R BUST

FOUNDATION
How the Adani Group invested the first five
years following acquisition to build a robust
foundation for evolving into a digital-driven
and future-facing Discom

Adani Electricity Mumbai Limited

Annual Report FY 2022-23
Forward-looking statement
Certain statements in this communication may be ‘forward-looking statements’ within the meaning of
applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially from those suggested by the forward-
looking statements. Important developments that could affect the Company’s operations include changes in
the industry structure, significant changes in political and economic environment in India and overseas, tax
laws, import duties, litigation and labour relations. Adani Electricity Mumbai Limited, will not be in any way
responsible for any action taken based on such statements and undertakes no obligation to publicly update
these forward-looking statements to reflect subsequent events or circumstances.

Contents
Part 1 Engaged in building a better 068 How we are strengthening our power
tomorrow distri9bution business
006 Corporate snapshot 074 How we have created a robust power
distribution platform
011 Our financial track record
076 How we are driving business excellence
022 Chairman’s message
078 Using the power of information
026 MD’s review
technology at AEML
030 Chief Executive Officer’s message
081 How we are enhancing consumer
034 Chief Financial Officer’s review delight at AEML
083 How we have strengthened our people
Part 2 How we are building for tomorrow capital
042 What India will be like tomorrow, say in
088 At AEML, we have deepened a culture
2030
of safety
043 This is a picture of tomorrow’s India
093 Our approach to sustainability

Part 3 How we have built one of the 097 Enlightened empowerment: Elevating
corporate social responsibility for a
most exciting power distribution
sustainable future
companies in India
046 The Big Picture
Statutory Reports
048 How we transformed with speed in five 105 Directors Report
years, 2018-2023
052 Approach to integrated reporting Financial Statements
054 Capitals and their impact 139 Standalone Financial Statements
058 How we engage with our stakeholders 226 Consolidated Financial Statements
061 The pillars of AEML’s transformation 310 Notice
 R BUST
FOUNDATION

At Adani Electricity Mumbai Limited, we

focused on the three A’s from the day we
assumed control of the business five years ago.
We focused on making electricity accessible
across India’s financial capital by widening and
deepening our delivery footprint.
We made electricity available by investing in
our power generation capacity to ensure that
power was always available when consumers
needed it.
We made electricity affordable through a range
of initiatives, strengthening the competitiveness
of our consumers.
In doing so, we have created a robust
foundation that promises to make our growth
secure, stable and sustainable.
 ADANI ELECTRICITY MUMBAI LIMITED
002 ANNUAL REPORT 2022-23

Passion is what we
bring to our business.
Integrity is what
holds it together.

Vision
To be a world-class
leader in businesses
that enrich lives and
contribute to the nation
in building infrastructure
through sustainable
value creation.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 003

Our mission
Adani Electricity has a long-term vision and
strategy to provide Mumbai’s consumers
with electricity tariff stability and visibility
by scaling renewable energy supply.

Our ethos
The power of service. It is born of the will
to make a difference and change things
for the better so that everyone can power
their dreams and live a stress-free life.

Our values
Courage: We shall Trust: We shall Commitment: We
embrace new ideas believe in our shall stand by
and businesses employees and other our promises and
stakeholders standards of business

Culture Passion: Performing

driving at Results: Achieving
with enthusiasm and
goals consistently
AEML energy

Entrepreneurship:
Integration: Working
Dedication: Working Seizing new
across functions and
with commitment in opportunities with
businesses to create
pursuit of our aim initiative and
synergy
ownership
 ADANI ELECTRICITY MUMBAI LIMITED
004 ANNUAL REPORT 2022-23
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 005

PART 1

AEML.
ENGAGED IN
BUILDING A BETTER
TOMORROW
 ADANI ELECTRICITY MUMBAI LIMITED
006 ANNUAL REPORT 2022-23

Adani Electricity Mumbai Limited (AEML).

One of the most

dynamic proxies
of India’s power
distribution sector.
Servicing the growing electricity needs of
Mumbai, India’s financial capital.
Modernising through digitalisation, create a
consumer-centric public utility.
Positioning itself at the forefront of India’s
energy transition towards renewable energy.
Enhancing the proportion of renewable
energy in its electricity mix to the highest
among public utilities in India.
Moderating costs and passing benefits to
consumers with the objective of enhancing
power affordability.
Reinventing the way public utilities are
managed and perceived: from customer
satisfaction to consumer delight.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 007

Who we are
Adani Electricity Mumbai Limited suburbs, it covers a vast area of extensive and highly efficient
(AEML) is a leading electricity 400 square Km. Our commitment distribution network. We are
distribution company in India to reliability is evident in our Mumbai’s preferred choice as a
that operates as a subsidiary of track record, around an uptime power supplier, providing the most
Adani Transmission Limited. With of 99.99%, which ranks among competitive tariff that is powered
a consumer base of over three the highest in India. We supply by a large in-Group access to
million across Mumbai and its close to 2,000 MW through our renewable energy.

Background
The Company is a part of the areas of the Adani Group comprise global presence, known for the
Adani Group, a multinational sustainability and renewable successful execution of large
conglomerate headquartered energy. It made significant infrastructure projects. With its
in Ahmedabad. With a diverse investments in the renewable entrepreneurial spirit, innovative
portfolio spanning multiple power sector, particularly in solar approach, and commitment to
sectors, including energy, and wind energy, contributing to economic growth, the Adani
infrastructure, logistics, the country’s transition towards a Group has emerged as one of
agribusiness and more, the cleaner and greener future. India’s largest and most influential
Group has established itself as business conglomerates.
Operating in over 50 countries,
a prominent player in the global
the Adani Group enjoys a strong
business landscape. Key focus

Our responsibility Our commitment

Adani Electricity Mumbai Limited AEML is committed to delivering an environmentally responsible
(AEML) services 3 Mn consumers a minimum 60% of its energy energy portfolio, contributing to
in India’s financial capital. The mix through renewable energy the reduction of carbon emissions
Company’s reach extends to 12 by FY 26-27. The Company and mitigating climate change.
Mn households, encompassing aims to reduce greenhouse gas AEML pioneered the introduction
a significant 85% of Mumbai’s (GHG) emissions intensity by of sustainability-linked bonds
geography and touching the lives 60% by FY 28-29 (baseline of within its US$ 2 Bn global
of 67% of its population through FY 18-19). These goals validate medium-term notes program.
quality service and solutions. the Company’s commitment to

Our investor engagement Renewable power as % of total procurement

AEML professes the best practices
in investor engagement and 3%
building a relationship of mutual
understanding with domestic and
foreign investors/analysts. The 30%
Company ensures that relevant 40%
corporate information is available 70% 60%
on its website. The Company 97%
also engages with investors in
the areas of Environment, Social
and Corporate Governance 2019 2023 2027
(ESG), validating its holistic
responsibility.
 ADANI ELECTRICITY MUMBAI LIMITED
008 ANNUAL REPORT 2022-23

Our resource mix Our compliances Our digitalisation

At AEML, we possess a flexibility AEML is completely compliant AEML is committed to the growing
in the use of resources – coal with regulatory needs related to use of digitalisation leading to
(domestic or imported) as well timely compliance certificates, enhanced consumer delight.
as renewable energy. This makes consistent compliance track AEML introduced Electric Smiles,
it possible for the Company to record, industry updates, a customer rewards program.
adapt to periods of high prices or transparent financial projections, Customers earn credit points on
low resources availability. During third-party assurance reports, cashless payments and enjoy
the last few years, the Company renewable power mix, electric bonus points for timely digital
modified its power generation vehicle initiatives, smart bill payments. The Company is
equipment to use imported coal metering implementation, Green committed to seamless customer
of a different calorific value. The Medium-Term Notes programme, service and satisfaction.
Company transitioned to the use sustainability-linked bonds
of renewable energy during the issuance, infrastructure approvals
last financial year and intends and green power initiative.
to increase the proportion of
renewable energy across the
coming years.

Our credit rating Our certifications

AEML was assigned CRISIL AA+/ At AEML, business excellence (SUP) and compliant with the
Stable rating by CRISIL. This rating is integral to AEML’s culture and requirements of Zero Waste to
reflects the Company’s strong a catalyst of sustainable value Landfill with a diversion rate of
business risk profile, supported by creation. AEML is implementing 95.63%.
a regulated cost-plus model that world-class standards, certified
The Company’s Adani-Dahanu
ensures a healthy return on equity for nine management system
Thermal Power Station
and pass-through of operating standards / guidelines, including
(ADTPS) was the world’s first
and finance costs related to Quality Management System (ISO
power plant to receive the
regulated debt. The Company 9001), Environment Management
ISO 50001:2018 certification
possesses a proven track record System (ISO-14001), Occupational
for energy management. It is
in obtaining timely tariff orders, Health & Safety Management
certified for quality, environment,
keeping regulatory assets under System (ISO 45001), Asset
occupational health and safety,
control. The Company’s operating Management System (ISO 55001),
social accountability, information
performance is characterised Energy Management System
security and other attributes.
by low aggregate technical (ISO-50001), Business Continuity
ADTPS features advanced systems
and collection (AT&C) losses, Management System (ISO 22301),
for control, monitoring, and
indicating operational efficiency. Information Security Management
asset management. It prioritises
Besides, the Company’s favourable System (ISO 27001), IT Service
environment sustainability
consumer base has translated into Management System (ISO 20000-
through measures like emission
a short debtors’ cycle. 1), Guidelines for Information
dispersion, efficient fly ash
and Communication Technology
collection, air quality monitoring,
Readiness for Business
and sulphur removal. The result is
Continuity (ISO 27031) and Social
that in the last few years, ADTPS
Responsibility Guidelines (ISO-
has emerged as a standard for
26001). AEML is certified for
responsible and efficient power
Management of Single Use Plastic
generation.

Our achievements
Adani Electricity topped the country’s 71 electricity distribution companies for its overall governance
including financial sustainability, performance excellence and external environment. In the Ministry of
Power’s 11th edition of the ‘Annual Integrated Rating & Ranking’ of country’s power distribution utilities,
Adani Electricity secured the highest of rank Grade A+ and the highest integrated score of 99.6 out
of 100. The rating report is prepared by McKinsey & Company and the assessment is based on the
accounts of three financial years from FY 19-20 highest of to FY 22-23.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 009

Our awards
Golden Peacock Award – 2nd Virtual Competition on Excellence' and 12 'Excellent'
FY 22-23: AEML received the Kaizen, Poka-Yoke, SMED & awards.
Golden Peacock Innovation LCA FY 22-23: Conducted by
Chapter Convention on Quality
Management Award - FY 22-23 QCFI, Mumbai Chapter and
Concept (CCQC) – FY 22-23:
Thane District Sub Chapter in
Best Boiler user – FY 22-23: Conducted by QCFI, Mumbai
May 2022. AEML won two Gold
ADTPS Received the first prize Chapter and Thane District Sub
and two Silver awards
in Best Boiler User - FY 22-23 Chapter in September 2022.
by GOM Labour Department. International Convention on Eighteen teams received 'Gold',
Quality Control Circles – four teams received 'Silver' and
IMC RBNQA making quality
FY 22-23: Conducted by IQMA two teams received 'Bronze'
happen – FY 22-23: AEML
at Jakarta in November 2022. awards.
bagged the IMC RBNQA Making
AEML received seven Gold
Quality Happen – 3 Awards. Organisational Health Safety
awards.
Two teams bagged the first and Sustainability Association
prize MQH Best Practice Trophy National Convention on Quality of India: AEML won the
and one team bagged the Concept (NCQC) – prestigious gold award in
second Runner up certificate. FY 22-23: Conducted by QCFI February 2023, in a pan-India
at Aurangabad in December competition held by OHSSAI
2022. AEML received nine 'Par that attracted renowned
companies.
 ADANI ELECTRICITY MUMBAI LIMITED
010 ANNUAL REPORT 2022-23

Our geographic
footprint

Mira Bhainder division

Mira Bhaindar Division M.B. Trades Centre,
Mira Bhaindar Road. near the railway
crossing, Bhaindar (E), Thane - 401105

Borivali division
Borivali Division, ground floor, junction of
Shankar Lane and S. V. Road, Kandivali
West, Mumbai 400067

Malad division
Malad Division, western Express Highway,
opposite Patel Aluminium, Malad East,
Mumbai 400097

Andheri division
Andheri Division E-4 (iii), MIDC area, Marol,
Versova Meghwadi Andheri, near MIDC police
station, Andheri (East), Mumbai 400093

Powai division
Powai Division Andheri Kurla Road,
Sakinaka Junction, Andheri East,
Mumbai 400072

Chembur division
Vandre division
Chembur Division near Sahakar Cinema,
Tilak nagar Road, Number. 3, Chembur,
Vandre Division 177, City - 2
Mumbai 400089
Vidyanagari Marg, Kalina,
Santacruz East Mumbai
400098
FY2019-20 7870

(H Crore)
Revenues
FY2020-21 6461

FY2021-22 7319

FY2022-23 8692
track rec rd
Our financial

FY2019-20 1882
(H Crore)
EBITDA

FY2020-21 2078

FY2021-22 2083

FY2022-23 2381

FY2019-20 50
(H Crore)
Net profit

FY2020-21 259

FY2021-22 122
FINANCIAL STATEMENTS
STATUTORY REPORTS
CORPORATE OVERVIEW

FY2022-23 95
011
 ADANI ELECTRICITY MUMBAI LIMITED
012 ANNUAL REPORT 2022-23

THE ADANI PORTFOLIO OF COMPANIES

The multi-business Adani

portfolio of companies is one
of the most dynamic industrial
conglomerates in India

VALUES

Vision: To be a Courage: We shall embrace

world-class leader new ideas and businesses
in businesses
that enrich lives Trust: We shall believe in
and contribute to our employees and other
nations in building stakeholders
infrastructure Commitment: We shall stand
through sustainable by our promises and adhere to
value creation. high standards of business

Enhancing Enriching
Engaged in
stakeholder communities of
nation building
value its presence

Culture

Passion Results Integration Dedication Entrepreneurship

Performing with Consistently Working across Working with Seizing new
enthusiasm and achieving goals functions and commitment in opportunities with
energy businesses to the pursuit of our initiatives and
create synergies aims ownership
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 013

The promoter largest in India, marked by The positioning

attractive economies of scale.
The Adani portfolio of The Adani portfolio of
companies has been promoted Adani Ports and Special companies has positioned itself
by the visionary industrialist Economic Zone Limited is the as a leader in the transport
Mr. Gautam Adani. The Adani largest private sector port logistics and energy utility
portfolio of companies was operator in India. portfolio businesses in India.
founded by Mr. Gautam Adani This portfolio of companies
Adani Green Energy Limited is has focused on sizable
in 1988 with a commodity
among the largest renewable infrastructure development
trading business under the
energy businesses in the world. in India with operations and
flagship company Adani
Enterprises Limited (previously Adani Transmission Limited maintenance (O&M) practices
Adani Exports Limited). is the largest private sector benchmarked to global
transmission and distribution standards.
The Adani portfolio of company in India.
companies The core philosophy
Adani Total Gas Limited is the
Headquartered in Ahmedabad, The core philosophy of the
largest city gas distribution
India, the Adani portfolio of Adani portfolio of companies
business in India.
companies comprises the is ‘Growth with Goodness’,
largest and fastest-growing Ambuja Cement (with its beacon for sustainable
portfolio of diversified subsidiary ACC Limited) is growth. The Adani portfolio
businesses in India with the second largest cement of companies is committed to
interests in logistics (seaports, manufacturer of India and an widen its ESG footprint with an
airports, logistics, shipping iconic cement brand. emphasis on climate protection
and rail), resources, power and increasing community
Adani Enterprises Limited
generation, transmission outreach through CSR
is India’s largest business
& distribution, renewable programmes woven around
incubation company.
energy, gas & infrastructure, sustainability, diversity and
Adani Power Limited is the shared values.
agro (commodities, edible oil,
food products, cold storage largest private sector thermal
and grain silos), real estate, power producer in India. The credibility
public transport infrastructure, Adani Wilmar Limited holds the The Adani portfolio of
cement, media, defence & position of being India's largest companies comprises four
aerospace, mining services, edible oil brand. IG-rated businesses and is the
copper, petrochemicals, data only Infrastructure Investment
centre and other sectors. NDTV Limited is among India’s Grade bond issuer from India.
most trusted media companies.
The scale
The visibility
Most Adani portfolio
businesses are among the The Adani portfolio comprises
ten publicly traded companies.
 ADANI ELECTRICITY MUMBAI LIMITED
014 ANNUAL REPORT 2022-23

Adani: A world-class
infrastructure and utility portfolio

Flagship Infrastructure and utility core portfolio Primary industry Emerging B2C

Incubator Energy and utility Transport and logistics Materials, metal Direct to consumer
and mining
69.2% 57.3% 71.7% 61.0% 100% 63.2%

APSEZ Cement4
AGEL ATL
AEL Ports & NQXT1
Renewables T&D
Logistics 100% 44%

37.4% 75% PVC AWL

Food FMCG
ATGL2 APL 100%
Gas discom IPP
Copper,
Aluminum

100% 50% 100% 100% 100% 100%

Mining
ANIL Adani ADL
AAHL ARTL Service and
New ConneX3 Digital
Airports Roads Commercial
industries Data centre
mining

A multi-decade story of high growth centered around

infrastructure and utility core
(%): Promoter equity stake in Adani Portfolio companies
(%): AEL equity stake in its subsidiaries
Listed entities

1 NQXT: North Queensland Export Terminal | 2 ATGL: Adani Total Gas Limited, JV with TotalEnergies |
3 Data center, JV with EdgeConnex | 4 Cement business includes 63.15% stake in Ambuja Cements Limited
which in turn owns 50.05% in ACC Limited. Adani directly owns 6.64% stake in ACC Limited
AEL: Adani Enterprises Limited; APSEZ: Adani Ports and Special Economic Zone Limited; ATL: Adani
Transmission Limited; T&D: Transmission & Distribution; APL: Adani Power Limited; AGEL: Adani Green Energy
Limited; AAHL: Adani Airport Holdings Limited; ARTL: Adani Roads Transport Limited; ANIL: Adani New
Industries Limited; AWL: Adani Wilmar Limited; ADL: Adani Digital Limited; IPP: Independent Power Producer

014
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 015

Adani portfolio of companies: Marked

shift from B2B to B2C businesses

ATGL AEML
Adani Airports
City gas distribution Electricity distribution
Operates, manages and
network to serve key network that powers
develops eight airports
geographies across Mumbai, India’s
in India
India financial capital

Adani Wilmar
Ambuja
Among India’s
Cements and ACC
largest packaged
India’s most trusted
foods companies
cement brands with a
comprising Fortune,
capacity of 67.5 Mn
India’s edible oil
Tons
brand leader

Adani portfolio of companies: Locked-in infrastructure growth

Transport and Energy and utility APSEZ NQXT ATMSPL

logistics Renewables/ Adani Ports and North Queensland Adani Tracks
Airports and roads transmission Special Economic Export Terminal Management
and distribution/ Zone Limited Services Pvt. Ltd.
city gas / power (formerly Sarguja
generation Rail Corridor Pvt.
Ltd.)

