2.22 Provisions and Contingencies

a) Provisions

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. If the effect of the time value of money
is material, provisions are discounted. Unwinding of
the discount is recognised in the Statement of Profit

and Loss as a finance cost. Provisions are reviewed
at each Balance Sheet date and are adjusted to
reflect the current best estimate.

b) Contingencies

Contingent liabilities are disclosed on the basis
of judgment of the management / independent
experts. These are reviewed at each balance
sheet date and are adjusted to reflect the current
management estimate.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
Notes to the Financial Statements.

Contingent assets are possible assets that
arise from past events and whose existence will
be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company.
Contingent assets are disclosed in the financial
statements when inflow of economic benefits is
probable on the basis of judgment of management.
These are assessed continually to ensure that
developments are appropriately reflected in the
financial statements.

2.23 Share capital and Other Equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue
of new shares are shown in equity as a deduction,
net of tax, from the proceeds.

Self-insurance reserve is created @ 0.12% p.a. on
Original Gross Block of Property, Plant and Equipment
(including considered as Lease receivables) and
value of Inventory except ROU assets and assets
covered under insurance as at the end of the year
by appropriation of current year profit to mitigate
future losses from un-insured risks and for taking
care of contingencies in future by procurement
of towers and other transmission line materials
including strengthening of towers and equipment
of AC substation. The Reserve created as above
is shown as "Self Insurance Reserve" under 'Other
Equity'.

2.24 Prior Period Items

Material prior period errors are corrected
retrospectively by restating the comparative
amounts for prior period presented in which the
error occurred or if the error occurred before the

earliest period presented, by restating the opening
balance sheet.

2.25 Operating Segments

The Board of Directors is the Company's 'Chief
Operating Decision Maker' or 'CODM' within the
meaning of Ind AS 108 'Operating Segments'.
CODM monitors the operating results of its
business segments separately for the purpose of
making decisions about resource allocation and
performance assessment. Segment performance
is evaluated based on profit or loss and is measured
consistently with profit or loss in the financial
statements.

The operating segments have been identified on
the basis of the nature of products / services.

• Segment revenue includes sales and other
income directly identifiable with / allocable
to the segment including inter-segment
transactions.

• Expenses that are directly identifiable with
/ allocable to segments are considered for
determining the segment result. Expenses
which relate to the Company as a whole
and not allocable to segments are included
under unallocable expenditure.

• Income which relates to the Company as
a whole and not allocable to segments is
included in unallocable income.

• Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocable assets and liabilities
represent the assets and liabilities that relate
to the Company as a whole and not allocable
to any segment.

• Segment capital expenditure is the total
cost incurred during the period to acquire
property, plant and equipment, and
intangible assets.

2.26 Earnings per Share

Basic earnings per share is computed using the
net profit or loss for the year attributable to the
shareholders and weighted average number of
shares outstanding during the year.

Diluted earnings per share is computed using the
net profit or loss for the year attributable to the
shareholders and weighted average number of
equity and potential equity shares outstanding
during the year, except where the result would be
anti-dilutive.

Additionally, basic and diluted earnings per
share are computed using the earnings amounts
excluding the movements in Regulatory Deferral
Account Balances.

2.27 Statement of Cash Flows

Statement of Cash flows is prepared as per indirect
method prescribed in the Ind AS 7 'Statement of
Cash Flows'.

2.28 Non-current assets (or disposal groups)
held for sale and Discontinued Operation

Non-current assets and disposal groups are
classified as held for sale if their carrying amount will
be recovered principally through a sale transaction
rather than through continuing use. This condition
is regarded as met only when the asset (or disposal
group) is available for immediate sale in its present
condition subject only to terms that are usual and
customary for sale of such assets (or disposal
groups) and its sale is highly probable.

Assets and liabilities classified as held for sale are
measured at the lower of their carrying amount
and fair value less costs to sell and presented
separately in the Balance Sheet. An impairment
loss is recognised for any initial or subsequent
write-down of the asset (or disposal group) to fair
value less costs to sell. A gain is recognised for any
subsequent increases in fair value less costs to sell
of an asset (or disposal group), but not in excess
of any cumulative impairment loss previously
recognised. A gain or loss not previously recognised
by the date of the sale of the non-current asset (or
disposal group) is recognised at the date of de¬
recognition.

A discontinued operation is a component of the
company that comprises the operations and cash
flows of which can be clearly distinguished from
the rest of the Company which either has been
disposed of, or classified as held for sale, and

• represents a separate major line of business
or geographic area of operations;

• is part of a single co-ordinated plan to
dispose of a separate major line of business
or geographic area of operations; or

• is a subsidiary acquired exclusively with a
view to resale.

Discontinued operations are excluded from the
results of continuing operations and are presented
as a single amount as profit or loss after tax from
discontinued operations in the statement of profit
and loss.

2.29 Business Combinations

Business combinations involving entities that are
controlled by the Company are accounted for using
the pooling of interest method wherein the assets
and liabilities of the combining entities are reflected
at their carrying amounts and no adjustments are
made to reflect fair values or recognise any new
assets or liabilities.

The financial information in the financial
statements in respect of prior periods is restated
as if the business combination had occurred
from the beginning of the preceding period in the
financial statements, irrespective of the actual date
of the combination. However, where the business
combination had occurred after that date, the prior
period information is restated only from that date.
The balance of the retained earnings appearing
in the financial statements of the transferor is
aggregated with the corresponding balance
appearing in the financial statements of the
transferee. The identity of the reserves is preserved,
and the reserves of the transferor become the
reserves of the transferee. The difference, if any,
between the amounts recorded as share capital
issued plus any additional consideration in the form
of cash or other assets and the amount of share
capital of the transferor is transferred to capital
reserve.

3. Critical Estimates and Judgments

The preparation of financial statements
requires the use of accounting estimates which
may significantly vary from the actual results.
Management also needs to exercise judgment
while applying the company's accounting policies.

This note provides an overview of the areas that
involved a higher degree of judgment or complexity,
and of items which are more likely to be materially
adjusted due to estimates and assumptions turning
out to be different than those originally assessed.

The areas involving critical estimates or
judgments are:

Revenue Recognition:

Transmission income is accounted for based
on tariff orders notified by the CERC. In case of
transmission projects where final tariff orders are
yet to be notified, transmission income is accounted
for as per tariff regulations and other orders of
the CERC in similar cases. Differences, if any, are
accounted on issuance of final tariff orders by the
CERC. Transmission income in respect of additional
capital expenditure incurred after the date of
commercial operation is accounted for based on
expenditure incurred on year to year basis as per
CERC tariff regulations.

Regulatory Deferral Balances:

Recognition of Regulatory Deferral Balances involves
significant judgments including about future tariff
regulations since these are based on estimation of
the amounts expected to be recoverable/payable
through tariff in future.

Estimation of defined benefit obligation:

Estimation of defined benefit obligation involves
certain significant actuarial assumptions which are
listed in Note 63.

Estimates and judgments are periodically
evaluated. They are based on historical experience
and other factors, including expectations of future
events that may have a financial impact on the
company and that are believed to be reasonable
under the circumstances.

Useful life of property, plant and equipment:

The estimated useful life of property, plant and
equipment is based on a number of factors including
the effects of obsolescence, demand, competition
and other economic factors (such as the stability
of the industry and known technological advances)
and the level of maintenance expenditures required
to obtain the expected future cash flows from the
asset.

The Company reviews at the end of each reporting
date the useful life of plant and equipment, other
than the assets of transmission business which are
governed by CERC Regulations, and are adjusted
prospectively, if appropriate.

Provisions and contingencies:

The assessments undertaken in recognising
provisions and contingencies have been made in
accordance with Ind AS 37 "Provisions, Contingent
Liabilities and Contingent Assets". The evaluation of
the likelihood of the contingent events has required
best judgment by management regarding the
probability of exposure to potential loss. Should
circumstances change following unforeseeable
developments, this likelihood could alter.

Assets held for sale:

Significant judgment is required to apply the
accounting of non-current assets held for sale
under Ind AS 105 - "Noncurrent assets held for
sale and discontinued operations". In assessing
the applicability, management has exercised
judgment to evaluate the availability of the asset
for immediate sale, management's commitment
for the sale and probability of sale within one year to
conclude if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use.

Income Taxes:

Significant estimates are involved in determining
the provision for current and deferred tax, including
amount expected to be paid/recovered for
uncertain tax positions.

Note 4: Property, Plant and Equipment (Contd.)

