a)    The conveyancing of the title to 10,194.85 acres of freehold land of value ' 2,177.78 crore (31 March 2023: 10,301.23 acres of value ' 2,218.50 crore), buildings and structures of value ' 4.97 crore (31 March 2023: ' 4.97 crore) and also execution of lease agreements for 9,114.64 acres of right of use land of value ' 814.19 crore (31 March 2023: 6,487.36 acres of value ' 729.02 crore) in favour of the Company are awaiting completion of legal formalities.

b)    Land includes 1,146.67 acres of freehold land of value ' 22.13 crore (31 March 2023: 1,295.40 acres of value ' 29.56 crore) and 377.71 acres of right of use land of value ' 10.55 crore (31 March 2023: 376.57 acres of value ' 3.07 crore) not in possession of the Company. The Company is taking appropriate steps for repossession of the same.

c)    Land-freehold includes an amount of ' 263.92 crore (31 March 2023: ' 263.92 crore) deposited with various authorities in respect of land in possession which is subject to adjustment on final determination of price.

d)    Gross block of land under submergence represents ' 635.73 crore (31 March 2023: ' 632.83 crore) of freehold land and ' 178.83 crore (31 March 2023: ' 178.83 crore) of right of use land. The land has been amortized considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials.

e)    Possession of land measuring 98 acres (31 March 2023: 98.00 acres) consisting of 79 acres of freehold land (31 March 2023: 79.00 acres) and 19 acres of right of use land (31 March 2023: 19.00 acres) of value ' 0.21 crore (31 March 2023: ' 0.21 crore) was transferred to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (erstwhile UPSEB) for a consideration of ' 0.21 crore. Pending approval for transfer of the said land, the area and value of this land has been included in the total land of the Company. The consideration received from erstwhile UPSEB is disclosed under Note 34 - Current liabilities -Other financial liabilities.

f)    During the previous year, the company entered into with a Business Transfer Agreement (BTA) with NTPC Green Energy Ltd, a wholly owned subsidiary of the company, for transfer of fifteen Renewable Energy (RE) assets of the Company. The assets were transferred as at the closing date of transfer being 28 February 2023 at book value pursuant to BTA. Further, approval for assignment / novation of ROU land pertaining to Rojmal project and Jetsar project , included in the above transferred RE Stations, are yet to be consented by the lessor and accordingly retained in the books of the Company, of area admeasuring 863.25 acres amounting to ' 18.56 crore (31 March 2023: ' 19.43 crore) included above in the netblock of Land-right of use.

g)    Operations of one of the thermal power station of the Company (460 MW-TTPS) was discontinued w.e.f. the end of 31 March 2021. Some of the assets have been classified as held for sale considering the requirements of Ind AS 105. Carrying value of remaining assets of the discontinued plant as at 31 March 2024 is ' 4.59 crore (31 March 2023: ' 120.52 crore). It is expected that many of the assets are expected to be used in other power plants of the Company. Notwithstanding the above, the net realisable value of the assets of the station has been assessed which is more than its carrying value.

h)    Operations of one of the thermal power station (220 MW-Kanti) of the Company was discontinued w.e.f. 8 September 2021. Carrying value of remaining assets of the station as at 31 March 2024 is ' 52.38 crore (31 March 2023: ' 97.61 crore). The net realisable value of the assets of the station has been assessed which is more than its carrying value. Since the conditions precedent for classification of these assets as held for sale are not completed, these assets have been continued to be classified under Property, plant and equipment.

i)    Operations of Stage-I (2X110 MW-Barauni) of one of the thermal power stations of the Company, along with auxiliary systems except Coal Handling Plant, Switch yard, Ash dyke and township, was discontinued w.e.f. 31 March 2024. Carrying value of remaining assets of the station as at 31 March 2024 is ' 20.31 crore. These assets will be disposed or utilised at other locations of the Company, subsequent to decommissioning of the Units. The net realisable value of the assets of the station has been assessed which is more than its carrying value. Since the conditions precedent for classification of these assets as held for sale are not completed, these assets have been continued to be classified under Property, plant and equipment.

j)    Refer Note 72 regarding property, plant and equipment under leases.

k)    Spare parts of ' 5 lakh and above, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized.

l)    Property, plant and equipment costing ' 5,000/- or less, are depreciated fully in the year of acquisition.

m)    Refer Note 25 for information on property, plant and equipment pledged as security by the Company.

* Brought from expenditure during construction period (net) - Note 47

a)    Construction stores includes material lying with contractors for construction works and are net of provision for shortages pending investigation amounting to ' 30.40 crore (31 March 2023: ' 28.54 crore).

b)    Pre-commissioning expenses for the year amount to ' 876.05 crore (31 March 2023: ' 667.45 crore) and after adjustment of pre-commissioning sales of ' 227.84 crore (31 March 2023: ' 175.28 crore) resulted in net precommissioning expenditure of ' 648.21 crore (31 March 2023: ' 492.17 crore).

c)    Additions to the development of coal mines include expenditure during construction period (net) of ' 1349.06 crore (31 March 2023: ' 651.07 crore) - [Ref. Note 48] and after netting off the receipts from coal extracted during the development phase amounting to ' 990.63 crore (31 March 2023: ' 282.67 crore).

d)    Details of exchange differences and borrowing costs capitalised are disclosed in Note 2 (p).

e)    Amount capitalised under development of coal mines is included in assets capitalised under 'Mining properties' and 'Site restoration cost' under Property, plant and equipment.

a)    Investment property has been valued as per material accounting policy no. C.6 (Note 1)

b)    Freehold land includes freehold land pertaining to one of the RE stations admeasuring 1202.55 acres of value ' 465.18 crore which is leased pursuant to a Business Transfer Agreement (BTA) entered into between the Company and NTPC Green Energy Ltd. (NGEL), a wholly owned subsidiary of the Company, in the previous year. Freehold land also includes 2,773.41 acres of value ' 367.78 crore and Right of use land of 35.85 acres amounting to ' 40.64 crore pertaining land leased to NTPC Renewable Energy Limited (NREL), a subsidiary of NGEL for establishing Solar Power Plant.

c)    The rental income arising out of leasing out of the property amounting to ' 5.93 crore (31 March 2023: ' 0.19 crore) has been included in Note-41 - Other income. Disclosure on future rent receivable is included in Note 72. The direct operating expenses arising from the investment property are insignificant.

d)    The company does not have any contractual obligation to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

e)    Investment property pledged as security is ' Nil in all the reported periods.

f)    The fair value of the investment property as at the balance sheet date is ' 852.86 crore w.r.t. freehold land which is based on the valuation by registered valuers as defined under Rule 2 of Companies (Registered valuers and valuation) Rules,2017.

a)    Investments have been valued as per material accounting policy no. C.22.1 (Note 1).

b)    The Company has an investment of ' 834.55 crore (31 March 2023: ' 834.55 crore) in Ratnagiri Gas and Power Private Ltd. (RGPPL), a Subsidiary of the Company. The entire investment was considered impaired and provided for in the earlier years considering the financial position of the Subsidiary. During the year, fair valuation of investment in the Subsidiary was carried out and considering the same, the provision made in the earlier years has been written back and disclosed as an Exceptional item in the Statement of Profit and Loss. Also refer Note 51.

c)    The Resolution Plan submitted by the company and approved by National Company Law Tribunal (NCLT), Kolkata bench in respect of Jhabua Power Limited (JPL) having installed and commercial capacity of 600 MW thermal power station, was implemented on 5 September 2022 for a total consideration of ' 925 crore, out of which ' 325 crore was contributed as equity (face value of ' 10 each) and ' 600 crore was paid for the allotment of 5,99,99,994 numbers of 8.5% Non-Convertible Debentures (NCDs) of face value of ' 100 each. Pursuant to above, NTPC has acquired 50% equity in the Company (JPL) in the previous year. Based on the shareholders agreement which provides for joint control over the company, the investment in the company is considered as joint venture and accounted for accordingly.

d)    The Board of NTPC Ltd. in its meeting dated 29 October 2022 has accorded approval to the Supplementary JV Agreement of Anushakti Vidyut Utpadan Nigam Limited, a Joint Venture of the Company, to align the document in

line with Atomic Energy Act 2016 amendment so that the Joint Venture Company may initiate process for setting up of nuclear power projects. Accordingly, Supplementary JV Agreement was signed between NTPC and NPCIL on 1 May 2023 subject to approval of Department of Atomic Energy (DAE).

e)    Promoters of National High Power Testing Laboratory Ltd. (NHPTL), a joint venture of the Company, in the meeting held on 15 September 2022, under the chairmanship of Secretary Power, MoP, has accorded approval of revival plan of NHPTL. Subsequently, Board of NTPC Limited has accorded approval to the restructuring plan on 11 March 2023. During the year, the Company has converted the loan given to NHPTL, into equity amounting to ' 18.40 crore and unpaid interest amounting to ' 2.31 crore on the loan has been waived off. The related activities of restructuring plan was under implementation as at 31 March 2024. Based on the un-audited accounts of NHPTL as at 31 March 2024, provision for impairment loss on the investment in the joint venture of ' 36.48 crore (upto 31 March 2023: ' 30.40 crore) has been made.

Further, pursuant to agreement entered on 23 April 2024 with the promoters of NHPTL, the share holding of the company in the Joint venture will get reduced to 12.50% and activities related to the same are in progress.

f)    The Board of Directors of the Company in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from NTPC BHEL Power Projects Private Ltd. (NBPPL), a joint venture of the Company. A meeting was held on 3 October 2022 at MOP to discuss the way forward for NBPPL. In the meeting, it was decided that the process of winding up of NBPPL will be taken up by both the promoters after the completion of balance on going work at one of the projects of the Company. Pending withdrawal, provision for impairment loss on the entire investment in NBPPL of ' 50.00 crore (upto 31 March 2023: ' 50.00 crore) has been made based on the un-audited accounts of NBPPL as at 31 March 2024.

g)    The Board of Directors of the Company in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from Transformers and Electricals Kerala Ltd. (TELK), a joint venture of the Company. GOI has accorded its approval for exit of NTPC from the joint venture. The decision of the Board of Directors of NTPC Limited and approval of GOI has been conveyed to the Government of Kerala (GoK) (JV Partner) & TELK vide letter dated 10.02.2017. GoK has in-principally agreed for the exit of the NTPC Ltd. subject to valuation of NTPC's share based on up-to-date audited results of TELK. The Company is following up with TELK for obtaining the updated audited results which are yet to be finalized. Pending the same, provision for impairment loss on the investment in TELK amounting to ' 25.87 crore (upto 31 March 2023: ' Nil) has been made based on the un-audited accounts of TELK as at 31 March 2024.

h)    In respect of Hindustan Urvarak and Rasayan Ltd.,(HURL) a joint venture of the Company, Department of Fertiliser (DoF) has communicated to explore possibility of disinvestment in HURL vide letter dated 12 October 2022. Consequently, approvals of Board and respective ministries have been obtained by all the three lead promoters (IOCL, NTPC & CIL) for disinvestment. HURL has sought clarification from DoF with respect to disinvestment of 10.99 % shareholding of fertilizer companies (FCIL / HFCL), who had provided land on lease to HURL, and the same is awaited.

i)    NTPC EDMC Waste Solutions Private Limited (NEWS) was incorporated on 1 June 2020 to develop and operate integrated waste management and energy generation facility using municipal solid waste. However, due to non availability of suitable land and PPA, the project was dropped. NTPC vide letter dated 4 May 2022 has requested the consent of Municipal Corporation of Delhi (MCD)/East Delhi Municipal Corporation (EDMC) for transfer of MCD's equity stake (26%) in NEWS to NTPC or its affiliate Company. MCD vide their letter dated 24 January 2024 has communicated their in principle approval for the same. Modalities for transfer are being worked out.

