3.1 Material accounting policy information

a. Property, Plant and Equipment (PPE)

> All items of property, plant and equipment,
including freehold land, are initially recorded at
cost. Subsequent to initial recognition, property,
plant and equipment other than freehold land are
measured at cost less accumulated depreciation
and any accumulated impairment losses.
Freehold land has an unlimited useful life and
therefore is not depreciated.

> Capital work-in-progress is stated at cost, net of
accumulated impairment loss, if any. Other Indirect
expenses incurred relating to project, net of income
earned during the project development stage
prior to its intended use, are considered as
pre-operative expenses and disclosed under Capital
Work-in-Progress.

> Subsequent additions to the assets after
capitalization are accounted for at cost. Cost includes
purchase price (net of trade discount & rebates) and
any directly attributable cost of bringing the asset
to its working condition for its intended use and
for qualifying assets, borrowing costs capitalised
in accordance with Ind AS 23. All other repair and
maintenance costs are recognised in the statement
of profit and loss as incurred.

Depreciation :

> Depreciation is recognised based on the cost
of assets (other than freehold land) less their
residual values over their useful lives, using the
straight-line method. The useful life of property,
plant and equipment is considered based on life
prescribed in schedule II to the Companies Act,
2013. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.

Derecognition :

> An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from
the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of
property, plant and equipment is determined as
the difference between the sales proceeds and the
carrying amount of the asset and is recognised in
the Statement of Profit and Loss.

b. Financial instruments

> Financial assets (except for trade receivables, which
are measured at transaction price) and financial
liabilities are initially measured at fair value.
Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value
of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities measured at fair value
through profit or loss are recognized immediately in
the Statement of Profit and Loss.

> An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by a Company entity are recognized at the
proceeds received, net of direct issue costs.

(a) Financial assets

Initial Recognition and measurement :

Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the marketplace (regular
way trades) are recognised on the trade date, i.e.,
the date that the Company commits to purchase or
sell the asset.

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.

) Classification and measurement of financial assets

a) Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost using the effective interest rate
method if these financial assets are held within
a business whose objective is to hold these
assets in order to collect contractual cash flows
and the contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest on
the principal amount outstanding.

b) Financial assets at fair value through other
comprehensive income (FVTOCI)

A financial asset is subsequently measured at
fair value through other comprehensive income
if both of the following criteria are met;

- it is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling
financial assets and

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

c) Financial assets at fair value through
profit & loss (FVTPL)

All financial assets that do not meet the criteria
for amortised cost or FVTOCI are measured at
FVTPL. Financial assets at FVTPL are measured
at fair value at the end of each reporting
period, with any gains or losses arising on
remeasurement recognised in profit or loss.
The net gain or loss recognised in profit or loss
incorporates any dividend or interest earned on
the financial asset.

i) Impairment of financial assets

The Company assesses at each date of balance
sheet whether a financial asset is impaired. Ind AS

109 requires expected credit losses to be measured
through a loss allowance. The Company recognises
lifetime expected losses for all contract assets and/
or all trade receivables that do not constitute a
financing transaction. For all other financial assets,
expected credit losses are measured at an amount
equal to the 12 month expected credit losses or at
an amount equal to the life time expected credit
losses if the credit risk on the financial asset has
increased significantly since initial recognition.

iii) Derecognition of financial assets

A financial asset is primarily derecognised when:

Ý the right to receive cash flows from the asset
have expired, or

Ý the Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash flows
in a transaction in which substantially all of the
risks and rewards of ownership of the financial
asset are transferred or in which the Company
neither transfers nor retains substantially all of
the risks and rewards of ownership and does
not retain control of the financial asset.

(B) Financial liabilities and equity instruments

i) Classification as debt or equity

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

ii) Financial liabilities

Initial recognition and measurement
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs.

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

Ý Financial liabilities at fair value through
profit or loss

Ý Financial liabilities at amortised cost (loans
and borrowings)

All financial liabilities are subsequently measured
at amortised cost using the effective interest
rate method. Gains and losses are recognised
in Statement of Profit and Loss when the
liabilities are derecognised as well as through the
effective interest rate (EIR) amortisation process.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
Statement of Profit and Loss.

Trade and other payables are recognised at
the transaction cost, which is its fair value,
and subsequently measured at amortised cost.
Similarly, interest bearing loans (inter corporate
deposits), trade credits and borrowings (including
bonds) are subsequently measured at amortised cost
using effective interest rate method. Trade credits
include Buyer's credit, Foreign Letter of Credit and
Inland Letter of Credit.

