a)    The conveyancing of the title to 6,951.72 acres of freehold land of value ' 1,022.47 crore (31 March 2022: 10,288.43 acres of value ' 1,587.39 crore), buildings and structures of value ' 4.97 crore (31 March 2022: ' 4.97 crore) and also execution of lease agreements for 5645.11 acres of right of use land of value ' 612.67 crore (31 March 2022: 9,349.00 acres of value ' 606.89 crore) in favour of the Company are awaiting completion of legal formalities.

b)    Land includes 1,295.40 acres of freehold land of value ' 29.56 crore (31 March 2022: 1,275.84 acres of value ' 44.92 crore) and 376.57 acres of right of use land of value ' 3.07 crore (31 March 2022: 377.11 acres of value ' 3.10 crore) not in possession of the Company. The Company is taking appropriate steps for repossession of the same.

c)    Land-freehold includes an amount of ' 263.92 crore (31 March 2022: ' 263.92 crore) deposited with various authorities in respect of land in possession which is subject to adjustment on final determination of price.

d)    Gross block of land under submergence represents ' 632.83 crore (31 March 2022: ' 628.05 crore) of freehold land and ' 178.83 crore (31 March 2022: ' 178.83 crore) of right of use land. The land has been amortized considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials.

e)    Possession of land measuring 98 acres (31 March 2022: 98 acres) consisting of 79 acres of freehold land (31 March 2022: 79 acres) and 19 acres of right of use land (31 March 2022: 19 acres) of value ' 0.21 crore (31 March 2022: ' 0.21 crore) was transferred to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (erstwhile UPSEB) for a consideration of ' 0.21 crore. Pending approval for transfer of the said land, the area and value of this land has been included in the total land of the Company. The consideration received from erstwhile UPSEB is disclosed under Note 35 - Current liabilities - Other financial liabilities.

f)    During the year, the company entered into with a Business Transfer Agreement (BTA) with NTPC Green Energy Ltd, a wholly owned subsidiary of the company, for transfer of fifteen Renewable Energy (RE) assets of the Company. The assets were transferred as at the closing date of transfer being 28 February 2023 at book value pursuant to BTA. Further, free hold land admeasuring 1,202.55 acre in respect of one of the RE assets was not transferred to the subsidiary which has been let out on lease. Consequently, the freehold land has been classified as 'Investment property' considering the requirements of Ind AS 40-Investment property and disclosed under Note 4. Further, approval for assignment / novation of ROU land pertaining to Rojmal project and Jetsar project are yet to be consented by the lessor. Refer Note 51. Details of Property,plant and equipment transferred to the subsidiary , included in the adjustment column of gross block and depreciation/amortisation during the year, are as under:

g)    Operations of one of the thermal power station of the Company (460 MW) was discontinued w.e.f. the end of 31 March 2021. Some of the assets have been classified as held for sale considering the requirements of Ind AS 105. Carrying value of remaining assets of the station as at 31 March 2023 is ' 120.52 crore (31 March 2022: ' 222.56 crore). It is expected that many of the assets are expected to be used in other power plants of the Company. Notwithstanding the above, the net realisable value of the assets of the station has been assessed which is more than its carrying value.

h)    Operations of one of the thermal power station (220 MW) of the Company was discontinued w.e.f. 8 September 2021. Carrying value of remaining assets of the station as at 31 March 2023 is ' 97.61 crore (31 March 2022: ' 130.71 crore). The net realisable value of the assets of the station has been assessed which is more than its carrying value.

i)    Adjustment to Land-right of use in the previous year included an amount of ' 776.05 crore, being the cost de-recognised consequent to order of APIIC for cancellation of 1200 acres of land allotted to the Company in the state of Andra Pradesh. alongwith writing back of accumulated depreciation/ amortisation amounting to ' 131.92. The order provided allotment of alternate land in lieu of the same, subject to attached conditions. Consequently, the amount derecognized net of related liabilities, has been included under Capital advances (Note 12). During the year, Government of Andra Pradesh (GoAP) has accorded permission for development of green hydrogen hub on the land and execution of land lease agreement is under discussion with GoAP, pending which the advance paid earlier towards cost of land has been continued to be disclosed under Capital advances (Note-12).

j)    Refer Note 73 regarding property, plant and equipment under leases.

k)    Spare parts of ' 5 lakh and above, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized.

l)    Property, plant and equipment costing ' 5,000/- or less, are depreciated fully in the year of acquisition.

m)    Refer Note 25 for information on property, plant and equipment pledged as security by the Company.

n)    Refer Note 76 (C) (a) for disclosure of contractual commitments for the acquisition of property, plant and equipment.

o)    Deduction/adjustments from gross block and depreciation and amortization for the year includes:

p) Exchange differences capitalized in Capital work-in-progress (CWIP) are allocated to various heads of CWIP in the year of capitalisation. Exchange differences in respect of assets already capitalised are disclosed in the 'Deductions/Adjustments' column of Property, plant and equipment. Asset-wise details of exchange differences and borrowing costs included in the cost of major heads of CWIP and property, plant and equipment through 'Addition' or 'Deductions/Adjustments' column are given below:

t) Business Combinations

Ministry of Corporate Affairs (MCA) vide its order dated 29 July 2022 approved the Scheme of Amalgamation of Nabinagar Power Generating Company Limited (NPGCL) and Kanti Bijlee Utpadan Nigam Limited (KBUNL), wholly owned subsidiaries of NTPC Limited into NTPC Limited, w.e.f. 1 April 2022 being the appointed date. Accordingly, the assets and liabilities of the transferor companies shall vest with transferee company from the appointed date. The transferor companies were dissolved without winding up on the effective date of 26 August 2022 (Refer Note 65).

Being a common control acquisition, the accounting has been done considering the provisions of Appendix C to lnd AS 103 "Business Combination" as per pooling of interest method under which assets and liabilities of the combining entities are reflected at the carrying amounts and no adjustments are made to reflect fair values, or recognize any new assets or liabilities. Further, restatement of previous year figures has been done as if the business combination had occurred from the beginning of preceding period in compliance with the above. Accordingly, gross block and accumulated depreciation / amortisation /impairment presented in the previous year, have been restated. The amount included in the gross block and accumulated depreciation / amortisation/impairment as at 1 April 2021 and 31 March 2022 in respect of these companies are as under:

a)    Construction stores includes material lying with contractors for construction works and are net of provision for shortages pending investigation amounting to ' 28.54 crore (31 March 2022: ' 28.69 crore).

b)    Pre-commissioning expenses for the year amount to ' 667.45 crore (31 March 2022: ' 649.56 crore) and after adjustment of pre-commissioning sales of ' 175.28 crore (31 March 2022: ' 104.30 crore) resulted in net pre-commissioning expenditure of ' 492.17 crore (31 March 2022: ' 545.26 crore).

c)    Additions to the development of coal mines include expenditure during construction period (net) of ' 651.07 crore (31 March 2022: ' 411.99 crore) - [Ref. Note 48] and after netting off the receipts from coal extracted during the development phase amounting to ' 282.67 crore (31 March 2022: ' 64.84 crore).

d)    Details of exchange differences and borrowing costs capitalised are disclosed in Note 2 (p).

b)    As per Business transfer agreement (BTA) entered into between the Company and NTPC Green Energy Ltd. (NGEL), a wholly owned subsidiary of the Company, for transfer of fifteen Renewable Energy (RE) assets of the Company as at 28 February 2023, freehold land pertaining to one of the RE stations admeasuring 1202.55 acres of value ' 465.18 crore as at 28 February, 2023 shall remain with the Company and will be leased to NGEL at the mutually agreed terms and conditions. Accordingly, the said freehold land has been classified as Investment property during the year. (Refer Note 51 relating to BTA).

c)    The rental income arising out of leasing out of the property amounting to ' 0.19 crore (31 March 2022: Nil) has been included in Note 41 - Other income. Disclosure on future rent receivable is included in Note 73. The direct operating expenses arising from the investment property are insignificant.

d)    The company does not have any contractual obligation to purchase , construct or develop investment property or for repairs, maintenance or enhancements.

e)    Investment property pledged as security is Nil.

f)    The fair value of the investment property is ' 472.70 crore which is based on the valuation by a registered valuer as defined under Rule 2 of Companies (Registered valuers and valuation) Rules,2017.

a)    Investments have been valued as per accounting policy no. C.28.1 (Note 1).

b)    NTPC Green Energy Ltd (NGEL) was incorporated on 7 April 2022 for take over of 15 number of RE assets of NTPC and NTPC's stake in NTPC Renewable Energy Limited (NREL). Business Transfer agreement and Share Transfer agreement was signed with NGEL and the 15 number of RE assets of NTPC and entire stake in NREL has been transferred to NGEL as at the closing date of 28 February 2023. Refer Note 51. Corporate action for crediting shares in demat account of NTPC is under process.

c)    The Resolution Plan submitted by the company and approved by National Company Law Tribunal (NCLT), Kolkata bench in respect of Jhabua Power Limited (JPL) having installed and commercial capacity of 600 MW thermal power station, was implemented on 5 September 2022 for a total consideration of ' 925 crore, out of which ' 325 crore was contributed as equity (face value of '10 each) and ' 600 crore was paid for the allotment of 8.5% Non-Convertible Debentures (NCDs) of face value of ' 100 each. Pursuant to above, NTPC has acquired 50 % equity in the Company (JPL). Based on the shareholders agreement which provides for joint control over the company, the investment in the company is considered as joint venture and accounted for accordingly.

d)    The Board of NTPC Ltd. in its meeting dated 29 October 2022 has accorded approval to the Supplementary JV Agreement of Anushakti Vidyut Utpadan Nigam Limited, a Joint Venture of the Company, to increase the stake in the company from existing 49% to 50% and to align the document in line with Atomic Energy Act 2016 amendment so that the Joint Venture Company may initiate process for setting up of nuclear power projects.

e)    Promoters of National High Power Testing Laboratory Ltd.(NHPTL), a joint venture of the Company, in the meeting held on 15 September 2022, under the chairmanship of Secretary Power, MoP, has accorded approval of restructuring plan of NHPTL. Subsequently, Board of NTPC Limited has accorded approval to the restructuring plan on 11 March 2023. Pending implementation of the revival plan and based on the un-audited reviewed accounts of NHPTL as at 31 March 2023, provision for impairment loss on the entire investment in the joint venture of ' 30.40 crore (upto 31 March 2022: ' 16.16 crore) has been made.

f)    The Board of Directors of the Company in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from NTPC BHEL Power Projects Private Ltd. (NBPPL), a joint venture of the Company. A meeting was held on 3 October 2022 at MOP to discuss the way forward for NBPPL. In the meeting, it was decided that the process of winding up of NBPPL will be taken up by both the promoters after the completion of balance on going work at one of the projects of the Company. Pending withdrawal, provision for impairment loss on the entire investment in NBPPL of ' 50.00 crore (upto 31 March 2022: ' 50.00 crore) has been made based on the un-audited accounts of NBPPL as at 31 March 2023.