j)    The Company has an investment of ' 846.61 crore (31 March 2023: ' 463.61 crore) in Energy Efficiency Services Ltd., a joint venture of the Company. During the year, impairment testing of the investment was carried out based on which a provision for impairment amounting to ' 149.10 crore has been made. Also refer Note 62.

k)    The Company has an investment of ' 15.64 crore ( 31 March 2023: ' 15.20 crore) in Trincomalee Power Company Ltd, a joint venture of the Company. A provision for impairment on the investments amounting to ' 14.28 crore (31 March 2023 : ' 14.28 crore) has been maintained based on their unaudited financial statements for the year ended 31 March 2024.

l)    Restrictions for the disposal of investments held by the Company and commitments towards certain subsidiary & joint venture companies are disclosed in Note 75 (C) (b) and (c).

m)    Refer Note 62 w.r.t. impairment of investments made in subsidiary and Joint Venture Companies.

d)    The Board of Directors of NTPC Limited in its meeting held on 19 June 2014 accorded in principle approval for withdrawal from BF-NTPC Energy Systems Ltd. (BFNESL), a joint venture of the Company. As BFNESL was formed by a directive from the GOI, approval of the GOI was sought for exit by the Company. Ministry of Power, GoI conveyed its approval for winding up of BF-NTPC on 8 January 2018. Consequently, liquidator was appointed in the extraordinary general meeting of BFNESL held on 9 October 2018. Company has only Land Asset. However, due to high circle rate of the area, there is huge capital Gain tax implication and thus, unable to auction the land. Alternatives are being discussed by Liquidator with Promoters. Pursuant to winding up proceedings, the Company had lost the joint control over the entity and accordingly, has classified the investment in BFNESL as 'Investment in unquoted equity instruments. The difference between the cost of investment and the fair value has been provided for in the earlier years.

e)    The number of Debentures of Jhabua PowerLimited mentioned above includes current portion of Debntures to be redeemed.

f)    The Company is of the view that provisions of Ind AS 24 'Related Party Disclosures' and Ind AS 111 'Joint Arrangements' are not applicable to the investments made in PTC India Ltd., International Coal Ventures Private Ltd. and BF-NTPC Energy systems Ltd., and the same has been accounted for as per the provisions of Ind AS 109 'Financial Instruments'. Also Refer Note 59 (g) for investments in PTC India Ltd.

g)    No strategic investments in equity instruments measured at FVTOCI were disposed during the financial year 202324, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

a)    Claims recoverable includes amount outstanding as recoverable from GOI of ' 483.37 crore (31 March 2023: ' 517.28 crore)in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI in the year 2010. The aforesaid amount includes ' 269.93 crore (31 March 2023: ' 302.16 crore) in respect of arbitration awards challenged by the Company before Hon'ble High Court of Delhi for which corresponding liability exists under Current liabilities - Provisions - Provision for arbitration awards (Note 36). In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against the amount recoverable from GOI. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of contractors/ vendors for various packages for this project will be compensated in full by the GOI.

b)    The Company had ascertained that the Power Purchase Agreement (PPA) entered into for Stage-I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets was derecognized from PPE and accounted as Finance Lease Receivable (FLR) on transition to Ind AS. The Company has continued to classify this arrangement with its customer as lease based on the practical expedient provided in Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are continued to be adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are continued to be recognised as 'Interest income on Assets under finance lease' under 'Revenue from operations' (Note 40). The PPA is expiring in the next financial year and accordingly the balance lease recoverable has been included under 'Current assets - Other financial assets'.

c)    As per the guidelines from Ministry of Coal, Government of India for preparation of Mine Closure Plan, Escrow Accounts have been opened for each captive mine and the balances held in these escrow accounts are presented as 'Mine closure deposit'. Up to 80% of the total deposited amount including interest accrued in the escrow account shall be released after every five years in line with the periodic examination of the closure plan as per the Guidelines. Interest earned on the escrow account is added to mine closure deposit account.

d)    Advances to contractors and suppliers include payments to Railways amounting to ' 1,580.42 crore (31 March 2023: ' 1,708.03 crore) under customer funding model as per policy on 'Participative model for rail-connectivity and capacity augmentation projects' issued by the Ministry of Railways, GOI. As per this policy, an agreement has been signed between the Company and the Ministry of Railways, GOI on 6 June 2016. As per the agreement, railway projects agreed between the Company and Railways will be constructed, maintained and operated by Railways and ownership of the line and its operations and maintenance will always remain with them. Railways will pay upto 7% of the amount invested through freight rebate on freight volumes every year till the funds provided by the Company are fully recovered along-with interest (equal to the prevailing rate of dividend payable by Railways at the time of signing of respective agreements), subject to the rebate not exceeding the freight amount in the accounting year, after commercial operation date (COD) of the railway projects. The advance is adjusted at projects which have achieved COD based on confirmation from Railways towards freight rebate in consonance with the agreement terms and the interest portion is recognised in Note-41-'Other income'.

e)    Secured capital advances are secured against the hypothecation of the construction equipment/material supplied by the contractors/suppliers.

f)    Loans given to employees are measured at amortized cost. The deferred payroll expenditure represents the benefits on account of interest rate on loans being lower than the market rate of interest. The same is amortized on a straight-line basis over the remaining period of the loan.

d)    Refer Note 53 (b) for information on inventories pledged as security by the Company.

e)    Paragraph 32 of Ind AS 2 'Inventories' provides that materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. The Company is operating in the regulatory environment and as per CERC Tariff Regulations, cost of fuel and other inventory items are recovered as per extant tariff regulations. Accordingly, the realizable value of the inventories is not lower than the cost.

a)    Refer Note 54 for restatement of Trade receivables for the previous periods pursuant to opinion of Expert Advisory committee of Institute of Chartered Accountants of India.

b)    Amounts receivable from related parties are disclosed in Note 59 (c).

c)    Trade receivables include revenue for the month of March amounting to ' 13,326.46 crore (31 March 2023: ' 11,176.95 crore) net of advance, billed to the beneficiaries after 31 March.

d)    The carrying amount of trade receivables include receivables amounting to ' 1,824.71 crore (31 March 2023: ' 1,287.19 crore) towards bills of customers discounted through bill discounting facility availed from banks. The facility is with recourse to the Company i.e. if the customer fails to make payment on due date, the Company will be required to make the payment. Under this arrangement, the Company has transferred the receivables to the bank in exchange for cash and is prevented from selling or pledging the receivables. Further, the Company has retained substantially all of the risks and rewards, primarily late payment and credit risk, therefore these trade receivables have not been derecognized from the balance sheet. The amount received from the bank under the facility has been recognized under 'Current financial liabilities - Borrowings (Secured)' (refer Note 31(d)). The Company considers that the held to collect business model remains appropriate for these receivables and accordingly, continues to measure them at amortised cost.

a) In line with the guidelines issued by Ministry of New and Renewable Energy (MNRE), GOI under National Solar Mission-II, a Payment Security Mechanism (PSM) /Working Capital Fund will be set up/created by the MNRE. Upon creation of the said fund, amounts accrued from encashment of bank guarantee, penalties/liquidated damages on developers deducted by the Company from the Solar Power Developers (SPDs) as per the guidelines of MNRE shall be transferred to this fund. Subsequently, MNRE has asked the Company to maintain the PSM fund. The fund is retained till further directions for payment to MNRE or any other authority as may be directed.

c)    Other loans represent interest on loan of ' 4.30 crore (31 March 2023: interest on loan of ' 4.30 crore) given to APIIC which is covered by a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

d)    Loans to the employees are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company.

c)    Loans given to employees are measured at amortized cost. The deferred payroll expenditure represents the benefits on account of interest rate on loans being lower than the market rate of interest. The same is amortized on a straight-line basis over the remaining period of the loan.

d)    Advances to contractors and suppliers mainly include payment made to coal companies amounting to ' 3,420.89 crore (31 March 2023: ' 3,143.51 crore) for supply of coal to various stations of the Company.

e)    Claims recoverable includes claims against Railways amounting to ' 1,962.65 crore (31 March 2023: ' 2,023.76 crore) mainly towards diversion of coal rakes. These are regularly reviewed and reconciled with the Indian Railways periodically. Claims recoverable also includes claims amounting to ' 1,725.37 crore (31 March 2023: ' 1,615.66 crore) made against coal companies towards various issues eg. credit notes to be received as per referee results for grade slippages, supply of stones, claims under settlement through AMRCD, surface transportation charges,etc.

a)    The Company has surplus land of 0.83 acres (31 March 2023: 20.87 acres) which is under process of disposal. The Company expects that the fair value (estimated based on market values) less costs to sell is higher than their carrying values and hence no impairment is considered necessary.

b)    Plant and equipment and Other assets (Office equipment, vehicles,furniture and fixtures,etc.) have been identified for disposal due to replacement/ obsolescence of assets which happens in the normal course of operations. On account of classification of these assets from Property, plant and equipment, the loss recognised in the statement of profit and loss is not material.

c)    These assets are expected to be disposed off within the next twelve months.

d)    The Company has not reclassified any of the assets classified as held for sale as Property, plant and equipment during the year as well as in the previous year.

a) Security deposits (unsecured) include ' 41.98 crore (31 March 2023: ' 54.20 crore) towards sales tax/GST deposited with sales/commercial tax authorities, ' 1,233.32 crore (31 March 2023: ' 1,458.49 crore) deposited with Courts, ' 223.20 crore (31 March 2023: ' 218.83 crore) deposited with LIC for making annuity payments to the land oustees. Further an amount of ' 500.00 crore (31 March 2023: ' 500.00 crore) has been deposited against bank guarantee with one of the party as per the direction of the Hon'ble Supreme Court of India, refer Note 63 (iii) which has been considered as doubtful.

a)    Regulatory deferral account balances have been accounted in line with material accounting policy no. C.4 (Note 1). Refer Note 39 for Regulatory deferral account credit balances. Refer Note 70 for detailed disclosures.

b)    CERC Tariff Regulations, 2019 provide for recovery of deferred tax liability (DTL) as at 31 March 2009 from the beneficiaries. Accordingly, DTL as at 31 March 2009 is recoverable on materialisation from the beneficiaries. Regulations, 2014 and Regulations, 2019 provide for grossing-up the rate of return on equity based on effective tax

e)    Increase in the authorised share capital

During the previous year 2022-23, the authorised share capital of the Company has increased from ' 10,000 crore to ' 16,600 crore pursuant to scheme of amalgamation of two subsidiaries of the Company, vide order dated 26 August 2022 of Ministry of Corporate Affairs, GOI.

f)    For the period of five years immediately preceding the Balance sheet date:

(i)    Shares bought back

The Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of ' 2,275.75 crore being 2% of the total paid up equity share capital at ' 115.00 per equity share, during the financial year 2020-21.

(ii)    Shares allotted as fully paid up by way of bonus shares:

The Company had issued 1,64,90,92,880 equity shares of ' 10/- each as fully paid bonus shares in the financial year 2018-19 in the ratio of one equity share of ' 10/- each for every five equity shares held.

The principal Gazette Notification dated 14 September 1999 enunciates that every thermal power plant should provide ash free of cost for 10 years for activities of manufacturing ash-based products or for construction of roads, embankments, dams, dykes or for any other construction activity. Subsequently, vide Gazette Notification dated 3 November 2009, issued by the Ministry of Environment and Forest (MOEF),Government of India (GOI) directed that, the amount collected from sale of fly ash and fly ash based products should be kept in a separate account head and shall be utilized only for the development of infrastructure or facility, promotion & facilitation activities for use of fly ash until 100 percent fly ash utilization level is achieved.

