TP Central Odisha Distribution Limited FY22 23

S R B C & CO LLP SRB & Associates
Chartered Accountants Chartered Accountants

2nd & 3rd Floor 5th Floor, IDCO Tower, Janpath
Golf View Corporate Tower – B Bhubaneswar – 751 022
Sector – 42, Sector Road
Gurugram- 122 002, Haryana, India
INDEPENDENT AUDITOR’S REPORT
To the Members of TP Central Odisha Distribution Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of TP Central Odisha Distribution

Limited (“the Company”), which comprise the Balance Sheet as at March 31 2023, the
Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the
Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid financial statements give the information required by the Companies Act, 2013,
as amended (“the Act”) in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, its profit including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those
Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial
Statements’ section of our report. We are independent of the Company in accordance with the
‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements for the financial year ended March 31, 2023.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the Auditor’s
Responsibilities for the audit of the financial statements section of our report, including in
relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial
statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying
financial statements.
Key audit matter How our audit addressed the key audit matter
(a) Expected credit loss on trade receivables (as described in Note 9 of the financial
statements)
The Company has outstanding gross Our audit procedures included the following:
trade receivables of Rs 623.88 crores
 Obtained an understanding of the Company’s
as at March 31, 2023, including
process and tested internal controls associated
overdue / aged receivables.
with the management’s assessment of
determining ECL allowance for trade
The Company supplies electricity to
receivables.
various types of customers including
individual customers with wide  Obtained an understanding of the management
ranging characteristics in the Central plan and steps being taken to collect all
Odisha. There exists inherent receivables including overdue / aged
exposure to credit risk for these receivables.
customers. Since the Company has  Evaluated management’s assessment of
acquired this business recently, recoverability of the outstanding receivables
limited past experiences are available including recoverability of overdue/ aged
to estimate credit loss allowance. receivables through inquiry with management,
and analysis of recent collection trends in
The Company has recognised respect of receivables particularly aged and pre-
Expected Credit Loss (ECL) acquisition receivables.
allowance on trade receivables using
its best estimate considering various  Evaluated management’s assumption and
factors such as segregation between judgement relating to collection considering
government and non-government business environment in which the Company
consumers, security deposit operates and rights available with the Company
available, outcome of the Company’s to recover amount due from customers for
effort to reach consumers, their most estimating the amount of ECL allowance.
recent payment behaviour as well as
 Evaluated management’s continuous
the fact that electricity is an essential
assessment of the assumptions used in the
commodity and regulations require
credit loss provision computation. These
consumers to clear old dues to get
considerations include whether there are regular
continuous electricity etc.
receipts from the customers and the Company’s
past collection history.
Based on the above mechanism and
 Verified mathematical accuracy of provision
using its best estimate, the Company
computation based on credit loss estimation
has accounted ECL provision of Rs
model used and other factors considered by the
203.97 crores as on the balance
management.
sheet date.
 Assessed the disclosures in the financial
The appropriateness of the provision statements.
for expected credit loss is subjective  Obtained necessary management
due to the high degree of judgment representation.
applied by management. Due to the
significance of trade receivables and
the related estimation uncertainty this
is considered to be a key audit matter.
(b) Accrual of regulatory asset for items which are subject matter of true up in tariff
orders (as described in Note 30 of the financial statements)
Being regulated distribution business, Our audit procedures included the following:
tariff of the Company is determined  Obtained an understanding of the Company’s
by the regulator on cost plus return on process and tested internal controls associated
equity basis wherein the cost is with the estimation and recoverability of such
subject to prudential norms. The regulatory deferral balances.
Company invoices its customers on
 Read the tariff regulations and tariff orders and
the basis of pre-approved tariff which
evaluated relevant clauses to understand
is subject to true up.
management’s assessment on allowability of
The Company recognizes revenue at
various income and expenses and consequent
the amount invoiced to customers
based on pre-approved tariff rates. As
the Company is entitled to a fixed recognition/ measurement of regulatory deferral
return on equity and applicable account balances.
incentives, the difference between  Discussed with the management to understand
the revenue recognized and their assessment on each qualitative and
entitlement as per the regulation is quantitative factor and reviewed consistency of
recognized as regulatory liabilities. the management’s explanation with the
The Company has recognized underlying documentation, rules, and
regulatory asset of Rs 82.89 crores regulations.
as at March 31, 2023.
 Assessed management’s evaluation of the likely
Accruals are determined based on
outcome in respect of material disallowances
tariff regulations and past tariff orders
made by the regulators.
and are subject to verification and
 Assessed impact, if any, recognized by the
approval by the regulators. Further
Company in respect of tariff orders received.
the costs incurred are subject to
prudential checks and prescribed  Re-calculated workings obtained from the
norms. management to check arithmetical accuracy of
the calculations.
Judgements are made in determining  Assessed disclosures made by the Company in
the accruals including interpretation accordance with the requirements of Ind AS 114
of tariff regulations. Further, in the “Regulatory Deferral Accounts.”
true-up order, the regulator has  Obtained necessary management
observed that certain expenses representation.
booked in the audited accounts are
higher than the approved costs and
disallowed certain expenses. The
regulator has also stated that these
higher costs can only be verified
through relevant information/data,
field visits and third-party audits. The
Company is taking steps considered
appropriate by the management to
claim allowance for disallowed
expenses and has treated these
expenses as recoverable/ pass-
through to the customer through
subsequent regulatory orders.
Considering judgements involved in
estimating various elements of true
up order and resulting regulatory
deferral account balance, we have
determined this to be a key audit
matter.
Other Information
The Company’s Board of Directors is responsible for the other information. The other
information comprises the information included in the Board Report but does not include the
financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent
with the financial statements, or our knowledge obtained in the audit or otherwise appears to
be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Management for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of
the Act with respect to the preparation of these financial statements that give a true and fair
view of the financial position, financial performance including other comprehensive income,
cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the

Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by
the Central Government of India in terms of sub-section (11) of section 143 of the Act,
we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4
of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors and taken
on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2023 from being appointed as a director in terms of Section 164 (2) of
the Act;
(f) With respect to the adequacy of the internal financial controls with reference to
these financial statements and the operating effectiveness of such controls, refer
to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023
has been paid / provided by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as
amended in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements – Refer Note 32 to the financial statements;
ii. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and
belief and as disclosed in note 34, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person
or entity, including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf
of the Company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and
belief and as disclosed in note 34, no funds have been received by the
Company from any persons or entity, including foreign entities (“Funding

Parties”), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
(c) Based on such audit procedures performed that have been considered
reasonable and appropriate in the circumstances, nothing has come to
our notice that has caused us to believe that the representations under
sub-clause (a) and (b) contain any material misstatement.
v. No dividend has been declared or paid during the year by the Company.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is

applicable for the Company only w.e.f. April 1, 2023, reporting under this
clause is not applicable.
For S R B C & CO LLP For SRB & Associates

ICAI Firm Registration Number: 324982E/E300003 ICAI Firm Registration Number: 310009E
RAJIB
Digitally signed by
Digitally signed
VISHAL VISHAL BANSAL
DN: cn=VISHAL BANSAL by RAJIB
, c=IN, o=Personal, email
SEKHAR SEKHAR SAHOO
BANSAL [email protected]
Date: 2023.04.24 23:49:
54 +05'30' SAHOO
Date: 2023.04.24
23:43:15 +05'30'
per Vishal Bansal per R S Sahoo
Partner Partner
Membership Number: 097546 Membership Number: 53960
UDIN: 23097546BGYCOT6032 UDIN: 23053960BGQFJX7334
Gurugram Bhubaneswar
April 24, 2023 April 24, 2023
Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and
regulatory requirements” of our report of even date
Re: TP Central Odisha Distribution Limited (“the Company”)
In terms of the information and explanations sought by us and given by the Company and the
books of account and records examined by us in the normal course of audit and to the best of
our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and
Equipment.
(B) The Company has maintained proper records showing full particulars of
intangibles assets.
(b) All Property, Plant and Equipment have not been physically verified by the
management during the year but there is a regular programme of verification of
all the Property, Plant and Equipment over a period of three years which, in our
opinion, is reasonable having regard to the size of the Company and the nature
of its assets. In accordance with the programme, a portion of the Property, Plant
and Equipment was verified during the year. No material discrepancies were
noticed on such verification.
(c) The Company does not hold any land in its name. As regard the buildings,
thereon, the Company retains operational rights over the buildings used for the
purpose of carrying out distribution business under a license granted by the
Odisha Electricity Regulatory Commission. Thus, verification of title deeds is not
applicable for such buildings.
(d) The Company has not revalued its Property, Plant and Equipment or intangible
assets during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for
holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory during the
year. In our opinion, the frequency of verification is reasonable and the coverage
and the procedure of such verification by the management is appropriate.

Discrepancies of 10% or more in aggregate for each class of inventory were not
noticed on such physical verification.
(b) As disclosed in note 15 to the financial statements, the Company has been
sanctioned working capital limits in excess of Rs. five crores in aggregate from
banks during the year on the basis of security of current assets of the Company.
Based on the records examined by us in the normal course of audit of the financial
statements, the quarterly returns/statements filed by the Company with such
banks are in agreement with the books of accounts of the Company. The
Company does not have sanctioned working capital limits in excess of Rs. five
crores in aggregate from financial institutions during the year on the basis of
security of current assets of the Company.
(iii) (a) During the year, the Company has not provided loans, advances in the nature of
loans, stood guarantee or provided security to companies, firms, Limited Liability
Partnerships or any other parties. Accordingly, the requirement to report on
clause 3(iii)(a) of the Order is not applicable to the Company.
(b) During the year, the Company has not made investments, provided guarantees,
provided security and granted loans and advances in the nature of loans to
companies, firms, limited liability partnerships or any other parties. Accordingly,
the requirement to report on clause 3(iii)(b) of the Order is not applicable to the
Company.
(c) The Company has not granted loans and advances in the nature of loans to
the requirement to report on clause 3(iii)(c) of the Order is not applicable to the
Company
(d) The Company has not granted loans or advances in the nature of loans to
the requirement to report on clause 3(iii)(d) of the Order is not applicable to the
Company.
(e) There were no loans or advance in the nature of loan granted to companies, firms,
limited liability partnerships or any other parties. Accordingly, the requirement to
report on clause 3(iii)(e) of the Order is not applicable to the Company.
(f) The Company has not granted any loans or advances in the nature of loans,
either repayable on demand or without specifying any terms or period of
repayment to companies, firms, limited liability partnerships or any other parties.
Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not
applicable to the Company.
(iv) There are no loans, investments, guarantees, and security given by the Company post-
acquisition of business in respect of which provisions of sections 185 and 186 of the
Companies Act, 2013 are applicable and accordingly, the requirement to report on
clause 3(iv) of the Order is not applicable to the Company.
(v) The Company has neither accepted any deposits from the public nor accepted any
amounts which are deemed to be deposits within the meaning of sections 73 to 76 of
the Companies Act and the rules made thereunder, to the extent applicable.
Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to
the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 148(1) of the Companies Act, 2013, related to the service of distribution of
electricity, and are of the opinion that prima facie, the specified accounts and records
have been made and maintained. We have not, however, made a detailed examination
of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including goods and services tax, provident fund,
employees’ state insurance, income-tax, cess and other statutory dues applicable
to it though there has been a slight delay in a few cases. According to the
information and explanations given to us and based on audit procedures
performed by us, no undisputed amounts payable in respect of these statutory
dues were outstanding, at the year end, for a period of more than six months from
the date they became payable. During the year, the Company did not have any
undisputed dues towards sales-tax, service tax, duty of excise, duty of customs
and value added tax.
(b) The dues of services tax have not been deposited on account of any dispute, are
as follows:
Period to which
Amount Forum where
Nature of the amount
Name of the statute (Rs in dispute is
dues relates
crores) pending
(Financial Year)
The Finance Act, Service tax 68.02 FY 2014-15 to FY Principal
1994 2017-18 Commissioner,
CGST
The Employees Provident 551.62 November 1997 High Court, Orrisa
Provident Funds and Fund to December
Miscellaneous 2011
Provisions Act, 1952
There are no dues of goods and services tax, employees' state insurance, income tax,
sales-tax, customs duty, excise duty, value added tax, cess and other statutory dues
which have not been deposited on account of any dispute.
(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded
in the books of account, in the tax assessments under the Income Tax Act, 1961 as
income during the year. Accordingly, the requirement to report on clause 3(viii) of the
Order is not applicable to the Company.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in
the payment of interest thereon to any lender
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) Term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of the Company, no funds

raised on short-term basis have been used for long-term purposes by the
Company.
(e) The Company does not have any subsidiary, associate or joint venture.
Accordingly, the requirement to report on clause 3(ix)(e) of the Order is not
(f) The Company does not have any subsidiary, associate or joint venture.
Accordingly, the requirement to report on clause 3(ix)(f) of the Order is not
(x) (a) The Company has not raised any money during the year by way of initial public
offer / further public offer (including debt instruments) hence, the requirement to
report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private placement of
shares /fully or partially or optionally convertible debentures during the year under
audit and hence, the requirement to report on clause 3(x)(b) of the Order is not
(xi) (a) No material fraud by the Company or no material fraud on the Company has been
noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the
Companies Act, 2013 has been filed by cost auditor/ secretarial auditor or by us
in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of audit
procedures.
(xii) (a) The Company is not a Nidhi Company as per the provisions of the Companies
Act, 2013. Therefore, the requirement to report on clause 3(xii)(a) of the Order is
not applicable to the Company.
(b) The Company is not a nidhi Company as per the provisions of the Companies
Act, 2013. Therefore, the requirement to report on clause 3(xii)(b) of the Order is
(c) The Company is not a nidhi Company as per the provisions of the Companies
Act, 2013. Therefore, the requirement to report on clause 3(xii)(c) of the Order is
(xiii) Transactions with the related parties are in compliance with section 177 and 188 of the
Companies Act, 2013 (as amended) where applicable and the details have been
disclosed in the notes to the financial statements, as required by the applicable

accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and
nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report,
for the period under audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions with directors or persons
connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934)
are not applicable to the Company. Accordingly, the requirement to report on
clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company is not engaged in any Non-Banking Financial or Housing Finance
activities. Accordingly, the requirement to report on clause (xvi)(b) of the Order is
(c) The Company is not a Core Investment Company (CIC) as defined in the
regulations made by Reserve Bank of India. Accordingly, the requirement to
report on clause 3(xvi)(c) of the Order is not applicable to the Company.
(d) The Group has five Core Investment Companies (CICs) which are registered with
the Reserve Bank of India and one CIC which is not required to be registered with
the Reserve Bank of India.
(xvii) The Company has not incurred cash losses in the current year as well as in the
immediately preceding financial year respectively.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly
requirement to report on Clause 3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in note 42 to the financial statements,
ageing and expected dates of realization of financial assets and payment of financial
liabilities, other information accompanying the financial statements, our knowledge of
the Board of Directors and management plans and based on our examination of the
evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
Company is not capable of meeting its liabilities existing at the date of balance sheet
as and when they fall due within a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the future viability of the Company.
We further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due within
a period of one year from the balance sheet date, will get discharged by the Company
as and when they fall due.
(xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are
required to be transferred to a fund specified in Schedule VII of the Companies
Act (the Act), in compliance with second proviso to sub section 5 of section 135
of the Act. This matter has been disclosed in note 27 to the financial statements.
(b) There are no unspent amounts in respect of ongoing projects, that are required
to be transferred to a special account in compliance of provision of sub section
(6) of section 135 of Companies Act. This matter has been disclosed in note 27
to the financial statements.
(xxi) The Company does not have any subsidiary, associate or joint venture. Accordingly,
the requirement to report on clause 3(xxi) of the Order is not applicable to the Company.

Digitally signed by
VISHAL
VISHAL BANSAL
DN: cn=VISHAL RAJIB Digitally signed
by RAJIB SEKHAR
SEKHAR
BANSAL, c=IN, o=
Personal, email=vishal.b SAHOO
BANSAL @srb.in
Date: 2023.04.24
Date: 2023.04.24 23:50:
48 +05'30' SAHOO 23:29:28 +05'30'
Partner Partner
April 24, 2023 April 24, 2023
ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

FINANCIAL STATEMENTS OF TP CENTRAL ODISHA DISTRIBUTION LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls with reference to financial statements of TP
Central Odisha Distribution Limited (“the Company”) as of March 31, 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (“ICAI”). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence
to the Company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls with
reference to these financial statements based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing, as specified under section
143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued
by ICAI. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls with reference to these financial statements was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls with reference to these financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial statements
included obtaining an understanding of internal financial controls with reference to these

financial statements, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company’s internal financial controls with reference to these
financial statements.
Meaning of Internal Financial Controls with Reference to these Financial Statements
A company's internal financial controls with reference to financial statements is a process

designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial controls with reference to
financial statements includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management and directors of the
Company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial

Statements
Because of the inherent limitations of internal financial controls with reference to financial
statements, including the possibility of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not be detected. Also, projections
of any evaluation of the internal financial controls with reference to financial statements to
future periods are subject to the risk that the internal financial control with reference to financial
statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls
with reference to financial statements and such internal financial controls with reference to
financial statements were operating effectively as at March 31, 2023, based on the internal
control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI.