g)    The Board of Directors of the Company in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from Transformers and Electricals Kerala Ltd. (TELK), a joint venture of the Company. GOI has accorded its approval for exit of NTPC from the joint venture. The decison of the Board of Directors of NTPC Limited and approval of GOI has been conveyed to the Government of Kerala (GoK) (JV Partner) & TELK. GoK has in-principally agreed for the exit of the NTPC Ltd.. and NTPC has written a letter to Chief Secretary, GoK on 17 March 2023 for expediting the process of exit of the Company from TELK.

h)    The Board of Directors of the Company in its meeting held on 26 March 2022 accorded in principle approval offering equity stake of the Company in Hindustan Urvarak and Rasayan Ltd.,(HURL) a joint venture of the Company, to Indian Oil Corporation Limited (IOCL) as outright sale which has not been agreed by IOCL. Ministry of Chemical and Fertilizers (MoC&F) vide letter dated 12 October 2022 has communicated the Company and other lead promoters of HURL to explore possibility of disinvestment in HURL in the respective boards. NTPC Board accorded in principle approval for disinvestment of its stake in HURL. MOP vide letter dated 31 January 2023 has accorded approval for the same. MoC&F will take up with Department of Investment and Public Asset Management (DIPAM) of GoI for disinvestment approval once they receive all lead promoter(s) and their administrative ministries consent.

i)    NTPC EDMC Waste Solutions Private Limited (NEWS) was incorporated on 1 June 2020 to develop and operate integrated waste management and energy generation facility using municipal solid waste. However, as suitable land & PPA was not available, the project was dropped. NTPC vide letter dated 4 May 2022 to has requested the consent of Municipal Corporation of Delhi (MCD)/East Delhi Municipal Corporation to transfer its 26% stake in NEWS to NTPC or any of its affiliate/associate companies. Decission of MCD is awaited.

j)    Restrictions for the disposal of investments held by the Company and commitments towards certain subsidiary & joint venture companies are disclosed in Note 76 (C) (b) and (c).

b)    The Board of Directors of NTPC Limited in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from PTC India Ltd. (PTC). As the Company was formed by a directive from the GOI, approval of the GOI was required for exit by NTPC. Ministry of Power has accorded permission for NTPC to exit from PTC on 22 February 2022. NTPC is in discussion with other promoters to finalize the modalities of exit from PTC.

c)    The Board of Directors of NTPC Limited in its meeting held on 27 January 2012 accorded in principle approval for withdrawal from International Coal Ventures Private Ltd. (ICVPL). NTPC Board has accorded fresh approval for exiting from ICVPL on 20 May 2022. Department of Investment and Public Asset Management (DIPAM) of GoI vide OM dated 1 June 2022 has empowered Board of Directors of Public Sector Undertakings to exit from Joint Ventures and Subsidiaries and send proposal to DIPAM through administrative Ministry for approval. Communication sent to Steel Authority oif India Ltd & ICVPL regarding DIPAM guidelines for consideration. Pending withdrawal, the Company had lost the joint control over the entity and accordingly, has classified the investment in ICVPL as 'Investment in unquoted equity instruments'.

d)    The Board of Directors of NTPC Limited in its meeting held on 19 June 2014 accorded in principle approval for withdrawal from BF-NTPC Energy Systems Ltd. (BF-NTPC), a joint venture of the Company. As BF-NTPC was formed by a directive from the GOI, approval of the GOI was sought for exit by the Company. Ministry of Power, GoI conveyed its approval for winding up of BF-NTPC on 8 January 2018. Consequently, liquidator was appointed in the extra-ordinary general meeting of BF-NTPC held on 9 October 2018. The winding up is under process. Pursuant to winding up proceedings, the Company had lost the joint control over the entity and accordingly, has classified the investment in BF NTPC as 'Investment in unquoted equity instruments'. The difference between the cost of investment and the fair value has been provided for in the earlier years.

e)    The Company is of the view that provisions of Ind AS 24 'Related Party Disclosures' and Ind AS 111 'Joint Arrangements' are not applicable to the investments made in PTC India Ltd., International Coal Ventures Private Ltd. and BF-NTPC Energy systems Ltd., and the same has been accounted for as per the provisions of Ind AS 109 'Financial Instruments'. Also Refer Note 59 for investments in PTC India Ltd.

f)    No strategic investments in equity instruments measured at FVTOCI were disposed during the financial year 2022-23, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

c)    Loan to Ratnagiri Gas & Power Company Private Ltd. is secured by first ranking pari passu charge/ mortgage on the assets (moveable and immoveable, tangible and intangible and current assets) of the Subsidiary, both present and future.

d)    Loans - Others represent loan of ' 17.20 crore (31 March 2022: ' 21.50 crore) given to Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) which is covered by a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

e)    Loans to the employees are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company.

a) Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 notified on 3 June 2022, provides that the outstanding dues of the beneficiaries including late payment surcharge (LPSC) upto the date of the said notification shall be rescheduled upto a maximum period of 48 months in the manner prescribed in the said Rules and no LPSC shall be charged on the outstanding dues from the date of notification subject to application to be made by the beneficiaries in this regard. Pursuant to the above, some of the beneficiaries have applied for redetermination of their payment of dues under these Rules. The dues of such beneficiaries have been presented at their fair value under Non- current Trade Receivables considering the requirements of applicable Indian Accounting Standards. Consequently, the fair value difference amounting to ' 386.84 crore (31 March 2022: Nil) has been charged to Statement of Profit and Loss (Refer Note 46). Out of the above, an amount of ' 149.88 crore (31 March 2022: Nil) has been accounted as interest from non current trade receivables (Refer Note 41).

a) Claims recoverable represents ' 517.28 crore (31 March 2022: ' 696.19 crore) towards the cost incurred upto 31 March 2023 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI which includes ' 302.16 crore (31 March 2022: ' 456.85 crore) in respect of arbitration awards challenged by the Company before Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against Current liabilities - Provisions - Provision for arbitration awards (Note 37). Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures,

other recurring site expenses and interest costs as well as claims of contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

b)    The Company had ascertained that the Power Purchase Agreement (PPA) entered into for Stage-I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets was derecognized from PPE and accounted as Finance Lease Receivable (FLR) on transition to Ind AS. The Company has continued to classify this arrangement with its customer as lease based on the practical expedient provided in Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are continued to be adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are continued to be recognised as 'Interest income on Assets under finance lease' under 'Revenue from operations' (Note 40).

c)    As per the guidelines from Ministry of Coal, Government of India for preparation of Mine Closure Plan, Escrow Accounts have been opened for each captive mine and the balances held in these escrow accounts are presented as 'Mine closure deposit'. Up to 80% of the total deposited amount including interest accrued in the escrow account shall be released after every five years in line with the periodic examination of the closure plan as per the Guidelines. Interest earned on the escrow account is added to mine closure deposit account.

a)    In line with accounting policy no. 15 (Note 1), deferred foreign currency fluctuation asset has been accounted and

' 830.98 crore (31 March 2022: ' 630.97 crore) being the exchange fluctuations on account of foreign currency loans have been adjusted in 'Energy sales' under 'Revenue from operations' (Note 40).

c)    Capital advances include ' 224.29 crore (31 March 2022: ' 224.29 crore), paid to a contractor pending settlement of certain claims which are under litigation. The amount will be adjusted with the cost of related work or recovered from the party, depending upon the outcome of the legal proceedings.

d)    Advances to contractors and suppliers include payments to Railways amounting to ' 1,708.03 crore (31 March 2022: ' 1,862.94 crore) under customer funding model as per policy on 'Participative model for rail-connectivity and capacity augmentation projects' issued by the Ministry of Railways, GOI. As per this policy, an agreement has been signed between the Company and the Ministry of Railways, GOI on 6 June 2016. As per the agreement, railway projects agreed between the Company and Railways will be constructed, maintained and operated by Railways and ownership of the line and its operations and maintenance will always remain with them. Railways will pay upto 7% of the amount invested through freight rebate on freight volumes every year till the funds provided by the Company are fully recovered along-with interest (equal to the prevailing rate of dividend payable by Railways at the time of signing of respective agreements), subject to the rebate not exceeding the freight amount in the accounting year, after commercial operation date (COD) of the railway projects. The advance is adjusted at projects which have achieved COD based on confirmation from Railways towards freight rebate in consonance with the agreement terms and the interest portion is recognised in Note-41-'Other income'.

e)    Secured capital advances are secured against the hypothecation of the construction equipment/material supplied by the contractors/suppliers.

f)    Loans given to employees are measured at amortized cost. The deferred payroll expenditure represents the benefits on account of interest rate on loans being lower than the market rate of interest. The same is amortized on a straight-line basis over the remaining period of the loan.

a)    Security deposits (unsecured) include ' 54.20 crore (31 March 2022: ' 29.55 crore) towards sales tax/GST deposited with sales/commercial tax authorities, ' 1,458.49 crore (31 March 2022: ' 1,138.11 crore) deposited with Courts, ' 218.83 crore (31 March 2022: ' 225.00 crore) deposited with LIC for making annuity payments to the land oustees and ' 500.00 crore (31 March 2022: ' 500.00 crore) deposited against bank guarantee with one of the party as per the direction of the Hon'ble Supreme Court of India, refer Note 63 (iii).

b)    Advances - Others include prepaid expenses amounting to ' 42.58 crore (31 March 2022: ' 44.98 crore).

c)    Advances - Related parties include amounts due from the following private companies in which one or more directors of the Company are directors:

NTPC-GE Power Services Private Ltd.    0.02    0.01

NTPC BHEL Power Projects Private Ltd.    19.27    -

d)    Loans given to employees are measured at amortized cost. The deferred payroll expenditure represents the benefits on account of interest rate on loans being lower than the market rate of interest. The same is amortized on a straight-line basis over the remaining period of the loan.

e)    Advances to contractors and suppliers mainly include payment made to coal companies amounting to ' 3,143.51 crore (31 March 2022: ' 1,993.63 crore) for supply of coal to various stations of the Company.

f)    Claims recoverable includes claims against Railways amounting to ' 2,023.76 crore (31 March 2022: ' 2,006.86 crore) mainly towards diversion of coal rakes. These are regularly reviewed and reconciled with the Indian Railways periodically. Claims recoverable also includes claims amounting to ' 1,615.66 crore (31 March 2022: ' 1,893.68 crore) made against coal companies towards various issues eg. credit notes to be received as per referee results for grade slippages, supply of stones, claims under settlement through AMRCD, surface transportation charges,etc.