Vide, Gazette Notification dated 31st December 2021, of Ministry of Environment and Forest and Climate Change (MOEF&CC), GOI which is applicable from 1st April 2022 had superseded all earlier notifications The said notification does not mention any requirement of keeping the amount thus collected from sale of fly ash and fly ash based products in a separate account. However, the Company continues to maintain the fund for the purposes stated above.

In line with various CERC orders on reimbursement of ash transportation, the Company spends the amounts collected from sale of fly ash and fly ash-based products for offsetting it against the expenditure incurred by respective Station for transportation of ash to agencies engaged in construction activities such as road laying, road and flyover embankments, shoreline protection structures in coastal districts and dams.

The fund balance has been kept in 'Bank balances other than cash & cash equivalents' (Note 17). Also refer Note 22 & 70 (ii)(d) for ash transportation cost.

a)    Details of terms of repayment and rate of interest

i)    Unsecured foreign currency loans (guaranteed by GOI) - Others carry fixed rate of interest ranging from 1.80% p.a. to 2.30% p.a. and are repayable in 5 to 14 semi annual instalments.

ii)    Unsecured foreign currency loans - Banks include loans of ' 44.82 crore (31 March 2023: ' 67.13 crore) which carry fixed rate of interest of 1.88% and loans of ' 22,391.72 crore (31 March 2023: ' 19,761.81 crore) which carry floating rate of interest linked to 6M USD SOFR/6M EURIBOR/3M TONA/6M TONA . These loans are repayable in 1 to 23 semi annual/annual instalments as of 31 March 2024, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iii)    Unsecured foreign currency loans - Others include loans of ' 1,155.55 crore (31 March 2023: ' 1,568.31 crore) which carry fixed rate of interest ranging from 1.88% p.a. to 4.13% p.a and loans of ' 1,730.86 crore (31 March 2023: ' 2,093.57 crore) which carry floating rate of interest linked to 3M TONA/6M TONA. These loans are repayable in 03 to 23 semi annual instalments as of 31 March 2024, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iv)    Unsecured rupee term loans from banks and others carry interest rate ranging from 7.60% p.a. to 8.20% p.a. with monthly rests. These loans are repayable in half-yearly/yearly instalments as per the terms of the respective loan agreements. The repayment period extends from a period of 9 to 15 years after a moratorium period of 3 to 6 years.

v)    Secured rupee term loans from banks and others carry interest rate ranging from 7.95% p.a. to 8.50% p.a. with monthly rests. These loans are repayable in quarterly instalments as per the terms of the respective loan agreements. The repayment period extends upto a period of 15 years after a moratorium period of 6 months to 5 years.

b)    There has been no default in repayment of any of the loans or interest thereon as at the end of the year.

c)    The company has used the borrowings from banks and financial institutions for the purposes for which they were taken

Details of securities

I    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage, by way of first charge, by deposit of title deeds of the immovable properties pertaining to National Capital Power Station (including thermal & gas)

II    Secured by Equitable mortgage of the immovable properties pertaining to Vindhyachal Super Thermal Power Station on first charge basis.

III    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Sipat Super Thermal Power Project by extension of charge already created.

IV    Secured by Equitable mortgage, on pari-passu charge basis, of the immovable properties pertaining to Barh Super Thermal Power Project.

V    Secured by Equitable mortgage, on pari-passu charge basis, of the immovable properties pertaining to Vindhyachal Super Thermal Power Station.

VI    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to National Capital Power Station (including thermal and gas) by extension of charge already created.

VII    Secured by English mortgage of the immovable properties pertaining to Solapur Super Thermal Power Project on first charge basis.

VIII    Secured by Equitable mortgage of the immovable properties pertaining to Barh Super Thermal Power Project on first charge basis.

IX    Secured by English mortgage, on pari-passu charge basis, of the immovable properties pertaining to Solapur Super Thermal Power Project.

a)    Government grants include grant received in advance amounting to ' 15.00 crore (31 March 2023: ' 8.47 crore) for which attached conditions are to be fulfilled / works to be completed relating to various solar power plants. This amount will be recognized as revenue corresponding to the depreciation charge in future years on completion of related projects.

b)    Balance Government grants represent unamortised portion of grant received. This includes ' 47.55 crore (31 March 2023: ' 39.64 crore) received from Solar Energy Corporation of India under MNRE Scheme for setting up Solar PV power projects. This amount will be recognized as revenue corresponding to the depreciation charge in future years. Refer Note 35 w.r.t. current portion of Government grants.

a)    The outstanding short term working capital loans from banks carry fixed interest rate ranging between 7.04% to 7.30% p.a. (31 March 2023: 6.98% p.a. to 7.38% p.a.) repayable on due dates, in line with respective arrangements with the lender banks. Commercial paper carry discounted interest of 7.59 % p.a.(31 March 2023: Ranging from 5.20 % p.a.to 7.30 % p.a.) .

b)    Borrowings under Commercial paper are net of unamortised discount as at 31 March 2024 amounting to ' 120.62 crore (31 March 2023: ' 40.27 crore)

c)    Details in respect of rate of interest and terms of repayment of current maturities of secured and unsecured noncurrent borrowings indicated above are disclosed in Note 25.

d)    The secured current borrowings relating to bills discounted are secured against the book debts, present and future. Refer note 15 (d) for detailed disclosure.

e)    There has been no default in repayment of any of the loans or interest thereon as at the end of the year.

a)    Unpaid dividends, matured deposits, bonds and interest include the amounts which have either not been claimed by the investors/holders of the equity shares/bonds/fixed deposits or are on hold pending legal formalities etc. Out of the above, the amount required to be transferred to the Investor Education and Protection Fund (IEPF) has been transferred.

b)    Other payables - Others' mainly includes ' 41.52 crore (31 March 2023: ' 63.68 crore) towards the implementation of Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) Scheme of the GOI being carried out by the Company. The funds for the implementation of these schemes are provided by the agencies nominated by the GOI in this regard. Further, 'Other payables - Others' also include ' 293.29 crore (31 March 2023: ' 251.53 crore) in respect of an amount payable under a contract which was under dispute which has been since settled and balance towards amount payable to hospitals, etc.

c)    The Company had obtained exemption from the Ministry of Corporate Affairs (MCA), GOI in respect of applicability of Section 58A from the erstwhile Companies Act, 1956 in respect of deposits held from the dependants of employees who die or suffer permanent total disability under the 'Employees Rehabilitation Scheme' (said amount is included in "Other payables - Others"). Consequent upon enactment of the Companies Act, 2013, the Company has written to the MCA for clarification on continuation of above exemption granted earlier, which is still awaited. Based on an expert opinion, the amount accepted under the Scheme is not considered as a deposit under the Companies Act, 2013.

d)    Contractual obligation includes security deposit and retention money deducted from vendors.

e)    Disclosures as required under the Companies Act, 2013 / MSMED Act, 2006 are provided in Note 73.

f)    Amounts payable to related parties are disclosed in Note 59.

a) Disclosures required by Ind AS 19 'Employee Benefits' are provided in Note 56.

b) Disclosures required by Ind AS 37 'Provisions, Contingent Liabilities and Contingent Assets' are provided in Note 63.

c)    Provision for others mainly comprise ' 99.40 crore (31 March 2023: ' 90.79 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to Block AA-ONN-2003/2 (Refer Note 65) and ' 5.11 crore (31 March 2023: ' 5.97 crore) towards provision for shortage in property, plant and equipment on physical verification pending investigation.

a)    (i) CERC notified The Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019

vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-24. CERC has issued provisional tariff orders in respect of thirty nine stations for the tariff period 2019-24. Pending issue of provisional tariff orders in respect of balance stations, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new stations, which got commercialised on and after 1 April 2019 and stations where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Accordingly, capacity charges provisionally billed for the year ended 31 March 2024 is ' 51,405.34 crore (31 March 2023'47,631.73 crore). Energy and other charges are billed as per the operational norms specified in the Regulations 2019. Accordingly, energy charges billed for the year ended 31 March 2024 is ' 96,337.27 crore (31 March 2023'97,042.05 crore).

(ii) Capacity charges for the year ended 31 March 2024 have been provisionally recognized considering the provisions of CERC Tariff Regulations amounting to ' 54,458.51 crore (31 March 2023'49,832.28 crore). Energy and Other charges for the year ended 31 March 2024 have been recognized at ' 98,307.09 crore (31 March 2023 ' 1,00,306.61 crore) as per the operational norms specified in the Regulations 2019.

b)    Capacity charges for the year ended 31 March 2024 include ' 1,661.51 crore (31 March 2023'1,829.50 crore) pertaining to earlier years on account of impact of CERC orders and other adjustments. Energy and other charges for the year ended 31 March 2024'327.76 crore (31 March 2023'3,206.12 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments. Other adjustments during PY include an amount of ' 3,097.04 crore on account of adjustment of 'Net movement in regulatory deferral account balances (net of taxes)' relating to reimbursement of ash transportation cost for the period from 1 April 2019 to 31 March 2022 pursuant to Order of CERC dated 28 October 2022.

c)    Sales for the year ended 31 March 2024 include ' Nil (31 March 2023'262.97 crore) on account of income tax receivable from the beneficiaries as per Regulations, 2004. Sales for the year ended 31 March 2024 also include 124.70 crore (31 March 2023'87.51 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d)    Energy sales include electricity duty amounting to ' 1,668.20 crore (31 March 2023: ' 1,516.71 crore).

e)    Revenue from operations for the year ended 31 March 2024 include ' 3,997.78 crore (31 March 2023: ' 3,759.32 crore) on account of sale of energy through trading (gross).

f)    Other operating revenue includes ' 77.90 crore (31 March 2023: ' 92.04 crore) towards energy internally consumed, valued at variable cost of generation and the corresponding amount is included in power charges in Note 46.

g)    CERC Regulations provides that where after the truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover from /pay to the beneficiaries the under/over recovered amount along-with simple interest. Based on the above, the interest recoverable from the beneficiaries amounting to ' 1,512.58 crore (31 March 2023: ' 1,609.33 crore) has been accounted as 'Interest from beneficiaries'. Further, the amount payable to the beneficiaries has been accounted as 'Interest to beneficiaries' in Note 46.

h)    Provision written back-others includes write back of provision towards water conservation fund at few projects of the Company amounting to ' Nil (31 March 2023: ' 242.98 crore), which was no longer required.

i)    The Power Purchase Agreements (PPA) signed in respect of a power station was operative initially for a period of five years with the beneficiary which may be extended, renewed or replaced as the parties mutually agree. The Company has continued to classify these arrangement with its customers as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are considered as lease rentals on the assets which are on operating lease.

j)    The Company had ascertained that the PPA entered into for Stage-I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets was derecognized from PPE and accounted as Finance Lease Receivable (FLR) on transition date to Ind AS. The Company has continued to classify this arrangement with its customer as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation (including AAD), interest on loan capital

& return on equity (pre-tax) components from the beneficiary are continued to be adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are continued to be recognised as 'Interest income on Assets under finance lease'.

k) CERC vide notification dated 19 February 2021, notified the Second amendment to Tariff Regulations 2019, which inter alia includes mechanism for determination of transfer price of coal from integrated coal mines to generating stations and are effective for the period 2019-24. Coal extracted from Company's captive mines and supplied to generating stations have been accounted considering these Regulations.

a)    Expenses on ex-gratia payments under voluntary retirement scheme, training & recruitment, voluntary community development and preliminary expenses on account of new projects incurred prior to approval of feasibility report/ techno economic clearance are charged to statement of profit and loss in the year incurred.

b)    During the development stage of mine, transfer price of coal extracted from Company's captive mine has been determined considering the CERC Regulations. The same has been netted from the cost of captive coal and carried to 'Development of coal mines' (Note 3) through 'Transferred to expenditure during development of coal mines' (Note 48).

d)    CERC Regulations provides that where after the truing-up, the tariff recovered is more than the tariff approved by the Commission, the generating Company shall pay to the beneficiaries the over recovered amount along-with simple interest. Accordingly, the interest payable to the beneficiaries amounting to ' 252.30 crore (31 March 2023: ' 285.85 crore) has been accounted and disclosed as 'Interest to beneficiaries'.

e)    Miscellaneous expenses include expenditure on books & periodicals, workshops, operating expenses of DG sets, brokerage and commission, bank charges, furnishing expenses, etc.

f)    Provisions for unserviceable capital works includes an amount of ' 117.62 crore in respect of one of the hydro projects whose construction activities have been stopped by the order of hon'ble Supreme Court of India in May 2014.

g)    Provisions for doubtful loans, advances and claims include an amount of ' 500.00 crore being the amount deposited as per the orders of hon'ble Delhi Court- Refer Note 63.

h)    Provision for impairment of investment for the year includes an amount of ' 149.10 crore in respect of one of the Joint Venture Companies as per the impairment assessment carried out. Refer Note 7 and 62.

i)    Provisions - Others include provision for doubtful debts, shortages in property, plant and equipment and other losses.

