilities and assets have been translated at exchange rate prevailing at the year end, which is disclosed in the accounting policy number 3.

* Quantification of the losses which would ? Not applicable be incurred if the counter parties failed to fulfil their obligations under the agreements

* Collateral required by the entity upon NIL entering into swaps

* Any concentration of credit risk arising from the Not applicable swaps. Examples of concentration could be exposures particular industries or swaps with highly geared companies

(24) Disclosure on risk exposure in derivatives

In terms of RBI Circular No. RBI/2004-05/436/DBOD. No. FID.FIC-l/01.02.00/2004-05 dated 26-4-2005, the qualitative and quantitative disclosures in respect of risk exposure are as under:-

A) Qualitative Disclosure:-

(i) IREDA recognized various market risks including interest rate, foreign exchange fluctuation and other assets liability mismatches;

(ii) In order to protect the company from foreign exchange fluctuation risk, the company has entered into long term agreements with nationalized banks with adequate flexibility which enable IREDA to re-negotiate the term to get advantage of the interest rate regime.

(iii) IREDA has also established Exchange Risk Administration Fund (ERAF) to protect itself against the exchange risk arising out of INR borrowings repayable in US$ terms.

(iv) IREDA is taking active action for protection against interest rate risk by adopting hedging instrument on case to case basis. In this regard, during the financial year 2004-05, an interest rate swap has been finalized with Standard Chartered Bank for KfW loan. As per the swap, IREDA hedged variable interest rate receivable by fixed interest rate receivable against fixed interest rate liability.

---

Mar 31, 2005

As per Accounting Standard 29, the details of Provisions, Contingent Liabilities as on 31st March, 2005 are disclosed as under:-

(1) MNES Programme Funds:

(a) The company besides its own activities implements Programmes on behalf of Ministry of Non-Conventional Energy Sources on the basis of Memorandum of Understanding entered into with them. In terms of stipulations of each of the MoUs, MNES has placed an agreed sum in respect of each Programme with IREDA for programme implementation. Interest on MNES loans are accounted on due basis and interest on MNES term deposits on cash basis. As the income generated by the MNES programme loans are not the income of IREDA and also the loan assets belongs to MNES, the same are not considered for asset classification and provisioning purposes. On closure of the respective Programmes, IREDA is required to transfer the amount standing to the credit of MNES (inclusive of interest accrued thereon) to them after deducting the Service charges, irrecoverable defaults and other dues as stipulated in the MoU. The amount due to MNES on account of the above at the close of year, along with interest on unutilised funds kept in separate bank account with Nationalised Banks as short-term deposits, is shown under Current Liabilities in the Balance Sheet.

(b) MNES has created a Revolving Fund out of UNDP - GEF sources with an initial contribution of US $ 1.40 millions for the development of Small Hydro Project in Hilly Areas. The initial contribution to IREDA has been treated as a capital grant and interest accrued credited to the fund.

(2) Subsidy

(a) Interest Subsidy

As per the Government policy, MNES is providing interest subsidy. The interest subsidy is released to programmes like Co-generation, Small Hydro, Briquetting, Biomass and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is to be passed on to the borrowers on quarterly basis subject to the borrowers complying with the terms and conditions of the sanction.

The undisbursed interest subsidy as on 1-4-2004 was Rs.36,66,47,673 (Previous year Rs. 42,29,63,135) and IREDA received during the year Rs. 17,93,93,070 (Previous year Rs.21,71,62,698). Out of this, a sum of Rs. 17,79,28,832 (Previous year Rs.20,73,51,177) has been passed on during the year to the borrowers on compliance of the terms and conditions of the interest subsidy scheme. Further, during the year a sum of Rs.7,85,44,392 (Previous year - Rs.6,61,26,983) has been refunded to MNES on account of loan recalled/preclosed by the borrowers. The total undisbursed interest subsidy as on 31-3-2005 stands at Rs.28,95,98,496 (Previous year - Rs. 36,66,47,673).

During the year, the proportionate interest subsidy (difference between gross subsidy and upfront subsidy) to the tune of Rs. Nil (Previous year - Rs.2,68,39,589) has not been passed on to the borrowers due to non compliance of the terms and conditions of the interest subsidy sanction.

(b) Capital subsidy

The un-disbursed capital subsidy as on 1.4.2004 was Rs. 2,68,60,377 (Previous year - Rs. 2,13,57,244) pending due to non-compliance of the terms and conditions of the capital subsidy scheme by the borrower. During the year an amount of Rs.40,85,000 (Previous year - Rs.1,19,34,491) was received from MNES. Out of the total capital subsidy amount available Nil (Previous year - Rs.65,08,727) was disbursed to the borrowers on compliance of the terms and conditions of the capital subsidy scheme. The sector-wise details of capital subsidy at the beginning, received during the year, passed/refunded during the year and the balance as on 31-3-2005 are as under:

(3) Current Assets include a sum of Rs.60,91,097 (Previous year - Rs.2,85,93,270) in Current Account with Scheduled Banks on account of unutilised funds received from UNDP/MNES for implementation of "Green House Gases Emission". The equivalent amount is shown under Current Liabilities.