a)    The Company has surplus land of 20.87 acres which is under process of disposal. The Company expects that the fair value (estimated based on market values) less costs to sell is higher than their carrying values and hence no impairment is considered necessary.

b)    Plant and equipment and Other assets (Office equipment, vehicles,furniture and fixtures,etc.) have been identified for disposal due to replacement/ obsolescence of assets which happens in the normal course of operations. On account of classification of these assets from Property,plant and equipment , the loss recognised in the statement of profit and loss is not material.

c)    These assets are expected to be disposed off within the next twelve months.

d)    The Company has not reclassified any of the assets classified as held for sale as Property,plant and equipment during the year as well as in the previous year.

a)    Regulatory deferral account balances have been accounted in line with Accounting policy no. C.4 (Note 1). Refer Note 71 for detailed disclosures.

b)    CERC Tariff Regulations, 2019 provide for recovery of deferred tax liability (DTL) as at 31 March 2009 from the beneficiaries. Accordingly, DTL as at 31 March 2009 is recoverable on materialisation from the beneficiaries. Regulations, 2014 and Regulations, 2019 provide for grossing-up the rate of return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. Accordingly, deferred tax liability for the period from 1 April 2014 will be reversed in future years when the related DTL forms part of current tax. Keeping in view the above, the Company has recognized such deferred tax as regulatory deferral account debit balances, since the amounts are recoverable in future years.

e)    Increase in the authorised share capital

The authorised share capital of the Company has increased from '10,000 crore to ' 16,600 crore pursuant to scheme of amalgamation of two subsidiaries of the Company, vide order dated 26 August 2022 of Ministry of Corporate Affairs, GOI. Refer Note 65.

f)    For the period of preceeding five years as on the Balance sheet date:

(i)    Shares bought back:

The Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of ' 2,275.75 crore being 2% of the total paid up equity share capital at ' 115.00 per equity share , during the financial year 2020-21.

(ii)    Shares allotted as fully paid up by way of bonus shares:

The Company had issued 164,90,92,880 equity shares of ' 10/- each as fully paid bonus shares in the financial year 2018-19 in the ratio of one equity share of ' 10/- each for every five equity shares held.

Pursuant to Gazette Notification dated 3 November 2009, issued by the Ministry of Environment and Forest (MOEF), Government of India (GOI), the amount collected from sale of fly ash and fly ash based products should be kept in a separate account head and shall be utilized only for the development of infrastructure or facility, promotion & facilitation activities for use of fly ash until 100 percent fly ash utilization level is achieved.

The principal Gazette Notification dated 14th September 1999, has been superseded by Gazette Notification dated 31st December 2021, of Ministry of Environment and Forest and Climate Change (MOEF&CC), GOI which is applicable from 1st April 2022. The notification dated 31 December 2021 does not mention any requirement of keeping the amount thus collected in a separate account. However, the Company continues to spend the amounts collected after 25.01.2016, from sale of fly ash and fly ash-based products for offsetting it against the expenditure incurred for transportation of ash to various road construction projects by respective Station

The fund balance has been kept in 'Bank balances other than cash & cash equivalents' (Note 17). Also refer Note 22 & 71 for ash transportation cost.

a)    Details of terms of repayment and rate of interest

i)    Unsecured foreign currency loans (guaranteed by GOI) - Others carry fixed rate of interest ranging from 1.80% p.a. to 2.30% p.a. and are repayable in 7 to 16 semi annual installments.

ii)    Unsecured foreign currency loans -    Banks include loans of ' 67.13 crore (31 March 2022: ' 84.14 crore) which carry

fixed rate of interest of 1.88% and loans of ' 19,761.81 crore (31 March 2022: ' 13,193.57 crore) which carry floating rate of interest linked to 6M USD LIBOR/6M SOFR/6M EURIBOR/3M TONA/6M TONA . These loans are repayable in 1 to 25 semi annual/annual installments as of 31 March 2023, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iii)    Unsecured foreign currency loans -    Others include loans of ' 1,568.31 crore (31 March 2022: '1,862.96 crore) which

carry fixed rate of interest ranging    from 1.88% p.a. to 4.13% p.a and loans of ' 2,093.57 crore (31 March 2022:

' 1,539.56 crore) which carry floating rate of interest linked to 3M TONA/6M TONA . These loans are repayable in 03 to 25 semi annual instalments as of 31 March 2023, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iv)    Unsecured rupee term loans from banks and others carry interest rate ranging from 6.57% p.a. to 8.30% p.a. with monthly/half-yearly rests. These loans are repayable in half-yearly/yearly instalments as per the terms of the respective loan agreements. The repayment period extends from a period of 9 to 15 years after a moratorium period of 3 to 6 years.

v)    Secured rupee term loans from banks and others carry interest rate ranging from 7.85% p.a. to 8.50% p.a. with monthly/quarterly rests. These loans are repayable in quarterly/yearly instalments as per the terms of the respective loan agreements. The repayment period extends from a period of 11 to 15 years after a moratorium period of 6 months to 5 years.

b)    There has been no default in repayment of any of the loans or interest thereon as at the end of the year.

c)    The company has used the borrowings from banks and financial institutions for the purposes for which they were taken.

Details of securities

I    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage, by way of first charge, by deposit of title deeds of the immovable properties pertaining to National Capital Power Station.

II    Secured by Equitable mortgage of the immovable properties pertaining to Vindhyachal Super Thermal Power Station on first charge basis.

III    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Sipat Super Thermal Power Project by extension of charge already created.

IV    Secured by Equitable mortgage, on pari-passu charge basis, of the immovable properties pertaining to Barh Super Thermal Power Project.

V    Secured by Equitable mortgage, on pari-passu charge basis, of the immovable properties pertaining to Vindhyachal Super Thermal Power Station.

VI    Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to National Capital Power Station by extension of charge already created.

VII    Secured by English mortgage of the immovable properties pertaining to Solapur Super Thermal Power Project on first charge basis.

VIII    Secured by Equitable mortgage of the immovable properties pertaining to Barh Super Thermal Power Project on first charge basis.

IX    Secured by English mortgage, on pari-passu charge basis, of the immovable properties pertaining to Solapur Super Thermal Power Project.

X    (i) Secured by a first priority charge on all assets, present & future, movable & immovable and land of 975.05 acres

and second charge on all inventories and receivables, in respect of loan from consortium led by SBI for Muzzafarpur Thermal Power Station (Kanti Bijlee Utpadan Nigam Ltd., erstwhile Subsidiary of the Company) expansion project. The security will rank pari-pasu with all term lenders of the project. The charge has been created in favor of SBI Cap Trustee Co. Ltd. and Canara Bank. Legal mortgage of land in favour of security trustee has been executed for 877.18 acres out of 975.05 acres of land.

(ii) Secured by a first pari passu charge on entire current assets and fixed assets of Nabinagar Thermal Power Station (Nabinagar Power Generating Company Limited, erstwhile subsidiary of the Company).

Secured by a first pari passu charge on all assets, present and future, movable and immovable through a deed of hypothecation and simple mortgage of 2500 acres of land of Nabinagar Thermal Power Station (Nabinagar Power Generating Company Limited, erstwhile subsidiary of the Company).

XI    Security cover mentioned at Sl. No. I to X is above 100% of the debt securities outstanding.

a)    Unpaid dividends, matured deposits, bonds and interest include the amounts which have either not been claimed by the investors/holders of the equity shares/bonds/fixed deposits or are on hold pending legal formalities etc. Out of the above, the amount required to be transferred to Investor Education and Protection Fund (IEPF) has been transferred except for the interim dividend for the year 2015-16 amounting to ' 0.66 crore. The transfer of dividend to IEPF is dependent upon transfer of shares pertaining to these dividends for which reconciliation with banks and Registrar and Transfer Agents (RTA) and consequential transfer to IEPF are under process.

b)    Other payables - Others' mainly includes ' 63.68 crore (31 March 2022: ' 250.39 crore) towards the implementation of Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) Scheme of the GOI being carried out by the Company. The funds for the implementation of these schemes are provided by the agencies nominated by the GOI in this regard. Further, 'Other payables - Others' also include Nil (31 March 2022: ' 380.48 crore) payable to the Department of Water Resource, Government of Odisha and ' 251.53 crore (31 March 2022: ' 251.53 crore) in respect of an amount payable under a contract which is under dispute and balance towards amount payable to hospitals, etc.

c)    The Company had obtained exemption from the Ministry of Corporate Affairs (MCA), GOI in respect of applicability of Section 58A from the erstwhile Companies Act, 1956 in respect of deposits held from the dependants of employees who die or suffer permanent total disability under the 'Employees Rehabilitation Scheme' (said amount is included in "Other payables - Others"). Consequent upon enactment of the Companies Act, 2013, the Company has written to the MCA for clarification on continuation of above exemption granted earlier, which is still awaited. Based on an expert opinion, the amount accepted under the Scheme is not considered as a deposit under the Companies Act, 2013.

d)    Disclosures as required under the Companies Act, 2013 / MSMED Act, 2006 are provided in Note 74.

c) Provision for others mainly comprise ' 90.79 crore (31 March 2022: ' 111.96 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to Block AA-ONN-2003/2 (Refer Note 66) and ' 5.97 crore (31 March 2022: ' 7.36 crore) towards provision for shortage in property, plant and equipment on physical verification pending investigation and ' 12.81 crore (31 March 2022: ' 17.86 crore) towards expected loss on investments of Provident Fund Trust.

a) Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the Tariff Regulations. Keeping in view the opinion of the EAC of ICAI, the Company is recognizing deferred foreign currency fluctuation asset by corresponding credit to deferred income from foreign currency fluctuation in respect of the FERV on foreign currency loans adjusted in the cost of property, plant and equipment, which is recoverable from the customers in future years as provided in accounting policy no. C.15 (Note 1). This amount will be recognized as revenue corresponding to the depreciation charge in future years. The amount does not constitute a liability to be discharged in future periods and hence, it has been disclosed separately from equity and liabilities.

a)    (i) CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019

vide Order dated 7 March 2019 (Regulations, 2019} for determination of tariff for the tariff period 2019-2024. CERC has issued provisional tariff orders in respect of twenty four stations for the tariff period 2019-24. Pending issue of provisional tariff orders in respect of balance stations, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new stations, which got commercialised from 1 April 2019 and stations where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Accordingly, capacity charges provisionally billed for the year ended 31 March 2023 is ? 47,631.73 crore (31 March 2022: ? 46,278.65 crore). Energy and other charges are billed as per the operational norms specified in the Regulations 2019. Accordingly, energy charges billed for year ended 31 March 2023 is ? 97,042.05 crore (31 March 2022: ?66,047.20 crore).

