We have audited the accompanying standalone financial
statements of The Tata Power Company Limited (“the
Company”}, which comprise the Balance sheet as at March
31 2025, the Statement of Profit and Loss, including the
statement of Other Comprehensive Income, the Cash Flow
Statement and the Statement of Changes in Equity for the
year then ended, and notes to the standalone financial
statements, including a summary of material accounting
policies and other explanatory information.

In our opinion and to the best of our information and
according to the explanations given to us ,the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013, as amended (“the
Act”) in the manner so required and give a true and
fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31, 2025, its profit including other
comprehensive income, its cash flows and the changes in
equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing
(SAs), as specified under section 143(10) of the Act.
Our responsibilities under those Standards are further
described in the ‘Auditor’s Responsibilities for the Audit
of the Standalone Financial Statements’ section of

our report. We are independent of the Company in
accordance with the ‘Code of Ethics’ issued by the Institute
of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and
the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the standalone financial
statements.

Key Audit Matters

Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone financial statements for the
financial year ended March 31, 2025. These matters were
addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion
on these matters. For each matter below, our description
of how our audit addressed the matter is provided in that
context.

We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the standalone
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the
standalone financial statements. The results of our audit
procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion
on the accompanying standalone financial statements.

in the regulated generation, transmission and distribution
business of the Company, tariff is determined by the
regulator on cost plus return on equity basis wherein the
cost is subject to prudential norms. The Company invoices
its customers based on pre-approved tariff which is based
on budget and is subject to true up.

The Company recognizes revenue as the amount invoiced
to customers based on pre-approved tariff rates agreed
with regulator. As the Company is entitled to a fixed return
on equity, the difference between the revenue recognized
and entitlement as per the regulation is recognized as
regulatory assets / liabilities. The Company has recognized
' 2,578.21 crore for the regulated generation and
transmission business and ' 1,174.17 crore for distribution
business as accruals as at March 31, 2025.

Accruals are determined based on tariff regulations,
past tariff orders, company’s assessment of disputed
claims and are subject to verification and approval by the
regulators and outcome of ongoing legal proceedings.
Further the costs incurred are subject to prudential
checks and prescribed norms.

Significant judgements are made in determining the
accruals including interpretation of tariff regulations.

Some of the claims made by the Company has been
disallowed by the Regulators which has been challenged
by the Company and the matters are pending with
various authorities. As at March 31, 2025, the total
outstanding receivable related to these litigations
amount to ' 2,845.37 crore.

Mundra power plant:

The Company sells power to customers in accordance
with the long-term Power Purchase Agreement (PPA)
entered into with them.

As per the PPA, the Companies entitlement to capacity
revenue is dependent on availability declared.
Accordingly, the Company accrues capacity revenue
based on the actual declared capacity.

During the current year and previous year, the Company
has supplied power as per the directions issued by Ministry
of Power (MoP) under Section 11 of the Electricity Act,
2003 for the notified period. Accordingly, the Company
has recognized revenue based on the MoP Directions,
the related CERC orders for determination of tariff and
legal opinion for disputed matters. Of the total revenue

Our procedures included the following:

• Read the Company's accounting policies with respect to
revenue recognition and accrual of regulatory deferrals
and assessing its compliance with I nd AS 114 “ Regulatory
Deferral Accounts” Ind AS 115 “Revenue from Contract
with Customers” and the relevant provisions of the
Electricity Act 2003 and the rules issued thereunder;

• Performing test of controls over revenue recognition
and accrual of regulatory deferrals through inspection
of evidence of performance of these controls;

• Performing substantive audit procedures including:

- Read the executed PPAs with the respective
customer, the tariff regulations issued by the
regulators including the tariff orders, orders issued
by the relevant authorities at various stages and
evaluated the relevant clauses to understand
management's assessment of the Company's right
vis-a-vis the customers;

- Evaluating the key assumptions used by the
Company by comparing it with prior years, past
precedents and the legal opinion obtained by the
management;

- Considering the independence, objectivity and
competence of management’s expert;

- Assessing management’s evaluation of the likely
outcome of the key disputed claims unapproved by
the regulators based on past precedents and / or
advice of management’s legal/regulatory expert;

- Assessing the impact recognized by the Company
in respect of tariff orders received during the year
and the revenue recognized based on ongoing
litigations;

- Reading the legal opinion obtained by the
management for assessing the Company’s right
with respect to claims with customers and power
supply to customers;

• Assessing the disclosures in accordance with the
requirements of Ind AS 114 “Regulatory Deferral
Accounts” and Ind AS 115 “Revenue from Contract with
Customers”.

At the end of every reporting period, the Company
assesses whether there is any indication that an asset or
cash generating unit (CGU) may be impaired. if any such
indication exists, the Company estimates the recoverable
amount of the asset or CGU.

The determination of recoverable amount, being the
higher of fair value less costs to sell and value-in¬
use involves significant estimates, assumptions and
judgements of the long-term financial projections.

The Company is carrying impairment provision
amounting to ' 310.94 crore with respect to Mundra
CGU (comprising of Mundra power plant, investment in
companies owning coal mines and related infrastructure).

During the year the Company has reassessed its
impairment assessment with respect to the Mundra
CGUs and no additional impairment provisions has been
recognized.

impairment of assets is a key audit matter considering
the significance of the carrying value, estimations and
the significant judgements involved in the impairment
assessment including identification of CGU, projected
generation, coal prices, exchange rate, energy prices
post power purchase agreement period and weighted
average cost of capital.

