(xii) Provisions
A provision is recognized when the Company has a present obligation (Legal or Constructive) as a result of
past event, and it is probable that an outflow of resources will be required to settle the obligation in respect
of which a reliable estimate can be made.
(xiii) Contingent liabilities
Contingent liabilities are not recognized but disclosed in Notes when the Company has possible obligation
due to past events and existence of the obligation depends upon occurrence or non- occurrence of future
events not wholly within the control of the Company and Present obligations arising from past events where
it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.
Contingent liabilities are assessed continuously to determine whether outflow of Economic resources have
become probable. If the outflow becomes probable, then relative provision is recognized in the financial
statements.
(xiv) Contingent Assets
Contingent Assets are not recognized but disclosed in Notes which usually arise from unplanned or other
unexpected events that give rise to the possibility of an inflow of economic benefits.
Contingent assets are assessed continuously to determine whether inflow of economic benefits becomes
virtually certain, then such assets and the relative income will be recognised in the financial statements.
(xv) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Chairman and Managing Director (CMD) of the Company have been identified
as the Chief Operating Decision Maker (CODM).
(xvi) Material prior period errors
Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior
periods presented in which the error occurred. If the error occurred before the earliest period presented,
the opening balances of assets, liabilities and equity for the earliest period presented, are restated unless
it is impracticable, in which case, the comparative information is adjusted to apply the accounting policy
prospectively from the earliest date practicable.
(xvii) Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax'
as reported in the statement of profit and loss /other comprehensive income because of items of income
or expense that are taxable or deductible in other years and items that are never taxable or deductible. The
Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.
Current tax is recognized in the statement of profit and loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current tax is also
recognized in other comprehensive income or directly in equity respectively. Where current tax arises from
the initial accounting for a business combination, the tax effect is included in the accounting for the business
combination.
Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding amounts used for taxation purpose.
Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized only to the extent that it is probable that future taxable profits
will be available against which the assets can be utilized. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the
related tax benefit will be realized.
Current and deferred tax are recognized in the statement of profit and loss, except when they relate to items
that are recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.
(xviii) Investment Property
Investment properties are properties held to earn rentals and/or for capital appreciation (including
property under construction for such purposes). Investment properties are measured initially at cost,
including import duties, non-refundable taxes, after deducting trade discounts & rebates, borrowing cost
if capitalization criteria are met and any cost directly attributable in bringing the asset to the location and
condition necessary for it to be ready for its intended use.
After initial recognition, the Company measures investment property by using cost model.
An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss
arising on de recognition of the property (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit and loss in the period in which
the property is derecognized.
Investment properties are depreciated in accordance to the class of asset that it belongs and the life of the
asset shall be as conceived for the same class of asset at the Company.
Though investment property is measured using cost model, the fair value of investment property is disclosed
in the notes.
(xix) Employee Benefits
a) Short-term employee benefits
Short-term employee benefits including salaries, short term compensated absences (such as a paid annual
leave) where the absences are expected to occur within twelve months after the end of the period in which
the employees render the related service, profit sharing and bonuses payable within twelve months after
the end of the period in which the employees render the related services and non-monetary benefits for
current employees are estimated and measured on an undiscounted basis.
b) Post-employment benefit plans are classified into defined benefits plans and defined contribution
plans as under:
(i) Defined contribution plan
A defined contribution plan is a plan under which the Company pays fixed contributions in respect of the
employees into a separate fund. The Company has no legal or constructive obligations to pay further
contributions after its payment of the fixed contribution. The contributions made by the Company towards
defined contribution plans are charged to the statement of profit and loss in the period to which the
contributions relate.
(ii) Defined benefit plan
The Company has an obligation towards gratuity, Post-Retirement Medical Benefit (PRMB) and Other
Defined Retirement Benefit (ODRB) which are being considered as defined benefit plans covering eligible
employees. Under the defined benefit plans, the amount that an employee will receive on retirement is
defined by reference to the employee's length of service, final salary, and other defined parameters. The
legal obligation for any benefits remains with the Company, even if plan assets for funding the defined
benefit plan have been set aside.
The Company's obligation towards defined benefit plans is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. The liability
recognized in the statement of financial position for defined benefit plans is the present value of the Defined
Benefit Obligation (DBO) at the reporting date less the fair value of plan assets. Management estimates the
DBO annually with the assistance of independent actuaries.
The liability for retirement benefits of employees in respect of provident fund, benevolent fund,
superannuation fund and Gratuity is funded with separate trusts.
The Company's contribution to Provident Fund / Superannuation Fund is remitted to separate trusts
established for this purpose based on a fixed percentage of the eligible employee's salary and debited to
Statement of Profit and Loss.
c) Other long-term employee benefits:
Liability in respect of compensated absences becoming due or expected to be availed more than one- year
after the balance sheet date is estimated on the basis of actuarial valuation performed by an independent
actuary using the projected unit credit method.
Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged
to statement of profit and loss in the period in which such gains or losses are determined.
(xx) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs,
except for those carried at fair value through profit or loss. Subsequent measurement of financial assets
and financial liabilities is described below.
Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets are classified into the following categories
upon initial recognition:
• Amortized cost
• Financial assets at fair value through profit or loss (FVTPL)
• Financial assets at fair value through other comprehensive income (FVOCI)
All financial assets except for those at FVTPL or equity instruments at FVOCI are subject to review for
impairment at least at each reporting date to identify whether there is any objective evidence that a financial
asset or a group of financial assets is impaired. Different criteria to determine impairment are applied to
each category of financial assets, which are described below.
? Loan at Amortised Cost
Loans (financial asset) are measured at amortized cost using Effective Interest Rate (EIR) if both of the
following conditions are met:
a) The financial asset is held within a business model whose objective is to hold financial assets to
collect contractual cash flows; and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
A loss allowance for expected credit losses is recognized on financial assets carried at amortized cost.
? Financial assets at Fair Value through Profit or Loss (FVTPL)
Financial assets at FVTPL include all derivative financial instruments except for those designated and
effective as hedging instruments, for which the hedge accounting requirements are being applied. Assets in
this category are measured at fair value with gains or losses recognized in the statement of profit and loss.
The fair values of financial assets in this category are determined by reference to active market transactions
or using a valuation technique where no active market exists.
Financial assets at FVOCI comprise of equity instruments measured at fair value. An equity investment
classified as FVOCI is initially measured at fair value plus transaction costs. Gains and losses are recognized
in other comprehensive income and reported within the FVOCI reserve within equity, except for dividend
income, which is recognized in profit or loss. There is no recycling of such gains and losses from OCI to
Statement of Profit & Loss, even on the derecognition of the investment. However, the Company may
transfer the same within equity.
De-recognition of financial assets
Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets)
are derecognized (i.e., removed from the Company's balance sheet) when the contractual rights to receive
the cash flows from the financial asset have expired, or when the financial asset and substantially all
the risks and rewards are transferred. The Company also derecognizes the financial asset if it has both
transferred the financial asset and the transfer qualifies for de-recognition.
Classification and subsequent measurement of financial liabilities
Financial liabilities are measured subsequently at amortized cost using the effective interest method,
except for derivative financial liabilities which are carried at FVTPL, subsequently at fair value with gains
or losses recognized in the statement of profit and loss. (FVTPL). All host contracts which are in nature
of a financial liability and separated from embedded derivative are measured at amortized cost using the
effective interest method.
De-recognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit and loss.
Derivative financial instruments
The Company is exposed to foreign currency fluctuations on foreign currency assets and liabilities. The
Company limits the effect of foreign exchange rate fluctuations by following established risk management
policies including the use of derivatives.
The Company use Derivative instrument includes principal swap, Cross Currency & Interest Rate Swap
(CCIRS), forwards, interest rate swaps, currency and cross currency options, structured product, etc. to
hedge foreign currency assets and liabilities.
Derivatives are recognized and measured at fair value (MTM). Attributable transaction costs are recognized
in statement of profit and loss as cost.
De-recognition of Financial asset:
Financial assets are derecognized when the contractual right to receive cash flows from the financial assets
expires or transfers the contractual rights to receive the cash flows from the asset.
Hedge Accounting
Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL) except for
derivatives designated as hedging instruments in cash flow hedge relationships, which require a specific
accounting treatment. To qualify for hedge accounting, the hedging relationship must meet all of the
following requirements:
- there is an economic relationship between the hedged item and the hedging instrument
- the effect of credit risk does not dominate the value changes that result from that economic relationship
- the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity
actually uses to hedge that quantity of hedged item.
The Company has designated mostly derivative contracts as hedging instruments in cash flow hedge
relationships. These arrangements have been entered into to mitigate foreign currency exchange risk and
interest rate risk arising against which debt instruments denominated in foreign currency.
• Cash Flow hedging is done to protect cash flow positions of the Company from changes in
exchange rate fluctuations and to bring variability in cash flow to fixed ones.
• The Company enters into hedging instruments in accordance with policies as approved by the
Board of Directors; provide written principles which are consistent with the risk management
strategy/policies of the Company.
• All derivative financial instruments used for hedge accounting are recognised initially at fair
value and reported subsequently at fair value in the balance sheet.
