(B) As per the Framework Agreement (‘the Agreement’) dated 18th April, 2019 and agreements with banks post issuance of RBI circular for resolution of stressed assets part of loans amount outstanding of lenders (Bank & FI) of Rs. 384,005 lakhs converted into Preference Share Capital (including redeemable preference shares of Rs. 3,452 lakhs) during earlier year. In the year 2022-23, out of redeemable preference shares, shares of Rs. 2.5 crore issued to a Bank (a lender) also redeemed on 29.03.2023 as per the terms of agreement with a lender ( a nationalised bank) (previous year redeemable preference shares of Rs. 2.5 crore redeemed).

Further, as envisaged in the above Agreement loan amount outstanding of JSW Energy Limited and FCCB having of Rs. 35,177 lakhs and Rs. 59,121 lakhs converted into Equity Share Capital in the Jan’2020. Company believes that above redemption of Redeemable Preference Shares ( as stated above) post issue of equity under the stated circumstances and also as per the opinion of an expert, is in compliance of the Provisions of Section 55 of the Companies Act,2013.

Note 19.2 - The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital

(i) Equity Share Capital

The Company has issued only one class of equity shares having a par value of Rs. 10/- per share which rank pari-passu in all respects including voting rights and entitlement to dividend.

In the event of liquidation, each share carry equal rights and will be entitled to receive equal amount per share out of the remaining amount available with the Company after making preferential payments.

(ii) Preference Share Capital

The Authorised Share Capital provides for Preference Shares at a par value of Rs. 10/- , Rs. 100/-, Rs. 1,000/-, Rs. 1,00,000/- and Rs. 10,00,000/-.

(A) 125 nos. (previous year 150 nos.) 9.5% Cumulative Redeemable Preference Shares Face Value Rs. 10,00,000/- each

(i) These CRPS shall carry dividend @ 9.5% per annum (cumulative).The CRPS shall be non-participating in surplus and in surplus assets and profit, on winding up which may remain after the entire capital has been repaid. The CRPS shall carry a preferential vis-a-vis equity shares with respect to payment of dividend or repayment of capital. The CRPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013. The CRPS shall be redeemed by the Company at par in nine equal annual installments of Rs. 250 Lakhs started from 26th March, 2020 and last installment of redemption will be on or before 26th March, 2028, (ii) On account of the carried forward losses no dividend on these CRPS have been provided for in financial statements.

(B) 1,202 nos. 9.5% Cumulative Redeemable Preference Shares Face Value Rs. 1,00,000/- each

(i) These CRPS shall carry dividend @ 9.5% per annum (cumulative). The CRPS shall be non-participating in surplus and in surplus assets and profit, on winding up which may remain after the entire capital has been repaid. The CRPS shall carry a preferential vis-a-vis equity shares with respect to payment of dividend or repayment of capital. The CRPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013. The CRPS shall be redeemed as per the provision of the Bilateral Agreement dated 18th April, 2019 (between Company and Canara Bank ) subject to the provisions of the Companies act, 2013 and any other applicable law for the time being in force,(ii) Scheduled date of redemption (subject to bilateral agreement) :16th December, 2048, (iii) On account of the carried forward losses no dividend on these CRPS have been provided for in financial statements.

(C) 63 and 38,049 nos. 0.01% Cumulative Compulsory Convertible Preference Shares(CCPS) Face Value Rs. 1,00,000/- and 10,00,000/- each respectively

(i) These CCPS carry cumulative dividend @ 0.01% per annum. The CCPS shall be non-participating in surplus and in surplus assets and profit, on winding up which may remain after the entire capital has been repaid. The CCPS shall carry a preferential vis-a-vis equity shares with respect to payment of dividend or repayment of capital. The CCPS shall have a voting right as per the provision of section 47(2) of the Companies Act, 2013.

(ii) The CCPS shall be Converted into such number of Equity Shares as may be determined at the time of conversion as per prevailing provision of Companies Act/SEBI/ RBI Rules and Regulations and Such equity shares so converted shall be listed on the stock exchanges where existing equity shares are listed and shall rank pari passu.

(iii) The CCPS shall have a maturity period of 29 years from the date of allotment and have right to be converted, at the option of CCPS holders after 20 years or earlier, as per the provision of the Companies act, 2013/SEBI Guidelines as prevailing at that time in to equity shares of the Company.

(iv) On account of the carried forward losses no dividend on these have been provided for in financial statements.

(D) By virtue of provision of Section 47 of the Companies Act, 2013, all the preference shares have become participative in general meetings and have attained the voting rights equivalent to all equity shareholders on all resolutions put before the shareholders [no dividend been declared/paid two years hence all preference share holders has such rights.]

Note 19.3 - Equity Shares in respect of each class in the Company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate

164,48,30,118 Equity shares are held by Jaiprakash Associates Limited (entity to whom Company is an associate), which has ceased to be holding company w.e.f. 18.02.2017 consequent upon conversion of debt into equity under the scheme of SDR.

Note 19.4(A) - Equity Shares in the Company held by each shareholder holding more than 5 percent shares specifying the number of shares held

Note No. 19.5 - Equity shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments, including terms and amounts

The Company had signed a ‘Framework Agreement’ (the Agreement) dated 18th April 2019 with the Banks and Financial Institutions for restructuring of the outstanding Loans (in respect of its units JNSTPP JBTPP VHEP JNCGU including Corporate Loans) & interest accrued thereon as of 31st July 2018 with the revised terms & conditions. In terms of ‘the Agreement’ and as agreed upon, the Company had allotted Fully paid 0.01% Cumulative Compulsory Convertible Preference Shares (CCPS) for an aggregate amount of Rs.3,80,553 lakhs on 23.12.2019, to its lenders on private placement basis.

No equity shares have been reserved for issue under options and contracts / commitments for the sale of shares / disinvestments other than mentioned above.

Note 19.6 - Aggregate number and class of equity shares allotted as fully paid up pursuant to contract without payment being received in cash, allotment by way of bonus shares or shares bought back in preceding five years: NIL

Note 19.7 - Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion [refer note no. 19.2(ii)(i)] in descending order starting from the farthest such date

(iii) First charge on 400 MW Vishnuprayag HEP’s all intangible assets, hypothecation of all the movable assets, assignment of Project Agreements and Escrow Agreement, all present and future rights, titles, interests, benefits, claims and demands whatsoever with respect to the Insurance Policies, claims and benefits to all monies receivable there under and all other claims there under in respect of all the insured assets of the Plant ;

(iv) First ranking equitable mortgage on all rights, titles, interests and benefits in respect of immovable properties and assets of the 400 MW Vishnuprayag HEP ;

(v) Pledge of 6,291 Lakhs (Previous Year - 6,291 Lakhs) equity shares of the Company held by Jaiprakash Associates Ltd. (JAL) the party to whom the company is associate, on pari-passu basis with lenders of Nigrie Super Thermal Power Plant (except for term loan of Rs. 50,000 Lakhs (Previous Year - Rs.50,000 Lakhs) disbursed by State Bank of India); and

Repayments :

21.1(b) Rupee term loan outstanding Rs.55,332 Lakhs (Previous year Rs..58,129 Lakhs) are repayable in 35 structured quarterly installments, as detailed as % age of principal outstanding as on 31st March, 2023 ; 11.24 % in FY 2023-24, 10.81% in FY 2024-25, 11.65 % in FY 202526,11.70% in FY 2026-27,12.95% in FY 2027-28 and balance 41.65% from FY 2029 to 2032.