RAJIB Digitally signed

Digitally signed by VISHAL
VISHAL BANSAL
DN: cn=VISHAL BANSAL, by RAJIB SEKHAR
c=IN, o=Personal, email=
SEKHAR SAHOO
BANSAL [email protected]
Date: 2023.04.24
SAHOO
Date: 2023.04.24 23:51:09
+05'30'
23:30:29 +05'30'
Partner Partner
April 24, 2023 April 24, 2023
TP CENTRAL ODISHA DISTRIBUTION LIMITED
CIN:U40109OR2020PLC032901
Power House Square, Unit – 8, Bhubaneswar, Khordha, Odisha, India, 751012
Website:www.tpcentralodisha.com
BALANCE SHEET AS AT MARCH 31, 2023
As at March 31, As at March 31,

Particulars Notes 2023 2022
₹ crore ₹ crore
I. ASSETS
(A) Non-current assets
(a) Property, plant and equipment 4 3,566.37 2,784.49
(b) Capital work in progress 5 339.68 640.62
(c) Intangible assets 4 37.77 34.24
(d) Financial assets 6 420.56 362.14
(e) Non-current tax assets (Net) 12 8.09 5.33
(f) Other non-current assets 7 2.55 2.55
Total non-current assets (A) 4,375.02 3,829.37
(B) Current Assets

(a) Inventories 8 52.87 46.82
(b) Financial assets
(1) Trade receivables 9 419.91 602.12
(2) Unbilled revenue 350.45 284.22
(3) Cash and cash equivalents 10 116.57 126.74
(4) Bank balances other than (3) above 10 1,241.11 1,055.86
(5) Loans 11 13.13 12.95
(6) Other financial assets 6 44.06 37.58
(c) Other current assets 7 109.89 104.53
Total current assets (B) 2,347.99 2,270.82
(C) Total assets before regulatory deferral account (A+B) 6,723.01 6,100.19
(D) Regulatory deferral account -Asset 30 82.89 126.24
(E) Total assets (C+D) 6,805.90 6,226.43
II. EQUITY AND LIABILITIES

(A) Equity
(a) Equity share capital 13 589.73 503.95
(b) Other equity 14 49.47 36.19
Total equity (A) 639.20 540.14
Liabilities
(B) Non-current liabilities
(a) Financial liabilities
Borrowings 15 419.27 180.65
(b) Provisions 21 339.94 249.80
(c) Capital grant and consumer contribution towards capital assets 17 1,875.02 1,455.96
(d) Deferred tax liabilities (Net) 18 17.29 12.43
(e) Other non-current liabilities 19 676.08 897.26
Total Non-current liabilities (B) 3,327.60 2,796.10
(C) Current liabilities

(a) Financial Liabilities
(1) Borrowings 15 238.21 440.39
(2) Trade payables
Total outstanding dues of micro enterprises and small enterprises 20 27.58 32.85
Total outstanding dues of creditors other than micro enterprises 20 746.98 767.56
and small enterprises
(3) Other financial liabilities 16 1,572.24 1,446.36
(b) Provisions 21 6.40 8.22
(c) Other current liabilities 19 247.69 194.81
Total current liabilities (C) 2,839.10 2,890.19
(D) Total liabilities (B+C) 6,166.70 5,686.29
(E) Total equity and liabilities (A+D) 6,805.90 6,226.43
See accompanying notes forming part of financial statements
As per our report of even date

ICAI FRN: 324982E/ E300003 ICAI FRN: E310009E
VISHAL Digitally signed by VISHAL
BANSAL
RAJIB Digitally signed by
RAJIB SEKHAR
DN: cn=VISHAL BANSAL, c=IN, o SEKHAR SAHOO
BANSAL =Personal, [email protected]
Date: 2023.04.24 23:51:30 +05'30'
SAHOO
Date: 2023.04.24
23:33:30 +05'30'
Partner Partner
Place: Gurugram Place: Bhubaneswar
Date: April 24, 2023 Date: April 24, 2023
For and on behalf of the Board of TP Central Odisha Distribution Limited Digitally signed
SANJAY Digitally signed by
SANJAY KUMAR PRAVEE by PRAVEER
SINHA
KUMAR BANGA
R SINHA Date: 2023.04.24
Date: 2023.04.24
BANGA 23:03:08 +05'30'
23:09:51 +05'30'
Sanjay Banga Praveer Sinha

Director Director
DIN:07785948 DIN:01785164
Place: Mumbai Place: Mumbai
MANTHIRAM
Digitally signed by
MANTHIRAM
SHENBAGAM
HEMAN Digitally signed by
HEMANT GOYAL
T GOYAL 22:55:26 +05'30'

SHENBAGAM Date: 2023.04.24
Date: 2023.04.24
22:56:12 +05'30'
Manthiram Shenbagam Hemant Goyal
Chief Executive Officer (CEO) Chief Financial Officer (CFO)
Place: Bhubaneswar Place: Bhubaneswar
Digitally signed
SUCHITR by SUCHITRA
DASH
A DASH Date: 2023.04.24
22:50:36 +05'30'
Suchitra Dash
Company Secretary
Date: April 24, 2023 Place: Bhubaneswar
CIN:U40109OR2020PLC032901
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023
Year Ended Year Ended

Particulars Notes
March 31, 2023 March 31, 2022
₹ crore ₹ crore
(I) Revenue from operations 22 4,829.46 4,151.15
(II) Other income 23 74.05 51.26
(III) Total income (I+II) 4,903.51 4,202.41
(IV) Expenses
Cost of power purchased & transmission charges 24 3,214.58 2,715.66
Employee benefits expense (Net) 25 760.59 745.42
Finance costs 26 106.83 85.39
Depreciation and amortization expenses 4 181.55 117.80
Other expenses 27 583.56 417.80
Total expenses (IV) 4,847.11 4,082.07
(V) Profit before movement in regulatory deferral balance and tax (III-IV) 56.40 120.34
Less: Net movement in regulatory deferral balances (Net) (38.26) (80.73)

(VI) Profit before tax 18.14 39.61
(VII) Tax expenses

Deferred tax 28 4.86 10.16
4.86 10.16
(VIII) Profit for the year (VI-VII) 13.28 29.45
(IX) Other Comprehensive Income

Items that will not be reclassified to profit or loss (Net) 29 - -
(X) Total comprehensive income for the year (VIII+IX) 13.28 29.45
(XI) Earnings Per Equity Share (Excluding Regulatory income/(expense) (Net))

Basic/ Diluted (in ₹) 33 0.83 2.99
Earnings Per Equity Share (including Regulatory income/(expense) (Net))

Basic/ Diluted (in ₹) 33 0.26 0.98

VISHAL
BANSAL
DN: cn=VISHAL BANSAL, c=IN,
RAJIB SEKHAR SAHOO
o=Personal, email=vishal.b@srb.
SEKHAR Date: 2023.04.24
BANSAL in
Date: 2023.04.24 23:51:51 +05'30
' SAHOO 23:35:09 +05'30'

Partner Partner
For and on behalf of the Board of TP Central Odisha Distribution Limited

SANJAY Digitally signed Digitally signed
by SANJAY PRAVEE bySINHA
PRAVEER
KUMAR KUMAR BANGA
BANGA
Date: 2023.04.24
23:03:46 +05'30'
23:08:54 +05'30'

Director Director
DIN:07785948 DIN:01785164
MANTHIR Digitally signed

AM by MANTHIRAM Digitally signed
SHENBAGAM HEMANT by HEMANT
SHENBAG Date: 2023.04.24 GOYAL
AM 22:56:43 +05'30' GOYAL Date: 2023.04.24

22:55:04 +05'30'

SUCHIT Digitally signed

by SUCHITRA
RA DASH
Date: 2023.04.24
DASH 22:51:09 +05'30'
Suchitra Dash
Company Secretary
CIN:U40109OR2020PLC032901
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2023
Accounting Policy
Cash flows from operating activities are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of non-cash
nature and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated and presented separately. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and
are subject to an insignificant risk of changes in value to be cash equivalents.
Year Ended
Particulars March 31, 2023 March 31, 2022
₹ crore ₹ crore
A. Cash Flow from Operating Activities
Profit before tax 18.14 39.61
Adjustments to reconcile profit and loss to net cash provided by operating activities
Depreciation and amortisation expenses 181.55 117.80
Interest income (48.57) (26.28)
Interest expense 49.30 56.61
Interest on consumer security deposit 61.67 31.64
Amortization of consumer contribution & grant (88.47) (74.29)
Allowance for doubtful debts and advances 136.07 39.78
291.55 145.26
Operating profit before working capital changes 309.69 184.87
Adjustments for (increase)/decrease in operating assets:
Inventories (6.05) 29.72
Trade receivables 46.14 (523.82)
Unbilled revenue (66.23) (14.26)
Other current assets (5.36) (34.72)
Other non-current assets - (2.55)
Other financial assets - current (5.59) (14.80)
Other financial assets - non-current (0.06) (0.02)
Regulatory deferral account 63.38 80.73
Movement in operating asset 26.23 (479.72)
Adjustments for increase/(decrease) in operating liabilities:
Trade payables (25.85) 239.86
Other financial liabilities-current (12.73) (132.20)
Other current liabilities 52.88 73.32
Other non-current liabilities - 35.74
Non-current provision 70.11 62.98
Current provision (1.82) 2.48
Movement in operating liability 82.59 282.18
Cash generated/ (used) in operations 418.51 (12.67)
Taxes paid (Net of refund received) (2.76) (1.36)
Net Cash Flows from /(used) in Operating Activities (A)* 415.75 (14.03)
B. Cash Flow from Investing Activities
Capital expenditure on property, plant and equipment (651.55) (747.48)
Interest received 47.50 26.34
Movement in bank balance not considered as cash and cash equivalents (Net) (243.61) (131.58)
Net Cash Flow used in Investing Activities (B) (847.66) (852.72)
C. Cash flow from Financing Activities
Proceed from non-current borrowings 426.61 220.40
Repayment of non-current borrowings (195.04) (8.52)
Proceeds from issuing shares or other equity instruments 43.72 104.04
Proceeds of security deposits from electricity consumers (Net) 136.94 89.83
Proceeds from contribution for capital works 199.01 178.85
Proceeds from subsidies towards cost of capital assets 87.33 52.69
Proceed from working capital loans 2,283.00 1,486.00
Repayment of working capital loans (2,461.00) (1,410.00)
Proceeds/(repayment) from short-term borrowings (17.24) 232.85
Interest paid on bank loan & other borrowing cost (50.75) (56.48)
Interest paid on security deposit (30.84) (31.50)
Net Cash Flow from Financing Activities (C) 421.74 858.16
D. Net decrease in cash and cash equivalents (A+B+C) (10.17) (8.59)
E. Cash and cash equivalents at the beginning of the year 126.74 135.33
F. Cash and cash equivalents at year end (Refer note 10) 116.57 126.74
G. Non-cash financing and investing activities
Issuance of equity shares for considerations other than cash (Refer note 13) 42.03 99.94
* Net cash flow from operating activities includes an amount of ₹1.17 crores (March 31, 2022: ₹0.75 crores) towards corporate social responsibility.

BANSAL
DN: cn=VISHAL BANSAL, c=IN, o SEKHAR
RAJIB SEKHAR
SAHOO
Date: 2023.04.24
BANSAL =Personal, [email protected]
Date: 2023.04.24 23:52:06 +05'30' SAHOO 23:36:02 +05'30'
Partner Partner
Digitally signed
PRAVEE by PRAVEER
SINHA
SANJAY
KUMAR
Digitally signed by
SANJAY KUMAR BANGA
Date: 2023.04.24
23:08:02 +05'30'
BANGA 23:04:18 +05'30'

Director Director
DIN:07785948 DIN:01785164
Digitally signed by HEMAN Digitally
by HEMANT
signed
MANTHIRAM MANTHIRAM
SHENBAGAM
SHENBAGAM T GOYAL
Date:
Date: 2023.04.24
22:57:08 +05'30' GOYAL 2023.04.24
22:54:43 +05'30'
SUCHITR Digitally signed by

SUCHITRA DASH
A DASH
Date: 2023.04.24
22:51:31 +05'30'
Suchitra Dash
Company Secretary
CIN:U40109OR2020PLC032901
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2023
A. Equity Share Capital

No. of Shares Amount
Nos ₹ crore
Balance as at April 1, 2021 30,00,00,000 300.00
Issued during the year 20,39,50,000 203.95
Balance as at March 31, 2022 50,39,50,000 503.95
Balance as at April 1, 2022 50,39,50,000 503.95

Issued during the year 8,57,84,600 85.78
Balance as at March 31, 2023 58,97,34,600 589.73
B. Other Equity
Retained Total
Description
Earnings
₹ crore ₹ crore
Balance as at April 1, 2021 6.74 6.74
Profit for the year 29.45 29.45
Other comprehensive income for the year - -
Total Comprehensive Income 29.45 29.45
Balance as at March 31, 2022 36.19 36.19
Balance as at April 1, 2022 36.19 36.19

Total Comprehensive Income 13.28 13.28
Balance as at March 31, 2023 49.47 49.47

BANSAL RAJIB Digitally signed by
RAJIB SEKHAR
SEKHAR
DN: cn=VISHAL BANSAL, c=IN, o
=Personal, [email protected] SAHOO
BANSAL Date: 2023.04.24 23:52:20 +05'30
' SAHOO
Date: 2023.04.24
23:36:49 +05'30'
Partner Partner

SANJAY Digitally signed Digitally signed
KUMAR
by SANJAY
KUMAR BANGA
PRAVEE by PRAVEER
SINHA
BANGA
Date: 2023.04.24
23:04:50 +05'30'
23:07:17 +05'30'

Director Director
DIN:07785948 DIN:01785164
Digitally signed by HEMAN Digitally signed

by HEMANT
MANTHIRAM
MANTHIRAM
SHENBAGAM
SHENBAGAM T GOYAL
Date: 2023.04.24
Date: 2023.04.24
22:57:36 +05'30' GOYAL 22:54:23 +05'30'

Digitally signed
SUCHITR byDASH
SUCHITRA
A DASH Date: 2023.04.24

22:51:53 +05'30'
Suchitra Dash
Company Secretary
CIN:U40109OR2020PLC032901
NOTES FORMING PART OF THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2023
Note 1
Corporate Information
TP Central Odisha Distribution Limited (TPCODL or the Company) is a public limited company, domiciled and incorporated in India and is engaged in the
business of distribution of electricity in Central Odisha. The Company has been incorporated on April 6, 2020 under the Companies Act, 2013 (as amended).
Pursuant to vesting order issued by the Odisha Electricity Regulatory Commission ('OERC') dated May 26, 2020, the Company acquired the business of
distributing power in Central Orissa (‘business’) from the Central Electricity and Supply Utility ('CESU') with effect from June 1, 2020 (vesting date).
Accordingly, the Company is a licensee to carry out the function of distribution and retail supply of electricity covering the distribution circles of
Bhubaneshwar, Cuttack, Paradeep and Dhenkanal in the state of Odisha for a period of 25 years effective from June 1, 2020, which also marked the
commencement of commercial operations for the Company.
The registered office of the Company is located at Power House Square, Unit - 8, Bhubaneswar, Khordha, Odisha - 751012
The Company is subsidiary of The Tata Power Company Limited (TPCL) which holds 51% equity shares and balance 49% equity shares are held by GRIDCO
Ltd.
Note 2
2.1 Statement of compliance

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) read with section 133 of the Companies Act, 2013 (as amended from time to time). The
Company also applies requirement of Division II to Schedule III of the Companies Act 2013, while presenting financial statements. During the
year, certain amendments to Ind AS have become applicable and been adopted by the Company. However, their applications did not have any
material impact on financial position and financial performance of the Company.
2.2 Basis of preparation and presentation

The Ind AS Financial Statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been
measured at fair value.
- certain financial assets and liabilities measured at fair value (Refer accounting policy regarding financial instruments)
- employee benefit expenses (refer note 21 for accounting policy)
Historical cost is the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire assets at the time of their
acquisition or the amount of proceeds received in exchange for the obligation, or the amounts of cash or cash equivalents expected to be paid to
satisfy the liability in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date.
The financial statements are presented in ₹ and all values are rounded to the nearest crores (₹ '00,00,000), except when otherwise indicated. The
Company has prepared the financial statements on the basis that it will continue to operate as a going concern.
Note 3
Other Significant Accounting Policies
Accounting policies are set out along with respective explanatory notes where it specifically relates to such transactions or balances. Other significant
accounting policies are set out below:
3.1 Foreign currencies

These financial statements are presented in Indian Rupee(₹), which is the functional currency of the Company. The functional currency represents
the currency of the primary economic environment in which the Company operates.
Transactions in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated
monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and exchange gains and losses arising on
settlement and restatement are recognized in the Statement of Profit and Loss.
3.2 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset treated as current when it
is:
- expected to be realised or intended to be sold or consumed in normal operating cycle,
- held primarily for the purpose of trading,
- expected to be realised within twelve months after the reporting period, or
- cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting
period.
All other assets are classified as non-current.
A liability is current when:

- it is expected to be settled in normal operating cycle,
- it is held primarily for the purpose of trading,
- it is due to be settled within twelve months after the reporting period, or
- there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company
has identified twelve months as its operating cycle.
CIN:U40109OR2020PLC032901
3.3 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
Except for trade receivables, financial assets and financial liabilities are initially measured at fair value. Trade receivables are measured at the
transaction price determined in accordance with Ind AS 115. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.
Effective interest method

The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income or expense
over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of
the financial instrument, or where appropriate, a shorter period.
3.4 Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market
place.
All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of
the financial assets.
3.4.1 Financial assets at amortized cost

A financial asset shall be measured at amortized cost using effective interest rates if both of the following conditions are met:
(i) financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
(ii) contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
3.4.2 Financial assets at fair value through profit or loss (FVTPL)

Financial assets at FVTPL include financial assets that either do not meet the criteria for amortized cost classification and/or fair value through
other comprehensive income (FVTOCI) classification or are equity instruments held for trading or that meet certain conditions and are designated
at FVTPL upon initial recognition. All derivative financial instruments also fall into this category, except for those designated and effective as
hedging instruments, for which the hedge accounting requirements will apply. Assets in this category are measured at fair value with gains or
losses recognized in the Statement of Profit and Loss. The fair values of financial assets in this category are determined by reference to active
market transactions or using a valuation technique where no active market exists.
A financial asset is held for trading if:
(i) it has been acquired principally for the purpose of selling it in the near term; or
(ii) on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual
pattern of short-term profit-taking; or
(iii) it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.
Dividends on these investments in equity instruments are recognised in the Statement of Profit and Loss when the Company’s right to receive the
dividends is established, it is probable that the economic benefits associated with the dividend will flow to the Company, the dividend does not
represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividends recognised in the
Statement of Profit and Loss are included in the ‘Other income’ line item.
3.4.3 Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset in the nature of debt instrument is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes
in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity
investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are
measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the
‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to the Statement of Profit
and Loss on disposal of the investments.
CIN:U40109OR2020PLC032901
3.4.4 Impairment of financial asset

The Company applies the expected credit loss (ECL) model for recognising impairment loss on financial assets measured at amortized cost, trade
receivables and other contractual rights to receive cash or other financial asset not designated as at FVTPL.
For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of
Ind AS 115 "Revenue from Contracts with Customers", the Company always measures the loss allowance at an amount equal to lifetime expected
credit losses using the simplified approach permitted under Ind AS 109 "Financial Instruments".
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the
difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the
Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial
instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as
permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical
credit loss experience and adjusted for forward-looking information.
3.4.5 Derecognition of financial asset

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and and also transfers all significant risks and rewards of ownership of the asset to another party.
3.5 Financial liabilities and equity instruments

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

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Incremental
costs directly attributable to the issuance of new ordinary shares and share options classified as equity are recognized as a deduction from equity,
net of any tax effects.
3.5.3 Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method.
3.5.3.1 Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of each reporting
period. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective
interest method.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the
relevant reporting period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees paid or
received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
3.5.3.2 Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An
exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the
consideration paid and payable is recognised in the Statement of Profit and Loss.
3.6 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best
interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable
- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised at fair value in the financial statements on a recurring basis, the Group determines whether transfers
have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
External valuers are involved for valuation of significant assets, such as properties and other assets/ liabilities acquired as part of business
combination.
CIN:U40109OR2020PLC032901
3.7 Lease accounting

At inception of contract, the Company assesses whether the Contract is or contains a lease. A contract is or contains a lease if the contract
convey a right to control the use of an identified asset for a period of time in exchange for consideration. At inception or on reassessment of a
contract that contains a lease component, the Company allocates consideration in the contract to each lease component on the basis of their
relative standalone price.
3.7.1 As a Lessee
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease
incentives received and estimate of costs to dismantle. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets.
Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made
over the lease term. In calculating the present value of lease payments, the Company generally uses its incremental borrowing rate at the lease
commencement date if the discount rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. The carrying amount is remeasured when there is a change in future lease payments arising from a change in index or rate. In addition,
the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a
change in the assessment of an option to purchase the underlying asset.
Short term leases and leases of low value of assets