Further Notes:

a) The Company owns 7,630 hectare (Previous Year 7,585 hectare) of land amounting to f3,340.61crore (Previous
Year f3,135.38crore) which has been classified into freehold land 6,366 hectare (Previous Year 6,321 hectare)
amounting to f2,721.98crore (Previous Year f2,515.03crore) and Right of Use - Land 1,264 hectare (Previous Year
1,264 hectare) amounting to f618.63crore (Previous Year f620.35crore).

b) Freehold land acquired by the company includes 47.23 hectare (Previous Year 33.93 hectare) amounting to
f58.40crore (Previous Year f24.91crore) in respect of land acquired by the company for which only mutation in
revenue records is pending.

c) The transmission system situated in the state of Jammu and Kashmir have been taken over by the company
w.e.f. 01 April 1993 from National Hydroelectric Power Corporation of India Limited (NHPC) upon mutually agreed
terms pending completion of legal formalities.

d) Right of Use - Land includes area of 16.31 hectare (Previous Year 16.31 hectare) amounting to f107.52crore
(Previous Year f107.52crore) in respect of land acquired on perpetual lease basis and hence not amortised.

e) 5.63 hectare (Previous Year 5.63 hectare) having value of f0.04crore (Previous Year f0.04crore) has been
transferred to National High Power Test Laboratory Pvt. Ltd. on right to use without granting ownership.

f) During the earlier year, freehold land of 106.47 hectare amounting to f1.84crore is re-classified as Investment
Property. Refer note no. 6 for disclosure on Investment Property.

g) Refer note no. 50 for disclosure on Right of Use Assets as per Ind AS 116 - "Leases".

h) Refer note no. 23 for information on property, plant and equipment pledged as security by the company.

i) Refer note no. 64 (a) for details of immovable properties where title deeds are not in the name of the company.

Further Notes:

a) Materials with Contractors amounting to f41.99crore (Previous Year f19.43crore) in respect of commissioned
lines is pending for reconciliation. However, reconciliations are carried out on ongoing basis.

b) In respect of projects having Capital Work in Progress of f2,743.21crore (Previous Year f3,035.82crore), a petition
has been filed with CERC proposing a Deemed date of commercial operation which is yet to be approved and
hence the same was not capitalised to Property, Plant and Equipment as per the accounting policy of the
company.

c) Refer note no. 64 (b) for aging of Capital Work in Progress (CWIP) &Refer Note 64 (c) CWIP completion schedule
for the projects whose completion is overdue or has exceeded its cost compared to its original plan.

Further Notes:

a) In respect of projects having Intangible assets under development of f6.24crore (Previous Year f33.46crore),
a petition has been filed with CERC proposing a Deemed date of commercial operation which is yet to be
approved and hence the same was not capitalised to Intangible Assets as per the accounting policy of the
company.

b) Refer note no. 64 (d) for aging of Intangible assets under development & Refer Note 64 (e) Intangible assets
under development completion schedule for the projects whose completion is overdue or has exceeded its
cost compared to its original plan.

Note 9: Investments (Contd.)

Upon receipt of approval of Ministry of Power, with the approval of Board and Shareholders by way special
resolution, RPTPL will initiate actions for voluntary winding up to close the company. The company is in the
process of winding up.

4) Refer remarks at Note No 11 for Powergrid Vemagiri Transmission Limited.

5) During the year, a provision of f 210.39 crore (previous year f 51.70 crore) has been made towards impairment
of investment in Energy Efficiency Services Limited. Refer note 61(A)(vi) for reconciliation of allowance for
impairment.

6) As part of revival plan of Joint venture (JV) Company, loan given by all JV partners to JV company was
converted to equity, additional loan of f94.71crore was provided by the company, shareholding of the company
has increased to 50% through additional equity contribution by the company and transfer of shares by other
JV partners at notional consideration. Impairment of investment in JV Company to the extent of f 10.88 crore
(previous year f 25.65 crore) has been reversed during the year. Refer note 61(A)(vi) for reconciliation of
allowance for impairment.

7) The Company received during the current year f 35.49 crore (previous year f 29.62 crore) from PG InvIT
towards repayment of SPV Debt. Consequently, the same has been reduced from the cost of the investment.

8) Incorporated on 27.11.2024 for development of Intra-State Transmission System in the State of Rajasthan with
an equity participation of 74% by the company and 26% by Rajasthan Rajya Vidyut Prasaran Nigam Limited.

9) The Board of Directors of the company have, in its meeting held on 16 December 2023, approved the proposal
for purchase of 1,30,000 no. equity shares held by IL&FS Energy Development Co Ltd in Power Transmission
Company Nepal Limited (Joint venture of the company). Presently, approvals from relevant authorities is
awaited.

10) POWERGRID & Sikkim Urja Ltd are the Joint venture partners in Sikkim Power Transmission Limited & holds
26% & 74 % equity, respectively as per Shareholding agreement. On call of additional equity by Sikkim Power
Transmission limited, POWERGRID contributed their share while the other JV partner has not yet contributed
their share of money. Consequently, the holding of POWERGRID increased to 30.92% against 26% provided in
shareholding agreement.

11) Refer Note 66 (c) & (d) for disclosure of merger/amalgamation of subsidiaries of the Company.

Further Notes:

@ Refer Note 50 for disclosure as per Ind AS 116 - 'Leases'.

$ Refer Note 46 for disclosure as per Ind AS 115 'Revenue from Contracts with Customers'.

# Bank deposits against designated accounts for consultancy work.

## In the FY 2018-19, the Company issued 'GoI fully serviced bonds' for an amount of f 3487.50 crore for raising of
Extra Budgetary Resources (EBR) for GoI scheme of Power System Development Fund (PSDF) in terms of letter
No: 7/1/2018-OM dated 21st January, 2019 of Ministry of Power, Govt. of India (GoI) for meeting accrued liabilities
for creation of Capital Assets. The repayment of principal and the interest payment on such bonds shall be
met by GoI. An amount of f 3487.50 Crore from bond issue has been recognised as Grant in aid in earlier
year.

* Details of advances to related parties are provided in Note 55.

** The Central Commission vide order dated 06/04/2015 in Petition No.127/2012 had directed that 80% of the
acquisition price incurred by the Company for Vemagiri Transmission Company Limited (VTSL) shall be
reimbursed by the Long-Term Transmission Customers (LTTCs) and balance 20% along with the expenditure
incurred by VTSL from the date of acquisition till the liquidation of the company shall be borne by the Company.
Aggrieved thereby, the Company filed a Review Petition, wherein Central Commission, vide order dated
20.10.2016, observed that there were sufficient grounds to reconsider the Company's liability towards the 20%
acquisition cost. Accordingly, Central Commission directed that the issue of the Company's liability shall be
decided afresh, after the final disposal of the appeals pending before the Hon'ble Tribunal for Electricity.

Before the Hon'ble Tribunal, the matter underwent multiple hearings between 2020 and 2024. Hon'ble
Tribunal finally pronounced the judgment on 22.07.2025 wherein it held that Company is not liable to bear
the acquisition cost paid by it under compelling circumstances and that such acquisition cost is required to
be borne by RECPDCL (erstwhile RECPTCL). Accordingly, Hon'ble Tribunal remanded matter back to Central
Commission with a direction to take appropriate measures in accordance with law to give effect to the same.
Aggrieved by the said judgment, RECPDCL filed Civil Appeal Nos. 11011-11013 of 2025 before the Hon'ble Supreme
Court of India. The Hon'ble Supreme Court, by order dated 10.10.2025, dismissed the appeals and upheld the
Hon'ble Tribunal's order dated 22.07.2025, observing that no ground was made out to interfere with the remand
issued on the principles of fairness and restitution.

Thereafter, the matter was heard by the Central Commission in remand proceedings, wherein Company
submitted that it was entitled for principal acquisition cost Rs. 18.27 crores , carrying cost amounting to Rs. 31.52
crores calculated for period of date of acquisition, i.e., 18.04.2012 to 31.12.2025, operational cost relating to SPV
expenditure amounting to Rs. 1.21 crores and legal expenditure incurred. However, the Central Commission, vide
its order dated 07.03.2026, held that the direction in the Hon'ble Tribunal judgment being limited to adjustment
of the acquisition cost paid by Company, it was impermissible to consider Company's claim towards SPV
expenditure, carrying cost and litigation costs incurred by Company. Accordingly, it directed RECPDCL to pay
only an amount of Rs. 18.27 crores to Company towards the acquisition cost of the SPV within thirty days from
the date of the order.

In pursuance of the said order dated 07.03.2026, RECPDCL paid the acquisition cost of Rs.18.27 crores to
Company. Company has received the said amount towards SPV acquisition cost on 21.04.2026. Accordingly,
the provision for doubtful advances of Rs 18.27 crore has been reversed during the year.

In view of the disallowance, the Company filed an Appeal before the Hon'ble Tribunal on 21.04.2026 vide DFR No.
196 of 2026 on limited grounds confined to the carrying cost, operational cost towards SPV expenditure, and
litigation expenses.

a) Refer note no. 46 for disclosure as per Ind AS 115 'Revenue from Contracts with Customers' & note no. 55. for
details of trade receivables from related parties.

b) Trade Receivables includes Unbilled Receivables relating to transmission segment amounting to f7,623.30crore
(Previous Year f3,865.59crore) out of which transmission charges for the month of March including arrear bills
for previous quarters, of the financial year amounting to f4,985.14crore (Previous Year f2,653.36crore) billed to
beneficiaries in the subsequent financial year. Trade receivable also includes non-tariff income to be passed
on to DICs and revenue from other business (telecom) to be passed on to DICs amounting to f122.15crore
(Previous Year f104.79crore) is netted off against unbilled receivables as the same will be billed on net basis.

c) Based on arrangements between the Company, banks and beneficiaries, the bills of the beneficiaries have been
discounted. Amount realised by the Company through discounting and yet to be settled by the beneficiaries to
banks as at the end of the year is shown as Borrowings (refer note no. 28) as bills are discounted with recourse
to the company. In case of any claim on the company from the banks in this regard, entire amount shall
be recoverable from the beneficiaries along with surcharge. The Outstanding Trade receivables includes the
amount of f0.00crore (Previous Year f209.37crore) that has been discounted with recourse to the company &
the same has been shown as Borrowings (refer note no. 28). Total Trade receivables (including non-current)
net off amount realised through discounting of bills is f10,848.88crore (Previous Year f7,105.60crore).

d) Aging of Trade Receivables is as follows:

Further Notes:

@ Refer Note 50 for disclosure as per Ind AS 116 - 'Leases'.