21.2 500 MW Jaypee Bina Thermal Power Plant:

21.2(a) Rupee Term Loans outstanding (after conversion of Debt into Equity under SDR scheme in earlier years) of Rs.1,09,169 Lakhs (Previous Year Rs.1,15,016 Lakhs) outstanding out of sanctioned amount of Rs. 2,25,800 Lakhs (original Rs.1,92,800 Lakhs and additional Rs.33,000 Lakhs) from consortium of Banks, together with all interest, guarantee commission, cost, expenses and other charges are secured ranking pari-passu among all the participating Banks viz. Punjab National Bank, Union Bank of India, Allahabad Bank (merged with Indian Bank), Canara Bank, Central Bank of India, State Bank of India, IDBI Bank Ltd., ICICI Bank Ltd. and The Jammu and Kashmir Bank Ltd., are secured by ;

(i) First ranking pari-passu mortgage and hypothecation of all immovable and movables assets both present and future, all intangible assets, and all revenues and receivables pertaining to Jaypee Bina Thermal Power Plant and

(ii) First ranking pari-passu charge on, assignment of Project Agreements, Trust & Retention account. Debt & Service Reserve Account and Escrow Agreement, all present and future rights, titles, interests, benefits, claims and demands whatsoever with respect to the Insurance Contracts/ loss proceeds, claims and benefits to all monies receivable there under and all other claims there under in respect of all the insured assets of the Plant ;

(iii) Pledge of 648 Lakhs equity shares (Previous Year 648 Lakhs equity shares) of the Company held by JAL, the party to whom the company is associate , on pari passu basis among the lenders of JBTPP.

Repayments :

21.2(b) Rupee term loan outstanding Rs. 1,09,169 Lakhs (Previous year Rs.1,15,016 Lakhs) are repayable in 41 structured quarterly installments, as detailed as % age of principal outstanding as on 31st March, 2023 ; 8.98 % in FY 2023-24, 8.98 % in FY 2024-25, 9.66% in FY 2025-26, 9.71% in FY 2026-27,10.74% in FY 2027-28 and balance 51.93% from FY 2029 to 2034.

21.2(c) The aforesaid security ranks pari-passu with working capital lenders (i.e. IDBI Bank Limited, State Bank of India and Jammu & Kashmir Bank Ltd.) having outstanding balance (fund based) of Rs. 14,116 Lakhs (Previous Year - Rs. 14,464 Lakhs). Bank Guarantees/ LCs outstanding of Rs.1,663 Lakhs (Previous Year - Rs.1,748Lakhs) (margin money of Rs. 627 Lakhs against Bank Guarantees/ LCs outstanding) (previous year Rs.1,228 Lakhs)

21.3 1320 MW Jaypee Nigrie Super Thermal Power Plant:

21.3(a) Rupee Term Loans (after conversion of part of Debt into Equity under SDR scheme and conversion of part of Debt into CCPS & CRPS under restructuring as per Framework Agreement in earlier years) outstanding of Rs. 1,88,336 Lakhs (Previous Year 1,95,099 Lakhs) out of sanctioned amount of Rs. 7,31,500 Lakhs and out of short term financial assistance sanctioned amount of Rs, 4,600 Lakhs from consortium Banks and of Financial Institutions, together with all interest, guarantee commission, cost, expenses and other charges are secured ranking pari-passu among all the participating Banks and financial Institutions viz. Punjab National Bank (PNB), Canara Bank, Central Bank of India, Oriental Bank of Commerce (merged with PNB), Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Syndicate Bank (merged with Canara Bank) , UCO Bank, United Bank of India (merged with PNB), State Bank of India, Corporation Bank (merged with Union Bank of India) , IDBI Bank Ltd., ICICI Bank Ltd., Edelweiss Assets Reconstruction Company Limited and LIC of India, are secured by way of :

(i) First ranking pari-passu mortgage and hypothecation of all immovable and movables assets both present and future, all intangible assets, and all revenues and receivables pertaining to the Jaypee Nigrie Super Thermal Power Plant ;

(ii) First ranking pari-passu charge on, assignment of Project Agreements, Trust & Retention account., all present and future rights, titles, interests, benefits, claims and demands whatsoever with respect to the Insurance Contracts, claims and benefits to all monies receivable there under and all other claims there under in respect of all the insured assets of the Plant;

(iii) Pledge of 6,291 Lakhs equity shares (Previous Year - 6,291 Lakhs equity shares) of the Company held by JAL, the party to whom the company is associate, on pari-passu basis with lenders of Jaypee Vishnuprayag HEP and

(iv) Letter of Comfort from Jaiprakash Associates Limited, the party to whom the company is associate, for the additional loan of Rs.1,64,500 Lakhs (Previous Year- Rs.1,64,500 Lakhs) Outstanding Rs. 98,705 Lakhs (Previous Year Outstanding Rs.98,705 Lakhs) {pre-restructuring balance merged with loan mentioned above in note no. 21.3(a)} in addition to above securities.

(v) There is a vacant land parcel admeasuring 64.741 Ha. which was acquired for the purpose of submergence as and when barrage level went up at Nigrie TPP on which security was to be created in favour of Lenders. However the same could not be created, as NOC from Govt. of Madhya Pradesh (GoMP) is yet to be received. In order to give requisite comfort to the lenders, a valuation exercise was conducted and as per valuation report, the fair market value of the said land is Rs. 453 Lakhs (previous year Rs. 453 Lakhs). Accordingly in lieu of Creation of Security in favour of the lenders, JPVL has provided cash collateral of INR 453 Lakhs in the form of FD and ICICI Bank has kept lien mark over the said FD. Further JPVL has also executed undertaking for negative lien on said parcel of land and given undertaking that the same will not be disposed-off without approval of the lenders.

Repayments :

21.3(b) Rupee term loan outstanding Rs. 1,88,336 Lakhs (Previous year Rs. 1,95,099 Lakhs) are repayable in 48 structured quarterly installments , as detailed as % age of principal outstanding as on 31st March, 2023 ; 6.06 % in FY 2023-24, 7.56 % in FY 2024-25, 7.56% in FY 2025-26, 7.56% in FY 2026-27, 8.57% in FY 2027-28 and balance 62.69% from FY 2029 to 2035.

21.3(c) The working Capital facilities sanctioned by ICICI Bank Ltd, Punjab National bank and IDBI Bank Ltd. are secured by pari-passu charge on the assets as per note no. 21.3 (a)(i)(ii) and note no. 21.5(a)(i) and outstanding balance (fund based) of Rs 27,447 Lakhs (Previous Year-Rs.29,404 Lakhs). Bank Guarantees outstanding of Rs. 7,008 Lakhs (margin money paid against above Bank Guarantees is of Rs.1,439Lakhs) (Previous Year-Rs.5,858 Lakhs (margin money paid against above Bank Guarantees is of Rs.881Lakhs).

21.4 Jaypee Nigrie Cement Grinding Unit:

21.4(a) Rupee Term Loan outstanding of Rs. 3,885 Lakhs (Previous Year Rs.

3.885 Lakhs) out of sanctioned/disbursed amount of Rs. 5,000 Lakhs by Canara Bank are secured by way of; first ranking pari-passu mortgage and hypothecation of all immovable and movables assets both present and future, all intangible assets, and all revenues, receivables and assignment of clinker supply and cement off take agreement pertaining to the Jaypee Nigrie Cement Grinding Unit.

Repayments :

21.4(b) Rupee term loan outstanding Rs. 3,885 Lakhs (Previous year Rs.

3.885 Lakhs ) are repayable in in 48structured quarterly installments, as detailed as % age of principal outtanding as on 31st March, 2023 ; 7.44 % in FY 2023-24, 7.30% in FY 2024-25, 7.30% in FY 2025-26, 7.30% in FY 2026-27, 8.27% in FY 2027-28 and balance 62.39% from FY 2029 to 2035.