The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition
exemption that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on
a straight-line basis over the lease term.
3.8 Dividend
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability
on the date of declaration by the Company's Board of Directors.
3.9 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be
complied with. Where the grant relates to a specified asset, it is recognized as deferred income, and amortized over the expected useful life of the
asset. Other grants relating to revenue are recognized in the statement of profit and loss on a systematic basis to match with the related expense.
3.10 Business combinations and goodwill

Business combinations, except those under common control, are accounted for using the acquisition method. The cost of an acquisition is
measured as the aggregate of the consideration transferred measured at acquisition date fair value. Acquisition-related costs are expensed as
incurred.
At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their acquisition date fair values. For this
purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values
irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities
acquired in a business combination are measured at the basis indicated below:
- Deferred tax assets or liabilities, and the liabilities or assets related to employee benefit arrangements are recognised and measured in
accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.
- Potential tax effects of temporary differences and carry forwards of an acquiree that exist at the acquisition date or arise as a result of the
acquisition are accounted in accordance with Ind AS 12.
- When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in
accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired
and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses
whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the
aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear
evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill
acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that
the unit may be impaired. If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying
amount of each asset in the unit. Any impairment loss for goodwill as well as other assets, if any, is recognised in profit or loss. An impairment
loss recognised for goodwill as well as other assets, if any, is not reversed in subsequent periods.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group
reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted through goodwill during
the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that
existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called as
measurement period adjustments. The measurement period does not exceed one year from the acquisition date.
CIN:U40109OR2020PLC032901
3.11 Standards issued but not yet effective

The key new and amended standards that are issued, but not yet effective, up to the date of issuance of the financial statements are disclosed
below. The Company intends to adopt these new and amended standards, if applicable, when they become effective.
Definition of Accounting Estimates - Amendments to Ind AS 8
The amendment introduces a definition of 'accounting estimates'. The amendments clarify the distinction between changes in accounting
estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs
to develop accounting estimates. The amendments are effective for annual reporting periods beginning on or after 1 April 2023 and apply to
changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.
The amendments are not expected to have a material impact on the Company’s financial statements.
Disclosure of Accounting Policies - Amendments to Ind AS 1
The amendment provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments
aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their
‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the
concept of materiality in making decisions about accounting policy disclosures.
The amendments are applicable for annual periods beginning on or after 1 April 2023 with earlier application permitted. The Company is revisiting
its accounting policy information disclosures to ensure consistency with the amended requirements.
Deferred tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12
The Ministry of Corporate Affairs (MCA) has notified amendments to Ind AS 12, which narrow the scope of the initial recognition exception under
Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments
should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning
of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability
should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations.
The Company is currently assessing impact of the amendments.
3.12 Critical accounting estimates and judgements

In the application of the Company's accounting policies, management of the Company is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods. Detailed information about each of these estimates and judgements is included in relevant notes together with
information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
1 Estimates related to accrual of regulatory deferrals and revenue recognition

2 Estimation of expected credit loss
3 Estimation of defined benefit obligation
4 Estimations of tax expense and balances
5 Estimation of provision required toward litigation and other claims against the Company
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.
CIN:U40109OR2020PLC032901
4 Property, Plant and Equipment :

4.01 Accounting Policy :
Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes
purchase price (net of trade discount and rebates) and any directly attributable cost of bringing the asset to its working condition for its
intended use and for qualifying assets, borrowing costs capitalised in accordance with the Ind AS 23. Capital work in progress is stated at cost,
net of accumulated impairment loss, if any. When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognised in the statement of profit and loss as incurred. Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for separately are
derecognised when replaced.
Depreciation on regulated assets

Depreciation commences when an asset is ready for its intended use.
Depreciation on property, plant and equipment in respect of electricity business of the Company covered under Part B of Schedule II of the
Companies Act, 2013, has been provided on the straight line method at the rates specified in vesting order and tariff regulation notified by
regulatory commission.
Rate of depreciation of the property, plant and equipment is as follows:
Rate (Assets Rate (New

Type of asset transferred on assets acquired
acquisition) post acquisition)
Buildings 1.80% 3.34%

Plant & Machinery including transmission lines & cable network 3.60% 5.28% to 18%
Furniture and fixtures 4.55% 6.33%
Office equipment 9% 5.28% to 15%
Vehicles 12.86% 9.50% to 18%
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for on a prospective basis. Based on the Vesting Order/ tariff regulations, the residual value of the assets is
considered at 10% of the Original Cost.
Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated
impairment losses if any. Amortisation is recognised on a straight-line basis over their estimated useful lives as below. The estimated useful life
and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
Type of asset Useful lives (New

assets)
Software 6 Years
Derecognition
An item of property, plant and equipment or intangible assets is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment's or intangible asset's is determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in the statement of profit and loss.
Impairment of tangible and intangible assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is
the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined
for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of
assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to
its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation
model is used. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for
each of the Company’s CGUs to which the individual assets are allocated. Impairment loss, if any, is recognised in the statement of profit and
loss.
CIN:U40109OR2020PLC032901
4.02 Property, Plant and Equipment : ₹ crore
Gross Block Accumulated Depreciation Net Block
Particulars As at April 01, As at March As at April 01, Elimination on As at March As at March
Additions Deletions For the Year
2022 31, 2023 2022 deletions 31, 2023 31, 2023
Buildings 28.07 25.36 - 53.43 0.96 1.15 - 2.11 51.32
Plant & Machinery including transmission lines & cable 2,922.20 932.40 6.62 3,847.98 186.20 172.63 0.55 358.28 3,489.70
network
Motor Vehicles 1.61 2.07 0.26 3.42 0.15 0.25 0.03 0.37 3.05
Furniture & Fixtures 15.06 2.21 - 17.27 0.83 0.81 - 1.64 15.63
Office Equipment 6.08 1.40 - 7.48 0.39 0.42 - 0.81 6.67
Total (A) 2,973.02 963.44 6.88 3,929.58 188.53 175.26 0.58 363.21 3,566.37
₹ crore
Gross Block Accumulated Depreciation Net Block
As at April 01, As at March As at April 01, Elimination on As at March As at March
Particulars Additions Deletions For the Year
2021 31, 2022 2021 deletions 31, 2022 31, 2022
Buildings 15.18 12.89 - 28.07 0.34 0.62 - 0.96 27.11
Plant & Machinery including transmission lines & cable 2,239.51 691.27 8.58 2,922.20 73.51 112.69 - 186.20 2,736.00
network
Motor Vehicles 0.86 0.80 0.05 1.61 0.03 0.12 - 0.15 1.46
Furniture & Fixtures 13.67 1.39 0.00 15.06 0.14 0.69 - 0.83 14.23
Office Equipment 2.74 3.35 0.01 6.08 0.07 0.32 - 0.39 5.69
Total (A) 2,271.96 709.70 8.64 2,973.02 74.09 114.44 - 188.53 2,784.49
4.03 Intangible Assets ₹ crore
Gross Block Accumulated Amortization Net Block
Particulars
As at April 01, As at March As at April 01, Elimination on As at March As at March
2022 31, 2023 2022 disposal 31, 2023 31, 2023
Software 39.14 9.82 - 48.96 4.90 6.29 - 11.19 37.77
Total (B) 39.14 9.82 - 48.96 4.90 6.29 - 11.19 37.77
₹ crore
Gross Block Accumulated Amortization Net Block
Particulars As at April 01, As at March As at April 01, Elimination on As at March As at March
2021 31, 2022 2021 disposal 31, 2022 31, 2022
Software 15.34 23.80 - 39.14 1.55 3.35 - 4.90 34.24
Total (B) 15.34 23.80 - 39.14 1.55 3.35 - 4.90 34.24
4.04 Additional information regarding assets acquired from CESU as on 1st June 2020 ₹ crore
Year Ended Year Ended As at March
As at June 1, 2020
March 31, 2022 March 31, 2023 31, 2023
Particulars
Accumulated Net Block Deletion Gross Accumulated Deletion Gross Accumulated
Gross Block Net Block
Depreciation before deletion Block depreciation Block depreciation
Buildings 23.47 9.97 13.50 - - - - 13.50

Plant & Machinery and transmission lines & cable network 3,366.01 1,326.30 2,039.71 12.72 4.14 25.23 18.61 2,024.51
Motor Vehicles 0.60 0.55 0.05 0.52 0.47 - - -

Furniture & Fixtures 3.48 3.29 0.19 0.05 0.05 - - 0.19
Office Equipment 10.17 9.66 0.51 0.15 0.14 - - 0.50
Total 3,403.73 1,349.77 2,053.96 13.44 4.80 25.23 18.61 2,038.71
CIN:U40109OR2020PLC032901
4.05 Depreciation and amortization charged to Statement of Profit and Loss : ₹ crore
Particulars Year Ended Year Ended
March 31, March 31,
2023 2022
Depreciation on tangible Assets 175.26 114.44
Amortization of Intangible Assets 6.29 3.35
Total 181.55 117.80
4.06 The Company does not own any land in its name. As per terms of vesting order, land has been given on lease to the Company for a nominal consideration of ₹1 per year, till the expiry of power distribution license. The
Company has retained operational rights over these lands used for the purpose of carrying out distribution business under the license granted by the OERC.
Beneficial ownership of immovable properties constructed over the above lands viz; buildings have been transferred to the Company. As per terms of vesting order, title for the said immovable properties continues to be
in the name of erstwhile administration and Companies.
4.07 As per the terms of the Vesting Order and the Carve Out Order, if the Company has been vested with one or more items of the property, plant and equipment created out of the Government Grant and/or consumer
contribution, then it will not be allowed depreciation on those assets for determination of Tariff under the para 47 (a)(iii) of the Vesting Order. This is irrespective of whether the grant and/or consumer contribution
liability has been transferred to the Company or not. Based on balancing of assets and liabilities transferred to the Company in the Opening Balance Sheet as per the Carve Out Order, the management believes that the
Company is allowed to claim depreciation on the entire carrying amount of PPE transferred to it pursuant to the Vesting and the Carve-Out Orders. Hence, this requirement will not have any impact on financial position
and financial performance of the Company as at and for the year ended March 31, 2023. Further, as per the Vesting Order and the Carve Out Order, the Company is required to utilise any amount realised through
depreciation toward meeting certain opening liabilities transferred (“additional serviceable liabilities”). If there are any shortages in realisation to meet these additional serviceable liabilities, then the OERC will allow such
shortfall through Aggregate Revenue Requirement (‘ARR’) adjustment.
4.08 Physical verification of PPE

In accordance with the physical verification policy adopted by the Company, an independent party has carried out physical verification in respect of a portion of PPE belonging to the Company. Based on reports issued by
the independent party, the discrepancies noticed are not material and no adjustments thereof has been accounted for.
During the previous year, Plant and Machinery having net written down value of ₹ 8.58 Crores (Gross Carrying Amount: ₹ 12.72 Crores) and Furniture & Fixture, Office Vehicle and Office Equipments having net written
down value of ₹ 0.06 Crores (Gross Carrying Amount: ₹0.72 Crores) were not in existence and accordingly, had been decapitalised with corresponding adjustment to Regulatory Deferral Balance account.
Pursuant to the requirements of vesting and carve out order, the Company had submitted the physical verification reports and reconciliations for the previous year to the OERC for its approval for the write off of these
assets and consequential adjustment to the government grant liability pursuant to the terms of the vesting order. The approval of the OERC is still awaited.
In accordance with the vesting order and applicable regulations, these adjustments to the carrying amount of PPE will be allowed to be recovered by the Company by way of future tariff adjustment or adjustment to the
grant liability or any other appropriate manner determined by the OERC. The Company is confident of receiving approval for write-off from the OERC and believes that such approval will not have any impact on the
financial position and financial performance of the Company as reflected in the financial statements.
4.09 Property Plant and Equipment created out of consumer funds

Considering the provisions of the Odisha Electricity Regulatory Commission Distribution (Conditions of Supply) Code, 2019, the management believes that it has legal right and ownership over the property, plant and
equipment (PPE) which are directly funded by the consumers and are being used to supply electricity to the consumers. Accordingly, during the year, the Company has capitalized PPE amounting to ₹216.78 Crores
(March 31, 2022: ₹41.22 Crores) and recognised the corresponding liability under the head consumer contribution. Depreciation on PPE as well as amortisation of ₹8.87 Crores (March 31, 2022: ₹3.35 Crores) are being
recognised in the Statement of Profit and Loss, having no net impact on profit or loss of the Company.
The management believes that the accounting adopted by the Company reflects substance of the arrangement and is also in compliance with the applicable requirements. Based on physical verification policy adopted by
the Company, physical verification of these assets is being carried out along with other assets of the Company.
4.10 Refer note 15 for charge created against borrowings.

CIN:U40109OR2020PLC032901
5.00 Capital work-in-progress (CWIP)

Accounting Policy
Capital work in progress is stated at cost, net of accumulated impairment loss, if any.
₹ crore
Particulars
As at April 01, Capitalized/ As at March
Additions
2022 Disposals 31, 2023
Capital work-in-progress (majorly pertains to Plant & Machinery and 640.62 672.32 973.26 339.68
transmission lines & cable network)
Total 640.62 672.32 973.26 339.68
₹ crore
Particulars As at April 01, Capitalized/ As at March
Additions
2021 Disposals 31, 2022
Capital work-in-progress (majorly pertains to Plant & Machinery and 526.73 847.39 733.50 640.62
transmission lines & cable network)
Total 526.73 847.39 733.50 640.62
Project in progress includes setting up substations, installations of transformer and cable networks at various locations in central part of Odisha. CWIP includes closing capital inventory of ₹145.70 Crores as at March 31,
2023 (March 31, 2022: ₹165.62 Crores).
5.01 Capital work in progress (CWIP) ageing schedule * ₹ crore

Less than 1 More than 3
As at March 31, 2023 1-2 years 2-3 years Total
Year years
Capex-Government Funded 30.31 11.60 0.05 - 41.96
Capex-Consumer Funded 47.54 7.81 4.19 - 59.54
Capex-Meter 21.97 8.39 - - 30.36
Capex- Own 142.89 23.10 41.83 - 207.82
Capex Opening - - - - -
Total 242.71 50.90 46.07 - 339.68
₹ crore
Less than 1 More than 3
As at March 31, 2022 1-2 years 2-3 years Total
Year years
Capex-Government Funded 278.30 49.24 - - 327.54
Capex-Consumer Funded 11.20 4.31 - - 15.51
Capex-Meter 38.48 9.34 - - 47.82
Capex- Own 163.24 12.66 - - 175.90
Capex Opening - 73.85 - - 73.85
Total 491.22 149.40 - - 640.62
* CWIP ageing schedule has been prepared from the date of acquisition of business by the Company.
5.02 CWIP Completion Schedule whose completion is overdue or has exceeds its cost compared to its original plan
Post acquisition of business, there are no projects with costs overrun or exceeding the planned timelines for completion.
CIN:U40109OR2020PLC032901
6 Financial Assets As at March 31, As at March 31,

2023 2022
Non Current (Unsecured and considered good, at amortised cost) ₹ crore ₹ crore
Security deposits to various authorities 0.31 0.25

Other receivables 0.35 0.35
Deposits with banks -earmarked balances* 419.90 361.54
Total other financial assets (Non current) 420.56 362.14
*Earmarked balances against government grants/consumer contribution for work under progress.
Current (Unsecured and considered good, unless otherwise stated, at amortised cost)
Other receivables* 41.27 35.86
Interest accrued but not due 2.79 1.72
Total other financial assets (Current) 44.06 37.58
*Other receivables includes net of past arrear collections & payments and receivable from collection agencies.
7 Other Assets As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Non Current (Unsecured and considered good at amortised cost)
Advances to other parties 2.55 2.55
Total other assets (Non-current ) 2.55 2.55
Current (Unsecured and considered good at amortised cost)

Other assets 0.03 0.04
Prepaid expenses 8.41 7.88
Advance to vendor 43.12 43.22
Other advance (receivable from RPFC, advance for expenses, etc.) 58.33 53.39
Total other assets (Current) 109.89 104.53
8 Inventories (At lower of cost and net realisable value)

Accounting Policy
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on moving weighted average basis. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Cost of inventory includes cost of
purchase and other costs incurred in bringing the inventories to their present location and condition. Unserviceable/damaged stores and spares are identified and written
down based on technical evaluation.
2023 2022
₹ crore ₹ crore
Stores and spares 52.87 46.82
Total inventories 52.87 46.82
Note: Refer note 15 for charge created against borrowings
9 Trade Receivables- Current (At amortized cost) As at March 31, As at March 31,
2023 2022
₹ crore ₹ crore
Unsecured, considered good 244.53 295.64
Significant increase in the credit risk 379.35 374.38
623.88 670.02
Allowance for doubtful debts (expected credit loss) (203.97) (67.90)
Total trade receivables 419.91 602.12
Note
a. The Company holds security deposits from consumers amounting to ₹ 1,013.34 Crores (March 31, 2022: ₹ 876.40 Crores).
b. Refer note no 15 for charge created against borrowings.
c. The management has formulated a mechanism for receiving and addressing customer complaints including those related to billing and receivables outstanding.
The management has identified disputed receivables basis information available with the Company.
d. Trade receivables include amount of ₹ 379.35 Crores (March 31, 2022: ₹ 374.38 Crores) from consumers who are inactive/ permanently disconnected,
temporarily disconnected and/ or were non-paying for one year or more as at March 31, 2023 and disputed.
The Company has acquired power distribution business of Central Electricity and Supply Utility (CESU) w.e.f. June 01, 2020. The management believes that
collection data related to pre-acquisition period is not relevant to assess expected credit loss (ECL) allowance on receivables in the post-acquisition period. In this
scenario, the Company has recognised Expected Credit Loss (ECL) allowance on trade receivables using its best estimate considering among other aspects factors
such as segregation between government and non-government consumers, security deposit available, outcome of the Company’s effort to reach consumers, their
most recent payment behaviour as well as the fact that electricity is an essential commodity and regulations will require consumers to clear old dues to get
continuous electricity.
Post-acquisition of power distribution business from the CESU, the Company’s continuous endeavour has been to reduce AT&C losses, reduce provisional billing
and improve collection through better reach to consumers as well as other measures. In the process, the Company had initially faced several challenges including
more than one Covid waves, Cyclones and delays in appointment/ working of metering, billing and collection (MBC) agencies for reasons beyond control of the
Company. The Company successfully dealt with these challenges. It is continuously working toward reducing provisional billing and improving overall collection
efficiency by changing payment behaviour of consumers. The management is confident it will be able to collect most of the outstanding receivables as it increases
its reach to the consumers and also considering that electricity is an essential commodity for all consumers. Accordingly, the management believes the above ECL
allowance reflects best estimate and is appropriate as per Ind AS 109 – Financial Instruments.
CIN:U40109OR2020PLC032901
9.01 Ageing of receivables as at March 31, 2023 ₹ crore

Customer Category Less than 6 6 months – 1 More than 2
Not due 1-2 years Total
Months year years
A. Undisputed Trade Receivables -
a) Considered good 10.91 15.34 27.87 37.32 153.09 244.53
b) Significant increase in credit risk - 36.34 77.40 186.70 73.96 374.40
B. Disputed Trade receivables
a) Significant increase in credit risk 0.35 0.53 0.86 2.35 0.86 4.95
Total 11.26 52.21 106.13 226.37 227.91 623.88
Ageing of receivables as at March 31, 2022 ₹ crore

Customer Category Less than 6 6 months – 1
Not due 1-2 years Total
Months year
A. Undisputed Trade Receivables
a) Considered good 16.37 177.63 81.87 19.77 295.64
b) Significant increase in credit risk - - 85.25 277.40 362.65
B. Disputed Trade receivables
a) Significant increase in credit risk 2.31 6.19 1.66 1.57 11.73
Total 18.68 183.82 168.78 298.74 670.02
Note: Trade receivable ageing schedule has been prepared from the date of acquisition of business by the Company.
9.02 Movement in the allowance for doubtful trade receivables

2023 2022
₹ crore ₹ crore
Balance at the beginning of the year 67.90 28.12
Add: Expected credit losses for the year (Refer note no 27) 136.07 39.78
Balance at the end of the year 203.97 67.90
9.03 The concentration of credit risk is limited due to the fact that the large customer are either industrial/ corporate or government entities and remaining customer base is
large and widely dispersed. The Company also holds security deposits from consumers.
10 Cash and Bank Balances
10.01 Accounting Policy

Cash and cash equivalents comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value. Cash and cash equivalents include balances with banks which are unrestricted for withdrawal and usage.