49 a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables for energy sales, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipt of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers is generally done on quarterly basis. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters/emails with the negative assertion as referred in the Standard on Auditing (SA) 505 (Revised) 'External Confirmations', were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

b) In the opinion of the management, the value of assets, other than property, plant and equipment and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

c) The levy of transit fee/entry tax on supplies of fuel to some of the power stations has been paid under protest as the matters are sub-judice at various courts. In case the Company gets refund/demand from fuel suppliers/tax authorities on settlement of these cases, the same will be passed on to respective beneficiaries.

50    The Company is executing a 4 X 130 MW Hydro Electric Project in the State of Uttarakhand. After the reports of land subsidence in Joshimath Town, Additional District Magistrate, Chamoli has issued order on 5 January 2023 to stop all the construction activities till further orders. Hon'ble High Court of Uttarakhand on hearing a public interest litigation on 12 January 2023, has directed the State to strictly enforce the ban on construction in Joshimath area . As per Company's understanding, the land subsidence in Joshimath does not have any link with the Project which has also been confirmed through various expert reports submitted by the State of Uttarakhand in the Hon'ble High Court of Uttarakhand on 22 September 2023. The Hon'ble Court on 25 September 2023 directed the National Disaster Management Authority (NDMA) to make its recommendations and next date of hearing is 20 June 2024. The developments are closely being monitored by the Company. Aggregate cost incurred on the project up to 31 March 2024 is ' 6,671.30 crore (31 March 2023: ' 6,252.31 crore). Technical and administrative works related to the project are going on. Management does not envisage any threat to the continuance of the project and is confident that a viable solution in connection with the project shall be arrived in due course.

51    Note on Exceptional items in the Statement of Profit and Loss

The recovery of capacity charges based on capacity declaration on RLNG in respect to Ratnagiri Gas and Power Private Limited (RGPPL), a subsidiary of the Company, was challenged by Maharashtra State Electricity Distribution Company Limited (MSEDCL) considering the same as violation of Power Purchase Agreement (PPA). However, Central Electricity Regulatory Commission (CERC) vide its order dated 30 July 2013 as well as Appellate Tribunal for Electricity (APTEL) vide its order dated 22 April 2015, upheld RGPPL's right to recover the capacity charges which was claimed by RGPPL amounting to ' 5,287.76 crore together with interest. MSEDCL approached the Hon'ble Supreme Court of India vide civil appeal no. 1922 of 2023 and the Hon'ble Supreme Court of India vide its judgement dated 9 November 2023 dismissed the civil appeal observing that MSEDCL is misinterpreting the clauses of PPA and ordered to continue the execution petition before the APTEL. RGPPL filed execution petition in APTEL on 1 December 2023 disposal of the same by APTEL is awaited.

In the meanwhile MSEDCL has paid an adhoc payment of ' 500.00 crore upto 31 March 2024. Further discussions are on with MSEDCL along with Ministry of Power (MoP) for liquidation of outstanding dues of RGPPL.

The Company has an investment of ' 834.55 crore ( 31 March 2023: ' 834.55 crore) in RGPPL. The entire investment was considered impaired and provided for in the earlier years based on the financial position of the Subsidiary. The amount provided includes an amount of ' 782.95 crore which was presented as an exceptional item in the financial year 201617. Remaining carrying value of the investment was also provided in the earlier years in the Note for Other expenses. During the year, fair valuation of investments in RGPPL was carried out and as per the valuation, the total equity value in the Company has been ascertained as ' 1,764.70 crore. Considering the above, the provision made in the earlier years has been written back and disclosed as an Exceptional item in the Statement of Profit and Loss. (Also refer Note 7(b) and Note 62(g)).

52    Disclosure as per Ind AS 1 'Presentation of financial statements'

a)    Changes in Material Accounting Policy Information:

There are no material changes in the accounting policies, However, during the year, following changes to the accounting policies have been made:

i)    Scrap generated out of construction or maintenance jobs was hither to accounted as inventory on accrual basis. During the year an opinion has been pronounced by EAC of ICAI against a reference made by another entity and opined that miscellaneous scrap items i.e., other than process scrap, should not form part of inventory. Accordingly, the accounting of scrap has been modified and the amount of scrap appearing in the inventory as at 1 April 2023 amounting to ' 27.55 crore has been charged off during the year.

ii)    Certain other changes have also been made in the material accounting policies for improved disclosures. The impact on the financial statements due to these changes is not material.

b)    Refer Note 54 for disclosures relating to restatement.

(a)    Discounting of bills of beneficiaries

The Company has been presenting the trade receivables net of amount discounted and disclosing the amount of bills discounted under contingent liabilities for possibility of recourse to the company in the Financial Statements. During the year, an opinion has been pronounced by Expert Advisory Committee (EAC) of Institute of Chartered Accountants of India (ICAI) stating that the bills discounted having recourse to the Company should not be adjusted from the trade receivables, instead should be disclosed under borrowings - Current financial liabilities. The Company has evaluated implementation of the EAC opinion thus presenting the amount realised through bills discounting under financial liability as current borrowings instead of netting off from trade receivables.Accordingly, the Company has changed the accounting and presentation of the amount received from bills discounting as current borrowings from the financial year 2023-24 and corresponding changes in the previous periods have also been carried out. The changes in the presentation do not have any impact on the Statement of Profit and Loss as well as Statement of Changes in Equity of the Company for all the reported periods.

(b)    Presentation of Contractual obligations

The Company was including contractual obligations such as security deposit along with the dues of the vendors under trade payables. A review of the same was carried out considering the Guidance Note on Schedule III to the Companies Act,2013 and Industry practice and changed the presentation of contractual obligations from 'Trade payable' to 'Other financial liabilities' for the year 2023-24 and corresponding changes in the previous periods have also been carried out. The changes in the presentation do not have any impact on the Statement of Profit and Loss as well as Statement of Changes in Equity of the Company for all the reported periods.

(c)    Certain reclassifications have been made to the comparative period's Statement of cash flows with the current year's Statement of cash flows for improved disclosure.

(B) Deferred Tax relate to assets and liabilities arising from a Single Transaction

The Company has adopted the amendment to Ind AS 12 - "Income Taxes" as notified by the Ministry of Corporate Affairs vide notification dated 31 March 2023 relating to "Deferred tax related to assets and liabilities arising from a single transaction" from 1 April 2023. The amendment narrows the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting differences e.g. leases and decommissioning liabilities. As a result, the Company has recognised associated deferred tax liability of ' 240.95 crore, deferred tax asset of ' 317.99 crore and regulatory deferral account balance of ' 74.32 crore on right of use assets and leases liabilities during the year, and the corresponding impact of ' 2.72 crore, being the net of deferred tax income of ' 77.04 crore and regulatory deferral account (expense) of ' 74.32 crore, has been recognised in the Statement of Profit and Loss for the year, considering materiality.

56. Disclosure as per Ind AS 19 'Employee benefits'

(i)    Defined contribution plans:

Pension

The defined contribution pension scheme of the Company for its employees which is effective from 1 January 2007, is administered through a separate trust. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer's contribution towards provident fund, gratuity, post retirement medical facility (PRMF) or any other retirement benefits. The Company's contribution towards pension is made to National Pension System Trust (NPS) for the employees opted for the scheme. An amount of ' 281.93 crore (31 March 2023: ' 273.29 crore) for the year is recognized as expense towards contributions to the defined contribution pension scheme of the Company/NPS for the year and charged to the statement of profit and loss.

(ii)    Defined benefit plans:

Defined benefit plans of the Company are administered by separate funds which are legally separated from the Company. The management of funds is governed by their respective board of the trustees who are responsible for administration of the plan as per the provisions of the Trust deed and statutory provisions, as applicable. The board of the trustees are required by law to act in best interests of the plan participants and are responsible for setting certain policies (such as investments decisions, contribution schedules, claim settlement) of the funds.

A. Provident fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI. Accordingly, the Company has obtained report of the actuary, based on which overall interest earnings and cumulative surplus is more than the statutory interest payment requirement for all the periods presented. Further, contribution to employees pension scheme is paid to the appropriate authorities.

Pursuant to paragraph 57 of Ind AS 19, accounting by an entity for defined benefit plans, inter-alia, involves determining the amount of the net defined benefit liability (asset) which shall be adjusted for any effect of limiting a net defined benefit asset to the asset ceiling prescribed in paragraph 64. As per Para 64 of Ind AS 19, in case of surplus in a defined benefit plan, an entity shall measure the net defined benefit asset at the lower of actual surplus or the value of the assets ceiling determined using the discount rate. The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. Further, paragraph 65 provides that a net defined benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen.

As per the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Company has no right to the benefits either in the form of refund from the plan or lower future contribution to the plan towards the net surplus of ' 59.07 crore (31 March 2023: ' 56.88 crore) determined through actuarial valuation. Accordingly, Company has not recognised the surplus as an asset, and the remeasurement loss /gains in 'Other Comprehensive Income', as these pertain to the Provident Fund Trust and not to the Company.

As per the provisions of Employee's Provident Funds Scheme 1952, the employer shall be liable to make good the loss to the Trust in the event of any loss as a result of any fraud, defalcation, wrong investment decisions etc. to the Trust. Keeping in view the above, a cumulative provision of ' Nil (31 March 2023: ' 12.81 crore) has been recognized in the Statement of Profit and Loss, towards such loss to the trust.

B. Gratuity and pension

a) The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of ' 0.20 crore on superannuation, resignation, termination, disablement or on death, considering the provisions of the Payment of Gratuity Act, 1972, as amended. The gratuity scheme is funded by the Company and is managed by separate trust. The liability for gratuity scheme is recognised on the basis of actuarial valuation.

b) The Company has pension schemes at two of its stations in respect of employees taken over from erstwhile state government power utilities. These pension schemes are unfunded. The liability for the pension schemes is recognised on the basis of actuarial valuation.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity and pension plan and the amounts recognised in the Company's financial statements as at balance sheet date:

C. Post-Retirement Medical Facility (PRMF)

The Company has Post-Retirement Medical Facility (PRMF), under which the retired employees and their spouses are provided medical facilities in the Company hospitals/empanelled hospitals. They can also avail treatment as out-patient subject to a ceiling fixed by the Company. The liability for the same is recognised annually on the basis of actuarial valuation. A trust has been constituted for its employees superannuated on or after 1 January 2007, for the sole purpose of providing post retirement medical facility to them.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

G. Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

a)    Asset volatility

The plan liabilities are calculated using a discount rate set with reference to government bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The Company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

b)    Changes in discount rate

A decrease in discount rate will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' assets holdings.

c)    Inflation risks

In the pension plans, the pension payments are not linked to inflation, so this is a less material risk.

d)    Life expectancy

The pension plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the Company's ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. The Company uses derivatives to manage some of its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets.