21.5 Amelia (North) coal mine:

21.5(a) Financial assistance (after conversion of part of Debt into Equity under SDR scheme and conversion of part of Debt into CCPS under restructuring as per Framework Agreement in earlier years) of Rs.3,830 Lakhs (Previous Year - Rs. 4,052 Lakhs) availed from consortium of Banks viz Bank of Baroda, ICICI Bank Limited, Oriental Bank of Commerce (merged with PNB) and State Bank of India, out of sanctioned amount of Rs.15,700 Lakhs are secured by way of :

(i) First charge on the assets of Amelia (North) Coal Mine ranking pari passu with the term and working capital Lenders of Jaypee Nigrie Super Thermal Power Plant as per Note 21.3 (c) above (except assets which were specifically financed under equipment finance facility by SREI Equipment Finance Company Ltd., which shall be excluded from security package for lenders) on reciprocal basis.

Repayments :

21.5(b) Rupee term loan outstanding Rs. 3,830 Lakhs (Previous year Rs. 4,052 Lakhs ) are repayable in in 48 structured quarterly installments, as detailed as % age of principal outstanding as on 31st March, 2023 ; 7.04 % in FY 2023-24, 7.48 % in FY 2024-25, 7.48% in FY 2025-26, 7.48% in FY 2026-27, 8.48% in FY 2027-28 and balance 62.04% from FY 2029 to 2035.

21.6 (a) Rupee Term Loan/Corporate Loan:

(i) Rupee Term Loan of Rs. 2,843 Lakhs ( Previous Year - Rs. 2,958 Lakhs) (after conversion of Debt into Equity under SDR scheme in earlier year) outstanding out of sanctioned amount of Rs. 1,00,000 Lakhs by State Bank of India, is secured by way of residual charge on all movable and immovable assets of the Company on pari-passu basis with, Corporate Loan of Rs.1,20,000 Lakhs & Rs. 15,000 Lakhs by ICICI bank & IDBI Bank respectively and also secured by way of pledge of 1,500 Lakhs equity shares of the Company held by JPVL Trust (Previous Year-1,500 Lakhs equity shares) .

(ii) Rupee Term Loan of Rs. 60,113 Lakhs ( Previous Year - 62,213 Lakhs) (after conversion of Debt into Equity under SDR scheme in earlier years) outstanding out of sanctioned amount of Rs. 1,20,000 Lakhs by ICICI Bank, is secured by way of residual charge on all movable and immovable assets of the Company on pari-passu basis with Corporate Loan of Rs.1,00,000 Lakhs by State Bank of india, Corporate Loan of Rs.15,000 Lakhs by IDBI Bank and also secured by way of pledge of

3.860 Lakhs equity shares of the Company held by JAL (Previous Year-

3.860 Lakhs equity shares) and pledge of 192.11 Lakhs equity shares of the Company held by JPVL Trust (Previous Year-192.11 Lakhs) and Non Disposal Undertaking for 1,021.89 Lakhs equity shares of the Company held by JAL (Previous Year-1021.89 Lakhs)

(iii) Rupee Term Loan of Rs. 8,240 Lakhs ( Previous year - Rs.8,703Lakhs) outstanding out of sanctioned amount of Rs. 15,000 Lakhs by IDBI Bank , is secured by residual charge on all movable and immovable assets of the Company on pari-passu basis with Corporate Loan of Rs.1,00,000 Lakhs by State Bank of india, Corporate Loan of Rs.1,20,000 Lakhs by ICICI bank and also secured by way of pledge of 315 Lakhs equity shares (Previous Year 315 Lakhs) of the Company held by JPVL Trust, pleadge of 1,206 Lakhs shares( Previous Year 1206 Lakhs shares) of the company held by JAL, the party to whom the company is associate and personal guarantee of Shri Manoj Gaur, Chairman of the Company.

(iv) Corporate loan of Rs.40,000 Lakhs availed from ICICI Bank Limited had been repaid in financial year 2015-16. However, pledge of 783 Lakhs equity shares (Previous year - 783 Lakhs equity shares) of the Company held by JAL are released by ICICI Bank Limited during the year.

(v) Corporate loan of Rs.50,000 Lakhs availed from ICICI Bank Limited had been repaid in financial year 2016-17. However, pledge of 1755 Lakhs equity shares (Previous Year-1,755 equity shares) of the Company held by JAL, 1433 Lakhs equity shares (Previous year - 1,433 Lakhs equity shares) of the Company held by JPVL Trust are released by ICICI Bank Limited during the year.

Repayments :

(vi) Corporate loan State Bank of India - Rupee Term Loan

outstanding of Rs. 2,843 Lakhs (Previous year Rs. 2,958 Lakhs) is repayable in 48 structured quarterly installments, as detailed as % age of principal outstanding as on 31st March, 2023 ;

6.79% in FY 2023-24, 7.15% in FY 2024-25, 7.15% in FY 2025-26, 7.15% in FY 2026-27, 7.89 % in FY 2027-28 and balance 63.87 % from FY 2029 to 2035.

(vii) Corporate loan ICICI Bank - Rupee Term Loan outstanding

of Rs.60,113 Lakhs (Previous year Rs. 62,213 Lakhs) is repayable in 48 structured quarterly installments, as detailed

as % age of principal outstanding as on 31st March, 2023 ;

6.79% in FY 2023-24, 7.15% in FY 2024-25, 7.15% in FY 2025-26, 7.15% in FY 2026-27, 7.89 % in FY 2027-28 and balance 63.87 % from FY 2029 to 2035.

(viii) Corporate loan IDBI Bank - Rupee Term Loan outstanding

of Rs. 8,240 Lakhs (Previous year Rs. 8,703 Lakhs) is repayable in 48 structured quarterly installments, as detailed

as % age of principal outstanding as on 31st March, 2023 ;

6.79% in FY 2023-24, 7.15% in FY 2024-25, 7.15% in FY 2025-26, 7.15% in FY 2026-27, 7.89 % in FY 2027-28 and balance 63.87 % from FY 2029 to 2035.

21.6(b) The outstanding loans balances are excluding Ind AS adjustment of Rs.1,421Lakhs (previous year Rs. 1631 Lakhs).

21.7 All above term loans/debts and working capital facilities mentioned in note no. 21.1,21.2, 21.3, 21.4,21.5 & 21.6 are also additionaly secured by personal guarantee of Shri Manoj Gaur, Chairman of the Company.

21.8 Resolution/ Revival plan

(i) The financial performance and cash flows of the Company have been adversely impacted by the overall stress in the power sector and also due to specific challenges faced by the Company in the previous year(s) in its Thermal Power Plants, viz. Nigrie Super Thermal Power Plant (Nigrie STPP) and Bina Thermal Power Plant (Bina TPP), prominent of which are de-allocation of coal mines by the Hon’ble Supreme Court of India in September 2014, delay in new PPAs in Nigrie STPP abnormally low merchant tariffs and insufficient availability of coal, lower PLF in Bina TPP due to dispatch schedule of very low off take by State loan Dispatch Centre (SLDC), which is technically not feasible to run the plant optimally and forcing Company to sell balance power on power exchanges at market driven tariff resulting unremunerative prices and insufficient availability of coal etc. These factors have put significant strain on the Company’s ability to service the dues of lenders.

(ii) Lenders had invoked SDR during financial year 2016-17 as per RBI guidelines for stressed assets. Consequent to that the Company had allotted 30,580 lakhs equity shares at Rs.3,05,800 lakhs on 18.02.2017 to Banks and Financial Institutions upon conversion of part of their outstanding loans/ interest. The lenders shareholding stood at 51% as on 18.02.2017, which stands reduced to 22.15 % as on 31.03.2023 of paid up capital of the Company. The lenders who are holding equity share capital of the Company, had to offload the shareholding as per RBI guidelines. The lenders had invited bids for divestment of part of their equity in the Company in earlier year. Since the response was not satisfactory, lenders closed the process.