(ii) Capacity charges for the year ended 31 March 2023 have been provisionally recognized considering the provisions of CERC Tariff Regulations amounting to ? 49,832.28 crore (31 March 2022: ? 46,036.00 crore). Energy and Other charges for the year ended 31 March 2023 have been recognized at ? 1,00,306.61 crore (31 March 2022: ? 66,352.35 crore) as per the operational norms specified in the Regulations 2019.

b)    Capacity charges for the year ended 31 March 2023 include ? 1,829.50 crore (31 March 2022: ? 1,286.51 crore) pertaining to earlier years is on account of impact of CERC orders and other adjustments. Energy and other charges for the year ended 31 March 2023 include ? 3,206.12 crore (31 March 2022: ? 604.36 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments. Other adjustments include an amount of ? 3097.04 crore on account of adjustment of 'Net movement in regulatory deferral account balances (net of taxes)' relating to reimbursement of ash transportation cost for the period from 1 April 2019 to 31 March 2022 pursuant to Order of CERC dated 28 October 2022.

c)    Sales for the year ended 31 March 2023 include ? 262.97 crore (31 March 2022: Nil) on account of income tax receivable from the beneficiaries as per Regulations, 2004. Sales for the year ended 31 March 2023 also include ? 87.51 crore (31 March 2022: ? 87.60 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Energy sales include electricity duty amounting to ' 1,516.71 crore (31 March 2022: ' 1,352.73 crore).

e)    Revenue from operations for the year ended 31 March 2023 include ' 3,759.32 crore (31 March 2022: ' 3,551.54 crore) on account of sale of energy through trading (gross).

f)    Other operating revenue includes ' 92.04 crore (31 March 2022: ' 65.17 crore) towards energy internally consumed, valued at variable cost of generation and the corresponding amount is included in power charges in Note 46.

g)    CERC Regulations provides that where after the truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover from /pay to the beneficiaries the under/over recovered amount along-with simple interest. Based on the above, the interest recoverable from the beneficiaries amounting to ' 1,609.33 crore (31 March 2022: ' 917.69 crore) has been accounted as 'Interest from beneficiaries'. Further, the amount payable to the beneficiaries has been accounted as 'Interest to beneficiaries' in Note 46.

h)    Provision written back-others represents write back of provision towards water conservation fund at few projects of the Company (31 March 2022: towards water charges at one of the projects of the Company), which is no longer required.

i)    The Power Purchase Agreements (PPA) signed in respect of a power station was operative initially for a period of five years with the beneficiary which may be extended, renewed or replaced as the parties mutually agree. The Company has continued to classify these arrangement with its customers as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are considered as lease rentals on the assets which are on operating lease.

j)    The Company had ascertained that the PPA entered into for Stage-I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets was derecognized from PPE and accounted as Finance Lease Receivable (FLR) on transition date to Ind AS. The Company has continued to classify this arrangement with its customer as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiary are continued to be adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are continued to be recognised as 'Interest income on Assets under finance lease'.

k)    CERC vide notification dated 19 February 2021, notified the Second amendment to Tariff Regulations 2019, which inter alia includes mechanism for determination of transfer price of coal from integrated coal mines to generating stations and are effective for the period 2019-24. Coal extracted from Company's captive mines and supplied to generating stations have been accounted considering these Regulations.

49    a ) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no

unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables for energy sales, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipt of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers is generally done on quarterly basis. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters/emails with the negative assertion as referred in the Standard on Auditing (SA) 505 (Revised) 'External Confirmations', were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

b)    In the opinion of the management, the value of assets, other than property, plant and equipment and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

c)    The levy of transit fee/entry tax on supplies of fuel to some of the power stations has been paid under protest as the matters are sub-judice at various courts. In case the Company gets refund/demand from fuel suppliers/tax authorities on settlement of these cases, the same will be passed on to respective beneficiaries.

50    a) The environmental clearance (EC) granted by the Ministry of Environment and Forest, Government of India (MoEF),

based on the recommendations of Expert Appraisal Committee (EAC), for one of the Company's project consisting of three units of 800 MW each whose carrying cost as at 31 March 2023 is ' 14,586.51 crore (31 March 2022: ' 14,874.47 crore), was challenged before the National Green Tribunal (NGT) vide appeal no.12/2012. The NGT disposed off the appeal vide Order dated March 13, 2014, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and also directed that the EC shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier.

The Company filed an appeal challenging the NGT order before the Hon'ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice and pending for listing in the Court. The Company has been complying with various conditions stipulated in the EC and reporting to the appropriate environment authorities periodically. The EAC has been accepting the amendments sought by the Company in the EC.

Based on a legal opinion, the Company does not envisage any threat to the continuance to the project. All the units of the project have been declared commercial in the earlier years and are fully operational since September 2018.

b) The Company is executing a hydro power project in the state of Uttarakhand, where all the clearances were accorded. A case was filed in Hon'ble Supreme Court of India after the natural disaster in Uttarakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon'ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon'ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2023 is ' 147.90 crore (31 March 2022: ' 163.57 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

c) The Company is executing a 4 X 130 MW Hydro Electric Project in the state of Uttarakhand. After the reports of recent land subsidence in Joshimath Town, Additional District Magistrate, Chamoli has issued order on 5 January 2023 to stop all the construction activities till further orders. Hon'ble High Court of Uttarakhand on hearing a public interest litigation on 12 January 2023, has directed the State to strictly enforce the ban on construction in Joshimath area and scheduled next hearing on 24 May 2023. As per Company's understanding, the land subsidence in Joshimath does not have any link with the Project. The developments are closely being monitored by the Company. Aggregate cost incurred on the project up to 31 March 2023 is ? 6,252.31 crore (31 March 2022: ' 5,745.28 crore). Technical and administrative works related to the project are going on. Management does not envisage any threat to the continuance of the project and is confident that a viable solution in connection with the project shall be arrived in due course.

51. Transfer of Renewable Energy (RE) assets to NGEL, a wholly owned subsidiary of the Company

The Company has incorporated a wholly owned subsidiary, in the name of 'NTPC Green Energy Limited' (NGEL) on 7 April 2022, for reorganisation of its renewable energy business. Pursuant to the issuance of National Monetisation Pipeline ("NMP") by the Ministry of Finance on August 23, 2021, and in consultation with the Ministry of Power, the Renewable Energy Assets ("RE Assets") of NTPC Limited ("the Company") were identified for the purpose of monetisation under the NMP and accordingly The Board of Directors of the Company has approved the transfer of fifteen renewable energy assets ("RE Assets") of the Company to NGEL at book value, through a business transfer agreement dated 8 July 2022. Further, the Company will also transfer its 100% equity shareholding held in NTPC Renewable Energy Limited ("NREL") at cost, a wholly owned subsidiary of the Company, to NGEL through a share purchase agreement dated 8 July, 2022. The transfer of the RE assets and 100% equity shareholding in NREL, were completed on 28 February 2023.

1.    As per the terms of BTA, free hold land pertaining to BiLhaur Solar Project shall remain with the Company. A lease agreement is being signed between the two companies providing right to use of land in favour of NGEL till the end of Power Purchase Agreement of the Bilhaur project. Accordingly, the Company has classified the said freehold land as investment property in line with the requirements of Ind AS 40. Refer Note 4.

2.    Approval for assignment/novation of ROU land pertaining to Rojmal project and Jetsar project is yet to be consented by the lessor. Agreements have been entered to provide right to use ROU land pertaining to Rojmal project and Jetsar project by NTPC to NGEL (sub-lease) for a period of 6 months for carrying out necessary activities, as required to be carried out under BTA pending transfer of leasehold rights etc. These lands are included as part of purchase consideration in BTA, though the asset is retained in NTPC till receipt of consent for transfer. Accordingly, the ROU land admeasuring 863.27 acres of value ' 19.51 crore as at 28 February, 2023 along with corresponding lease liabilities pertaining to Rojmal project and Jetsar project have been retained in NTPC, which shall be suitably adjusted once the transfer of leasehold rights as stated above is effected. The net amount received in this regard is included in other current liabilities of the Company (Note 36).

3.    As per the BTA, freehold land and right-of-use land pertaining to other RE stations, except above stated lands, has been transferred to NGEL from NTPC. Accordingly, Freehold land admeasuring 5,384.13 acres of value ' 238.17 crore and right-of-use land admeasuring 6,943.75 acres of value ' 177.17 crore as at 28 February, 2023 along with corresponding lease liabilities pertaining to the RE assets (except as above stated) have been transferred to NGEL. The execution of conveyance deed for transfer of title deeds of freehold lands and execution of transfer deed/assignment agreement for transfer of lease lands will be completed in due course as part of post-closing obligations as per BTA.

4.    Settlement of transactions:

a)    The purchase consideration has been settled during the year by payment / allotment of equity except for an amount of ' 3,407.38 crore which has been paid by NGEL on 27 April 2023 alongwith interest @ 7.26 % per annum being the interest cost applicable for the relevant period on the borrowings of NTPC for the RE assets, as per the terms and conditions of BTA.

b)    Further 100% equity share holding in NREL as per the share purchase agreement, as amended, has been transferred to NGEL for ' 1,094.46 crore and equivalent equity shares of value of ' 1,094.46 crore were alloted to NTPC by NGEL.

c)    The total investment of the Company in NGEL is ' 4,719.61 crore (Refer Note 7) which includes equity shares allotted against purchase consideration and equity share capital alloted as stated at b) above, which are fully paid-up.

52 Disclosure as per Ind AS 1 'Presentation of financial statements

a) Changes in significant accounting policies:

During the year, following changes to the accounting policies have been made:

i)    Steel scrap is being accounted on accrual basis. During the year , the accounting of scrap has been modified to include other than steel scrap also in the valuation on accrual basis. Consequently, significant accounting policies 10 and 16.3 have been modified. Impact on profit due to the above change is not material.

ii)    Certain other changes have also been made in the policies nos. C.1.1, C.1.5, C.9, C.14, C.15, C.19, C.20.3, C.23, C.26, and C.29 for improved disclosures. There is no impact on the financial statements due to these changes.

b) Carrying amount of inventories pledged as security for borrowings as at 31 March 2023 is Nil (31 March 2022: ' 203.79 crore).

54. Disclosure as per Ind AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'

Recent accounting pronouncements

Standards / amendments issued but not yet effective:

The Ministry of Corporate Affairs ,vide notification dated 31 March 2023, has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 which amends certain Indian Accounting Standards which are effective 1 April 2023. Below is a summary of such amendments:

1.    Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

2.    Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of 'accounting estimates' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

3.    Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

The Company has evaluated the above amendments and the impact of the same on the standalone financial statements is not material.