# Refer Note 46 for disclosure as per Ind AS 115 'Revenue from Contracts with Customers'.

@@ Refer Note 61 for disclosure of hedging activities.

## Details of related parties are provided in Note 55.

### Others include:-

(a) an amount of f Nil (Previous Year f 59.88 crore) recoverable from M/s Delhi Transco Limited towards
transfer of 2.427 hectare (Previous Year 2.427 hectare) land at Tughlaqabad and Dwarka Sub-station
pending completion of legal formalities for transfer of title.

(b) amount recoverable from Customers, Advance rent for Residential and Office accommodation, Other
advance etc.

The Board of Directors in their meeting held on 09 March, 2026 has accorded in principle approval for sale of
entire stake in Central Transmission Utility of India Limited (CTUIL), a wholly owned subsidiary of Company, to Grid
Controller of India Limited (GRID-INDIA). Accordingly, investment in CTUIL is classified as Asset held for sale in line
with Ind AS 105.

The Board of Directors in their meeting have accorded in principle approval for sale of entire stake in Joint
Ventures (JVs) of the Company namely Torrent Power Grid Limited (ceased to be JV w.e.f 30 May 2025) & Sikkim
Power Transmission Limited on 19 May 2025 and Parbati Koldam Transmission Company Limited on 30 July 2025.
Accordingly, investment in these JV Companies is classified as Asset held for sale in line with Ind AS 105.

The Company had monetised 100% holding in Vizag Transmission Limited (VTL) and 74% holding in Kala Amb
Transmission Limited (KATL), Jabalpur Power Transmission Limited (JPTL), Warora Transmission Limited (WTL) and
Parli Power Transmission Limited (PPTL) through POWERGRID Infrastructure Investment Trust ('PGlnvlT/ Trust') in FY
2021-22. The balance 26% of SPVs i.e. KATL, JPTL, WTL & PPTL has been transferred, which was classified as "Assets
Classified as Held for Sale", to PGlnvlT on 30 December 2024. Profit on above transaction (net of related expenses)
amounting to f 245.60 crore is included in "Other income" in previous year.

2) Details of allotment of Bonus Shares during the immediately preceding five years as on the Balance Sheet

date:

a) During the FY 2023-24, the Company had issued 232,51,50,955 equity shares of f 10/- each as fully paid
bonus share in the ratio of one equity share of f 10/- each for every three equity shares held on record date
of 12 September 2023 by utilising Securities Premium.

b) During the FY 2021-22, the Company had issued 174,38,63,216 equity shares of f 10/- each as fully paid
bonus share in the ratio of one equity share of f 10/- each for every three equity shares held on record date
of 30 July 2021 by utilising Securities Premium.

3) The Company has only one class of equity shares having face value of f10/- per share.

4) The holders of equity shares are entitled to receive dividends as declared from time to time and to voting rights

proportionate to their shareholding at meetings of the Shareholders.

5) Shareholding of Promoters and Shareholders holding more than 5% equity shares of the Company

Further Notes:

## During the current financial year, the company has securitised its cashflows from Eight of its subsidiaries viz.
POWERGRID ERWR Power Transmission Limited, POWERGRID Raipur Pool Dhamtari Transmission Limited, POWERGRID
Dharamjaigarh Transmission Limited, POWERGRID KPS3 Transmission Limited (these four companies merged
with POWERGRID Khavda II-C Transmission Limited with effect from 1st April 2024), POWERGRID Sikar Transmission
Limited, POWERGRID Aligarh Sikar Transmission Limited, POWERGRID Bhadla Transmission Limited, POWERGRID ER
NER Transmission Limited and raised total f 3,704 crore in one tranche to part finance its capital expenditure in
pursuance of National Monetization Pipeline (NMP).

Note 23: Borrowings (Contd.)

$ During the previous year, the company has securitised its cashflows from Ten of its subsidiaries viz. POWERGRID Bhind
Guna Transmission Limited, POWERGRID Ajmer Phagi Transmission Limited, POWERGRID Fatehgarh Transmission
Limited, POWERGRID Bikaner Transmission System Limited, POWERGRID Rampur Sambhal Transmission Limited,
POWERGRID Ramgarh Transmission Ltd, POWERGRID Jawaharpur Firozabad Transmission Limited, POWERGRID
Meerut Simbhavali Transmission Limited, POWERGRID Gomti Yamuna Transmission Limited, POWERGRID Neemuch
Transmission System Limited and raised total f 5,705 crore in two tranches to part finance its capital expenditure
in pursuance of new National Monetization Pipeline (NMP).

@ During the FY 2023-24, the company has securitised its cashflows from four of its subsidiaries viz. Powergrid
Bhuj Transmission Limited, Powergrid Khetri Transmission System Limited, Powergrid Medinipur Jeerat Transmission
System Limited and Powergrid Varanasi Transmission System Limited and raised total f 5,700 crore in three
tranches to part finance its capital expenditure in pursuance of new National Monetization Pipeline (NMP).

# During the FY 2022-23, the company has securitised its cashflows from three of its subsidiaries viz. Powergrid
Southern Interconnector Transmission System Limited, Powergrid Mithilanchal Transmission Limited and Powergrid
NM Transmission Limited and raised total f 3,412 crore in three tranches to part finance its capital expenditure in
pursuance of new National Monetization Pipeline (NMP).

Details of terms of repayment and rate of interest

1 Secured Foreign Currency Loans (Guaranteed by GoI) carry floating rate of interest linked to Daily SOFR. These
loans are repayable in semi annual instalment, as per terms of the respective loan agreement, commencing
after moratorium period of 3 to 5 years except for one loan f 468.94 Crore (Previous year f 425.52 Crore) which
carry fixed rate of interest of 0.25% p.a.

2 Secured other Foreign Currency Loans carry floating rate of interest linked to 6M (EURIBOR). These loans are
repayable in semi annual instalment, as per terms of the respective loan agreements, commencing after
moratorium period of 3 to 5 years.

3 Secured Rupee loans from banks carry floating rate of interest linked to 3M MCLR. These loans are repayable
in semi annual instalments, as per terms of the respective loan agreements, commencing after moratorium
period of 5 years.

4 Unsecured Foreign Currency Loans (Guaranteed by GoI) carry fixed rate of interest ranging from 1.63% p.a.
to 2.30% p.a. These loans are repayable in semi annual instalments as per terms of the respective loan
agreements.

5 Unsecured Foreign Currency Loans carry floating rate of interest linked to 6M (STIBOR/EURIBOR). These loans
are repayable in semi annual instalments as per terms of the respective loan agreements, commencing after
moratorium period as per terms of the respective loan agreements.

6 Unsecured Foreign Currency Loans carry floating rate of interest linked to 3M TONA. This loan is repayable in five
equal annual installments as per the terms of the loan agreement.

7 Unsecured Foreign Currency Loans carry floating rate of interest linked to 6M TONA. This loan is repayable in
three equal annual installments as per the terms of the loan agreement.

8 Unsecured Rupee loans from banks carry floating rate of interest linked to 3 months MCLR or Repo rate or 3
Months T Bill Rate. These loans are repayable in semi annual installments commencing after moratorium
period as per terms of the respective loan agreements.

9 There has been no default in repayment of loans or payment of interest thereon as at the end of the year.

10 The company has used the borrowings from banks and financial institutions for the specified purpose for which
it was taken as at balance sheet date. As on 31.03.2026, an amount of f 753.03 crore remained unutilised
from proceeds of Bonds LXXXIII Issue is invested in FDRs with scheduled commercial banks. (As on 31.03.2025,
an amount of f 336.43 crore remained unutilised from proceeds of Bonds LXXX Issue is invested in FDRs with
scheduled commercial banks.)

Details of Securities

1 Domestic Bonds are Secured by way of Registered Bond Trust Deed ranking pari passu on immovable property
situated at Mouje Ambheti Taluka Kaparada in district Valsad Gujarat and floating charge on the assets of the
company.

2 Secured Foreign Currency Loans (Guaranteed by GoI) are secured by pari passu interest in the lien created on
the assets as security for the debts.