The hedge instruments are designated and documented as hedges at the inception of the contract. The
effectiveness of hedge instruments is assessed and measured at inception and on an on-going basis. The
effective portion of change in the fair value as assessed based on MTM valuation provided by respective
banks/third party valuation of the designated hedging instrument is recognized in the "Other Comprehensive
Income" as "Cash Flow Hedge Reserve". The ineffective portion is recognized immediately in the Statement
of Profit and Loss as and when occurs.
At the time the hedged item affects profit or loss, any gain or loss previously recognised in other
comprehensive income is reclassified from equity to profit or loss and presented as a reclassification
adjustment within other comprehensive income.
If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting
is discontinued prospectively. If the hedging instrument expires or sold, terminated or exercised, the
cumulative gain or loss on the hedging instrument recognized in Cash Flow Hedge Reserve remains in
Cash Flow Hedge Reserve till the period the hedge was effective. The cumulative gain or loss previously
recognized in the Cash Flow Hedge Reserve is transferred to the Statement of Profit and Loss upon the
occurrence of the underlying transaction.
Impairment
Impairment of financial assets
? Loan assets
The Company follows a 'three-stage' model for impairment of loan asset carried at amortized cost based on
changes in credit quality since initial recognition as summarized below:
• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial
recognition or that has low credit risk at the reporting date.
• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition
but that do not have objective evidence of impairment.
• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.
The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and lifetime ECL for
Stage 2 and Stage 3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and
Loss Given Default, defined as follows:
Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial
obligation, either over the next 12 months (12 months PD), or over the remaining lifetime (Lifetime PD) of
the obligation.
Loss Given Default iLGDl - LGD represents the Company's expectation of the extent of loss on a defaulted
exposure. LGD varies by type of counterparty, type, and preference of claim and availability of collateral or
other credit support.
Exposure at Default [EADl - EAD is based on the amount of outstanding exposure as on the assessment date
on which ECL is computed.
Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD and
LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an on-going
basis.
? Financial Instruments other than Loans consist of :-
• Financial assets include cash and cash equivalents, trade receivables, unbilled revenues, finance
lease receivables, employee and other advances.
• Financial liabilities include borrowings, bank overdrafts, trade payables.
Non derivative financial instruments other than loans are recognized initially at fair value including any
directly attributable transaction costs. Financial assets are derecognized when substantial risks and
rewards of ownership of the financial asset have been transferred. In cases where substantial risks and
rewards of ownership of the financial assets are neither transferred nor retained, financial assets are
derecognized only when the Company has not retained control over the financial asset.
Subsequent to initial recognition, they are measured as prescribed below:
a) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at bank,
demand deposits with banks, cash credit, fixed deposits and foreign currency deposits, net of outstanding
bank overdrafts that are repayable on demand and are considered part of the Company's cash management
system. In the statement of financial position, bank overdrafts are presented under borrowings.
b) Trade Receivable
The Company follows 'simplified approach' for recognition of impairment loss allowance on trade
receivables. The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date,
right from its initial recognition. The Company determines impairment loss allowance based on individual
assessment of receivables, historically observed default rates over the expected life of the trade receivables
and is adjusted for forward-looking estimates.
c) Other payables
Other payables are initially recognized at fair value, and subsequently carried at amortized cost using the
effective interest method. For these financial instruments, the carrying amounts approximate fair value due
to the short-term maturity of these instruments.
(xxi) Dividend
Proposed dividends and interim dividends payable to the shareholders are recognized as changes in
equity in the period in which they are approved by the Board of Directors and in the shareholders' meeting
respectively.
(xxii) Fair Value Measurement & Disclosure
The Company measures financial instruments, such as derivatives at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability The
principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, including assumptions about risk, assuming that market participants
act in their economic best interest. A fair value measurement of a non-financial asset takes into account a
market participant's ability to generate economic benefits by using the asset in its highest and best use or
by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing
the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the financial statements regularly, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
(xxiii) Revenue Recognition
? Interest Income
Interest income is accounted on all financial assets (except Company is not recognizing interest income
on credit impaired financial assets) measured at amortized cost. Interest income is recognized using the
Effective Interest Rate (EIR) method in line with Ind AS 109, Financial Instruments. The Effective Interest
Rate (EIR) is the rate that exactly discounts estimated future cash receipts through expected life of the
financial asset to that asset's net carrying amount on initial recognition. The EIR is calculated by taking
into account transactions costs and fees that are an integral part of the EIR in line with Ind AS 109. Interest
income on credit impaired assets is recognized on receipt basis.
Rebate on account of timely payment of interest by borrowers is recognized on receipt of the entire interest
amount due in time, in accordance with the terms of the respective contract and is netted against the
corresponding interest income.
Unless otherwise specified, the recoveries from the borrowers are appropriated in the order of (i) incidental
charges (ii) penal interest (iii) overdue interest and (iv) repayment of principal; the oldest being adjusted
first. The recovery under One Time Settlement (OTS)/ Insolvency and Bankruptcy Code (IBC) proceedings
is appropriated first towards the principal outstanding and remaining recovery thereafter, towards interest
and other charges, if any.
? Other Revenue
• Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) are
recognised as per Ind AS 115 - Revenue from contracts with customers outlines a single comprehensive
model of accounting for revenue arising from contracts with customers. The Company recognizes
revenue from contracts with customers based on the principle laid down in Ind AS 115 - Revenue from
contracts with customers.
• Revenue from contract with customers is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.
Revenue is measured at the transaction price agreed under the Contract. Transaction Price excludes
amounts collected on behalf of third parties (e.g., taxes collected on behalf of government) and
includes/adjusted for variable consideration like rebates, discounts, only to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur
when the uncertainty associated with the variable consideration is subsequently resolved.
? Revenue from solar plant
Income from solar plant is recognised when the performance obligation are satisfied over time. Rebate
given is disclosed as a deduction from the amount of gross revenue.
? Revenue from Fees and Commission
• Revenue from Fee & Commission
Fees and commission are recognised on a point in time basis when probability of collecting such fees is
established.
• Revenue from Implementation of Government Schemes & Projects
The Company besides its own activities also acts as implementing agency on behalf of various Government /
Non-Government Organizations on the basis of Memorandum of Understanding (MoU) entered into between
the Company and such organization. The details of such activities are disclosed by the way of Notes to the
Financial Statements.
Wherever any funds are received under trust on the basis of such MoUs entered, the same is not included in
Cash and Cash Equivalents and any income including interest income generated out of such funds belonging
to such organizations is not accounted as revenue of the Company.
Service charges earned from such schemes implemented by the Company are recognised at a point in time
basis when certainty of collecting such service charges is established.
(xxiv) Expense
Expenses are accounted for on accrual basis. Prepaid expenses upto ' 5,00,000/- per item are charged to
Statement of Profit & Loss as and when incurred/adjusted/received.
(xxv) Expenditure on issue of shares
Expenditure on issue of shares, if any, is charged to the securities premium account.
****
i) Foreign currency borrowings from various multilateral / bilateral agencies viz. ADB, World Bank , KfW, AFD, JICA and EIB have
been converted into rupee and hedging of the same is done by undertaking plain vanilla swap transaction /currency interest rate
swap / principal only swap/forward contracts etc. with various banks with whom Company has signed International Swaps and
Derivative Association (ISDA) Master Agreement. These derivative transactions have been entered into with the participating
bank for a maturity period which may be shorter than the maturity period of the loan. The hedging of the foreign currency loan
has been carried out at various intervals and in multiple Tranches based on the drawl under the lines of credit and also rollover.
In addition to the interest cost and other financial charges, due to hedging of foreign currency loans, these loans carry hedging/
derivative cost, which is Tranche wise as per the drawl under the line of credit, thus the applicable rate of interest on these lines
of credit has not been disclosed above.
ii| Rupee Borrowing as on 31-03-2025 mentioned in Note No. 20 were raised at respective Banks/Financial Institutions benchmark
rate plus spread ranging from 0 bps to 155 bps.
iii) The Company raises funds through various instruments including bonds. During the year, the Company has not defaulted in
servicing of any of its debt service obligations whether for principal or interest .
iv) Funds raised during the year have been utilised for the stated objects in the offer document/information memorandum/facility
agreement.
v) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders .
vi) The statements of book debts filed by the Company with banks/ financial institutions are in agreement with the books of
accounts.
vii) None of the borrowings have been guaranteed by Directors.
viii) There were no instances of breach of covenants of loans availed by the Company.
1 Nature and purpose of Reserves
1.1 Special Reserve:
Special reserve has been created to avail income tax deduction under section 36(1](viii] of Income-Tax Act,1961
@ 20% of the profit before tax arrived from the business of providing long term finance. Accordingly, a sum of
' 362.00 Crores has been provided for the year ended 31.03.2025 (previous year: ' 264.00 Crores].
1.2 Debenture Redemption Reserve:
In terms of Rule 18 (7](b](ii] of the Companies Act 2013, the Company is required to create a Debenture
Redemption Reserve (DRR] upto 25% of the bonds issued through public issue. The Company has made a
provision for DRR, so as to achieve the required amount over the respective tenure of the Tax-Free Bonds.