AAHL ATL/APL/AGEL/ ANIL ARTL / AWL T&D / IPP

Adani Airports ATGL Adani New Adani Road Transmission and
Holdings Ltd. Adani Transmission Industries Limited Transport Limited / Distribution /
/ Adani Power / (green hydrogen Adani Wilmar Ltd Independent Power
Adani Green Energy ecosystem) Producer
/ Adani Total Gas

015
 ADANI ELECTRICITY MUMBAI LIMITED
016 ANNUAL REPORT 2022-23

Adani portfolio of companies: Repeatable and

proven transformation investment model
Phase Development Operations Post operations

Origination Site development Construction Operation Capital management

• Analysis and • Site acquisition • Engineering and • Life cycle O&M • Redesigning the capital
Activity

market intelligence design planning structure of assets

• Concessions
• Viability analysis and regulatory • Sourcing and • Technology- • Operational phase
agreements quality levels enabled O&M funding consistent with
• Strategic value
asset life
• Investment case • Equity and debt
development funding at project
level
•India’s largest • Completed one of • 2,140 MW • Energy Network • First GMTN of US$ 2
commercial port (at the longest private hybrid cluster Operation Center Bn by an energy utility
Mundra) HVDC line operationalised in player in India and
• Centralised
(Mundra – Rajasthan in FY 22- sustainability- linked
continuous plants
Mahendragarh) 23 bond
monitoring across
Performance

India on a cloud • AGEL tied up

based platform ‘Diversified Growth
Capital’ with a revolving
facility of US$ 1.64 Bn for
fully funding its project
pipeline
• Issuance of 20 and 10-
year dual tranche bond
of US$ 750 Mn
Green bond issuance of
US$ 750 Mn
Highest margin Highest line India’s first and Centralised Debt structure moving
among peers availability world’s largest continuous from PSU banks to bonds
solar-wind hybrid monitoring of solar
cluster and wind plants 14%
across India on
a cloud-based March
2016 55%
platform 31%

3%
11%
2%
29%
March
2023 34%

5%
15%

PSU banks Private

banks Bonds NBFCs
& FIs DII Global
International Banks
PSU-capex LC
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 017

How Adani portfolio of companies

performed in FY 22-23
EBIDTA (growth %)

APL APSEZ^ ATL

4% 21% 11%
2019-20
FY 22 2019-20
FY 22 2019-20
FY 22
13,789 10,607 5,493
FY 23 FY 23 FY 23
14,312 12,833 6,101

AEL AGEL ATGL

112% 61% 11%
FY 22 FY 22 2019-20
FY 22
4,726 3,926 815

FY 23 FY 23 FY 23
10,025 6,331 907

Ambuja Cement,
EBITDA
consolidating ACC
• AEL EBITDA grew on the back of growth in year is for 15 months and not comparable
the incubating businesses (Airports, Roads) with the previous 12 months, ended 31st
FY 22 and Integrated Resource Management December 2021
NA
• APL EBITDA improved due to improved • Ambuja Cement (consolidating ACC)
FY 23 tariff realisations and higher prior period became a part of Adani portfolio following
income recognition acquisition in September 2022
4,173
• APSEZ EBITDA growth was on account • ATGL EBITDA grew due to increased sales
AWL of an increase in cargo volume, operational
efficiency and cost restructuring
volume, coupled with an improvement in the
operating margin and cost optimisation
• ^APSEZ EBITDA excludes forex; APSEZ • ATL EBIDTA grew on account of
2019-20
FY 22 FY 21-22 EBITDA excluded H210 Crore of higher revenues in the transmission and
1,736 SRCPL and GPL acquisition cost distribution businesses
• Ambuja Cement (consolidating ACC) • AGEL's growth in EBITDA was supported
FY 23 changed its financial year end from by increased revenues and cost efficiencies
1,661 December to March (figure for the current brought in through analytics-driven O&M

PAT (growth %)

APL APSEZ ATL

118% 9% 4%
2019-20
FY 22 2019-20
FY 22 2019-20
FY 22
4,912 4,953 1,236

FY 23 FY 23 FY-23
10,727 5,392 1,281

AEL AGEL ATGL

218% 99% 5%
2019-20
FY 22 2019-20
FY 22 2019-20
FY 22
777 489 505

FY 23 FY 23 FY-23
2,473 973 530
 ADANI ELECTRICITY MUMBAI LIMITED
018 ANNUAL REPORT 2022-23

The Adani portfolio of companies’

platform comprises foresight, operational
excellence, outperformance and leadership
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 019

The Adani portfolio of companies' businesses

Energy Transport and Materials, Direct-to-

Incubation metals and
and utility logistics consumer
mining

The Adani portfolio of companies' growth platform

Investing
Making at a competitive
Betting on Strategic big outsized Creating long- Ensuring
capital cost in
investments term revenue attractive
India picture a relatively low
in futuristic visibility margins
commissioning
infrastructure time

The Adani portfolio of companies

India overview: We, at Adani, from a broadbased competitive of companies addresses sectorial
believe in and bet on India. In advantage that is not dependent spaces not on the basis of existing
the last three decades, India on any one factor but is the result market demand but on the basis
has not just grown faster; but of an overarching culture of of prospective market growth
has also compressed the GDP excellence – the coming together following the superior Adani
growth of the earlier decades into of adjacent businesses, deep sectorial value proposition.
fewer years. India is expected to sectorial experience, ability to
Outsized: The Adani portfolio
transition from a US$ 3.75 Trn commission projects faster than
of companies established a
economy to a US$ 5 Trn economy the sectorial curve, competence
respect for taking outsized bets
in the next few years. to do so at a cost lower than the
in select sectors and businesses
industry average, foresight to
At Adani portfolio of companies, without compromising Balance
not merely service the market
we proactively invested in Sheet safety. The portfolio of
but to grow it, establish decisive
businesses that are expected companies establishes a large
sustainable leadership and evolve
to ride India’s middle-income capacity aspiration that sends
the Company’s position into a
consumption engine. The Adani out a strong message of its long-
generic name within the sector.
portfolio of companies invested term direction. Its outsized initial
not on the basis of what is, but Relatively non-mature spaces: The capacity establishes economies of
on what can be. By making Adani portfolio of companies has scale within a relatively short time
disproportionate investments, it entered businesses that may be horizon that deters prospective
intends to shift the needle not considered ‘maturely non-mature’. competition and generates cost
just for its investee Company but Some of the businesses can be leadership (fixed and variable).
for the country as a whole - with classified as mature, based on the
Technology: The Adani portfolio
the objective of extending access, enduring industry presence and
of companies invests in the best
reducing costs, widening the the conventional interpretation
technology standards that could
market and, in doing so, helping of their market potential; these
generate precious additional basis
strengthen India. businesses can be considered
points in profitability and help
non-mature by the virtue of their
Competitive advantage: At the more than recover the additional
vast addressable market potential
Adani portfolio of companies, cost (if at all) paid within a
and the superior Adani portfolio of
we believe that the ability to short tenure. This superior
companies value proposition. The
make a significant national technology standard evolves
result is that the Adani portfolio
contribution can only be derived into the Company’s sustainable
 ADANI ELECTRICITY MUMBAI LIMITED
020 ANNUAL REPORT 2022-23

competitive advantage, respect, competencies. This capability has around the lowest costs. This
talent traction and profitability. resulted in quicker revenue inflow, approach helps transform these
increased surplus and competitive marquee institutions from mere
Execution excellence: The Adani
project cost per unit of delivered lenders to stable resource (fund or
portfolio of companies has built
output. growth) providers for the long-
a distinctive specialisation in
term.
project execution, one of the Flexible capital structure: The
most challenging segments in Adani portfolio of companies Ownership
India. The portfolio of companies has created a robust financial The Adani portfolio of companies
has established benchmark foundation of owned and comprises a high promoter
credentials in executing projects borrowed funds. This enhanced ownership, validating a
faster than the sectorial average credibility makes it possible for commitment and ownership in
by drawing from the multi- the Adani portfolio of companies projects.
decade Adani pool of managerial to mobilise resources from some
excellence across a range of of the largest global lenders at

Adani portfolio outperformance

Cargo Renewable Transmission City gas
volume capacity growth network growth distribution growth
(MMT) (GW) (ckm) (GAs covered)

4% 13% 15% 60% 5% 16% 22% 31%

2.95x 3.91x 3.42x 1.43x

Industry APSEZ Industry AGEL Industry ATL Industry ATGL

2014 972 113 2016 46 0.3 2016 3,41,551 6,950 2015 62 6
2023 1433 339.30 2023 125 8.086 2023 4,71,341 19,779 2023 295 52

Transformative model driving scale, growth and free cash flows

GW: Gigawatt, GAs: Geographical Areas, MMT: Mn metric tonne, CKM: Circuit Km
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 021

The Adani portfolio: Establishing

benchmarks

India’s largest India’s largest India’s largest World’s largest

commercial port single location private sector wind-solar hybrid
(Mundra) private thermal ports company operational power
Largest IPP (Mundra) project - 2,140 Mw
in Rajasthan

Port company line availability One of India's Leading edible oil

enjoying the benchmarks in largest port-based player (number
highest margin India edible oil refinery two in Wheat
Biggest among peers
Largest airport
with a capacity of Flour and number
5,000 MT per day three in Basmati
Among the infrastructure
Rice)
highest company in India
transmission

Quickest 648 MW solar power plant

The Kamuthi plant was commissioned in only nine months

897 ckm
Longest The length of one of the India’s longest intra-state transmission lines that was
completed (Ghatampur Transmission Limited)
 ADANI ELECTRICITY MUMBAI LIMITED
022 ANNUAL REPORT 2022-23

CHAIRMAN’S MESSAGE

Adani Group will continue

to consolidate what it
has built while looking at
expanding its horizons.

Dear Shareholders,
A few months back I heard a new term, Permacrisis. I learnt that the Collins dictionary
had defined it as "an extended period of instability and insecurity”. They also chose it as
the word for the year 2022. Interestingly, I also learnt that two other words that were in
the running for the top spot were ‘quite quitting’ which meant doing the bare minimum
duties at work (in rejection of competitive careerism) and “vibe shift” which meant a
significant change in the prevailing culture. What I find fascinating is that, in the post
Covid world, these words accurately summarise changes we see happening all around us.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 023

A Global Reset is Underway

There can be no denying that and without a clear solution the future of medicine, and
the world is continuing to be in sight. Add to this the in some ways, the future of
hit by multiple shocks, be it the opportunities and challenges economic growth itself will
climate emergency, geopolitical because of the technological need to be reset. Therefore, as
disequilibrium, supply chain and revolution, especially the we end one financial cycle and
energy volatility, or persistent breathtaking advances in begin another, it is important to
inflation. What does make the artificial intelligence, and what take a step back and assess the
situation a permacrisis is the we have is a massive potential global economic situation and
fact that we have never had a reset in the existing global India’s position as part of this
time wherein all these events operating models. The future landscape.
were happening simultaneously of work, the future of learning,

India – The Beacon of Hope

While economic cycles are getting grow by approximately 15% to 1.6 India’s total market capitalisation
increasingly hard to forecast, Bn, but the per capita income to over 40 trillion dollars, which
there is little doubt that, India, will accelerate by over 700% to is, approximately a10X expansion
already the world’s 5th largest about 16,000 US dollars. On a from current levels.
economy, will become the world’s purchasing power parity basis,
I would urge you to reflect on
3rd largest economy well before this per capita metric will be 3
these incredible possibilities
2030 and, thereafter, the world’s to 4 times higher. The growth
ahead. India’s success story of
2nd largest economy by 2050. of this consuming middle class
balancing economic growth and
is expected to insulate us to
It is well understood that for any a vibrant democratic society has
quite some extent from global
economy to lay the foundation no parallel. My belief in the India
recessions as our growth is
of growth, a stable Government growth story has never been
primarily driven by domestic
is critical, and we have seen this higher.
demand. This, in turn, should
impact with the implementation
drive a logical surge in private and
of several structural reforms
government expenditures as well
that are critical for strong,
as attract more and more foreign
sustainable, and balanced growth.
direct investments.
This stability coupled with Our nation’s
India’s young demographics and And we have the statistics demographic
continued expansion of internal to prove it. Following our
demand is a potent combination.
dividend is
independence, it took us 58 years
to get to our first trillion dollars expected to drive
Our nation’s demographic dividend consumption and
of GDP, 12 years to get to the
is expected to drive consumption
and accelerate the growth of a
next trillion and just 5 years for accelerate the
tax paying society at record pace
the third trillion. I anticipate that growth of a tax
within the next decade, India will paying society at
over the next three decades. The
start adding a trillion dollars to its
United Nations Population Fund
GDP every 18 months – thereby
record pace over
(UNFPA) projects that India’s
putting us well on track to be a the next three
median age will be just 38 years
25 to 30 trillion-dollar economy decades.
even in 2050. Over this period,
by 2050. This will potentially drive
India’s population is expected to
 ADANI ELECTRICITY MUMBAI LIMITED
024 ANNUAL REPORT 2022-23

The Short selling Incident

Let me now address the short- their interests. The short-selling Committee was made public in
selling issue that impacted incident resulted in several May 2023.
Adani Group this year. On the adverse consequences that Adani
The Expert Committee did not
eve of our Republic Day, a US- Group had to confront. Even
find any regulatory failure. The
based short-seller published a though Adani Group promptly
Committee’s Report not only
report just as Adani Group was issued a comprehensive rebuttal,
observed that the mitigating
planning to launch the largest various vested interests tried
measures, undertaken by Adani
Follow-on Public Offering (FPO) to opportunistically exploit the
Group helped rebuild confidence
in India’s history. The report claims made by the short seller.
but also cited that there were
was a combination of targeted These entities engaged and
credible charges of concerted
misinformation and outdated, encouraged false narratives
destabilisation of the Indian
discredited allegations aimed across various news and social
markets. It also confirmed
at damaging Adani Group s’ media platforms. Consequently,
the quality of Adani Group’s
reputation and generating profits the Honourable Supreme Court
disclosures and found no instance
through a deliberate drive-down of India constituted an Expert
of regulatory failure or any breach.
of Adani Group stock prices. Committee to look into this
While the SEBI is still to submit
matter. It comprised individuals
Subsequently, despite a fully its report in the months ahead,
known for their independence and
subscribed FPO, Adani Group Adani Group remains confident
integrity. The report of the Expert
decided to withdraw and return of its governance and disclosure
the money to investors to protect standards.

Adani Group – Resilient, Stronger and Record Results for

FY 22-23
Over the past three decades, I continue to get stronger and are

82%
have learnt that growth comes now healthier than ever before.
with its set of challenges. Every The pace at which Adani Group
challenge Adani Group has faced has made acquisitions and turned
has made it more resilient. And them around is unmatched across
this resilience is vindicated by the the national landscape and PAT growth,
outcomes Adani Group delivers. has fuelled a significant part of
FY 22-23 operational and
expansion. Adani Group s’ national FY 22-23
and international partnerships are
financial results are as much
proof of its governance standards.
a testimony to Adani Group
This scale of international
success as testimony to Adani
expansions is validated by success
Group continued expansion of
in Australia, Israel, Bangladesh,
our customer base – be it on the
and Sri Lanka.
B2B side or the B2C side. Adani
Group s’ balance sheet, its assets,
and its operating cashflows
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 025

Some Group Highlights

Adani Group is now constituted volume increased by 37% 7. Adani Power Ltd. successfully
of 10 publicly traded entities, to 88.2 MMT vs 64.4 MMT commissioned the 1.6
each with its own set of several in FY 21-22 GW Ultra-super critical
successes, I have listed below Godda power plant and is
c. In the area of the media
some of the key highlights now supplying power to
business, AEL acquired New
across the various businesses. Bangladesh. This marks
Delhi Television Ltd (NDTV),
Adani Group’s entry into the
1. The Adani Group of and 49% stake in Quintillion
transnational power projects.
companies set new financial Business Media Limited.
performance records with 8. The transmission and
4. Adani Group is set to play
distribution businesses set
a. Total EBITDA grew by 36% a critical role in India’s
new benchmarks. Mumbai
to H57,219 Crore, Net Zero journey. The
distribution business
renewable energy business,
b. Total income grew by 85% achieved reliability of 99.99%
Adani Green Energy
to H2,62,499 Crore, and and was ranked the number 1
Limited, commissioned
discom by the Union Ministry
c. Total PAT grew by 82% to the world’s largest hybrid
of Power.
H23,509 Crore. solar-wind project of 2.14
GW in Rajasthan and the 9. Adani Total Gas Ltd, Adani
2. The Group’s deleveraging
operational renewable energy Group’s JV with TotalEnergies
program of US$ 2.65 Bn
portfolio grew by 49% to over expanded access to clean
for the Adani portfolio
8 GW, the largest operational cooking fuel to 124,000
companies was completed
renewable portfolio in India. households this year with
successfully and further
46% increase in revenue
improved our net Debt to run 5. The backward integration
to H4,683 Crore and is
rate EBIDTA ratio from 3.2x to plans in the renewable
transforming into a full
2.8x in FY 22-23. energy value chain
spectrum sustainable
progressed as planned.
3. Adani Group’s flagship energy provider with foray
company, Adani Enterprise a. A new solar module into e-mobility and biomass
Limited (AEL) continued to line plant of 2 GW was businesses.
successfully demonstrate its operationalised and
10. Lastly, on partnership front,
incubation capabilities with
b. The existing 1.5 GW Adani Group continues to
new businesses accounting
module line was upgraded attract global investment
for 50% of its EBITDA in
to 2.0 GW using TOPCON partners aligned to its long-
FY 22-23.
Cell Technology. term approach of building
a. Of the several projects and operating world-class
6. The ports business continued
underway, two of the key assets. In March 2023, Adani
to be the pillar of strength on
ones include the Navi Group successfully executed
all fronts. APSEZ continues
Mumbai Airport and the a secondary transaction with
to be amongst the most
Copper Smelter. Both are GQG partners of US$ 1.87 Bn
profitable port operators
on schedule. despite the volatile market
globally with port EBITDA
conditions.
b. The Integrated Resource margin of 70%.
Management (IRM)

It is all about a Better Tomorrow

The India in which we live today will continue to consolidate In closing, let me emphasise how
is the most exciting land of what it has built while looking grateful I am for all your support.
opportunities with blossoming at expanding its horizons. Adani It has been the greatest source of
entrepreneurial spirit. Every day Group’s consumers, investors, my strength and it is my promise
is a beginning of something new, shareholders and results speak to you that I will do my utmost to
innovative, and transformative. for themselves. On behalf of your uphold the trust you put in me
Adani Group has always believed Company, I will reaffirm and assure and my team.
in growth with goodness you that we are committed to the
Thank you.
philosophy and track record highest levels of governance and
speaks for itself. Adani group regulatory compliance. Gautam Adani
 ADANI ELECTRICITY MUMBAI LIMITED
026 ANNUAL REPORT 2022-23

Kandarp Patel
Managing Director, AEML

MANAGING DIRECTOR’S REVIEW

Our biggest
achievement is that
we are recognised as
a top ranking power
distribution company
in India today
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 027

Overview shift the resource mix from fossil has helped create change agents
I am pleased to inform you that fuels to clean energy, and long- in crucial positions. This has also
in the current financial year, we term renewable power purchase underlined our continuing journey
received the top ranking among agreements that will help reduce of ‘Growth with Goodness’.
power distribution companies costs for our customers.
The Company continued to
in India from the Power Finance In the financial year FY 22-23, we deepen vigilance across its service
Corporation and Ministry of achieved the best-ever reliability footprint, helping moderate
Power. This serves as a testament parameters in AEML’s history. Our transmission & distribution losses
to our unwavering commitment Average System Availability Index from around 7% to 6% within
to prioritising performance and (ASAI) reached 99.9957, while a year. In an effort to promote
achieving exceptional results. the System Average Interruption the use of Electric Vehicles
Our corporate vision of becoming Duration Index and System (EVs) within Mumbai, AEML
a distinguished leader in Average Interruption Frequency expedited the installation of EV
sustainability drives us to adopt Index were also promising. chargers through its Demand Side
innovative approaches that Along with this, our 220 kV Management (DSM) programme,
reinforce our commitment to Transmission Network exhibited contributing to the sustainable
setting industry benchmarks. good availability throughout the growth of electric mobility.
With the collaboration of our year. All of this became possible
stakeholders, we remain steadfast due to our team’s dedicated effort Steps towards digitalisation
in prioritising Environmental, recognised through prestigious At AEML, we are continually
Social and Governance awards by NCQC and Gold awards striving to improve the customer
aspects, thereby living up to at the ICQC. experience and make our services
our commitment to efficient, more accessible and convenient.
transparent, innovative, and
Targeted capital expenditure Reliability and trust are essential
responsible business practices. To generate faster operational in the digital age, and we are fully
efficiencies, the AEML committed to safeguarding them.
Excellence over size management focused on targeted We are embracing digitalisation
In the last five years, our capital expenditure, which yielded at all levels in the organisation.
transformative mindset has led us more value for the organisation. Customer satisfaction remains at
to become an organisation that Following these investments, the heart of everything we do, and
values excellence over size. As the incidence of faults declined, our goal is to provide a seamless
a result of this change, we have and systemic stability increased. and secure payment experience.
attempted to raise operational AEML consistently demonstrated We offer the flexibility of making
standards, improve reactivity to superior value for its retail and payments from the comfort of
unforeseen market dynamics, commercial consumers and their homes.
identify inefficiencies, improve helped narrow the pricing gap
those areas, and streamline with its principal competitor. At
complex business procedures. AEML, this virtuous cycle will be
accelerated by the Company’s
During the last financial year, focus on stronger working AEML procured
AEML procured renewable energy capital management, aiming for renewable energy
in a sizable quantum for the first efficiency at around 100%. in a sizable
time, and a commitment was quantum for the
made to its investors that 30% One of the fundamental initiatives
of its distributed energy would undertaken by our management first time, and
be renewable by the end of was to create a strong leadership a commitment
FY 23, which has been fulfilled. pipeline. It was created not only was made to its
for succession planning but also
We are continuously working to
to assemble teams of committed
investors that 30%
improve our share of renewable of its distributed
energies and aim to achieve 60% and capable professionals,
of the total distributed energy focused on tackling specific energy would be
in the coming years. The altered problems to produce significant renewable by the
resource switch represents the results. This has given young end of FY 23, which
minds the confidence to take on
start of a long-term trend to has been fulfilled.
significant responsibilities and
 ADANI ELECTRICITY MUMBAI LIMITED
028 ANNUAL REPORT 2022-23

We invested in cutting-edge
technologies with the objective
of enhancing customer delight
through best-in-class service.
AEML deployed chatbot/
WhatsApp BOT that empowered
consumers to avail themselves
of services from their residence.
The launch of Virtual Customer
Care Centers (VCCCs) helped
consumers engage with the
Company; divisional tele-calling
and SMS broadcast activities were
undertaken to attract consumers.
A kiosk system was implemented
to improve collection efficiency.
Kiosks were installed across all
AEML divisions; mobile kiosk vans
were launched too. Digitisation
of process interventions among
employees was ensured by the
sustainable adoption of My Work
& Asset Care Application. AEML
switched to data-based decision
making through the use of
dashboards and Power Business
Intelligence.
We installed an Auto Work
Allocation system along with
centralised and automated fleet
management. AEML implemented
the KRONOS system to streamline
non-executives’ attendance,
seamlessly integrating it with our
Work Management System for
enhanced workforce productivity.
AEML embarked on a Business
Process Re-engineering initiative,
targeting a 35% reduction in
non-value-added activities, and
maximising digitalisation across
processes.