Financial liabilities measured at FVTPL include
financial liabilities held for trading and financial
liabilities designated upon initial recognition as
FVTPL. Financial liabilities are classified as held
for trading if these are incurred for the purpose of
repurchasing in the near term. Financial liabilities
at FVTPL are stated at fair value, with any gains or
losses arising on remeasurement recognised in the
Statement of Profit and Loss

iii) Derecognition of Financial Liability

The Company derecognises financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
An exchange with a lender of debt instruments
with substantially different terms is accounted
for as an extinguishment of the original financial
liability and the recognition of a new financial

liability. Similarly, a substantial modification of the
terms of an existing financial liability is accounted
for as an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognised and
the consideration paid and payable is recognised in
Statement of Profit and Loss.

c. Derivative financial instruments and hedge
accounting

Initial recognition and subsequent measurement:

The Company uses derivative financial instruments,
such as forward currency contracts, interest rate
swaps and forward commodity contracts, to hedge
its foreign currency risks, interest rate risks and
commodity price risks, respectively. Such derivative
financial instruments are initially recognised at fair
value on the date on which a derivative contract is
entered into and are subsequently re-measured at
fair value. Derivatives are carried as financial assets
when the fair value is positive and as financial
liabilities when the fair value is negative.

Any gains or losses arising from changes in the
fair value of derivatives are taken directly to the
statement of profit and loss, except for the effective
portion of cash flow hedges, which is recognised in
OCI and later reclassified to the statement of profit
and loss when the hedge item affects profit or loss
or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition
of a non-financial asset or non-financial liability.

At the inception of a hedge relationship, the
Company formally designates and documents the
hedge relationship to which the Company wishes to
apply hedge accounting and the risk management
objective and strategy for undertaking the hedge.

Hedges that meet the strict criteria for hedge
accounting are accounted for as described below

Cash flow hedges

The effective portion of the gain or loss on the
hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion
is recognised immediately in the statement of
profit and loss.

Amounts recognised in OCI are transferred to profit
or loss when the hedged transaction affects profit
or loss, such as when the hedged financial income or
financial expense is recognised or when a forecast
sale occurs. When the hedged item is the cost of
a non-financial asset or non-financial liability,
the amounts recognised as OCI are transferred
to the initial carrying amount of the non-financial
asset or liability.

If the hedging instrument expires or is sold,
terminated or exercised without replacement or
rollover (as part of the hedging strategy), or if its
designation as a hedge is revoked, or when the hedge
no longer meets the criteria for hedge accounting,
any cumulative gain or loss previously recognised in
OCI remains separately in equity until the forecast
transaction occurs or the foreign currency firm
commitment is met.

d. Inventories

Costs of inventories are determined on weighted
average basis. Cost includes cost of purchase and
other costs incurred in bringing the inventories to
their present location and condition. Unserviceable/
damaged stores and spares are identified and
written down based on technical evaluation.

e. Fair value measurement

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

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

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

(i) Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities;

(ii) Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable;

(iii) Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

At each reporting date, the Management analyses
the movements in the values of assets and liabilities
which are required to be remeasured or re-assessed
as per The Company's accounting policies. For the
purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.

f. Revenue recognition

Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those
goods or services.

Sale of Goods :

Revenue from sale of goods is recognised when the
goods are delivered and titles have passed, at which
time all the following conditions are satisfied:

Ý The Company has transferred to the

buyer the significant risks and rewards of
ownership of the goods;

Ý The amount of revenue can be

measured reliably; and

Ý it is probable that the economic benefits
associated with the transaction will flow
to the Company;

Ý there is no significant judgement involved while
evaluating the timing as to when customers
obtain control of promised goods and services.

Service concession arrangements :

The Company has entered into contract as a Advanced
Metering Infrastructure Service Provider (AMISP)
for supply, installation, operation and maintenance
of smart meters and related infrastructure used
to provide public service under "Design-Build-
Finance-Own- Operate-Transfer” (DBFOOT) basis.

These smart meters, including related infrastructure,
will be transferred to relevant authority at the end of
the terms of the contract. These arrangements are
accounted as per Ind AS 115, Appendix D- Service
Concession Arrangements ("SCA”).

In accordance with Appendix D of Ind AS
115, Service Concession Arrangements, the
Company recognizes the rights granted by these
arrangements as a financial asset to the extent that
it has an unconditional contractual right to receive
cash or another financial asset from the grantor
for the services it performs. These rights arise as
the Company performs the agreed-upon scope of
work related to the supply and installation phase
of the project.