2023 2022
₹ crore ₹ crore
10.02 Cash and Cash Equivalents
Balances with banks:
In current accounts 93.27 93.45
Cash on hand 11.58 19.87
Cheques on hand 11.72 13.42
Total cash and cash equivalents 116.57 126.74
10.03 Other balances with banks (At amortised cost)*

Earmarked balances with banks 283.01 559.92
Deposits with banks -Earmarked balances 958.10 495.94
Total other balances with banks 1,241.11 1,055.86
Total cash and bank balances 1,357.68 1,182.60

* Earmarked balances against consumer security deposits, consumer contribution for work under progress and short term borrowings.
10.04 Reconciliation of Liabilities from Financing Activities ₹ crore

Particulars As at April 1, Cash Flows Non-cash As at March 31,
2022 Proceeds Payment Adjustments 2023
Non-current borrowings 210.19 426.61 (195.04) 0.11 441.87
Current borrowings 410.85 - (17.24) - 393.61
Security deposits from electricity consumers 876.40 136.94 - - 1,013.34
Contribution for capital works 1,614.46 199.01 - (79.21) 1,734.26
Subsidies towards cost of capital assets 703.04 87.33 - (9.26) 781.11
Total 3,814.94 849.89 (212.28) (88.36) 4,364.19
Particulars As at April 1, Cash Flows Non-cash As at March 31,

2021 Proceeds Payment Adjustments 2022
Non-current borrowings 0.18 220.40 (8.52) (1.87) 210.19
Current borrowings 102.00 308.85 - - 410.85
Security deposits from electricity consumers 786.57 89.83 - - 876.40
Contribution for capital works 1,509.07 178.85 - (73.46) 1,614.46
Subsidies towards cost of capital assets 651.18 52.69 - (0.83) 703.04
Total 3,049.00 850.62 (8.52) (76.16) 3,814.94
11 Loans As at March 31, As at March 31,

2023 2022
Current (Unsecured and considered good, unless otherwise stated, at amortised cost) ₹ crore ₹ crore
Loans to employees & others 13.13 12.95
Total loans 13.13 12.95
12 Non-Current Tax Assets As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Non-current tax assets
Income tax paid 8.09 5.33
Total non-current tax assets 8.09 5.33
CIN:U40109OR2020PLC032901
13 Share Capital As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Authorised share capital :
100,00,00,000 Nos (March 31, 2022: 100,00,00,000 Nos) equity shares of ₹10/- each 1,000.00 1,000.00
1,000.00 1,000.00
Issued and subscribed capital :
58,97,34,600 Nos (March 31, 2022: 50,39,50,000 Nos) equity shares of ₹10/- each (fully paid up) 589.73 503.95
Total issued, subscribed and paid-up share 589.73 503.95
a. Reconciliation of shares outstanding as at the beginning and at the end of the reporting year :
Equity shares As at March 31, As at March 31,

2023 2022
No. of Shares No. of Shares
At the beginning of the year 50,39,50,000 30,00,00,000
Issued during the year 8,57,84,600 20,39,50,000
Outstanding at the end of the year 58,97,34,600 50,39,50,000
b. Rights, preference and restrictions attached to shares including restrictions on the distribution of dividends and the repayment of capital:
Equity Shares
The Company has only one class of equity shares having a par value of ₹10 per share. Each holder of equity shares is entitled to one vote per share held. The share
holders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the
Company after distribution of all preferential amounts in proportion to their shareholding.
c. Details of shareholders holding more than 5% shares in the Company
As at March 31, 2023 As at March 31, 2022 % Change in

holding during
No. of Shares % Holding No. of Shares % Holding the year
Equity shares of ₹ 10 each fully paid
Name of the Shareholder
A. The Tata Power Company Ltd (Holding 30,07,64,646 51% 25,70,14,500 51% 0%
Company)
B. GRIDCO Ltd (Company having significant 28,89,69,954 49% 24,69,35,500 49% 0%
influence )
Total 58,97,34,600 100% 50,39,50,000 100% 0%
d. Aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash
The Company has allotted 141,969,954 equity shares (including 42,034,454 equity shares allotted during the year) till March 31, 2023 (March 31, 2022: 99,935,500)
as fully paid for considerations received in form of Distribution Assets, pursuant to shareholder's agreement and the Government of Odisha notifications. The value of
distribution assets have been determined by an independent valuer.
e. Shareholding of Promoters
Disclosure of shareholding of promoters as at March 31, 2023 as follows:
Nos of share Changes during Nos of share % of total % changes

Name of Promoter (As at April 01, the year (As at March 31, shares during the year
2022) 2023)
A. The Tata Power Company Ltd 25,70,14,500 4,37,50,146 30,07,64,646 51% 0%
B. GRIDCO Ltd 24,69,35,500 4,20,34,454 28,89,69,954 49% 0%
Total 50,39,50,000 8,57,84,600 58,97,34,600 100% 0%
Disclosure of shareholding of promoters as at March 31, 2022 as follows:
Nos of share Changes during Nos of share % of total % changes

Name of Promoter (As at April 01, the year (As at March 31, shares during the year
2021) 2022)
A. The Tata Power Company Ltd 15,30,00,000 10,40,14,500 25,70,14,500 51% 0%
B. GRIDCO Ltd 14,70,00,000 9,99,35,500 24,69,35,500 49% 0%
Total 30,00,00,000 20,39,50,000 50,39,50,000 100% 0%
14 Other Equity As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Retained Earning
Balance at beginning of year 36.19 6.74
Balance as at the end of the year 49.47 36.19
Nature and purpose of reserves:
Retained Earnings:
Retained Earnings are the profits of the Company earned till date net of appropriations. The amount can be distributed to the shareholders of the Company as per the
requirements of the Companies Act, 2013 (as amended).
CIN:U40109OR2020PLC032901
15 Borrowings As at March 31, As at March 31,

2023 2022
Non Current (At Amortised Cost) ₹ crore ₹ crore
Secured
Term Loan
(i) State Bank Of India Bank 219.87 160.19
(ii) Canara Bank 171.00 -
(iii) HDFC Bank - 50.00
(iv) Union Bank 1.00 -
(v) IDBI Bank 50.00 -
441.87 210.19
Less : Current maturities of long-term debt 22.60 29.54
Total non-current borrowings 419.27 180.65
15.01 The Company has not defaulted on any loans payable. The Company has utilized the loan for the sanctioned purpose.
15.02 Instalments for the term loan from State Bank of India (SBI) are payable on quarterly basis and repayment has started from December'21.
Instalments for the term loan from Canara Bank are payable on quarterly basis and repayment will start from September'24.
Instalments for the term loan from United Bank of India (UBI) are payable on quarterly basis and repayment will start from March'25.
Instalments for the term loan from IDBI Bank are payable on quarterly basis and repayment will start from Oct'23.
Term loan from HDFC Bank has been fully repaid during the current financial year.
15.03 The rate of interest for term loan from SBI is at 6 months MCLR + spread of 0.45% per annum (i.e. presently at 8.75% (March 31, 2022: 7.70%)). For Canara Bank, it is
at 1 year MCLR + 0% i.e. presently at 7.50% (March 31, 2022: Nil). For UBI, it is at 3 months' MCLR + 0% i.e. presently at 8.25% (March 31, 2022: Nil). For IDBI, it is
at 3 months' MCLR + 0% i.e. presently at 8.25% (March 31, 2022: Nil).
15.04 Term Loans from SBI, Canara Bank, UBI and IDBI are repayable over 58, 48, 48 and 18 equal quarterly instalments respectively.
15.05 Term loans from SBI, Canara Bank and UBI are secured against 1st pari passu charge on all the entire movable and immovable fixed assets of the Company, both
present and future; excluding assets transferred to the Company from CESU as per terms of the vesting order, 2nd pari passu charge on entire current assets, both
present and future excluding restricted assets as per vesting order.
Term loans from IDBI is secured against 3rd (residual) charge on all the entire movable fixed assets of the Company, both present and future; excluding assets
transferred to the Company from CESU as per terms of the vesting order and 3rd (residual) charge on entire current assets, both present and future excluding restricted
assets as per vesting order.
In addition - SBI also has charge on the debt service reserve account (DSRA).
15.06 Term Loans from SBI and Canara Bank contain certain debt covenants relating to limitation on indebtedness, Total Debt to EBIDTA, interest coverage ratio, FACR and
debt service coverage ratio. The Company has satisfied all the debt covenants prescribed in the terms of bank loan.
15.07 Current (At Amortised Cost)

Secured credit facilities
Working capital loan
(i) State Bank Of India Bank - 150.00
(ii) IDBI Bank - 28.00
Secured
Overdraft
(i) State Bank Of India Bank 123.72 117.10
(ii) IDBI Bank 91.89 115.75
Current maturities of term loan 22.60 29.54
Total short term borrowings 238.21 440.39
15.08 Secured credit facilities

The Company has availed secured working capital credit limits of ₹950 Crore from State Bank of India which includes fund based limit of ₹400 Crore at applicable tenor
MCLR plus 0.25% margin per annum (March 31, 2022: applicable tenor MCLR plus 0.75% margin per annum) and Non-fund based limit of ₹550 Crore at a commission
rate of 0.35% per annum (March 31, 2022: 0.50% per annum).
The Company has availed secured working capital credit limits of ₹175 Crore from IDBI Bank which includes fund based limit of ₹100 Crore at an interest rate for
applicable tenor MCLR per annum (March 31, 2022: applicable tenor MCLR per annum) and Non-fund based limit of ₹75 Crores at a commission rate of 0.30% per annum
(March 31, 2022: 0.30% per annum).
The Company has availed secured working credit limits of ₹100 Crore from Canara Bank which comprises of fund based limit of ₹100 Crore at an interest rate for
applicable tenor MCLR per annum plus spread of 0.05% p.a. (March 31, 2022: NA).
These facilities are secured against first pari passu charge on all the current assets (other than restricted as per vesting order, including consumer security deposits and
Government deposits received in the form of grant, subsidy, relief fund etc) both present and future with other lenders of the Company under Multiple Banking
Arrangement (MBA). Collateral security- Second pari passu charge on entire movable/immovable fixed assets of the Company, excluding assets transferred to the
Company from CESU as per terms of the vesting order, with other lenders of the Company under MBA.
The Company has availed secured overdraft limit of ₹336 Crores (₹92 Crores from IDBI bank and ₹244 Crores from State bank of India) at an interest rate of 6.21% p.a.
and 6.85% p.a. (March 31, 2022: 3.41% p.a. and 3.10% p.a.) respectively. These facilities are secured against fixed deposits of ₹355 Crores.
15.09 Current borrowings secured against current assets

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts. The Company
has not used any of the borrowings from banks apart for the purpose for which it was taken.
CIN:U40109OR2020PLC032901
16 Other Financial Liabilities As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Current (At amortised cost)
Security deposits from electricity consumers 1,013.34 876.40
Consumer contribution for work under progress 299.80 299.80
Capital creditors 147.99 175.58
Interest accrued but not due on security deposits from electricity consumers 56.76 25.93
Interest accrued but not due on borrowings 0.78 2.35
Retention money payable 18.86 27.34
Earnest money deposits 7.71 8.73
Security deposits from others 15.53 18.24
Other financial liabilities 11.47 11.96
Share application money to the extent refundable - 0.03
Total other financial liabilities (Current) 1,572.24 1,446.36
Note: The security deposits from electricity consumers carry interest at 6.75% p.a. (March 31, 2022: 4.25% p.a.) and is adjusted against power bill of the respective
customers as per tariff regulations. The amount is refundable on surrender of electricity connection by the consumer.
17 Capital Grant and Consumer Contribution towards Capital Assets As at March 31, As at March 31,
2023 2022
Non-Current (At cost less amortisation) ₹ crore ₹ crore
Consumer contribution towards cost of capital asset 1,582.64 1,435.29

Deferred Government Grants towards cost of capital asset 292.38 20.67
Total consumer contribution towards capital asset and capital grant 1,875.02 1,455.96
Movement in Consumer Contribution towards Capital Asset

Opening Balance 1,435.29 1,508.76
Add: Additions during the year 226.56 -
Less: Transfer to Statement of Profit & Loss (Refer note 22) (79.21) (73.47)
Closing Balance 1,582.64 1,435.29
Note: Consumer Contribution towards capital cost is amortized to the Statement of Profit and Loss to match with depreciation charged on assets created out of such
contribution.
Movement in Deferred Government Grants towards Cost of Capital Asset

Opening Balance 20.67 -
Add: Additions during the year 280.97 21.49
Less: Transfer to Statement of Profit & Loss (Refer note 22) (9.26) (0.82)
Closing Balance 292.38 20.67
18 Deferred Tax Liabilities (Net) As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Deferred tax liability (Refer note 28) 17.29 12.43
Net deferred tax liabilities 17.29 12.43
19 Other Liabilities As at March 31, As at March 31,

2023 2022
Non-Current (At amortised cost) ₹ crore ₹ crore

Subsidies towards cost of capital Assets 488.73 682.37
Consumer contribution for work under progress 151.62 179.16
PFC contribution for R-APDRP 35.73 35.73
Total other liabilities (Non-current) 676.08 897.26
Note: As part of business combination, certain grants/ subsidies have been transferred to the Company which can be used only in accordance with the terms and
conditions of the concerned scheme. Pending clarity on the terms and conditions of the Scheme, the Company has not used and continues to reflect grant/ subsidy as
liability.
Current (At amortised cost)

Advance from customers 118.49 86.07
Statutory liabilities 114.36 106.17
Other current liabilities 14.84 2.57
Total other liabilities (Current) 247.69 194.81
CIN:U40109OR2020PLC032901
20 Trade Payables As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Total outstanding dues of micro enterprises and small enterprises 27.58 32.85
Total outstanding dues of trade payables other than micro enterprises and small enterprises 746.98 767.56
774.56 800.41
20.01 Post acquisition the company has started process of identifying micro and small enterprises separately. Micro and small enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 have been determined based on the information available with the Company and the required disclosures are given below:

Particulars
2023 2022
₹ crore ₹ crore
(a) Principal amount remaining unpaid 27.58 32.85
(b) Interest due thereon
(c) The amount of interest paid in terms of section 16 of the Micro, Small and Medium - -
Enterprises Development Act, 2006 (27 of 2006), along with the amounts of the
payment made to the supplier beyond the appointed day during each accounting year.
(d) The amount of interest due and payable for the period of delay in making payment - -
(which has been paid but beyond the appointed day during the year) but without adding
the interest specified under the Micro, Small and Medium Enterprises Development Act,
2006
(e) The amount of interest accrued and remaining unpaid - -
(f) The amount of further interest due and payable even in the succeeding years, until such - -
date when the interest dues as above are actually paid to the small enterprise
Total 27.58 32.85
20.02 Trade payables ageing schedule *

As on March 31, 2023 ₹ crore
Outstanding for following periods from due date of payment
Particular Not due Less than 1 More than 3 Total
1-2 years 2-3 years
Year years
Undisputed dues
(a) MSME 27.58 - - - - 27.58
(b) Others 421.71 201.33 25.57 0.42 97.95 746.98
Disputed dues
(a) MSME - - - - - -
(b) Others - - - - - -
Total 449.29 201.33 25.57 0.42 97.95 774.56
As on March 31, 2022 ₹ crore

Outstanding for following periods from due date of payment
Particular Not due Less than 1 More than 3 Total
1-2 years 2-3 years
Year years
Undisputed dues
(a) MSME 16.36 16.49 - - - 32.85
(b) Others 214.35 424.13 129.08 - - 767.56
Disputed dues
(a) MSME - - - - - -
(b) Others - - - - - -
Total 230.71 440.62 129.08 - - 800.41
* Where due date of payment is not available, date of transaction has been considered.
CIN:U40109OR2020PLC032901
21 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 the Company will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of
the time value of money is material). The impact of unwinding present value determine is recognised in the statement of profit and loss.
Present obligations arising under onerous contracts are recognised and measured as provisions with charge to the statement of profit and loss. An onerous contract is
considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations will exceed the economic benefits expected to be
received from the contract.
Defined contribution plans

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the benefit. If the
contribution payable to the scheme for service received on or before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received on or before the
balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
Defined benefits plans

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Remeasurements, comprising of actuarial gains and
losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in the statement of profit and loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined
benefit obligation as an expense in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and
- Net interest expense or income.
Other current and other non-current employee benefits
A liability is recognised for current benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period in which the related service
is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Liabilities recognised in respect of current employee benefits
are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
The cost of providing other long-term employee benefits, including earned leave, sick leave and other benefits, is determined using the projected unit credit method. The
related expenses including remeasurement gains and losses are recognised in the statement of profit and loss.
The Company operates a scheme for Compensated absences wherein the employee is entitled to avail leave benefits as per the policy of the Company. The leave benefits
are linked to the salary of the employee and the employee is entitled to either avail paid leave or encash unutilised leave either during employment or on retirement. The
liability for compensated absences is provided on the basis of an actuarial valuation done by an independent actuary at the reporting period end. The Company treats
accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Remeasurements/ Actuarial gains
and losses are recognised immediately in the statement of profit and loss.
Pre acquisition liabilities of employees transferred from erstwhile CESU:

The terms of the Vesting Order as modified by the Carve Out Order provide that for entire liabilities toward pension, gratuity and compensated absences of employees
retired before the acquisition date and acquisition date liabilities of continuing employees on the acquisition date, the Company’s responsibility is limited only to remitting
fixed amount requested by the respective Trusts and the same will be allowed to be recovered from consumers for disbursal to the beneficiaries covered under the
Trusts. The Company has recognised amount payable to the Trusts for the current year for onward payment of the said liabilities are charged as an expense as they fall
due.
Post-acquisition date liabilities of employees who were in service on the acquisition date are accounted for either as defined benefit plan or other long term employee
benefit basis nature of the benefit.
21.02 Defined contribution plans