AEML digital landscape

At AEML, our digital journey is in
full throttle. We are on a mission
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 029

to revolutionise operations, while also achieving Sustainable

optimise productivity and elevate Development Goals (SDGs).
employee well-being through
digital-driven strategies. We Future-ready
have harnessed the power of Our Company is scaling the
Artificial Intelligence and Machine utilisation of renewable
Learning to streamline our bill energy, expanding distribution,
verification process. We provide enhancing our footprint and
personalised bills on recycled deepening digitalisation for better
paper. Our digital core is as strong competencies. We, as a team,
as it gets. To improve visibility focus on converting challenges
and enhance coordination, AEML into opportunities by building
implemented an Integrated strategic solutions.
Project Management System. We
created a dedicated platform for I would like to take this
employees to incubate and share opportunity to express my
innovative ideas. heartfelt gratitude to our
employees for their unwavering
Business excellence efforts and cooperation. We are
grateful to all our stakeholders for
Business excellence is an integral
their continued trust and belief in
part of AEML’s culture and an
our organisation.
important component of the
Company’s strategic vision which As we move forward, we are
is to build infrastructure through excited to shape a resilient and
sustainable value creation. sustainable business system that
We have been continuously will enable us to create a positive
reinforcing and strengthening impact on our industry and
our commitment to it. Aligning society.
with this commitment, AEML has
built its foundation of excellence Kandarp Patel
by implementing world-class Managing Director, AEML
standards and is already
certified for 10 management
system standards. I’m proud to
announce that AEML is now
formally certified and compliant
with ‘Management of Single
Use Plastic’ (SUP) and is an
organisation with ‘Zero Waste
to Landfill’ (ZWTL). These new
certifications will help us take
our sustainable practices ahead
and contribute to local, national,
and global environmental
sustenance. This will help meet
our vision of ‘nation building’
 ADANI ELECTRICITY MUMBAI LIMITED
030 ANNUAL REPORT 2022-23

Kapil Sharma
CEO, AEML

CHIEF EXECUTIVE OFFICER’S MESSAGE

AEML became the

world’s first power
distribution utility
to offer Virtual
Contact Center
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 031

As we reflect on our journey, credible CRISIL AA+/Stable rating

it becomes evident that our from CRISIL Ratings, underlining
dedication to excellence, our financial strength and ability We are proud
innovation and sustainability to deliver consistent results. to maintain an
continues to be the driving
We have transformed our extraordinary
force behind our success. In an distribution
approach to customer service,
illustrious recognition of our
commitment to provide world
introducing diverse payment reliability in excess
class service to our customers,
modes and multilingual of 99.995%.
engagement channels, ensuring
AEML has been recognised as This impressive
that our customer experience
the number one utility company
is convenient and efficient. achievement
by the Ministry of Power. This
Our ‘SAMAPARK’ customer reflects our
recognition reinforces our
unwavering commitment to
engagement program exemplifies relentless pursuit
deliver top-tier services and
our commitment to putting our in providing
customers first. This initiative uninterrupted
enhance the quality of lives for
is designed to foster stronger
our customers.
relationships with our customers
power supply to our
Our unyielding focus on reliability by lending a listening ear and valued customers
represents the cornerstone of adapt to their evolving needs, even in the
our operations. We are proud ensuring their satisfaction most demanding
to maintain an extraordinary remains at the heart of our situations.
distribution reliability in excess operations.
of 99.995%. This impressive
Our investment in cutting-
achievement reflects our
edge technologies has been
relentless pursuit in providing
strategic, aiming to enhance
uninterrupted power supply to
customer delight through best-
our valued customers even in the
in-class service. AEML proudly
most demanding situations.
stands as the world’s first power
Operational efficiency remains at distribution utility to offer
the forefront of our endeavour, Virtual Contact Center, enabling
and we have made significant customers to interact with our
progress in this regard. We customer care executives via
reduced our Aggregate Technical video calls, adding a personalised
and Commercial (AT&C) losses to touch to their interactions with
well below 6%, showcasing our Adani Electricity. To simplify
dedication to optimise processes the customer experience, we
for the benefit of our customers introduced Advanced Self-help
and stakeholders. Kiosks. These kiosks provide
enhanced capabilities such as
Our financial performance
cash and cheque payments, bill
continues to be strong, with
downloads, complaint registration,
revenues for FY 22-23 reaching
and even video calls. Our AI-
H8,692 Crore and EBITDA
powered chatbot ‘Elektra’ has
touching H2,381 Crore, showcasing
been further enhanced with
our robust financial position and
Natural Language Processing
ability to deliver sustained growth.
(NLP) and Artificial Intelligence
We are pleased to have earned a
 ADANI ELECTRICITY MUMBAI LIMITED
032 ANNUAL REPORT 2022-23

(AI) technology for a superior As part of our commitment to align with the evolving needs
user experience. We are also corporate social responsibility, of our organisation, enabling
making significant strides toward we strive to make a positive us to be more agile, data-driven
enhancing energy efficiency with difference in the lives of and responsive to the dynamic
the implementation of a smart individuals and communities, demands of our workforce.
metering ecosystem, involving while contributing to the
A recognition of our innovative
the installation of smart meters sustainability of our planet. Our
efforts resulted in the Golden
for all our consumers. With CSR programmes focus on areas
Peacock Innovation Management
features like real-time meter such as education, sustainable
Award in 2022 in the Power
reading, prepaid metering, net livelihood, and community
Distribution category, affirming
metering for solar customers, infrastructure development.
our dedication to pioneering
and remote disconnection / By leveraging our resources,
solutions in the power distribution
connection on request, our smart expertise and partnerships, we
sector. In addition to this, we
meters empower customers to aim to create lasting social impact
received the IMC RBNQA Making
monitor and manage their energy and drive positive change.
Quality Happen Award. We
consumption effectively.
In our relentless pursuit of celebrate this achievement as it
In our unyielding commitment innovation and the infusion of underscores a relentless pursuit of
to combat climate change, we fresh perspectives, we embraced innovation, quality and continuous
achieved a remarkable milestone: a multitude of bright minds into efforts to raise the bar in all
significantly increasing our the AEML family. We are proud aspects of our operations. Our
renewable energy mix from 8% to announce that we recruited achievements over the past year
to an impressive 30.04% within 121 young talents from India’s top serve as a foundation for even
our distribution network during management and technology greater successes in the future.
FY 22-23. Moreover, we undertook institutes, reinforcing our
I extend my heartfelt gratitude
several initiatives aimed at commitment to a dynamic, diverse
to our employees, customers,
achieving our long-term net and forward-thinking workforce
shareholders and partners for
zero targets, aiming to decouple that will drive innovation and
their unwavering support on this
our growth from emissions. The propel us to new heights.
remarkable journey. Together, we
results are already evident, with Initiatives such as A-Marvels,
will continue to illuminate lives
our emissions intensity in tCO2e/ Takshashila, and Fulcrum were set
and power progress.
EBITDA reduced by an impressive in motion to nurture and develop
38.32%. individuals with exceptional
Kapil Sharma
potential. These programmes are
Our commitment to sustainability CEO, AEML
designed to shape the leaders of
extends to waste management as
tomorrow, empowering them to
well. AEML proactively established
drive innovation, steer progress,
robust systems to manage plastic
and uphold our values. We also
and waste effectively, resulting
maintained an extensive focus on
in a certification for Zero Waste
HR technology and automation
to Landfill (ZWTL) and Single Use
of HR processes. This digital
Plastic (SUP).
transformation allows us to
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 033

A recognition
of our innovative
efforts resulted in the
Golden Peacock Innovation
Management Award in 2022
in the Power Distribution
category, affirming our
dedication to pioneering
solutions in the power
distribution sector
 ADANI ELECTRICITY MUMBAI LIMITED
034 ANNUAL REPORT 2022-23

Kunjal Mehta
Chief Financial Officer

CHIEF FINANCIAL OFFICER’S REVIEW

India’s power distribution

sector represents one of the
most attractive long-term
investment opportunities
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 035

Overview a leading economic power. Late Payment Surcharge and

From 2010 to 2022, India During the last few years, the Related Matters Rules, 2022:
experienced a power demand Indian Government embarked In June 2022, the Ministry of
surge that nearly doubling on a number of initiatives to Power (MoP) issued a Late
demand to 1,492 Bn units. During strengthen the power distribution Payment Surcharge and Related
this period, the nation’s power sector to its full potential. Matters Rules, 2022 to address
generation capacity also saw the growing unpaid dues to
National Infrastructure Pipeline:
substantial growth, growing from generation and transmission
An aggregate investment of
156 GW to 412 GW (February companies. These rules
approximately H102 Lakh Crore
2023). introduced a provision for
has been outlined from fiscal year
converting the outstanding dues
Across the last decade, the 2020 to 2025 with approximately
of power distribution companies
Indian government focused on 24% of this allocation designated
to these entities into equated
strengthening the health of for the energy sector. The
monthly installments, resulting in
the power distribution sector, National Infrastructure Pipeline
a gradual settlement.
convinced that any weakness at will mobilise investments for
the last mile would prevent the critical greenfield and brownfield Energy Audit: The regulations
full potential of the sector from projects across various sub- for the Procedure and Frequency
being realised and in turn, affect sectors within the economic and of Energy Audit (Accounting) in
economic growth. The result of social infrastructure. electricity distribution companies
the government’s focus translated were released in October 2021.
UDAY scheme: The UDAY scheme
into a decline in AT&C losses to Power distribution utilities are
in 2015 had components aimed
16.5% in FY22 and a projected mandated to perform a quarterly
at reducing AT&C losses and
13.5% in the foreseeable future. energy accounting and annual
increasing coal production.
energy audit (to be carried out by
Correspondingly, billing efficiency The scheme aimed to improve
increased more than 300 bps the operational efficiency and
during FY 20-22. Collection financial stability of all discoms or
efficiency strengthened by over power departments through smart
500 bps (18 discoms). Cash metering and loss-based load
shedding.
collections relative to customer AEML is respected
billing improved from 92.7% to Revamped Distribution Sector as the most modern
96% between FY 19-20 and FY 21- Scheme (RDSS)/ Smart Metering: and competitive
22. The result is that the broad Launched in July 2021 with a
discom sector is turning around budget of H3.03 Crore until FY
power distribution
with positive implications for 25-26, the RDSS aims to decrease utilities in India,
the country’s power sector eco- pan-India AT&C losses from 21.5% a perspective
system. (Source: Economic times, to 12-15% (eliminating the ACS- validated by the
MoP) ARR gap). A key component of respected global
the RDSS scheme comprises consultancy firms/
Policy support the installation of prepaid smart
As India aspires to emerge as a meters on a pan-India basis. The
agencies
US$ 5 trillion economy by 2024, Government has set the target of
the power sector is poised to installing 250 Mn smart meters.
empower the country become
 ADANI ELECTRICITY MUMBAI LIMITED
036 ANNUAL REPORT 2022-23

certified energy managers and ƒ Financial sustainability (75% ƒ External environment (12%
energy auditors accredited by the weightage): Includes metrics such weightage): Includes metrics
Bureau of Energy Efficiency). as ACS-ARR gap (cash adjusted), to cover the impact of state
days receivable, days payable to government action and regulator
Industry standing generating cum transmission action such as subsidy realised,
AEML is respected among the companies, adjusted Quick Ratio, loss takeover, government
most modern and competitive debt service coverage ratio (cash- dues, auto pass-through of fuel
power distribution companies in adjusted) and leverage (cash- and adherence to tariff cycle
India, a perspective validated by adjusted). timelines.
the respected global management ƒ Performance excellence
consultancy McKinsey for Competitive driver
(13% weightage): Includes
the following reasons (a part metrics focusing on operational At AEML, we invested in
of the 11th Integrated Rating performance, such as distribution digitalisation to take our business
methodology): loss (SERC-approved), billing ahead.
efficiency, collection efficiency
and governance.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 037

Over the years, we invested To simplify customer experience,

in digitalised bill generation the Company introduced
and payments. We partnered Advanced Self-help Kiosks. The Company
UPIs and payment gateways These kiosks provide enhanced has a unique fully
to facilitate customer payment capabilities such as cash and funded capex
ease. We advanced meter cheque payments, bill downloads, programme through
reading capabilities to reduce bill complaint registration and even
errors. We improved operational video calls.
a sustanaibility-
efficiencies through state-of- linked US$ 2 Bn
the-art technology interventions Financial and operating Global Medium
(SCADA). We automated workflow highlights Term notes (GMTN),
management with a digital-first During the year under review, the the first such
approach that has evolved our
competitiveness and prepared us
Company’s operating EBIDTA was MTN program by
for tomorrow.
H2,380.52 Crore and PBT stood at an energy utility
H203.64 Crore.
company in India.
At AEML, we recognise that The Company received an order
sustainable competitiveness from MERC with revised ARR and
is derived from financial tariff, allowing a liquidation of H18
competitiveness. Bn in regulatory deferral balance The Company was consistently
The Company has a unique over two years. Despite a marginal ranked as per Investment Grade
fully funded capex programme rise in the tariff, AEML remained ratings, among the highest in its
through a sustanaibility-linked the most competitive among the sector; it is the only Indian discom
US$ 2 Bn Global Medium Term Discoms operating in the region. with an IG rating by leading global
notes (GMTN), the first such rating agencies.
There was 13.52% YoY growth in
MTN program by an energy terms of units sold at 9,062 Mn The Company showed consistent
utility company in India. This units versus 7,972 Mn units in the compliance with stipulated
ensures continuous investments previous year on account of an covenants across business cycles.
in distribution network uptick in energy demand.
infrastructure and superior The Annual Assurance report
operating performance The Company achieved 100.78% on GHG Emission Intensity and
collection efficiency for FY 22-23 Renewable power mix was issued
The complement of these as against 103.41% during FY 21- by an independent expert DNV
capabilities has helped moderate 22. E-payment as a percentage Business Assurance, confirming
the overall cost structure per unit of total collection was 75.0% in the achievement of sustainability-
of power delivered, resulting in a FY 22-23 as against 69.73% in linked targets under the SLB
decline in absolute tariff in the the previous year driven by digital Bonds issued by the Company.’
five years leading to FY 22-23. In adoption push.
turn, this provides the Company Kunjal Mehta
with a wider room to broadbase Distribution loss for FY 22-23 was
5.93% as against 6.55% for the Chief Financial Officer
its market share in a competitive
market, the basis of increased FY 21-22.
sustainability.
The Company embarked on H1,450
The result is that AEML Crore of capital expenditure
possesses a credible financial completely through internal
foundation on which to build accruals and no additional debt.
towards sustainable profitability, The Regulatory Asset Base (RAB)
reinforcing its position as the top increased by 6% to H7,972 Crore
ranking Indian power distribution over the previous year.
company.
 ADANI ELECTRICITY MUMBAI LIMITED
038 ANNUAL REPORT 2022-23
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 039

PART 2

HOW WE ARE
BUILDING FOR
TOMORROW
 ADANI ELECTRICITY MUMBAI LIMITED
040 ANNUAL REPORT 2022-23

This is what
we mean
by ‘Building
a better
t morrow’
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 041

Building Better Tomorrow

We are building our Cleaner India We are building our business

company around an to deepen our positioning as
enunciated governance India moving to alternative a responsible global citizen
framework energy forms
We are broadbasing from
We are making progressively More empowered India one fuel to alternatives
larger investments in our
More competitive India We are building our business
business
to enhance our licensee
Accelerated India
We are responding with area’s competitiveness
speed to emerging sectorial Rurally transformed
opportunities We are building to moderate
Lower income equity cost per unit of power
We are doing so with a delivered, enhancing
complete ecological respect Healthier India customer delight
for sites and hinterlands
More informed India We are building so that
We are investing our net outcome enriches
in advanced digital More secure India livelihoods and enhances
technologies prosperity
More proactive India
We are committed to We are building with
moderate the gestation More ecologically the objective to deliver
between investment and sensitised India considerably superior
returns outcomes over convention

We are building among the We are building with

largest Indian capacities for the objective to deliver
infrastructure and services, positive financial outcomes
addressing existing and at scale, strengthening
prospective needs reinvestments and business
sustainability
We are perpetually
rethinking our business
to position ahead of our
industry curve

We own a responsibility in
building showcase power
distribution business
directed to take India ahead
 ADANI ELECTRICITY MUMBAI LIMITED
042 ANNUAL REPORT 2022-23

What India will be

like in 2030

DRIVEN BY
RENEWABLE ENERGY SUSTAINABLE
DEEPER
AND CLEANER FUELS
DIGITALISATION EMPHASIS
ENHANCED
FOOTPRINT ON NEW
PER CAPITA
INCOME
PRODUCTS
INCREASED ENERGY
CONSUMPTION
SUSTAINED
HIGHER POPULATION BIG DATA FOR
ASPIRATIONS GROWTH CONSUMER ANALYTICS
AMONG INDIANS

EXTENSIVE
IMPROVED QUALITY OF WOMEN’S
LIVING HIGH FARM EMPOWERMENT
INCOMES
GREATER AUTOMATION IN DERIVED
MOST LIVES THROUGH
SUPERIOR
TECHNOLOGY
SUPERIOR REDUCED INCOME
INTRA-NATION INEQUALITY; HIGHER
CONNECTIVITY FINANCIAL INCLUSION

SUPERIOR CONSUMER CLEANER

SERVICE DELIVERED BY URBAN AIR
POWER UTILITIES BETTER
HEALTHCARE;
INCREASED
LIFESPANS HIGHER
ENHANCED NATIONAL LARGER
EXPORT
COMPETITIVENESS HOMES
INCOME
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 043

This is a picture of
tomorrow’s India

INDIA COUNTRY INDIA’S

PROJECTED TO EMERGE INDIAN PROJECTED
AS A US$26 TRILLION
ECONOMY BY 2047
RETAIL POPULATION OF
INDUSTRY 1.51 BN BY 2030
(US$2
TRN, 2032)
LIKELY TO
BECOME
INDIA’S WORKING-AGE
TOP THREE POPULATION LIKE TO
INDIA IS
LIKELY TO IN DEMAND REACH 1 BN BY 2030
EMERGE AS THE GROWTH
THIRD-LARGEST
ECONOMY BY
2030

INDIA LIKELY TO
ATTRACT TOTAL
FDI OF US$ 475
INDIAN HOUSEHOLD BN IN THE NEXT 5
INCOME EXPECTED TO RISE YEARS (FY 22-27)
40% BY 2030

INDIAN INDIA LIKELY

HOUSEHOLDS TO CONTINUE
TO BE THE
LIKELY TO GROW YOUNGEST
INDIA’S BILATERAL
TRADE AGREEMENTS
FROM 289 MN IN COUNTRY. TO INCREASE
2020 TO 354 MN WITH DEVELOPED
COUNTRIES
BY 2030
(Sources: Economic Times, Live Mint, IBEF)
 ADANI ELECTRICITY MUMBAI LIMITED
044 ANNUAL REPORT 2022-23
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 045

PART 3

HOW WE HAVE BUILT

ONE OF THE MOST
EXCITING POWER
DISTRIBUTION
COMPANIES IN INDIA
 ADANI ELECTRICITY MUMBAI LIMITED
046 ANNUAL REPORT 2022-23

THE BIG PICTURE

At Adani Electricity Mumbai

Limited, we are focused on
emerging as a power distribution
sector benchmark.
We have focused on infusing
cutting-edge technologies,
moderating costs, infusing clean
energy, drawing out a long-term
capital expenditure plan, enhancing
consumer delight and initiating a
virtuous growth cycle.
In doing so, we have embarked on
a journey to build one of India’s
fastest growing, most respected
and most loved major power
distribution companies across the
long-term.
Addressing the needs of today.
Building a better tomorrow.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 047

AEML.
Rated as
India’s number
one p wer
distribution
company.
Rated by Power Finance Corporation
and the Ministry of Power,
Government of India in FY 23
 ADANI ELECTRICITY MUMBAI LIMITED
048 ANNUAL REPORT 2022-23

How we transformed with

speed in five years (FY 2018-
2023)

Power From core base From 55% technical

load to flexible minimum level to
generation base load 30%

Enhanced flexibility Enhanced resource Enhanced imported Transition from

to ramp generation use flexibility coal use room from the use of fossil
up or down (imported or 25% to 70% fuels to renewable
domestic coal) energy

Consumer Transition from Transition from Transition

cash collection cash collection to from direct
service centres to diverse payment engagement to
standalone 24x7 modes (cheque, app engagement
kiosks cash and credit
card)

Transition from Transition from bills Transition from Transition from

cost-plus pricing to in single language physical-only long commutes
cost-minus pricing to multilingual bills engagement to to pay bills to not
24x7 multilingual having to travel
toll-free numbers more than 2 km to
and video calling being serviced
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 049

Financial Transition from Transition from Transition from

insourced growth addressing the increased working
discipline to external net needs of today to capital needs to
worth infusion achieving financial stable working
closure until 2030 capital finding
revenue growth

Systemic Transition from Transition from the Transition from

relatively high T&D use of conventional manual meter
discipline losses to moderated technologies to the checking to the use
losses (March use of advanced of smart meters
2019 distribution sensors, artificial
loss was 7.85% intelligence and
and March 2023 machine learning
distribution loss
was 5.93%)
 ADANI ELECTRICITY MUMBAI LIMITED
050 ANNUAL REPORT 2022-23

At AEML, we are not

just another power
distribution company.
We are different
because we care deeper
for our consumers

Ensure adequacy
Evaluation of Internal
and operating
financial controls
effectiveness of IFC
Directors Internal Audit Committee
Financial
Control
Satisfy themselves
To comment on
on the robustness
adequacy and operating
of internal financial
effectiveness of IFC
Auditors Independent Directors controls framework
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 051

Enhanced customer Digitisation of payment Manpower-based /

experience services SLA-based contract
AEML invested in cutting- The Company suspended all to productivity linked
edge technologies with the physical bill collection centres performance-based
objective to enhance customer during the pandemic-induced contract (PLPBC)
delight through best-in- lockdown. To circumvent a
The inclusion of PLPBC
class service. The Company probable payments challenge,
(Productivity linked
created multiple touch points the Company commissioned
Performance-Based Contract)
to engage with consumers payment kiosks across all
in outsourced vendor
that made it possible to AEML divisions; mobile kiosk
contracts helped improve
provide service within the vans were launched. The result
process efficiency and quality.
customer’s arm length. AEML of this timely shift is that
deployed chatbot/WhatsApp 100% payments began to be
BOT that empowered received digitally (including
consumers to avail services kiosks). The implementation
from their residence. During of digital payments was done
the pandemic, the business through partnerships with
leveraged its sophisticated multiple payment service
technology platform without providers, promoted through
compromising consumer digital campaigns.
service. The launch of Virtual
Customer Care Centres (CCCs)
helped consumers engage
with the Company; divisional
tele calling and SMS broadcast
activities helped attract
consumers.