Transaction Price - Remaining Performance Obligation

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at the end of the reporting period and an explanation as to when the Company expects to recognise these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognised corresponds directly with the value to the customer of the entity’s performance completed to date. There are no aggregate value of performance obligations that are completely or partially unsatisfied as of 31st March, 2023, other than those meeting the exclusion criteria mentioned above.

PGCIL has sent intimation for recovery of dues of Rs 10,112 lakhs (previous year Rs. 10,112 lakhs) & Rs 1,037 lakhs (Rs. 1,037 lakhs) for JNSTPP & JBTPP including transmission charges of Rs. 8,139 lakhs (previous year Rs. 8,139 lakhs) & Rs 169 lakhs (Rs. 169 lakhs) respectively for from the date of effectiveness to date of relinquishment.

Appeals filed against the Order of CERC with APTEL, which are under process. An appeal against the said demand had also been filed by the Association of Power Producers (JPVL as member) against the above said demand with APTEL and next date is yet to be intimated.

@ Includes amount of Rs. 7,185 lakhs (previous year Rs. 7,185 lakhs) pertaining to Building and Other Construction Workers Welfare Cess for the period upto financial year 2016-17,related to JNSTPP unit,Currently the matter is pending before Hon’ble High Court, Jabalpur, Madhya Pradesh.

(e) The Company had given the corporate guarantee (CG) to State Bank of India (SBI) of USD 1,500 lakhs (31st March,2022 USD 1,500 Lakhs), for loans outstanding to the extent of Rs 70,333 lakhs (31st March,2022 Rs.70,333 lakhs), granted to Jaiprakash Associates Limited (JAL) (the party to whom the company is an associate) for which fair valuation as of 31st March, 2023 has not been done as per the applicable Ind-AS. Subsequent to the accounting of the impact of “Framework Agreement” (Framework Agreement with its lenders for debt restructuring in earlier year), the Company had initiated process for the release of the guarantee provided to SBI and is in process of discussion with SBI. In the opinion of the Management there will be no material impact on these financial statements, of the fair valuation of the above-mentioned guarantee hence not been considered necessary by the management to be provided for.

(f) JPVL had executed Bulk Power Transmission Agreement for long term open access (LTOA) with Power Grid Corporation of India Ltd. (PGCIL) for transmission of power from Nigrie STPP (JNSTPP) and Bina TPP (JBTPP). Due to cancelation of coal mines & after re bidding of coal mines which allowed usage of 85% of coal for Long term PPAs only in respect of JNSTPP As per change in coal policy, FSAs were entered for the quantity of coal to the extent required for generation of power for supplying to DISCOMs under long term PPA in respect of Bina TPP There was no assured supply of coal for the capacities of Plants and these events have resulted in material change in sale of power of the Nigrie STPP and Bina TPP.JPVL had requested PGCIL for relinquishing of LTOA in respect of Bina TPP and Nigrie STPP for the part of sale of power without any payments because of force majeure events i.e cancelation of coal mines and change in coal policy.

As per the regulations, if LTOA is surrendered/relinquished, relinquishment charges has to be paid. Petitions was filed with CERC that LTA granted to JNSTPP and JBTPP may please be kept in abeyance /surrender/relinquished without any payment. CERC had not accepted our application.

Note 46 - Financial Commitments for Subsidiaries:

The Company along with its associates is to infuse equity in Jaypee Arunachal Power Ltd. (JAPL) and Jaypee Meghalaya Power Ltd. (JMPL) JV subsidiary & subsidiary company respectively to the extent of 89% and 74% respectively.In the earlier year, State Government of Meghalaya had advised that the 270 MW Umngot HEP will not be operationalised till further Orders and during the financial year 2020-21 State Government of Meghalaya had forfeited the up front fees paid amounting to Rs. 135 Lakhs in pursuance of the termination of Agreement for 270 MW Umngot HEP Accordingly,Company had provided for amounting to Rs. 135 Lakhs as diminution in value against investment of Rs. 846 Lakhs in FY 2020-21. During the current year, Company has made further provision for diminution in value of investment in Jaypee Meghalaya Power Limited (Subsidiary Company) amounting to Rs. 711 Lakhs. Till 31st March, 2023 the company has made total Investment of amounting to Rs. 22,872 Lakhs (Previous Year Rs.22,872 Lakhs) in JAPL and of Rs. 846 Lakhs (excluding provision of Rs. 846 lakhs) (Previous Year Rs.846 Lakhs) in JMPL.

Note 47

IIn the earlier years, Uttar Pradesh Power Corporation Ltd. (UPPCL) had sent notice/ recovery plan in respect of unit VHEP for recovery of Rs. 42,442 lakhs (including carrying cost of Rs. 2,472 lakhs for the year ended 31st March, 2023 and Rs.11,109 lakhs for the financial years 2018-19 to 2021-22) (as at 31.03.2022 Rs. 39,970 lakhs) being amount excess paid to the Company as assessed and estimated by the UPPCL including carrying cost (excess payment made to the Company towards income tax and secondary energy charges for financial years 2007-08 to 2019-20 and 2014-15 to 2019-20 respectively) and hold back Rs. 22,500 Lakhs till 31st March, 2023 (up to March’22 Rs. 16,044 Lakhs) including recovery for carrying cost of Rs 13,581 lakhs (up to March’22 Rs. 11,109 Lakhs) as stated above. Based on the legal opinion obtained by the Company, the action of UPPCL for denying income tax and secondary charges and holing / deducting amount, is not as per the terms of the power purchase agreement (PPA). The Company had filed a petition with Uttar Pradesh Electricity Regulatory Commission (UPERC) against UPPCL for the aforesaid recovery. UPERC vide its order dated 12th June,2020 had disallowed the claims of the Company and upheld the recovery/proposed recovery of excess payment made, and against the Order of UPERC the Company has preferred an appeal before APTEL. Meanwhile in 2020-21 UPPCL and Company both have agreed that recovery of amount paid in excess (subject to ongoing reconciliations and final outcome of appeal filed with APTEL for revision in design energy) to be made from monthly power sale invoices raised/to be raised for next 7 years starting from FY 2021-22 till FY 2027-28, with carrying cost charges on outstanding amount @SBI MCLR plus 350 basis points, starting from financial year 2021-22. In view of the above and considering prudence, from 2020-21 onwards, revenue from UPPCL has been accounted for net of the component of income tax and excess secondary energy charges. Pending the final decision on Company’s appeal filed

with APTEL, as stated above, no provision in these financial statements has been considered necessary by the management against the disallowances of income tax and secondary energy charges of Rs. 42,442 lakhs and carrying cost (amount unascertainable). Further the management believes that it has credible case in its favour and accordingly amount which has been deducted by UPPCL of Rs. 22,500 lakhs (shown as part of trade receivables) is considered good and recoverable with interest from UPPCL.

Note 48 Entry Tax

(i) The Company has not made provision against Entry Tax in respect of Nigrie STPP (including Nigrie Cement Grinding Unit) of amounting to Rs.10,871 Lakhs (Previous year Rs.10,871 Lakhs) and interest thereon (Interest impact unascertainable). In respect of Unit- Nigrie STPP (including Nigrie Cement Grinding Unit) receipt of approval for extension of the time for eligibility of exemption from payment of Entry Tax is pending from concerned authority, for which the company has made representations before the concerned authority and management is confident for favourable outcome. Against the above entry tax demand, till date Rs.6,685 Lakhs (Previous year Rs. 6,085 Lakhs) has been deposited (and shown as part of other non-current assets) which is in the opinion of the management good and recoverable.