Accordingly, a sum of ' 41.26 Crores has been provided for the year ended 31.03.2025 (previous year : ' 45.03
Crores].
1.3 General Reserve:
General Reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes, as the same is created by transfer from one component of equity to another.
1.4 Foreign Currency Monetary Item Translation Reserve:
Foreign Currency Monetary Item Translation Difference Account represents unamortized foreign exchange
gain/loss on Long-term Foreign Currency Borrowings that are amortized over the tenure of the respective
borrowings. The Company has adopted exemption of para D13AA of I nd AS 101, according to which a first-time
adopter may continue the policy adopted for accounting for exchange differences arising from translation
of long-term foreign currency monetary items recognized in the financial statements for the year ending
immediately before the beginning of the first Ind AS financial year as per the previous GAAP. Accordingly, all
transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction.
The exchange differences arising on reporting of long-term foreign currency monetary items outstanding
as on March 31,2018, at rate prevailing at the end of each year, different from those at which they were
initially recorded during the year, or reported in previous financial statements, are accumulated in a "Foreign
Currency Monetary Item Translation Reserve Account" and amortized over the balance year of such long
term monetary item, by recognition as income or expense in each of such years. Long-term foreign currency
monetary items are those which have a term of twelve months or more at the date of origination. Movement
of FCMITR has been shown in the table above.
1.5 NBFC Reserve:
In terms of RBI circular no. DNBR (PD]CC.No.092/03.10.001/2017-18 dated May 31, 2018, the Company is
required to create NBFC reserve under Section 45-IC of RBI Act, 1934 @ 20% of post-tax profit.Accordingly, for
the year ended 31.03.2025, an amount of ' 340 Crores has been appropriated (previous year: ' 251.00 Crores]
towards NBFC reserve.
1.6 Securities Premium:
Securities premium is used to record the premium on issue of shares. The reserve can be utilized only for
limited purposes in accordance with the provisions of the Companies Act, 2013. Expenditure on issue of
shares is charged to the securities premium account.
1.7 Retained Earnings:
Retained earnings represent profits and items of other comprehensive income recognized directly in retained
earnings earned by the Company less dividend distributions and transfer to and from other reserves.
1.8 Cash Flow Hedge Reserve:
The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest
rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses
foreign currency forward contracts, cross currency swaps and interest rate swaps. To the extent the derivative
contracts designated under the hedge accounting are effective hedges, the change in fair value of the hedging
instrument is recognized in 'Effective Portion of Cash Flow Hedges'. Amounts recognized in such reserve
are reclassified to the Standalone Statement of Profit or Loss when the hedged item affects profit or loss.
Movement of Cash Flow Hedge Reserve has been shown in the table above.
1. Company Overview
The Company is a Government Company registered with the Reserve Bank of India (RBI) as a Non-Banking
Financial Company (NBFC). The registered office of the Company is at 1st Floor, India Habitat Centre, East
Court, Core- 4A, Lodhi Road, New Delhi -110003. The Company has also been accorded Schedule "A" status
vide DPE letter dated 27 September 2023 and upgraded to 'Navratna' by DPE vide letter dated 26 April 2024.
Any direction issued by RBI or other regulators are implemented as and when they become applicable.
In terms of Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based
Regulation) Directions, 2023 dated 19 October 2023 (as amended) herewith referred as Master Direction
2023 the Company falls under NBFC-Middle Layer (ML). The Company has been granted the status of
Infrastructure Finance Company (IFC) by RBI vide letter dated 13 March 2023 & is classified as "NBFC-IFC"
as per Master Direction 2023.
Equity Shares and Non-Convertible Debt Securities of the Company are listed on National Stock Exchange
of India Limited (NSE) and/or BSE Limited.
The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity (SOCIE) are
presented in the format prescribed under Division III of Schedule III of the Companies Act, 2013 for NBFCs
that are required to comply with Indian Accounting Standards (Ind AS). The Statement of Cash Flows has
been presented as per the requirement of Ind AS 7 - "Statement of Cash Flows".
4. Undisclosed income
There were no transactions not recorded in the books of accounts that has been surrendered or disclosed
as income during the current and previous year in the tax assessments under the Income Tax Act, 1961.
Thus, no further accounting in the books of accounts is required.
5. Disclosure in respect of Indian Accounting Standard (Ind AS)-16 “Property, Plant and Equipment"
Decommissioning liabilities included in the cost of property, plant and equipment
As per Ind AS 16 Property, Plant and Equipment, Appendix A "Changes in Existing Decommissioning,
Restoration and Similar Liabilities", specified changes in decommissioning, restoration or similar Liability
needs to be added to or deducted from the cost of the asset to which it relates; the adjusted depreciable
amount of the asset is then depreciated prospectively over its remaining useful life.
As per para 55 of Ind AS 16, the depreciable amount of an asset is determined after deducting its residual
value. The amount of decommissioning liability and residual value related to solar plant is not reliably
ascertainable. Hence, decommissioning liability related to the solar plant and the residual value have not
been considered. Further , the management is of the opinion that the decommissioning cost (net of residual
value of the solar plant), shall not be material.
6. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits"
General description of various defined employee's benefits schemes is as under:-
• Provident Fund (Defined Contribution Fund): During the year ended 31 March 2025, the Company
has recognized an expense of ' 3.15 crores (previous year : ' 2.87 crores) in respect of contribution
to Provident Fund at predetermined fixed percentage of eligible employees' salary and charged to
statement of profit and loss.
• National Pension Scheme / Superannuation Benefit Fund (Defined Contribution Fund): During the
year ended 31 March 2025, the Company has recognized an expense of ' 2.29 crores in respect of
contribution to National Pension Scheme (NPS) (previous year: ' 2.17 crores) at predetermined fixed
percentage of eligible employees' salary and charged to statement of profit and loss.
Other Benefits:
• Earned Leave (EL) benefit: Accrual 30 days per year. Encashment 2 times in a calendar year while in
service. Encashment on retirement or superannuation maximum 300 days inclusive of Half Pay Leave
(HPL).
For year ended 31 March 2025, the Company has recognized ' 2.38 crores (previous year: ' 3.05 crores]
towards earned leave as per actuarial valuation.
• Half Pay Leave (HPL) benefit: Accrual 10 full days per year. No encashment while in service.
Encashment on retirement or superannuation maximum 300 days inclusive of EL.
For year ended 31 March 2025, the Company has recognized ' 0.19 crores (previous year: ' 1.51 crores]
towards Half pay leave as per actuarial valuation.
• Gratuity: Accrual of 15 days salary for every completed year of service. Vesting period is 05 years and
the payment is limited to 20 Lakhs subsequent to the pay revision applicable from 01 January 2017.
As per actuarial valuation for the year ended 31 March 2025, Net Asset recognized in Balance Sheet
towards gratuity is ' 0.42 crores (previous year: ' 0.21 crores] for on roll employee, whereas the assets
held of ' 13.01 crores against the liability of ' 12.59 crores (previous year: ' 12.40 crores against the
liability of ' 12.19 crores].
• Post-Retirement Medical Benefit (PRMB) Scheme : The Company provides for the defined benefit
plans for Post-Retirement Medical Scheme using projected unit credit method of actuarial valuation.
Under the scheme eligible ex-employees and eligible dependent family members are provided medical
facilities. IREDA Post-Retirement Medical Scheme (PRMS] Trust became operative, and the post¬
retirement medical benefits have been governed under IREDA PRMS Trust & Rules w.e.f. 01 October
2024. The beneficiaries consist of retired employees and their dependents for medical benefits as per
applicable rules.
An amount of ' 42.87 crores has been transferred to the Trust, comprising ' 32.87 crores, based on the
actuarial valuation as of 30 September 2024 and ' 10.00 crores, as an additional contribution to ensure
the Trust's long-term viability and facilitate the smooth operation to extend medical assistance. The
funds have been invested with LIC of India against the Policy in place.
As per actuarial valuation for the year ended 31 March 2025, Net Asset recognized in Balance Sheet
towards PRMS is ' 4.55 crores, whereas the assets held of ' 44.27 crores against the liability of ' 39.71
crores (previous year: Nil crores assets against the liability of ' 16.89 crores].
• Baggage Allowance: At the time of superannuation, employees are entitled to settle at a place of their
choice, and they are eligible for Baggage Allowance.
As per actuarial valuation for the year ended 31 March 2025, towards Baggage Allowance the Company
has provided ' 0.04 crores (previous year: ' 0.03 crores].
• Farewell Gift: At the time of superannuation of employees, company provides farewell gift to employee
as per policy framed for this purpose. Value of gift is determined on the basis on designation of the
superannuating employee.
During the year ended 31 March 2025, the Company has provided towards the Farewell Gift ' 0.03
crores (previous year: ' 0.02 crores].