Process improvement Shift in maintenance Digitisation of processes

The Company engaged in strategy To ensure a sustainable
a holistic transformation of The Company shifted from adoption of digital
business processes using scheduled to predictive interventions among
automation and data-driven maintenance, promising cost employees, My Work &
decision making, leading to savings over routine-based Asset Care Application was
improved process efficiency maintenance. implemented. AEML switched
and quality. to data-based decision making
through the use of dashboards
and Power BI

Center of Excellence
AEML carved out Centers of Excellence in fields like metering, billing and
collection as well as technology adoption for employees and customers
by providing services at their fingertips like BOT and mobile kiosks etc.
 ADANI ELECTRICITY MUMBAI LIMITED
052 ANNUAL REPORT 2022-23

REPORT PROFILE

The Company’s approach

to Integrated Reporting

In this year's Integrated financial aspects include the financial performance of

Report, we showcase how Company’s operations and material subsidiaries and
AEML enhances value for its its Environmental, Social and consolidated structured
stakeholders. Through this Governance (ESG) commitment. entities. The ESG section
Report, the Company has provides information regarding
The statutory section of the
disclosed financial and non- stakeholder relationships,
report is an account of the
financial performance coupled material matters, risks,
financial, risk and capital
with insights into governance, opportunities and forward-
management disclosures
strategy, performance looking strategy.
supported by the annual
and outlook. The key non-

Standards and Framework prepared following the Indian Materiality

The narrative sections of the Accounting Standards. These The ability to generate value in
Report adhere to the guidelines standards provide a framework the near, medium and long-term
set by the International Integrated for the recording, measurement, is influenced by various factors -
Reporting Council (IIRC). These and presentation of financial external factors like the operating
sections provide a comprehensive information in a consistent and environment, proactive approach
overview of the Company's transparent manner. By adhering to risks and opportunities as
performance and activities. On to these standards, the Company well as strategic choices. This
the other hand, the statutory ensured that its financial Report provides a comprehensive
sections, including the Directors' statements accurately reflected understanding of the key issues
Report and its annexures such as its financial position, performance considered significant, offering
the Management Discussion and and cash flows. valuable context surrounding
Analysis (MDA), were prepared in material topics. By addressing
accordance with the Companies
Boundary these material topics, the
Act of 2013 and its associated The Report covers relevant Company aims to enhance
rules and the revised Secretarial information about Adani transparency and facilitate a
Standards issued by The Institute Electricity Mumbai Limited better understanding of the
of Company Secretaries of India. (AEML), providing comprehensive business and its impact on value
insights into AEML's distribution creation.
The financial statements activities, operations and related
presented in the report were information.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 053

Board and management demonstrating their commitment To ensure responsible and

assurance to address all significant matters sustainable business practices,
and present a comprehensive the Company closely monitors
We implemented a comprehensive
and unbiased overview of the the impacts and outcomes of
approach to assurance, based
Company's performance and its operations on the seven key
on assessing risks, to ensure the
effects. The Board collectively capitals: financial, manufactured,
accuracy and reliability of our
believes that the report accurately intellectual, human, social and
operations. This includes internal
represents the integrated relationship, brand and natural.
controls, management assurance,
performance of the Company and This monitoring process involves
compliance reviews, internal
its impact. active stakeholder engagement
audits and the engagement of
and comprehensive risk
external service providers. These Stakeholders are encouraged
evaluation. By engaging with
measures collectively support to examine the report and offer
stakeholders and evaluating
the integrity and correctness of valuable feedback. We value
risks, the Company gains valuable
the information disclosed in our stakeholder input and consider
insights into the effects of
published reports. it integral to our commitment
business activities on these
to transparency and continuous
To fulfill their respective capital resources.
improvement. To provide
responsibilities, various
feedback, stakeholders can reach The Company understands
committees, including Audit,
out to [email protected]. that the ability to create long-
Stakeholder Relationship,
We welcome and appreciate the term value is intricately linked
Risk, CSR & Sustainability,
engagement of our stakeholders to the availability and efficient
Remuneration & Nomination, and
in shaping our reporting practices. utilisation of these capitals.
Securities Transfer, review specific
These capitals serve as inputs
reports and recommend them Capitals and value creation for value-adding activities and
for approval by the Board. For
As an integrated electric utility, the outcomes we achieve are
the financial year 2023, DNV GL
the Company holds a significant measured by the value generated
Business Assurance India Private
responsibility in the nation's and the positive impacts created.
Limited conducted assurance
development, the well-being By recognising and optimising
across select environmental,
of its people and the growth of the interdependencies between
social, and governance indicators
the businesses. The Company these capitals and operations,
to validate their accuracy.
recognises the importance of the Company strives to achieve
The Board of Directors and nurturing relationships with sustainable value creation
management team acknowledge stakeholders. The overarching while meeting the needs and
their responsibility for ensuring objective is to create a positive expectations of stakeholders.
the credibility of this report. impact on society while
They have actively engaged generating value for shareholders.
in a thorough review process,
 ADANI ELECTRICITY MUMBAI LIMITED
054 ANNUAL REPORT 2022-23

Capitals and their impact

The various Capitals influencing our business and their impact

Financial Capital Manufactured Intellectual Capital

Capital

What it is Financial resources that The Company’s Intangible, knowledge-

the Company already tangible and intangible based assets
has or obtains through infrastructure used for
financing value creation through
business activities

Management Create value for Resilient assets and Consider innovation as a

approach shareholders through equipment to deliver strategic element of the
sustainable growth services to customers Company

Significant ƒ Balanced and ƒ Number of products ƒ Digitalisation for

aspects diversified growth and brands efficiency
ƒ Sound financial ƒ Other assets ƒ Disruptive technology
structure and business models
ƒ Operational excellence ƒ Collaborate with
partners for innovative
ƒ Sustainable outcomes
business solutions
and dividends
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 055

Human Capital Natural Capital Brand Capital Social and

Relationship
Capital

Employee knowledge, Natural resources Enhanced trust in Ability to share, relate

skills, experience and impacted by the efficacy, consistency, and collaborate
motivation Company’s activities availability and with stakeholders,
affordability promoting community
development and
wellbeing

ƒ Availability of a ƒ Ensure sustainable ƒ Creating brands ƒ Promote trust

committed and use of natural from scratch and with stakeholders,
qualified workforce resources and sustaining them over improving the quality
offers an inclusive contribute to time of life of people in
and balanced work combating climate the areas of presence
ƒ Unique value
environment change
proposition ƒ Wellbeing of the
workers and dignity
ƒ Anytime product
of workers
availability
ƒ Zero incident
programme

ƒ Employee well-being ƒ Climate change ƒ Brand and brand ƒ Stakeholder

extensions engagement
ƒ Talent management ƒ Preservation of
biodiversity ƒ Strong recall ƒ Community support
ƒ Diversity, equal
programmes
opportunity ƒ Management of
environmental ƒ Human rights
ƒ Learning and
footprint
development ƒ Brand management
ƒ Operational
ƒ Transparency and
excellence and
good governance
energy efficiency
ƒ Corporate reputation
 ADANI ELECTRICITY MUMBAI LIMITED
056 ANNUAL REPORT 2022-23

Strong Effective
governance risk
practices management

Pillars of value
creation

Skilled and Environmentally

experienced sustainable
people operations

Deep culture of
innovation through
technology
advancements
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 057

AEML’s growth platform

Financial Manufactured Human
capital capital capital

EBITDA: H2381 Crore Operational transmission Employees: 4429

lines: 573 ckm
ROCE: 9.30% Age profile 24% less than
Distribution area and 45 years
Debt service coverage ratio:
consumers: 400 sq km
1.75 Training 1.75 Lakh person
(AEML), 84 sq km MUL and
hours
Debtor’s turnover ratio: 7.89 3 Mn+ consumers

Outputs Outputs Outputs

Responsible financial Acquisitions and Recruiting, developing
growth and shared sustainable expansion of and caring for diverse and
profitability transmission lines inclusive workforce

Intellectual capital Natural capital Social and

Relationship capital

Real-time tracking 100% waste water is recycled Vendors: 4300+

and reused
Brand name Primary customers: ~3 Mn
For FY 21-22, total waste
Business processes: Agile Community lives touched:
water including industrial
and synergy 12 Mn+
& sewage generated &
IT enablement in project Recycled, Reuse was 266827
and operations Cu.M
E-vidyalaya (Skillsoft For FY 22-23, total
Percipio) for corporate wastewater including
learning industrial and sewage
generated and Recycled,
AE – Varsity, a specialised
Reuse was 256482 Cu.M
platform for AEML related
courses Afforestation: 36.2 hectares

Outputs Outputs Outputs

Differentiating solutions Preserving biodiversity Livelihood development,
through responsible and renewable resources, climate action (water
innovation reducing water and energy harvesting and energy) and
consumption, emissions social infrastructure
and waste
 ADANI ELECTRICITY MUMBAI LIMITED
058 ANNUAL REPORT 2022-23

How we engage with

our stakeholders

Overview
We take an inclusive, collaborative build trust and respond to the are based on a commitment to
and responsive approach opportunities and challenges the sustainable value creation. A
to developing stakeholder markets throw up while carrying planned system of engagement
relationships, while empowering out requisite changes in our ensures timely communication of
our businesses to deliver local internal processes and systems. precise and relevant information
engagement in a transparent Our active engagement with to, and interaction with, each
way. Regular engagement with stakeholders to understand their stakeholder group in a consistent
our stakeholders enables us to requirements and address them manner.

Stakeholder Why they are Their interests Mode, frequency of Topics of Activities
group important engagement engagement

Employees Our employees ƒ An inclusive ƒ Periodic engagement ƒ Local Engagement

are at the work culture with the CEO employment is fostered
center of all generation through regular
ƒ A spirit of ƒ Senior management
our operations. interactions
innovation while interactions ƒ Happy and
Their between senior
interacting with productive
collaborative ƒ Quarterly appraisals management
a unique set employees
skill and and employees.
of markets and ƒ Performance
expertise are ƒ Employee We conduct
customers Management System
essential for growth and various programs
our growth ƒ Enriching ƒ Sustainability portal development to develop the
career and skill sets of our
ƒ Intranet ƒ Human rights employees. We
development
opportunities ƒ Online issues ƒ Safety also focus on
resolution employee welfare
ƒ Diversity and by gauging
ƒ Call center for support equal opportunity employee
expectations and
ƒ Direct communication ƒ Community
conduct specific
with senior leaders initiatives
engagement
ƒ Grievance mechanism events for
different groups.
ƒ Whistle blower
(Integrity cases) The Company has
adopted an open-
ƒ Virtual engagement door policy where
initiatives any employee
ƒ Health initiatives – has access to
physical and mental the Company’s
leadership at any
ƒ Health portals point of time
ƒ Project linked
engagement surveys
ƒ Recognitions through
the portal
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 059

Stakeholder Why they are Their interests Mode, frequency of Topics of Activities
group important engagement engagement

Partners and Our operations ƒ Open, ƒ Operational review – ƒ Brand – supplier ƒ To ensure
suppliers are closely transparent Ongoing engagement and quality and
linked with and consistent development compliance
ƒ Engagement forums –
the timely process with applicable
Ongoing ƒ Compliance
availability of environmental,
ƒ Willingness to with regulatory
services that ƒ Specific category and social and
adopt supplier- / statutory
we source. service partner meet – governance
driven innovation requirements
These, in turn, Annual standards,
have a material we engage
impact on the ƒ Supplier satisfaction closely with our
efficiency of survey – bi-annual suppliers for
our service ƒ New supplier portal audits, training
delivery and knowledge
exchange

Investors and As providers of ƒ Safe, strong ƒ Quarterly investor ƒ Credit rating ƒ We strive
shareholders capital, they and sustainable calls/ presentations to maintain
ƒ Sustainable
are key to our financial profitability
ƒ Annual General business model
growth and performance with cost
Meeting
expansion ƒ Governance management
ƒ Progress on
plans ƒ Integrated Annual efforts for better
environment, ƒ Return on net
Report efficiency and
social and worth / Earnings sustainable
governance ƒ Annual Sustainability per share growth
matters Report
ƒ Communication
with investors
 ADANI ELECTRICITY MUMBAI LIMITED
060 ANNUAL REPORT 2022-23

Stakeholder Why they are Their interests Mode, frequency of Topics of Activities
group important engagement engagement

Regulators Key for ƒ Strong capital ƒ Continued ƒ Credit rating ƒ We focus

and ensuring base and liquidity engagement and on creating a
ƒ Governance
policymakers compliance, position representation business-friendly
interpretation ƒ Transparency environment that
ƒ Robust ƒ Quarterly and annual
of regulations and disclosures supports overall
standard of compliance reports
and industry growth
conduct ƒ Investor security
uninterrupted ƒ Performance reports
operations ƒ Positive shared with the ƒ Representation
sustainable Securities and Exchange with regulators
development, Board of India
environmental ƒ ESG aspects
ƒ Workshops
and social
ƒ Panel discussions
with nodal industry
bodies and industry
associations
ƒ Steering Committees

Customers Customer ƒ Differentiated ƒ Project feedback ƒ Digital ƒ Our endeavor

feedback, or service offering through surveys disruption is to provide
as we call it, – operational and our customers
ƒ Digitally ƒ Customer need
the Voice of mid‑level contacts – value-added
enabled identification and
Customer, is Quarterly and competitive
and positive satisfaction
key to process solutions tailored
experience ƒ Customer experience
improvements, ƒ Brand to the present
survey – CXO and senior
quality and future needs
level contacts – Annual ƒ Customer
enhancement, of their end users
service privacy
ƒ Customer visits –
performance Quarterly ƒ Product portfolio
and cost
optimisation ƒ Steering Committee
meetings for big
customers – Quarterly

Communities A harmonious ƒ Positive, social ƒ CSR initiatives – ƒ Local ƒ We believe

and NGOs relationship and economic Ongoing employment in developing
with the contribution generation and steering
ƒ Volunteering activities
communities long-term
ƒ Support for the ƒ Gender equality
where we ƒ Community need relationships
long term Climate
operate is identification – ƒ GHG emissions with our local
change and
key to our stakeholders
environmental ƒ Ongoing as per CSR ƒ Waste
social license across the globe.
issues project requirement management
to operate; The Company
they are our ƒ Community ƒ Community spearheads
partners in engagement initiatives initiatives all activities
progress related to its
ƒ Impact assessment contribution to
studies society

Stakeholder engagement process

Identify Customise Priorities Validate Present

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 061

The pillars of AEML’s

transformation
Reinvestment
Flexibility
Automation
Engaging stakeholders

Culture
Consumer protection
Transformative
approach

Customer first

Mindset
Achieving more
with less

Strategic planning

Affordability
Renewable energy

Governance
 ADANI ELECTRICITY MUMBAI LIMITED
062 ANNUAL REPORT 2022-23

Enhancing
1 affordability
In the power distribution sector, overall costs and provided the increased coal costs, it switched
a consistent feature in consumer Company with room to extend from imports to domestically
engagement is rising costs cum cost declines into lower consumer accessed resource alternatives
tariff. tariff. The lower tariff , in turn, to moderate the cost impact.
encouraged consumers to switch Besides, the Company replaced
When a new management
to AEML’s service or enhance their the use of fossil fuel with
assumed control at AEML, one
consumption. renewable energy. The result
of the first challenges lay in
is that the Company increased
surprising consumers with the Within just two years of assuming
tariff by a mere 2% (even as its
opposite – a decline in costs and managerial and ownership
competitor increased tariff by
tariff. control, AEML made an
11%).
unprecedented reduction in tariffs
This was largely unprecedented;
by 17%, strengthening its value By under-performing inflation and
consumers had been exposed to
proposition. competing tariff, AEML enhanced
steady costs across a period of
the affordability of its service.
time; tariff had never declined. In FY 2022-23, this commitment
to enhance consumer value Building a better tomorrow
AEML addressed this challenge
was validated yet again. Even as not just for itself but for all its
by locating wasteful processes
the Company was affected by consumers.
and expenditure. This moderated

Making a switch to renewable

2 energy a reality
In India, there is a priority in unit and an average cost saving in addressing the challenge of
making renewable energy integral of H3.20 per unit when compared climate change.
to the lives of its people. with the peak cost incurred
Three, the Company addressed
through the purchase of imported
AT AEML, we became one of the the promise made to stakeholders
coal.
first power distribution companies to increase the share of renewable
to make this a reality in FY 22-23. By infusing renewable energy energy in its mix to 30% by 31st
within its energy mix, AEML March 2023.
During the year under review,
achieved three objectives.
the Company accelerated the This initiative has helped
infusion of renewable energy into One, the Company moderated demonstrate the Company’s
its energy mix at a time when costs by around H1.34 per unit seriousness in reconciling
fossil fuels inflation threatened to that helped moderate the impact the interests of the Company,
increase power tariffs. of inflationary fossil fuels on its consumer and world.
cost structure.
The Company signed a 25-year Building a better tomorrow
agreement to purchase renewable Two, the Company enhanced
energy at an average H3.24 per consumer pride and involvement
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 063

A transformation
3 mindset
During the last five years, the The result is that the Company A commitment to ‘hierarchy’ was
biggest achievement by AEML is infused a new perspective and replaced by ‘teams’.
not to be found on its Balance dictionary into everyday use.
A complement of these realities
Sheet.
A term like ‘status quo’ was initiated what most observers said
It is to be found in its mind. replaced with ‘speed’. would be virtually impossible.
The first thing that the Adani A term like ‘cost management’ was We are happy to report the
Group infused into AEML was a replaced by ‘cost reduction.’ outcome of these initiatives by
commitment to be the best in borrowing a description from
A preference for ‘experience’
India’s utilities sector. one of the most influential
was replaced by ‘youth cum
management gurus of our time.
This one word – ‘best’ – initiated experience’.
a new momentum marked by a His term was ‘The elephant can
A need to ‘control’ was replaced
commitment to a complement of dance.’
by ‘delegation.’
initiatives that would graduate the
Building for tomorrow.
Company into a benchmark.