3 Secured Other Foreign Currency Loans and Rupee Loans are secured by the way of

(i) pari passu charge on the assets of the company except investments, land and building, roads and bridges,
water supply, drainage and sewerage and current assets or

(ii) pari passu charge on the assets of the company except investments and current assets or

(iii) floating charge on the immovable properties of the company.
as per the terms of respective loan agreements.

a) Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted as at the reporting date and are expected to apply in the period in which the temporary differences
are realised or settled, in accordance with Ind AS 12 - Income Taxes. The Company has measured deferred
tax using the tax rate applicable under the new tax regime, which is expected to apply in future periods.
Accordingly, deferred tax balances recognised in earlier periods have been re-measured to reflect the revised
expected manner of recovery or settlement of the underlying assets and liabilities. Refer note 51 for disclosure
relating to impact of deferred tax in regulatory deferral account balances.

b) In the opinion of the management, it is probable that future economic benefits will flow to the company in the
form of availability of set off against future income tax liability by recognising MAT credit as follows:

Future taxable profits will be adjusted against (a) initial depreciation on the assets to be commissioned in
future and (b) regular income tax depreciation u/s 32 of Income Tax Act, 196l/( u/s 33 of Income Tax Act 2025)
and thereafter tax amount will be set off against MAT credit as per provisions of Income Tax Act 2025. Hence,
the same has been recognised as Deferred Tax Assets during the year.

Further Notes:

Government Grants

1. Grant in Aid of f0.00crore (Previous Year f0.00crore) including interest has been recognised from Power
System Development Fund (PSDF) under Ministry of Power (MoP), Govt. of India GoI for establishment of Unified
Real Time Dynamic State Measurement (URTDSM). The Grant amounting to f 0.94crore has been derecognized
during the Previous Year.

2. Grant in Aid of f0.00crore (Previous Year f0.00crore) including interest has been recognised from Power
System Development Fund (PSDF) under Ministry of Power (MoP), Govt. of India (Gol) for installation of STATCOM
in ER (ERSS-Xl) and SR (System Strengthening in SR-XXl). An amount of f0.00 crore (Previous Year f9.33 crore)
is repayable as at the end of reporting period to Ministry of Power (MoP), Govt. of India (GoI) on account of
cost savings in the projects. Accordingly, the said amount is shown as payable under Other Current Financial
Liabilities.

3. Grant in Aid, of f0.00crore (Previous Year f1.07crore) including interest has been recognised, from Ministry of
New & Renewable Energy (MNRE), Gol for establishment of transmission system associated with Ultra Mega
Solar Parks in Andhra Pradesh.

4. Grant in Aid was received in earlier years from Ministry of New & Renewal Energy (MNRE) for creating awareness
activities for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan(PM KUSUM) in Andhra Pradesh,
Kerala and Rajasthan. An amount of f 1.06 crore (Previous year f 1.06 crore) is repayable as at the end of
reporting period to MNRE, Govt. of India (Gol) and shown under Other Current Financial Liabilities.

Further Notes:

1. Unsecured short term loan with rate of interest ranging from 5.60% p.a. to 7.00% p.a. (Previous Year ranging
from 7.04% p.a. to 7.80% p.a.) raised and repayable during the year within 90 days (Previous Year within 90 days
to 120 days) as per the terms of respective loan agreement from the date of drawl.

2. There has been no default in repayment of loans or payment of interest thereon as at the end of the year.

3. Secured loan from Bank is towards amount payable to banks by beneficiaries on account of bills discounted
with recourse to Company against trade receivables. (Refer note 14 (c)).

Further Notes:

Disclosure with regard to Micro and Small enterprises as required under " Division II of Schedule III of The Companies
Act, 2013" and "The Micro, Small and Medium Enterprises Development Act, 2006" is given in Note No 49.

* Trade payables includes f 174.69 Crore (Previous Year f 147.33 Crore) from related parties
(Refer Note No 55).

Further Notes:

A) Employee Benefits

i) Performance Related Pay/Special Incentive:

Provision is created for Performance Related Pay to Directors, Executives and Non-Executives

ii) Other Employee Benefits:

Provision is created for the purpose of meeting out leave encashment, Baggage allowance, acknowledgement
of service on retirement and POWERGRID Employee Family Rehabilitation Scheme, etc. Refer note no. 63 for
detailed disclosure related to Employee Benefit Obligations.

B) Others:

i) Provision Others:

It mainly includes provision for enhanced land & crop compensation pending with the authorities, GST on
Business Support services, Water Charges, Additional Transport allowance for PwBD employees, provision
against demand of rent for leasehold land by SAIL (Durgapur Steel plant) etc.

Further Notes:

a) In exercise of powers u/s 178 of the Electricity Act 2003, Central Electricity Regulatory Commission (CERC) has
notified "CERC (Terms and Conditions of Tariff) Regulations, 2024" vide notification dated 15th March, 2024 for
the determination of transmission tariff for the block period 2024-29.

b) The company has recognised transmission income during the year as per the following:

i) f37,682.11crore (Previous Year f36,976.10crore) as per tariff orders issued by CERC and

ii) f1,244.67crore (Previous Year f2,668.15crore) provisionally as per CERC Tariff Regulations in respect of
transmission assets for which tariff orders are yet to be issued.

c) Consequent to the final order issued by CERC, transmission income includes f617.46crore(increase)(Previous
Year f426.28crore(increase)) pertaining to earlier years.

d) Refer note no. 46 for disclosure as per Ind AS 115 "Revenue from Contracts with Customers".

e) "Others" under Other operating revenue includes income from sale of scrap generated from other than PPE.

Further Notes:

* Others include interest on employee loans, unwinding of finance cost on employee loans etc.

# includes reversal of impairment of investment in National High Power Test Laboratory Private Limited of f 10.88
crore (Previous Year f 25.65 crore) during the current year.

** Miscellaneous income includes Insurance Claim Recovery, Manpower Deputation Cost Recovery, UI Charges,
Licence fee recovery, other income etc.

50. Disclosure as per Ind AS 116 - "Leases"

a) As a Lessor - Finance Leases:

The Company has classified and accounted for the arrangements for state sector ULDC assets and bilateral
assets as finance leases. Agreements for State Sector ULDC are for a period of 15 years and Bilateral Line Assets
with the beneficiary are for the period as specified in CERC Regulations.

Other Non-Current Financial Assets and Other Current Financial Assets include lease receivables representing
the present value of future lease rentals receivable on the finance lease transactions entered into by the
company with the constituents in respect of State Sector ULDC and Bilateral Line Assets. Disclosure requirements
of Ind AS 116 'Leases' notified under the Companies Act, 2013 are given as under:

b) As a Lessee:

The company has taken assets on lease such as office buildings, Transit Hostel, Cars etc. for various periods
which are assessed and accounted as per the requirements of Ind AS 116 - "Leases" and required disclosures
as per the said Ind AS are as follows:

(i) ROU Assets:

Additions, termination/disposal and depreciation charge on right of use assets for the year and carrying
amount of the same as at the end of the financial year by class of underlying asset has been disclosed in
note no. 4 as a separate line item.

(ii) Lease Liabilities:

Interest expense on lease liabilities for the year is shown under note no. 38 and total cash outflow for leases
for the year has been disclosed in statement of cash flow under financing activities as separate line item
and maturity analysis of lease liabilities has been disclosed in note no. 61.

(iii) Short term leases:

The company, during the financial year, has incurred f19.53crore (Previous Year f14.37crore) with respect
to short term leases.

The company was committed to short term leases and the total commitment of such leases at the end of
financial year was f5.96crore (Previous Year f3.87crore).

51. Disclosures relating to Regulatory Deferral Account Balances

i) Nature of rate regulated activities

The company is mainly engaged in the business of transmission of power. The tariff for transmission of power
is determined by the CERC through tariff regulations. The tariff is based on capital cost admitted by CERC and
provides for transmission charges recovery of annual fixed cost consisting of Return on equity, Interest on loan
capital, Depreciation, interest on working capital and Operation & Maintenance expenses.

ii) Recognition and measurement

FERV arising during the construction period for settlement/translation of monetary items (other than non¬
current loans) denominated in foreign currency to the extent recoverable/payable to the beneficiaries as
capital cost as per CERC Tariff Regulations are accounted as Regulatory Deferral Account Balances. In respect
of long term foreign currency loan drawn on or after 01 April 2016, exchange difference to the extent recoverable
as per CERC Tariff Regulations are recognised as Regulatory Deferral Account Balances. The company expects
to recover these amounts through depreciation component of the tariff over the life of the asset or as exchange
rate variation on repayment of the loan.

The tariff norms for the block period 2024-2029 notified by the Central Electricity Regulatory Commission (CERC)
provide for grossing up of the return on equity based on effective tax rate for the financial year based on the
actual tax paid during the year on the transmission income. Accordingly, deferred tax provided during the
year ended 31 March 2026 on the transmission income is accounted as 'Deferred Assets against Deferred Tax
Liability'. Deferred Assets against Deferred Tax Liability for the year will be reversed in future years (including
tax holiday period) when the related deferred tax liability forms a part of current tax.