(4) Conveyance deeds in respect of leasehold buildings - a residential flat costing Rs.41,43,149 (Previous year - Rs.41,43,149) and office premises costing Rs.2,64,10,058 (Previous year - Rs.2,64,10,058) are yet to be executed in favour of the Company. The cost includes proportionate value for land which has not been separately determined and accounted for. As such, depreciation has been charged on composite cost at the rates prescribed as per Schedule XIV of the Companies Act, 1956.

(5) Office Equipment includes Rs. 10,959 (Previous Year Rs. 12,730) being the written down value of the cost of items issued to the Honble Ex-Minister of State for Non-Conventional Energy Sources, which is yet to be received back.

(6) During the year 2003-04, 22 small hydro projects located in the state of Andhra Pradesh which could not generate power due to drought were rescheduled and treated as standard assets in terms of relaxation in prudential norms granted by MNES vide letter No. 1/31/2000-IREDA dated 26th October, 2004. During the year 2004-05, these 22 small hydro projects have been treated as standard assets, as per the prudential norms.

(7) The company has changed its accounting policies with reference to prior period income, prior period expenses and prepaid expenses with effect from 1st April, 2004. Consequent to such changes, the additional income/expenditure booked in the natural head of account on account of prior period income, prior period expenses and prepaid expenses are Rs.3,396, Rs.43,938 and Rs.646 respectively.

(8) (i) While making provisions for Non Performing Assets, the value of security and provision for doubtful cases has been derived from the balance sheet of the borrower(s) by applying the depreciation as per rates prescribed under schedule XIV of the Companies Act, 1956. However, the balance sheet of the borrower(s) if older than 5 years from the financial year for which the shortfall is worked out, the same is ignored.

(ii) In terms of Notification No. DBS.FID.No. C-8/01.02.00/2004-05 dated 1st November, 2004, an asset has been classified as doubtful, if it remained in the sub standard category for 12 months and in terms of Notification No. DBS.FID.No. C-3/01.02.00/2004-05 dated 3rd August, 2004, in respect of advances classified as doubtful for more than three years, the provisioning requirement is 100%, ignoring the value of securities.

(9) IREDA is following the prudential norms issued by the Reserve Bank of India to the term lending institutions for income recognition, asset classification and provisioning as amended by Ministry of Non Conventional Energy Sources from time to time. Accordingly, the unrealised interest amounting to Rs.94,58,48,181 (Previous year - Rs. 101,78,34,913) on accounts classified as Non-Performing Asset (NPA) has not been recognised as income for the year. A sum of Rs. Nil (Previous year - Rs. 1,19,35,068) being the amount of unrealised interest pertaining to 2003-04 has been reversed in respect of those accounts which have been classified as NPA for the first time during the year. Similarly, interest realised during the year pertaining to earlier years amounting to Rs. 10,47,38,789 (Previous year - Rs. 9,47,71,600) has been recognised as income.

(10) IREDA has created Exchange Risk Administration Fund (IREDA - ERAF) for management of foreign exchange risk on international lines of credit which is approved by Central Board of Direct Taxes vide notification No. 11220. IREDA has made Nil provision (Previous year - Nil) equivalent to liability of IDA credit Second Renewable Energy Project on Rupee basis. Books of Accounts of ERAF are prepared and maintained separately.

(11) All the operations of the company are considered as a single business segment. Further, the company does not have any fulfledged branch. As such all the activities are considered as a single business/geographical segment for the purpose of AS-17 of The Institute of Chartered Accountants of India.

(12) Deferred Taxes

A) In accordance with the provisions of AS-22, the current year deferred tax credit of Rs.2150.48 lakhs (Previous year Rs. 1080.10 lakhs) has been credited to the profit and loss account.

B) The details of deferred tax assets (net) as on 31st March, 2005 is given below:-

A Deferred Tax Assets

(Rs. in lakhs) Arising on account of timing As at 31/3/2004 As at 31/3/2005 differences:-

* Provision for Leave Salary 9.23 9.55

* Provision for doubtful debts and advances 4,025.51 6,166.43

Total-A 4,034.74 6,175.98

B Deferred Tax Liability

* Depreciation 53.51 43.80

* Other:- Deferred revenue expenditure 0.08 0.00

* Stamp duty paid but not debited to P&L A/c 17.43 17.98

Total - B 71.02 61.78

Deferred Tax Assets (A-B) 3,963.72 6,114.20

(13) Loan to constituents include a sum of Rs.6,16,52,400 (Previous year - Rs.9,10,87,400) in respect of which the execution of final security documents are in the process of being completed by the constituents and has been treated as unsecured.