Achieving more
4 with less
The regulated power The Company has been The Company protected its cash
distribution business is capital- consistently ranked as per collection efficiency at around
intensive. Investment Grade ratings, among 100%.
the highest in its sector; it is the
At AEML, we resolved to grow The Company divested non-core
only Indian discom with IG rating
profits around a smaller Balance assets, enhancing liquidity and
by leading global rating agencies
Sheet. empowering it to moderate tariffs.
The Company’s sustainability
The result is that the Company A recovery of longstanding
has been driven by robust capital
achieved financial closure for all receivables from defaulting
management, this comprises a
capital investments to be made consumers enhanced liquidity.
capex plan of US$ 2 Bn GMTN for
until 2030, enhancing directional
asset hardening to ensure reliable The result is that AEML has
visibility necessary for a large
and affordable power, which has created a financial foundation to
public utility.
been fully funded address the needs of the moment
The Company secured primary and the foreseeable future.
In FY 22-23, the Company grew
equity investments from large
its business without enhancing Building for tomorrow.
sovereign funds like Qatar
its working capital outlay (which
Investment Authority at AEML and
remained identical at the level of
IHC for the parent company Adani
FY 21-22).
Transmission Limited
 ADANI ELECTRICITY MUMBAI LIMITED
064 ANNUAL REPORT 2022-23

Creating a
5 new culture
At AEML, we recognised that exercise undertaken at the the passion of youthfulness and
the first initiative we needed to Company. the option of looking at things
address was culture. through a new pair of eyes.
The new management infused
For decades, the Company had a new confidence among The result is that a new AEML
acquired a distinctive way of employees that it was acceptable began to emerge from the womb
doing things, best described as to say, ‘I don’t agree.’ of the old.
‘This is how we do it here because
The new management asked Processes were redefined. New
this is how it has always been
employees, ‘How would you do it if possibilities were explored. The
done.’
you were completely empowered?’ word ‘consumer’ began to figure
AEML set about recreating its more frequently in meetings.
The new management created
organisational culture around
new teams addressing specific An old body now carries within a
an over-riding priority: ‘Question
objectives around a new line: rejuvenated soul.
everything.’
‘Let us find a better way of doing
Building for tomorrow.
These two words initiated the things.’
most extensive transformation
The new management blended
the experience of the years with

How AEML protected consumers

6 during power outages
Mumbai comprises an Adani Electricity addressed these Customers were empowered
underground electricity issues through dedicated teams. to register complaints through
distribution network, that Every complaint was prioritised; alternative channels, including
presents challenges. The response times were shortened; the website (adanielectricity),
extensive infrastructure overhaul supply was temporarily restored ChatBot, mobile application,
in Mumbai damaged electric through distributed generation WhatsApp and a missed call
cables during digging and sets with speed. service.
excavation. These damages led to
Adani Electricity commissioned Building for tomorrow.
frequent faults during the summer
24x7 helpline numbers; 90% calls
and monsoon, leading to power
were answered within 20 seconds.
supply interruptions.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 065

Transforming our
7 go-to-customer approach
When the Adani Group assumed Following a proactive investment change in the last few years.
control at AEML in 2018, the in digital interventions, the Instead of the conventional inflow
format of consumer engagement Company made it easy to of complaints, the Company
was conventional. communicate with the Company receives the following messages:
through the smartphone. The ‘Absolutely thrilled! I cannot
Consumers would queue outside
Company made it convenient believe that my engagement with
the Company’s payment collection
for consumers to pay using your company took just a few
offices.
their smartphone. The Company minutes on the smartphone’ or ‘I
Consumers needed to call the addressed virtual queries through didn’t need to speak to anyone to
Company for queries or for a its website and app. The Company my queries addressed’ or ‘I have
resolution to their issues. began to seek consumers not seen your payments collection
(especially the large commercial office for months!’
Consumers needed patience
or industrial) to explain how
in their engagement with the Creating a convenient today.
buying electricity from AEML
Company (as with most utilities) Building a better tomorrow.
would help moderate their costs
AEML set about transforming this and enhance capital efficiency.
paradigm: from a go-to-company
The result is that the perception
to a go-to-consumer approach.
of AEML has undergone a sea

Reinvesting in
8 the business
At AEML, one of the first Two, it graduated the manual to Six, it empowered employees
commitments we brought to our the automated; it would evolve with a wider data landscape
business was that of a sizable the analog to the digital. from which to make informed
investment. decisions.
Three, it enhanced operational
The Company mobilised US$ 282 redundancy, strengthening the A complement of these initiatives
Mn as sub-ordinated debt from assuredness of consistent uptime. generated a range of upsides
Qatar Holding LLC, who also holds within a compressed period.
Four, it accessed specific
a 25.1% equity stake in AEML.
international technology The incidence of faults declined,
This investment addressed several developments that would resource yield increased,
priorities. enhance operational efficiency. feedstock flexibility widened and
margins began to trend higher.
One, it plugged long-standing Five, it introduced a completely
needs of infrastructure new way of engaging with millions The turnaround had begun.
modernisation, enhancing of consumers.
Building for tomorrow.
material productivity.
 ADANI ELECTRICITY MUMBAI LIMITED
066 ANNUAL REPORT 2022-23

The Dahanu
9 flexibility capability

The integration of renewable would enable our units, while risk analyses and detailed
energy into the Indian electricity operating at house load during documentation. The results were
grid represents a challenge - and the back down period, to rise to remarkable at Unit 1. Minimum
an opportunity. full load and address the demand load operation up to 75 MW (30%)
spike at the earliest over other was achieved without oil support
As about 80% of the country’s
units that would require start- or equipment modification. The
energy demand is presently
up, synchronisation and loading. desired load ramp up/down of 3%
being addressed through thermal
Besides, the Company would be was achieved.
sources, there is a premium on
able to do so at a lower cost.
the ability of this sector to remain Having pushed the frontier, the
flexible in generation capability However, a commitment to team achieved 30% loading across
and adaptability to the variable push the frontier was marked both units without oil support,
patterns of solar and wind energy by challenges. The ageing plant which prepares it to deliver
generation. The result: a flexibility used was 23 years old; there enhanced Mumbai grid stability
of thermal power plants to scale was a question mark over the during renewable energy influx,
generation down to 55% of their efficacy of the old mills to rise to disruptions or islanding realities,
rated capacity (or even stop if the strain; the operation of the operate reliably at 30% capacity
required). single coal mill without oil support loading without shutdown when
represented another challenge; renewable generation is available
At AEML, we did not just take
a higher imported blend in the with a ramped up rate of 2-3%
the 55% industry benchmark as
coal represented a grey area; per minute, when renewable
a given; we began to explore
there was no prior experience of throughput declined - a large
possibilities of extending our
having done all of this within the battery backup at a negligible
flexibility down to 35% of our
Company. cost to the consumer.
rated capacity without oil support,
enhancing our flexibility on the The AEML team responded with Building for tomorrow.
one hand and moderating our various engineering approaches,
costs on the other. This capability cross-functional engagement,
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 067

How we implemented the

10 optical downloading of power
meter readings
In the past, the usual practice for various reasons – enhanced This transition has registered
was of a representative from the accuracy, power people attractive spin-offs: actual
power utilities company turning deployment, enhanced trust and meter reading has extended
up once a month to measure reduction in recording errors. beyond 99.76%, strengthening
electricity use by shining his torch revenues and margins; there
AEML, responded through this
onto the power meter. This legacy has been a 55% reduction in
futuristic opportunity to transform
practice comprised a manual billing complaints; there is a
an important part of the business.
recording through a hand-held greater customer perception and
Within the space of five years,
instrument or mobile app-based transparency, strengthening the
optical readings now account for
punching. Company’s brand.
95% of all meter readings (2.3 Mn
Gradually, this manual per month), largely eliminating Building for tomorrow.
intervention was automated manual intervention.
through optical ports in meters
 ADANI ELECTRICITY MUMBAI LIMITED
068 ANNUAL REPORT 2022-23

How are we
strengthening our power
distribution business

Overview
The power distribution arm of This arm has been engaged in
our company - Adani Electricity electricity distribution for over
Mumbai Limited - is India’s largest nine decades in one of India’s
private sector power distribution most populous, densest and
utility. richest cities, making it a robust
platform for the Company’s
sustainable growth.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 069

Responsibility
The Company broadbased its evident in clean technologies and ƒ Moderate the use of single use
resource mix across imported environment safeguards. At AEML, plastic and improve the diversion
and domestic coal as well as the Environment Management ratio of waste to landfill.
renewable energy. The Company Group ensures all environmental
As ADTPS is a coal-fired thermal
addressed the challenge of using compliances as per Consent
power station, emissions comprise
relatively benign materials to to Operate granted by MPCB.
particulate matter, sulphur dioxide
replace hazardous substances The overarching principles pay
and oxides of nitrogen (NOx).
in power generation following equal attention to economic,
To control particulate matter
technological interventions and social and environmental
generated from coal burning, the
digitisation. impacts arising out of business
Company invested in electrostatic
operations, strengthening overall
The Company’s responsibility was precipitators comprising four
sustainability.
manifested in the operations of passes with six fields possessing
Adani Dahanu Thermal Power For the electricity T&D business, an efficiency of 99.91%.
Station (ADTPS), a coal-based few solid hazardous materials are
To control sulphur dioxide (SO2)
thermal power plant located and indeed required in maintenance;
emissions, the Company invested
operated in the coastal town of the Company uses coal and light
in a flue gas desulphurisation unit
Maharashtra. Dahanu is an eco- diesel oil to generate electricity.
with an efficiency of more than
sensitive zone; its environmental The Company responded to these
90% (in operation since October
norms are stringent. The central realities through the following
2007). Due to the provision of
government constituted Dahanu initiatives:
over fire dampers, NOx emission
Taluka Environment Protection
ƒ Through eco-friendly remained within limits. A stack
Authority (DTEPA) for measures
waste disposal, reducing the of 275.38 meters height ensured
related to the protection of
environment impact the thin dispersion of the flue gas
ecologically fragile areas of
over a large area.
Dahanu Taluka and control ƒ Through ‘dry type’ transformers,
pollution. With ADTPS being a red avoiding the use of transformer oil In this power distribution
category industry, these norms business, the impact of hazardous
ƒ Use of substitute material
are uncompromisable. waste is declining; in FY 23, 56
like ester oil over hazardous
Tons of hazardous waste was
ADTPS’s social responsibility transformer oil
disposed through eco-friendly
towards the environment is
means.

Our strengths Credible operating Robust infrastructure; Long-term, recurring,

track record with a high reliability record stable and predictable
sustainability focus revenue streams

Compliance with a Large distribution Continually growing Skilled management

stable and evolved consumer base marked energy consumption team and competent
regulatory framework by a respect for timely workforce
tariff payment
 ADANI ELECTRICITY MUMBAI LIMITED
070 ANNUAL REPORT 2022-23

Responsibility-validating initiatives
ƒ The Company made extensive ƒ The Company invested Health & Safety Standard, ISO
investments comprising the in air-conditioner energy 55001-2014 Asset Management
moderated use of coal, light diesel saver instruments used in air System and ISO 14001
oil, electricity, chemicals and conditioners. Environment Management
water Standard,
ƒ The Company promoted roof top
ƒ The Company adopted energy- solar solutions for consumers. The Company achieved a
efficient substitutes like LED renewable power mix of 30% by
ƒ The Company developed a green
technology and street lights 2023 and intends to enhance this
belt, based on detailed studies
across the AEML premises to 60% by 2027.
ƒ The Company was certified for
ƒ The Company utilised light
ISO 45001-2018 Occupational
sensors in common areas

Recognition
The various responsibility- ƒ ADTPS received ‘Excellent ƒ Impact Assessment Study -
enhancing initiatives by the Energy Efficient Unit’ in ‘ 23rd Confederation of Indian Industry,
Company were validated through National Award for Excellence New Delhi, carried out an Impact
external recognition: Assessment Study where more
ƒ ADTPS was declared as
than 93% showed satisfaction.
ƒ ADTPS Received Certificate ‘National Energy Leader’ for
of Excellence in 17th State Level achieving Excellent Energy ƒ ADTPS received NABL
Award for Excellence in Energy Efficient Unit Award for three accreditation for Ash Testing
Conservation and Management consecutive years Laboratory
from Maharashtra Energy
ƒ ADTPS received the first prize
Development Agency
in Best Boiler User - 2022 by GOM
Labour Department
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 071

Achievements, FY 22-23
ƒ Deployment of cable like online PD monitoring of DSS services with minimal in-house
diagnostics through state-of-the- and CSS assets intervention
art technologies, resulting in a
ƒ Reduction in LV Panel ƒ Deployment of HDPE outer
lower time in fault location
failure cases by design and jacketed cables for improvement
ƒ Skill upgradation through implementation of special in system reliability due to
evaluation and refresher training connectors reduced external damages
ƒ Evaluation and benchmarking of ƒ User enabling through ƒ Arc flash Hazard Analysis for
advanced diagnostic technologies the creation of outsourced CSS/DSS - simulated boundaries
and PPE requirement

Our capabilities
ƒ Data-based decision making ƒ Experienced and competent ƒ Technical engineering
team with expertise across support for the formation of
ƒ Technology know-how and
sub-systems (Gas Insulated new schemes, discussion with
implementation of the latest
Sub-Stations, Transformers, regulators, addressing queries
technologies
Protection, SCADA and etc.
ƒ Cross-functional expertise automation, tele-protection,
ƒ In-depth knowledge about
and synergy among sub- cables, lines etc.)
the Mumbai transmission
functions
ƒ Competence in transmission network, scheme development,
ƒ Functional leads for planning studies for upcoming DPR compilation, regulatory
Management Systems schemes. processes and statutory
compliances.
 ADANI ELECTRICITY MUMBAI LIMITED
072 ANNUAL REPORT 2022-23

Outlook for FY 23-24

ƒ Deployment of technology pilots ƒ Deploy High Voltage • Development of in-house
done for CSS/DSS assets Distribution System (HVDS) - Pad experts in technology and
Pole Mounted Units on Pilot basis products
ƒ R&M cost reduction by way of
at Shivajinagar and Qureshinagar
complete outsourcing of in-house • Skill upliftment of staff and
areas
activities officers
ƒ Explore Energy as a Service
ƒ Deployment of Reliability • Continuity of vendor services
(EaaS) solutions for customers
Centered Maintenance through to ensure cost-effective and
in-house expertise ƒ Engineering activities for HVDC efficient NM activities
ƒ Heat Index Modelling of MV ƒ Exploring BESS for grid stability • Technical engineering
assets through ML/AI and green energy. Implementation support for the formation of
of online sheath monitoring new schemes, discussion with
ƒ Process re-engineering to
system for EHV cables. regulators, addressing queries
reduce cost and technical losses,
etc.
enhance safety ƒ Implementation of grid metering
system for grid metering data to • Engineering for upcoming
ƒ Microgrid implementation at the
load despatch center. projects – pre-order and post
Borivli office; 100kWp solar plus
order
50kWh battery resulting in annual ƒ Statutory approval for
saving with payback in six years identified Transmission scheme • Land for developing
Strengthening in MMR transmission substations
ƒ 12 kV Green (SF6 free)
switchgears • Knowledge upgradation and • Statutory approvals from
continual improvement MTC/ STU / MERC for required
ƒ Explore the deployment of
schemes of transmission
Battery Energy Storage System • Creation of technology use
network
to optimise power purchase cases for implementation across
costs and grid support during BUs
exigencies
• Cross-functional support to
ƒ Deploy technology to digitise other business units
AEML field Assets in GIS without
human Intervention

At AEML,
the Environment
Management Group
ensures all environmental
compliances as per Consent
to Operate granted by MPCB.
The overarching principles pay
equal attention to economic,
social and environmental
impacts arising out of
business operations,
strengthening overall
sustainability
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 073

How are we
emerging stronger

Operational Process Digitally

excellence improvements empowered team

Engaged in focused Graduation from Mobile phone-enabled

capital expenditure preventive to predictive workforce
maintenance
Phased replacement of Digital empowerment of
legacy assets Optimisation of self-service analytics
maintenance frequency;
Planned increase Development and
use of technology for risk
of Distribution deployment of AI models
mitigation
Management System mapping consumer
coverage to 100% by Outsourcing with payment behaviour
FY27 Clarity of Deliverables during the pandemic
and K-factor (PLPBC lockdown, prediction of
Upgradation of
– Productivity Linked HT cable faults, demand
SCADA with ADMS
Performance Based load forecasting and
(Advance Distribution
Contracts) data-based decision-
Management System)
making
Cyber security: IT-OT
network segregation,
RSA token and Bit locker
deployment, AEML
security surveillance
project, live of Contact
Centre DR as per
CIA (Confidentiality,
Integrity and Availability)
guidelines, training for
employees and families
Strengthening of
digital core by SAP
instance consolidation
& SOH migration, digital
knowledge sharing /
trainings
 ADANI ELECTRICITY MUMBAI LIMITED
074 ANNUAL REPORT 2022-23

How we have
created a robust
p wer distribution
platform

Smart meters are metering identify waste points and

devices that measure electricity control spending, resulting in an
consumption in real-time. They informed approach towards power
transmit data to a power supplier, consumption.
show readings and showcase the
In view of these realities, AEML
calculated energy cost on a user
intends to introduce, accelerate
display.
and complete the implementation
As part of a complex energy of smart meters across its licensed
management system, a smart area starting with 7 Lakh meters
meter becomes a major data in FY 21-22. The Company intends
source for power consumption to leverage this technology-
monitoring and control, load and led development to introduce
energy storage management, forward-looking services like
integration of solar and other time-of-day-tariff, incentivise
renewables into the grid as well as consumption shifts to non-peak
dynamic utility pricing. periods, strengthen system
availability and enhance return on
Smart meters enable accurate
infrastructure.
cost calculation and provide
previously unavailable In short, AEML intends to enhance
transparency. The result is FMCG-isation, graduating
that households can track consumer service towards delight.
consumption in real-time,

Technology and AEML

AEML is making focused  It invested in cutting-edge decision making across
technology investments with platforms directed towards operations and consumer
the objective of transforming superior network management service
consumer experience. (Advanced Distribution
 It embarked on consolidating
Management System and
 The Company embarked on 12 stores into a centralised
an upgraded Customer
the rollout of smart meters warehouse facility, moderating
Relationship Module)
across Mumbai inventory, enhancing
 It invested extensively in data accessibility and strengthening
analytics leading to informed operations.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 075

AEML and sustainability

 Increased electricity procurement  Implemented quality, environment,
from renewable energy sources health & safety voluntarily; audited
(as per Integrated Management
 Replacement of 2830 HPSV lamps
Systems)
with LED lamps in streetlights
 Licensed and competent to
 Progressive replacement of petrol/
handle hazardous wastes
diesel vehicles with electric fleet
 Implemented energy conservation
 Use of non-carcinogenic
measures (nano-molecular thermo
biodegradable silica gel in
conductive additive treatment for
transformers
air-conditioning system)
 Replaced oil-type switchgears
 Commissioned 57 EV charging
with dry-type, maintenance-free
stations
switchgears
 Planted 21,077 trees
 Deployed environment-friendly
natural ester-filled transformers  Certified as Single Use Plastic free
in its power generation business
 Supported 257 consumers for the
installation of roof-top solar panels
 ADANI ELECTRICITY MUMBAI LIMITED
076 ANNUAL REPORT 2022-23

How we are driving

business excellence

Overview
Aligning with our vision to be AEML made rapid progress results. These approaches will
a world-class leader and our in achieving these goals. The help in meeting strategic and
aspiration to institutionalise a Company adopted world-class operational objectives, besides
culture of business excellence, approaches to improve the meeting the expectations of
the generation-transmission maturity and capability of its stakeholders.
& distribution businesses of processes, leading to improved

The foundation of the business excellence journey at AEML is based on the following pillars:
ISO: The quality journey of AEML G-T-D businesses began in 1997, when the Company achieved its first
certification for ISO 9001 (Quality Management System). Several milestones have since been achieved on this
ISO journey. The businesses are certified as below:

SN System Objective AEML-G AEML-T AEML-D

Management Standards Certification since
1 ISO 9001 :2015 QMS: Ensure quality in processes for desired 1998 1997 1998
output and reliable customer services
2 ISO 14001 :2015 EMS: Address impact of operation on 1999 2010 2014
environment, climate change, ensuring
environment compliances
3 ISO 45001: 2018 Occupational Health eg. Safety practices/ 2008 2019 2020
compliances
4 ISO 50001 :2020 EnMS: Address climate change eg, energy 2011 2021 2020
management compliance
5 ISO 55001:2014 AMS: Asset Lifecyle Management 2016 2016 2014
Risk protection standards
6 ISO 27001:2013 ISMS: Ensuring data security 2008 2018 2012
7 ISO 27031 :2011 IRBC: Information eg. communication 2019 2021 2021
technology readiness for business continuity
8 ISO 22301 :2012 BCMS: To safeguard against disruptive 2019 In process 2021
events and ensure business continuity
Business Excellence Standard/Guidelines
9 ISO 26000:2010 SR: Social Responsibility assessment eg, 2019 In process In process
compliance
10 SA 8000: 2014 SA: Promotion of work culture fostering 2007 In process In process
employee satisfaction. ethical business
practices eg. social accountability
compliance
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 077

SN System Objective AEML-G AEML-T AEML-D

11 ISO 20000-1 ITSM: IT Service Management - - In process
12 ISO/ IEC 17025 Accreditation for testing laboratory by 2013 - 2009
National Accreditation Board of Laboratory
(NABL)
13 Certificate Single Use Plastic Assessment Certificate 2021 - -
14 Certificate Zero Waste to Landfill Certificate. 2021 - -
15 Certificate Water Efficiency Management System. 2021 - -
16 Certificate Biodiversity assessment study for all 3 2022 - -
sessions. Rainy and winter season already
completed. Summer season planned in
coming summer.
17 5-S 5-S certification 2020 2014 AWMA in
Platinum JUSE process
The Company is poised to achieve its goal of being comprehensively certified for at least 10 ISO standards.