(ii) In respect Bina TPP Company has received letter dated 20.03.2020 of Entry Tax Exemption from Madhya Pradesh Industrial Development Corporation Limited (Govt of Madhya Pradesh Undertaking) for the period commencing from 12.03.2013 and ending on 30.06.2017. Company is in process filing necessary application/appeals for getting quashed all demands raised by commercial tax department till date.Total Entry Tax demand amounting to Rs 12,206 lakhs (previous year Rs. 12,206 lakhs) against which Rs. 2,078 lakhs (previous year Rs. 1,963 lakhs) has been deposited (and shown as part of other non-current assets) which is in the opinion of the management good and recoverable.

Note 49 Disputed Green Energy Cess & Water Tax (Vishnuprayag HEP)

Company has not made the provision amounting to Rs. 12,431 Lakhs (Previous year Rs.10,770 Lakhs) and Rs. 5,808 Lakhs (Previous year Rs. 4,671Lakhs) of Green Energy Cess and Water Tax respectively against the demand and an appeal had been filed before The Hon’ble High Court of Uttarakhand at Nainital which had granted stay in January, 2017. Subsequently in February'2021, in case of water cess, Hon'ble High Court of Uttarakhand at Nainital passed a common Order against the Company throught a common judgement for all petitioners against which a special appeal had been filed in March,2021 before division bench headed by Honible Chief Justice of Hon'ble High Court of Uttarakhand at Nainital and stay has been granted against the Order passed in February,2021 for Water cess. Currently matters are pending in the Hon’ble High Court of Uttarakhand at Nainital. However High Court vide its order dated 12.07.2022, in respect of the appellants / writ petitioner who establish by filing their affidavits, that they have not, in fact, collected water tax, and not passed on the said liability to their customers, there shall be stay of recovery of water tax till 31st of July, 2022. However, they shall commence paying the water tax dues levied under the impugned legislation from 1st of August 2022, onwards subject to final orders. As per direction Rs 418 Lakhs paid as Water Tax for the period August 2022 to March-23. The Management is confident that no demand will be crystallized due to the amended implementation agreement dated 22nd March, 2003 in which it has mentioned that Vishnuprayag HEP being a run of the river scheme, shall utilize the flowing water of the river to generate electricity. Such right to utilize water available upstream of the project are granted by Government of Uttaranchal for non-consumptive use without charging any royalty, duty, cess or levy of any kind.Also, Ministry of Power vide its notification date 25.04.23 has ordered all state that no taxes/duties may be levied by any state under guise on geneartion of electricity and if any taxes/duties have been to be levied, It may be promptly withdrawn.

Note 50

Disclosure as required under Notification No. G.S.R.(E) dated 4th September, 2015 issued by the Ministry of Corporate Affairs w.r.t MSME (to the extent available and as certified by the Management):

Note 51

Joshimath (where the residential colony of Unit -Vishnuprayag (hydroelectric plant) is situated) and nearby areas have, in Dec'22 and Jan'23 month experienced cracks in some of the residential buildings due to land subsidence. The management of the Company have carried out independent assessment with the help of an expert. Process of further evaluation at residential colony is in process and management believes that impact will not be material of above. There is no impact of the land subsidence on the power house, barrage or any other assets/component of the generating unit, in the opinion of management and an expert. Accordingly, these financial statements do not carry any adjustment.

Note 52

In respect of Bina TPP, billings amounting to Rs 17,706 lakhs (till 31st March 2022 Rs17,706 lakhs including claims on account of non-scheduling of power of Rs.10,459 lakhs) on MPPMCL for capacity charges for five (5) months of year 2020 which has been disputed by MPPMCL as notices of invoking force majeure

clause as stated in note 58 below had been served and/or non-scheduling of power by MPPMCL. In the Opinion of the Management considering the prevailing Madhya Pradesh Electricity Grid Code (revision -ii), 2019 (MPEGC, 2019) and based on opinion of an expert (legal opinion taken by the Association of Private Electricity Generating Stations of MP), the MPPMCL is liable to make payment of capacity charges for declared availability of Contracted Capacity under PPA and for which invoices had been raised in terms of PPA signed between company and MPPMCL (also delayed payment surcharge of Rs. 3795 lakhs till Oct’21 in addition to above stated amount). The Company had filed petitions with Madhya Pradesh Electricity Regulatory Commission (MPERC) in earlier year for the recovery of capacity charges. MPERC has allowed the petition filed for recovery of unpaid capacity charges on account of force majeure and did not allow the Company’s petition for recovery of unpaid capacity charges on account of non-scheduling of power by MPPMCL(RSD). Company has filed an appeal with APTEL against the Order of MPERC for not allowing the petition filed for recovery of unpaid capacity charges of Rs.10,459 lakhs on account of non-scheduling of power by MPPMCL and also MPPMCL has filed an appeal with APTEL against the Order of MPERC for recovery of unpaid capacity charges on account of force majeure, which are pending. Management believes that, considering stated facts, the above amount, which is overdue for payment, is good and fully recoverable by the management and no provision there against is needed at this stage

Note 53

(a) The Company has investment of Rs. 78,089 lakhs (31st March,2022 Rs. 78,795 lakhs) in subsidiary companies (including investment in SPGCL as

stated in note no. d below). No provision for diminution in value against these long-term investments has been considered necessary, by the management, as in the opinion of the management such diminution is temporary in nature considering the intrinsic value of assets, future prospects and management is confident for settlement of claims in their favour.

(b) During the current year ended, based on Management assessment, fair valuation of long-term investment in Trust has been carried out. Accordingly, fair valuation loss of amounting to Rs. 4,301 lakhs (previous year gain of Rs. 12,215 lakhs) has been charged to statement of profit and loss and included in other expenses (previous year in other income).

(c) (i) Other expenses for the current year includes provision for diminution in value of investment in Jaypee Meghalaya Power Limited (Subsidiary Company) amounting to Rs. 711 Lakhs.

(ii) Other income for the current year includes, amount written back of Rs.10,724 lakhs on settlement with suppliers on claims/compensation filed in earlier years

(d) Investment in Sangam Power Generation Company Limited (SPGCL)