A large portion of assets consist of government and corporate bonds. The plan asset mix is in compliance with the requirements of the respective local regulations.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 16.65 years (31 March 2023: 16.01 years).

(iii) Other long term employee benefit plans

A.    Leave

The Company provides for earned leave benefit (including compensated absences) and half-pay leave to the employees of the Company which accrue annually at 30 days and 20 days respectively. Earned leave (EL) is en-cashable while in service. Half-pay leaves (HPL) are en-cashable only on separation beyond the age of 50 years up to the maximum of 300 days. However, total number of leave (i.e. EL & HPL combined) that can be encashed on superannuation shall be restricted to 300 days and no commutation of half-pay leave shall be permissible. The scheme is unfunded and liability for the same is recognised on the basis of actuarial valuation. During the year, provision amounting to ' 121.71 crore has been made on the basis of actuarial valuation at the year end and debited to statement of profit and loss (31 March 2023: ' 71.11 crore)

B.    Other employee benefits

Provision for long service award and family economic rehabilitation scheme amounting to ' 3.67 crore (31 March 2023: ' (6.72) crore) for the year have been made on the basis of actuarial valuation at the year end and (credited)/ debited to the statement of profit and loss.

57    Disclosure as per Ind AS 21 'The Effects of Changes in Foreign Exchange Rates'

The amount of exchange differences (net) debited to the statement of profit and loss, net of movement in regulatory deferral account balances, is ' 6.10 crore (31 March 2023: debited to Statement of profit and loss ' 35.76 crore).

58    Disclosure as per Ind AS 23 'Borrowing Costs'

Borrowing costs capitalised during the year is ' 2,178.16 crore (31 March 2023: ' 2,785.95 crore).

those with other entities that are not Government-related generally through a transparent price discovery process against open tenders. In few cases of procurement of spares/services from Original Equipment Manufacturer (OEM) for proprietary items/or on single tender basis are resorted to due to urgency, compatibility and similar reasons which are also carried out through a process of negotiation with prices benchmarked against available price data of such items.

v) Entities under the control of the same government:

The Company is a Central Public Sector Undertaking (CPSU) controlled by Central Government by holding 51.10% of paid up share capital (31 March 2023- 51.10%) and is under Ministry of Power. The Company has transactions with other Government related entities, which significantly includes but not limited to purchase of fuel (coal, gas)/oil products, purchase of equipment, spares, receipt of erection, maintenance and other services, rendering consultancy and other services. Transactions with these parties are carried out at market terms and on terms comparable to

(a) Pursuant to a business transfer agreement entered with NGEL, a wholly owned subsidiary of the Company, fifteen renewable energy (RE) assets of the Company were transferred to NGEL as at 28 February 2023 at book value. During the year, the cost incurred by the Company for 1200 acres of lease hold land at Pudimadakka, Andhra Pradesh, including the capital advance (Note-12) of ' 713.32 crore accounted in the earlier years, was transferred to NGEL for establishing green hydrogen projects.

f) Terms and conditions of transactions with the related parties

i)    The Company was assigning jobs on contract basis, for sundry works in plants/stations/offices to M/s Utility Powertech Ltd. (UPL), a joint venture of the Company till the previous year ended 31 March 2023. UPL inter-alia undertakes jobs such as overhauling, repair, refurbishment of various mechanical and electrical equipment of power stations pursuant to a Power Station Maintenance Agreement with UPL from time to time. The rates were fixed on cost plus basis after mutual discussion and after taking into account the prevailing market conditions. The transactions reported for the year are in respect of assignments awarded till the year 2022-23 having execution period beyond 31 March 2023.

ii)    Other transactions with related parties are made on normal commercial terms and conditions and at arm length price.

iii)    The Company is seconding its personnel to subsidiary and joint venture companies as per the terms and conditions agreed between the companies, which are similar to those applicable for secondment of employees to other companies and institutions. The cost incurred by the Company towards superannuation and employee benefits are recovered from these companies.

v)    Consultancy services provided by the Company to subsidiary and joint venture companies are generally on nomination basis at the terms, conditions and principles applicable for consultancy services provided to other parties.

vi)    Outstanding balances of subsidiary and joint venture companies at the year-end are unsecured, except in respect of loan to RGPPL which is secured (Refer Note 9 c) and settlement occurs through banking transaction. These balances other than loans, investments in debentures and amount recoverable pursuant to business transfer agreement are interest free. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

vii)    Refer Note 62 (b), (c), (d), (e), (f) and (g) in respect of impairment loss on investment in certain subsidiaries and joint venture companies.

viii)    Refer Note 75 (C) towards restrictions on disposal of investment and commitment towards further investments in the subsidiary and joint venture companies.

g) Others

The Company has investment of 1.20 crore equity shares of ' 10 each in PTC India Ltd., as disclosed in Note 8- ' Other investments' and is one of the promoters of the Company having 4.05% holding. The Company is of the view that provisions of Ind AS 24 'Related Party Disclosures' are not applicable to the investments made in PTC India Ltd. and the same has been accounted for as per the provisions of Ind AS 109 'Financial Instruments'. During the year, the Company has transactions towards receipt of dividend of ' 9.36 crore (31 March 2023: ' 6.96 crore) and receipt of sitting fees for the nominee director amounting to ' 0.04 crore (31 March 2023: ' 0.10 crore) from PTC India Ltd.

61. Disclosure as per Ind AS 33 'Earnings per share'

Basic earnings per equity share is computed 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 financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any bonus shares issued during the financial year.

Basic and diluted earnings per equity share are also computed using the net profit or loss amounts excluding the net movements in regulatory deferral account balances.

62. Disclosure as per Ind AS 36 'Impairment of Assets'

As required by Ind AS 36, an assessment of impairment of assets was carried out and based on such assessment, the

Company has accounted impairment losses as under:

a)    For the Company, the recoverable amount of the property, plant and equipment & intangible assets of the Cash Generating Units (CGU) is value in use and amounts to ' 3,39,129.52 crore (31 March 2023: ' 2,87,698.56 crore). The net realisable value of the assets of the station has been assessed which is more than its carrying value.The discount rate used for the computation of value in use for the generating plant (thermal, gas and hydro) is 7.58 % (31 March 2023: 7.27%), coal mining is 7.93 % (31 March 2023: 7.27%) and for solar plant is 6.65 % (31 March 2023: 6.42%).

b)    In respect of investment in National High Power Test Laboratory Private Ltd., provision for impairment on investments has been recognised at ' 36.48 crore (31 March 2023: ' 30.40 crore). Also refer Note 7 (e).

c)    In respect of investment in NTPC BHEL Power Project Pvt. Ltd., provision for impairment on investments has been recognised at ' 50.00 crore (31 March 2023: ' 50.00 crore). Also refer Note 7 (f).

d)    In respect of investment in Transformers and Electricals Kerala Ltd., provision for impairment on investments has been recognised at ' 25.87 crore (31 March 2023: ' Nil). Also refer Note 7(g).

e)    In respect of investment in Energy Efficiency Services Ltd. (EESL), provision for impairment on investments has been recognised at ' 149.10 crore (31 March 2023: ' Nil). Also refer Note 7(j).

The Company has an investment of ' 846.61 crore (31 March 2023 - ' 463.61 crore) in the equity shares of EESL. The Company has incurred losses during last few years which has resulted in erosion of net worth of the Company. Also, value of EESL's assets has declined during the period significantly more than would be expected as a result of the passage of time or normal use. The investment in EESL has been assessed through an independent expert and the recoverable amount of this investment has been assessed at ' 697.51 crore and accordingly the Company has recognized an impairment loss of ' 149.10 crore in respect of such investment and disclosed the same under 'Provision for Impairment of investments' under Note-46- 'Other expenses'. Recoverable amount is based on the value in use as its fair value less cost of disposals cannot be estimated. Value in use has been arrived at by an independent expert. For computing the recoverable amount, independent expert has used discounted cash flow and market approach which had been equally weighted to arrive at the value in use. For discounted cash flow analysis, the key assumptions considered are: (i) Growth rate - 5% (ii) Discount factor (after tax) - 14.5%.

f)    In respect of investment in Trincomalee Power Company Limited, provision for impairment on investments has been recognised at ' 14.28 crore (31 March 2023: ' 14.28 crore). Also refer Note 7 (k).

g) In respect of investment in Ratnagiri Gas & Power Pvt. Ltd., provision for impairment on investments made in the earlier years amounting to ' 834.55 crore, has been written back during the year. (Also refer Note 7(b) and Note 51)

i)    Provision for obligations incidental to land acquisition

Provision for obligations incidental to land acquisition includes expenditure on rehabilitation & resettlement (R&R) including the amounts payable to the project affected persons (PAPs) towards land, expenditure for providing community facilities and expenditure in connection with environmental aspects of the project. The Company has estimated the provision based on the Rehabilitation Action Plan (RAP) approved by the board/competent authority or agreements/directions/demand letters of the local/government authorities. The outflow of said provision is expected to be incurred immediately on fulfilment of conditions by the land oustees/receipts of directions of the local/government authorities.

ii)    Provision for tariff adjustment

Billing to beneficiaries is being done based on tariff orders issued under Regulation 2014 except few stations where billing is done on provisional basis due to non-receipt of tariff orders. In such cases, accounting is done based on trued up cash expenditure as per Regulation 2019. Provision for tariff adjustment of ' 16.47 crore is mainly towards reversal of the estimated interest(net) payable to beneficiaries (31 March 2023 towards estimated interest payable to beneficiaries: ' 335.33 crore)at the time of issue of tariff orders.

iii)    Provision - Arbitration awards and Others

(a)    (i) Provision for arbitration awards represents provision created (net) based on awards pronounced by the

arbitrator in respect of various litigation cases amounting to ' 2,021.62 crore (31 March 2023: ' 2,646.94 crore). These awards have been challenged before various appellate authorities / Courts.

(ii) Provision for others includes ' 99.40 crore (31 March 2023: ' 90.79 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to Block AA-ONN-2003/2 , ' 5.12 crore (31 March 2023: ' 5.96 crore) towards provision for shortage in property, plant and equipment on physical verification pending investigation and ' Nil (31 March 2023: ' 12.81 crore) towards expected loss on investments of Provident Fund Trust.

(b)    The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. The Arbitral Tribunal had awarded a claim of ' 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. Based on the interim arbitral award and subsequent directions of the Hon'ble Delhi High Court and Hon'ble Supreme Court of India, an amount of ' 356.31 crore was paid to Operator upto 31 March 2019 and an amount of ' 500 crore was deposited with the Delhi High Court in November 2019, which was subsequently released to the Operator, on submission of bank guarantee.

Hon'ble High Court directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner which could not commence due to various local and operator's issues. Date of hearing at Hon'ble High Court of Delhi has been adjourned several times and now the date of next hearing has been fixed on 24 and 25 July 2024.

Pending final disposal of the appeal by the Hon'ble High Court, considering the provisions of Ind AS 37 'Provisions, Contingent Liabilities and Contingent Assets' and material accounting policies of the Company, provision has been updated by interest to ' 38.59 crore (31 March 2023: ' 38.42 crore) (included at (a)(i) above) and an amount of ' 1,870.55 crore (31 March 2023: ' 2,431.04 crore) has been considered as contingent liability. Further, the amount deposited with Delhi high court has been reviewed during the year and as an abundant precaution, the amount deposited has been fully provided for, conservatively.