(c) Deferred tax benefits out of merger of KBUNL and NPGCL with NTPC

i)    Unrecognised MAT credit

Deferred tax benefit in the form of MAT credit, of ' 118.02 crore, is acquired in a business combination (merger) of a subsidairy with the Company (Refer Note 65). The same was not recognised by the subsidiary in their financial statements in the previous financial year. The same has now been recognised in the current financial year as it is probable that the same will be utilised by the company in future years. Accordingly, regulatory deferral liability attributable to the said MAT credit entitlement has also been recognised.

ii)    Unabsorbed depreciation

Deferred tax asset on account of Unabsorbed depreciation that existed in the books of the two subsidiaries merged with the Company during the year as on 31 March 2022 has been recognised at ' 847.80 crore. The same will be fully utilised against current year's taxable income. (Refer Note 30 and Note 65).

56. Disclosure as per Ind AS 19 'Employee benefits

(i)    Defined contribution plans:

Pension

The defined contribution pension scheme of the Company for its employees which is effective from 1 January 2007, is administered through a separate trust. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer's contribution towards provident fund, gratuity, post retirement medical facility (PRMF) or any other retirement benefits. The Company's contribution towards pension is made to National Pension System Trust (NPS) for the employees opted for the scheme. An amount of ' 273.29 crore (31 March 2022: ' 250.00 crore) for the year is recognized as expense towards contributions to the defined contribution pension scheme of the Company/NPS for the year and charged to the statement of profit and loss.

(ii)    Defined benefit plans:

A. Provident fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI. Accordingly, the Company has obtained report of the actuary, based on which overall interest earnings and cumulative surplus is more than the statutory interest payment requirement for all the periods presented. Further, contribution to employees pension scheme is paid to the appropriate authorities.

Pursuant to paragraph 57 of Ind AS 19, accounting by an entity for defined benefit plans, inter-alia, involves determining the amount of the net defined benefit liability (asset) which shall be adjusted for any effect of limiting a net defined benefit asset to the asset ceiling prescribed in paragraph 64. As per Para 64 of Ind AS 19, in case of surplus in a defined benefit plan, an entity shall measure the net defined benefit asset at the lower of actual surplus or the value of the assets ceiling determined using the discount rate. The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. Further, paragraph 65 provides that a net defined benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen.

As per the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Company has no right to the benefits either in the form of refund from the plan or lower future contribution to the plan towards the net surplus of ' 56.88 crore (31 March 2022: ' 58.39 crore) determined through actuarial valuation. Accordingly, Company has not recognised the surplus as an asset, and the remeasurement loss /gains in 'Other Comprehensive Income', as these pertain to the Provident Fund Trust and not to the Company.

As per the provisions of Employee's Provident Funds Scheme 1952, the employer shall be liable to make good the loss to the Trust in the event of any loss as a result of any fraud, defalcation, wrong investment decisions etc. to the Trust. Keeping inview the above, a cummulative provision of ' 12.81 crore (31 March 2022: ' 17.86 crore) has been recognized in the Statement of Profit and Loss, towards such loss to the trust.

B Gratuity and pension

a) The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of ' 0.20 crore on superannuation, resignation, termination, disablement or on death, considering the provisions of the Payment of Gratuity Act, 1972, as amended. The gratuity scheme is funded by the Company and is managed by separate trust. The liability for gratuity scheme is recognised on the basis of actuarial valuation.

b) The Company has pension schemes at two of its stations in respect of employees taken over from erstwhile state government power utilities. These pension schemes are unfunded. The liability for the pension schemes is recognised on the basis of actuarial valuation.

C. Post-Retirement Medical Facility (PRMF)

The Company has Post-Retirement Medical Facility (PRMF), under which the retired employees and their spouses are provided medical facilities in the Company hospitals/empanelled hospitals. They can also avail treatment as out-patient subject to a ceiling fixed by the Company. The liability for the same is recognised annually on the basis of actuarial valuation. A trust has been constituted for its employees superannuated on or after 1 January 2007, for the sole purpose of providing post retirement medical facility to them.

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

G. Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

a) Asset volatility

The plan liabilities are calculated using a discount rate set with reference to government bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The Company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

b)    Changes in discount rate

A decrease in discount rate will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' assets holdings.

c)    Inflation risks

In the pension plans, the pension payments are not linked to inflation, so this is a less material risk.

d)    Life expectancy

The pension plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the Company's ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. The Company uses derivatives to manage some of its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets.

A large portion of assets consist of government and corporate bonds. The plan asset mix is in compliance with the requirements of the respective local regulations.

A. Leave

The Company provides for earned leave benefit (including compensated absences) and half-pay leave to the employees of the Company which accrue annually at 30 days and 20 days respectively. Earned leave (EL) is en-cashable while in service. Half-pay leaves (HPL) are en-cashable only on separation beyond the age of 50 years up to the maximum of 300 days.

However, total number of leave (i.e. EL & HPL combined) that can be encashed on superannuation shall be restricted to 300 days and no commutation of half-pay leave shall be permissible. The scheme is unfunded and liability for the same is recognised on the basis of actuarial valuation. During the year, provision amounting to ' 71.11 crore has been made on the basis of actuarial valuation at the year end and debited to statement of profit and loss (31 March 2022: ' 97.09 crore)

B Other employee benefits

Provision for long service award and family economic rehabilitation scheme amounting to ' (6.72) crore (31 March 2022: ' 14.52 crore) for the year have been made on the basis of actuarial valuation at the year end and (credited)/debited to the statement of profit and loss.

57    “Disclosure as per Ind AS 21 'The Effects of Changes in Foreign Exchange Rates'

The amount of exchange differences (net) debited to the statement of profit and loss, net of movement in regulatory deferral account balances, is ' 35.76 crore (31 March 2022: debited to Statement of profit and loss ' 22.88 crore).

58    Disclosure as per Ind AS 23 'Borrowing Costs'

Borrowing costs capitalised during the year is ' 2,785.95 crore (31 March 2022: ' 3,237.96 crore).

v) Entities under the control of the same government:

The Company is a Central Public Sector Undertaking (CPSU) controlled by Central Government by holding 51.10% of paid up share capital (31 March 2022- 51.10%) and is under Ministry of Power. The Company has transactions with other Government related entities, which significantly includes but not limited to purchase of fuel (coal, gas)/oil products, purchase of equipment, spares, receipt of erection, maintenance and other services, rendering consultancy and other services. Transactions with these parties are carried out at market terms and on terms comparable to those with other entities that are not Government-related generally through a transparent price discovery process against open tenders. In few cases of procurement of spares/services from Original Equipment Manufacturer (OEM) for proprietary items/or on single tender basis are resorted to due to urgency, compatibility and similar reasons which are also carried out through a process of negotiation with prices benchmarked against available price data of such items.

f) Terms and conditions of transactions with the related parties

i)    The Company is assigning jobs on contract basis, for sundry works in plants/stations/offices to Utility Powertech Ltd. (UPL), a joint venture of the Company. UPL inter-alia undertakes jobs such as overhauling, repair, refurbishment of various mechanical and electrical equipment of power stations. The Company has entered into Power Station Maintenance Agreement with UPL from time to time. The rates are fixed on cost plus basis after mutual discussion and after taking into account the prevailing market conditions.

ii)    Other transactions with related parties are made on normal commercial terms and conditions and at arm length price.

iii)    The Company is seconding its personnel to subsidiary and joint venture companies as per the terms and conditions agreed between the companies, which are similar to those applicable for secondment of employees to other companies and institutions. The cost incurred by the Company towards superannuation and employee benefits are recovered from these companies.

iv)    In respect of transactions entered into with Utility Powertech Ltd. (UPL), a joint venture of the Company, the management had till the previous year taken a view that a fresh approval of Shareholders may not be warranted as the company had taken approval from the Shareholders of the Company in the Annual General Meeting held in August 2015 for an amount upto 2% of annual turnover of the preceding FY or ' 1000 crore, whichever is higher and approval for extension of the arrangement by the board of directors of the company as on 1st April 2021 for five years. Also, though the contracts awarded during the year were ' 2,041.26 crore, works amounting to ' 647.62 crore only have been executed during the year against these contracts. The company had sought post facto approval of the same which has not been granted by the Audit Committee of the Board. Further, the company has sought expert guidance in respect of its present position in this regard which is awaited as of date. The management is of the opinion that the same will not have any material impact on the financial statements as these are transactions being routinely carried out by the Company over the years, in the normal course of business.

v)    Further, specific approval of the Audit Committee of the Board under section 177 of the Act has also not been accorded in respect of certain other significant related party transactions such as investments in subsidiaries/ joint venture companies aggregating to ' 1,783.44 crore, and sale to wholly owned subsidiaries, contribution to Trust for employee benefits, etc. aggregating to ' 3,575.78 crore. In this regard, since these transactions have either been approved by the Board/ specific sub-committee of the Board or are in the nature of transactions with wholly owned subsidiary in the ordinary course of business or mandated by specific requirements of the extant labour laws in the case of the contributions to employee benefit trust, the management is of the opinion that non-approval as above will not have material impact on the financial statements.

vii)    Consultancy services provided by the Company to subsidiary and joint venture companies are generally on nomination basis at the terms, conditions and principles applicable for consultancy services provided to other parties.

viii)    Outstanding balances of subsidiary and joint venture companies at the year-end are unsecured, except in respect of loan to RGPPL which is secured (Refer Note 11 c) and settlement occurs through banking transaction. These balances other than loans, investments in debentures and amount recoverable pursuant to business transfer agreement are interest free. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

ix)    Refer Note 62 (b), (c), (d) and (e) in respect of impairment loss on investment in certain subsidiaries and joint venture companies.

x)    Refer Note 76 (C) towards restrictions on disposal of investment and commitment towards further investments in the subsidiary and joint venture companies.

g) Others

The Company has investment of 1.20 crore equity shares of '10 each in PTC India Ltd, as disclosed in Note 8- 'Other investments' and is one of the promoters of the Company having 4.05% holding. The Company is of the view that provisions of Ind AS 24 'Related Party Disclosures' are not applicable to the investments made in PTC India Ltd. and the same has been accounted for as per the provisions of Ind AS 109 'Financial Instruments'. Based on a review during the year with regard appropriateness of accounting of the same under Ind AS 109, a reference has been made to Expert Advisory Committee of Institute of Chartered Accountants of India , awaiting receipt of opinion. During the year, the Company has transactions towards receipt of dividend of ' 6.96 crore (31 March 2022: ' 9.00 crore) and receipt of sitting fees for the nominee director amounting to ' 0.03 crore (31 March 2022: ' 0.10 crore) from PTC India Ltd..