Structured problem-solving and creating a culture of assessments were done leading to

methodologies: AEML adopted structured problem solving with continual improvements.
multiple approaches and tools, the engagement of employees.
In recognition of improving
aimed at engaging its employees The movement enabled the
maturity, the Company bagged
across the organisational Company to gain top recognitions
the ‘IMC RBNQA Performance
hierarchy viz. a) Lean Six- at regional, national and
Excellence Award’ in the
Sigma, b) Quality Circle c) Adani international competitions.
Service Sector during the 2021
Workplace Management System
ABEM: Ever since the launch of award cycle. RBNQA is the
(AWMS). In this process, the
'Adani Business Excellence Model' highest award, given to any
Company created a bank of over
(ABEM), a series of improvement company in the service sector
260 Lean Six-Sigma Green Belt
initiatives was identified and in this cycle. Earlier, the power
executives, over 90 Six-Sigma
completed, based on a self- generation business had bagged
Blackbelts, over 325 employees
assessment exercise conducted the ‘IMC RBNQA Performance
trained on Quality Circle tools and
for the ABEM categories. These Excellence Award – 2019’ in the
techniques, over 400 ISO internal
initiatives are led and mentored Manufacturing category and
auditors, 22 ABEM assessors
by senior leaders and supported ‘IMC Ramkrishna Bajaj National
and over 115 AWMS internal
by support function teams. Quality Performance Trophy –
auditors. Multiple improvement
Over 1,600 executives were 2008’ in the respective award
projects were undertaken by the
formally sensitised on the need cycle. These recognitions will
respective teams under each of
for business excellence and the further reinforce our commitment
these approaches, leading to a
salient features of ABEM. Multiple towards continual improvement
greater maturity of processes
rounds of internal and external and business excellence.
 ADANI ELECTRICITY MUMBAI LIMITED
078 ANNUAL REPORT 2022-23

EXCELLENCE DRIVER

Using the power of

information technology at AEML

Overview As a future-facing company,

There is a growing recognition AEML invested in technology
that digitalisation enhances innovation to address demanding
flexibility, security and customer needs and a need for
competitiveness. In view of increased business effectiveness.
this, digitalisation is not merely Even as AEML continued to focus
preferred; it represents the on delivering reliable power, it
lifeblood of business. continued to do so with a focus
on safety, consistency and
customer delight.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 079

Pillars Employee productivity: The ahead of the curve. The Company

The Company is focused on five automation of manual activities completed a security surveillance
digital intervention pillars: (auto work allocation, mobile app project aiming to provide
for field crew, automation – BOT, centralised access through
Customer affection: Digital analytics and tools and online Network Operation Control,
enablers (web portal, mobile app, training) is expected to enhance comprising the use of 1200
self-help kiosks, digital payment employee productivity. CCTVs. It completed a ISO 27001
avenues and digital interfacing re-certification audit with zero
platforms like BOT/video chat, Digital core: The Company
non-compliance and successful
real time communication via SMS, graduated from legacy servers,
go live of contact centre at
email, WhatsApp and other value- software in silos and limited
Hyderabad as per CIA guidelines.
added services) were revamped. modules to Cloud-based IT
The Company empowered infrastructure, CRM, SAP-Hana, At AEML, we are leveraging
consumers with service on ARIBA, Cybersecurity and the power of these digital
their fingertips, transforming Analytics. technologies with the objective
satisfaction into delight. to enhance business velocity,
Cybersecurity: The Company
process efficiency and create a
Reliable grid: The Company segregated the IT-OT network
foundation of scalable growth
invested in grid sensors, smart/ covering AEML’s core network
without a corresponding increase
prepaid meters, auto grid deployment across offices and
in costs. In view of this, we believe
operation, ADMS and reliability- DDLO Data Centre Network. The
that the power of digitalisation
centred maintenance (AI and enhanced data security with
represents the foundation around
ML-driven) to enhance service encryption features through
which the Company can be scaled
consistency. The Company intends the deployment of a bit locker-
profitably and sustainably.
to achieve a self-healing network disk and RSA authentication
based on agreed principles and deployment for cyber security will
algorithms. empower to company to stay

Addressing challenges Differentiators

The Company addressed the non-availability of The result is that the Company possesses a
the right solution partner or skill to deploy AMI future-ready cyber framework through a focus
solutions with the onboarding of OEMs to drive on analytics and emerging technology teams.
the initiative.
The Company won the RBNQA award for best
The Company addressed the non-availability practice initiatives like self-help kiosk, VCC and
of business process reengineering resources WMS. The Company won the RBNQA award
through the onboarding of external resources. Performance for Excellence award in the
service category. The Company won ET Data
The Company addressed a dearth in employee
CON Award for Smart Data Solutions and CIO of
skillsets related to emerging technologies
the Year Award by CII CDT in the utilities sector.
through the adoption of the Percipio platform
to enhance technical and managerial skillsets. The Company increased digital touchpoints
that enhanced its digital engagement from 70%
The Company addressed the absence of
to 77%. The Day Ahead Demand Forecasting
cybersafe backup solution to safeguard
Solution leveraged analytics with 98%+
against ransomware attacks through the
accuracy.
implementation of an Airgap backup solution to
enhance cyber resilience. The result is that the Company reported
estimated savings of 24,000+ person-days per
annum resulting in benefits worth H21 Crore.
 ADANI ELECTRICITY MUMBAI LIMITED
080 ANNUAL REPORT 2022-23

Strengths Outlook
ƒ Intensive domain knowledge of The Company will graduate its Simulation lab at Adani
the utilities business; average information technology function Electricity Management
employee experience of 20 from a cost center to a revenue Institute (AEMI)
years generator. It will continue A simulation lab was
to enhance the skillset of IT inaugurated at AEML
ƒ Induction of new employees in
resources for future-readiness. It with working models of
critical / emerging functions and
will enhance awareness on cyber a simulation facility on
technologies.
security practices. Its adoption power distribution at
ƒ Strong governance practices of cloud is expected to enhance various voltage levels,
like periodic reviews at multiple agility, scalability and a faster smart meter working,
levels (operations and project go-to-market. Its exploration protection relays, industrial
management). and adoption of emerging controls, motor starters,
technologies will help future- fault passage indicators,
ƒ Experience in external IT
readiness. meter board wiring, CT
projects implementation like
R-APDRP for Chhattisgarh and operated meter working
Bihar. and transmission network.
Various models of Power
Transformer, Gas Insulated
Substation, Cable samples
Our cyber security initiatives of voltage levels 220KV,
33KV, 11KV & 440V, Cable
accessories for medium and
Formation low voltage are available
and focus in this simulation room
Future-ready on analytics for training. This facility
cyber framework and emerging helps train participants
technologies in understanding power
teams. distribution aspects.

Technology: AEML’s business enabler AEML’s technology investments

ƒ Customer-centricity: Deployed a video ƒ Cyber Program Maturity Assessment Score of
contact center for external customers to 3.0, a benchmark in the global utility sector
address billing issues from their homes, the
ƒ Adoption of Advanced Distribution
first such instance in Asia
Management System to monitor and manage
ƒ Customer-centricity: Deployed self-help kiosk AEML’s grid network and assets
machines to facilitate payments among other
ƒ First Indian utilities company to deploy a
services.
Video Contact Center.
ƒ Employee productivity: Deployed the
ƒ End-to-end integration of all critical
Workforce Management System to enhance
technologies.
EP related to field activities using mobility
services, AWA, geotagging and geo-fencing; ƒ Investment in future-ready technologies like
this provides optimum routing and end-to-end data lake, augmented reality / virtual reality,
integration for better validation and control. conversational AI, Blockchain and IoT.
ƒ Automation: Introduced the use of RPA Bots
in automating mundane tasks
ƒ Informed culture: Adopted visualisation tools
(PowerBI) to empower data-driven decision
making
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 081

EXCELLENCE DRIVER

How we are enhancing

consumer delight at AEML

Overview Relationships: At AEML, we

At AEML, we are engaged focus on providing personalised
in a challenging consumer- services to consumers even as
facing business that warrants we are engaged in servicing
a sustained service uptime, more than 3 Mn consumers. The
accessibility to consumers, personalisation has been ensured
transparency in financial through Key Account Managers
engagement and responsiveness assigned to assist high-value
in addressing consumer issues. consumers through their lifecycle.
 ADANI ELECTRICITY MUMBAI LIMITED
082 ANNUAL REPORT 2022-23

Accessible: AEML is consistently complaints about meter readings rather than traveling to AEML
available to consumers through and reduced billing errors. Senior offices. Senior management
a 24x7 call center, self-service management email addresses are escalations are analyzed for root
kiosks and customer contact available in the public domain for causes so that processes gain
centers. The use of technology customers to escalate an issue from the experience.
simplifies consumer journeys and in case they are dissatisfied.
Satisfaction: AEML engages
empowers consumers through Feedback from consumers is
third party agencies to measure
self-help on the web and in-the- sought following transactions;
customer satisfaction and take
app, and one-of-its-kind video these flow back to the process,
telephonic feedback on processes
contact center, whereby the ensuring continual improvement.
and learnings. Consumers are
customer can engage with the
Communication: AEML has empowered to provide feedback
agent from home.
implemented a Customer through online social media
Experiences: AEML’s multi-lingual Communication Module for channels. Key processes like
Key Account Managers service superior handling of consumer Supply Restoration, Contact
consumers in the language of communication and to ensure Centre, Email Desk, Application
their choice. The self-service that the consumer’s preferred Processing and Bill Delivery
options are customised around engagement channel is etc. are evaluated through
consumer requirements; the being used. The Company customer feedback for continuous
chatbot is integrated to back- communicates through SMS, improvement.
end systems to provide specific WhatsApp, social media and
Focus: Digital first is a focus
account-level data based on emails.
area; as consumers adopt digital
account analytics resulting in
Responsive: AEML’s benchmark media, Customer Care Centers
have engaged conversations. The
mandates supply power within 24 may be phased out. AEML plans
media of outgoing communication
hours of new connection requests, to implement speech-to-text
is based on consumer preference.
a metric reviewed closely. AEML analytics for all its consumer
Smart meter: AEML is engaged in was adjudged India’s number avenues to draw real time
the roll-out of smart meters that one power utility by the Ministry insights. The initiatives comprise
provide personalised electricity of Power in an annual rating Data Lake Initiatives – Predictive
use trends to customers, conducted by McKinsey. analysis, Voice BOT and Virtual
empowering informed decisions Experience Center (AI Enabled)
Privacy: AEML deployed state-
concerning consumption. etc.
of-the-art technologies to secure
Solutions: AEML introduced customer PII data like Digital Relationship practices: AEML
auto work allocation wherein Rights Management solution, benchmarks CRM practices
all complaints are automatically among other initiatives to secure with standards of its sector
assigned to the field team. This a consumer’s data. and other industries. It strives
reduces response and resolution for continuous improvement.
Performance: AEML implemented
time; these are monitored based Increased digitalisation and
optical cord-based readings
on priority and turnaround times. personalisation could create a
following consumer requests
AEML implemented optical lasting differentiation.
for personalised communication
meter readings that eliminated

V-Assist: First of its kind, a virtual Digital payment gateways and Genius Pay kiosk
contact center that provides 24x7 - Electra – Chatbot
customer support. To enhance customer centricity, the Connect to
V–Assist, a virtual contact centre where Customer initiative was launched for executives, new
customers can interact with customer joiners, Graduate Engineer Trainees (GETs), Management
care executives on video, makes Adani Trainees (MTs), employees in support services and
Electricity the first power distribution those functions that do not directly interact with
utility in the world to launch this customers. This enables employees to gain a collective
innovative service. The service represents understanding of what the customer needs and look
a departure from the impersonal at the work stream from the perspective of frontline
experience of consumers using helplines employees. Employees also reflect on the customer
and adds a personalised element to experience and issues; they share their post-visit
customers’ interaction with Adani feedback for any scope of improvement.
Electricity.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 083

EXCELLENCE DRIVER

How we have strengthened

our people capital

Overview training, delegation, reward and

In a business that needs to recognition.
service millions of consumers Over the years, the Company
who demand continuous reinforced its positioned as one
service night and day, there is of the premier power distribution
a premium of competence and companies in India through a
vigilance. Over the years, the passion-centric positioning that
Company invested in selective has transformed the Company
recruitment complemented by into a preferred employer.
 ADANI ELECTRICITY MUMBAI LIMITED
084 ANNUAL REPORT 2022-23

Achievements
AEML’s focus is on capability ƒ Organisational restructuring ƒ Initiatives to improve diversity at
building, capacity planning and to shift from function-centric to all levels
leveraging technology cum customer-centricity
ƒ Change management initiative
analytics to improve processes
ƒ Launch of the leadership to facilitate quick change as per
and operations. AEML is inducting
programme changing business requirements
fresh talent to build a strong
leadership pipeline; it used the ƒ Fast-track leadership pipeline ƒ Launch of multiple employee
digitised campus platform to for identified talent wellness and engagement
select talent at scale. The major initiatives
ƒ Job rotation to enhance holistic
HR achievements comprised the
business understanding
following:

Strengths
Robust systems and processes employee engagement and well- providing learning opportunities,
are driven by business strategy. being, learning and development promoting diversity and
The HR team upgrades programs, diversity and inclusion inclusion, and upholding
processes and systems to initiatives, and compliance and compliance and ethical
address changing requirements. ethics. By aligning workforce standards, the HR function
The HR department needs with organisational has played a crucial role in
demonstrated capabilities in goals, attracting and retaining supporting the Company’s
strategic workforce planning, skilled professionals, fostering growth, productivity and long-
talent acquisition and retention, a positive work environment, term success.

Business-strengthening initiatives
The HR function emphasised implemented recognition and The Company’s senior
the importance of career rewards programs; it extended management interacts
development. It facilitated to employee appreciation periodically with employees.
training programs, workshops, events, and other forms of Open Town Halls are organised
and mentoring to enhance skills recognition. These measures quarterly; monthly Samvaad
and opportunities. By creating aimed to create a supportive sessions address departments.
career paths, the HR team seeks environment, encouraging Separate monthly interactions
to retain employees by offering loyalty, and lower attrition. help new hires interact with
professional development. It senior business leaders.

Learning and development Versova Technical Training Center Our generation business
Learning and development is (VTTS), which are equipped with comprises Ministry of Power,
about creating excellence in hi-tech infrastructural facilities for Central Electricity Authority,
building a culture of continuous conducting different courses on GoI-certified Technical Training
learning and upskilling for technical as well as management Center of A-Grade (Excellent,
individuals and organisation to subjects covering the needs of Category-I) at Dahanu, equipped
learn and grow. The Company Indian power and allied energy with infrastructural facilities for
has a world-class infrastructure sectors. For easy access to conducting different courses on
at two of the locations in its learning initiatives, two additional technical, behavioral, IT as well as
supply area - Adani Electricity training spokes were created management topics.
Management Institute (AEMI) and in Magathane and Tilak Nagar
divisions.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 085

During the year under review, the conducted like Unchaai, Think additional features like the HR
Company conducted initiatives Healthy Live Healthy, Ergonomics, HUB- Monthly HR newsletter
with other programmes during Mindfulness, etc. There were and podcast, Gyaan Sagar - a
the planned learning calendar for special initiatives such as AALP knowledge-sharing platform,
its employees. The programmess (Adani Accelerated Leadership learning calendar, highlights,
were conducted by internal Program) for our summer interns awards cum accolades, upcoming
and external faculties. The from Premium Institutes like IIMs, programs and photo gallery etc.
initiatives included programmes IITs and FMS, Unique Certification
eVidyalaya Percipio: To develop
like AE Marvels and AMarvels Program under the NAPS Scheme,
a culture of continuous learning,
- for leadership development, Webinars for students and faculty
employees were encouraged to
understanding financial aspects of Engineering College and many
self-learn through the eVidyalaya
of the utility sector, ‘Naya Daur, more. AEML also provided four
Percipio platform. The average
Nayi Umang’ - for personal and months of training to 76 diploma
learning hours per user was 17.38.
financial wellness, ignite, shift apprentices and one month of
Executives attended various
the orbit, technical programs like training to 37 interns, which
bootcamps, live events, and
power system simulation studies, included both classroom and
leadership camps.
battery energy storage systems, online training.
predictive maintenance and Analytical orientation: To
AE-Varsity: To constantly meet the
health monitoring of MV cables, ensure our senior and middle
evolving needs of its employees,
HVDC cable orientation, digital management was equipped with
AEML launched a knowledge
maintenance and management key analytical skills, the Company
management portal called AE-
system and understanding power organised extensive workshops on
Varsity, to cater to all learning
markets, among others. analytics using customer data.
needs of the employees. 200+
Many programmes on safety, videos of conducted sessions
health and wellness were were uploaded on the portal with

Outlook
At AEML, the objective is to making that enables employees, ƒ Continuous monitoring of
leverage the power of technology managers, and HR partners to strategic and performance metrics
in defining the ways of working, support business priorities. The and use insights to manage risks
engaging, empowering and medium- and long-term priority
ƒ Providing an empowering
decision-making that enables comprise:
environment by providing
employees, managers and HR
ƒ Capacity creation by ensuring engaging platform to address
partners to support business
effective talent acquisition and worker needs in an easy and
priorities in the most efficient,
the efficient execution of talent digitally assisted manner
integrated, and competitive
acquisition process
manner. ƒ Centralised delivery of all
ƒ Capability building through data transactional HR services from
The Company’s medium and long-
supported talent development a centralised support service
term priority is to leverage the
interventions customised to team using appropriate tools and
power of technology in defining
address organisational and automations.
the ways of working, engaging,
individual goals
empowering and decision
 ADANI ELECTRICITY MUMBAI LIMITED
086 ANNUAL REPORT 2022-23

Programmes Fulcrum programmes: We offers Triple Certification

are committed to building an i.e. certification by PSSC in
introduced institution that nurtures talent the optional trade of Junior
Leadership development and promotes employability. Engineer Power Distribution,
programme ‘Growing Leaders from Within’ and also covers a vast syllabus,
is the approach taken by spread across 12 weeks,
NorthStar 4.0: Thirty one our businesses to address on ‘Certification course
participants of AEML were the emerging demand for on Electrical Safety and
awarded Post Graduate talent. Fulcrum is designed Design aspects of Electrical
Diploma in Business to strengthen the leadership Installation’ which is notified by
Management by Emeritus in pipeline at the middle, senior the Chief Electrical Inspector,
collaboration with Columbia and top levels, respectively. This Government of Maharashtra,
Business School and Tuck Adani leadership development for obtaining PWD Supervisory
Executive Education. program equips participants License that enables them to
with competencies to foster an work on the electrical system
AEMarvels 2022 and A-Marvels as an authorised person and
owner-manager mindset. This
2023: A long duration to work in the power sector
module includes experience-
leadership development with confidence and efficiency.
based interventions,
program was launched at Three batches of apprentices
interactions with industry
AEML in the year 2022. 31 have completed this structured
experts and self-discovery to
AEMarvels (first batch) have training consisting of four
enhance emotional resilience.
completed the course last year months of instructor-led
Four individuals from AEML
and A-Marvels 2023 which training and eight months
participated in the foundation
is in collaboration with IIT- of on-the-job training, have
batch of Fulcrum and two
Bombay is currently ongoing obtained supervisory license
individuals are part of this
with 32 identified participants. of Govt. of Maharashtra based
year’s program. The program
It includes Assessments - on our training, and have
is focused on delivering
Korn Ferry Leadership tool, been deployed in network
outcomes and emphasises
Multi Ratter feedback (360 maintenance activities of
various frameworks and
degree survey) for creating various divisions in distribution.
planning tools along with
Individual Development Plan,
developing commercial yet
Personal Discovery workshop Induction training for GETs
visionary acumen. It includes
with Connect sessions once / MTs: A structured training
monthly connect sessions
every month for discussing the program consisting of 2
that encompass visits to
current status on personal / months of Instructor-Led
different industrial setups,
professional goals in respective Training (ILT) and four months
classroom sessions and
batches, modules at IIT- of On-the-job Training (OJT)
self-reflection tools. These
Bombay (Financial Aspects along with assessment at
immersive experiences expose
for Strategic Decision Making various stages is provided to
participants to frameworks
- 4 days, Adoption of Digital our GETs (Graduate Engineer
such as design thinking,
Transformation and Business Trainee). Our MTs [need full
geopolitics, leading with
Analytics - 4 days, Managing form] undergo two months
influence, negotiations and
Self and people leadership-2 of training and are deployed
more. During these sessions,
days), Coach Connect for both for on-the-job training in their
participants engage with local
personal and professional life, respective functions. All the
communities and explore how
Percipio Courses (2 mandatory GETs and MTs visited DTPS and
businesses can contribute to
ASPIRE journeys), Business Mundra sites as a part of the
their transformation.
Projects with respect to current induction program. The GETs
business need/issues in the Unique apprenticeship also visited the Maharashtra
organisation, Book Reading, programme: AEML, in State Load Dispatch Centre as
Journal Writing, Job Shadowing association with the Power well as Western Region Load
– 12 hours of shadowing a host Sector Skill Council (PSSC) Dispatch Centre as a part of the
executive identified by the under NAPS Scheme (National induction, where the experts
functional head, and a visit to Apprenticeship Promotion at these centres explained the
Mundra. Scheme) in India, launched working of the respective grids.
a training program that
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 087

Total employees Average employee age

4568 4429 48.93 years 48.96 years

As on 31 March 2022
st
As on 31 March 2023
st
As on 31 March 2022
st
As on 31st March 2023

Revenue per employee (H) Investment in training and development (H)

1,66,17,776 2,12,16,979 3.05 2.97

FY 21-22 FY 22-23 FY 21-22 FY 22-23

Percentage of the Company’s employees covered by training programmes (%)

68% 3105 80.45% 3563

FY 21-22 Employees covered FY 22-23 Employees covered

Experience (person years) built in (aggregate years Retention (%)

employees spent working in various companies and in ours)

1,05,685 1,02,860 95.58 93.60

Person-years in FY 21-22 Person-years in FY 21-22 In FY 21-22 In FY 22-23

Role wise
upskilling Training Need
of Current Analysis
Workforce

Training
Development
Curriculum for
Plan Framework
Employees

Learning and
development
 ADANI ELECTRICITY MUMBAI LIMITED
088 ANNUAL REPORT 2022-23

At AEML, we have
deepened a culture of safety

Our safety
programme
Our goal: Zero harm

Overview
At AEML, nothing is more represents the basis of mitigation and monitored. The involvement
important to our overall success and a safe workplace. AEML has a of each employee in identifying
than our employees going home well-defined process of identifying anomalies or dangerous situations
safe each day. critical vulnerable safety risk was an indicator of employees’
through cross functional involvement and vigilance in
The Company is committed
experts and addresses risks with accident prevention, reflecting
to ensure the continuity of
prevention and mitigation. The the safety culture within AEML.
electricity, safety and reliability
status of the same is reviewed at
of services to customers, The Company has a risk register
the Apex business safety council
committed to demonstrate covering all key risks (including
level.
continual improvements in safety, financial, reputational,
Quality, Occupational Health, These engagements warrant an litigations etc.) and an established
Safety & Environmental (QHSE) institutionalised approach to framework that ensured the
management. The Company safety and risk mitigation that periodic evaluation of risks and
institutionalised practices around extends from risk identification, risk management processes.
sustainable development. assessment and mitigation. AEML
The Company’s HSE policy
established, implemented and
All AEML employees and business represents a documented
maintained processes necessary
partners are committed personally commitment by the top
to prepare for and respond to
and collectively to ensure safety management to provide a safe
potential emergency situations,
on daily basis in operations and on workplace and protect the
including actions to address risks
sites with a common goal of ‘Zero environment for the benefit of all
and opportunities.
fatal incidents’. stakeholders.
The reporting of anomalies and
At AEML, we believe that a
near-misses were encouraged
comprehensive risk understanding
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 089