The summarized position of various defined benefits recognized in the Statement of Profit & Loss,
Other Comprehensive Income (OCI] and Balance Sheet & other disclosures are as under:-
• Performance Related Pay
During the year ended 31 March 2025, the Company has made a provision of ' 9.43 crores (previous year:
' 4.91 crores (net of reversal) was created) towards the performance related pay. An amount of ' 6.00 crores
was paid during the year (previous year: ' 8.84 crores) to the eligible employees as per the underlying
scheme.
7. Disclosure in respect of Indian Accounting Standard (Ind AS) -20 “Accounting for Government Grants and
Disclosure of Government Assistance"
a) Grant for Capital Assets
World Bank Clean Technology Fund (CTF) Grant:-
Wortd Bank CTF Grant received related to Intangible assets are treated as deferred income and are
recognized in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the
asset as a deduction to amortization expense. Refer Note 38(17) to Financial Statements.
The Company has received total Grant of ' 5.50 crores till 31 March 2025 (previous year: ' 5.50 crores)
including reimbursements to the Company and direct disbursement to vendors. The Company has disclosed
' 1.15 crores as balance grant (previous year: ' 1.52 crores) towards the procurement of intangible assets
till 31 March 2025. The Company has disclosed the said grant as "Capital Grant from World Bank -Clean
Technology Fund (CTF)" under "Other non - financial fiabifities"(Refer Note 24) to Financial Statements. The
movement of Grant for Capital Assets is as follows:
A. The Company has incorporated a wholly owned subsidiary company named as "IREDA Global Green
Energy Finance IFSC Ltd" in IFSC (International Financial Services Centre)-GIFT City (Gujarat
International Finance Tec- City) which shall provide debt denominated in foreign currencies for financing
renewable energy sector. The Company has invested an amount of USD 3.11 Million equivalent to '
26.00 crores in its subsidiary. The subsidiary company has received Certificate of Registration dated
18 February 2025 from IFSCA to undertake activities as a Finance Company.
B. Approval for incorporation of a retail subsidiary focused on renewable energy financing was obtained
from the Department of Investment and Public Asset Management (DIPAM) and Ministry of New and
Renewable Energy (MNRE) on 10 October 2024. Subsequently, NOC / Approval from RBI has been
sought and Outcome of decision is awaited.
C. A non-binding MOU was signed between SJVN, GMR, and IREDA on 09 September 2024, which
stipulated an equity investment of 5% for IREDA in GMR Upper Karnali Hydro Power Ltd (GUKHL),
Nepal & Karnali Transmission Company Pvt Ltd (KTCPL), Nepal each. The proposal for investment
of 5% equity by IREDA in GUKHL and KTCPL each, was approved by Ministry of New and Renewable
Energy (MNRE) and Department of Investment and Public Asset Management (DIPAM) respectively.
Subsequently, the Company has sought approval of RBI for the said investment vide letter dated 24
January 2025. RBI informed the Company vide letter dated 07 March 2025 that the request has not been
acceded to. Thereafter, the Company has again requested RBI for approval for the said investment
vide letter dated 26 March 2025, citing strategic importance of the project. Outcome of decision is
awaited.
12. Compliance with number of layers of companies
The Company has not invested in layers of companies as specified under Companies (Restriction on number
of Layers) Rules, 2017 during the current and previous year.
13. Compliance with approved Scheme(s) of Arrangements
There were no schemes of arrangements entered into by the Company which require approval by the
competent authority in terms of sections 230 to 237 of the Companies Act, 2013, during the current and
previous year.
14. Disclosure in respect of Indian Accounting Standard (Ind AS)-33 “Earnings per Share (EPS)"
A. Basic EPS
Basic earnings per equity share is calculated by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
year. The calculation of Basic EPS is as follows:
15. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of Assets"
The Company, at each balance sheet date, assesses whether there is any indication of impairment of any
asset and/or cash generating unit. If such indication exists, assets are impaired by comparing carrying
amount of each asset and/or cash generating unit to the recoverable amount being higher of the net selling
price or value in use. Value in use is determined from the present value of the estimated future cash flows
from the continuing use of the assets. The Company has no impairment loss during the current and previous
year.
This pertains to Income Tax cases for AY 2014-15 and AY 2020-21 which are pending before the CIT(Appeals), while case for
AY 2022-23 has been moved for rectification under Section 154 of the Income Tax Act. The Company is hopeful of a favourable
outcome in respect of the various issues covered under the appeal and thus except for the issues decided against the Company
in other years, for which reasonable provision has been made, no further provision has been considered as necessary.
For the Income Tax Cases of AY 2010-11 and AY 2012-13 to AY 2018-19 (except AY 2014-15, which is pending before CIT(A)),
the order for appeal effect of CIT(A) is still awaited. However, during FY 2023-24 the Company has provided ' 14.80 crores for
matters not allowed in the favour of the Company and the tax impact on the remaining matters, although not finally determined,
is not considered as a contingent liability as no outflow is considered probable for the items allowed. Any adjustment shall be
accounted for upon receipt of the respective orders. Further, the Company has filed appeal with the ITAT for matters not allowed.
For the Income Tax Cases of earlier years (AY 1998-99 - AY 2009-10), the Hon'ble High Court of Delhi decided the WRIT petition
in favour of the Company vide order dated 08 December, 2023 and pronounced that the assessment proceedings concerning
from AY 1998-99 to AY 2009-10, pursuant to the orders of the Tribunal dated 21 November 2014 and 29 May 2015, have become
time-barred and thus directed the A.O. to accept the returned income and pass the consequential orders. Such consequential
orders are awaited, and any adjustments shall be accounted for upon receipt of the respective orders.
2Service Tax and Goods & Service Tax (GST) cases
The Company had received a Notice of Demand/Order from the Commissioner, Adjudication, Central Tax, GST Delhi East dated
15 March 2022 creating demands on the Company amounting to ' 117.09 crores (excluding applicable interest) for financial
year 2012-13 to 2015-16. Although the Company contends that entire demand is barred by limitation, it has provided for ' 13.22
crores (previous year: ' 12.48 crores) including interest on conservative basis. Based on law and facts in the matter, Service
Tax demand (including interest) of ' 244.94 crores (previous year : ' 229.95 crores) has been disclosed as contingent liability.
Further, since the Company is a government enterprise, no mala fide intention can be attributed to it and thus, extended period
of limitation ought not to be invoked based on certain decisions of Hon'ble Supreme Court in such cases and hence the penalty
has not been considered for disclosure as a contingent liability. The Company has filed an appeal with CESTAT, New Delhi on 15
June 2022 in the matter and the same is pending.
The Company had received order dated 25 March 2022 from the office of Additional Director General (Adjudication) on recovery
of Service Tax on Guarantee Fee Paid to Government under Reverse Charge basis for the period April 2016 to June 2017 raising
a demand of ' 20.73 crores towards Tax, ' 20.73 crores towards penalty and applicable interest thereon. While the Company had
filed an appeal against the same before the Hon'ble CESTAT, Mumbai on 24 June 2022, it has made requisite provision towards
the Tax and interest thereon amounting to ' 69.36 crores (previous year : ' 63.10 crores) and penalty amount of ' 20.73 crores
(previous year ' 20.73 crores) has been disclosed as contingent liability.
The Company has received order dated 31 January 2024 from the office of Commissioner of Central Tax Appeals -1, Delhi, vide
which the appeal filed by the Company against recovery of GST on Guarantee Fee Paid to Government under Reverse Charge
basis for the period 01 July 2017 to 26 July 2018 has been rejected. While the Company is in the process of filing appeal with the
GST Appellate Tribunal, it has paid Tax amount of ' 13.28 crores under protest and made requisite provision towards Tax and
interest thereon amounting to ' 28.96 crores (previous year : ' 28.96 crores). The penalty amount of ' 15.26 crores (previous
period: ' 15.26 crores) has been disclosed as contingent liability.
3Others
Includes penalty for ' 0.03 crores (previous period: ' 0.03 crores) imposed by Ministry of Corporate Affairs (MCA) w.r.t. non¬
appointment of Woman Director. The Company being a government company has no control over appointment of directors and
hence the same has not been considered for provision. The Company has filed appeal before the Regional Director (NR] MCA.
The matter is still pending for adjudication. Also includes an amount of ' 4.62 crores (previous period: ' 3.78 crores) pertaining
to cases pending before Hon'ble High Court of Delhi in the form of Writ Petition against the order of disciplinary authority for
dismissal of staff from service of the Company. There is no interim order in this matter. Also includes ' 0.35 crores (previous
period: ' 0.35 crores] pertaining to withheld PRP of ex-Functional Directors of the Company pending clarification.
Apart from above, the Company has also furnished Bank Guarantee of ' 9.90 crores to NSE to act as a designated stock
exchange for the purpose of Initial Public Offer of the Company. Also, the above does not include amount pertaining to the
arbitration proceedings initiated by M/s Jackson Engineers Ltd against IREDA & Anr on 15 August 2024, in the matter pertaining
to deduction of Liquidated damages amounting to Rs. 13.46 crores by IREDA under contract agreements for Supply, erection
work, civil & allied works as well as for the delay in commissioning of project named 50 MW (AC) Solar PV Plant at Kasargod
Solar Park, District - Kasargod, Kerala. The Claimant (Jackson Engineers Ltd] has filed claim of approx. 156.55 crores and
IREDA has filed statement of defense on 30 October 2024 with a counter claim of Rs 47.34 crores. It is unlikely that the IREDA
may get any adverse order as M/s Jackson Engineers Ltd (the Claimant) was appointed by SECI, not by IREDA. However, if any
adverse order is passed by the tribunal, the same can be challenged under Section 34 of the Arbitration and Conciliation Act,
1996. In view of this , probable outflow is remote hence the same has not been provided or disclosed as a contingent liability.