(14) Bonds have been issued in demat form as per the requests received from bondholders.

(15) Under sundry creditors, amount payable to small scale industries as on 31st March, 2005 is Nil (Previous year - Nil).

(16) The Current Asset, Loans & Advances of IREDA have a value on their realisation in the ordinary course of the business equivalent to the amount stated in the Balance Sheet.

(17) The remuneration (excluding service tax) paid to Statutory Auditors of the Company is as under:

For Statutory Audit Rs.1,26,500 (Previous year - Rs.l,15,000)

For Tax Audit Rs.50,600 (Previous year - Rs.46,000)

For Certification Rs.1,02,000 (Previous year - Rs.81,500)

For Consultancy and opinion Nil (Previous year - Rs.30,000)

(18) Remuneration paid to the Director (Technical), Director (Finance) and Managing Director are as under:

(Amount in Rupees) Particulars Director (Technical)** Director (Finance)*

Salary & allowances 4,85,870 4,17,021

(4,44,753) (4,70,558)

Medical allowance 37,093 27,240

(34,776) (35,501)

Provident Fund 51,820 43,331

(49,008) (50,080)

Value of perquisite for residential accommodation 23,010 18,990

as per Income-tax Act (21,636) (23,701)

LTC 13,000 Nil

(Nil) (Nil)

Staff Car 15,360 11,188

(As per Income tax Rules) (15,300) (15,300)

Total: 6,26,153 5,17,770

(5,65,473) (5,95,140)

Previous year figures shown within bracket

* Also Officiated as Managing Director w.e.f. 1.8.2003 upto 28.12.2004

** Also Officiating as Managing Director w.e.f. 29.12.2004

(19) (i) Income tax assessment has been completed upto assessment year 2002-03 and all the additional liabilities based on the assessment/appeal have been provided. As the assessment under Section 143(3) is still pending for the assessment years 2003-04 and 2004-05, additional tax liability, if any, would be known only after the assessments are completed.

(ii) Interest tax assessment have been completed upto the assessment year 2001-02. In respect of tax recoverable amounting to Rs.26.08 lakhs from the assessment years 1993-94 to 2000-01, company is taking the necessary steps for its recovery.

(20) The guidelines issued by the Reserve Bank of India (RBI) on Asset and Liability Management (ALM) System are required to be implemented by all the Non-Banking Financial Companies (NBFCs). As required, Asset-Liability-Committee (ALCO) has been constituted and communicated to Reserve Bank of India. The financial as well as the ALM software is in position. However, the testing of ALM software is delayed due to the proposed closure of IDBI Intech Ltd. who has developed the ALM software. However, the reports viz; i) structural liquidity, (ii) dynamic liquidity, and (iii) interest rate sensitivity have been compiled in the excel sheet for the year ended 31st March, 2005.

(21) Disclosure on risk exposure in derivatives In terms of RBI Circular No. RBI/2004-05/436/DBOD. No. FID.FIC-I/01.02.00/2004-05 dated 26-4-2005, the qualitative and quantitative disclosures in respect of risk exposure are as under:-

A) Qualitative Disclosure:-

1. IREDA recognised various market risks including interest rate, foreign exchange fluctuation and other assets liability mismatches;

2. In order to protect the company from foreign exchange fluctuation risk, the company has entered into long term agreements with nationalised banks with adequate flexibility which enable IREDA to re-negotiate the term to get advantage of the interest rate regime.

3. IREDA has also established Exchange Risk Administration Fund (ERAF) to protect itself against the exchange risk arising out of INR borrowings repayable in US$ terms.

4. IREDA is taking active action for protection against interest rate risk by adopting hedging instrument on case to case basis. In this regard, during the financial year, an interest rate swap has been finalised with Standard Chartered Bank for KfW loan. As per the swap, IREDA hedged variable interest rate receivable by fixed interest rate receivable against fixed interest rate liability.

B) Quantitative Disclosures:-

(Rupees in crore) Sl. Particular Currency Interest rate No. Derivatives derivatives

1 Derivatives (National Principal Amount)

a) For hedging - 334.53

b) For trading - -

2 Marked to Market Positions (1)

a) Asset (+)/Receivables - 0.26

b) Liability (-)/Payable - -

3 Credit Exposure (2) 4.90 -

4 Likely impact of one percentage change in interest rate (100*PV01)

a) on hedging derivatives - 13.12

b) on trading derivatives - -

5 Maximum and Minimum of 100*PV01 observed during the year

a) on hedging - Max. 6.56

Min. 3.28 -

b) on trading - -

(22) Figures are rounded off to the nearest rupee. Previous years figures have been re-arranged/re-grouped wherever considered necessary to make them comparable with the current years figures.