CERC vide order dated 26 December 2022 has disallowed the claim amounting to S134.16 crore on account of
pay revision (2017) which was accounted as Regulatory Deferral Account Balances in earlier years. Accordingly,
the company has reversed the amount shown as recoverable from the beneficiaries in the FY 2022-23 under
the head Net Movement in Regulatory Deferral Account Balances-Income/(Expenses)(Net of Tax). An appeal
against order dated 26 December 2022 has been filed before Hon'ble Appellate Tribunal for Electricity bearing
Appeal No. 236 of 2023. The Appeal has been listed before APTEL on 29 August 2023 and APTEL has included the
same in the List of Short Matters. Date of hearing is yet to be notified.

The cumulative amount of f13.77crore (Previous Year f10.50crore) is recoverable on account of other expenses
which are not capitalised but allowed as capital cost as per CERC Tariff Regulations and was accounted as
Regulatory Deferral Account Balances. Amount of regulatory deferral account balances is on undiscounted
basis.

iii) Risk associated with future recovery/ reversal of regulatory deferral account balances

(a) regulatory risk on account of changes in regulations.

(b) other risks including currency or other market risks, if any.

Any change in the Tariff regulations beyond the current tariff period ending on 31 March 2029 may have an
impact on the recovery of Regulatory Deferral Account Balances.

The Regulatory Deferral Account Balances (assets) recognised in the books to be recovered from the
beneficiaries in future periods are as follows:

53. Corporate Social Responsibility (CSR) Expenses

As per Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules,
2014 read with DPE guidelines no F.No.15 (13)/2013-DPE (GM), the Company is required to spend, in every financial
year, at least two per cent of the average net profits of the Company made during the three immediately preceding
financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial
liabilities are considered to be the same as their fair values, due to their short-term nature. The carrying values
for finance lease receivables approximates the fair value as these are periodically evaluated based on credit
worthiness of customer and allowance for estimated losses is recorded based on this evaluation.

For financial assets that are measured at fair value, the carrying amounts are equal to the fair values.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
bonds which are traded in the stock exchanges, valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds)
is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, contingent consideration and indemnification assets included
in level 3.

There are no transfers between levels 1 and 2 during the year. The company's policy is to recognise transfers into

54. Fair Value Measurement (Contd.)

and transfers out of fair value hierarchy levels as at the end of the reporting period.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments

• the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 2 apart from equity instruments of PTC India Limited and
units of POWERGRID Infrastructure Investment Trust which is included in Level 1 fair value hierarchy.

Fair value of financial instruments has been determined by an independent valuer.

’POWERGRID & Torrent Power Transmission Private Ltd are the Joint venture partners in Torrent Power Grid Limited &
holds 26% & 74 % equity, respectively as per Shareholding agreement. On call of additional equity by Torrent Power
Grid Limited, POWERGRID has not contributed their share while the other JV partner has contributed their share
of money. Consequently, the holding of POWERGRID decreased to 9.75% against 26% provided in shareholding
agreement and ceased to be a JV of the company w.e.f 30 May 2025. Board of Directors have accorded in principle
approval for sale of entire stake in their meeting dated 19 May 2025. Accordingly, investment in JV Company is
classified as Asset held for sale in line with Ind AS 105.

²Board of Directors have accorded in principle approval for sale of entire stake in their meeting dated 30 July 2025.
Accordingly, investment in JV Company is classified as Asset held for sale in line with Ind AS 105.

³Board of Directors have accorded in principle approval for sale of entire stake in their meeting dated 19 May 2025.
Accordingly, investment in JV Company is classified as Asset held for sale in line with Ind AS 105.

⁴POWERGRID's Board of Directors in its meeting held on 01.05.2018 accorded in principle approval to close RINL
Powergrid TLT Private Limited (RPTPL) and seek consent of other JV Partner Rashtriya Ispat Nigam Limited (RINL).
RINLs Board of Directors in its meeting held on 08.03.2019 has agreed in principle for winding up proceedings of
RPTPL & to seek the approval from Ministry of Steel (MoS), Government of India, for closure of RPTPL. The approval
for closure of RPTPL was received on 11.07.2022 from MoS. Contractor for site enabling works has served notice for
arbitration on 17.12.2022. Final settlement was recommended in the final conciliation meeting held on 12.04.2025.
JV partners infused further capital towards payment of final claims and liabilities. All payments are done by
28.08.2025. Powergrid has sought approval from Ministry of Power (MoP) for the closure on 25.08.2025. Upon receipt
of approval of Ministry of Power, with the approval of Board and Shareholders by way special resolution, RPTPL will
initiate actions for voluntary winding up to close the company. The company is in the process of winding up.
incorporated on 27.11.2024 for development of Intra-State Transmission System in the State of Rajasthan with an
equity participation of 74% by the company and 26% by Rajasthan Rajya Vidyut Prasaran Nigam Limited. Being a
jointly controlled entity of the Company and RRVPNL, it is considered as 'Joint Venture' of the Company
⁶The Board of Directors of the company have, in its meeting held on 16 December 2023, approved the proposal
for purchase of 1,30,000 no. equity shares held by IL&FS Energy Development Co Ltd in PTCN (Joint venture of the
company). Presently, approvals from relevant authorities is awaited.

(f) Government Related Entities

The company is controlled by the Government of India (GOI), being a Central Public Sector Enterprise (CPSE) under
the Ministry of Power, with GOI holding 51.34% (Previous Year 51.34%) of equity shares capital issued and paid up.

The Company has business transactions with other entities controlled by the GOI for procurement of capital
equipment, spares and services. Transactions with these entities are carried out at market terms on arms-length
basis through a transparent price discovery process against open tenders, except in a few cases of procurement of
spares/services from Original Equipment Manufacturer (OEM) for proprietary items/or on single tender basis due
to urgency, compatibility or other reasons. Such single tender procurements are also done through a process of
negotiation with prices benchmarked against available price data of same/similar items.

The above transactions are in the course of normal day-to-day business operations and are not considered to be
significant keeping in view the size, either individually or collectively.

(g) Outstanding balances with related parties

The following balances are outstanding at the end of the reporting period in relation to transactions with related
parties:

Terms and Conditions

The loans to key management personnel are on the same terms and conditions as applicable to all other employees.

All other transactions were made on normal commercial terms and conditions and at market rates. All outstanding
balances are unsecured and are repayable in cash.

The Company is raising the funds from the market for financing capital expenditure of Company and for extending
such financing to wholly owned subsidiaries and joint venture through inter-corporate loans. The same has
been mentioned in the object clause of document for raising of funds. The inter-corporate loans are extended to
subsidiaries and joint ventures at the interest rate applicable to company. Hence, the said arrangements do not
result in deemed investment/deemed equity as per Indian Accounting Standards. Loans to Subsidiaries & JVs are
provided with interest rate ranging from 5.26% to 7.79% (previous year 7.08% to 8.15%) repayable as per agreed
terms & conditions.

55. Disclosure as per Ind AS 24 - "Related Party Disclosures" (Contd.)

In addition to the above remuneration, the whole time directors have been allowed to use the staff car (including
for private journeys) on payment of f 2000/- p.m. as contained in the Department of Public Enterprises (DPE) OM
No. 2 (23)/l1-DPE (WC)-GL-V/13 dated 21/01/2013.

56. Operating Segments

a) Business Segment

The Board of Directors is the Company's Chief Operating Decision Maker (CODM) who monitors the operating
results of its business segments separately for the purpose of making decisions about resource allocation and
performance assessment. Two reportable segments have been identified on the basis of services provided.

• Transmission Services - Company's principal business is transmission of bulk power across different
states of India.

• Consultancy Services - The company provides Consultancy Services in the Transmission, Distribution and
Telecom sectors, including Planning Design, Engineering, Load Dispatch, OPGW on intra state Transmission
network, Procurement Management, Operation & Maintenance, Financing and Project Management.

b) The operations of the company are mainly carried out within the country and therefore there is no reportable
geographical segment.

c) Information about major customer: Revenue from any single customer is not equal to or exceeds 10% of the
company's total revenue.

d) Segment Revenue and Expenses

Revenue directly attributable to the segments is considered as Segment Revenue. Expenses directly attributable
to the segments and common expenses allocated on a reasonable basis are considered as segment expenses.
Revenue from external customer in India is f41,604.50crore (Previous Year f42,293.81crore) and outside India is
f51.03crore (Previous Year f48.36crore).

e) Segment Assets and Liabilities

Segment assets include all operating assets comprising of Property, Plant and Equipment, current assets and
loan and advances. Construction Work-in-progress, construction stores and advances and investments are
included in unallocated assets. Segment liabilities include operating liabilities and provisions.

58. Contingent Liabilities and contingent assets

A. Contingent Liabilities

1. Claims against the Company not acknowledged as debts in respect of:

(i) Capital Works

Some of the contractors for supply and installation of equipment and execution of works at our projects have
lodged claims on the company seeking enhancement of the contract price, revision of work schedule with price
escalation, compensation for the extended period of work, idle charges etc. These claims are being contested
by the Company as being not admissible in terms of the provisions of the respective contracts.

The company is pursuing various options under the dispute resolution mechanism available in the contract for
settlement of these claims. In such cases, contingent liability of f2,202.89crore (Previous Year f3,174.07crore)
has been estimated. This includes f51.94 crore against original claim lodged by M/s Deepak Cables (India)
Limited which was revised by party to f585 crore before arbitrator. This was challenged by the company before
the Hon'ble Delhi High Court and an order dated 13.11.2019 was passed staying the arbitral proceedings in
effect staying the revised claims filed by Deepak Cables. The possibility of an outflow of resources embodying
economic benefits towards enhanced claim is remote.