Sangam Power Generation Company Limited (SPGCL, a Subsidiary Company) was acquired by JPVL (the Company) from Uttar Pradesh Power Corporation Ltd (UPPCL) for implementation of 1320 MW Power Project (Karchana STPP) at Tahsil Karchana, Distt. Allahabad, Uttar Pradesh. The Company has investment of Rs. 55,212 lakhs (31st March, 2022 Rs.55,207 lakhs) (5,520 lakhs equity shares of Rs. 10/- each fully paid till 31/03/2023) in SPGCL. In the books of SPGCL, amount aggregating to Rs.16,055 lakhs (excluding value of land) is shown as expenditure incurred during the construction and incidental to setting up of the project, capital advances etc. and same been carried over since long and the Net Worth of SPGCL has been eroded significantly as on 31st March, 2023. In view of abnormal delay in handing over the physical possession of parcel of land by UPPCL, SPGCL had written to UPPCL and to all procurers of power that the Power Purchase Agreement (PPA) be rendered void and cannot be enforced. As advised, draft of Share Purchase Agreement (SPA) was sent to UPPCL / UPRVUNL by SPGCL for their approval but there was abnormal delay in resolving the matter by UPPCL, therefore SPGCL had withdrawn all its undertakings given to UPPCL and also had filed a petition before Hon’ble UPERC (State Commission) for release of performance bank guarantee (PBG) and also for payment against claim lodged of Rs 1,15,722 lakhs. UPERC vide its Order dated 28.06.2019 has allowed claim (of SPGCL) for Rs.25,137 Lakhs along with interest @ 9% p.a. on Rs.14,925 lakhs for the period from 11.04.2014 to 31.03.2019 and also directed UPPCL to immediately release PBG of Rs. 99 crore to SPGCL and SPGCL to transfer the entire land parcel to UPPCL. UPPCL had appealed against the said order in APTEL and SPGCL had also filed counter appeal. During the previous year, APTEL vide its order dated 14th July, 2021, upheld the State Commissions Order dated 28.06.2019 and directed State Commission to complete the verification of relevant documents of the claim filed by SPGCL within a period of three months from the date of pronouncement of this judgment and crystallize the total amount to be paid to SPGCL. SPGCL had filed an application with Hon’ble UPERC for verification of expenditure and payment thereof and release of PBG. Meanwhile, UPPCL has filed an appeal with Hon’ble Supreme Court against above mentioned order of APTEL and Company has also filed an appeal with Hon’ble Supreme Court against the order of APTEL. Hon’ble Supreme Court has stayed the Order of APTEL. Further pursuant to the Order of Hon’ble Supreme Court dated 14th December 2021, application filed with UPERC by the Company, as stated above, has been kept in abeyance. Pending final decision and considering the facts stated above management is confident about settlement of claims amount in its favour, hence no provision against diminution in value of investment, has been considered necessary at this stage.

Note 54

The Company has been carrying out sand mining activities in the State of Andhra Pradesh (AP) in terms and as per the contracts signed with Director Mines & Geology (DMG), Government of Andhra Pradesh, the Company was required to pay in total Rs. 1528.80 crore to DMG over a period of two years as fortnightly upfront payment/instalments (w.e.f. 14th May 2021 in fortnightly instalment). The

stated Sand Contracts have been Sub-contracted to a party (Sub-contractor) on back-to-back basis. Further, as per the agreements signed with sub-contractor, Subcontractor has submitted required bank guarantees (BG) to the DMG (of Rs.120 crores). Further, the sub-contractor is liable to pay due instalments amount including delay charges to DMG. DMG has taken on record for appointment/engagement for sub-contractor, however the company (JPVL/Selected Bidder) to continue to be responsible as per terms of the contracts signed. As on 31st March 2023, Rs. 21,690 lakhs (approx.) (excluding interest, amount not ascertained) (including GST) is overdue for payment to DMG by sub-contractor. Certain conditions (including opening of Escrow account) of contracts with DMG are pending for compliance. Purchases, sale and inventory at year end has been accounted for based on confirmation/details as made available by the sub-contractor. The balances of DMG and sub-contractor is in process of reconciliation and pending for confirmation and there will not be any material impact on these financial statements on reconciliation/ confirmation. Management believes that above outstanding of DMG, will be cleared/ paid by sub-contractor and recoverable from sub-contractor of Rs. 25,246 lakhs is good (including above payable to DMG) and fully recoverable.

Note 55

In view of fair value for all property, plant & equipment of power plants (Jaypee Nigrie Super Thermal Power Plant and Jaypee Bina Thermal Power Plant) (including Land, Building, Plant & Machinery capitalized or under CWIP) being excess as compared to the carrying value, as estimated by a technical valuer, management does not anticipate any impairment amount which is to be provided at this stage in the financial statement in the value of property, plant and equipment (including capital work-in-progress) based on the condition of plant, market demand and supply, economic and regulatory environment and other factors.

Note 56 Jaypee Nigrie Cement Grinding Unit

2.0 MTPA cement grinding unit of the Company namely Jaypee Nigrie Cement Grinding Unit (JNCGU) which commenced commercial operation in June, 2015. However, there is nil production during the current year.

Fair value of JNCGU being excess as compared to the carrying value of Rs. 20,291 Lakhs (previous year Rs. 23,699 Lakhs) as assessed by the management considering the expected future cash flows, Also management is of the view that no impairment provision in the carrying amount of property, plant & equipment (including capital work in progress) is necessary at this stage considering above stated reason.

The Board of Directors in its meeting held on 10th October, 2022 had resolved for restructuring (including to divest) it’s 2 MTPA Jaypee Nigire Cement Griding Unit (JNCGU) being a non-core asset and as a part of its debt reduction plan and subsequently on 12th December 2022 a non-binding framework agreement has been signed between the Company and buyer (party) for a consideration of Rs. 250 crores (subject to due diligence and necessary statutory, regulatory approval, lenders approval etc.).On 13th February, 2023 Board of Directors as per offer received from the buyer and with the mutual understanding (between the Company and the buyer), have approved for to enter into a Tolling / Lease agreement (on mutually agreed terms) for a period of upto Seven (7) YEARS, with the buyer shall have right to purchase the JNCGU, on or before the 7th year at an Enterprise Value of Rs. 250.00 Crore. The definitive agreement in this respect is yet to be executed. Note 57

During the current year, Company has been declared successful bidder by Nominated Authority, Ministry of Coal, Government of India for Bandha North Coal Block located in Madhya Pradesh state. The Company is in the process of complying with necessary/ applicable conditions of Coal Block Development and Production Agreement/allocation order/tender documents. Initial outlays, as estimated by the management, for coal block would be Rs.8,000 lakhs (including fixed amount deposited of Rs. 3,868 lakhs and amount of bank guarantee of Rs. 1,560 lakhs given in this regard). Currently, fixed amount deposited of Rs.3,868 lakhs is shown as part of intangible assets under development. For financial year 2023-24, estimated outlays would be Rs. 2500 lakhs where the Company is in process of issuing necessary work orders.

Note 58

On account of outbreak of Coronavirus (Covid-19), during the period from March,2020 to 31st March,2021 there was lockdown across the country / frequent

lockdown for a significant period and there were disruption in business activities however, the Company had continued to generate and supply electricity to its customers, which had been declared as an essential service by the Government of India. However the Company had received notices in earlier year for invoking force majeure clause provided in the power purchase agreement (PPA) by M.P Power Management Company Limited (MPPMCL) and UPPCL in respect of units JNSTPP & JBTPP and VHEP respectively and PTC with whom Company has short term PPA which had been suitably replied by the Company / clarified that the said situation is not covered under force majeure clause, considering generation and distribution of electricity falls under essential services vide notification dated March 25, 2020 issued by Ministry of Home Affairs, Government of India. The Power Ministry had also clarified on April 6, 2020 that the parties to the contract to comply with the obligation to pay fixed capacity charges as per PPA to the Power Producers.

Note 59

(a) Pending confirmations/reconciliation of balances (this is to be read with note no. 54) of certain secured and unsecured borrowings (current & non-current), banks (including certain fixed deposits), trade receivables/ payables (including of MSME) and others (including capital creditors and of Sub-contractors, CHAs and receivables/payables from/to related parties), liabilities, loans & advances and inventory lying with third parties/in transit balances as per the books has been considered. The management is in the process of reconciliation /confirmation of the same and is confident that there will not be any material impact on the profit for the year and the state of affairs of the Company on such reconciliation /confirmation (this is to be read with note no. 21.10).

(b) In view of the financial constrains and to get longer credit period the company is procuring Coal for power generation by making arrangement with coal handling agents (CHAs) (who engaged for lifting and transportation of Coal from different collieries). Sometimes there have been delays in supply of Coal by CHA(s) as they had to procure coal from mines located at distance places and having substantial value and volume and also quality variance. The management is in process to further strengthen its internal control over handling /transportation, receipt, consumption etc of coal through process automation. Also, the Company has regular system of physical verification which is carried out by independent third party.