Also Refer Note 72 and 75.

(iv) (a) Provision for Mine closure obligation represents Company's obligations for land reclamation and decommissioning of structure consist of spending at mines in accordance with the guidelines from Ministry of Coal, Government of India. The Company estimates its obligations for mine closure, site restoration and decommissioning based on the detailed calculation and technical assessment of the amount and timing of future cash spending for the required work and provided for as per approved mine closure plan. Accordingly, a provision amounting to ' 494.01 crore (31 March 2023: ' 323.80 crore) has since been provided for. (Refer material accounting policy C.6.2)

(b) Provision for Expenditure incurred on removal of mine waste materials (overburden) necessary to extract the coal reserves is referred to as stripping cost. The Company has to incur such expenses over the life of the mine as technically estimated. Cost of stripping is charged on technically evaluated average stripping ratio at each mine with due adjustment for stripping activity asset and ratio-variance account after the mines are brought to revenue. Net of the balances of stripping activity asset and ratio variance at the Balance Sheet date is shown as 'Stripping activity adjustment' under the head 'Non-current assets/Non-current provisions' as the case may be, and adjusted as provided in the CERC Tariff Regulations. Accordingly, a provision amounting to ' 603.60 crore (31 March 2023: ' 611.88 crore) has since been provided for. (Refer material accounting policy C.6.1)

v)    In respect of provision for cases under litigation, outflow of economic benefits is dependent upon the final outcome of such cases.

vi)    In all these cases, outflow of economic benefits is expected within next one year.

vii)    Sensitivity of estimates on provisions:

The assumptions made for provisions relating to current period are consistent with those in the earlier years. The assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood could alter in next financial year. It is impracticable for the Company to compute the possible effect of changes in assumptions and estimates used in recognizing these provisions.

viii)    Contingent liabilities and contingent assets

Disclosure with respect to claims against the Company not acknowledged as debts and contingent assets are made in Note 75.

64.    Disclosure as per Ind AS 38 'Intangible Assets'

Research expenditure recognised as expense in the Statement of Profit and Loss during the year is ' 99.44 crore (31 March 2023: ' 233.48 crore).

65.    Disclosure as per Ind AS 106, 'Exploration for and Evaluation of Mineral Resources'

A. Oil and gas exploration activities

The Company has joint arrangements with others for operations in the nature of joint operations. The Company recognizes, on a line-by-line basis its share of the assets, liabilities and expenses of these joint operations as per the terms and conditions of respective arrangements.

All exploration costs incurred in drilling and equipping exploratory and appraisal wells, cost of drilling exploratory type stratigraphic test wells are initially capitalized as 'Exploratory wells-in-progress' under 'Intangible assets under

development' till the time these are either transferred to oil and gas assets when a well is ready for commercial production or expensed as exploration cost (including allocated depreciation) as and when determined to be dry or of no further use, as the case may be. Costs of exploratory wells are not carried over unless it could be reasonably demonstrated that there are indications of sufficient quantity of reserves and sufficient progress is being made in assessing the reserves and the economic & operating viability of the project. All such carried over costs are subject to review for impairment.Cost of surveys and prospecting activities conducted in the search of oil and gas are expensed in the year in which these are incurred.

(i) The Company along-with some public sector undertakings had entered into Production Sharing Contracts (PSCs) with GOI for three oil exploration blocks namely KG-OSN-2009/1, KG-OSN-2009/4 and AN-DWN-2009/13 under VIII round of New Exploration Licensing Policy (NELP VIII) with 10% participating interest (PI) in each of the blocks.

In the case of Block AN-DWN-2009/13 and KG-OSN-2009/1, Oil and Natural Gas Corporation Ltd. (ONGC) was the operator and the Company along-with the consortium partners have relinquished both the blocks to Directorate General of Hydrocarbons (DGH).

crore) has been made towards NTPC's share as per arbitration decision given in favor of a contractor of the block. Aginst this, an amount of ' 13.65 crore has been deposited in honourable Delhi high court during the year. NTPC filed a writ petition under section 34 of Arbitration and Conciliation Act, 1996 in this matter before Hon'ble Delhi High Court which is yet to be disposed.

For the year ended 31 March 2024 and 31 March 2023, there are no income and operating/investing cash flow from exploration activities. The value of assets reported above is based on statement received from the operator in the earlier years.

(iii) The Company had entered into production sharing contracts (PSC) with GOI for exploration block namely CB-ONN-2009/5 VIII round of New Exploration Licensing Policy (NELP VIII) with 100% participating interest (PI) in the block.

MWP for the block has been completed. No oil or gas of commercial value was observed in any of the wells. Accordingly, the block has been relinquished to DGH, GOI.

For the year ended 31 March 2024 and 31 March 2023, there are no income / expense and operating/investing cash flow from exploration activities, except an amount of '0.08 crore paid during the year to the operator towards license fee.

For exploration activities in block KG-OSN-2009/4 DGH has agreed for drilling of one well and have instructed to carry out airborne Full Tensor Gravity Gradiometer (FTG) survey in conditionally & partial cleared area. ONGC has completed drilling of one well. Airborne Full Tensor Gravity Gradiometer (FTG) survey work is also completed. The Company along-with the consortium partners has decided to relinquish the block and Oil and Natural Gas Corporation Ltd. (ONGC), the operator, has submitted an application to Directorate General of Hydrocarbons (DGH) in this regard, in the earlier years.

(ii) Exploration activities in the block AA-ONN-2003/2 were abandoned in January 2011 due to unforeseen geological conditions and withdrawal of the operator. Attempts to reconstitute the consortium to accomplish the residual exploratory activities did not yield result. In the meanwhile, Ministry of Petroleum & Natural Gas, GoI demanded in January 2011 the cost of unfinished minimum work programme from the consortium with NTPC's share being USD 7.516 million. During the year, provision in this respect has been updated to ' 99.49 crore from ' 90.79 crore along-with interest. The Company has sought waiver of the claim citing force majeure conditions at site leading to discontinuation of exploratory activities.

The Company has accounted for expenditure of ' 8.70 crore (31 March 2023: ' (21.37) crore) towards updation of liabilities relating to MWP and other liabilities of M/s Geopetrol International, the operator to complete the winding up activities of the Block. The Company's share in the assets and liabilities are as under:

Provision of ' 6.07 crore as at 31 March 2024 (31 March 2023: ' 6.07 crore) has been made as at the balance sheet date, towards estimated obsolescence in the inventory.

For the year ended 31 March 2024 and 31 March 2023, there are no income, expenses, operating and investing cash flows from exploration activities.

B. Coal mining exploration activities

Exploration and evaluation assets comprise capitalized costs which is generally the expenditure incurred associated with finding the mineral by carrying out topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling, expenditure for activities in relation to evaluation of technical feasibility and commercial viability, acquisition of rights to explore etc. Exploration and evaluation expenditure incurred after obtaining the mining right or the legal right to explore are capitalized as exploration and evaluation assets under 'Intangible assets under development' and stated at cost less impairment if any. Exploration and evaluation assets are assessed for impairment indicators at least annually. Once the proved reserves are determined and development of mine/project is sanctioned, Exploration and evaluation assets are transferred to 'Development of Coal Mines' under 'Capital Work in Progress'. However, if proved reserves are not determined, exploration and evaluation asset is derecognized. Exploration and evaluation expenditure incurred prior to obtaining the mining right or the legal right to explore are expensed as and when incurred.

(i) The Company has started coal production from five captive mines i.e Pakri-Barwadih, Dulanga, Talaipalli, Chatti-Bariatu and Kerandari. During the year, Mine Development Operator (MDO) has been appointed for Badam Mines. Pakri Barwadih was declared commercial w.e.f. 1 April 2019 and about 16.31 MMT coal was extracted during the current year. Dulanga was declared commercial w.e.f. 1 October 2020 and 7.00 MMT coal was extracted during the current year. Talaipalli was declared commercial w.e.f. 1 October 2023 and 7.54 MT of coal was extracted during the year. Chatti-Bariatu , Kerandari and Badam mines are under development stage and expenditure incurred at these mines are disclosed in Note 3 - Capital work in progress under 'Development of coal mines'. During the year 3.30 MMT of coal was extracted from Chatti-Bariatu and 0.235 MMT of coal from Kerendari.

In respect of Talaipalli coal mine, there was a delay of 22.5 months in the commecial declaration of the mine. The revised Mining plan for Talaipalli Coal Mine, as recommended by CMPDIL was approved by CCO (Coal Controller Organization) on 26 September 2023. The Company has filed a petition for determination of tariff for the coal mine and condoning the delay as provided in Regulation 22 of the CERC (Terms and Conditions of Tariff) (Second Amendment) Regulations 2021, which is yet to be disposed off.

(ii) Surrendered coal blocks- Banai,Bhalumuda and Mandakini-B

Due to geo-mining constraints and other related issues NTPC surrendered Banai and Bhalumuda blocks to MoC on 26.12.2020. The Company expects that whenever these two coal blocks are allotted to any other company, the cost incurred towards exploration and GR at these mines would be reimbursed from the new allocatee through MOC as per past experience of the Company. Keeping in view the above, an amount of ' 124.00 crore (31 March 2023: ' 124.00 crore) has been accounted as recoverable and included under Note-19- 'Current assets - Other financial assets'. These coal blocks have been allotted to another entity in the commercial coal mine auction notified by MoC. Execution of coal mine development and production agreement between MoC and the entity is in progress. Subsequent to execution of the agreement, the recovery of the above amount from the new allottee shall be initiated by MoC before issuance of formal vesting order for which the Company has requested MoC for the same.

Since mine development activities could not be proceeded due to various issues at Mandakini-B coal block, the Company has approached Ministry of Coal on 26 December 2020 for surrendering these blocks, with a request for consideration of reimbursement of expenses incurred by the Company. The Company expects that whenever these two coal blocks are allotted to any other company, the cost incurred towards exploration and GR would be reimbursed from the new allocatee through MOC as per past experience of the Company. Keeping in view the above, an amount of ' 56.47 crore (31 March 2023: ' 56.47 crore) has been accounted as recoverable and included under Note-19 'Current assets -Other financial assets'.

MoC has encashed the BG (Performance Security) of ' 168.00 crore on 22 March 2021, submitted by the Company for Mandakini-B coal block, citing delay in achieving of the milestones of efficiency parameters which were beyond the control of the Company. The Company approached MoP to take up the matter in Alternate Mechanism for Resolution of CPSE Disputes (AMRCD). Pending resolution of the dispute through AMRCD, the amount of BG encashed by MOC has been disclosed as recoverable from MOC under 'Claims recoverable' in Note-19-'Current assets-Other financial assets'. This issue is regularly being taken up with MoC by the Company and MoP for early settlement.

The Coal Block Development and Production Agreement (CBDPA) signed by the Company with MOC is silent about the recoverability of expenditure incurred in case of termination of the CBDPA. Moreover, the fresh auction / allocation of mines by MOC may also take substantial time and is dependent upon the coal demand-supply scenario of the country in the days to come. Considering the uncertainty involved on the recoverability of the amounts in respect of Banai, Bhalamuda and Mandakini-B coal blocks, the amount disclosed as claims recoverable has since been fully provided for. Further, the balance expenditure incurred at these blocks which may not be recovered has also been provided for fully (Refer Note 6- 'Non-current assets - Intangible assets under development').

66. Disclosure as per Ind AS 108 'Operating Segments'

A. General Information

The Company has two reportable segments, as described below, which are the Company's strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker (CODM) reviews internal management reports on at least a quarterly basis.

Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate expenses, finance costs, income tax expenses and corporate income that are not directly attributable to segments.

Revenue directly attributable to the segments is considered as segment revenue. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as segment expenses.

Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, Capital Wok in Progress, intangible assets other than goodwill and intangible assets under development.

Segment assets comprise property, plant and equipment, intangible assets, capital work in progress, intangible assets under development, advances for capital expenditures, trade and other receivables, inventories and other assets that can be directly or reasonably allocated to segments. For the purpose of segment reporting, property, plant and equipment have been allocated to segments based on the extent of usage of assets for operations attributable to the respective segments. Unallocated assets comprise investments, income tax assets, corporate assets and other assets that cannot reasonably be allocated to segments.

Segment liabilities include all operating liabilities in respect of a segment and consist principally of trade payable, payable for capital expenditure and other payables, provision for employee benefits and other provisions. Unallocated liabilities comprise equity, income tax liabilities, loans and borrowings and other liabilities and provisions that cannot reasonably be allocated to segments.

The following summary describes the operations in each of the Company's reportable segments:

Generation of energy : Generation and sale of bulk power to State Power Utilities.

Others : It includes providing consultancy, project management and supervision, energy trading, oil and gas exploration and coal mining.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Company's Board. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

Exploration and evaluation activities were taking place at under ground mine area/dip side area (North west quarry) of PB block which has since been completed and capitlised.

For the year ended 31 March 2024 and 31 March 2023, there are no income, expenses and operating cash flows from coal exploration activities. Cash flows from investing activities for the year ended 31 March 2024 is (-) ' 85.02 crore (31 March 2023: ' (50.47) crore)

(iv)    In respect of captive mines, book stock of coal is considered in the accounts where the variance between book stock and measured stock is upto +/- 5% and in cases where the variance is beyond +/- 5% the measured stock is considered.

(v)    The Company had incorporated a wholly owned subsidiary, in the name of 'NTPC Mining Limited' (NML) on 29 August 2019, for taking up coal mining business. The Board of Directors of the Company has approved the hiving-off its coal mining business, consisting of 6 coal mines of the Company to NML at book value, through a business transfer agreement (BTA) dated 17 August 2023. The BTA shall become effective upon completion of the conditions precedent mentioned in the BTA.The transfer is yet to take place as at 31 March 2024.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, unbilled revenue, loans, cash and cash equivalents and deposits with banks and financial institutions.

Trade receivables & unbilled revenue

The Company primarily sells electricity to bulk customers comprising mainly state utilities owned by State Governments. The Company has a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). The TPAs were signed among the Govt. of India, RBI and the individual State Governments subsequent to the issuance of the One Time Settlement Scheme of SEBs dues during 2001-02 by the GOI, which were valid till October 2016. Govt of India subsequently approved the extension of these TPAs for another period of 10 years. Most of the States have signed these extended TPAs and signing is in progress for the balance states.

CERC Tariff Regulations allow payment against monthly bill towards energy charges within a period of forty five days from the date of bill and levy of surcharge @ 18% p.a. on delayed payment beyond forty five days. GOI has notified Electricity (Late Payment Surcharge) Rules, 2021 on 22 February 2021.These rules envisage that base rate of LPSC to be considered as SBI one year MCLR, as on 1 April of the financial year, plus five percent. The rate of LPSC shall be increased by 0.5 percent for every month of delay, provided that the LPSC shall not be more than 3 percent higher than the base rate at any time.

A default occurs when in the view of management there is no significant possibility of recovery of receivables after considering all available options for recovery.

As per the provisions of the TPA, the customers are required to establish LC covering 105% of the average monthly billing of the Company for last 12 months. The TPA also provided that if there is any default in payment of current dues by any State Utility, the outstanding dues can be deducted from the State's RBI account and paid to the concerned CPSU. There is also provision of regulation of power by the Company in case of non payment of dues and non-establishment of LC.

These payment security mechanisms have served the Company well over the years. The Company has not experienced any significant impairment losses in respect of trade receivables in the past years. Since the Company has its power stations as well as customers spread over various states of India, geographically there is no concentration of credit risk.

Unbilled revenue primarily relates to the Company's right to consideration for sale effected but not billed at the reporting date and have substantially the same risk characteristics as the trade receivables for the same type of contracts.

Investments

The Company limits its exposure to credit risk by investing in only Government of India Securities, State Government Securities and other counterparties have a high credit rating. The management actively monitors the interest rate and maturity period of these investments. The Company does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Loans

The Company has given loans to employees, subsidiary companies, joint venture companies and other parties. Loans to the employee are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company. The loan provided to group companies are collectible in full and risk of default is negligible. Loan to APIIC is against a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

Cash and cash equivalents

The Company held cash and cash equivalents of ' 197.16 crore (31 March 2023: ' 3.13 crore). The cash and cash equivalents are held with banks with high rating.

Balances with banks and financial institutions, other than cash and cash equivalents

The Company held balances with banks and financial institutions, including earmarked balances, of ' 4,403.34 crore (31 March 2023: ' 3,738.60 crore). In order to manage the risk, Company places deposits with only high rated banks/ institutions.

(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was'

(ii)    Provision for expected credit losses

(a)    Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.

(b)    Financial assets for which loss allowance is measured using life-time expected credit losses as per simplified approach

The Company has customers (State government utilities) with capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in respect of trade receivables and unbilled revenue.

(iii)    Ageing analysis of trade receivables

Refer Note 15(d)

Based on historic default rates, the Company believes that no impairment allowance is necessary in respect of any other financial assets as the amounts of such allowances are not significant.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has an appropriate liquidity risk management framework for the management of short, medium and longterm funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company's Treasury department is responsible for managing the short-term and long-term liquidity requirements of the Company. Short-term liquidity situation is reviewed daily by the Treasury department. The Board of directors has established policies to manage liquidity risk and the Company's Treasury department operates in line with such policies. Any breaches of these policies are reported to the Board of Directors. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a month, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

As part of the CERC Regulations, tariff inter-alia includes recovery of capital cost. The tariff regulations also provide for recovery of energy charges, operations and maintenance expenses and interest on normative working capital requirements. Since billing to the customers are generally on a monthly basis, the Company maintains sufficient liquidity to service financial obligations and to meet its operational requirements.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. All such transactions are carried out within the guidelines set by the risk management committee.

Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other than entity's functional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The gain/(loss) on account of exchange rate variations on all foreign currency loans and foreign currency monetary items is recoverable from beneficiaries considering the CERC Tariff Regulations. Therefore, currency risk in respect of such exposure would not be very significant.

Sensitivity analysis

Since the impact of strengthening or weakening of INR against USD, EURO, JPY and other currencies on the statement of profit and loss would not be very significant; therefore, sensitivity analysis for currency risk is not disclosed.

Embedded derivatives

Certain contracts of the Company for construction of power plants with vendors awarded through International Competitive Bidding are denominated in a third currency i.e. a currency which is not the functional currency of any of the parties to the contract. The Company has awarded the above contracts without any intention to enter into any derivative contract or to leverage/ take position and without any option/intention to net settle at any point of time during the tenure of the contract. The Company has not separately recognised the foreign currency embedded derivative and has not designated the entire hybrid contract at fair value through profit or loss considering the same as not practicable and absence of a reliable valuation model.

b) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Ind AS. An explanation of each level follows underneath the table.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from prevailing market transactions and dealer quotes of similar instruments.

There have been no transfers in either direction for the years ended 31 March 2024 and 31 March 2023. c) Valuation technique used to determine fair value:

Specific valuation techniques used to determine fair value of financial instruments include:

i)    For financial instruments other than at ii), iii) and iv) - the use of quoted market prices.

ii)    For investments in mutual funds - Closing NAV is used.

iii)    For financial liabilities (vendor liabilities, debentures/bonds, foreign currency notes, domestic/foreign currency loans): Discounted cash flow; appropriate market borrowing rate of the entity as of each balance sheet date used for discounting.

iv)    For financial assets (employee loans) - Discounted cash flow; appropriate market rate (SBI lending rate) as of each balance sheet date used for discounting.

The carrying amounts of current trade receivables, current trade payables, payable for capital expenditure, investment in subsidiary and joint venture companies, cash and cash equivalents and other financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The carrying values for finance lease receivables approximates the fair value as these are periodically evaluated based on credit worthiness of customer and allowance for estimated losses is recorded based on this evaluation. Also, carrying amount of claims recoverable approximates its fair value as these are recoverable immediately.

The fair values for loans, borrowings, non-current trade payables and payable for capital expenditure were calculated based on cash flows discounted using a current discount rate. They are classified at respective levels based on availability of quoted prices and inclusion of observable/non observable inputs.

69. Capital Management

The Company's objectives when managing capital are to:

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

-    maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as returns from operating activities divided by total shareholders' equity deployed in operating activities. The Board of Directors also monitors the level of dividends to equity shareholders in line with the dividend distribution policy of the Company.

Under the terms of major borrowing facilities, the Company is required to comply with the following financial covenants:

(i) Total liability to net worth ranges between 2:1 to 3:1.(ii) Ratio of EBITDA to interest expense shall not at any time be less than 1.75 : 1.(iii) Debt service coverage ratio not less than 1.10:1 (in case of foreign currency borrowings).

There have been no breaches in the financial covenants of any interest bearing borrowings.

The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.

The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of noncurrent borrowings (including current maturities and interest accrued there on) and current borrowings less cash and cash equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of the reporting period was as follows:

70. Disclosure as per Ind AS 114, 'Regulatory Deferral Accounts'

(i) Nature of rate regulated activities

The Company is mainly engaged in generation and sale of electricity. The price to be charged by the Company for electricity sold to its beneficiaries is determined by the CERC which provides extensive guidance on the principles and

methodologies for determination of the tariff for the purpose of sale of electricity. The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return.

This form of rate regulation is known as cost-of-service regulations which provide the Company to recover its costs of providing the goods or services plus a fair return.

(ii) Recognition and measurement

(a)    As per the CERC Tariff Regulations, any gain or loss on account of exchange risk variation during the construction period shall form part of the capital cost till the declaration of Commercial Operation Date (COD) to be considered for calculation of tariff. The CERC during the past period in tariff orders for various stations has allowed exchange differences incurred during the construction period in the capital cost. Accordingly, exchange differences arising during the construction period is within the scope of Ind AS 114.

Further, any loss or gain on account of exchange differences towards interest payment and loan repayment in respect of the foreign currency loans taken for construction of projects shall be recoverable from/payable to beneficiaries on actual payment basis, as per the said Regulations. Accordingly, such exchange differences are also within the scope of Ind AS 114.Any loss or gain on account of foreign currency exchange differences towards interest payment and loan repayment corresponding to the foreign currency loans taken for construction of the Stations shall be recoverable from/payable to beneficiaries on actual payment basis, as per the said regulation'

In view of the above, exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as 'Regulatory deferral account debit/credit balance' by credit/debit to 'Net Movements in Regulatory deferral account balances' and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries. Accordingly, an amount of (-) ' 1,262.44 crore for the year ended as at 31 March 2024 has been accounted for as 'Regulatory deferral account debit balance' (31 March 2023: (-) ' 960.93 crore accounted as 'Regulatory deferral account debit balance'). Further, an amount of ' 51.20 crore (31 March 2023: ' 52.01 crore) has been realized/recognized during the year.