(ii) Fair value of Investment Property:
The market value of the investment property has been assessed (as per the valuation done by a registered
IBBI valuer as defined under rule 2 of Companies (Registered Valuers and valuation) Rules, 2017) at ' 3.66
crores as on 31 March 2025 basis valuation report dated 09 April 2025 (previous year: ' 2.90 crores).
19. Disclosure as per Indian Accounting Standard (Ind AS) 107 - “Financial Instruments: Disclosures”
The Company has established a comprehensive policy framework to effectively manage credit risk, market
risk, liquidity risk, and operational risk. The Risk Management Policy has been developed under the
guidance of the Risk Management Committee (RMC) and approved by the Board of Directors. The Risk
Management Committee is a Board level Committee and the Board has overall responsibility for the Risk
Management Committee which is supplemented by Management level and corporate level committees
namely Asset Liability Committee, Credit Risk Management Committee and Operational Risk Management
Committee. The Risk Management Policy is periodically reviewed. The Risk Management Committee,
headed by an Independent Director, ensures independent risk oversight and full transparency in the risk
management process. The prudent Risk Management policies are ratified by the Board of Directors to ensure
compliance with RBI guidelines and SEBI (LODR) Regulations, 2015, which form the governing framework
for the company's business activities. This includes, but is not limited to, the roles and responsibilities
of Independent Directors (ID), as outlined in Schedule IV of the Companies Act 2013, Section 177(4)(vi),
Regulation 6.12 of the DPE Guidelines 2011, and SEBI LODR Regulation 4. These roles and responsibilities
are clearly defined for sub-Board committee members. The company also has a designated Chief Risk
Officer (CRO) in an advisory capacity, in line with the RBI notification.
A Foreign Exchange and Derivatives Risk Management Policy, and a Foreign Exchange and Derivative
Management Committee (FMC) is in place in the Company and hedging instruments such as forward
contracts, swaps etc. are used to lower/mitigate the currency and interest rate risks on the foreign
currency borrowings. Hedging instruments are used exclusively for hedging purpose and not as a trading
or speculative instrument.
The key risks which the Company faces during its business operations are Credit Risk, Market Risk,
Liquidity Risk, and Operational Risk. These risks are carefully identified, assessed, and managed through
the implemented risk management policies and procedures. This note explains the sources of risk which
the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the
financial statements.
Credit risk is the inherent risk in the lending operation and arises from lowering of the credit quality of the
borrowers and the risk of default in repayments by the borrowers. A robust credit appraisal system is in
place for the appraisal of the projects in order to assess the credit risk. The process involves appraisal of
the projects, rating by external agencies and assessment of credit risk, appropriate structuring to mitigate
the risk along with other credit risk mitigation measures. The Company splits its exposures into smaller
homogenous portfolio based on shared credit risk characteristic, as described below in the following order:-
Ý Secured/ Unsecured i.e., based on whether the loans are secured.
Ý Nature of security i.e., nature of security if the loans are determined to be secured.
Ý Nature of loan i.e., RE Sector to which the loan has been extended.
An assessment of whether credit risk has increased significantly since initial recognition is performed at
each reporting date by considering the change in the risk of default occurring over the remaining life of
the financial instrument. In determining whether the risk of default has increased significantly since initial
recognition, the Company considers more than 30 days overdue as a parameter. Additionally, the Company
considers any other observable input indicating a significant increase in credit risk.
The Company defines a financial instrument as in default when it has objective evidence of impairment at
the reporting date. It has evaluated these loans under Stage III on case-to-case basis based on the defaulted
time, performance/operation of the project. The Company recognizes impairment on financial instruments
based on ECL Model in line with Ind AS 109.
Collaterals and other credit enhancements
The amount and type of collateral required depends on an assessment of the credit risk. The main type
of collaterals are FDR/BGs, Charge on immovable property belonging to the promoters and corporate
guarantees on case-to-case basis.
(a) The company manages and controls credit risk by setting limits on the amount of risk it is willing to
accept for individual counterparties and for industry concentrations, and by monitoring exposures in
relation to such limits.
Liquidity risk refers to the risk that a company may not be able to meet its financial obligations due to a lack
of sufficient cash and marketable securities or the availability of funding. Prudent liquidity risk management
involves maintaining an appropriate level of cash, marketable securities, and committed credit facilities to
meet obligations when they become due. The management of the Company closely monitors the forecast
of the liquidity position and the availability of cash and cash equivalents based on expected cash flows,
including interest income and expense.
The Comprehensive Asset Liability Management Framework also outlines the framework for liquidity
risk management. The Company is also complying with the Liquidity Coverage Ratios requirement and
maintaining High-Quality Liquid Assets, in line with the requirements of the RBI guidelines.
Market risk is the possibility of loss mainly due to fluctuation in the interest rates and foreign currency
exchange rates. To mitigate the lending interest rate risk, the Company has a committee which periodically
reviews its lending rates based on market conditions, ongoing interest rates of the peers and incremental
cost of borrowings.
The Company's borrowings comprise of both floating rate and fixed rate borrowings linked to benchmark
rates as applicable. For the foreign currency borrowings, the Company mitigates the risk due to floating
interest rate by taking hedging arrangements and periodically monitoring the floating rate-linked portfolio.
The foreign exchange borrowings from overseas lending agencies expose the company to foreign currency
exchange rate movement risk. As per the Board approved policy, company mitigates the foreign currency
exchange rate risk by undertaking various derivative instruments to hedge the risk such as Principal only
swap, Currency and Interest Rate Swaps (derivatives transactions), forward contracts etc. These derivative
contracts, carried at fair value, have varying maturities depending upon the underlying contract requirement
and risk management strategy of the Company.
I. Foreign currency risk: -
The Company has foreign exchange exposure in the form of borrowings from overseas lending agencies
as part of its resources raising strategy. Large cross border flows together with the volatility may render
company's Balance Sheet vulnerable to exchange rate movements. As per its Board approved policy,
company mitigates the foreign exchange risk through Principal Only Swap (POS), Cross Currency & Interest
Rate Swap (CCIRS), Forwards, Interest Rate Swaps (IRS), Cross, Currency and Cross Currency Options,
structured / cost reduction products etc. (derivatives transactions). These foreign exchange contracts,
carried at fair value, have varying maturities depending upon the underlying contract requirement and risk
management strategy of the Company.
II. Cash flow and fair value interest rate risk: -
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates to the long-term foreign currency loans with floating interest rates and floating
interest rate term loan from banks. The Company manages its foreign currency interest rate risk according
to its Board approved Foreign Currency and Derivatives Risk Management policy.
The Company's fixed rate rupee borrowings are carried at amortized cost. They are therefore not subject to
interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a
change in market interest rates.
(c) Impact of Hedging activities
Derivative financial instruments and Hedge Accounting
The Company has a Board approved policy for undertaking derivative financial instruments, such as
Principal Only Swap (POS), Cross Currency & Interest Rate Swap (CCIRS), Forwards, Interest Rate Swaps
(IRS), Cross, Currency and Cross Currency Options, structured / cost reduction products etc. to hedge and
mitigate its foreign currency risks and interest rate risks.
Hedge ineffectiveness is determined at the inception of the hedge relationship, and through periodic
prospective effectiveness assessments to ensure that an economic relationship exists between the hedged
item and hedging instrument.
The Company applies the following effectiveness testing strategies:
- For cross currency swaps, option structures and interest rate swaps that exactly match the terms
of the terms of the hedged item, the economic relationship and hedge effectiveness are based on
the qualitative factors using critical terms match method. For option structures, the Company also
analyses the relationship between changes in the value of the hedging instrument and the hedged
item using regression analysis.
- The Company has established a hedge ratio of 1:1 for hedging relationships as the underlying risk and
notional amount of the hedging instruments are identical to the hedged items.
20. As per the Board approved Foreign Exchange and Derivative Risk Management Policy of the Company,
an open exposure on foreign currency borrowings (40% of outstanding amount) is permissible. The open
exposure as on 31 March 2025 is ' 2,360.71 crores (previous year: ' 2,062.30 crores) which is 27.68 %
(previous year: 22.18 %) of the outstanding foreign currency borrowing and is within the permissible limits.
Out of the said open exposure , part hedging has been done for EURO 30.38 Million (previous year: EURO
30.38 Million) by taking Principal Only Swap (USD/INR) for USD 33.73 Million (previous year: USD 33.73
Million) equivalent to ' 288.63 crores (previous year: ' 281.19 crores).