The AMISP contract involves two separate
performance obligations: (a) the supply, installation,
integration, testing, and commissioning of the AMI
system, and (b) the operation, maintenance, and
support services post-installation. The allocation of
the transaction price to these obligations is to be
based on their relative standalone selling prices for
the purpose of revenue recognition.

Recognition and Measurement :

Financial assets are recognized at fair value upon
initial recognition. The asset is subsequently
measured at amortized cost using the effective
interest method. Interest income from these
financial assets arising from the Company's
principal revenue generating activities is
recognized in the statement of profit and loss
under the head Revenue from Operations.
During the supply and installation phase of the
smart metering infrastructure, the Company
recognizes construction costs as an expense
when incurred. Revenue related to supply and
installation is recognized over the period based
on the input cost method, and the contract
assets are recognized. The Company recognizes
financial assets as 'Receivables under Service
Concession Arrangements' to the extent that it has
an unconditional contractual right to receive cash
or another financial asset under the Agreement.
The fair value of future cash flows receivable under
the project have been initially recognized under the
head contract assets and carried at amortized cost
subsequently. Until the set-up of infrastructure

and supply, installation of meters, the 'Receivables
under Service Concession Arrangements' are a
contract asset. Post the completion of set-up of
infrastructure and supply, installation of meters,
these become a financial asset.

The Company accounts for services related to the
operation and maintenance of the smart metering
infrastructure as per the terms of the AMSIP
arrangement. Revenues from these services are
recognized over time according to the terms of
the agreement, reflecting the service obligations
undertaken by the Company.

The fair value of future cash flows receivable under
the above project have been initially recognized
under contract assets as 'Receivables under Service
Concession Arrangements' and carried at amortized
cost subsequently. Until the set-up of infrastructure
and supply, installation of meters, the 'Receivables
under Service Concession Arrangements'
are a contract asset. Post the completion of
set-up of infrastructure and supply, installation
of meters, these become a financial asset.
Interest on the contract assets/ financial assets
arising from the Company's principal or ancillary
revenue generating activities are classified as 'Other
operating revenue' in Statement of Profit and Loss.

Contractual Obligation to restore the infrastructure
to a specified level of serviceability

The company has a contractual obligation to
maintain the infrastructure to a specified level of
serviceability or to restore the infrastructure to
a specified condition before it is handed over to
the grantor of the SCA consequent to the right
available with the grantor under the agreement.
In the SCA under the financial asset model, such
costs are recognized in the period in which such
cost are actually incurred. Once the contract has
commenced, the treatment of income is recognized
as Revenue from operations under SCA in
accordance with the financial asset model using an
effective interest method. Revenue are recognized
in each period as and when services are rendered.
The Company recognizes revenue when it transfers
control over a product or performs service.

Contract Assets :

A contract asset is the right to consideration in
exchange for services transferred to the customer.

If the entity performs by transferring services to a
customer before the customer pays consideration
or before payment is due, a contract asset is
recognized for the earned consideration that is
conditional. Contract assets are transferred to
services concession agreement receivables when
the rights become unconditional. For AMISP
contracts, a contract asset is initially recognized
for revenue from supply and installation services as
the receipt of consideration is conditional on the
successful installation of the total agreed number
of smart meters. Upon completion of the supply
and installation of all the smart meters, or to the
extent of an unconditional contractual right to
receive cash or another financial asset under the
AMSIP Contract, the amount recognized as contract
assets is reclassified to 'Receivables under Service
Concession Arrangements' or 'Trade Receivable'.

Construction and Development of Infrastructure
Assets :

The Company's business operations includes in
construction and development of infrastructure
assets (transmission assets). Where the outcome
of the project cannot be estimated reasonably,
Revenue from contracts for such construction and
development activities is recognized on completion
of relevant activities under the contract and the
transfer of control of the infrastructure when all
significant risks and rewards of ownership in the
infrastructure assets are transferred to the customer .

Other Income :

Interest income from a financial asset is recognized
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future
cash receipts through the expected life of the
financial asset to that asset's net carrying amount
on initial recognition.