Erstwhile CESU Employees
i) Provident Fund Plan
The Company's contributions toward provident fund of the eligible employees is deposited under the Employees Provident Fund and Miscellaneous Provisions Act,
1952. The provident fund is operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified
percentage of payroll cost to the retirement benefit scheme to fund the benefits. The Company does not have any further obligation under the plan.
Other than Erstwhile CESU Employees

i) Provident Fund Plan
The Company makes contributions toward provident fund of qualifying employees which is a defined contribution plan. The Company's contribution to the
Employees Provident Fund is deposited under the Employees Provident Fund and Miscellaneous Provisions Act,1952 which is recognized by the Income Tax
Authorities and operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of
payroll cost to the retirement benefit scheme to fund the benefits. The Company does not have any further obligation under the plan.
ii) Employee State Insurance:

The Company makes Employee State Insurance ('ESI') scheme contributions to defined contribution plan for eligible employees. Under the scheme, the Company
is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified are paid to the Employee State Insurance
Corporation ('ESIC') set under the ESI Act 1948. The Company is generally liable for annual contributions. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability. If the contribution
already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-
payment will lead to a reduction in future payment or a cash refund.
The Company has recognized a total of ₹27.07 crores (March 31, 2022: ₹29.14 crores) as contribution towards all the defined contribution plans in the Statement of
Profit or Loss.
CIN:U40109OR2020PLC032901
21.03 Defined benefit plans

Erstwhile CESU Employees
i) Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is primarily governed by the Odisha Civil Services (Pension) Rules 1992. Employees who are in
continuous service for a period of five years are eligible for gratuity. The level of benefits provided depends on the member's length of service and salary at the
retirement date. The gratuity plan is partly funded plan. The fund has the form of a trust and is governed by Trustees appointed by the Company. The Trustees
are responsible for the administration of the plan assets and for the definition of the investment strategy in accordance with the regulations. The funds are
deployed in recognised insurer managed funds in India.
ii) Pension
The Company has a defined benefit pension plan. The pension plan is primarily governed by the Odisha Civil Services (Pension) Rules 1992. Employees who had
joined CESU on or before 31st December, 2004 are eligible for pension. The level of benefits provided depends on the member's length of service and salary at
the retirement date. The pension plan is partly funded plan. The fund has the form of a trust and is governed by Trustees appointed by the Company. The
Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy in accordance with the regulations. The funds
are deployed in recognised insurer managed funds in India.
The terms of the vesting order as modified by the Carve Out order provide that for entire liabilities toward pension, gratuity and leave encashment of employees retried
before the acquisition date and acquisition date liabilities of continuing employees on the acquisition date, the Company’s responsibility is limited only to remitting fixed
amount requested by the respective Trusts and the same will be allowed to be recovered from consumers for disbursal to the beneficiaries covered under the Trusts.
Based on specific clarifications provided in the carve out and the vesting order, the Company has recognised amount payable to the Trusts for the current year for
onward payment of the said liabilities in the statement of profit and loss as they fall due.
Post-acquisition date liabilities of employees who were in service on the acquisition date are accounted for either as defined benefit plan or other long term employee
benefit basis nature of the benefit.
Refer note 21.07 (c) for further details.
Other than Erstwhile CESU Employees (Unfunded)

i) Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972. The benefit
vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. The gratuity
benefits payable to the employees are based on the employee’s service and last drawn salary at the time of leaving. The employees do not contribute towards this
plan and the full cost of providing these benefits are met by the Company. In case of death while in service, the gratuity is payable irrespective of vesting.
ii) Pension
The Company has a defined benefit pension plan granting a pre-determined sum as pension after completing vesting period.
iii) Post Employment Medical Benefit

The Company provides certain post employment health care benefits to superannuated employees at some of its locations. In terms of the plan, the retired
employees can avail free medical check-up and medicines at companies' facilities. The benefit is treated as defined benefit pan.
iv) Ex-Gratia Death Benefits

The Company has a defined benefit plan granting ex-gratia payment in case of death during service. The benefit consists of a pre-determined lump sum amount
along with a sum determined based on last drawn basic salary per month and the length of service.
v) Retirement Gift
The Company has a defined benefit plan granting a pre-determined sum as retirement gift on superannuation of an employee.
21.04 Provision for Employee Benefits

Particular 2023 2022
₹ crore ₹ crore
Non-Current
Gratuity (Refer Note 21.07 (a),(b), (c) & (d)) 83.28 64.36
Pension Fund (Refer Note 21.07 (a),(b), (c) & (d)) 192.17 137.37
Leave Encashment 39.56 27.05
Post Retirement Medical Benefit (PRMB) (Refer Note 21.07 (a) & (b)) 1.04 0.83
Other Defined Benefit Plan (Refer Note 21.07 (a) & (b)) 3.73 3.19
Other Employee Benefits 20.16 17.00
339.94 249.80
Current
Gratuity (Refer Note 21.07 (a),(b), (c) & (d)) 1.23 1.40
Pension Fund (Refer Note 21.07 (a),(b), (c) & (d)) - 3.53
Leave Encashment 2.15 1.43
Post Retirement Medical Benefit (PRMB) (Refer Note 21.07 (a) & (b)) 0.00 0.00
Other Defined Benefit Plan (Refer Note 21.07 (a) & (b)) 0.22 0.21
Other Employee Benefits 2.80 1.65
6.40 8.22
CIN:U40109OR2020PLC032901
21.05 Pre-acquisition liabilities of employees transferred from erstwhile CESU:

The Company has acquired the electricity distribution business of CESU with effect from June 1, 2020. As a part of Business transfer, all the employees of the undertaking
were transferred to the Company effective June 1, 2020 on a continuity of service conditions. Previously retired employees as well as continuing employees of CESU
transferred to the Company are entitled to pension and/or gratuity plan which are managed by separate trusts who are responsible for the disbursement of pension and
gratuity to the beneficiaries. Liabilities of these trusts determined on an actuarial basis exceed assets available with them. Based on terms of the Vesting Order as
modified by the Carve Out Order, these liabilities are treated in two parts.
Liabilities for past employees and acquisition date liabilities of existing employees
The Vesting Order as modified by the Carve Out order states that for entire liabilities toward pension, gratuity and leave encashment of past employees and acquisition
date liabilities of existing employees, the Company’s responsibility is limited only to remitting fixed amount requested by the respective Trusts and recovered by it from
consumers as a part of ARR for disbursal to the beneficiaries covered under the Trusts. Given below are details of Trusts’ total accrued liabilities in respect of these of
obligations not transferred to the Company at this stage.
March 31st, 2023 ₹ crore

Particular Pension Gratuity Leave Total
Total liabilities of past employees 1,488.37 68.18 149.66 1,706.21
Acquisition date liabilities of existing employees 536.01 66.79 35.14 637.94
2,024.38 134.97 184.80 2,344.15

Total liabilities of past employees 1,457.23 80.12 159.29 1,696.64
Acquisition date liabilities of existing employees 502.28 49.21 23.02 574.51
Total 1,959.51 129.33 182.31 2,271.15
As per the Vesting and the Carve Out Order, below amounts paid / payable in respect of the current year have been recognised as expense in the statement of profit and
loss:
Amount paid/payable toward liability of past employees 167.66 11.32 9.64 188.62
Amount paid/payable toward acquisition date liabilities of existing 6.84 6.39 1.39 14.62
employees
Total 174.50 17.71 11.03 203.24

Amount paid/payable toward liability of past employees 141.28 22.04 11.03 174.35
Amount paid/payable toward acquisition date liabilities of existing 37.88 - - 37.88
employees
Total 179.16 22.04 11.03 212.23
Post acquisition date liabilities of existing employees :

The Company has assessed that post transfer of business, these plans as defined benefit plans and has accordingly recognized incremental liability in respect of existing
employees on the acquisition date in the financial statements. Given below are necessary disclosures in respect of these liabilities, along with other defined benefit plans
of the Company.
21.06 Risk associated with the plan provisions are actuarial risk. These risk are interest rate risk, demographic risk and salary escalation risk.
Interest risk
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their
employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary Escalation risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan
participants will increase the plan’s liability.
21.07 The following tables set out the funded status of defined benefit plans and amount recognized in the Company's financial statements as at March 31st, 2023. The
valuation has been carried out using the " Project Unit Credit Method " as per Ind AS 19 " Employee Benefits" to determine the present value of defined benefit
obligations and related current service cost.
a. Present Value of obligations ₹ crore

As at March 31, 2023
Particulars Other Defined

Gratuity Gratuity Pension
Benefit (Funded
(Unfunded) (Funded) (Funded)
& Unfunded)
Present Value of obligations as at April 01, 2021 as per Actuarial Valuation 12.19 1.73 149.41 464.27
a. (including obligation not transferred to the Company) (Refer Note 21.04)
b.Interest Cost 0.80 0.11 9.21 30.46

c.Current Service Cost 1.31 0.40 7.85 14.39
d.Past Service Cost - 6.16 - -
e.Acquisition (Credit)/Cost 0.58 - - -
f.Actuarial loss / (gain)-Demographic - - - -
g.Actuarial loss / (gain)-assumption changes (0.76) (0.11) (6.65) (28.23)
h.Actuarial loss / (gain)-Experience 2.42 0.31 33.58 109.79
i.Effect of Business Combinations - - - -
j.Benefits Paid (0.01) - (24.17) (20.61)
Present Value of obligations as at March 31, 2022 as per Actuarial 16.53 8.60 169.23 570.07
K. Valuation (including obligation not transferred to the Company) (Refer
Note 21.04)
l. Interest Cost 1.17 0.64 8.93 39.48
m. Current Service Cost 1.76 0.91 11.27 9.55
o. Past Service Cost - 0.02 - -
p. Acquisition (Credit)/Cost (1.68) - - -
q. Actuarial loss / (gain)-Demographic - - - -
r. Actuarial loss / (gain)-assumption changes (0.33) (0.16) (3.44) (14.28)
s. Actuarial loss / (gain)-Experience 0.33 (0.08) 8.54 21.92
t. Effect of Business Combinations - - - -
u. Benefits Paid (0.06) (0.98) (21.01) (28.08)
Present value of obligation at the end of the year (including obligation not 17.72 8.95 173.52 598.66
v. transferred to the Company) (Refer Note 21.04)
CIN:U40109OR2020PLC032901
b. Fair value of plan assets ₹ crore

Other Defined
Particulars Gratuity Gratuity Pension
Benefit (Funded
(Unfunded) (Funded) (Funded)
& Unfunded)
Fair value of plan asset as at April 01, 2021 (including plan assets not - - 40.45 64.62
a.
transferred to the Company)
b. Estimated return on plan asset - 4.37 2.59 4.27
c. Employer contribution - - 20.51 18.74
d. Benefits Paid - - (24.17) (20.61)
e. Excess of actual over estimated return - - 0.52 0.70
f. Others - - - -
Fair value of plan asset as at March 31, 2022 (including plan assets not - 4.37 39.90 67.72
g.
h. Estimated return on plan asset - 0.28 2.74 4.68
i. Employer contribution - - 18.33 24.39
j. Benefits Paid - (0.98) (21.01) (28.08)
k. Excess of actual over estimated return - 0.29 (1.41) (6.11)
l. Others - - - -
Fair value of plan asset at the end of the year (including plan assets not - 3.96 38.55 62.60
m.
c. Amount to be recognized in the balance sheet

₹ crore
Gratuity Other Defined Gratuity Pension
Particulars (Unfunded) Benefit (Funded (Funded) (Funded)
& Unfunded)
1. Present Value of obligations as at the end of the year as per Actuarial Valuation 17.72 8.95 173.52 598.66
(including obligation not transferred to the Company)
2. Fair value of Assets at the end of the year (including plan assets not transferred to - 3.96 38.55 62.60
the Company)
3. Net Liability 17.72 4.99 134.97 536.06
4. Liability not transferred to the Company as per vesting order (Refer Note 21.03 - - (68.18) (343.89)
above)
5. Net Liability recognized in balance sheet 17.72 4.99 66.79 192.17
₹ crore
& Unfunded)
1. Present Value of obligations as at the end of the year as per Actuarial Valuation 16.53 8.60 169.23 570.07
(including obligation not transferred to the Company)
2. Fair value of Assets at the end of the year (including plan assets not transferred to - 4.37 39.90 67.72
the Company)
3. Net Liability 16.53 4.23 129.33 502.35
4. Liability not transferred to the Company as per vesting order (Refer Note 21.03 - - (80.12) (361.44)
above)
5. Net Liability recognized in balance sheet 16.53 4.23 49.21 140.91
d. Expenses Recognised in the Statement of Profit & Loss

₹ crore
For the year ended March 31, 2023
& Unfunded)
1. Current Service Cost 1.76 0.91 11.27 9.55

2. Past Service Cost - 0.02 - -
3. Interest Cost 1.17 0.64 8.93 39.48
4. Expected return on Plan Assets - (0.57) (2.74) (4.68)
5. Others - - 11.32 167.66
6. Expenses recognized in statement of Profit & Loss 2.93 1.00 28.78 212.01
₹ crore
& Unfunded)
1. Current Service Cost 1.31 0.40 7.85 14.39

2. Past Service Cost - 6.16 - -
3. Interest Cost 0.80 0.11 9.21 30.46
4. Expected return on Plan Assets - (4.37) (2.59) (4.27)
5. Others - - 22.04 141.28
6. Expenses recognized in statement of Profit & Loss 2.11 2.30 36.51 181.86
CIN:U40109OR2020PLC032901
e. Amount recognised in other comprehensive income (remeasurements)
₹ crore
& Unfunded)
Actuarial (gains)/losses arising from:

- changes in demographic assumptions - - - -
- return on plan assets (greater)/less than discount rate - - 1.41 6.11
- changes in financial assumptions (0.33) (0.16) (3.44) (14.28)
- experience adjustments 0.33 (0.08) 8.54 21.92
Total (0.00) (0.24) 6.51 13.75
₹ crore
& Unfunded)
Actuarial (gains)/losses arising from:

- changes in demographic assumptions - - - -
- return on plan assets (greater)/less than discount rate - - (0.52) (0.70)
- changes in financial assumptions (0.76) (0.11) (6.65) (28.23)
- experience adjustments 2.42 0.31 33.58 109.79
Total 1.66 0.20 26.41 80.86
f. Principal assumptions
As at March 31, 2023 As at March 31, 2022
Particulars
Gratuity Gratuity Gratuity Gratuity
(Unfunded) (Funded) (Unfunded) (Funded)
1. Discount rate 7.30% 7.30% 7.10% 7.10%
2. Salary escalation
-Management 7.00% 6.00% 7.00% 6.00%
-Non Management 7.00% 6.00% 7.00% 6.00%
Indian Assured Indian Assured Indian Assured Indian Assured
3. Mortality rate Lives Mortality Lives Mortality Lives Mortality Lives Mortality
(2006-08) Ult (2012-14) Ult (2006-08) Ult (2012-14) Ult
g. Category wise plan assets

As at March 31, 2023 As at March 31, 2022
Particulars
Gratuity Pension Gratuity Pension
(Funded) (Funded) (Funded) (Funded)
Government of India Securities (Central and State) 49.48% 50.14% 50.69% 49.31%
High quality corporate bonds (including Public Sector Bonds) 43.43% 31.66% 46.48% 33.72%
Equity shares of listed companies 3.48% 4.29% 2.82% 2.79%
Cash (including Special Deposits) 3.60% 13.91% 0.00% 14.19%
Total 100.00% 100.00% 100.00% 100.00%
h. Sensitivity analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have
been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.
₹ crore
Gratuity Gratuity Pension Other Defined
Increase/ (decrease) in defined benefit liability (Unfunded) (Funded) (Funded) Benefit (Funded
& Unfunded)
Impact on discount rate for 0.5% decrease in defined benefit 0.84 8.83 36.76 0.42
obligation
Impact on discount rate for 0.5% increase in defined benefit (0.78) (8.14) (33.38) (0.38)
obligation
Impact on salary escalation rate for 0.5% decrease in defined (0.79) (6.61) (9.67) (0.18)
benefit obligation
Impact on salary escalation rate for 0.5% increase in defined 0.84 6.82 10.07 0.21
benefit obligation
₹ crore
Increase/ (decrease) in defined benefit liability (Unfunded) (Funded) (Funded) Benefit (Funded
& Unfunded)
Impact on discount rate for 0.5% decrease in defined benefit 0.76 8.61 36.61 0.38
obligation
Impact on discount rate for 0.5% increase in defined benefit (0.70) (7.92) (33.13) (0.34)
obligation
Impact on salary escalation rate for 0.5% decrease in defined (0.71) (6.65) (10.82) (0.15)
benefit obligation
Impact on salary escalation rate for 0.5% increase in defined 0.75 6.83 11.28 0.17
benefit obligation
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in
assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit
method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from previous years.
CIN:U40109OR2020PLC032901
i. Effect of Plan on Company's future cash flows*

₹ crore
Expected Future cash flows For the year ended March 31, 2023
Particulars (Unfunded) (Funded) (Funded) Benefit (Funded
& Unfunded)
Year-1 1.27 12.58 29.45 1.13

Year-2 1.50 15.12 33.16 1.11
Year-3 0.92 14.93 30.76 1.08
Year-4 1.23 13.87 29.97 1.08
Year-5 2.47 15.05 31.51 1.07
Year 6- 10 13.29 62.52 122.57 5.86
₹ crore
Expected Future cash flows For the year ended March 31, 2022
Particulars (Unfunded) (Funded) (Funded) Benefit (Funded
& Unfunded)
Year-1 0.52 12.42 23.91 1.14

Year-2 1.20 14.86 27.80 1.13
Year-3 1.49 15.33 28.40 1.10
Year-4 1.25 14.86 25.60 1.07
Year-5 1.48 13.98 24.94 1.06
Year 6- 10 12.88 62.79 104.82 5.48
* including payment for liabilities not transferred to the Company (refer note 21.05)
CIN:U40109OR2020PLC032901
22 Revenue Recognition
Accounting Policy
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of
third parties.
22.01 Sale of Power

Revenue from the supply of power is recognised net of any trade discounts, cash rebates, etc. when the power is supplied and units of
electricity are delivered as it best depicts the value to the customer and satisfaction of performance obligation. Revenue from such
contracts is recognized over time for each unit of electricity delivered at the pre-determined rate.
Revenue from power supply is accounted for on the basis of billings to consumers and includes unbilled revenues accrued up to the end
of the reporting period. Revenue from power supply is recognised net of the applicable taxes and other amounts which the Company
collects from the customer on behalf of the government/state authorities.
The Company, as per the prevalent Regulations (referred as "Tariff Regulations") for distribution business, is required to recover its
Annual Revenue Requirement (ARR) comprising of expenditure on account of power purchase costs, operations and maintenance
expenses, financing cost and taxation, as per the said Tariff Regulations and an assured return on equity. As per the said Tariff
Regulations, the Company determines the ARR and any excess/shortfall in recovery of ARR during the year is accounted for in
"Regulatory Deferral Account Balance".
Revenue in respect of invoice raised for dishonest abstraction of power is recognized when the certainty of its collection is probable i.e.
generally as and when recovered.
22.02 Contribution for Capital Works

Consumer’s contribution towards cost of capital assets is treated as capital receipt and credited in other liabilities under the head
'consumer's deposit for work' until transferred to a separate account on commissioning of the assets and installation of connection
respectively. An amount equivalent to the depreciation charge for the year on such assets is appropriated from this account as income to
the Statement of Profit and Loss.
22.03 Incentive on Past Arrears Collection
As per terms of OERC vesting order, the Company is eligible for incentive on past area collections pertaining to period prior to March 31,
2020. Income in respect of incentive is recognized as percentage of actual realization of past arrears.
22.04 Revenue from Operations

March 31, 2023 March 31, 2022
₹ crore ₹ crore
Revenue from Operations
Gross revenue as per tariff 4,687.34 3,982.60
Less: Cash discount 65.20 36.05
Revenue from Contract with Customers 4,622.14 3,946.55
Other Operating Revenue

Amortisation of consumer contributions & grant 88.47 74.29
Recovery of meter Rent 44.13 51.78
Incentive on past arrear collection 8.79 11.08
Miscellaneous Revenue 65.93 67.45
207.32 204.60
Revenue from operations 4,829.46 4,151.15
22.05 Disaggregation of revenue

The Company deals in a single type of product i.e. power which is sold directly to consumers, consideration in respect of which is based
on energy supplied. Thus further disclosure in respect of disaggregation of revenue is not required.
CIN:U40109OR2020PLC032901
22.06 Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:

Particulars 2023 2022
₹ crore ₹ crore
Contract Liabilities
Advance from consumers 118.49 86.07
Total contract liabilities 118.49 86.07
Receivables
Trade receivables 623.88 670.02
Unbilled revenue depending only on passage of time 350.45 284.22
Less: Allowances for doubtful debts 203.97 67.90
Net receivables 770.36 886.34
Contract Assets
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract assets are
transferred to receivables when the rights become unconditional.
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an
amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to
the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognized as revenue when the Company performs under the contract ,i.e., normally within twelve months from the reporting date.
22.07 Transaction Price - Remaining Performance Obligation

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the
end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the
practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for
contracts as the revenue recognized corresponds directly with the value to the customer of the entity's performance completed to date.
Advance from customer will be recognises as revenue within 12 months from the reporting date.
23 Other Income
Accounting Policy:
Interest Income
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the
amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset's net carrying amount on initial recognition.
Delayed Payment Charges (DPC)

DPC is charged at the rate prescribed by the Tariff Regulations on the outstanding balance. Revenue in respect of DPC and interest on
DPC leviable as per the Tariff Regulations are recognized on actual realisation or accrued based on an assessment of certainty of
realization supported by an acknowledgement from customers.