(c) Overdue receivables of amounting to Rs. 59,962 Lakhs (including delayed payment surcharges of Rs. 11,743 lakhs on delayed payment/overdue receivables) {Previous year Rs. 53,045 Lakhs (including delayed payment surcharges of Rs. 11,743 lakhs on delayed payment/overdue receivables)} (including of matters mentioned in note no. 47& 52 and 59(d)) for which management has initiated legal and other persuasive action for the recovery and is confident about the recovery/realisation of the same. Accordingly these been considered good and realisable by the management.

(d) In earlier year, company had claimed Additional Coal levy of Rs. 295 per metric tonne from MPPMCL amounting to Rs. 2245 lakhs (approx.) (included in overdue receivables in (c) above) in respect of Nigire STPP During the current year, Company has received order of APTEL pertaining to additional levy of Rs. 295 per metric tonne imposed on original allottees of the captive coal block does not entitle to be included in the determination of the generation tariff to be passed on to the end consumers. Company has filed review petition in APTEL against the above stated order and the same is pending. Company has also filed an appeal in Hon'ble Supreme Court against the above stated order. Pending this, no provision has been considered necessary by the management.

(e) One of the Capital supplier, having outstanding balance of Rs.11,742 Lakhs as on 31.03.2023 (previous year Rs.1,1742 Lakhs), has initiated arbitration proceedings against the Company and has filed claims of Rs. 465,46 Lakhs, Company has also filed counter claim of Rs. 162,613 Lakhs. Currently, both the matters are pending before the Arbitration Tribunal. The Company has credible grounds in its favour and strongly believes that claims of supplier has no merits, Accordingly no provision has been considered necessary by the management at this satge.

Note 60

The annual return of GST for F.Y 2022-23 is under process of filing with statutory

authorities.The Management belive that there will not be any any material impact

over financial statement/filing. The date of filing of GST return are 31st Dec. 2023.

Note 61 Tariff/ Billing/ True up:

(a) Jaypee Bina Thermal, Power Plant (JBTPP):

Capacity charges of JBTPP for control period FY 2019-20 to 2023-24 are determined by MPERC vide Multi Year Tairff (MYT) Order dated 30.04.2021. Capacity charges determined for each year are subject to be trued up on the basis of audited financial statements. During FY 2022-23, invoices for Capacity Charges have been raised on MPPMCL on the basis of Tariff approved for same year as determined vide Multi Year Tairff (MYT) Order dated 30.04.2021. True Up Orders for FY 2020-21 & FY 2021-22 have been received during the year and accordingly Rs 58 lakhs payable (net) to MPPMCL on account of true up has been adjusted in revenue.

JBTPP has filed the following petitions and proceedings for the same are in progress:

(i) Appeals with APTEL against True up Orders for Tariff of financial years from 2014-15 to 2021-22 and MYT Order for 2019-24 for certain disallowances in tarrif. Further appeals regarding recovery of bills disputed by MPPMCL on account of invoking force majeure clause and/ or non-scheduling of power due to RSD are also pending before APTEL.

(b) Jaypee Nigrie Super Thermal Power Plant (JNSTPP):

Capacity charges of JNSTPP for control period FY 2019-20 to 2023-24 are determined by MPERC vide Multi Year Tairff (MYT) Order dated 03.05.2021. Capacity charges determined for each year are subject to be trued up on the basis of audited financial statements. During FY 2022-23, invoices in respect of Capacity charges have been raised on on MPPMCL on the basis of Capacity charges determined for FY 2022-23 as determined by MPERC vide Multi Year Tairff (MYT) Order dated 03.05.2021. True Up Orders for FY 2020-21 & FY 2021-22 have been received during the year and accordingly Rs 526 lakhs payable(net) to MPPCL on account of true up has been adjusted in revenue. JNSTPP has filed the following petitions and proceedings for the same are in progress:

(i) Appeals with APTEL against Trueup Orders for Tariff of financial years from 2014-15 to 2021-22 for certain disallowances in tariff.

(ii) Appeal with APTEL for disallowance in Tariff by MPERC in MYT Order for the period FY2016-17 to FY 2018-19 and for the period FY2019-20

to FY 2023-24.

(iii) Appeal with APTEL for disallowance of capital cost by MPERC in determination of capital cost vide Order dated 24.05.2017 for FY 14-15 and FY 15-16.

(iv) On the auction of certain coal mines by the Central Government in earlier year, as per the provisions of rules framed thereunder, the Amelia (North) Coal Mines was allotted to JPVL for the end use of power generation at JNSTPP with payment of additional premium of Rs 612/- per MT

Additional premium is in the nature of charge payable for getting the right to mine coal from the captive coal mine allocated to the Company, and accordingly has been treated as capital cost for calculation of capacity charges. The same is not accepted by Regulatory Commission and appeal is pending with APTEL. In the opinion of the management, the company has credible good case. Accordingly, the payment made for Additional Premium has been reflected as Expenditure in the books of accounts of the company as a matter of principal of prudence. The treatment of amount paid towards Additional Premium will be revised accordingly for the purposes of Capacity Charge Calculation on final settlement /decision of the APTEL.

(c) Vishnuprayag Hydro Electric power plant (VHEP)

(i) In respect of Vishnuprayag HEP Company has accounted for revenue for the year ended 31st March, 2023 based on provisional tariff computed in accordance with Power Purchase Agreement (PPA) and various orders of UPERC and the same is subject to true up.

(ii) Design energy of Vishnuprayag HEP (1774.42 MU) has been revised

considering release of minimum average water flow from river as per Hon'ble NGT Order dated June 05, 2018 from 03.10.2018 to 14th December 2019 (1695.54 MU) and w.e.f 15th December 2019 (1432.28MU) as per Central Goverenment notification no SO 5195(E) dated 09.10.2018 and further amended vide notification no SO 3286(E) dated 14.09.2019 through Barrage for aquatic life, which is more than the release of water flow as mentioned in the PPA. The revision of design energy has been approved by CEA.

A petition was filed with Hon'ble UPERC for amendment in PPA in respect of Design Energy and Tariff. UPERC vide its Order dated 22.02.2021 had not accepted the change in design energy and Ordered that in case actual saleable generation is less than design energy then full primary energy charges will be paid. UPPCL has objected the revision in design energy and submitted a representation with CEA for review of approved design energy on the grounds that current generation is more than/ equal to original design generation.An appeal was filed against by the Company the above Order of UPERC.

APTEL has allowed the appeal vide its Order dated 15.12.2022 and directed UPERC for revision of design energy. Accordingly, application for revision of Design Energy is filed with UPERC. UPPCL has filed an appeal with Hon'ble Supreme Court against the order of APTEL. Hon'ble Supreme Court has granted stay on the Order passed by APTEL, hence application filed with UPERC is also stayed. Currently, Tariff is claimed considering Saleable Design Eenrgy at 1545.87 MU (against revised saleable design energy approved by CEA at 1247.80 MU after increase in e flow as per directions / notificatios of NGT / MoEF). Tariff will be revised and arrears alongwith carrying cost will be claimed on account of change in Saleable Design Energy at 1247.80 MU after decision of pending Appeal.

(d) W.e.f. 01.04.2019, for the purpose of Tariff determination rate of interest is

considered @ 9.50% by MPERC vide MYT Orders for control period 2019-2024 for JBTPP and JNSTPP In view of Framework Agreement [note no. 21.8(iii) &(iv)] interest cost charged to P&L of year 2019-20 and subsuquent year is @ 9.50% p.a. [on implemetation of debt restructuring (scheme)] however the lenders have the right of recompense.Whenever lenders excerise this right and recompense is received to them, the same will be claimed in tariff rate calculation. In case of VHEP for the purpose of interest on Working capital in Tariff calculations, Interest rate of 12.40% has been considered, which is based on State Bank of India confirmation for 01.04.2019 (pre - debt restructuring) however post - debt restructuring, the actual rate charged by the bank is 9.5% (lenders have the right of recompense for the sacrifices made by them under the scheme).