Further, JPY 2,371.50 Million (previous year: JPY 2,371.50 Million) has been hedged by taking Principal Only
Swap (USD/JPY) equivalent to USD 17.60 Million (previous year: USD 17.60 Million), amounting to ' 134.58
crores converted at rates applicable on 31 March 2025 (previous year: ' 130.65 crores converted at rates
applicable on 31 March 2024).
22. Registration of charges or satisfaction with Registrar of Companies (ROC)
For the year ended 31.03.2025
All forms were filed on time and the Company has no cases of any charges or satisfaction yet to be registered
with ROC beyond the statutory time limits.
For the year ended 31.03.2024
All forms were filed on time and the Company has no cases of any charges or satisfaction yet to be registered
with ROC beyond the statutory time limits.
23. Capital Management
The primary objective of the Company's capital management policy is to ensure compliance with regulatory
capital requirements. In line with this objective, the Company ensures adequate capital at all times and
manages its business in a way in which capital is protected, satisfactory business growth is ensured, cash
flows are monitored, and rating are maintained.
24. Department of Investment and Public Asset Management (DIPAM), MOF, GOI vide OM dated 18 September
2024 approved the issue of fresh equity through QIP route, in one or more tranches with dilution of GOI
shareholding in IREDA up to an extent of 7% of the paid-up equity of IREDA on post issue basis. Further,
the Board of Directors of IREDA in their 431st meeting held on 23 January 2025 accorded approval to raise
equity capital for an amount aggregating upto '5000 Crore in one or more tranches through QIP subject to
maximum dilution of 7% of the paid-up equity of IREDA on post issue basis in accordance with Securities
and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other
applicable laws and regulations. Shareholders of the Company during the 22nd EGM held on 24 February
2025 also approved the said proposal.
25. The equity shares of the Company were listed on BSE Limited and National Stock Exchange of India Limited
on 29 November 2023. The Company has received gross proceeds from the fresh issue of equity shares
amounting to ' 1,290.13 crores.
During the quarter ended 31 March 2025, the originally estimated issue expenses amounting to ' 31.18
crores have been actualized to ' 30.33 crores, as per the actual invoices against original estimated issue
expenses. Accordingly, net proceeds have increased from ' 1,258.95 crores to ' 1,259.80 crores and funds
utilization under object "Augmenting our capital base to meet our future capital requirements and onward
lending" have increased to ' 1,259.80 crores from ' 1,258.95 crores. The utilization of the net proceeds has
been summarized as below :-
26.
i. The Company has closed one credit line with AFD, which had a balance tenor of 60 months by prepaying
the entire outstanding amount of EUR 50 million basis review of its borrowing portfolio. Consequent,
to the full & final settlement of the subject credit line, the accumulated balance on account of Foreign
Exchange fluctuations (to be amortized over the tenor of the loan) in Foreign Currency Monetary item
translation reserve [FCMITR] and Other Comprehensive Income [OCI] was transferred to P&L account.
This entailed unwinding of associated hedge deals (loan was hedged to the extent of 91.41%) which
resulted in net gain of ' 7.80 crores. The overall impact of the pre closure of the loan has been taken
as a loss of ' 45.41 crores in Q1 FY 2024-25.
ii. The Company has signed a facility agreement to raise External Commercial Borrowing (ECB) from
SBI, Tokyo Branch for JPY 26 Billion, including a Green Shoe Option of JPY 10 Billion. This five-year
unsecured facility, with bullet payment at maturity, is set to strengthen the Company's global market
presence.
27. Utilization of Borrowed Funds and Share Premium
1. The Company has not advanced or loaned or invested any funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall
i. 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
ii. Provide any guarantee, security, or the like to or on behalf of the Ultimate Beneficiaries.
2. Further, the company has not received any fund from any person(s) or entity (ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the
company shall
i. 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
ii. Provide any guarantee, security, or the like to or on behalf of the Ultimate Beneficiaries.
The company is of the opinion that the money receivable with respect to the MNRE GOI Fully Serviced
Bonds (Refer Note 38(43) to Financial Statements) is not covered under the above disclosure as the
same is in accordance with the mandate / MOU of the GOI.
28. Disclosure in respect of Indian Accounting standard (Ind AS) -108 “Operating Segments"
(i) Operating segments
Based on the "management approach" as defined in Ind AS 108, the CMD, the Chief Operating Decision
Maker (CODM) evaluates the performance and allocates resources based on an analysis of various
performance indicators by business segments. The accounting principles used in the preparation
of the financial statements are consistently applied to record revenue and expenditure in individual
business segment and are as set out in the significant accounting policies.
The Company operates in two segments - Financing activities in the Renewable Energy (RE) & Energy
Efficiency (EE) sector and Generation of Power through Solar Plant operations at Kasaragod, Kerala.
Major revenue for the company comes from the segment of financing activities in the RE & EE sector.
The other operating segment - Generation of power through Solar Plant is not a reportable segment.
The company operates in India; hence it is considered to operate only in domestic segment. As such
considered as a single business/geographical segment for the purpose of Segment Reporting.
(ii) Information about major customers
There is no single external customer contributing 10 percent or more of our revenue.
(iii) Geographical Information
Revenue from external customers by location of operations and information about its non- current
assets by location of assets are as follows:
II. Fair value hierarchy
This section explains the judgement and estimates made in determining the fair values of financial
instruments that are
a) Recognized and measured at fair value and
b) Measured at amortized cost and for which fair values are disclosed in financial statements. To provide
an indication about reliability of the inputs used in determining fair value the company has classified
its financial instruments into three levels prescribed under accounting standard. An explanation on
each level follows underneath the table.
c) Considering the materiality, we have ignored discounting of employee loan and security deposits.
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes
listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity
instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as
on the reporting date. The mutual funds are valued using the closing NAV.
Level 2: Financial instruments that are not traded in active market (for example, traded bonds,) is determined
using other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: Technique which uses inputs that have a significant effect on the recorded fair value that are not
based on observable market data like unlisted equity securities.
A. Financial assets and liabilities measured at fair value - recurring fair value measurements- As on
31.03.2025*
The fair values for borrowings, loans to companies, debt securities are calculated based on cash flows
discounted using current lending rate. They are classified as Level 3 fair values in the fair value hierarchy
due to the inclusion of unobservable inputs, including own credit risk.
The fair values of non-current borrowings are based on discounted cash flows using a current borrowing
rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable
inputs, including own credit risk.
30. Disclosure in respect of Indian Accounting Standard (Ind AS)-115 “Revenue from Contracts with
Customers”
The Company is operating a solar power plant. The Power Purchase Agreement (PPA) has been signed
between the company and Kerala State Electricity Board Limited (KSEBL) on 31 March 2017 @ ' 4.95 per
unit or rate as approved by Kerala State Electricity Regulatory Commission (KSERC), whichever is lower.
31. SOLAR POWER PROJECT
The company entered into an MOU with Solar Energy Corporation of India (SECI) in the FY 2014-15 for
implementation of 50 MW Solar Project of the Company situated at Ambalathara Solar Park, Kasaragod
District, in the state of Kerala. The plant was commissioned in phase manner and fully commissioned
during FY 2017-18, executed by Jakson Engineers limited as EPC Contractor. It has been capitalized in the
books and the present capitalized cost is ' 319.36 crores, shown under property, plant and equipment. Refer
Note 12 to Financial Statements.
The PPA was signed between the Company and Kerala State Electricity Board Limited (KSEBL) on 31
March 2017 @ ' 4.95 /KWH or rate as approved by Kerala State Electricity Regulatory Commission (KSERC),
whichever is tower. Accordingly, the Company filed a petition for approval of the Power Purchase Agreement
with KSERC, which in its interim order dated 14 February 2018 had approved an interim tariff of ' 3.90 per
unit. Further to the same, KSERC, in its order dated 06 February 2019 had approved of the levelized tariff @
' 3.83 per unit. It has also further ordered as under:
• KSEB Ltd shall reimburse any tax paid on the Return on Equity (RoE), limited to the amount of equity
specified in this Order. For claiming the tax, developer shall furnish the proof of payment of such tax
to KSEB Ltd.
• KSEB Ltd shall reimburse the land lease paid by the Company / RPCKL, less amount received as
subsidy, if any, in addition to the above.
The said Order was challenged before Hon'ble APTEL by way of filling the appeal on 27 August 2019 for
allowance of certain costs towards expenditure incurred by the Company and paid to RPCKL to determine
the tariff. On rejection of said appeal, the Company filed a Review Petition with Appellate Tribunal (APTEL)
on 05 April 2022. The matter is now listed for final hearing.
The Company also filed Second Appeal no. 4634 of 2022 in the Hon'ble Supreme Court of India during the
pendency of the Review Petition before the Appellate Tribunal, only to save the Appeal from being barred by
limitation before the Hon'ble Court. The Hon'ble Supreme Court of India vide order dated 18 July 2022 had
given liberty to the Company to mention the mater for listing as and when the Review Petition is disposed
of. Notwithstanding, the generation income is being accounted for @ ' 3.83 per unit.