As required by Ind AS 36, an assessment of impairment of assets was carried out and based on such assessment, the

Company has accounted impairment losses as under:

a)    For the Company, the recoverable amount of the property, plant and equipment & intangible assets of the Cash Generating Units (CGU) is value in use and amounts to ' 2,87,698.56 crore (31 March 2022: ' 2,67,954.01 crore). The net realisable value of the assets of the station has been assessed which is more than its carrying value. The discount rate used for the computation of value in use for the generating plant (thermal, gas and hydro) and coal mining is 7.27 % (31 March 2022: 7.07%) and for solar plant is 6.42 % (31 March 2022: 6.20%).

b)    In respect of investment in Ratnagiri Gas & Power Pvt. Ltd., provision for impairment on investments has been recognised at ' 834.55 crore (31 March 2022: ' 834.55 crore).

c)    In respect of investment in NTPC BHEL Power Project Pvt. Ltd., provision for impairment on investments has been recognised at ' 50.00 crore (31 March 2022: ' 50.00 crore). Also refer Note 7 f).

d)    In respect of investment in National High Power Test Laboratory Private Ltd., provision for impairment on investments has been recognised at ' 30.40 crore (31 March 2022: ? 16.16 crore).

e)    In respect of investment in Trincomalee Power Company Limited, provision for impairment on investments has been recognised at ' 14.28 crore (31 March 2022: ? 14.28 crore).

i)    Provision for obligations incidental to land acquisition

Provision for obligations incidental to land acquisition includes expenditure on rehabilitation & resettlement (R&R) including the amounts payable to the project affected persons (PAPs) towards land, expenditure for providing community facilities and expenditure in connection with environmental aspects of the project. The Company has estimated the provision based on the Rehabilitation Action Plan (RAP) approved by the board/competent authority or agreements/directions/demand letters of the local/government authorities. The outflow of said provision is expected to be incurred immediately on fulfilment of conditions by the land oustees/receipts of directions of the local/government authorities.

ii)    Provision for tariff adjustment

Billing to beneficiaries is being done based on tariff orders issued under Regulation 2014 except few stations where billing is done on provisional basis due to non-receipt of tariff orders. In such cases, accounting is done based on trued up cash expenditure as per Regulation 2019. Provision for tariff adjustment of ' 335.33 crore (31 March 2022: ' 122.00 crore) is mainly towards the estimated interest payable to beneficiaries at the time of issue of tariff orders.

iii)    Provision - Arbitration awards and Others

(a) (i) Provision for arbitration awards represents provision created (net) based on awards pronounced by the arbitrator in respect of various litigation cases amounting to ' 2,646.94 crore (31 March 2022: ' 2,274.72 crore). These awards have been challenged before various appellate authorities / Courts.

(ii) Provision for others includes ' 90.79 crore (31 March 2022: ' 111.96 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to Block AA-ONN-2003/2, ' 5.96 crore (31 March 2022: ' 7.36 crore) towards provision for shortage in property, plant and equipment on physical verification pending investigation and ' 12.81 crore (31 March 2022: ' 17.86 crore) towards expected loss on investments of Provident Fund Trust.

(b) The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at ' 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon'ble Supreme Court of India, an amount of ? 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of ? 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the financial year 2019-20, against the appeal of the Company, Hon'ble High Court directed the Company to deposit ' 500.00 crore with the Registrar General of the Court. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of ' 500.00 crore to the operator by the Registrar General subject to verification of bank guarantee and outcome of the application of the Company for formal handing over of the infrastructure. On 17 January 2020 unconditional BG was submitted by the operator to Registrar General and '500.00 crore was released to the operator by the Hon'ble High Court. As per order of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to Covid-19 pandemic, Local Commissioner's visit was deferred.

In view of delay in the handover exercise, the Company had filed an Application in Hon'ble High Court praying to pass further directions to operator in this regard. Hon'ble High Court on 11 November 2020 disposed off the application requesting the Ld. Local Commissioner appointed by the Court, to visit the project site expeditiously preferably within 2 weeks and carry out the commission. The handing over exercise has been delayed due to operator's issues with local labours at the site and Covid situation. Date of hearing at Hon'ble High Court of Delhi has been adjourned several times and listed for hearing on 23 May 2023.

Pending final disposal of the appeal by the Hon'ble High Court, considering the provisions of Ind AS 37 'Provisions, Contingent Liabilities and Contingent Assets' and Significant Accounting Policies of the Company, provision has been updated by interest to ' 38.42 crore (31 March 2022: ' 38.26 crore) (included at (a)(i) above) and the balance amount of ' 2,431.04 crore (31 March 2022: ' 2,292.30 crore) has been considered as contingent liability.

Also Refer Note 73 and 76.

(iv) (a) Provision for Mine closure obligation represents Company's obligations for land reclamation and decommissioning of structure consist of spending at mines in accordance with the guidelines from Ministry of Coal, Government of India. The Company estimates its obligations for mine closure, site restoration and decommissioning based on the detailed calculation and technical assessment of the amount and timing of future cash spending for the required work and provided for as per approved mine closure plan. Accordingly, a provision amounting to ' 323.80 crore (31 March 2022: ' 304.24 crore) has since been provided for. (Refer Significant accounting policy C.6.2)

(b) Provision for Expenditure incurred on removal of mine waste materials (overburden) necessary to extract the coal reserves is referred to as stripping cost. The Company has to incur such expenses over the life of the mine as technically estimated. Cost of stripping is charged on technically evaluated average stripping ratio at each mine with due adjustment for stripping activity asset and ratio-variance account after the mines are brought to revenue. Net of the balances of stripping activity asset and ratio variance at the Balance Sheet date is shown as 'Stripping activity adjustment' under the head 'Non-current assets/Non-current provisions' as the case may be, and adjusted as provided in the CERC Tariff Regulations. Accordingly, a provision amounting to ' 611.88 crore (31 March 2022: ' 311.98 crore) has since been provided for. (Refer Significant accounting policy C.6.1)

v)    In respect of provision for cases under litigation, outflow of economic benefits is dependent upon the final outcome of such cases.

vi)    In all these cases, outflow of economic benefits is expected within next one year.

vii)    Sensitivity of estimates on provisions:

The assumptions made for provisions relating to current period are consistent with those in the earlier years. The assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood could alter

in next financial year. It is impracticable for the Company to compute the possible effect of changes in assumptions and estimates used in recognizing these provisions.

viii) Contingent liabilities and contingent assets

Disclosure with respect to claims against the Company not acknowledged as debts and contingent assets are made in Note 76.

64.    Disclosure as per Ind AS 38 'Intangible Assets'

Research expenditure recognised as expense in the Statement of Profit and Loss during the year is ' 233.48 crore (31 March 2022: ' 195.82 crore).

65.    Disclosure as per Ind AS 103, Merger of Nabinagar Power Generating Company Limited (NPGCL) and Kanti Bijlee Utpadan Nigam Limited (KBUNL) with NTPC Limited, (the “Company")

Ministry of Corporate Affairs (MCA) vide its order dated 29 July 2022 approved the Scheme of Amalgamation of Nabinagar Power Generating Company Limited (NPGCL) and Kanti Bijlee Utpadan Nigam Limited (KBUNL), wholly owned subsidiaries of NTPC Limited into NTPC Limited, w.e.f. 1 April 2022 being the appointed date. Accordingly, the assets and liabilities of the transferor companies shall vest with transferee company from the appointed date. The transferor companies were dissolved without winding up on the effective date of 26 August 2022.

Being a common control acquisition, the accounting has been done considering the provisions of Appendix C to lnd AS 103 "Business Combination" as per pooling of interest method under which assets and liabilities of the combining entities are reflected at the carrying amounts and no adjustments are made to reflect fair values, or recognize any new assets or liabilities. Further, restatement of previous year figures shall be done as if the business combination had occurred from the beginning of preceding period in compliance with the above. Accordingly, the figures in the balance sheet for the year ended 31 March 2022 have beed restated as if business combination had occurred from 01 April 2021.

Accordingly the merger has resulted in transfer of assets & liabilities at the following summarized values:

a) The Company along-with some public sector undertakings had entered into Production Sharing Contracts (PSCs) with GOI for three oil exploration blocks namely KG-OSN-2009/1, KG-OSN-2009/4 and AN-DWN-2009/13 under VIII round of New Exploration Licensing Policy (NELP VIII) with 10% participating interest (PI) in each of the blocks.

In the case of Block AN-DWN-2009/13 and KG-OSN-2009/1, Oil and Natural Gas Corporation Ltd. (ONGC) was the operator and the Company along-with the consortium partners have relinquished both the blocks to Directorate General of Hydrocarbons (DGH).

For the year ended 31 March 2023 and 31 March 2022, there are no income / expense and operating/investing cash flow from exploration activities.

For exploration activities in block KG-OSN-2009/4 DGH has agreed for drilling of one well and have instructed to carry out airborne Full Tensor Gravity Gradiometer (FTG) survey in conditionally & partial cleared area. ONGC has completed drilling of one well. Airborne Full Tensor Gravity Gradiometer (FTG) survey work is also completed. The Company along-with the consortium partners has decided to relinquish the block and Oil and Natural Gas Corporation Ltd. (ONGC), the operator, has submitted an application to Directorate General of Hydrocarbons (DGH) in this regard, in the earlier years.

b) Exploration activities in the block AA-ONN-2003/2 were abandoned in January 2011 due to unforeseen geological conditions and withdrawal of the operator. Attempts to reconstitute the consortium to accomplish the residual exploratory activities did not yield result. In the meanwhile, Ministry of Petroleum & Natural Gas, GoI demanded in January 2011 the cost of unfinished minimum work programme from the consortium with NTPC's share being USD 7.516 million. During the year, provision in this respect has been updated to ' 90.79 crore from ' 111.96 crore along-with interest. The Company has sought waiver of the claim citing force majeure conditions at site leading to discontinuation of exploratory activities.

Provision of ' 8.96 crore as at 31 March 2023 (31 March 2022: ' 8.26 crore) has been made towards the assets under exploration and estimated obsolescence in the inventory. Further, a provision of ' 0.23 crore (31 March 2022: ' 13.42 crore) has been made towards NTPC's share as per arbitration decision given in favor of a contractor of the block. Aginst this, an amount of ' 13.65 crore has been deposited in honourable Delhi high court during the year. NTPC filed a writ petition under section 34 in this matter before Hon'ble Delhi High Court which is yet to be disposed.

For the year ended 31 March 2023 and 31 March 2022, there are no income and operating/investing cash flow from exploration activities. The value of assets reported above is based on statement received from the operator in the earlier years.

c) The Company had entered into production sharing contracts (PSC) with GOI for exploration block namely CB-ONN-2009/5 VIII round of New Exploration Licensing Policy (NELP VIII) with 100% participating interest (PI) in the block.

MWP for the block has been completed. No oil or gas of commercial value was observed in any of the wells. Accordingly, the block has been relinquished to DGH, GOI.

Provision of ' 6.07 crore as at 31 March 2023 (31 March 2022: ' 6.07 crore) has been made towards estimated obsolescence in the inventory.