(b)    Revision of pay scales of employees of PSEs w.e.f. 1 January 2017 has been implemented based on the guidelines issued by Department of Public Enterprises (DPE). The guidelines provide payment of superannuation benefits @ 30% of basic + DA to be provided to the employees of CPSEs which includes gratuity at the enhanced ceiling of ' 0.20 crore from the existing ceiling of ' 0.10 crore. As per Proviso 8(3) of Terms and Conditions of Tariff Regulations 2014 applicable for the period 2014-19, truing up exercise in respect of Change in Law or compliance of existing law will be taken up by CERC. The increase in gratuity limit from ' 0.10 crore to ' 0.20 crore falls under the category of 'Change in law' and a regulatory asset has been created. The Payment of Gratuity Act, 1972 has since been amended and the ceiling has been increased to ' 0.20 crore.

Considering the methodology followed by the CERC for allowing impact of the previous pay revision, various tariff orders issued by the CERC under Regulations, 2014 and the above-mentioned provision related to the change in law of CERC Tariff Regulations, 2014, a regulatory asset has been created upto 31 March 2019 (Regulatory deferral account debit balance) towards the increase in O&M expenditure due to the pay revision. This was taken up with CERC through truing up tariff petition. CERC has been allowing the same progressively and during the year, the expenditure has been allowed in respect of few stations and accordingly an amount of ' 108.71 crore (31 March 2023: ' 94.56 crore) has been adjusted and an amount of ' 6.56 crore (31 March 2023: ' 0.49 crore) has been reversed. Balance orders are expected in the coming years.

(c)    CERC Regulations provide that deferred tax liability upto 31 March 2009 shall be recovered from the beneficiaries as and when the same gets materialized. Further, for the period commencing from 1 April 2014, CERC Tariff Regulations provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. The Company has recognised a regulatory deferral account debit balance for such deferred tax liabilities (net) in the financial statements. Regulatory deferral account debit balance for deferred tax liability for the period commencing from 1 April 2014 will be reversed in future years when the related deferred tax liability forms part of current tax. Accordingly, an amount of ' 2,808.05 crore (31 March 2023: ' 1,650.50 crore) for the year ended 31 March 2024 has been accounted for as 'Regulatory deferral account debit balance'.

(d)    The petition filed by the Company before CERC for reimbursement of the expenditure on transportation of ash, was favourably considered by CERC vide order dated 5 November 2018 and it was allowed to reimburse the actual

additional expenditure incurred towards transportation of ash in terms of MOEF notification under change in law, as additional O&M expenses, w.e.f. 25 January 2016 subject to prudence check. Keeping in view the above, regulatory asset was created towards ash transportation expenses in respect of stations where there was shortfall in revenue from sale of ash over and above ash transportation expenses till 2021-22. CERC vide order dated 28 October 2022 has allowed provisional monthly billing of Ash transportation expenditure from 1 April 2022 onwards and reimbursement of expenditure already incurred from 1 April 2019 till 31 March 2022. An amount of ' 4.75 crore (31 March 2023: ' 90.18 crore) has been adjusted/realised based on orders received from CERC during the year relating to period prior to 1 April 2019. Balance amount of ' 68.36 crore (31 March 2023: ' 73.11 crore) shall be reversed / adjusted upon receipt of tariff orders / true-up orders from CERC.

(iii) Risks associated with future recovery/reversal of regulatory deferral account balances:

(i) demand risk due to changes in consumer attitudes, the availability of alternative sources of supply(ii) regulatory risk on account of changes in regulations and submission or approval of a rate-setting application or the entity's assessment of the expected future regulatory actions(iii) other risks including currency or other market risks, if any

V.    Transaction price allocated to the remaining performance obligations

Performance obligations related to sale of energy:

Revenue from sale of energy is accounted for based on tariff rates approved by the CERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations, where the tariff rates are yet to be approved/items indicated provisional by the CERC in their orders, provisional rates are adopted considering the applicable CERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the beneficiary and is measured through a regular review of usage meters. Beneficiaries are billed on a periodic and regular basis. Therefore, transaction price to be allocated to remaining performance obligations cannot be determined reliably for the entire duration of the contract.

Performance obligations related to other contracts:

For rest of the contracts, transaction price for remaining performance obligations amounts to ' 484.21 crore (31 March 2023: ' 1,082.32 crore) which shall be received over the contract period in proportion of the work performed/services provided by the Company.

VI.    Practical expedients applied as per Ind AS 115:

a.    The company has not disclosed information about remaining performance obligations that have original expected duration of one year or less and where the revenue recognised corresponds directly with the value to the customer of the entity's performance completed to date.

b.    The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company has not adjusted any of the transaction prices for the time value of money. The impact of subsequent modifications are duly recognized in the Statement of profit and loss.

VII.    The Company has not incurred any incremental costs of obtaining contracts with a customer and therefore, not recognised an asset for such costs.

72. Disclosure as per Ind AS 116 'Leases'

(A) Company as Lessee

(i) The Company's significant leasing arrangements are in respect of the following assets:

(a)    Premises for residential use of employees, offices and guest houses/ transit camps on lease which are not noncancellable and are usually renewable on mutually agreeable terms. The company generally incurs amount on improvements which are significant to the respective lease and hence the cancellable period of the lease during which the company intends to continue considering the past experience / practice, is considered for the purpose of determining the lease period.

(b)    The Company has taken electrical vehicles on operating lease for a period of six years, which can be further extended at mutually agreed terms. Lease rentals are subject to escalation of 10% per annum.

(c)    A helicopter on wet lease basis.

(d)    The Company has taken certain vehicles (other than electrical) on lease for a period of four years, which can be further extended at mutually agreed terms. There are no escalations in the lease rentals as per terms of the agreement. However, the Company has purchase option for such vehicles at the end of the lease term.

(e)    The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years after which it was to be transferred to the Company at 1/-. Refer Note no. 63 (iii)(b).

(f)    The Company acquires land on leasehold basis for a period generally ranging from 25 years to 99 years from the government authorities which can be renewed further based on mutually agreed terms and conditions. The leases are non cancellable. These leases are capitalised at the present value of the total minimum lease payments to be paid over the lease term. Future lease rentals are recognised as 'Lease obligations' at their present values. The Right-of-use land is amortised considering the material accounting policies of the Company.

In respect of claims made by various State/Central Government departments/Authorities towards building permission fee, penalty on diversion of agricultural land to non-agricultural use, non agricultural land assessment tax, water royalty, other claims, etc. and by others, a contingent liability of the above amounts has been estimated.

(v) Possible reimbursement in respect of (i) to (iii) above

In respect of claims included in (i) and (ii) above, payments, if any, by the Company on settlement of the claims would be eligible for inclusion in the capital cost for the purpose of determination of tariff as per CERC Tariff Regulations subject to prudence check by the CERC. In case of (iii), the estimated possible reimbursement by way of recovery through tariff as per Regulations is ' 3,293.39 crore (31 March 2023: ' 4,225.77 crore).

(iii) CERC Tariff Regulations provide for levy of Late Payment Surcharge by generating company in case of delay in payment by beneficiaries beyond specified number of days from the date of presentation of bill. However, in view of significant uncertainties in the ultimate collection of the said surcharge from some of the beneficiaries against partial bills as estimated by the management, an amount of ' 491.79 crore as on 31 March 2024 (31 March 2023: ' 534.63 crore) has not been recognised.

Disputed income tax/sales tax/excise and other tax matters are pending before various Appellate Authorities. Many of these matters were adjudicated in favour of the Company but are disputed before higher authorities by the concerned departments. In respect of these disputed cases, the Company estimate possible reimbursement of ' 431.85 crore (31 March 2023: ' 142.97 crore). The amount paid under dispute/adjusted by the authorities in respect of the cases amounts to ' 562.69 crore (31 March 2023: ' 762.45 crore).

Others include contingent liabilities disclosed on an estimated basis relating to likely claims that may arise in connection with abandoned oil exploration activities, land use agreements, service tax reimbursements, stamp duty charges arising out of merger, transfer of operations of subsidiary, etc.

Some of the beneficiaries have filed appeals against the tariff orders of the CERC. The amount of contingent liability in this regard is not ascertainable.

In respect of the disputed cases at sl.no.(ii) above, the Company estimate possible reimbursement of ' 1,128.85 crore (31 March 2023: ' 1,090.46 crore).

B. Contingent assets

(i)    While determining the tariff for some of the Company's power stations, CERC has disallowed certain capital expenditure incurred by the Company. The Company aggrieved over such issues has filed appeals with the Appellate Tribunal for Electricity (APTEL)/Hon'ble Supreme Court against the tariff orders issued by the CERC. Based on past experience, the Company believes that a favourable outcome is probable. However, it is impracticable to estimate the financial effect of the same as its receipt is dependent on the outcome of the judgement.

(ii)    Coal companies have disputed some of the grade slippages confirmed by CIMFR (third party sampler) in favour of the Company and have approached referee challenging the CIMFR results. The referee results are binding on both the parties. Considering the uncertainty involved in the outcome of referee results, the Company has not recognised claims arising out of favourable CIMFR results pending receipt of referee results challenged by the coal companies, considering the provisions of Ind AS 37. It is impracticable to estimate the financial effect of the same as its receipt is dependent on the outcome of the referee results which is wholly not within the control of the Company. Not withstanding the above, the outcome of the referee results shall be dealt with as per the provisions of CERC Tariff Regulations.

e)    The Company has commitments of ' 2,957.47 crore (31 March 2023: ' 2,931.63 crore) towards further investment in the subsidiary companies as at 31 March 2024.

f)    The Company has commitments of ' 1,503.71 crore (31 March 2023: ' 1,143.96 crore) towards further investment in the joint venture entities as at 31 March 2024.

g)    The Company has commitments of bank guarantee of 0.50% of total contract price to be undertaken by NTPC-BHEL Power Projects Private Ltd. (a joint venture company) to a cumulative amount of ' 75.00 crore (31 March 2023: ' 75.00 crore).

h)    The Company has provided corporate guarantee for an amount of ' 237.60 crore (31 March 2023: ' 237.60 crore) for Patratu Vidyut Utpadan Nigam Ltd. (PVUNL) (a subsidiary company) in favor of Axis Bank for sanction of bank guarantee issued to Ministry of Coal for performance security against the milestones of Banhardih coal mine development of PVUNL.

i)    The Company has agreed to provide borrowing support to NTPC Renewable Energy Limited (subsidiary of NTPC Green Energy Limited which is a wholly owned subsidiary of the Company) upto ' 6,000.00 crore (31 March 2023: ' 6,000.00 crore) in the form of long term / short term loan, bank guarantee, corporate guarantee / comfort letter to banks, etc., in case it is required by NTPC Renewable Energy Limited.

j)    The Company has agreed to provide sponsor undertaking to lenders for additional term loan upto ' 1,908.38 crore (31 March 2023: ' 1,908.38 crore) for implementation of various projects of Hindustan Urvarak and Rasayan Limited, a Joint Venture Company.

k)    The Company has provided corporate guarantee to the extent of JPY 15 Billion equivalent to ' 836.40 crore (31 March 2023 : ' Nil) for NTPC Renewable Energy Limited (subsidiary of NTPC Green Energy Limited which is a wholly owned subsidiary of the Company) in favour of JBIC (Japan Bank for International Co-operation) for the loan extended with a door to door maturity of 15 years.

l)    Outstanding bank guarantees amounting to ' 132.80 crore (31 March 2023: ' 570.10 crore) have been issued by banks on behalf of the Company in favour of various State and Central authorities (beneficiaries) mainly towards performance guarantee for completion of various RE projects. These RE projects were transferred to NGEL, a wholly owned subsidiary of the Company, as at 28 February 2023 pursuant to a BTA entered in the previous year. These bank guarantees are being serviced by the Company till the expiry of respective bank guarantees.

m)    Company's commitment towards the minimum work programme in respect of oil exploration activities of joint operations has been disclosed in Note 65.

xvi)    The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xvii)    The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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