The Solar Project has been set up on Leasehold land for which lease charges are payable to Renewable
Power Corporation of Kerala Limited (RPCKL) from 07 October 2020 to 06 October 2043 (exemption upto
06 October 2020). As per KSERC Tariff order dated 06 February 2019, the Company is eligible to avail
reimbursement of such land lease charges paid to RPCKL.
However, the annual payment of land lease charges of ' 0.39 crores (as fixed by State Government from
time to time) and its recovery are under settlement in view of which no corresponding amounts are being
recognized as assets/liability. Other recoveries for Return on Equity (ROE), being uncertain will be accounted
on final resolution in the matter.
34. Details of Property Tax
The property tax demand raised up to 31 March 2025 in respect of all the residential and office premises
have been paid. The demand for property tax in respect of Office Space & Residential flats at NBCC Kidwai
Nagar is unascertainable.
35. Details of Benami Property
No proceedings have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the current
and previous period.
36. Recent accounting pronouncements / Standards / Amendments issued but not effective
There are no recent accounting pronouncements / Standards / Amendments which are yet to be effective as
on 31 March 2025.
37. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for
more than 45 days as on 31 March 2025 (previous year: ' Nil crores). This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to
the extent such parties have been identified on the basis of information available with the Company.
38. Disclosure on Corporate Social Responsibility
In terms of Section 135 of The Companies Act, 2013, the company is required to constitute a corporate
social responsibility (CSR) Committee of the Board of Directors, and the Company has to spend 2% of the
average net profits of the company's three immediately preceding financial years calculated as per section
198 of the Companies Act 2013. In accordance with the Companies (Corporate Social Responsibility Policy)
Amendment Rules, 2021 notified w.e.f. 22 January 2021, any unspent amount pursuant to any ongoing
project shall be transferred to unspent CSR Account in any scheduled bank within a period of thirty days
from the end of the financial year, to be utilized within a period of three financial years from the date of
such transfer. Any unspent CSR amount, other than for any ongoing project, shall be transferred to a Fund
specified under Schedule VII, within a period of six months of the expiry of the financial year. Further, if the
Company spends an amount in excess of the requirement under statute, the excess amount may be carried
forward and set off in three succeeding financial years against the amount to be spent.
40. Disclosure - for (AP & Others) cases involving Power Purchase Agreement (PPA) issue- Accounts with
over dues beyond 90 days but not treated as credit impaired
Seven borrowers have obtained interim orders from Hon'ble High Court of Andhra Pradesh / Telangana
and Hon'ble High Court of Delhi to not classify the account as Non-Performing Asset. Accordingly, the loan
outstanding of such borrowers have not been classified as Stage III Asset, even though the over dues are
more than 90 days old. However, the Company has created an adequate provision of ' 631.13 crores on Loan
outstanding of ' 1,202.21 crores in the books of accounts as per Expected Credit Loss (ECL) as on 31 March
2025 (previous year: provision of ' 521.31 crores on Loan outstanding of ' 873.67 crores) after considering
the financial and operational parameters of the projects. Though the accounts are not declared as NPA,
the income is booked into this account on cash /realization basis (i.e. any 'interest due and not received' is
reversed and not been taken as interest income).
41. One Time Settlement (OTS), Write - Offs (Loan Assets)
For the year ended 31.03.2025
During the year ended 31 March 2025, One OTS was sanctioned, out of which one account stands fully
settled. Total amount of ' 176.49 crores has been recovered against the said settled OTS resulting in income
of ' 85.56 crores and write back of impairment allowance of ' 54.13 crores.
For the year ended 31.03.2024
During the year ended 31 March 2024, Five OTS were sanctioned, out of which one account stands fully
settled. Total amount of ' 20.24 crores has been recovered against the said settled OTS resulting in income
of ' 4.69 crores and write back of impairment allowance of ' 2.48 crores.
42. MNRE / UNDP - IREDA Scheme Funds
The Company besides its own activities implements Programme on behalf of Ministry for New and Renewable
Energy on the basis of Memorandum of Understanding entered into with the said Ministry. In terms of
stipulations of each of the MOUs, MNRE has placed an agreed sum in respect of each Programme with the
company for Programme implementation. Interest on MNRE funds is accounted as and when received. As
the income generated by the MNRE Programme loans is not the income of the company and also the loan
assets belong to MNRE, the same is not considered for asset classification and provisioning purposes. On
closure of the respective Programme, the company is required to transfer the amount standing to the credit
of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the service charges, irrecoverable
defaults, and other dues as stipulated in the MoU.
a) Generation Based Incentives (GBI) / Capital Subsidy Scheme etc.: The Company is the Program
Administrator on behalf of Ministry of New & Renewable Energy (MNRE) for implementation of
Generation Based Incentive Scheme and Capital Subsidy for Wind and Solar Power Projects registered
under the Scheme. Under these schemes, fund is provided by MNRE to the company for the purpose of
disbursement of the same towards energy generation to the GBI claimants i.e., the Project Developers/
DISCOM as per the scheme. Therefore, essentially, the activity is receipt and utilization of funds. For
release of GBI fund by MNRE, the company is required to submit the Utilization Certificate along with
Audited Statement of Expenditure duly certified by a Chartered Accountant, for the previous tranche
of fund released by MNRE. The said requirement is fully complied with by the company, and nothing
further has been required by MNRE so far. The statutory auditors have not audited the accounts of the
scheme.
The amount due to MNRE on account of the above at the close of the year, along with interest on
unutilized funds kept in separate bank accounts as savings banks / short-term deposits etc. shown
as Bank balances other than included in Cash and Cash Equivalents (Refer Note 3 to Financial
Statements) and the corresponding liability is shown under the head Other Financial Liabilities (Refer
Note 22 to Financial Statements) in the Balance Sheet.
b) GEF -MNRE -United Nations Industrial Development Organization (UNIDO) Project: Ministry of New
and Renewable Energy (MNRE) and UNIDO have jointly implemented a GEF-5 funded project on using
biogas/bio-methane technology for waste to energy conversion, targeting innovations and sustainable
energy generation from industrial organic wastes. Under the said project UNIDO will provide funds
for subsidizing the interest rate by 5% for the project developers and the company is the fund handler.
During the year ended 31 March 2025, Nil claims (previous year : NIL Claims) have been made to
UNIDO. Funds amounting to ' 2.55 crores have been received by the company towards the 1st tranche
of USD 340000 in FY 2021-22. The Fund balance as on 31 March 2025 is Rs. 2.90 crores.
The funds so received have been kept in separate bank account as savings banks / short-term
deposits etc. shown as Bank balances other than included in Cash and Cash Equivalents (Refer Note
3 to Financial Statements) and the corresponding liability is shown under the head Other Financial
Liabilities (Refer Note 22 to Financial Statements) in the Balance Sheet.
c) Other MNRE Schemes where IREDA is fund handling Agency on behalf of MNRE: There are other
MNRE Schemes where IREDA is the fund handling agency on behalf of MNRE and the fund balances
are as under: -
The funds so received have been kept in separate bank account as savings banks / short-term
deposits etc. shown as Bank balances other than included in Cash and Cash Equivalents (Refer Note
3 to Financial Statements) and the corresponding liability is shown under the head Other Financial
Liabilities (Refer Note 22 to Financial Statements) in the Balance Sheet.
43. MNRE GOI Fully Serviced Bonds
In terms of O.M. No. F. 15 (4)-B (CDN)/2015 dated 03 October 2016 issued by Department of Economic Affairs,
Ministry of Finance, Government of India, the company was asked to raise an amount of ' 4,000.00 crores
through GOI fully serviced bonds for utilization of the proceeds for MNRE Schemes / Programs relating to
Grid Interactive Renewable Power, off-Grid/Distributed & Decentralized Renewable Power and Investment
in Corporations & Autonomous Bodies. A MoU between MNRE and the company has also been signed on
25 January, 2017 defining the role and responsibilities of both. Para No I of General Clauses at page 5 of
the MoU specifically defines that the borrowings of MNRE bonds shall not be considered as assets/liability
for any financial calculation by the Company. This implies that the amount raised by way of MNRE bonds
while shall be reflected in the borrowing as well as assets however, there will be no impact of the same on
company s borrowings/ Assets or Income / Expenses.
The Company had raised ' 1,640.00 crores GOI Fully Serviced Bonds on behalf of MNRE during the year
2016-17 and the same has been shown under Note 24 - Other Non-Financial liabilities. Against this an
amount of ' 1,638.79 crores has been disbursed up to 31 March 2025 (previous year: ' 1,638.79 crores)
as per the instructions of the MNRE for various plans/schemes. The said amount has been shown under
Note No. 17 - Other Non-Financial Assets - as amount recoverable from MNRE. The amount was kept in
MIBOR Linked deposit on which the accrued interest of ' 13.12 crores as on 31 March 2025 (previous year: '
12.28 crores) has been shown under Note No. 24 - Other Non-Financial liabilities. The balance cumulative
amount (inclusive of interest accrued / earned) as on 31 March 2025 is ' 14.31 crores (previous year: '
9.96 crores) which is kept in MIBOR Linked Term Deposit and remaining in Current Account amounting to
' 0.03 crores as on 31 March 2025 (previous year: ' 3.53 crores) which are shown under Note No. 3 - Bank
balances other than included in Cash and Cash Equivalents in respective sub heads.