For the year ended 31 March 2023 and 31 March 2022, there are no income, expenses, operating and investing cash flows from exploration activities.

d (i) The Company has started coal production from four mines i.e Pakri-Barwadih, Dulanga, Talaipalli & Chatti-Bariatu. Pakri Barwadih was declared commercial w.e.f. 1 April 2019 and about 13.23 MMT coal was extracted during the current year. Dulanga was declared commercial w.e.f. 1 October 2020 and 7.00 MMT coal was extracted during the current year. All other mines are under development stage. In Talaipalli about 2.40 MMT coal was extracted during the year 2022-23. Coal production has started from Chatti-Bariatu since Sep.2022 and about 0.58 MMT coal was extracted during the current year. At Kerandari, coal mine extraction has already started since 5th Apr.2023 and at Chatti-Bariatu coal mining projects land acquisition and other mine development activities are in progress and these are also disclosed in Note 3 - Capital work in progress under 'Development of coal mines'. Due to delay in achievement of required condtions, the Talaipally coal mines is expected to be declared commercial in the year 2023-24.

d (ii) a) Exploration and evaluation activities are taking place at under ground mine area/dip side area (North west quarry) of PB block. An amount of ' 64.20 crore has since been incurred at this area towards various exploratory activities and has been transferred to development of coal mines and capitalised during the year upon completion.

d (iii)a)(i) Banai & Bhalumuda

Due to geo-mining constraints and other related issues NTPC surrendered these blocks to MoC on 26.12.2020. The Company expects that whenever these two coal blocks are allotted to any other company, the cost incurred towards exploration and GR at these mines would be reimbursed from the new allocatee through MOC as per past experience of the Company. Keeping in view the above, an amount of ' 124.00 crore (31 March 2022: ' 124.00 crore) has been accounted as recoverable and included under Note-19- 'Current assets - Other financial assets'.

a)(ii) Mandakini

Since mine development activities could not be proceeded due to various issues, the Company has approached Ministry of Coal on 26 December 2020 for surrendering these blocks, with a request for consideration of reimbursement of expenses incurred by the Company. The Company expects that whenever these two coal blocks are allotted to any other company, the cost incurred towards exploration and GR would be reimbursed from the new allocatee through MOC as per past experience of the Company. Keeping in view the above, an amount of ' 56.47 crore ( 31 March 2022: ' 53.93 crore) has been accounted as recoverable and included under Note-19 'Current assets -Other financial assets'.

MoC has encashed the BG (Performance Security) of ' 168.00 crore on 22 March 2021 citing delay in achieving of the milestones of efficiency parameters which were beyond the control of the Company. The Company approached MoP to take up the matter in Alternate Mechanism for Resolution of CPSE Disputes (AMRCD). Pending resolution of the dispute through AMRCD, the amount of BG encashed by MOC has been disclosed as recoverable from MOC under 'Claims recoverable' in Note-19-'Current assets-Other financial assets'. This issue is regularly being taken up with MoC by the Company and MoP for early settlement.

a) (iii) The Coal Block Development and Production Agreement (CBDPA) signed by the Company with MOC is silent about the recoverability of expenditure incurred in case of termination of the CBDPA. Moreover, the fresh auction / allocation of mines by MOC may also take substantial time and is dependent upon the coal demand-supply scenario of the country in the days to come. Considering the uncertainty involved on the recoverability of the amounts in respect of Banai, Bhalamuda and Mandakini-B coal blocks , the amount disclosed as claims recoverable has since been fully provided for. Further, the balance expenditure incurred at these blocks which may not be recovered has also been provided for fully (Refer Note 6- 'Non-current assets - Intangible assets under development').

b) Badam

In the year 2018-19, the Company took over Barauni Thermal Power Station from Bihar State Power Generation Company Limited (BSPGCL). Ministry of Coal, Government of India has transferred Badam coal mine, the linked coal mine of Barauni TPS. Environment Clearance for the project is available. Stage-I Forest Clearance was transferred to the Company from BSPGCL on 14 January 2020. Application for Stage-II forest clearance is under process with MOEF&CC. Mining lease is pending with Govt. of Jharkhand and tendering process for appointment of MDO is in progress. A cumulative expenditure of ' 85.13 crore (31 March 2022: '74.66 crore) has been incurred at this coal block.

For the year ended 31 March 2023 and 31 March 2022, there are no income, expenses and operating cash flows from coal exploration activities. Cash flows from investing activities for the year ended 31 March 2023 is ' (50.47) crore (31 March 2022: ' 28.06 crore)

67. Disclosure as per Ind AS 108 'Operating Segments'

A. General Information

The Company has two reportable segments, as described below, which are the Company's strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker (CODM) reviews internal management reports on at least a quarterly basis.

The following summary describes the operations in each of the Company's reportable segments:

Generation of energy : Generation and sale of bulk power to State Power Utilities.

Others : It includes providing consultancy, project management and supervision, energy trading, oil and gas exploration and coal mining.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Company's Board. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

68. Financial Risk Management

The Company's principal financial liabilities comprise loans and borrowings in foreign as well as domestic currency, trade payables and other payables. 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, and cash and short-term deposits that derive directly from its operations. The Company also holds equity investments and enter into derivative contracts such as forward contracts, options and swaps. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

The Company is exposed to the following risks from its use of financial instruments:

Risk management framework

The Company's activities make it susceptible to various risks. The Company has taken adequate measures to address such concerns by developing adequate systems and practices.

In order to institutionalize the risk management in the Company, an elaborate Enterprise Risk Management (ERM) framework has been developed. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. As a part of the implementation of ERM framework, a 'Risk Management Committee (RMC)' with functional directors as its members has been entrusted with the responsibility to identify and review the risks, formulate action plans and strategies to mitigate risks on short-term as well as long-term basis.

The RMC meets every quarter to deliberate on strategies. Risks are regularly monitored through reporting of key performance indicators. Outcomes of RMC are submitted for information of the Board of Directors.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, unbilled revenue, loans, cash and cash equivalents and deposits with banks and financial institutions.

Trade receivables & unbilled revenue

The Company primarily sells electricity to bulk customers comprising mainly state utilities owned by State Governments. The Company has a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). The TPAs were signed among the Govt. of India, RBI and the individual State Governments subsequent to the issuance of the One Time Settlement Scheme of SEBs dues during 2001-02 by the GOI, which were valid till October 2016. Govt of India subsequently approved the extension of these TPAs for another period of 10 years. Most of the States have signed these extended TPAs and signing is in progress for the balance states.

CERC Tariff Regulations allow payment against monthly bill towards energy charges within a period of forty five days from the date of bill and levy of surcharge @ 18% p.a. on delayed payment beyond forty five days. GOI has notified Electricity (Late Payment Surcharge) Rules, 2021 on 22 February 2021.These rules envisage that base rate of LPSC to be considered as SBI one year MCLR, as on 1 April of the financial year, plus five percent. The rate of LPSC shall be increased by 0.5 percent for every month of delay, provided that the LPSC shall not be more than 3 percent higher than the base rate at any time.

A default occurs when in the view of management there is no significant possibility of recovery of receivables after considering all available options for recovery.

As per the provisions of the TPA, the customers are required to establish LC covering 105% of the average monthly billing of the Company for last 12 months. The TPA also provided that if there is any default in payment of current dues by any State Utility, the outstanding dues can be deducted from the State's RBI account and paid to the concerned CPSU. There is also provision of regulation of power by the Company in case of non payment of dues and non-establishment of LC.

These payment security mechanisms have served the Company well over the years. The Company has not experienced any significant impairment losses in respect of trade receivables in the past years. Since the Company has its power stations as well as customers spread over various states of India, geographically there is no concentration of credit risk.

Unbilled revenue primarily relates to the Company's right to consideration for sale effected but not billed at the reporting date and have substantially the same risk characteristics as the trade receivables for the same type of contracts.

Investments

The Company limits its exposure to credit risk by investing in only Government of India Securities, State Government Securities and other counterparties have a high credit rating. The management actively monitors the interest rate and maturity period of these investments. The Company does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Loans

The Company has given loans to employees, subsidiary companies, joint venture companies and other parties. Loans to the employee are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company. The loan provided to group companies are collectible in full and risk of default is negligible. Loan to APIIC is against a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

Cash and cash equivalents

The Company held cash and cash equivalents of ' 3.13 crore (31 March 2022: ' 117.48 crore). The cash and cash equivalents are held with banks with high rating.

Balances with banks and financial institutions, other than cash and cash equivalents

The Company held balances with banks and financial institutions, including earmarked balances, of ' 3,738.60 crore (31 March 2022: ' 2,629.70 crore). In order to manage the risk, Company places deposits with only high rated banks/ institutions.

(ii)    Provision for expected credit losses

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

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.

(b)    Financial assets for which loss allowance is measured using life-time expected credit losses as per simplified approach

The Company has customers (State government utilities) with capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in respect of trade receivables and unbilled revenue.

(iii)    Ageing analysis of trade receivables

Refer Note 15(d)

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has an appropriate liquidity risk management framework for the management of short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company's Treasury department is responsible for managing the short-term and long-term liquidity requirements of the Company. Short-term liquidity situation is reviewed daily by the Treasury department. The Board of directors has established policies to manage liquidity risk and the Company's Treasury department operates in line with such policies. Any breaches of these policies are reported to the Board of Directors. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a month, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

As part of the CERC Regulations, tariff inter-alia includes recovery of capital cost. The tariff regulations also provide for recovery of energy charges, operations and maintenance expenses and interest on normative working capital requirements. Since billing to the customers are generally on a monthly basis, the Company maintains sufficient liquidity to service financial obligations and to meet its operational requirements.

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. All such transactions are carried out within the guidelines set by the risk management committee.

Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other than entity's functional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates.

Embedded derivatives

Certain contracts of the Company for construction of power plants with vendors awarded through International Competitive Bidding are denominated in a third currency i.e. a currency which is not the functional currency of any of the parties to the contract. The Company has awarded the above contracts without any intention to enter into any derivative contract or to leverage/ take position and without any option/intention to net settle at any point of time during the tenure of the contract. The Company has not separately recognised the foreign currency embedded derivative and has not designated the entire hybrid contract at fair value through profit or loss considering the same as not practicable and absence of a reliable valuation model. Interest rate risk

The Company is exposed to interest rate risk arising mainly from non-current borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (e.g. fixed rate loans, floating rate loans, rupee term loans, foreign currency loans, etc.).

The carrying amounts of current trade receivables, current trade payables, payable for capital expenditure, investment in subsidiary and joint venture companies, cash and cash equivalents and other financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The carrying values for finance lease receivables approximates the fair value as these are periodically evaluated based on credit worthiness of customer and allowance for estimated losses is recorded based on this evaluation. Also, carrying amount of claims recoverable approximates its fair value as these are recoverable immediately.

The fair values for loans, borrowings, non-current trade payables and payable for capital expenditure were calculated based on cash flows discounted using a current discount rate. They are classified at respective levels based on availability of quoted prices and inclusion of observable/non observable inputs.