Other Information

The Company’s Board of Directors is responsible for
the other information. The other information comprises
the information included in the Annual report, but does
not include the standalone financial statements and our
auditor’s report thereon.

Our opinion on the standalone financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
in connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements, or our knowledge obtained in the audit or
otherwise appears to be materially misstated. if, based on
the work we have performed, we conclude that there is a
material misstatement of this other information, we are
required to report that fact. We have nothing to report in
this regard.

Our procedures included the following:

• Read the Company's accounting policies with respect to
impairment in accordance with Ind AS 36 “Impairment
of assets”;

• Performing test of controls over key financial controls
related to accounting, valuation and recoverability of
assets through inspection of evidence;

• Performing substantive audit procedures including:

- Evaluating management’s process of identification of
CGUs for impairment assessment.

- Obtaining the management’s impairment assessment;

- Evaluating the key assumptions including projected
generation, coal prices, exchange rate, energy prices
post power purchase agreement period and weighted
average cost of capital by comparing them with prior
years and external data, where available;

- Obtaining and evaluating the sensitivity analysis;

Assessing the disclosures in accordance with the

requirements of Ind AS 36 “Impairment of assets”.

Responsibilities of Management for the Standalone
Financial Statements

The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance including other comprehensive
income, cash flows and changes in equity of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended including the relevant provisions
of Electricity Act 2003 and the rules issued thereunder.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are

reasonable and prudent; and the design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
to the preparation and presentation of the standalone
financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or
error.

In preparing the standalone financial statements,
management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for
overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone
Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the
basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement
of the standalone financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to financial statements in place and the operating
effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.

• Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the standalone
financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the standalone
financial statements for the financial year ended March
31, 2025 and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report)
Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the “Annexure 1” a
statement on the matters specified in paragraphs 3
and 4 of the Order.

2. As required by Section 143(3) of the Act, we report, to

the extent applicable, that:

(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit;

(b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matter stated in the
paragraph (i)(vi) below on reporting under Rule

11(g);

(c) The Balance Sheet, the Statement of Profit
and Loss including the Statement of Other
Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with
the books of account ;

(d) In our opinion, the aforesaid standalone
financial statements comply with the Accounting
Standards specified under Section 133 of the
Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended including
the relevant provisions of the Electricity Act
2003 and the rules prescribed thereunder;

(e) On the basis of the written representations
received from the directors as on March 31,
2025 taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2025 from being appointed as a director in
terms of Section 164 (2) of the Act;

(f) The modification relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph (b) above.

(g) With respect to the adequacy of the internal
financial controls with reference to these
standalone financial statements and the
operating effectiveness of such controls, refer
to our separate Report in “Annexure 2” to this
report;

(h) In our opinion, the managerial remuneration for
the year ended March 31, 2025 has been paid
/ provided by the Company to its directors in
accordance with the provisions of section 197
read with Schedule V to the Act;

(i) With respect to the other matters to be included
in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended in our opinion and to the
best of our information and according to the
explanations given to us:

i. The Company has disclosed the impact of
pending litigations on its financial position in

its standalone financial statements - Refer
Note 39 and 40 to the standalone financial
statements;

ii. The Company has made provision, as
required under the applicable law or
accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts -
Refer Note 24 to the standalone financial
statements;

iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company;

iv. a) The management has represented

that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium
or any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in
other persons or entities identified
in any manner whatsoever by or on
behalf of the Company (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

b) The management has represented
that, to the best of its knowledge and
belief, no funds have been received by
the Company from any person or entity,
including foreign entities (“Funding
Parties”), with the understanding,
whether recorded in writing or
otherwise, that the Company shall,
whether, directly or indirectly, lend
or invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
and

c) Based on such audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come to
our notice that has caused us to believe

that the representations under sub¬
clause (a) and (b) contain any material
misstatement.

v. The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the Act to
the extent it applies to payment of dividend.

As stated in Note 21 to the standalone
financial statements, the Board of
Directors of the Company have proposed
final dividend for the year which is subject to
the approval of the members at the ensuing
Annual General Meeting. The dividend
declared is in accordance with section
123 of the Act to the extent it applies to
declaration of dividend.

vi. The Company has migrated to an upgraded
version of the accounting software from its
legacy accounting software on December
23, 2024. Based on our examination which
included test checks, the Company has
used accounting software for maintaining
its books of account which has a feature of
recording audit trail (edit log) facility and
the same has operated throughout the year
for all relevant transactions recorded in
the aforesaid software's except that audit

trail feature was not enabled for direct
changes to data in the legacy accounting
software when using certain access rights
during the period April 1, 2024 to October
17, 2024, as described in Note 48 to the
financial statements. Further, during the
course of our audit we did not come across
any instance of audit trail feature being
tampered with in respect of the aforesaid
accounting software's where the audit trail
has been enabled. Additionally, the audit
trail of previous year has been preserved
by the Company as per the statutory
requirements for record retention to the
extent it was enabled and recorded in the
previous year.

For S R B C & CO LLP

Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003

per Vikram Mehta

Partner

Membership No.: 105938
UDIN: 25105938BMMMUK7688

Mumbai
May 14, 2025