Financing component:

The Company receives advance payments from
customers for the setup and sale of customised
Sub-station and transmission line with a construction
lead time of 6 months after signing the contract and

receipt of payment. There is a significant financing
component for these contracts considering the
length of time between the customers' payment and
the transfer of the equipment, as well as the prevailing
interest rate in the market. As such, the transaction
price for these contracts is discounted, using the
interest rate implicit in the contract. This rate is
commensurate with the rate that would be reflected
in a separate financing transaction between the
Company and the customer at contract inception.
The Company applies the practical expedient for
short-term advances received from customers.
That is, the promised amount of consideration is not
adjusted for the effects of a significant financing
component if the period between the transfer of
the promised good or service and the payment is
one year or less.

g. Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of qualifying
assets, which are assets that necessarily take a
substantial period of time to get ready for their
intended use or sale, are added to the cost of
those assets, until such time as the assets are
substantially ready for their intended use or sale.
Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs. Interest income
earned on the temporary investment of specific
borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible
for capitalisation. All other borrowing costs are
recognised in the statement of profit and loss in the
period in which they are incurred.

h. Employee benefits

i) Defined benefit plans:

The Company has an obligation towards gratuity,
a defined benefit retirement plan covering eligible
employees through Group Gratuity Fund Scheme of
Life Insurance Corporation of India. The Company
accounts for the liability for the gratuity benefits
payable in future based on an independent actuarial
valuation carried out using Projected Unit Credit
Method considering discounting rate relevant to
Government Securities at the Balance Sheet Date.

Defined benefit costs in the nature of current and
past service cost and net interest expense or income
are recognized in the statement of profit and loss in
the period in which they occur. Actuarial gains and
losses on remeasurement is reflected immediately in
the balance sheet with a charge or credit recognised
in other comprehensive income in the period in which
they occur and is reflected immediately in retained
earnings and not reclassified to profit or loss.

ii) Defined contribution plan:

Payments to defined contribution retirement
benefit plans are recognised as an expense when
employees have rendered service entitling them to
the contributions.

iii) Compensated Absences:

Provision for Compensated Absences and its
classifications between current and non-current
liabilities are based on independent actuarial
valuation. The actuarial valuation is done as per the
projected unit credit method as at the reporting date.

iv) Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to
employees in respect of wages and salaries, annual
leave and sick leave in the period the related
service is rendered at the undiscounted amount
of the benefits expected to be paid in exchange
for that service. Liabilities recognised in respect
of short-term employee benefits are measured at
the undiscounted amount of the benefits expected
to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected
to be made by the Company in respect of services
provided by employees up to the reporting date.

i. Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a
period of time in exchange for consideration.

As a lessee

The Company recognises a right-of-use asset and
a lease liability at the lease commencement date
except for leases with a term of twelve months

or less (short-term leases) and low value leases.
For these short-term and low value leases, the
lease payments associated with these leases as an
expense on a straight-line basis over the lease term.

Right-of-use assets

The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located,
less any lease incentives received. The right-of-
use asset is subsequently depreciated using the
straight-line method from the commencement
date to the end of the lease term, unless the lease
transfers ownership of the underlying asset to the
Company by the end of the lease term or the cost of
the right-of-use asset reflects that the Company will
exercise a purchase option. In that case the right-of-
use asset will be depreciated over the useful life of
the underlying asset. In addition, the right-of-use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain remeasurements of the
lease liability.

Lease Liabilities

The lease liability is initially measured at the present
value of the lease payments to be paid over the
lease term at the commencement date, discounted
using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company
uses its incremental borrowing rate as the discount
rate. Subsequently, the lease liability is measured at
amortised cost using the effective interest method.

Taxation

Tax on Income comprises current tax and deferred
tax. These are recognised in Statement of Profit
and Loss except to the extent that it relates to a
business combination, or items recognised directly
in equity or in other comprehensive income.

Current tax :

Tax on income for the current period is determined
on the basis on estimated taxable income and
tax credits computed in accordance with the

provisions of the Income-Tax Act, 1961 and based
on the expected outcome of assessments / appeals.
Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are
those that are enacted or substantively enacted,
at the reporting date. Current income tax relating
to items recognised outside statement of profit
and loss is recognised outside statement of profit
and loss (either in Other Comprehensive Income
or in Equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with
respect to situations for which applicable tax
regulations are subject to interpretation and revises
the provisions where appropriate.

Deferred tax :

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and
liabilities in the financial statements and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for
all deductible temporary differences to the extent
that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilised.

3.2 Significant accounting judgements, estimates
and assumptions

Critical accounting judgements and key sources of
estimation uncertainty

The preparation of financial statements as per
lnd AS requires management to make judgments,
estimates and assumptions in the application
of accounting policies that affect the reported
amounts of assets, liabilities, income and expenses.
Although these estimates are based on the
management's best knowledge of current events
and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring
a material adjustment to the carrying amounts of
assets or liabilities in future periods.