Safety governance
The safety of our stakeholders are cascaded through five task assessment were done based
represents the core of everything forces. on safety and recorded through
we do. Our goal is ‘zero harm’ and online portal. Ten sessions of
To enhance openness, a safety
we adopt the best technologies vendor development programs
interaction module was started.
and upgrade facilities leading to were conducted. The Company
Some 11,876 safety interactions
safety, improved efficiency and conducted Safety Risk Field Audit
were done by management to
sustainability. (SRFA) monthly and calculated
improve the safety culture. As a
Severity Index of contractors.
A special emphasis is placed part of leading indicators, 6621
Some 3,586 SRFA were logged in
on capability development. We near-misses were reported and
a year.
undertake skill development 510 serious injury potential
initiatives to align employees scenarios rectified. Any employee To develop healthy safety culture,
with evolving organisations can register safety concerns in society needs to be educated
requirements. Programs were an online portal and immediate on the importance of safety,
launched, and 21,421 person- action is ensured; 3,016 concerns prevailing hazards & risks and its
hours of training imparted to were logged in AEML. We started control measures. We conducted
strengthen a safety culture. Our capturing the safety concerns more than 30 awareness sessions
online reporting portal Gensuite of our visitors and customers by in slums, schools, societies and
was upgraded for faster and providing access to an online for consumers. Four webinars
easier reporting. Injuries declined portal through QR code. were conducted to reach the
52%. Road safety remained as maximum number of people. All
We continuously check our
one of the focus areas; preventive the learnings from group incidents
preparedness for emergencies
measures were taken to reduce are captured in the form of Critical
through mock drill, 36 numbers of
road incidents. Vulnerability Factors (CVF) and
mock drills on various emergency
are horizontally deployed across
Our safety governance structure scenarios were conducted.
the group.
is led by functional managers
Special efforts were made
and the participation of workers AEML received the prestigious
on vendor engagement and
is ensured at every level. The Gold award in February 2023,
development through Contractor
directives of governance organised by OHSSAI for ‘HSE
Safety Management. 100%
committees and group guidelines Excellence and Sustainability’.
vendor pre-qualification

Safety programmes Safeguards in our business

The Company continues to The Company responded to hazards through the following safeguards:
demonstrate zero-tolerance
ƒ It documented a standard ƒ It monitored respirable dust
towards violation of the
operating protocol and HIRA for and chemicals using specialised
policy, life saving safety rules
all activities equipment; employees were
and established procedures.
encouraged to use masks/gloves.
Awareness and promotional ƒ It documented a work permit
activities like Celebration of and JSA system to appraise ƒ It implemented a height pass
National Safety Week, Road employees on the nature of work test for employees working at
Safety Month, Fire Safety Week, and perceived risks. heights apart from their annual
Electrical Safety Week, National medical examination.
ƒ It implemented engineering and
Lineman Diwas were observed
administrative controls to ensure ƒ It conducted periodic safety
at all locations. Workers were
that employees remained safe briefing for employees with a
recognised for their leadership
from injuries/accidents. robust injury/near-miss monitoring
and awarded for their contribution
system.
towards promoting Environmental, ƒ It provided personal protection
Health and Safety culture. equipment to employees; its
Industry experts were invited use was monitored by reporting
to share their inputs on every managers and safety teams.
occasion.
 ADANI ELECTRICITY MUMBAI LIMITED
090 ANNUAL REPORT 2022-23

Our initiatives
Enunciated policy: This Officer, coupled with PPE Team engagement: Various
is displayed prominently compliance. teams engaged across verticals
across AEML locations and related to safety practices (Safety
Electric shock and flashover:
communicated to all stakeholders. Samwad, safety interactions,
Provision was made up for an arc
mass meetings, safety governance
Importance: A safety strategic flash suit, insulated tools, PTW &
structure meetings, hazards
plan is prepared in line with Group LOTO system, cable identification
identification etc.).
safety guidelines, approved by the tools and personal protection
CEO and tracked for achieving equipment. Investments: Investments were
safety targets. made in infrastructure, equipment
Toppling of old design issue
and apparatus.
Board priority: Safety is a of generation Hydra: New
priority; the Safety performance generation hydra was procured Observations: The Company
is reviewed by the Board on a and work order upgraded as per observed Safety Week, Electrical
regular basis. the new requirement. Safety Week, National Safety
Week, Road Safety Week and
Awareness building / PPE deviations: Video analytics
Fire Service Week; arranged
communication: Safety awareness were implemented to capture any
competitions and quizzes.
for internal and external PPE deviation.
stakeholders are conducted Protocols: The Company
Training: All employees were
at regular intervals through logged all safety violations on
qualified for Integrated
awareness sessions, webinars, an online portal; implemented
Management System and trained
radio safety messages, school Consequence Management Policy
on AEML requirements.
safety programs and slum for employees and contractors;
awareness programmes. Team structure: The Company stand down meeting addresses
comprised a Safety Governance serious deviations; measured
Chlorine leaks: The Company
structure, Business Safety safe operations (accidents and
invested in chlorine leak detectors
Councils (chaired by the plant accident-free hours etc.) through
by providing data and operational
head/CEO), Apex Joint Safety leading and lagging indicators.
control from the main control
Council (chaired by the T&D
room for close monitoring in the Audit systems: The Company
head) and Divisional Joint Safety
event of leaks. conducted an internal audit by
Councils (chaired by Divisional
certified internal auditors as per
Fall from heights: Height pass Head), Unit Safety Council
schedule and External audit every
test facility was available and (chaired by the unit head), and
year (BVQI, DISH audit) as per
regular tests are conducted for various Taskforces addressing
statutory requirements.
employees working on heights in operational priorities).
the presence of a Chief Medical Certifications: The Company was
certified by ISO 45001-2018.

Our capital investments Our health measures

ƒ Introduction of remotely operated ƒ Executive employees availed the health check
high-tension equipment at empaneled hospitals/diagnostic centers. The
comprehensive health check was followed by DMO
ƒ Replacement of oil type
consultation and follow-up.
equipment by dry type HT
equipment ƒ Statutory annual medical examination for non-executive
employees and contract employees were conducted
ƒ Introduction of LT cable
on-site to maximise participation, followed by DMO
puncturing machine
consultation and follow-up.
ƒ Provision of fire detection alarm at
ƒ Health promotion activities were regularly conducted
EV charging stations
through webinars, health talks, onsite health camps and
ƒ 100% LOTO implementation mailers on health days, disseminating information on
communicable and non-communicable illnesses.
ƒ Provision of a camera with
artificial intelligence at critical
locations
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 091

Health awareness
In 2022, a series of health to matters of the heart, with webinars not only enhanced
awareness sessions (webinars) discussions centered around knowledge but also fostered a
were organised to educate sudden cardiac death and overall sense of community and shared
employees about crucial health- heart health. Finally, in December, responsibility.
related topics. These informative the sessions were dedicated to
Over 30 department-specific
sessions were conducted in July, providing the workforce with
talks covering diverse topics such
September, and December, each the latest updates and insights
as ergonomics, health, hygiene
month focusing on a different regarding the ever-evolving
and more were conducted,
aspect of health. In July, the Covid-19 situation. Over 750
complemented by the circulation
webinar delved into the topic employees actively participated
of informative mailers on various
of gastrointestinal (GI) illnesses, in these sessions, demonstrating
World Awareness Days across the
pertinent during the monsoon a collective commitment to
organisation.
when such ailments surge. In staying informed and promoting
September, the spotlight shifted a culture of well-being. These

Our health facilities

AEML provides health facilities a safe and healthy working Medical Officer and a male
in line with the best companies environment. The health of nurse to cater to the routine and
engaged in similar businesses. In employees was ensured by the medical needs of employees their
accordance with the provisions following provisions: families
of IMS, the Company not only
ƒ Divisional Medical Centers ƒ Tie-ups were forged with
ensures adherence to the
which are well-equipped and hospitals for specialist
standards and regulatory norms,
manned by a full-time Divisional
but extends beyond, providing
 ADANI ELECTRICITY MUMBAI LIMITED
092 ANNUAL REPORT 2022-23

consultations, investigations and ƒ SLT provides ideas and ƒ Employees received

admissions suggestions to the medical team personalised counseling to
for initiatives after analyzing address out-of-range health
ƒ Group Mediclaim policy was
health trends and indicators. parameters and curative
sustained for employees and
recommendations
families including the option to ƒ A blood donation drive was
cover parents and in-laws organised on 24th June 2022, in Monsoon preparedness
collaboration with the CSR and ƒ More than 276 first-aid boxes
ƒ Evaluation of medical fitness
EE teams, in commemoration of were restocked.
during pre-employment, resuming
our Chairman’s birthday, which
duty after sick leave and during ƒ Doxycycline was distributed,
garnered an overwhelming
an extension of service (non- benefiting over 4,800 outdoor
response, resulting in the
executive employees) employees as a preventive
collection of 588 units of blood
ƒ First-aid training by DMOs, from across GTD. measure against Leptospirosis.
where responders were trained ƒ Comprehensive awareness
Taking care of employees
in identifying emergency medical sessions on first aid and monsoon-
conditions and provide first-aid ƒ The medical team organised
related illnesses were conducted
including CPR. First Aid training sessions
across 20+ business units and
across divisions in handling
ƒ Monsoon preparedness depots, addressing over 2,000
general / workplace injuries and
activities, which included a employees.
emergencies
provision of first-aid boxes to ƒ Debriefing sessions were
team members and at static ƒ The training included hands-on
conducted for all reporting
locations, provision of doxycycline CPR instruction
managers and employees to
to outdoor employees in water- ƒ From April to December 2022, ensure they remained well-
logged areas for leptospirosis 256 employees underwent this informed about emergency
prophylaxis and conducting programme response services and procedures.
awareness sessions on monsoonal
ailments Statutory annual medical
examination
ƒ Attendance by DMOs, safety
ƒ Among executives, 45% (600
meetings and provide inputs for
individuals) utilised the Executive
accident/injury prevention and
Health Check services at Fortis
employee rehab post injury/illness
Hospital, Mulund.
(fitness with r/r) to reporting Effectiveness of health
managers & HR. ƒ Some 2,227 non-executive initiatives
employees, accounting for 81%
ƒ Conducting canteen audits, FY 2018-19: 54/26/20
of the team, underwent onsite
water sampling and gymnasium
medical checks during November FY 2020-21: 59/23/18
support.
and December 2022. FY 2021-22: 63/21/16
ƒ The senior leadership team
ƒ For ADTPS, 189 employees FY 2022-23: 67/20/13
monitors annual health checks
received half-yearly medical Classified as per Low/Intermediate/
and other initiatives to ensure
check-ups in September 2022 High
maximum employee participation.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 093

ENVIRONMENT SOCIAL AND GOVERNANCE

Our approach to
sustainability

Overview
AEML is committed to excellence AEML will continue undertaking AEML’s role as a transmission
in environmental performance, initiatives that enhance provider and distributor of
preservation and promotion. consumer service and community energy is also in line with SDG
Sustainability is wired into AEML; life quality. The Company’s 11 on Sustainable Cities and
it drives performance and success. commitment centred around UN Communities, as it provides
Sustainable Development Goals resilient infrastructure and
Safety is integral to the Adani
(SDGs), with SDG 7 on Affordable ensures access to a consistent
work culture. AEML applied
and Clean Energy being the and secure electricity for the
behaviour-based safety initiatives
cornerstone. AEML is committed communities. AEML’s target
including periodic safety audits,
to decarbonising production, to reduce carbon intensity
awareness campaigns, training
transmission and distribution and promote sustainable cum
and assessment programs. The
of power, in an effort to tackle innovative solutions contributes
outcome of these initiatives
climate change as well as to SDG 13 on Climate Action.
resulted in safe operations marked
providing access to affordable and
by the lowest lost-time injuries
clean energy, in line with SDG 7.
and absence of fatalities.
 ADANI ELECTRICITY MUMBAI LIMITED
094 ANNUAL REPORT 2022-23

Environment
AEML encourages stakeholders ƒ AEML is committed to increase ƒ AEML replaced oil type
like consumers, partners, suppliers the share of renewable power switch gears with dry type
and contractors to contribute procurement from 3% to 30% by maintenance-free equivalents
towards these practices. FY 22-23 and 60% by FY 26-27
ƒ AEML used environmental-
AEML conducted Energy ƒ AEML tied up with hybrid (solar friendly ester-filled transformers
Efficiency and Energy + wind) 700 MW PPA with
ƒ AEML encouraged consumers
Conservation sessions attended minimum guaranteed capacity
to switch to green power
by approximately 35,700 utilisation of 50%
voluntarily in Mumbai
participants. AEML celebrates
ƒ AEML replaced high-pressure
World Environment Day (each ƒ AEML created an environment
sodium vapour lamps with LED
June), Coastal Clean-up Day free of single use plastic
lamps for streetlights
(each September) and Energy
ƒ AEML aims to achieve zero
Conservation Week (each ƒ AEML used non-carcinogenic
waste to landfill
December). biodegradable silica gel in its
transformers ƒ AEML intends to recharge
AEML’s environment preservation
ground water through rain
initiatives have been outlined as ƒ AEML replaced its existing fleet
water harvesting
follows: run on fossil fuel with electric
vehicles

Health and safety

ƒ AEML is committed to EHS procedures and best life safety and protection with
the health and safety of practices into operations, minimum power disruption
its employees by providing conducts IER/HERA review
ƒ AEML invested in disaster
and maintaining safe and and EHS training activities and
management equipment,
healthy workplace through undertakes periodic reviews of
owning and leasing mobile
the implementation of EHS standard operating procedures
generation sets, increasing
management systems to to mitigate health and safety
substation height (ground plus
minimise health and safety risks
one) and power rubber boats
hazards
ƒ AEML documented a Disaster (used in water logging)
ƒ AEML monitors the EHS Management Plan to ensure the
management system, integrates

Community
AEML is involved in corporate kits to government schools in owning families to provide support
social responsibility (CSR) Dahanu Taluka for livelihood for landless laborers
activities, committed to
Health development: Collaborated Community infrastructure:
sustainable socio-economic
with medical agencies like Tiya Installed drinking water filtration
development. AEML intends
Healthcare to provide free medical plant in Agwan village (capacity
to invest each year in the
checks in villages surrounding 5m3/hr), where around 5,500
furtherance of its CSR initiatives.
Dahanu people benefited
As a part of its CSR policy, AEML
intends to focus on education, Skill development programme: Rationale for Issuance: Through
health care, sustainable livelihood Trained over 1,100 individuals in the issuance of Sustainability-
development and community tailoring training programmes Linked Bonds (SLBs), AEML aims
infrastructure development. (1,035 became employed in the to address environment issues
Its key initiatives comprise the garments industry) with positive outcomes. The
following: issuance of these SLBs could
Tribal development programme: In
inspire other companies to do the
Education: Constructed school association with NABARD covered
same
buildings and provided e-learning 11 Dahanu villages and 1,000 land-
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 095

Governance
The Board comprised two Independent Directors. The Directors comprised individuals possessing subject
matter expertise. The Board was supported by focused Committees. Business issues were actively and
freely debated, resulting in deliberated and informed decision making.

Board and Committees

Board of Directors Independent Directors Nomination & Remuneration
The Company received Committee of Directors
Mr. Anil Sardana
Chairman and Non-Executive declarations from all Independent Mr. K Jairaj
Director Directors confirming that they Chairman
meet the criteria of independence
Mr. Kandarp Patel as prescribed under the Mrs. Chandra Iyengar
Managing Director Companies Act, 2013. Member

Mr. Sagar Adani The Board is of the opinion Mr. Sagar Adani
Non-Executive Director that the Independent Directors Member
of the Company hold highest
Mr. Kalaikuruchi Jairaj standards of integrity and possess Mr. Quinton Choi
Independent Director requisite expertise and experience Member
required to fulfill their duties as
Mrs. Chandra Iyengar Corporate Social Responsibility
Independent Directors
Independent Director Committee of Directors
Committee composition Mr. Kandarp Patel
Mr. Quinton Choi Chairman
Audit Committee of Directors
Non-Executive Director
Mr. K Jairaj Mr. K Jairaj
Mr. Kenneth McLaren Chairman Member
Non-Executive Director
Mrs. Chandra Iyengar Mr. Sagar Adani
Member Member
Mr. Sagar Adani Mr. Quinton Choi
Member Member

Corporate governance
The Company enjoys a rich legacy distributors and other third parties The ethics and governance
of ethical governance practices. who work with the Company must framework is anchored by policies
comply. The Code of Conduct and procedures, covering Anti-
The Company’s Code of
enables every person working for Bribery and Anti-Corruption
Conduct (the Code) outlines
and with the Company to make (ABAC), Policy on Vigil Mechanism,
the commitment to principles
the right choices and demonstrate Prevention of Sexual Harassment
of integrity, transparency and
the highest standards of integrity at Workplace (POSH) and Whistle
fairness that employees, suppliers,
and ethical behaviour. Blower Policy.

Compliance
The Company is committed to responsibility in all operations. we consistently strive to ensure
uphold the highest standards of Compliance is a crucial element that we are fully compliant to all
ethical, social, and environmental of our business strategy, and relevant laws and regulations.
 ADANI ELECTRICITY MUMBAI LIMITED
096 ANNUAL REPORT 2022-23

Internal Financial Controls

The Corporate Governance The Company’s Financial Policies related to the Information
Policies guide the conduct of Statements are prepared on Management reinforce the
affairs of the Company and clearly the basis of the Significant control environment. The systems,
delineate the roles, responsibilities Accounting Policies that are Standard Operating Procedures
and authorities at each level of carefully selected by Management and controls are reviewed by
its governance structure and and approved by the Audit Management. These systems and
key functionaries involved in Committee and the Board. These controls are subjected to Internal
governance. The Code of Conduct Accounting policies are reviewed Audit and their findings and
for Senior Management and and updated from time to time. recommendations are reviewed
Employees of your Company The Company uses SAP ERP by the Audit Committee which
(the Code of Conduct) commits Systems as a business enabler and ensures the implementation. The
Management to financial and to maintain its Books of Account. Company has in place adequate
accounting policies, systems The transactional controls built internal financial controls with
and processes. The Corporate into the SAP ERP Systems ensure reference to the Financial
Governance Policies and the appropriate segregation of duties, Statements commensurate with
Code of Conduct stand widely appropriate level of approval the size, scale and complexity of
communicated across the mechanisms and maintenance its operations.
Company at all times. of supporting records. The
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 097

Enlightened empowerment:
Elevating corporate
social responsibility for a
sustainable future

Overview
The AEML CSR mission is to AEML’s CSR activities are being We invest in education
facilitate benefits without driven in Mumbai and Dahanu (foundational numeracy and
distinction of caste or community, across the following core areas: literacy) aligned with the National
sector, religion, class, or creed, Education Policy 2020. In
ƒ Education support programmes
in the fields of education, Mumbai, Project ‘Uththan’ was
community health, and promotion ƒ Sustainable livelihood implemented to improve the
of social and economic welfare development learning gap in BMC schools,
and upliftment of the people in improve foundational numeracy
general. and literacy, promote Joyful
 ADANI ELECTRICITY MUMBAI LIMITED
098 ANNUAL REPORT 2022-23

education, improve attendance The ‘Swabhimaan’ project provides for business planning, market
and retention. a platform for urban poor women research, financial management,
through training, handholding, raw material procurement and
One addressable area is the
financial literacy, business plan inventory management, and
promotion of entrepreneurship
and available resource mapping. marketing. The SHG comprises
and community development
The programme covers aspiring women who come together to
through Entrepreneurship
entrepreneurs to learn skills save money, provide loans to
Development Programme (EDP)
in managing their business. It each other (internal lending), and
and Entrepreneur Self-Help Group
complements core skills training engage in income-generating
(ESHG), empowering individuals
with the additional support activities.
and communities.

Projects undertaken in Mumbai

Education support programme and writing skills for which a 19,679 sq ft. This created an
- Uththan: Initiated in Mumbai baseline survey was conducted. ambience of learning and
with BMC schools, covering Uththan Sahayaks deliver self-education. Some 350 BMC
approximately 12,000 children. the programme components. teachers benefited through
The objectives comprise The content is utilised as an choice-based learning.
increased enrollment, instrument to extend the
Jallosh 2022: An education
attendance, and retention, teaching material to children
fair to showcase their talent
enhanced academic (FLN) in a systematic way. More than
and learning outcome through
and co-curricular activities, 10,000 children attended FLN
various creative activities. Some
and joyful education. This sessions at BMC schools. Some
800+ children, 250+ parents,
programme commenced 9,500+ FLN sessions were
8 BMC school principals and
in September 2021 and is carried out in six months; 300+
40 teachers participated. The
addressed internally. Detailed sessions were carried out for
pre-Christmas celebration
mapping was conducted in 100 craft and sports activities; 500+
comprised games, stage
BMC schools in Tilak Nagar, sessions were carried across co-
performances, prize distribution
Chembur, Ghatkopar, Kurla, curricular activities and one-on-
and exhibition stalls.
Vikhroli, Malad, Borivali and one counselling.
Kandivali. The outcomes comprised
BaLA: Project Uththan extended
improved student attendance
Foundational numeracy literacy: infrastructural makeover for
and retention and lower
The FNL serves children to BMC school by introducing
dropout.
create a base or foundation talking walls in BMC. Some 26
of basic learning, reading, schools were covered across

Sustainable livelihood development

The Company invested in women’s designed to mobilise women successful qualification. Some 20
empowerment in Mumbai. with similar aspirations and form ESHGs were ready for gradation
Entrepreneur Self Help Groups. with banks. Some 55 women
Entrepreneurship Development
The ideal group size was 15 were identified for creative
Programme and Entrepreneur Self
women on average. Some 1,500 stitching training; 21 women
Help Group were two initiatives
women were mobilised and 100 were supported with sewing
implemented
ESHGs were formed. Women machines through a convergence
Project Swabhimaan, Malad: started savings (H150 to H200 per with United Way, Mumbai, and
This project addressed a dense month) and collective monthly H5,20,000 was provided to the
population with most houses savings was H2,25,000 with an women. A formal agreement was
engaged in casual labor, migrant aggregate saving of H6,50,000 signed with BOI, HDFC Bank,
communities and dysfunctional being their ESHG accounts. Some IDBI Bank and Saraswat Bank for
self-help groups. The project was 50+ grooming sessions were ESHG credit linkage and business
designed for three years address organised for ESHGs Gradation plans. In the second year, some
4,000 women in 36 months (70% of ESHGs by the bank – facilitate 1,900 women were likely to be
entrepreneurs). The project was the entire process to ensure
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 099

mobilised, a total of 3,600 women role and responsibilities as social training was conducted in Warli
will be groomed as entrepreneurs. change, the Company celebrated art with 30 women in Bandra;
Savitri Bai Phule birth anniversary a jobwork-based assignment
Community engagement event:
with the SHG women. More than helped 15 women collectively earn
A session on health care and
100 women participated. H25,000 in 15 days.
personal hygiene was conducted
with 100 women in Mira- Some 300 women were trained Community infrastructure
Bhayander. in 10 trades; 800 women were development: Developed a Zari
mobilised in Mira-Bhayander; Mari Garden in Mira Road, the
Savitri Bai Phule Day celebration:
backward and forward linkages garden development comprising
Women are the key agents of
were created; SHG women plantation, children’s play area and
social change. To motivate and
invested H65,000 collectively walkway development.
empower the women on their
and earned H1,18,700. Ten days of

Employee Volunteering Programme (EVP)

International Yoga Day: A session Nutrition awareness session: camp were organised for AEML
on basic yoga and the importance Seeds for a kitchen garden were employees.
of healthy lifestyle was conducted provided.
Blood donation camp: This was
in a MBMC school in Mira-
Organ donation registration: organised on the Chairman’s 60th
Bhayandar where 70 children
In association with Mohan birthday in 10 divisions; 583 units
and 30 parents participated.
Foundation, an organ donation of blood were collected in AEML
Ms. Falguni Mehta from AEML
awareness and registration Mumbai and 2,210 units amongst
volunteered as resource person
Mumbai businesses.
for the event.