(ii) Land/Tree/Crop/Other compensation cases

In respect of acquisition of land, cutting of trees or crops or other activities for the projects, the affected parties
(land losers, farmers, etc.) have claimed higher compensation before various authorities/courts which are
yet to be settled. In such cases, contingent liability of f3,412.43crore (Previous Year f2,994.01crore) has been
estimated.

(iii) Other claims

In respect of claims made by various State/Central Government Departments/Authorities towards building
permission fees, penalty on diversion of agriculture land to non-agriculture use, Nala tax, water royalty etc. and
by others, contingent liability of f185.08crore (Previous Year f180.61crore) has been estimated. Against claims
of f56.99 Crore (Previous Year f81.34 crore), provision of f11.94 Crore(Previous Year f38.74 Crore) has been
made and balance of f45.05 Crore(Previous Year f42.60 Crore) towards lease hold land's renewal demand
by SAIL (Durgapur Steel Plant) has been shown as contingent liability.

(iv) Disputed Income Tax/Sales Tax/Excise/Municipal Tax Matters

Disputed Income Tax/Sales Tax/Excise/Municipal Tax Matters amounting to f638.20crore (Previous Year
f644.15crore) are being contested before various Appellate Authorities. Many of these matters have been
disposed of in favour of the company but are disputed before higher authorities by the concerned departments.
Against claims of f37.70crore (Previous Year f1.54crore), provision of f0.28crore (Previous Year f0.28crore) is
made and balance of f37.42crore (Previous Year f1.26crore) towards penalty is shown as contingent liability
as it is not a wilful default and in management opinion, same is not expected to be upheld by the court.

(v) Others

a) Other contingent liabilities amounts to f70.22crore (Previous Year f60.89crore) mainly related to Arbitration
cases, workmen compensation etc..

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

c) Under the Transmission Service Agreement (TSA) with Powerlinks Transmission Ltd, the company has an
obligation to purchase the JV company (Powerlinks Transmission Ltd) at a buyout price determined in
accordance with the TSA. Such an obligation may result in case JV company (Powerlinks Transmission Ltd)
serves a termination notice either on "POWERGRID event of default" or on "force majeure event" prescribed
under TSA. No contingent liability on this account has been considered as the same is not ascertainable.

2. Details of Bank guarantees given by the company on behalf of SPV companies, which were taken over to carry
out the business awarded under tariff-based bidding, towards performance of the work awarded are as under:

B. Contingent Assets

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

59. Capital management

a) Risk Management

The company's objectives when managing capital are to

• maximise the shareholder value;

• safeguard its ability to continue as a going concern;

• maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the company's capital management, equity capital includes issued equity capital, securities
premium Account and all other equity reserves attributable to the equity holders of the company. The company
manages its capital structure and makes adjustments in light of changes in economic conditions, regulatory
framework and requirements of financial covenants with lenders. To maintain or adjust the capital structure, the
company may adjust the dividend payment to shareholders, regulate investments in new projects, return capital
to shareholders or issue new shares. The company monitors capital using debt-equity ratio, which is the ratio of
long-term debt to total net worth. The policy is to keep the debt-equity ratio wherein the debt is less than 75% of
total capital employed (i.e. debt to equity ratio less than 75:25). Total Borrowings include long term and short-term
debt, current maturities of long term debt, interest bearing loans and borrowings against bill discounting.

The Company's principal financial liabilities comprise loans and borrowings denominated in Indian rupees or
foreign currencies, trade payables and other payables. The main purpose of these financial liabilities is to finance
the Company's capital investments and operations.

The Company's principal financial assets include loans and advances, trade and other receivables, and cash and
cash equivalents that are generated from its operations.

The Company's activities expose it to the following financial risks, namely,

(a) Credit risk,

(b) Liquidity risk,

(c) Market risk.

This note presents information regarding the company's exposure, objectives, policies and processes for measuring
and managing these risks.

Risk management framework

The Company has a duly constituted Risk Management Committee headed by Director (Projects) with Director
(Operations), Director (Finance) and an independent director as members. For the purpose of evaluating and
managing the uncertainties the enterprise faces, Enterprise Risk Management framework has been implemented
in the Company. The framework is a structured, consistent and continuous process for identification, assessment,
monitoring and management of risks. As per this framework, the significant business processes / risks are monitored
and controlled through various Key Performance Indicators (KPIs). The Committee meets at regular intervals and
reviews KPIs and provides updates to the Audit Committee/Board.

The management of financial risks by the Company is summarised below:

(a) credit risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities on
account of trade receivables and loans and advances and from its financing activities due to deposits with
banks and financial institutions, foreign exchange transactions and other financial instruments.

A default on a financial asset is when the counterparty fails to make contractual payments within 3 years of
when they fall due. This definition of default is determined considering the business environment in which the
Company operates and other macro-economic factors.

Assets are written-off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or failing to engage in a repayment plan with the Company. Where loans or receivables have been
written off, the Company continues to engage in enforcement activity to attempt to recover the receivable
due. Where such recoveries are made, these are recognised in the statement of profit and loss.

(i) Trade Receivables and Contract Assets

The Company primarily provides transmission facilities to inter-state transmission service customers (DICs)
comprising mainly state utilities owned by State Governments and the main revenue is from transmission
charges. CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020 ("CERC Sharing
Regulations") entrusts Central Transmission Utility (CTUIL) with the function of Billing, Collection and
disbursement functions on behalf of transmission licensees including POWERGRID.

CERC Sharing regulation allow payment against monthly bills towards transmission charges within due date
i.e., 45 days from the date of presentation of the bill and levy of surcharge on delayed payment beyond 45
days. However, in order to improve the cash flows of transmission licensee, CTUIL provides a graded rebate
for payments made within 45 days. If a DIC fails to pay any bill or part thereof by the Due Date, the Central
Transmission Utility (CTUIL) may encash the Letter of Credit provided by the DIC and utilise the same towards
the amount of the bill or part thereof that is overdue plus Late Payment Surcharge, if applicable.

CTUIL has a robust payment security mechanism in the form of Letter of Credit (LC) backed by the Tri¬
Partite Agreements (TPA). The TPA was signed among the GOI, Reserve Bank of India and the individual State
Governments subsequent to the issuance of the One Time Settlement Scheme of State Electricity Boards dues
during 2001-02 by the GOI. The TPA also provides that if there is any default in payment of current dues by any
State Utility and on fulfilment of condition under TPA, the outstanding dues can be deducted from the State's
RBI account and paid to the concerned CPSU including POWERGIRD.

As per provisions of CERC Sharing Regulations, in case tripartite agreement exists, the Letter of Credit to be
submitted to CTUIL shall be for an amount equal to 1.05 (one point zero five) times the average amount of the
first bill of a year; Provided that where such tripartite agreement does not exist, the DIC shall open the Letter of
Credit for an amount equal to 2.10 (two point one times) the average amount of the first bill of a year.

In addition to the encashment of letter of credit, on non-payment of outstanding dues, the CTUIL has power
to regulate the power supply or deny Short Term Open Access on the defaulting entity as per Electricity (LPS &
Related matter) Rules, 2022 notified by Ministry of Power.

Trade receivables consist of receivables relating to transmission services of f10,628.98crore (Previous Year
f7,310.28crore), receivables relating to consultancy services of f424.47crore (Previous Year f241.96crore).
Contract Assets primarily relates to the Company's right to consideration for work completed but not billed at
the reporting date and has substantially the same risk characteristics as the trade receivables for the same
type of contracts.

(ii) Other Financial Assets (excluding trade receivables and contract assets)

• Cash and cash equivalents

The Company held cash and cash equivalents of f2,028.17crore (Previous Year f758.80crore). The cash and
cash equivalents are held with public sector banks and high rated private sector banks and do not have any
significant credit risk.

• Deposits with banks and financial institutions

The Company held deposits with banks and financial institutions of f5,687.45crore (Previous Year
f5,823.03crore). Term deposits are placed with scheduled commercial banks and have negligible credit risk.

• Loans

The Company has given loans to employees, subsidiaries, Joint Venture companies. House building loans
and conveyance advance to the employees are secured against the mortgage of the house properties or
hypothecation of vehicles for which such loans have been given in line with the policies of the Company. The
loans provided to group companies are for projects under Tariff Based Competitive Bidding route and Public
private partnership. The risk of default in respect of these loans is considered negligible.

(iv) Provision for expected credit losses

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

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and
where the risk of default is very low. At initial recognition, financial assets (excluding trade receivables and
contract assets) are considered as having negligible credit risk and the risk has not increased from initial
recognition. Therefore, no loss allowance for impairment has been recognised except as specified in this note.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

In respect of trade receivables and contract assets from Telecom and Consultancy, customer credit risk is
managed by regular monitoring of the outstanding receivables and follow-up with the consumer for realisation.
With regard to transmission segment, the Company has customers most of whom are state government
utilities with capacity to meet the obligations and therefore the risk of default is negligible. Further, management
believes that the unimpaired amounts that are 30 days past due date are still collectible in full, based on the
payment security mechanism in place and historical payment behaviour.