Revenue from contracts with customers¹:

The Company applied the following judgements
that significantly affect the determination of the
amount and timing of revenue from contracts
with customers:

Identifying performance obligations in AMISP
Contract

The Company determined that both the (a) the
supply, installation, integration, testing, and
commissioning of the AMI system, and (b) the
operation, maintenance, and support services
post-installation are capable of being distinct.
The fact that the customer can benefit from both
products on their own and the promises to transfer
the equipment and to provide installation are distinct
within the context of the contract. Consequently,
the Company allocated a portion of the transaction
price to both performance obligations based on
relative stand-alone selling prices.

Consideration of significant financing component
in a contract

Under the AMISP Contract, the payment for
the supply and installation of meters is to be
received over a period of 93 months. The Company
concluded that there is a significant financing
component to this contract, considering the length
of time between the customer's payment and the
transfer of the performance obligation for the
supply and installation of meters to the customer,
as well as the prevailing market interest rates.
In determining the interest to be applied to the
amount of consideration, the Company concluded
that the interest rate implicit in the contract (i.e.,
the interest rate that discounts the cash selling
price of the equipment to the amount received in

installments) is appropriate because this rate is
commensurate with the rate that would be reflected
in a separate financing transaction between
the entity and its customer at the inception
of the contract.

¹ Key sources of estimation uncertainties

4. Recent accounting pronouncements

The Ministry of Corporate Affairs notified
new standards or amendment to existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
The Company applied following amendments for the
first-time during the current year which are effective
from April 1, 2024:

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

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

Introduction of Ind AS 117

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

The Company has reviewed the new pronouncements
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's Financial Statements.

The Management Committee of the Board of Directors of the Company, at its meeting held on August 3, 2024, has
approved the issue and allotment of 8,57,89,959 fully paid-up equity shares of the Company to eligible Qualified
Institutional Buyers in accordance with SEBI(Issue of Capital and Disclosure Requirements) Regulations, 2018
at an issue price of ' 976 per share (including securities premium of ' 966 per share) for a consideration of
' 8,373.10 crore. Pursuant to the allotment of these share the paid-up equity share capital of the Company
increased from ' 1,115.49 crore comprising 1,11,54,92,683 fully paid-up equity shares to ' 1,201.28 crore
comprising 1,20,12,82,642 fully paid-up equity shares.

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equity shares
is entitled to one vote per share. The dividend if proposed by the Board of Directors is subject to approval of the
share holders in the ensuing Annual General Meeting. In the event of liquidation of the Company the holders of

20. Other Equity (Contd...)

Hi. General Reserve : It has been created pursuant to the demerger of transmission undertaking of Adani Enterprises Limited into
the company. The general reserve is used from time to time to transfer profit from retained earnings for apportion purposes.

iv. Self Insurance Reserve : The company has decided that insurance of the transmission lines of subsidiary companies would be
through the self-insurance to mitigate the loss of assets hence a reserve has been created in current year. The insurance of
sub stations of subsidiary companies are covered through insurance companies under all risk policy.

v. Retained Earnings : Retained earnings represents the amount of profits or losses of the company earned till date net
of appropriation.

vi. Security premium : In FY 2022-23 the Company has received an aggregate consideration of ' 3,850.00 crore from Green
Transmission Investment Holding RSC Limited towards subscription of 1,56,82,600 equity shares of the company of the face
value of ' 10 each at price of ' 2,454.95 per equity share which includes a premium of ' 2,444.95 per equity share aggregating
to ' 3,834.32 crore During the current year, the Board of Directors of the Company, at its meeting held on August 03, 2024
approved the allotment of 8,57,89,959 equity shares of face value of ' 10 each to eligible investors at a price ' 976 per equity
share (including a premium of ' 966 per equity share). Security premium has been utilized for the expenditure incurred of
' 172.82 crore of the QIP placement.

vii. Restructuring reserve : Company has transferred/novated, its investments in equity shares (at fair value), and Inter Corporate
Deposits placed with ATIL and MEGPTCL, USD denominated borrowings of Senior Secured Notes / Bonds (aggregating USD
937.50 million) along with corresponding hedge contracts, identified fixed assets, cash equivalent to restricted reserve and
working capital loans to ATSOL. The Company has received the consideration on transfer of the said assets and liabilities
in form of 0% Compulsorily Convertible Debentures from ATSOL. The transaction being a common control transaction, the
difference between net liabilities transferred and the value of CCD recorded, being ' 5,321.04 crore has been recognized in
Other Equity of the Company.