March 31, 2023 March 31, 2022
₹ crore ₹ crore
Interest Income on
Bank Deposits 48.57 26.28
Other non - operating income
Delayed payment charges 14.16 11.63
Other income 11.32 13.35
74.05 51.26
24 Cost of Power Purchased and Transmission Charges

March 31, 2023 March 31, 2022
₹ crore ₹ crore
Power purchased 2,970.40 2,494.46
Transmission charges 278.89 248.51
Less: Rebate 34.71 27.31
3,214.58 2,715.66
CIN:U40109OR2020PLC032901
25 Employee Benefits Expense (Net)

March 31, 2023 March 31, 2022
₹ crore ₹ crore
Salaries, wages and bonus 459.76 458.96
Contribution to provident and other funds (Refer Note No.21) 300.72 290.15
Staff welfare expenses 24.05 18.65
Gross employee benefit expenses 784.53 767.76
Less: Employee cost capitalization 23.94 22.34
Net employee benefit expenses 760.59 745.42
26 Finance Costs
March 31, 2023 March 31, 2022
₹ crore ₹ crore
Interest on loans carried at amortised cost - banks and financial institutions 47.38 55.62
Interest on consumer security deposits carried at amortised cost 61.67 31.64
Other borrowing costs 1.92 0.99
Gross Finance Cost 110.97 88.25
Less: Interest cost capitalised 4.14 2.86
Net Finance Cost 106.83 85.39
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs
are recognised in Statement of Profit and Loss in the period in which they are incurred.
27 Other Expenses
March 31, 2023 March 31, 2022
₹ crore ₹ crore
Repairs and maintenance to buildings and civil Works 4.82 2.31
Repairs and maintenance to plant and machinery 209.90 187.13
Repairs and maintenance to furniture, vehicles, etc 20.08 13.81
Loss on retirement of fixed assets 5.75 -
Rental of land, buildings, plant and equipment, etc 4.28 4.79
Electricity consumption expenses 4.33 3.65
Telephone expenses 2.12 2.06
Foods and conveyance 1.02 0.46
Cost of service expenses 56.39 51.82
Bank & other charges 6.90 3.42
Office expenses 5.05 7.55
Travelling expenses 6.22 5.47
Insurance premium 4.06 3.99
Legal and professional charges 12.85 7.94
Allowance for doubtful debts and advances (Net) 136.07 39.78
Software expenses - 0.68
Other expenses 15.18 9.20
Advertisement & marketing expenses 2.25 1.19
Corporate social responsibility expenses (refer note no. 27.02) 1.17 0.75
Metering and billing expenses 82.84 70.52
Printing and stationary 2.09 1.26
Miscellaneous expenses 0.19 0.02
583.56 417.80
CIN:U40109OR2020PLC032901
27.01 Auditors Remuneration

Legal and professional charges include auditor’s remuneration as follows:
Particulars
March 31, 2023 March 31, 2022
₹ crore ₹ crore
Audit fee (including Goods and Services Tax) 0.70 0.66
Tax audit fee 0.02 0.02
In other Capacity:
Other matters 0.01 0.07
Reimbursement of expenses 0.05 0.02
0.78 0.77
27.02 Corporate Social Responsibility (CSR) Expenses

Particulars
March 31, 2023 March 31, 2022
₹ crore ₹ crore
(a) Gross amount required to be spent by the Company during the year 1.17 0.74
(b) Amount approved by the Board to be spent during the year 1.17 0.74
(c) Amount spent during the year ending on March 31, 2023: In Cash Outstanding Total
i) Construction/acquisition of any asset - - -
ii) On purposes other than (i) above 1.17 - 1.17
Amount spent during the year ending on March 31, 2022: In Cash Outstanding Total
i) Construction/acquisition of any asset - - -
ii) On purposes other than (i) above 0.75 - 0.75
(d) Details related to spent obligations:

Particular
March 31, 2023 March 31, 2022
₹ crore ₹ crore
a. Employability and Employment (Skilling for Livelihoods) 0.10 0.55
b. Education (Including Financial and Digital Literacy) 0.14 0.04
c. Essential Services (Health & Environment) 0.41 0.15
d. Entrepreneurship 0.52 -
e. Volunteering Programs - 0.01
Total 1.17 0.75
28 Tax expenses
Accounting policy
Income tax expense represents the sum of the tax currently payable and deferred tax.
28.01 Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax related to items recognised outside Statement of Profit and Loss are recognised either in other comprehensive
income or in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions where appropriate.
CIN:U40109OR2020PLC032901
28.02 Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financials statements
and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax
assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit on the date of initial recognition.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognised deferred tax assets
are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income
or in equity).
Deferred tax assets and liabilities are offset when they relate to income taxes levied else vied by the same taxation authority and the
relevant entity intends to settle its current tax assets and liabilities on a net basis.
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against
which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

March 31, 2023 March 31, 2022
₹ crore ₹ crore
Deferred Tax
In respect of the current year 4.86 10.16
4.86 10.16
Total income tax expense recognised in the current year 4.86 10.16
28.03 Reconciliation of tax expense and the accounting profit multiplied by India's tax rate :
Profit from continuing operations before income tax expense 18.14 39.61
Tax at the Indian tax rate of 25.17% 4.57 9.97
Computed expected tax expenses

CSR Expense 0.29 0.19
4.86 10.16
Income tax expense
The Company has made provision for income tax at the rate of 25.17% (Tax rate 22% Plus Surcharge 10% Plus cess 4% on tax &
surcharge) in accordance with normal provisions of Income Tax Act, 1961 for the year ended March 31, 2023.
28.04 Deferred Tax Liability

Deferred tax asset/(liability) on account of : As at March 31, As at March 31,
2023 2022
Property plant and equipment (113.92) (67.51)
Provision for doubtful debts 51.34 17.09
Others (3.13) (3.13)
Business losses and unabsorbed depreciation 48.42 41.12
Total (17.29) (12.43)
CIN:U40109OR2020PLC032901
Year Ended March Year Ended March

29 Other Comprehensive Income/(Expenses)
31, 2023 31, 2022
₹ crore ₹ crore
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans (20.03) (109.29)
Net Movement in regulatory deferral balances 20.03 109.29
Total other comprehensive income/(expenses) - -
Note:
Post-acquisition of business, the Company has decided to treat pension and gratuity benefits payable to erstwhile CESU employees as defined
benefit plan under Ind AS 19 "Employee Benefits". Consequently, the cost and liability of providing such benefits is determined using the projected
unit credit method (PUCM). Among other matters, the application of PUCM results in recognition of remeasurement gain/ loss, comprising items
such as actuarial gains and losses and effect of the asset ceiling, in the Other Comprehensive Income (OCI). The amount of remeasurement gain/
loss fluctuates period on period based on changes in actuarial assumptions including discount rate and mortality rate.
To ensure offsetting impact in the OCI and the Balance Sheet, the Company recognises equivalent amount as Regulatory Deferral Account –
Income/ expense in the OCI. The amount of Regulatory Deferral Account – Income/ expense recognised in the OCI in this manner fluctuates in
line with and in contrary to the Remeasurement gain/ loss. Based on the Vesting Order, the Company will be allowed to include and recover this
amount as revenue from customers only when the amount is paid to the trust for onward payment to employees.
30 Regulatory Deferral Account

The Company determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect of its regulated operations in
accordance with the provisions of Ind AS 114 - 'Regulatory Deferral Accounts' read with the Guidance Note on Rate Regulated Activities issued by
the Institute of Chartered Accountants of India (ICAI) and based on the principles laid down under the relevant Tariff Regulations/Tariff Orders
notified by the Electricity Regulator and the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate
adjustments in respect of such revenue gaps are made in the regulatory deferral account of the respective year for the amounts which are
reasonably determinable and no significant uncertainty exists in such determination.
These adjustments/accruals representing revenue gaps are carried forward as Regulatory deferral accounts debit/credit balances (Regulatory
Assets/Regulatory Liabilities) as the case may be in the financial statements, which would be recovered/refunded through future billing based on
future tariff determination by the regulator in accordance with the electricity regulations.
The Company presents separate line items in the balance sheet for:
i. the total of all regulatory deferral account debit balances and related deferred tax balances; and
ii. the total of all regulatory deferral account credit balances and related deferred tax balances.
A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory deferral account.
30.02 Description of Rate Regulated Activities and related balances/ movement
(i) The business of electricity distribution is a Rate Regulated activity wherein the Odisha Electricity Regulatory Commission (the ‘OERC’ or the
‘regulator’) determines Tariff to be charged from consumers based on prevailing regulations in place.
The Odisha Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations,
2014/ 2022, are applicable to the company. These regulations require the OERC to determine tariff in a manner wherein the Company can recover
its fixed and variable costs including assured rate of return on approved equity base, from its consumers. The Company determines the Revenue,
Regulatory Assets and Liabilities as per the terms and conditions specified in these Regulations and Vesting Order.
As per the vesting order, the AT&C loss trajectory which can be passed on to customers is fixed for the first ten years. Any gain/ loss arising due
to lower/ higher AT&C losses vis-a-vis fixed trajectory belongs to the Company and is not passed on to the customer. The Company determines
the amount of such gain/ loss based on basis power purchase cost only and treats all other expenses including operation and maintenance
expenses, employee cost, finance cost and tax expense as per prevailing regulations and tariff orders while determining 'Regulatory Deferral
Account Balance.'
(ii) In terms of the applicable regulations, the Company submits its Annual Revenue Requirements (ARR) before beginning of the year for approval of
the OERC. After close of financial statements for a year, the actual income and expense incurred by the Company are reviewed and approved by
the OERC in the form of True-up Order.
(iii) As per clause 45, 46 and 54 of the vesting order and further issuance of carve out order, any past liabilities and payments towards the same shall
be treated as Additional Services Liability (ASL) to be recoverable from future tariff or through mechanism as devised by the OERC. Accordingly,
the Company has filed a petition with the OERC on dated 9th November, 2021 for amounting to ₹ 391 crore and the amount was revised to ₹ 387
crore on the basis of carve-out audit carried out by M/s SRB & associates. In addition to this the Company has filed additional claims of ₹ 6.89
crore in FY 21-22 and ₹26.21 crore in FY 22-23 with the OERC, out of which ₹ 6.89 crore and ₹ 18.08 Crore has been approved respectively,
pending disposal of ASL petition.
CIN:U40109OR2020PLC032901
(iv) The balance of Regulatory Assets/Liabilities of distribution business at the reporting date is as follows:

Particular
2023 2022
₹ crore ₹ crore
Regulatory Deferral Account

Regulatory Assets 82.89 126.24
Net Regulatory Assets 82.89 126.24
(v) Movement of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities is as follows:

2023 2022
₹ crore ₹ crore
a. Opening Regulatory Assets (Net of Liabilities) 126.24 89.04
b. Regulatory Income/(Expenses) during the year

(i) Power Purchase Cost 3,252.44 2,713.33
(ii) Other expenses as per the terms of Tariff Regulations including Return on Equity 1,598.73 1,386.34
(iii) Available revenue including non tariff income etc 4,906.15 4,180.40
(iv) Regulatory Income/(Expenses) recognised in OCI 20.03 109.29
(v) Allowance based on true up order 16.71 -
c. Net movement in regulatory Income/(Expenses) (net) (i + ii - iii + iv + v) (18.24) 28.56
d. Regulatory deferral asset in respect of opening assets deletion - 8.64
e. Regulatory deferral liability in respect of PFC interest reversal (25.11) -
f. Closing Regulatory Assets (a+c+d+e) 82.89 126.24
(vi) Truing Up Order
During the current year, the Company has filed true up petitions for FY 20-21 and 21-22 along with ARR petition for FY 23-24 as per the
regulations. After going through due process of tariff finalization, the OERC has issued true up order up to FY 22 and ARR for FY 23-24. In the true
up order, the OERC has found that the licensees have incurred actual expenses in variance to initially approved amount by the OERC.
The OERC has trued up revenue gap/surplus up to 31.03.22 resulting in a lower revenue entitlement of ₹74.13 crore amount vis-a-vis the
amount arrived at using actual expenses incurred by the Company.
The Commission has stated in the order that the actual expenses booked in the audited accounts are higher than the approved costs for most of
components, particularly for O&M. However, DISCOMs have booked higher Revenues also against the approved Revenues in the ARR. The
DISCOMs have proposed to allow the higher costs owing to the operational requirement during these initial two years of the operations i.e. FY
2020-21 and 2021-22. The Commission observes these proposed higher costs can only be verified through relevant information/data, field visits
and third party audit.
In view of the above, the management believes that, the Company will be able to justify additional expense to the OERC and claim through ARR.
Accordingly, the Company continuous to treat the expenses as pass through the consumer. The management believes that, there will not be any
adverse financial implications and the Company is in process of taking up these issues with the OERC as per applicable law.
CIN:U40109OR2020PLC032901
31 Commitments: As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Estimated amount of Contracts remaining to be executed on capital account and not provided for. 370.56 151.70
Total 370.56 151.70
As per terms of vesting order, cumulative capital expenditure of ₹1,541 crores (FY 2021-25) has been committed. Further, commitment in
respect of AT&C losses reduction and past arrears collection have also been stated in the vesting order.
32 Contingent Liabilities*
In the normal course of business, contingent liabilities arise from litigations and claims. It is a possible obligation that arises from the past
events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be
measured reliably. The Company does not recognise a contingent liability but discloses the same.
A contingent asset is a possible asset that arises 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 entity. Contingent assets are not recognised but
disclosed only when an inflow of economic benefits is probable.
Particular As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
32.01 Claims against the Company not acknowledged as debts:
(i) Legal cases filed by consumers, employees and others under litigation 993.20 1,141.91
(a) CESU had filed an application to Regional Provident Fund Commissioner, Bhubaneswar (RPFC) for exemption from applicability of the
Employees Provident Funds and Miscellaneous Provisions Act, 1952 for which adjudication is pending. CESU had formed its own trust and
deposited the employer and employee’s contribution in the said trust @ 10% of the eligible salary. Although the adjudication for
exemption was pending, RPFC vide its assessment order dated October 13, 2014 raised a total demand of ₹551.62 Crores (₹279.39
Crores dues for non-remittance of Employer and Employee contribution to RPFC and ₹272.23 Crores as interest) on CESU for the period
from November, 1997 to December, 2011.The order also contended that CESU is required to make contribution @12% of the eligible
salary instead of 10%. The order of RPFC was challenged by CESU before the Hon'ble High Court. The Hon'ble High Court, on November
18, 2014, directed that the impugned assessment orders shall remain stayed subject to deposit of ₹30 Crore by CESU with the RPFC. The
order of the Hon'ble High Court was complied with by CESU. The said writ petition is still pending adjudication before the Hon'ble High
Court.
Subsequently, after the Company taking over power distribution business from the erstwhile CESU with effect from 01.06.2020, it has
continued to deposit Employer and Employee contribution @ 10 % each for the erstwhile employees in the contributory trust as the
matter is sub judice. However, on March 3, 2021 RPFC issued a notice for inspection to the Company on the PF issue for the period from
January 2012 till May 2020 and for the period from June 1, 2020.
Based on a legal opinion, the Company is of the view that it has a strong case against the demand of ₹551.62 Crores (November 1997 till
December 2011) plus any further demand, if raised by RPFC (January 2012 – May 2020) and accordingly, no provision has been
recognized in respect of the same. These cases are for pre TPCODL period and any obligation arising there on will be pass through to the
consumer and not have any adverse impact on financial position or financial performance of the Company.
(b) CESU had entered into agreement with distribution franchisees namely Riverside Utilities Private Limited (‘RUPL’) and Seaside Utilities
Private Limited (‘SUPL’) on January 30, 2013. As per the terms of agreement, franchisees were responsible for carrying out all
commercial activities including certain performance parameters such as reduction of AT&C losses, smart metering, minimum capital
expenditure, timely collection etc. However, due to poor performance of RUPL/SUPL and non-compliance of the terms of agreement,
erstwhile CESU did not extend the franchisee period. Writ petition was filed by the franchisees before the Hon’ble Orissa High Court for
renewal of existing franchise agreements along with total claim of ₹403.98 Crores (₹301.75 Crores by RUPL and ₹102.23 Crores by
SUPL). CESU had filed a counter claim of ₹598.89 Crores (₹396.87 Crores against RUPL and ₹202.02 Crores against SUPL). The Hon’ble
Orissa High Court vide its order dated March 27, 2019 ordered termination of franchisee agreement and ordered CESU and the
franchisees to reconcile the dues. On failure of reconciliation process the High Court vide its order dated February 19, 2021 ordered the
CESU (TPCODL) and franchisee to settle the claims by way of arbitration proceedings for which Arbitration Tribunal shall be constituted.
In May 2021 the franchisees have presented their claim totalling ₹437 Crores (approx.),TPCODL has also filed its counter claim
amounting ₹898 Crores. The matter is currently pending before Arbitration Tribunal for adjudication. Currently the Pleading stage is
complete and we are in the stage of Evidence, wherein both the parties have filed evidence by way of affidavit of the respective
witnesses and currently the matter is in the stage of cross examination which is listed in the month of July 2023 for further cross
examination of claimant’s witnesses. Prior to that the Claimants (RUPL and SUPL) have revised their claim and now the actual claim is
₹382.97 Crores (₹283.69 Crores by RUPL and ₹99.28 Crores by SUPL) which does not include invoices of TPCODL amounting to ₹15.37 Cr
(₹15.25 Crores to RUPL and ₹0.12 Crores to SUPL). However, at the same time, TPCODL has taken over the Utility of CESU with a clean
balance sheet as per the Vesting Order dated 26.05.2020, these cases are for pre TPCODL period and any obligation arising there on will
be pass through in the tariff and not have any adverse impact on financial position or financial performance of the Company.
(c) Before acquisition, CESU was not identifying and tracking dues payable to MSME vendors separately. Consequently, it was not
tracking whether timely payments are being made to such vendors and/ or interest/ penalty, if any, payable for delay in making
payment. Post acquisition, the Company has initiated a process and identified MSME vendors based on confirmations received. In the
absence of adequate data, the Company is unable to determine whether any interest of penalty is payable for past default in respect of
liabilities related to pre-acquisition period. The management will be able to identify and recognise such obligation, if any, based on claims
received.
32.02 Particular As at March 31, As at March 31,