Considering the above factors and the prevalent regulations, the trade receivables and contract assets
continue to have a negligible credit risk on initial recognition and thereafter on each reporting date.

Movement in impairment majorly involves allowance for impairment amounting to f210.39 crore (Previous Year
f51.70 crore) has been provided towards impairment of investment in Energy Efficiency Services Limited. Further,
the provision for impairment of investment in National High Power Test Laboratory Private Ltd which was made in
previous years has been reassessed & reversed by f 10.88 crore (Previous Year f25.65 crore). Further, an additional
provision of f 1 crore has been made towards impairment of investment in Powergrid TLT Private Limited during the
year. Based on historic default rates, the Company believes that, apart from the above, no impairment allowance
is necessary in respect of any other assets as the amounts are insignificant.

(b) liquidity risk

Liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. The
Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company has access
to a variety of sources of funding such as commercial paper, bank loans, bonds and external commercial
borrowings and retains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company's liquidity position comprising the undrawn borrowing
facilities below and cash and cash equivalents on the basis of expected cash flows.

The Company depends on both internal and external sources of liquidity to provide working capital and to fund
capital expenditure.

(i) Financial Arrangement

The Company had access to the following undrawn borrowing facilities at the end of the reporting period.

(c) market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk:

(i) Currency risk

(ii) Interest rate risk

(iii) Other price risk, such as equity price risk and commodity risk.

(i) Currency risk

The Company is exposed to currency risk mainly in respect of foreign currency denominated loans and
borrowings and procurement of goods and services whose purchase consideration is denominated in foreign
currency. Transmission tariff is regulated by the CERC. According to the CERC tariff regulations for the block
2024-29 the Company may hedge foreign exchange exposure in respect of the interest on foreign currency
loan and repayment of foreign loan acquired for the transmission system, in part or full in its discretion and
recover the cost of hedging of foreign exchange rate variation corresponding to the normative foreign debt, in
the relevant year.

If hedging of the foreign exchange exposure is not undertaken, the extra rupee liability towards interest payment
and loan repayment corresponding to the normative foreign currency loan in the relevant year is permissible
to be recovered as part of transmission tariff provided it is not attributable to the generating Company or the
transmission licensee or its suppliers or contractors. In respect of goods and services procured for Capital
Investment, the exchange rate variation is part of the project cost, for determination of transmission tariff. The
currency risk in respect of goods and services procured for operation activities is not significant.

The Company's exposure to foreign currency risk not hedged by a derivative instrument or otherwise at the end
of the reporting period is as follows:

Sensitivity Analysis

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

Derivatives and Hedging
Classification of derivatives

The Company is exposed to foreign currency exchange risk arising from adverse movements in foreign currency
exchange rates in respect to foreign currency borrowings. Derivatives are only used for economic hedging purposes
and not as speculative investments

Hedging activities

The primary risks managed using derivative instruments are foreign currency risk. The Company is exposed to
various foreign currency risks as explained above. As per Company's Foreign Currency Risk Management Policy,
the Company is required to fully hedge foreign currency loans borrowed to fund the projects other than under
Regulated Tariff Mechanism.

All these hedges are accounted for as cash flow hedges.

Hedge Effectiveness

There is an economic relationship between the hedged items and the hedging instruments as the terms of the
foreign exchange forward contracts match the terms of hedge items. The Company has established a hedge ratio
of 1:1 for the hedging relationships as the underlying risk of the foreign exchange forward contracts are identical
to the hedged risk components. To test the hedge effectiveness, the Company compares the changes in the fair
value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged
risks.

Source of Hedge ineffectiveness

In case of foreign currency risk, the main source of hedge ineffectiveness is the effect of the counterparty and the
Company's own credit risk on the fair value of hedge contracts, which is not reflected in the fair value of the hedged
items. The effect of this is not expected to be material.

Disclosures of effects of Cash Flow Hedge Accounting

Hedging instruments

The Company is holding the following hedging instruments:

(ii) Interest rate risk

The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest
rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate
borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by
maintaining a debt portfolio comprising a mix of fixed and floating rate borrowings in domestic and foreign
currencies.

At the reporting date, the interest rate profile of the Company's variable interest rate-bearing financial
instruments is as follows:

Fair value sensitivity analysis for interest-rate risk

As per CERC Regulations, interest on loan during construction forms part of project cost for the purpose of tariff and
after the date of commercial operation, interest on loans is recoverable through tariff calculated on the normative
average loan of the year by applying the weighted average rate of interest of the actual loan portfolio.

Accordingly, the Company's interest rate risk is not considered significant; hence sensitivity analysis for the risk is
not disclosed.

(iii) Other price risk

The Company's exposure to equity securities price risk arises from investments held by the Company and
classified in the balance sheet as fair value through OCI.

Considering the magnitude of equity investments, no significant risk is expected to arise.

62. Income Tax expense

This note provides an analysis of the company's income tax expense, and how the tax expense is affected
by non-assessable and non-deductible items. It also explains significant estimates made in relation to the
Company's tax position.

A. Post-employment obligations

I) Defined Contribution Schemes:

i) Pension

The Company has scheme of employees defined Pension Contribution & National Pension Scheme (NPS)
for the employees opted for the NPS scheme. Company contribution is paid to separate trust for Employees
defined Pension Contribution as well as NPS. Amount of contribution paid/payable for the year of f137.76crore
(Previous Year f56.03crore) has been recognised as expense and is charged to Statement of Profit & Loss.

i) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of
five years or more is entitled to get gratuity at 15 days salary (15/26 x last drawn basic salary plus, dearness
allowance) for each completed year of service on superannuation, resignation, termination, disablement or
on death subject to a maximum of f 25 lakhs. The scheme is funded by the Company and is managed by a
separate trust. The liability for the same is recognised on the basis of actuarial valuation on annual basis on
the Balance Sheet date.

ii) Provident Fund

Company pays fixed contribution to Provident Fund at predetermined rate to a separate trust, which invests
the funds in permitted securities. Contribution to Employee pension scheme (EPS) is paid to the appropriate
authorities. The contribution to the fund and EPS scheme for the year amounting to f150.49crore (Previous
Year f143.72crore) has been recognised as expense. The obligation of the company is limited to such fixed
contribution and to ensure a minimum rate of interest on contributions to the members as specified by GOI.
Further, as per the current report of actuary, overall interest earning and cumulative surplus is more than
statutory interest payment requirement. Therefore, no further provision is considered necessary. Since the
company does not have unconditional right over the PF corpus, the surplus has not been recognised in the
Balance Sheet.

Movement in plan assets and obligations of PF is as follows:

iii) Post-Retirement Medical Facility (PRMF)

The Company has Post-Retirement Medical Facility (PRMF), under which retired employees and their eligible
dependents are provided medical facilities in the empanelled/non-empanelled hospitals. They can also avail
treatment as Out-Patient subject to a ceiling fixed by the company. The liability for the same is recognised
on the basis of actuarial valuation on annual basis on the Balance Sheet date. The scheme is funded by the
company and is managed by a separate trust constituted on 01 May 2018.

Movement in plan assets and obligations of PRMF is as follows:

iv) Other Defined Retirement Benefits (ODRB)

a) Baggage Allowance & Wellness Assistance

The Company has a scheme for settlement at the time of superannuation at anywhere in India and dependents
to superannuated employees. The scheme is unfunded and liability for the same is recognised on the basis of
actuarial valuation on annual basis on the Balance Sheet date.

A lumpsum amount as 'Wellness Assistance' equivalent to 01-month last drawn Basis-Pay shall be admissible
for all retiring employees and families of deceased employees.

b) Acknowledgement of service on retirement

This benefit is applicable to all regular employees of the company. A Silver Plaque is presented to employees
on superannuation or early retirement after 55 years of age under clause 24.5.2 of Service Rules or separation
after completion of 01 tenure as Director/CMD. Silver plaque shall also be presented to families of employees
who separate from the company due to death after attaining the age of 55 years. This scheme is unfunded
and liability for the same is recognised on the basis of actuarial valuation on annual basis on the balance
sheet date.

Movement in obligations of ODRB is as follows:

The discount rate is generally based upon the market yields available on Govt. Bonds at the accounting date
relevant to currency of benefit payments for a term that matches the liabilities. Salary growth rate is companies'
long term best estimate as to salary increases and takes account of inflation, seniority, promotion, business
plan, HR Policy and other relevant factors on long term basis.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not
calculated.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it
does provide an approximation of the sensitivity of the assumptions shown.