70. Capital Management

The Company's objectives when managing capital are to:

-    safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

-    maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as returns from operating activities divided by total shareholders' equity deployed in operating activities. The Board of Directors also monitors the level of dividends to equity shareholders in line with the dividend distribution policy of the Company.

Under the terms of major borrowing facilities, the Company is required to comply with the following financial covenants:

(i)    Total liability to networth ranges between 2:1 to 3:1.

(ii)    Ratio of EBITDA to interest expense shall not at any time be less than 1.75 : 1.

(iii)    Debt service coverage ratio not less than 1.10:1 (in case of foreign currency borrowings).

There have been no breaches in the financial covenants of any interest bearing borrowings.

The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.

The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of noncurrent borrowings (including current maturities and interest accrued there on) and current borrowings less cash and cash equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of the reporting period was as follows:

(i)    Nature of rate regulated activities

The Company is mainly engaged in generation and sale of electricity. The price to be charged by the Company for electricity sold to its beneficiaries is determined by the CERC which provides extensive guidance on the principles and methodologies for determination of the tariff for the purpose of sale of electricity. The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return.

This form of rate regulation is known as cost-of-service regulations which provide the Company to recover its costs of providing the goods or services plus a fair return.

(ii)    Recognition and measurement

(a)    As per the CERC Tariff Regulations, any gain or loss on account of exchange risk variation during the construction period shall form part of the capital cost till the declaration of Commercial Operation Date (COD) to be considered for calculation of tariff. The CERC during the past period in tariff orders for various stations has allowed exchange differences incurred during the construction period in the capital cost. Accordingly, exchange differences arising during the construction period is within the scope of Ind AS 114.

Further, any loss or gain on account of exchange differences towards interest payment and loan repayment in respect of the foreign currency loans taken for construction of projects shall be recoverable from/payable to beneficiaries on actual payment basis, as per the said Regulations. Accordingly, such exchange differences are also within the scope of Ind AS 114.

In view of the above, exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as 'Regulatory deferral account debit/credit balance' by credit/debit to 'Net Movements in Regulatory deferral account balances' and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries. Accordingly, an amount of ' 960.93 crore for the year ended as at 31 March 2023 has been accounted for as 'Regulatory deferral account debit balance' (31 March 2022: (-) ' 730.39 crore accounted as 'Regulatory deferral account debit balance'.). Further, an amount of ' 52.01 crore (31 March 2022: ' 35.82 crore) has been realized/recognized during the year.

(b)    Revision of pay scales of employees of PSEs w.e.f. 1 January 2017 has been implemented based on the guidelines issued by Department of Public Enterprises (DPE). The guidelines provide payment of superannuation benefits @ 30% of basic + DA to be provided to the employees of CPSEs which includes gratuity at the enhanced ceiling of ' 0.20 crore from the existing ceiling of ' 0.10 crore. As per Proviso 8(3) of Terms and Conditions of Tariff Regulations 2014 applicable for the period 2014-19, truing up exercise in respect of Change in Law or compliance of existing law will be taken up by CERC. The increase in gratuity limit from ' 0.10 crore to ' 0.20 crore falls under the category of 'Change in law' and a regulatory asset has been created. The Payment of Gratuity Act, 1972 has since been amended and the ceiling has been increased to ' 0.20 crore.

Considering the methodology followed by the CERC for allowing impact of the previous pay revision, various tariff orders issued by the CERC under Regulations, 2014 and the above-mentioned provision related to the change in law of CERC Tariff Regulations, 2014, a regulatory asset has been created upto 31 March 2019 (Regulatory deferral account debit balance) towards the increase in O&M expenditure due to the pay revision. This was taken up with CERC through

truing up tariff petition. CERC has been allowing the same progressively and during the year, the expenditure has been allowed in respect of few stations and accordingly an amount of ' 94.56 (31 March 2022: ' 127.02) has been adjusted and an amount of ' 0.49 crore (31 March 2022: ' 359.58 crore) has been reversed. Balance orders are expected in the coming years.

(c)    CERC Regulations provide that deferred tax liability upto 31 March 2009 shall be recovered from the beneficiaries as and when the same gets materialized. Further, for the period commencing from 1 April 2014, CERC Tariff Regulations provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. The Company has recognised a regulatory deferral account debit balance for such deferred tax liabilities (net) in the financial statements. Regulatory deferral account debit balance for deferred tax liability for the period commencing from 1 April 2014 will be reversed in future years when the related deferred tax liability forms part of current tax. Accordingly, an amount of ' 1,650.50 crore (31 March 2022: ' 1,639.68 crore) for the year ended 31 March 2023 has been accounted for as 'Regulatory deferral account debit balance'.

(d)    The petition filed by the Company before CERC for reimbursement of the expenditure on transportation of ash, was favourably considered by CERC vide order dated 5 November 2018 and it was allowed to reimburse the actual additional expenditure incurred towards transportation of ash in terms of MOEF notification under change in law, as additional O&M expenses, w.e.f. 25 January 2016 subject to prudence check. Keeping in view the above, regulatory asset was created towards ash transportation expenses in respect of stations where there was shortfall in revenue from sale of ash over and above ash transportation expenses till 2021-22. During the year, CERC vide order dated 28.10.2022 has allowed provisional monthly billing of Ash transportation expenditure from 1 April 2022 onwards and reimbursement of expenditure already incurred from 1 April 2019 till 31 March 2022. Accordingly, an amount of ' 3,090.42 crore has been adjusted with revenue from operations pertaining to the period from 1 April 2019. Further, an amount of ' 90.18 crore has been adjusted/realised based on orders received from CERC during the year relating to period prior to 1 April 2019. Balance amount of ' 73.11 crore shall be reversed / adjusted upon receipt of tariff orders / true-up orders from CERC.

V.    Transaction price allocated to the remaining performance obligations

Performance obligations related to sale of energy:

Revenue from sale of energy is accounted for based on tariff rates approved by the CERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations, where the tariff rates are yet to be approved/items indicated provisional by the CERC in their orders, provisional rates are adopted considering the applicable CERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the beneficiary and is measured through a regular review of usage meters. Beneficiaries are billed on a periodic and regular basis. Therefore, transaction price to be allocated to remaining performance obligations cannot be determined reliably for the entire duration of the contract.

Performance obligations related to other contracts:

For rest of the contracts, transaction price for remaining performance obligations amounts to ' 1,082.32 crore (31 March 2022: ' 1,037.51 crore) which shall be received over the contract period in proportion of the work performed/services provided by the Company.

VI.    Practical expedients applied as per Ind AS 115:

a.    The company has not disclosed information about remaining performance obligations that have original expected duration of one year or less and where the revenue recognised corresponds directly with the value to the customer of the entity's performance completed to date.

b.    The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company has not adjusted any of the transaction prices for the time value of money. The impact of subsequent modifications are duly recognized in the Statement of profit and loss.

VII.    The Company has not incurred any incremental costs of obtaining contracts with a customer and therefore, not recognised an asset for such costs.

73. Disclosure as per Ind AS 116 'Leases'

(A) Company as Lessee

(i) The Company's significant leasing arrangements are in respect of the following assets:

(a)    Premises for residential use of employees, offices and guest houses/ transit camps on lease which are not noncancellable and are usually renewable on mutually agreeable terms. The company generally incurs amount on improvements which are significant to the respective lease and hence the cancellable period of the lease during which the company intends to continue considering the past experience / practice, is considered for the purpose of determining the lease period.

(b)    The Company has taken electrical vehicles on operating lease for a period of six years, which can be further extended at mutually agreed terms. Lease rentals are subject to escalation of 10% per annum.

(c)    A helicopter on wet lease basis.

(d)    The Company has taken certain vehicles (other than electrical) on lease for a period of four years, which can be further extended at mutually agreed terms. There are no escalations in the lease rentals as per terms of the agreement. However, the Company has purchase option for such vehicles at the end of the lease term.

(e)    The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years after which it was to be transferred to the Company at ? 1/-. Refer Note no. 63 (iii) (b).

(f)    The Company acquires land on leasehold basis for a period generally ranging from 25 years to 99 years from the government authorities which can be renewed further based on mutually agreed terms and conditions. The leases are non cancellable. These leases are capitalised at the present value of the total minimum lease payments to be paid over the lease term. Future lease rentals are recognised as 'Lease obligations' at their present values. The Right-of-use land is amortised considering the significant accounting policies of the Company.

e)    The Company has commitments of ' 2,931.63 crore (31 March 2022: ' 7,420.27 crore) towards further investment in the subsidiary companies as at 31 March 2023.

f)    The Company has commitments of ' 1,143.96 crore (31 March 2022: ' 2,369.13 crore) towards further investment in the joint venture entities as at 31 March 2023.

g)    The Company has commitments of bank guarantee of 0.50% of total contract price to be undertaken by NTPC-BHEL Power Projects Private Ltd. (a joint venture company) to a cumulative amount of ' 75.00 crore (31 March 2022: ' 75.00 crore).

h)    The Company has agreed to provide unconditional and irrevocable financial support to NTPC GE Power Services Ltd. (a joint venture company) for meeting financial qualifying requirement for execution of Flue Gas De-sulfurisation (FGD) projects in India. Such support shall be provided by way of Letter of Undertaking to a cumulative exposure up to the award value of the contract(s) not exceeding ' 600.00 Crore and cumulative exposure of the Company, in proportion to shareholding, would not exceed ' 300.00 crore (31 March 2022: ' 300.00 crore).

i)    The Company has provided corporate guarantee for an amount of ' 237.60 crore (31 March 2022: ' 237.60 crore) for Patratu Vidyut Utpadan Nigam Ltd. (PVUNL) (a subsidiary company) in favor of Axis Bank for sanction of bank guarantee issued to Ministry of Coal for performance security against the milestones of Banhardih coal mine development of PVUNL.

j)    The Company has agreed to provide borrowing support to NTPC Renewable Energy Limited (an esrtwhile subsidiary/ currently subsidiary of NTPC Green Energy Limited which is a wholly owned subsidiary of the Company) upto ' 6,000 crore (31 March 2022: ' 6,000 crore) in the form of long term / short term loan, bank guarantee, corporate guarantee / comfort letter to banks, etc., in case it is required by NTPC Renewable Energy Limited.

k)    The Company has agreed to provide sponsor undertaking to lenders for additional term loan upto ' 1,908.38 crore (31 March 2022: ' 1,908.38 crore) for implementation of various projects of Hindustan Urvarak and Rasayan Limited, a Joint Venture Company.

l)    Company's commitment towards the minimum work programme in respect of oil exploration activities of joint operations has been disclosed in Note 66.

m)    Company's commitment in respect of lease agreements has been disclosed in Note 73.

xvi)    The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

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