1. Guarantees given and shares pledged by JAL on behalf of the Company and guarantee given by the Company on behalf of the JAL have been mentioned elsewhere in the Notes to Financial Statements.(Refer note no.21.1(a)(v), 21.2(a)(iii), 21.3(a)(iii &iv), 21.6 (ii,iii, iv & v) and 44(e)).

2. In earlier years, a settlement agreement dated 15th December, 2017 had been entered among Company, Larsen & Turbo Limited (L&T), L&T- MHPS Boilers Private Limited (L&T-MHPS) and Jaiprakash Associates Limited(JAL) relating to outsanding amount due and payable to L&T and L&T-MHPS by the Company with respect to work done by them at Nigire Power Project ( as at 31st March, 2023 balance confirmation of these parties are pending). In terms of the settlement agreement, in case of non payment of dues by L&T to JAL for development rights on land of JAL (been assigned to L&T) on agreed consideration within period of six years (as amended), the receivables of L&T from Company, to the extent due at the relevant time, shall stand assigned and transferred to JAL.

$ These CCPS shall be Converted into such number of Equity Shares as may be determined at the time of conversion as per then prevailing provision of Companies Act/SEBI/ RBI Rules and Regulations. However, for the current year as well as for previous year the price for issuance of equity shares on conversion of these CCPS is assumed as Rs.10 each (face value) being the value at which equity shares have been issued during the earlier year to Non-promoter Indian entity.

Note 64

(a) Provident Fund - Defined Contribution Plan

Employees are entitled to Provident Fund benefits. Amount debited to Profit and Loss account including Administrative and Employees Deposit Linked Insurance charges Rs. 700 Lakhs during the period (Previous Year - Rs.685 Lakhs).

(b) Gratuity - The liability for Gratuity is provided on the basis of Actuarial Valuation made at the end of each financial year. The Actuarial Valuation is made on Projected Unit Credit method as per Ind AS 19. Jaiprakash Associates Limited (JAL) (the Company’s associate company) has constituted a Gratuity Fund Trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March, 2009 for JAL and its subsidiaries/ associates and appointed SBI Life Insurance Co. Ltd. for the management of the Trust Funds for the benefits of employees. As an associate of JAL, the Company is participating in the Trust Fund by contributing its liability accrued up to the close of each financial year to the Trust Fund.

(c) Leave Encashment - Defined Benefit Plans - Provision has been made as per Actuarial Valuation certificate as per Ind AS.

The fair values of current debtors, cash & bank balances, security deposit to goverment deparment, current creditors and current borrowings and other financial liability are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities.(read with note no 44(e) and 53(a) & (b) ).

(iii) Valuation techniques used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial

assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Note 65 (2): FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables and cash and cash equivalents that are derived directly from its operations

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk. The company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Company's activities are exposed to market risk, credit risk and liquidity risk. i Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

(b) Foreign currency risk

The Company has no foreign currency trade payables and receivable outstanding as on 31st March, 2023 and is therefore, not exposed to foreign exchange risk.

(c) Commodity Risk

Commodity Price Risk of the Company will fluctuate on account of changes in market price of key raw materials.The Company is exposed to the movement in price of key raw materials in domestic market The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations.

ii Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s credit risk arises from accounts receivable balances on sale of electricity is based on tariff rate approved by electricity regulator. The credit risk is very low as the sale of electricity is based on the terms of the PPA which has been approved by the Regulator. The concentration of credit risk is very limited due to the fact that the large customers are mainly government entities.

In general the average credit period on sales of energy (PPAs) is 21 to 30 days

No interest is charged on trade receivables (PPAs) for the first 30 days from the date of the invoice. Thereafter, Company is having the option to charge interest at 15% to 18% per annum on the outstanding balance, based on the terms of agreement/contract.

Expected Credit Loss:

Where management resonably feel that recovery may be made in due course of time or where the chances of non-recovery is lessor considering contractual right to

receive, the expected credit loss allowance is not calculated on trade receivables (including on trade receivables on account of dispute).

For the age of trade receivables , refer note no. 13 iii Liquidity Risk

Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company's management is responsible for liquidity, funding as well as settlement. In addition, processes the policies related to such risks. Senior management monitors the company's net liquidity position through rolling, forecast on the basis of expected cash flows.

i Capital Management

The Company manages its capital to ensure that the company will be able to continue as going concerns while maximising the return to stakeholders through the optimization of the debt and equity balance.

The Company's Audit Committee reviews the capital structure of the Company. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total capital plus debt.

Note 66

(a) As there is no taxable profit/ book profit during the year ended 31st March, 2023, no income tax amount/ MAT has been provided for.

(b) In the opinion of management, assets stated in the financial statements have a realizable value (at which these are stated), in the ordinary course of business at least equal to the amount at which they are stated.

(c) Deferred tax assets (net) on unabsorbed depreciation & business losses and MAT credit entitlement has been recognised and carried over of amounting to Rs.2,216Lakhs (Previous year Rs. 12,041 Lakhs) and Rs.2,049 Lakhs (Previous year Rs.9,034 Lakhs)respectively, Owing to reasonable certainty of availability of future taxable income to realize such assets. The management is confident about its realisability and it expects turnaround of the sector in near future. Accordingly, these have been considered good and no provision there against at this stage is considered necessary by the management in the financial statements.

Note 67

M/s Tecpro Systems Ltd. (Tecpro), was awarded the contracts for supply, erection, testing, commissioning and performance of the coal and ash handling system, (ACFA system), coal crusher system by Bina Power Supply Company Ltd. which had been merged with JPVL(Company) in earlier year for its 500 MW Thermal Power Plant located at Bina Distt. Sagar, M.P However, Tecpro did not complete the entire work as per the terms & conditions of contracts, and the Company got completed the balance work itself, by procuring the balance materials from other suppliers and made the systems operational. An amount of Rs. 535.40 lakhs was recoverable on account of mobilization advance paid to Tecpro. As Tecpro had left the work incomplete, the company had in earlier year encashed the Bank Guarantee provided by Techpro of amounting to Rs.

2,013.20 Lakhs on account of dispute and loss incurred by the company for not completing the work as per award causing delay in the project. The Company had to incur an expenditure of Rs.6,093 lakhs towards procurement of remaining plant and machinery for completing the plant. The Company had claimed liquidated damages of Rs.2,235 Lakhs and amount of Rs.6,093 Lakhs which it had incurred on additional cost, expenditure on procurement of various materials to complete the Plant. Creditors of Tecpro has referred Tecpro to NCLT and IRP/RP had rejected the claim of the Company. During the previous year, Company had recevied a legal notice from Offical Liquidator (OL) of M/s Techpro demanding refund of encashed bank guarantee along with interest, Company had replied the same and had declined the claim made by OL for the reasons stated above.

Note 68- Other Information in terms of the amendment in Schedule-III of the Companies Act,2013 by Ministry of Corporate Affairs (MCA) vide notification G.S.R. 207 (E) dated 24th March,2021:

(i) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company for holding any benami property.

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

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(v) The Company does not have any such 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 (such as, search or survey or any other relevant provisions of the Income Tax Act,1961.

(vi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers)

Rules, 2017.

(vii) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

Note 70

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, Consolidated financial statements (CFS) is being presented seperately and Segment disclousers in being made in CFS.

Note 71

Previous Year’s figures have been regrouped/ re-arranged, wherever considered necessary to make them conform to the figures for the current year.