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

vii) Description of Risk exposures

Valuation is based on certain assumptions which are dynamic in nature and vary over time. As such company
is exposed to various risks as follows:

a) Salary Increases (except for PF) - Actual salary increase will increase the plan's liability. Increase in salary
increase rate assumptions in future valuation will also increase the liability.

b) Investment risk - If plan is funded then assets liabilities mismatch and actual investment return on assets
lower than the discount rate assumed at the last valuation date can impact the liability

c) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan's liability.

d) Mortality & disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation
can impact the liabilities.

e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan's liability.

viii) Maturity analysis of defined benefit schemes:

The weighted average duration of the post-employment defined benefit obligations is 36.91 years (Previous
Year 38.33 years) and expected contributions to the same during next financial year is f32.32crore (Previous
Year f29.09crore). The expected maturity analysis of undiscounted gratuity, PF, post-retirement medical facility
and other defined retirement benefit is as follows:

II) POWERGRID Employee family rehabilitation scheme

The company has introduced POWERGRID Employees Family Economic Rehabilitation Scheme on 24 June 2017.
The Objective of the scheme is to provide monetary assistance and support to an employee in case of his/
her permanent total disablement and to his/her family in case of death while in service. The beneficiary would
be entitled to monthly payment equivalent to the employee's 50% of one month pay last drawn provided
the beneficiary deposits with the company an amount equal to PF (excluding VPF) balance, Gratuity amount
and Group Insurance (EDLI) amount. Such monthly payment would continue till the normal notional date on
which the employee concerned would have attained the age of superannuation had the employee continued
in the service of the company. The scheme is optional. Provision for POWERGRID Employees Family Economic
Rehabilitation Scheme amounting to f1.12crore (Previous Year f3.08crore) for the year has been made during
the year based on actuarial valuation.

m) The company has not received/advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) through Intermediaries during the financial year.

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

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

65. Other Notes

A. Acquisitions under process: (TBCB)

i) The Company was the successful bidder in TBCB Projects under the SPVs namely Tumkur II RE Transmission
Limited and Robertsganj Power Transmission Limited. Further, Letter of Intent (LoI) in respect of Tumkur II RE
Transmission Limited has been obtained from concerned Bid Process Coordinator on 30th March 2026 and for
Robertsganj Power Transmission Limited has been obtained on 4th September 2025.

ii) A Special Purpose Vehicle (SPV) for implementation of the Kenya Transmission PPP Project, jointly promoted
by Power Grid Corporation of India Limited (POWERGRID) and Africa50, has been successfully incorporated
in Kenya under the name Mwanga Transmission Company Limited, a Private Limited Company under the
provisions of the 'Companies Act, 2015' of Kenya. The Certificate of Incorporation was issued by the Registrar
of Companies, Kenya on 21st April 2026. The project is being undertaken with POWERGRID holding 40 percent
equity and Africa50 holding 60 percent equity in the SPV.

B. Central Electricity Regulatory Commission (CERC) vide regulation 99 of tariff regulations for the tariff block
2024-29 dated 15th March 2024, stated that the fees and charges of Central Transmission Utility of India Limited
(CTUIL) shall be allowed separately by the Commission through a separate regulation, provided that until such
regulation is issued by the Commission, the expenses of CTUIL shall be borne by Power Grid Corporation of
India Ltd. (PGCIL) which shall be recovered by PGCIL as additional O&M expenses through a separate petition.
Accordingly, O&M Charges of f 46.39 crores (Previous Year f 46.75 crores) including Interest on Working capital
of f 1.97 crore (Previous Year f 1.93 crores) has been recognised in Revenue from Operations.

C. The Board of Directors of the Company in their meeting held on 26 July 2024 had approved the schemes of
arrangement for merger/ amalgamation (here in after called as "Schemes") of :

• wholly owned subsidiaries of the company namely POWERGRID Khavda II-B Transmission Limited,
POWERGRID Khavda RE Transmission System Limited, POWERGRID KPS2 Transmission System Limited,
POWERGRID KPS3 Transmission Limited, POWERGRID ERWR Power Transmission Limited, POWERGRID Raipur
Pool Dhamtari Transmission Limited, POWERGRID Dharamjaigarh Transmission Limited, POWERGRID
Bhadla Sikar Transmission Limited, POWERGRID Ananthpuram Kurnool Transmission Limited, POWERGRID

Neemrana Bareilly Transmission Limited, POWERGRID Koppal Gadag Transmission Limited and POWERGRID
Bidar Transmission Limited (collectively "Transferor Companies") with wholly owned subsidiary namely
POWERGRID Khavda II-C Transmission Limited ("Transferee Company") and

• wholly owned subsidiaries of the company namely POWERGRID Bhadla III Transmission Limited, POWERGRID
Beawar Dausa Transmission Limited, POWERGRID Ramgarh II Transmission Limited, POWERGRID Bikaner
Neemrana Transmission Limited and POWERGRID Sikar Khetri Transmission Limited (collectively "Transferor
Companies"), with wholly owned subsidiary namely POWERGRID Vataman Transmission Limited
("Transferee Company")

under section 230 to 232 of the Companies Act, 2013 and other statutory provisions as per the terms and conditions
mentioned in the Schemes of Arrangement for merger/ amalgamation.

The first motion petition for approval of the Scheme had been filed before the Ministry of Corporate Affairs (MCA)
on 23 September 2024. Approval of the Ministry of Power, Government of India has been conveyed on 30 January
2025. MCA passed an order on the first motion petition and issued directions for compliance. The Company
has duly complied with these directions and filed the second motion petition on 23 July 2025. The MCA issued
notice dated 12 September 2025 and issued directions for compliance. The company has duly complied with
the directions.

The Schemes sanctioned by their respective Board of Directors, shareholders and creditors has been approved
by the MCA on 27.01.2026. The appointed date of the schemes is 01 April 2024 and the scheme has been made
effective from 01 March 2026 by filing the certified copy of the order of MCA with the Registrar of Companies, Delhi
by transferee companies.

Transferee Companies have prepared their financial statements as per Ind AS 103 Business Combinations under
Pool of Interest method. The Scheme does not have any impact on the financial statements of the company. The
said schemes are undertaken for simplifying the corporate structure and ensuring ease of administrative and
statutory compliances.

D. The Board of Directors of the Company in their meeting held on 19 March 2026 had approved the schemes of
arrangement for merger/ amalgamation (here in after called as "Schemes") of :

• wholly owned subsidiaries of the company namely, Powergrid Kudankulam Transmission Limited,
Powergrid Barmer I Transmission Limited, Powergrid Bikaner IV Transmission Limited, Powergrid Siwani
Transmission Limited, Powergrid Fatehgarh Barmer Augmentation Transmission Limited, Powergrid
Ramgarh Transmission Limited, Powergrid Bhadla Transmission Limited, Powergrid Fatehgarh Transmission
Limited , Powergrid Bikaner Transmission System Limited , Powergrid Narela Transmission Limited,
Powergrid Khetri Transmission System Limited, Powergrid Ajmer Phagi Transmission Limited, Powergrid
Varanasi Transmission System Limited , Powergrid Neemuch Transmission System Limited , Powergrid
Mithilanchal Transmission Limited , Powergrid Medinipur Jeerat Transmission Limited, Powergrid Mahan
Rewa Transmission Limited (collectively "Transferor Companies") with wholly owned subsidiary namely
Powergrid Ghiror Transmission Limited ("Transferee Company") and

• wholly owned subsidiaries of the company namely Powergrid Sirohi Transmission Limited, Powergrid
Mandsaur Transmission Limited, Powergrid Mewar Transmission Limited, Powergrid Beawar-Mandsaur
Transmission Limited, Powergrid Kurawar Transmission Limited, Powergrid Sirohi Khandwa Transmission
Limited, Powergrid ER NER Transmission Limited, Powergrid Chitradurga Bellary Transmission Limited,
Powergrid Kurnool-III CPETA Transmission Limited, Powergrid Jam Khambhaliya Transmission Limited,
Powergrid Banaskantha Augmentation Transmission Limited (collectively "Transferor Companies"), with
wholly owned subsidiary namely Powergrid South Olpad Transmission Limited ("Transferee Company")

under section 230 to 233 of the Companies Act, 2013 and other statutory provisions as per the terms and
conditions mentioned in the Schemes of Arrangement for merger/ amalgamation.

E. Pursuant to the notification issued by the Ministry of Labour and Employment, the Code on Wages, 2019, the
Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational, Safety, Health and
Working Conditions Code, 2020 (Collectively referred to as the "New Labour Codes") became effective from 21
November 2025. The Ministry of Labour and Employment published Central Rules on 08 May 2026 and FAQs to
enable assessment of the financial impact due to changes in regulations.

On the basis of information available, the management has assessed that the incremental impact arising
from the implementation of the New Labour Codes are not material and the same has been recognised in the
financial results during the financial year ended 31 March 2026.

66. Recent accounting pronouncements and amendments:

Amendments to Indian Accounting Standards (Ind AS):

On 07.05.2025 and 13.08.2025, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian
Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 respectively, applicable from 01.04.2025 with amendments in Ind AS 21 "The Effects
of Changes in Foreign Exchange Rates", Ind AS1 "Presentation of Financial Statements", Ind AS 7 "Statement
of Cash Flows", Ind AS 107 "Financial Instruments Disclosures", Ind AS 12 "Income Taxes". The company has
assessed that the amendments have no material impact on the accounts of the company.

67. a) Figures have been rounded off to nearest rupees in crore up to two decimals.

b) Previous year figures have been regrouped/ rearranged wherever considered necessary.