2023 2022
₹ crore ₹ crore
Indirect taxation matters relating to service tax where demand is under contest 153.12 127.48
before judicial/appellate authorities
*No provision is considered necessary since the Company expects favourable decisions as well as past liabilities are pass through in tariff.
*No provision of GST on meter rent is considered as the Company backed by legal opinion is of the view that GST is not payable on the meter
rent as the said charges are directly attributable to distribution of electricity.
32.03 As per terms of vesting order all litigations pertaining to CESU have been transferred to the Company in case of any unfavourable outcome the
Company will be able to recover the liability through Aggregate Revenue Requirement.
32.04 Also refer note no. 30.01 (iv)

CIN:U40109OR2020PLC032901
33 Earnings per Equity Share (EPS)
Accounting policy
Basic earnings per equity share has been computed by dividing the profit/(loss) for the reporting period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the reporting period in accordance with Ind AS 33, "Earnings Per Share".
Diluted earnings per share is computed by dividing the profit/(loss) for the reporting period attributable to equity shareholders as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares by the
weighted average number of equity shares outstanding during the reporting period as adjusted to the effects of all dilutive potential equity
shares, except where results are anti-dilutive.
The Company also presents Basic earnings per equity share in accordance with Ind AS 114, "Regulatory Deferral Accounts" which is computed
by dividing the profit/(loss) for the reporting period before and after net movement in regulatory deferral account balance attributable to equity
shareholders by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed
by dividing the profit/(loss) for the reporting period before and after net movement in regulatory deferral account balance attributable to equity
shareholders as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares by the weighted average number of equity shares outstanding during the reporting period as adjusted to the effects of
all dilutive potential equity shares, except where results are anti-dilutive.
33.01 EPS - Continuing operations (excluding regulatory income/expense)
Year Ended
Particulars Units March 31, 2023 March 31, 2022
a) Profit for the year ₹ crore 13.28 29.45

b) Net movement in regulatory deferral account balance ₹ crore (38.26) (80.73)
c) Income-tax attributable to regulatory deferral account balance ₹ crore 9.63 20.32
d) Net movement in regulatory deferral account balance (net of tax) ₹ crore (28.63) (60.41)
(b-c)
e) Profit for the year from continuing operations attributable to equity ₹ crore 41.91 89.86
shareholders before net movement in regulatory deferral account balance (a-
d)
f) Weighted average number of equity shares Nos./crore 50.44 30.06
g) Basic and diluted earnings per equity share of ₹10 each (e/f) ₹ 0.83 2.99
h) Face value of equity shares ₹ 10.00 10.00
33.02 EPS - Continuing operations (including regulatory income/expense)

Particulars Year Ended
Units March 31, 2023 March 31, 2022
a) Profit for the year from continuing operations including net movement in ₹ crore 13.28 29.45
regulatory deferral account balance attributable to equity shareholders
b) Weighted average number of equity shares Nos./crore 50.44 30.06

c) Basic and diluted earnings per equity share of ₹10 each (a/b) ₹ 0.26 0.98
d) Face value of equity shares ₹ 10.00 10.00
34 Other Statutory Information
a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
c) The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and previous financial
year.
d) The Company does not have any such transactions which has not been recorded in the books of accounts but has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).
e) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
f) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall (a) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries), or (b) provide any guarantee, security or
the like to or on behalf of the ultimate beneficiaries.
g) The Company has not received funds from any person(s) or entity(ies), including foreign entities, with the understanding, whether
recorded in writing or otherwise, that the Company shall directly or indirectly, (a) lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party, or (b) provide any guarantee, security or the like on behalf of the ultimate
beneficiaries.
h) Quarterly returns or statements of current assets filed by the Company with the banks in connection with the working capital limit
sanctioned are in agreement with the books of accounts.
i) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are
duly executed in favour of the lessee) are held in the name of the Company.
j) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined
under the Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying
any terms or period of repayment.
k) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with
the Companies (Restriction on number of Layers) Rules, 2017 (as amended).
CIN:U40109OR2020PLC032901
35 Financial Instruments : Accounting classifications, Fair value measurements, Financial Risk management and offsetting of financial assets and
liabilities
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that
contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses
are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in the financial statements.
(i) Accounting classifications

The fair values of the financial assets and liabilities are the amount at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
a) The carrying amounts of trade receivables, cash and cash equivalents, short term deposits, trade payables, payables for acquisition of property, plant and
equipment, short term loans from banks, financial institutions and others are considered to be the same as their fair values, due to their short-term nature.
Most financial assets and liabilities of the Company as at the balance sheet date are short term having fair value equal to amortised cost.
(ii) Fair Value measurements

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices)
Level 3: Unobservable inputs from assets and liability
(i) Fair Value

The following table summarizes the fair value hierarchy for financial assets and financial liabilities that are either measured at fair value on a recurring basis
or are not measured at fair value (but fair value disclosures are required) and the carrying value of financial instruments by categories:
As at March 31, 2023: ₹ crore
Carrying
Particulars Amortised
Value FVTPL FVTOCI Level 1 Level 2 Level 3
Cost
Financial assets
Trade receivables 419.91 - - 419.91 - - -
Unbilled revenue 350.45 - - 350.45 - - -
Loan 13.13 - - 13.13 - - -
Other financial assets (current and non current) 464.62 - - 44.06 - - 420.56
Cash and cash equivalents 116.57 - - 116.57 - - -
Bank balances other than above 1,241.11 - - 1,241.11 - - -
2,605.79 - - 2,185.23 - - 420.56
Carrying
Value FVTPL Amortised Level 1 Level 2 Level 3
Financial Liabilities
Cost
Borrowings (current and non current) 657.48 - 238.21 - - 419.27
Trade payables 774.56 - 774.56 - - -
Other financial liabilities 1,572.24 - 1,572.24 - - -
3,004.28 - 2,585.01 - - 419.27
As at March 31, 2022: ₹ crore

Carrying
Particular FVTPL FVTOCI Amortised Level 1 Level 2 Level 3
Value
Cost
Financial assets
Trade receivables 602.12 - - 602.12 - - -
Unbilled revenue 284.22 - - 284.22 - - -
Loan 12.95 - - 12.95 - - -
Other financial assets (current and non current) 399.72 - - 37.58 - - 362.14
Cash and cash equivalents 126.74 - - 126.74 - - -
Bank balances other than above 1,055.86 - - 1,055.86 - - -
2,481.61 - - 2,119.47 - - 362.14
Carrying FVTPL Amortised Level 1 Level 2 Level 3

Financial Liabilities
Value Cost
Borrowings (current and non current) 621.04 - 440.39 - - 180.65
Trade payables 800.41 - 800.41 - - -
Other financial liabilities 1,446.36 - 1,446.36 - - -
2,867.81 - 2,687.16 - - 180.65
CIN:U40109OR2020PLC032901
(iii) Capital Management & Gearing Ratio

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders
of the Company. The Company’s objectives for managing capital comprise safeguarding the business as a going concern, creating value for stakeholders and
supporting the development of the Company. In particular, the Company seeks to maintain an adequate capitalisation that enables it to achieve a
satisfactory return for shareholders and ensure access to external sources of financing, in part by maintaining an adequate rating.
The Company's capital structure consists of net debt and total equity. The Company includes within net debt, interest bearing borrowings, less cash and cash
equivalents as detailed below. The position on reporting date is summarised in the following table:
As at March As at March
Particulars 31, 2023 31, 2022
₹ crore ₹ crore
Long-term borrowings 419.27 180.65
Interest accrued but not due on borrowings 0.78 2.35
Short-term borrowings 238.21 440.39
Total debt (a) 658.26 623.39
Less: Cash and cash equivalents (b) 116.57 126.74
Net debt {(c)=(a-b)} 541.69 496.65
Total equity (d) 639.20 540.14

Total equity and net debt {(e)=(c+d)} 1,180.89 1,036.79
Net debt to total equity plus net debt ratio (%) {(f)=(c)/(e)} 46% 48%
i. Debt is defined as Non-current borrowings (including current maturities) and Current borrowings and interest accrued on Non-current and Current
borrowings.
ii. Equity is defined as equity share capital and other equity.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no significant breaches in the financial covenants of any interest-bearing loans and
borrowing in the current year.
(iv) Financial risk management objectives and policies

The Company’s principal financial liabilities comprise borrowings, consumers' security deposit, trade and other payables and other financial liabilities. The
main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other
receivables, cash and cash equivalents, other balances with banks, unbilled revenue and other financial assets that are derived directly from its operations.
The senior management of the Company oversees these risks and are managed in accordance with the Companies policies and risk objectives.
(v) Market Risk

Market risk is the risk that changes in market prices will affect the Company's income or value of it's holding of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. As at the reporting
date, the Company does not have material financial assets or financial liabilities exposing it to significant market risk comprising foreign currency risk,
interest rate risk and price risk.
The variable rate of borrowing will not have any impact on profit & loss of the company as interest cost is pass-through to consumers through ARR.
Market risk comprises of three types of risk: currency risk, interest rate risk and price risk.
(vi) Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s Long term debt obligations with floating interest rates.
Interest rates on floating rate loans are linked with different benchmarks (e.g. MCLR/T- Bills etc) to distribute the risk wherever possible. Further, senior
management of the Company monitors its interest rate risk regularly and may take appropriate action if needed to mitigate risk.
Any fluctuation in the floating interest rate will be allowed as pass through to the Company as part of the Annual Revenue Requirement (ARR). Hence, the
Company is of the view that the interest rate sensitivity on account of interest rate fluctuation will not have any material impact of its financial position or
financial performance as reflected in the financial statements.
(vii) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed
to credit risk from its operating activities (primarily trade receivables and unbilled revenue) and other financial instruments.
Particulars As at March As at March
31, 2023 31, 2022
₹ crore ₹ crore
(a) Trade receivables 419.91 602.12
(b) Unbilled revenue 350.45 284.22
(c) Loans 13.13 12.95
(d) Other financial assets (current and non current) 464.62 399.72
(e) Cash and cash equivalents 116.57 126.74
(f) Bank balances other than above 1,241.11 1,055.86
Total 2,605.79 2,481.61
In case of trade receivables and unbilled revenue, senior management of the Company monitors overdue amount on regular basis and take appropriate
action, including forfeiture of security deposit and/ or disconnection of electricity, to get timely dues. Refer note 9 for further details of credit risk/ loss
allowance on trade receivables. Most of the cash and bank balances of the Company are with scheduled commercial banks where risk of default is low.
CIN:U40109OR2020PLC032901
(viii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering
cash or another financial asset. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Company has access to a
sufficient variety of sources of funding.
The following table details the Company's remaining contractual maturity for its financial liabilities with agreed repayment periods, ignoring the call and
refinancing options available with the Company. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The amounts included below for
variable interest rate instruments for non-derivative liabilities is subject to change, if changes in variable interest rates differ to those estimates of interest
rates determined at the end of the reporting period.
₹ crore
Particulars Upto 1 year 1 to 5 years 5+ years Total
(a) Trade payables 774.56 - - 774.56
(b) Short term borrowings 215.61 - - 215.61
(c) Long term borrowings (including future interest) 58.39 279.05 341.38 678.82
(d) Interest accrued but not due on borrowings 0.78 - - 0.78
(e) Other financial liabilities 1,571.46 - - 1,571.46
2,620.80 279.05 341.38 3,241.23
₹ crore
Particulars Upto 1 year 1 to 5 years 5+ years Total
(a) Trade payables 800.41 - - 800.41
(b) Short term borrowings 410.85 - - 410.85
(c) Long term borrowings (including future interest) 44.51 143.01 90.67 278.19
(d) Interest accrued but not due on borrowings 2.35 - - 2.35
(e) Other financial liabilities 1,444.01 - - 1,444.01
2,702.13 143.01 90.67 2,935.81
As at the balance sheet date, the Company has cash and bank balances of ₹1,777.58 crores (March 31, 2022: ₹1544.14 crores) which can be used to meet
its obligation. In case of requirement, the management is confident of raising further finance as required to meet its obligations. The Company has access to
financing facilities as described in note below. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial
assets.
₹ crore
Financing facilities (Short term ) Non-fund
Fund based Total
based
Secured credit facilities, reviewed annually and payable at call
Amount used and outstanding 215.61 536.62 752.23
Amount unused 720.39 88.38 808.77
Total 936.00 625.00 1,561.00
₹ crore
Financing facilities (Long term) Non-fund
Fund based Total
based
Amount used and outstanding 443.44 - 443.44
Amount unused 423.14 - 423.14
Total 866.58 - 866.58
₹ crore
Financing facilities (Short term ) Non-fund
Fund based Total
based
Amount used and outstanding 410.85 481.80 892.65
Amount unused 430.15 68.20 498.35
Total 841.00 550.00 1,391.00
₹ crore
Financing facilities (Long term) Non-fund
Fund based Total
based
Amount used and outstanding 211.87 - 211.87
Amount unused 204.61 - 204.61
Total 416.48 - 416.48
CIN:U40109OR2020PLC032901
36 Related party disclosures

Names of related parties and related party relationship-where control exists
A. Holding company
The Tata Power Company Limited (TPCL)
B. Promoters holding together with its subsidiary more than 20% in holding company
Tata Sons Private Limited (Tata Sons)
C. Company exercising significant influence

GRIDCO Limited
D. Fellow Subsidiaries (with whom Company has transactions)

Tata Power Delhi Distribution Ltd (TPDDL)
Maithon Power Ltd (MPL)
Tata Power Trading Company Limited (TPTCL)
TP Ajmer Distribution Limited (TPADL)
Coastal Gujarat Power Ltd (CGPL)
TP Northern Odisha Distribution Limited
TP Western Odisha Distribution Limited
TP Southern Odisha Distribution Limited
Tata Power Solar Systems Limited
E. Joint Venture of Holding Company (with whom Company has transactions)

Industrial Energy Ltd (IEL)
F. Subsidiaries and Jointly Controlled Entities of Promoters of Holding Company - Promoter Group
(with whom the Company has transactions)
Tata Consulting Engineers Ltd. (TCES)
Tata AIG General Insurance Company Ltd
Tata Capital Financial Services Ltd. (TCFSL)
Tata Consulting Services (TCS)
Tata Steel Long Products Limited
G. Post retirement employee benefit trust

CESCO Employees Pension Trust
CESCO Employees Gratuity Trust
CESCO Employees Provident Fund Trust
H. Key management personnel

Chief Executive Officer
Mr. Shenbagam Manthiram
Chief Financial Officer

Mr. Puneet Munjal (Date of cessation July 27, 2021)
Mr. Hemant Goyal (From July 28, 2021)
Company Secretary
Mr. Darshan Soni (Date of cessation May 31, 2022)
Mrs. Suchitra Dash (From June 1, 2022)
Non-executive Directors
Mr. Trilochan Panda
Dr. Praveer Sinha
Mr. Arup Ghosh
Mr. Gagan Bihari Swain
Mr. Sanjay Kumar Banga
Mr. Nipun Aggarwal (Date of cessation April 18, 2022)
Mr. Sanjeev Gupta (From April 28, 2022)
Independent Directors
Mr. Kailash Nath Shrivastava
Ms. Satya Gupta
Dr. Rabi Narayan Bohidar
Mr. Rabindra Nath Nayak
CIN:U40109OR2020PLC032901
Related party transactions and balances#

a. Particulars of transactions with the related parties:
S No. Name of Related Party Nature of transactions Year Ended
March 31, March 31,
2023 2022
₹ crore ₹ crore
1 Purchase of power, receiving of services & reimbursement of expenses
Tata Power Delhi Distribution Ltd (TPDDL) Deputation of employees & Reimbursement of 0.86 1.49
expenses
The Tata Power Company Limited (TPCL) Deputation of employees, Meter Data 1.20 1.94
Management Services & Reimbursement of
expenses
GRIDCO Limited Power purchase expenses net of rebate 2,942.39 2,472.89
Tata Capital Financial Services Ltd (TCFSL) Rental services received 0.75 -
Tata AIG General Insurance Company Ltd Insurance services 2.70 -
Tata Consulting Engineers Ltd (TCES) Engineering consultancy services 0.24 -
Tata Consulting Services (TCS) Consulting Services 0.22
TP Ajmer Distribution Limited (TPADL) Reimbursement of expenses 0.01 -
2 Rendering of services and energy sale & energy purchase
TP Northern Odisha Distribution Limited Sale of energy 1.11 0.89
TP Western Odisha Distribution Limited Purchase of energy 0.00 0.09
TP Western Odisha Distribution Limited Sale of energy 0.04 -
Industrial Energy Ltd (IEL) Miscellaneous income 0.01 -
TP Northern Odisha Distribution Limited Common service agreement fees - 1.00
TP Western Odisha Distribution Limited Common service agreement fees - 1.00
TP Southern Odisha Distribution Limited Common service agreement fees - 1.00
3 Payment towards PPE
Tata Power Delhi Distribution Ltd (TPDDL) Property, plant and equipment 0.00 0.32
Tata Power Trading Company Limited (TPTCL) Property, plant and equipment - 0.00
TP Ajmer Distribution Limited (TPADL) Property, plant and equipment - 0.00
The Tata Power Company Limited (TPCL) Property, plant and equipment 0.05 0.05
Tata Power Solar Systems Limited Property, plant and equipment 0.07 -
TP Western Odisha Distribution Limited Property, plant and equipment 0.13 -
TP Northern Odisha Distribution Limited Property, plant and equipment 0.80 -
TP Southern Odisha Distribution Limited Property, plant and equipment 0.01 -
4 Transactions towards gratuity and annual leave
The Tata Power Company Limited (TPCL) Net of PPE, gratuity & annual leave 0.55 0.01
Industrial Energy Ltd (IEL) Gratuity & annual leave 0.03 0.05
Maithon Power Ltd (MPL) Gratuity & Annual Leave 0.06 0.04
Tata Power Delhi Distribution Ltd (TPDDL) Gratuity & Annual Leave 0.27 2.39
Coastal Gujarat Power Ltd (CGPL) Gratuity & Annual Leave - -
TP Northern Odisha Distribution Limited Gratuity & Annual Leave 0.20 0.10
TP Western Odisha Distribution Limited Gratuity & Annual Leave 0.30 0.01
TP Southern Odisha Distribution Limited Gratuity & Annual Leave 1.60 -
Tata Steel Long Products Limited Gratuity & Annual Leave 0.01 -
Tata Power Solar Systems Limited Gratuity & Annual Leave 0.26 -
5 Supply of consumable items
TP Western Odisha Distribution Limited Supply of tamper proof box - 0.07
TP Southern Odisha Distribution Limited Supply of tamper proof box - 0.28
6 Transaction with Trust
CESCO Employees Pension Trust Contribution of pension 172.72 166.26
CESCO Employees Gratuity Trust Contribution of gratuity 18.33 20.51
CESCO Employees Provident Fund Trust Contribution of provident fund 27.66 (7.47)
7 Transactions in relation to Equity
The Tata Power Company Limited (TPCL) Share capital 43.75 104.01
GRIDCO Limited Share capital 42.03 99.94
8 Managerial remuneration including directors' sitting fee Managerial remuneration and sitting fees 4.04 2.47
Total 3,262.40 2,869.34
b. Particulars of Outstanding Payable/ Receivable with the related parties:

S No. Name of the Entity Nature of transactions As at March As at March
31, 2023 31, 2022
₹ crore ₹ crore
1 Equity
The Tata Power Company Limited (TPCL) Share capital 300.76 257.01
GRIDCO Limited Share capital 288.97 246.94
2 Payables
GRIDCO Limited Trade payable 446.66 389.61
Tata Power Delhi Distribution Ltd (TPDDL) Trade payable 0.18 0.37
TP Western Odisha Distribution Limited Trade payable 0.18 0.02
TP Northern Odisha Distribution Limited Trade payable 1.09 0.10
Maithon Power Ltd (MPL) Trade payable - 0.04
Industrial Energy Ltd (IEL) Trade payable - 0.50
The Tata Power Company Limited (TPCL) Trade payable 0.56 -
Tata Steel Long Products Limited Trade payable 0.01 -
Tata Consultancy Services Trade payable 0.22 -
Tata Power Solar Systems Limited Trade payable 0.26 -
3 Receivables
TP Northern Odisha Distribution Limited Trade receivable 2.01 1.05
TP Southern Odisha Distribution Limited Trade receivable 0.00 1.28
TP Western Odisha Distribution Limited Trade receivable 0.11 1.07
Tata AIG General Insurance Company Ltd Other current assets (advance to vendor) - 0.01
TP Ajmer Distribution Limited (TPADL) Other current assets (advance to vendor) - 0.45
Maithon Power Ltd (MPL) Other current asset 0.06 -
The Tata Power Company Limited (TPCL) Other current asset - 2.11
# 0.00 represents amount below the rounding off norm adopted by the Company
CIN:U40109OR2020PLC032901
37 Business Combinations
The Company has been incorporated on April 6, 2020 under the Companies Act, 2013 (as amended). Pursuant to vesting order issued by the OERC dated
May 26, 2020 ('Vesting Order'), the Company acquired the business of distributing power in Central Orissa (‘Business’) from the CESU with effect from June
1, 2020 ('Vesting Date'). Accordingly, the Company is a licensee to carry out the function of distribution and retail supply of electricity covering the
distribution circles of Bhubaneshwar, Cuttack, Paradeep and Dhenkanal in the state of Odisha for a period of 25 years effective from June 1, 2020.
The OERC has issued the Carve Out order dated 01.10.2021 to specify assets and liabilities transferred to the Company. The Carve Out order so issued by
the OERC acknowledges that underlying details are not available for certain assets and liabilities. In accordance with the Carve Out Order, these amounts
have been transferred to the Company and will continue to be its liabilities, and they cannot be paid without verification. These liabilities need to be verified
through an external agency. Once verified, the Company is obliged to discharge the same upon the OERC approval. These liabilities cannot be written off
without the Board and the OERC approval. Pending legal release, the Company continues to recognise these liabilities at the stated amount reflecting
acquisition date fair values. In accordance with the vesting order, any change in the value of assets and liabilities transferred on account of the
reconciliation / resolution of the above matters and / or any other matter identified in future will be allowed to be recovered by the Company in the manner
specified in the vesting order, viz., by way of future tariff adjustment or adjustment to the grant liability. Hence, the Company believes that the
reconciliation / resolution of the above matters will not have any impact on the financial position and financial performance of the Company as reflected in
the financial statements.
(a) Carrying amount of security deposits (classified under note 16 in the Balance Sheet) as per the general ledger is higher by Rs. 59.95 crores as
compared to balance as per customer ledger.
(b) Vendor/customer details not available for the following items:

(i) Loans and advances given – ₹1.28 Crores (classified under note 11 in the Balance Sheet)
(ii) Payable to Vendors – ₹44.59 Crores (classified under note 20 in the Balance Sheet)
(iii) Retention money, Earnest money & Security deposit from others – ₹7.71 Crores (classified under note 16 in the Balance Sheet)
(iv) Consumer contribution for work – ₹299.80 Crores (classified under note 16 in the Balance Sheet)
The Company, with the CESU management and the help of the OERC, is in the process of reconciling/ resolving the above matters and adjustments, if any,
will be recognized post reconciliation and resolution of the matters. As stated above, the Vesting Order provides that any change in the value of assets and
liabilities transferred on account of the reconciliation / resolution of the above matters and/ or any other matter identified in future will be allowed to be
recovered by the Company in the manner specified in the vesting order. Hence, the Company believes that the reconciliation/ resolution of the above
matters will not have any impact on the financial position and financial performance of the Company as reflected in the financial statements.
38 Disclosure regarding details of assets created with Government Fund and used by CESU/TPCODL
As per details provided by the Odisha Power Transmission Company Limited (OPTCL) vide e-mail dated 18 April 2023 (March 31, 2022: 25 April 2022),
certain assets were created for CESU through different schemes formed by the government and executed by OPTCL. Based on details shared by OPTCL, the
carrying amount of such assets as of March 31, 2023 is ₹2,403.49 crores (March 31, 2022: ₹2,333.14 crores) for completed assets and ₹250.32 crores
(March 31, 2022: ₹439.16 crores) for work in progress(WIP). These are subject to detailed verification and reconciliation by various authorities.
As per the Vesting Order, the ownership of these assets has not been transferred to the Company; however, it can continue to use these assets for supply
of power to the consumer. Since the Company is not able to charge any depreciation for these assets in the ARR, the fair value of these assets for the
Company at the vesting date is Nil. Details are given below:
As at March 31, 2023 ₹ crore

Name of Scheme CESU
Completed WIP Total
Odisha Distribution System Strengthening Project (ODSSP)* 662.64 184.55 847.19
State Capital Region Improvement in Power System (SCRIPS) 511.86 58.56 570.42
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) 289.97 - 289.97
Integrated Power Development Scheme (IPDS) 217.73 - 217.73
Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya 168.99 - 168.99
Nabakalebar 158.83 - 158.83
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) 38.93 - 38.93
Odisha Dedicated Agriculture & Fishery Feeder Project (ODAFFP) 59.24 7.21 66.45
Biju Gram Jyoti Yojana(BGJY) 153.33 - 153.33
Total 2,261.52 250.32 2,511.84
* Excluding ₹99.94 crore & ₹42.03 crore as it is a part of equity contribution by GRIDCO during the year ending March 31, 2022 and March 31, 2023.
As at March 31, 2022 ₹ crore

Name of Scheme CESU
Completed WIP Total
Odisha Distribution System Strengthening Project (ODSSP)* 533.58 318.50 852.08
State Capital Region Improvement in Power System (SCRIPS) 665.27 61.42 726.69
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) 289.96 - 289.96
Integrated Power Development Scheme (IPDS) 217.73 - 217.73
Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya 168.99 - 168.99
Nabakalebar 158.83 - 158.83
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) 38.93 - 38.93
Odisha Dedicated Agriculture & Fishery Feeder Project (ODAFFP) 6.58 59.24 65.82
Biju Gram Jyoti Yojana(BGJY) 153.33 - 153.33
Total 2,233.20 439.16 2,672.36
* Excluding ₹99.94 crore as it is a part of equity contribution by GRIDCO during the year ending March 31, 2022.
CIN:U40109OR2020PLC032901
39 Segment Reporting
The Company is engaged in the business of distribution of power in Central of Odisha. Chief Operating Decision Maker (CODM) reviews the financial information of
the Company as a whole for decision making and accordingly the Company has a single reportable segment.
There is no consumer from whom the Company has earned more than 10% of revenue.
40 Relationship with Struck off Companies*

(₹ crore)
Transaction
Balance as at As Balance as at As Relationship with
Sl Nature of transactions with during the Year
Name of struck off Company at March 31, at March 31, the struck off
No. struck off Company Ended March 31,
2023 2022 Company
2023
1 Aaren-I-Tech Pvt Ltd Consumer 0.04 - 0.00 Trade receivable
2 Arundhati Infratech (P) Ltd Consumer 0.03 0.00 0.00 Trade receivable
3 Aryan Infra Projects Pvt Ltd Consumer 0.05 (0.00) (0.00) Trade receivable
4 Blaze Electronics Pvt Ltd Consumer 0.02 - (0.00) Trade receivable
5 Capital Infotech Pvt Ltd Consumer 0.01 0.00 0.00 Trade receivable
6 Destiny Infra Properties (P) Ltd Consumer 0.01 0.01 (0.00) Trade receivable
7 Dynamic Aqua & Agri Pvt Ltd Consumer 0.00 0.00 0.00 Trade receivable
8 Frontier Aqua Minerals Pvt Ltd Consumer - 0.15 0.15 Trade receivable
9 Hotel Repose Pvt Ltd Consumer 0.00 0.20 0.20 Trade receivable
10 Independent Mobile Infrastructure Ltd Consumer 0.00 0.00 0.00 Trade receivable
11 Jahangir Agro Complex Ltd Consumer 0.00 0.01 0.01 Trade receivable
12 K.D Infracon Consumer 0.00 0.00 (0.00) Trade receivable
13 Lords Realcon Pvt Ltd Consumer 0.16 0.00 0.00 Trade receivable
14 Maa Tarini Abasika Traders Pvt Ltd Consumer 0.00 0.00 0.01 Trade receivable
15 Mamu Bhanaja Construction Pvt Ltd Consumer 0.00 0.02 0.02 Trade receivable
16 Metro Builders Pvt Ltd Consumer 0.07 0.01 0.00 Trade receivable
17 Paradeep Carbons Ltd Consumer 0.01 (0.00) 0.00 Trade receivable
18 Rajesh Construction Pvt Ltd Consumer 0.04 - (0.00) Trade receivable
19 Ranjit Builders Ltd Consumer 0.01 0.00 (0.00) Trade receivable
20 Retac India Solutions Pvt Ltd Consumer 0.05 0.06 0.04 Trade receivable
21 Shree Ganesh Buildcon Pvt Ltd Consumer 0.03 (0.00) (0.00) Trade receivable
22 Sugean Webbings Pvt Ltd Consumer 0.04 (0.00) (0.00) Trade receivable
23 Sagar Business Pvt Ltd Consumer 0.04 (0.00) - Trade receivable
* 0.00 represents amount below the rounding off norm adopted by the Company.
41 Social Security Code

The Code on Social Security 2020 ('Code') has been notified in the Official Gazette on September 29, 2020. The Code is not yet effective and related rules are yet to
be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are
notified.
CIN:U40109OR2020PLC032901
42 Financial Ratios
As at March As at March Reason for variance in excess of
Sl No Ratios Numerator Denominator Note % change
31, 2023 31, 2022 25%
a) Current ratio (In times) Current assets Current liabilities a 0.83 0.79 5% NA
b) Debt-equity ratio Total debt Total equity b 1.03 1.15 -11% NA
c) Debt service coverage ratio Profit before tax + interest Interest expense + c 2.51 2.20 14% NA
(In times) expenses + depreciation scheduled principal
& amortisation - current repayment of long term
tax expense debt and lease
liabilities during the
year
d) Return on equity ratio Net Profits after taxes Average Shareholder’s d 0.02 0.07 -68% The ratio has fallen due to drop in profit
Equity after tax mainly on account of
provisioning for debtors.
e) Trade receivables turnover Average receivable Gross Sales 62.60 55.64 13% NA
ratio (including regulatory
balances wherever
applicable) x number
of days
f) Trade payables turnover Average trade payable x Net credit purchases e 68.82 79.64 -14% NA
ratio number of days
g) Net capital turnover ratio Revenue from operation Working capital = f (10.24) (6.93) 48% The ratio has increased due to: (1)
including net movement Current assets – increase in revenue (2) increase in
in Regulatory deferral Current liabilities current assets due to better cash
balances management
h) Net profit ratio Net Profit after Tax Revenue including 0.00 0.01 -62% The ratio has fallen due to increase in
net movement allowance for doubtful debts.
in Regulatory deferral
balances
i) Return on capital employed Profit before tax + interest Average Capital d 0.05 0.12 -56% The ratio has gone down due mainly due
expense employed to 2 factors- (1) Lower profit after tax
excluding interest on (Shareholder's primarily on account of increase in
consumer security deposit equity + Total Debt allowance for doubtful debts and (2)
+ Deferred tax liability) Lower base effect for Capital employed
As explained in note related to financial instruments, the Company has access to sufficient liquidity resources to continue its operations for at least 12 months from the date of approval
of financial statements.
Inventory turnover ratio and return on investment ratio is not applicable to the Company.
Note:
a. Current Assets as per balance sheet
Current Liabilities as per balance sheet
b. Total Debt: Long term borrowings (including current maturities of long term borrowings), short term borrowings and interest accrued on these debts
Total Equity : Issued share capital and other equity
c. For the purpose of computation, scheduled principal repayment of long term borrowings does not include prepayments
Interest expenses is net of interest consumer security deposits
d. Average Shareholders Equity: Issued share capital and other equity

e. Net credit purchases comprise of (a) cost of power purchased; (b) transmission charges and (c) Other expenses excluding (i) Bad debts (including provision); (ii) CSR expenses.
Trade Payable: as per balance sheet less employee related trade payables
f. Working Capital:
i) Current Assets: as per balance sheet
ii) Current Liabilities as per balance sheet (excluding current maturities of long term debt and lease liability and interest accrued on long-term debts)
CIN:U40109OR2020PLC032901
43 Significant events after the reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the
relevant notes.
44 Previous year figures are regrouped or rearranged where ever required.
45 Approval of financial statements

The financial statements were approved for issue by the board of directors on April 24, 2023.

VISHAL
BANSAL
DN: cn=VISHAL BANSAL, c=IN,
RAJIB SEKHAR
o=Personal, email=vishal.b@srb. SEKHAR SAHOO
BANSAL in
Date: 2023.04.24 23:53:58 +05'
30' SAHOO
Date: 2023.04.24
23:38:00 +05'30'
Partner Partner

Digitally signed
SANJAY Digitally signed
by SANJAY PRAVEE bySINHA
PRAVEER
KUMAR KUMAR BANGA
BANGA
Date: 2023.04.24
23:05:25 +05'30'
23:06:09 +05'30'

Director Director
DIN:07785948 DIN:01785164
MANTHIR Digitally signed

AM Digitally signed by MANTHIRAM
HEMANT by HEMANT
GOYAL
GOYAL Date:
SHENBAGAM
SHENBAG
Date: 2023.04.24 22:58:05 +05'30'
2023.04.24
AM 22:53:17 +05'30'

SUCHIT Digitally signed

by SUCHITRA
RA DASH
Date: 2023.04.24
DASH 22:52:24 +05'30'
Suchitra Dash
Company Secretary
Date: April 24, 2023 Place : Bhubaneswar

TP Central Odisha Distribution Limited FY22 23

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S R B C & CO LLP SRB & Associates

Chartered Accountants Chartered Accountants

INDEPENDENT AUDITOR’S REPORT

To the Members of TP Central Odisha Distribution Limited

Report on the Audit of the Financial Statements

We have audited the accompanying financial statements of TP Central Odisha Distribution

Basis for Opinion

Key Audit Matters

Responsibility of Management for the Financial Statements

In preparing the financial statements, management is responsible for assessing the

Auditor’s Responsibilities for the Audit of the Financial Statements

• Conclude on the appropriateness of management’s use of the going concern basis of

Report on Other Legal and Regulatory Requirements

Company from any persons or entity, including foreign entities (“Funding

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is

For S R B C & CO LLP For SRB & Associates

Re: TP Central Odisha Distribution Limited (“the Company”)

and the procedure of such verification by the management is appropriate.

(d) On an overall examination of the financial statements of the Company, no funds

disclosed in the notes to the financial statements, as required by the applicable

For S R B C & CO LLP For SRB & Associates

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

Management’s Responsibility for Internal Financial Controls

included obtaining an understanding of internal financial controls with reference to these

Meaning of Internal Financial Controls with Reference to these Financial Statements

A company's internal financial controls with reference to financial statements is a process

Inherent Limitations of Internal Financial Controls with Reference to Financial

For S R B C & CO LLP For SRB & Associates

RAJIB Digitally signed

As at March 31, As at March 31,

(B) Current Assets

II. EQUITY AND LIABILITIES

(C) Current liabilities

For S R B C & CO LLP For SRB & Associates

Sanjay Banga Praveer Sinha

T GOYAL 22:55:26 +05'30'

Year Ended Year Ended

Less: Net movement in regulatory deferral balances (Net) (38.26) (80.73)

(VII) Tax expenses

(VIII) Profit for the year (VI-VII) 13.28 29.45

(IX) Other Comprehensive Income

(XI) Earnings Per Equity Share (Excluding Regulatory income/(expense) (Net))

Earnings Per Equity Share (including Regulatory income/(expense) (Net))

See accompanying notes forming part of financial statements

As per our report of even date

For S R B C & CO LLP For SRB & Associates

per Vishal Bansal per R S Sahoo

For and on behalf of the Board of TP Central Odisha Distribution Limited

Sanjay Banga Praveer Sinha

MANTHIR Digitally signed

AM 22:56:43 +05'30' GOYAL Date: 2023.04.24

Manthiram Shenbagam Hemant Goyal

SUCHIT Digitally signed

See accompanying notes forming part of financial statements

As per our report of even date

Sanjay Banga Praveer Sinha

SUCHITR Digitally signed by

A. Equity Share Capital

Balance as at April 1, 2022 50,39,50,000 503.95

Balance as at March 31, 2022 36.19 36.19