During the year ended 31 March 2025, interest on the GOI fully Serviced Bond of ' 124.35 crores (previous
year: ' 124.35 crores) became due for payment to the investors. The same has been received from GOI and
paid to the investors. Details of Bonds so raised have been tabulated below:-
44. Subsidy / Incentive received from MNRE and handled on their behalf
A. Interest Subsidy
As per the Government policy, MNRE is providing interest subsidy which is released to borrowers
implementing MNRE programmes. Interest subsidy w.r.t. Co-generation, Small Hydro, Briquetting,
Biomass, Solar Thermal and Waste to Energy is released on NPV basis and for Solar and SPV programmes,
the same is done on actual basis.
The interest subsidy is passed on to the borrowers on half yearly basis subject to borrowers complying
with the terms and conditions of the sanction. The programme-wise details of standing balances of interest
subsidy are as under: -
46. Additionallnformation
a) Expenditure in Foreign Currency:
• On Travelling: ' 0.22 crores (previous year: ' 0.28 crores)
• Interest & Commitment expenses: ' 248.28 crores (previous year: ' 278.60 crores)
b) Earnings in Foreign Exchange:
• Interest: ' 1.75 crores (previous year: ' 4.62 crores)
c) The World Bank has sanctioned a Clean Technology Fund (CTF) Grant of USD 2 Million to assist in
financing of the Shared Infrastructure for Solar Parks Project under IBRD III Line of credit. During the
year, World Bank released ' 7.57 crores (previous year: ' 3.05 crores) including ' 6.92 crores towards
revenue expenses (previous year: ' 2.45 crores) and ' 0.65 crores towards capital expenses (previous
year: ' 0.60 crores) to the Company under the CTF Grant.
d) Details of Crypto Currency or Virtual Currency: The Company has not traded or invested in Crypto
currency or Virtual Currency during the current and previous year.
2. Subordinated to the claims of all other creditors of the Company (but pari passu inter se the holders
of the PDIs). The Company may defer the payment of Coupon, if:
i. The capital to risk assets ratio ("CRAR”) of the Company is below the minimum regulatory
requirement prescribed by RBI; or
ii. the impact of such payment results in CRAR of the Company falling below or remaining below
the minimum regulatory requirement prescribed by RBI.
3. In the event that making of any Coupon payment by the Issuer may result in net loss or increase the
net loss of the Issuer, the making of such of Coupon Payment by the Issuer shall be subject to the prior
approval of the RBI and shall be made on receipt of such approval provided that the CRAR remains
above the regulatory norm after the making of such payment.
4. The Coupon on the Bonds shall not be cumulative except in cases as in (2) above.
5. All instances of invocation of the lock- in clause shall be notified by the Issuer to the RBI or as otherwise
required under applicable law.
The invocation of the lock-in clause by the Issuer shall not be construed as a default committed by the
Issuer and shall not result in the occurrence of an 'Event of Default' (by whatsoever name called) in respect
of the Bonds
d. Dividend
The Board of Directors monitors the dividend pay-out to the shareholders of the Company and has a well-
defined distribution policy which is available on the website of the Company viz. https://www.ireda.in/
corporate-governance.
Being a Central Public Sector Enterprise ("CPSE”), the Company endeavors to declare the dividend as per
the CPSE Guidelines on Capital Restructuring, mandating every CPSE to pay minimum annual dividend of
30% of PAT or 4% of the net-worth, whichever is higher subject to the limit, if any, under any extant legal
provision. Financial sector CPSES like NBFCs may pay minimum annual dividend of 30% of PAT subject to
the limit, if any, under any extant legal provisions.
? Exchange Traded Interest Rate (IR) Derivatives - Nil
? Disclosures on Risk Exposure in Derivatives
a) Qualitative Disclosure
(i) The company recognizes various market risks including interest rate, foreign exchange
fluctuation and other assets liability mismatches.
(ii) All derivative deals are undertaken under the supervision of Forex Management Committee
(FMC). In order to protect the company from foreign exchange fluctuation and interest rate risk,
the company has entered into long term agreements with ISDA Banks to hedge such risk through
derivative instrument.
(iii) The company is taking active action for protection against exchange fluctuation risk by adopting
hedging instrument on case-to-case basis. In this regard, during the year ended 31 March
2025, the company has entered into various derivative contracts like Principal Only Swap (POS),
forwards etc. depending upon the risk appetite of the Company and market scenario prevailing.
(iv) The company has board approved Foreign Exchange and Derivatives Risk Management Policy,
which defines the maximum permissible limit of open exposure which cannot be more than 40%
of the foreign currency loan outstanding. The company's foreign currency loan open exposure as
on 31 March 2025 is 27.68 % (previous year: 22.18 %) of total foreign currency loan exposure.
vi) Institutional set-up for liquidity risk management
The Board of Directors of the Company has constituted the Asset Liability Management Committee, Risk
Management Committee and Investment Committee. The Asset Liability Management Committee, inter
alia, reviews the asset liability profile, risk monitoring system, liquidity risk management, funding and
capital planning, profit planning and growth projections, forecasting and analyzing different scenarios and
preparation of contingency plans.
Further, the Risk Management Committee, inter alia, monitors and measures the risk profile of the Company
and oversees the integrated risk management system of the Company. The Company manages liquidity risk
by maintaining sufficient cash/treasury surpluses. Management regularly monitors the position of cash
and cash equivalents. Assessment of maturity profiles of financial assets and financial liabilities including
debt financing plans and maintenance of balance sheet liquidity is considered while reviewing the liquidity
position.
N. Disclosure on Liquidity Coverage Ratio: -
RBI vide its Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based
Regulation) Directions, 2023 as amended from time to time issued the guidelines covering liquidity risk
management for NBFCs wherein RBI introduced Liquidity Coverage Ratio (LCR) applicable on all non¬
deposit taking NBFCs with asset size of more than '5,000 crore. The guidelines aim to maintain a liquidity
buffer in terms of LCR by ensuring that the NBFCs have sufficient High Quality Liquid Assets (HQLA) to
survive any acute liquidity stress scenario lasting for next 30 days. As per the guidelines, LCR is represented
by Stock of HQLA divided by Total Net Cash Outflows (stressed outflow less stressed inflows) over the next
30 calendar days. HQLA are defined by RBI as the liquid assets that can be readily sold or are immediately
convertible into cash at little/no loss of value or can be used as collateral to obtain funds in stress situations.
The Company has complied with LCR requirement w.e.f. 01 December 2020 against stipulated requirement
of minimum LCR of 50%, progressively increasing up to the required level of 100% by 01 December 2024.
The Company is maintaining LCR in INR only; hence there is no currency mismatch.
Additional Disclosures
a. Exposure to various sectors - Refer Note 38(48F) to Financial Statements.
b. Related Party Disclosure - Refer Note 38(9) to Financial Statements.
c. During the FY 2024-25, there has been no instances of breach of covenants in respect of loans availed or
debt securities issued (previous year: Nil)
d. Divergence in Asset Classification and Provisioning in FY 2024-25 - Nil (previous year: Nil)
e. Disclosure on modified opinion, if any, expressed by auditors, its impact on various financial items and views
of management on audit qualifications as on 31 March 2025 - Nil (previous year: Nil)
f. Items of income and expenditure of exceptional nature for the year ended 31 March 2025 - Nil (previous
year: Nil)
g. Disclosure of complaints - Refer Note 38(48J) to Financial Statements.
h. Prior Period Items & Changes in Accounting Policy for the year ended 31 March 2025 - Nil
i. Break up of 'Provisions and Contingencies' shown under the head Expenditure in Profit and Loss Account
infrastructure project assets financed by the Company that had reached their commercial operations date (COD) and had
been operational for over a year. However, effective 31 March 2025, the company has applied a 100% risk weight to these
assets. Accordingly, CRAR of corresponding period as at 31 March 2024 has been restated.
7. Gross Non-Performing Assets Ratio = Gross Non-Performing Assets / Gross Loan Assets
8. Net Non-Performing Assets Ratio = Net Non-Performing Assets / Net Loan Assets
51. The figures are rounded off to the nearest Rupees (?) in Crores (except number of shares and EPS). Previous
year figures have been re-arranged/re-grouped wherever considered necessary to make them comparable
with the current year figures. Year ended 31 March 2025 and 31 March 2024, refers to year-to-date (YTD)
figures for FY25 and FY24 respectively. Figures in 0.00 represent value less than ' 50,000/-
As per our Audit Report of even date For and on Behalf of Board of Directors
For Shiv & Associates
Chartered Accountants
ICAI Regn No.- 009989N
Sd/- Sd/- Sd/-
CA Shiv Prakash Chaturvedi Dr. Bijay Kumar Mohanty Pradip Kumar Das
Partner Director (Finance) Chairman & Managing Director
Membership No.-085084 DIN No. 08816532 DIN No. 07448576
Place : New Delhi Sd/-
Date : 15.04.2025 Ekta Madan
Company Secretary & Compliance
Officer
ACS. No. 23391
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