Projects undertaken in Dahanu

School Praveshotsav: The covered. The kit consisted of a schools while providing a
Company planned to welcome school bag, slate, pencil, drawing colorful ambience. The Company
first standard students with book, scale, and color box. identified 10 schools for projects;
a welcome kit via ‘school classrooms were painted with
BaLA painting project: BaLA
Praveshotsav’ activity in 62 Zilla creative content. Some 60
– Talking Walls promote ‘choice-
parishad schools of the Dahanu students benefited.
based’ and ‘self’ learning in
block where 1,050 children were

Community health
The biomass choola is resulted in 11 cancer detections Emergency management training:
scientifically designed for fuel referred for further treatment. Hands-on training of CPR and
efficiency and the comfort of onsite emergency management
Diabetic retinopathy detection
women, the portability making was organised with Indian Medical
camp: The diabetic retinopathy
it user-friendly. The Company Association; 110 auto drivers
detection camp was organised
planned and implemented participated.
with Indian Medical Association in
100 units in three identified
Dahanu. The camp was organised Mega medical camp: This was
panchayats.
where 76 participants attended organised by Sub-district Hospital,
Medical camps: The Company and were screened. Dahanu, involving more than 15
committed towards community specialist doctors with diagnostic
Mental wellness: The camp was
wellbeing. Specialty medical and medication facilities across
planned where seminar and
camps were organised with Indian four days.
personal counselling sessions
Medical Association, Dahanu
were conducted around mental Water filter installation: The
Cancer detection camp: The camp health and wellness with Indian Company provided an industrial
was organised in coordination Medical Association. Participants water filter unit at – Agwan,
with Rotary Club-Dahanu with comprised 120 students. Kharbavpada. More than 450
110 pre-registered patients that families benefited.
 ADANI ELECTRICITY MUMBAI LIMITED
100 ANNUAL REPORT 2022-23

Sustainable livelihood development

The Company supported Swabhiman center: Under Construction of mother and
sustainable livelihood options the women’s empowerment childcare unit: The Company
to promote growth and programme, the Company aimed collaborated with the
development. Nine progressive to empower women through administration to create this
beneficiaries started sapling livelihoods support. The team facility at Sub-District Hospital in
nurseries and earned H4,42,100 in identified 20 SHGs in Sarvali Dahanu.
two months. Some 10 vermi beds village and initiated interaction on
Saksham: This skill development
were provided to farmers with livelihood programs. It organised
project provided courses
25,000 Kg production harvested, an exposure tour to Umbergaun
(tailoring, computer courses,
and each beneficiary earned more Textile Association and one
crane operation, beautician
than H2,500 after consumption stitching unit.
courses etc.) with successful
of 50% produce at their farms.
Community infrastructure placement. ASDC, Dahanu, trained
More than 200 farmers marketed
development: The Company 92 candidates in FY 22-23 with an
jasmine and earned H10,000 per
attempted to bridge gaps by 88% placement ratio.
month for nine months (average).
providing safe drinking water,
More than 1,000 kg of mango Project Udaan: Exposure tours
employment and wellness
were harvested by each farmer, for students facilitated visits to
initiatives.
generating H3.50 Lakh in a season. facilities of Adani Port, Adani
More than 60 beneficiaries Development of schools: The Power, and Adani Wilmar in
connected with the Government Company constructed Zilla Mundra, Hazira, Dahanu, Kawai,
scheme and availed benefits of Parishad School in Aagwan. Tirorda and Dhamra to inspire
‘Pradhan Mantri Aavas Yojana’. The school rooms construction them to dream big. Some
Landless beneficiaries were helped establish the 9th and 10th 91 colleges visited the unit,
supported with various trades, standards in these villages. comprising 4,472 students.
generating more than H3,000 per
month.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 101

Independent verification statement:

performance against sustainability
performance targets
Introduction Responsibility of ƒ Verification of Scope 2
DNV Business Assurance India Pvt management of AEML and emissions covering:
Ltd (DNV) has been commissioned DNV Purchased electricity from grid
by the management of Adani AEML is responsible for the to meet the auxiliary power
Electricity Mumbai ltd. (‘the collection, analysis, aggregation requirement in generation,
Company’ or ‘AEML’, with of data and assumptions required transmission & distribution assets
corporate identification number: for reporting performance against owned by AEML and any related
U74999GJ2008PLC107256) the above KPIs during the current losses.
to carry out an independent reporting period i.e., FY 22-23.
verification of the performance ƒ Verification of GHG emission
While performing our external (CO2) intensity – Scope 1 and
against the following Key review, DNV’s responsibility
Performance Indicators (KPIs) and Scope 2 emission intensity based
is limited to planning and on verified GHG emissions and
sustainability performance Targets performing the engagement to
(SPTs) taken by the Company financial audited EBIDTA figures
provide limited level of verification of AEML for the reporting period
under its Sustainability Linked and forming an independent
Bond (SLB) framework issued FY 22-23.
conclusion on whether the
related to integrated power utility disclosure of performance level ƒ Verification of renewable energy
business in Mumbai, India and of above KPIs is free of material share in the total energy procured
disclosed AEML’s GHG emissions misstatement and meets by AEML during the current
in GHG report FY 22-23 (scope the disclosure requirements. reporting period and assessing the
1 and scope 2) and Renewable DNV’s responsibility is to the performance against the KPI 1 as
Power share report FY 22-23, for management of the Company and compared to base year.
the period from 1st April 2022 – 31st in accordance with terms agreed
March 2023. Boundary of verification:
with the Company.
Operational boundary for
Key performance Indicators (KPIs) DNV disclaims any liability or verification has been selected
and Sustainability performance co-responsibility for any decision based on the “operational control”
Targets (SPTs): a person or entity would make criteria and includes its Integrated
KPI 1: Increase in renewable based on this verification power Utility business for power
power mix in the overall power statement. The verification was distribution to consumers in
purchase mix with following carried out during the period May- Mumbai, Maharashtra.
targets: June 2023 by a team of qualified
sustainability and GHG assessors. Limitations to the scope of work:
SPT 1: Attain at least 60% of We did not come across any
renewable power procurement Scope, boundary and limitations to the agreed scope
mix by the end of FY 26-27 of work. The reported data on
limitations of verification
KPI 2: Reduction in GHG emission financial performance and EBIDTA
ƒ Verification of Scope 1
intensity (Scope 1 and Scope 2) numbers within the report for
emissions covering:
with the following targets: respective period are based on
Fossil fuels used in stationery the audited financial statements
SPT 2: Reduce GHG emission and mobile equipment; fossil fuel which have been subject to
intensity (scope 1 and scope 2) used for electricity generation and separate independent statutory
by 60% by the end of FY 2029 releases of SF6 and refrigerant audit process and is not included
compared with baseline of FY gases used in equipment in DNV’s scope of work.
2019

1
The DNV Code of Conduct is available on request from www.dnv.com
 ADANI ELECTRICITY MUMBAI LIMITED
102 ANNUAL REPORT 2022-23

Verification methodology: quality check system, recording ƒ Review of performance against

DNV has conducted limited system the SPT-1 and SPT-2 as agreed
level of verification using with the AEML team.
ƒ Onsite assessment of following
DNV customised verification
sampled sites carried out for
methodology as per DNV Conclusion
generation and Transmission &
VerisustainTM which covers Based on the verification
Distribution sites as below:
the principles of international methodology and scope of work
assurance best practices, • Generation site – Adani agreed upon, nothing has come
including ISAE 3000 (revised). Dahanu Thermal Power Station to our attention to believe that
A customised engagement was “Renewable Power mix in the total
• Transmission & Distribution
carried out covering the principles energy procured by AEML” (SPT-1)
sites – Mumbai sites located at
of completeness, accuracy and and GHG emission (CO2) intensity
Magathane, Versova & Kandivali
reliability, while adopting a risk- (SPT2) as brought out in the table
based approach towards selection During the site visit, DNV team below are not materially correct
of samples for assessing the verified the identified emission and is not a fair representation
robustness of underlying data sources, activity data and also, of the performance of KPIs
management system, information verified the evidence for sampled taken by Company for current
flow and controls. DNV carried out disclosures. reporting period FY-22-23. Minor
following activities: data inaccuracies were observed
ƒ Sample based review of the
ƒ Desk review of company’s system in place for collection of during the verification process
GHG reports for FY 22-23, AEML data pertaining to Power procured and the same is attributed to
Generation site GHG report – and GHG emissions, including the transcription, interpretation and/
FY 22-23 – Adani Dahanu Thermal emission factors and calculation or aggregation errors. All such
Power Station, AEML Transmission methodologies. errors have been communicated
& Distribution sites GHG report – and corrected.
ƒ Interaction with key managers
FY 22-23 at DDLO and BKC Office
and data owners to review data
ƒ Assessment of AEML’s data consolidation systems of the
management system, collection, Company and sampled operational
aggregation, reporting system, plants.

Renewable power mix Purchased Electricity (KPI-1):

Description Unit FY 18-19 FY 22-23
Renewable energy procured from eligible renewable sources Million (Mus) 280.73 3,002.41
Energy procured from sources “Other than Renewable” Million (Mus) 9,032.91 6,993.10
Total Energy procured Million (Mus) 9,313.64 9,995.51
Percentage of electricity procured from renewable sources 3.01% 30.04%
Notes:
1. Eligible Renewable Energy sources are considered as per ‘Renewable Purchase Obligation, its Compliance and Implementation of
Renewable Energy Certificate Framework Regulations, 2019’ issued by Maharashtra Electricity Regulatory Commission (the “Regulation”)
which means renewable sources such as mini hydro, micro hydro, small hydro, wind, Solar, biomass including bagasse, bio fuel cogeneration,
urban or municipal waste and such other sources as are recognised or approved by Ministry of Power and Ministry of New and Renewable
Energy, Government of India.
2. This includes utilisation of 3,268.16 Mus in FY 18-19 and 3,153.84 Mus in FY 22-23 through embedded captive generation as per power
purchase arrangement for the years ended on 31st March 2019 and 31st March 2023. The FY 18-19 (Baseline year) numbers are referred from
assured numbers reported by AEML.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 103

GHG emissions (Scope 1 and Scope 2) summary

Scope Emission source Total GHG emissions (FY 22-23)
Scope 1 Fossil fuels (Coal, diesel, Petrol, LDO, LPG) used 28,24,704.04
in stationery and mobile equipment, coal used in
electricity generation process, SF6 & refrigerants
used in operations & maintenance activities and CO2
emissions from fire extinguishers
Scope 2 Emissions arising from consumption of purchased 4,85,455.43
electricity towards auxiliary power consumed in
generation, transmission & distribution assets owned
by AEML and Transmission & Distribution losses
incurred

GHG emission Intensity (KPI -2)

Parameter Boundary of emission FY 18-19 FY 22-23
within the Company
GHG tCO2 e AEML – Scope 1 and 3,750,069 33,10,159.5
scope 2 emissions
EBITDA in H in Crore AEML 1,664 2,381
Emissions intensity (t CO2 e/EBITDA in H in Crore) 2,254 1,390.24
Notes:
1. The reported data on EBITDA of AEML within the report are based on audited financial statements of respective year
2. 1 Crore = H100,00,000
3. The FY 2018-19 (baseline year) numbers are based on assured numbers reported by AEML.
Without affecting our assurance opinion, we also provide the following observations evaluating the Report’s adherence to the Reporting
Principles of the GRI Standards and principles of AA1000AS:

Principles of the AA1000 Materiality respond to issues identified

Accountability Principles AEML has defined the key issues as material and significant
material to its ability to create w.r.t stakeholders (internal or
Standard (2018) external). Nothing has come to
value in its disclosures. The key
Inclusivity issues are all in context of the our attention to suggest that the
AEML consulted key internal and KPIs defined and these issues are Company’s system does not meet
external stakeholders which have monitored on regular basis. the requirements related to the
been identified as significant Principle of Responsiveness.
Nothing has come to our
by AEML for disclosures w.r.t
attention to suggest that the Impact
their performance against
Company’s system of considering The level to which an organisation
the KPIs defined. Company
the key issues impacting the monitors, measures and is
procedures defines the modes and
KPI performance, does not meet accountable for how its actions
frequencies of engagement with
the requirements related to the affect its broader ecosystems.
stakeholders towards identifying
Principle of Materiality.
their key priority areas. The Company’s system brings
Nothing has come to our Responsiveness out the key performance metrics,
attention to suggest that the The Company’s internal surveys and management
Company’s systems does not meet procedures and policies processes used by AEML to
the requirements related to the adequately brings out strategies, monitor, measure and evaluate
Principle of Inclusivity. management systems and its significant direct and indirect
governance mechanisms to impacts.
 ADANI ELECTRICITY MUMBAI LIMITED
104 ANNUAL REPORT 2022-23

Nothing has come to our Company’s reporting system of management systems,

attention to suggest that the for SLB KPI performance is well and accordingly maintains a
Report does not meet the established traceable to source comprehensive system of quality
requirements related to the of information. During the control including documented
Principle of Impact. sample verification, some data policies and procedures regarding
inaccuracies were identified and compliance with ethical
Specific Evaluation of the were found to be attributable to requirements, professional
Information on KPI Performance transcription, interpretation and standards and applicable legal
We consider the methodology aggregation errors, and these and regulatory requirements.
and the process for gathering errors have been communicated
information developed by AEML We have complied with the
and corrected.
for its SLB KPIs performance DNV Code of Conduct1 during
reporting to be appropriate, and Nothing has come to our the assurance engagement
quantitative data included in the attention to suggest that the and maintain independence
bespoke performance reporting Reported information on SLB as required by relevant ethical
spreadsheets was found to be KPI performance does not meet requirements including the
identifiable and traceable; the the requirements related to the DNV’s VerisustainTM. This
personnel responsible were able Principle of Reliability. engagement work was carried
to demonstrate the origin and out by an independent team
interpretation of the data and its Statement of competence of sustainability assurance
reliability. and independence professionals. DNV was not
DNV applies its own management involved in the preparation of any
Reliability standards and compliance policies statements or data included in the
The accuracy and comparability for quality control, in accordance Report except for this verification
of information presented, as well with ISO IEC 17021:2015 Statement. DNV maintains
as the quality of underlying data - Conformity Assessment complete impartiality toward
management systems. Requirements for bodies stakeholders interviewed during
providing audit and certification the assurance process.

For DNV Business Assurance India Pvt. Ltd.

Sharma, Digitally signed by Sharma, Anjana Chaudhari, Digitally signed by Chaudhari, Tushar
Date: 2023.07.11 Date: 2023.07.11
Anjana 08:54:48 + 05’30’
Tushar 10:04:14 + 05’30’
DNV Audit team Assurance Reviewer
Anjana Sharma Tushar Chaudhari
Lead Verifier/Project Manager Assurance Reviewer,
Sustainability Services, DNV Business Assurance India Private Limited, India
DNV Assurance India Private Limited, India
Ankita Parab
Verifier
11 July 2023, Mumbai, India.

DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification, assessment
and training services, helping customers to build sustainable business performance. www.dnv.com
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 105

Directors’ Report
To
The Members,

Your Directors present the 15th Annual Report together with audited financial statement of the Adani Electricity
Mumbai Limited (hereinafter “Company” or “AEML”) for the year ended 31st March 2023.

Financial Highlights
Summary of the financial results is as under:
(H In Crores)
Particulars 2022-23 2021-22
Total Income 8,692.03 7318.59
Total Expenditure 9,523.97 7729.94
Profit/ (Loss) Before Rate Regulated
Activities, Exceptional Items and Tax (831.94) (411.35)
Add/ (Less): Regulatory Income/ (Expenses) (Net) 1,035.58 682.47
Profit/ (Loss) Before Tax 203.64 271.12
Tax Expenses 108.46 148.96
Net Profit/ (Loss) 95.18 122.16
Other Comprehensive Income/ (Expenses)
- Items that will not be reclassified to profit or loss - 17.17
- Tax related to items that will not be reclassified to profit or loss (8.38) (3.00)
Effective portion of gains and losses on designated portion of hedging (65.55) (151.87)
instruments in a cash flow hedge
Other Comprehensive Income/ (Expense) (73.93) (137.70)
Total other Comprehensive Income/ (Loss) 21.25 (15.54)

During the year under review, the Company’s operating across the western and northern regions of India.
EBIDTA registered at H2,380.52 Crore and PBT stood ATL currently operate more than 14,279 circuit km of
at H203.64 Crore as on 31st March 2023. transmission lines and around 20,765 MVA of power
transformation capacity.
The audited financial statements of your Company
as on 31st March 2023, prepared in accordance with The Company is a licensee for an integrated power
the relevant applicable IND AS and provisions of distribution, transmission and generation business
the Companies Act, 2013, forms part of this Annual that currently serves more than 12 million consumers
Report. across a license area of approximately 400 square
kilometers in and around city of Mumbai, the world’s
There are no material changes and commitments
seventh largest city by size of population
affecting the financial position of the Company
between the end of the financial year and date of this The Company’s market share of Mumbai is
report. approximately 87% by license area, 67% by consumers
served and 55% by electricity supplied.
Performance of the Company As an organisation, AEML believes in the motto –
Business Operations The Power of Service. It is born of the will to make
Adani Electricity Mumbai Limited (AEML) is a a difference and change things for the better. AEML
subsidiary of Adani Transmission Limited, (ATL) continues the quest of providing the best quality
which is one of the largest private sector power service to the customers entrusted with the brand
transmission companies in India with a presence motto of the Power of Service.
 ADANI ELECTRICITY MUMBAI LIMITED
106 ANNUAL REPORT 2022-23

Distribution Business To optimize the effective utilization of our

AEML’s licensed area in Mumbai covers 400 square network and manpower, AEML has installed
kilometers and includes the suburban area of Mumbai the Supervisory Control and Data Acquisition
(approximately 75 percent of Greater Mumbai) and the System (“SCADA System”). The SCADA System
Mira-Bhayander Municipal Corporation area in Thane covers all 33-22/11 kV distribution substations
District. The entire licensed area is urban with a mix and strategic 11/0.4 kV consumer substations
of residential, commercial and industrial consumers. for data acquisition and control. AEML has laid
optical fiber cable in the licensed area in Mumbai
1. Consumers: connecting the distribution substations. This
The number of Consumers using the Company’s optical fiber cable is used as a communications
network as on 31st March 2023 was 31.2 Lakhs. medium for the SCADA System. In addition
The Company has added 50,321 consumers in to ensuring improved reliability and reduced
FY 22-23. interruption in supply, the SCADA System is used
for energy management and for improvement in
2. Network Augmentation: overall system performance.
AEML holds a distribution license granted under
5. Distribution Loss and Collection Efficiency:
Section 14 of the Electricity Act and in force for
a period of 25 years starting from August 16, The company achieved 100.78% collection
2011. AEML distributes power primarily through efficiency for FY 2022-23 as against 103.41%
underground cable network. As on March 2023, during FY 2021-22. Distribution loss of the
the distribution network comprised 5,060 Company for FY 2022-23 is 6.2% as against 6.55%
circuit kilometers of high-tension cables and for the FY 2021-22.
20,589 circuit kilometers of low-tension cables
6. Sales and Revenue:
(including service cables and St. light cables). The
power transformer installed capacity increased to The Company sold 9,063.88 million (PY 7,972
4,447 MVA and distribution transformer installed million) units of electricity to its own consumers
capacity increased to 5,388 MVA with addition in FY 2022-23. Also, the Tata Power Company
of new and augmentation of 9 Distribution Limited (TPC) consumers connected to the
Substations (DSS). The Company added 187 new network of the Company consumed 1,439
Consumer Substations (CSS) totaling to 7,079 million (PY 1474 million) units of electricity in
CSS in its supply area as on 31st March 2023. FY 2022-23. Open access consumers connected
to the network of the Company consumed 317
3. System Demand: million (PY 280 million) units of electricity in
The coincident peak demand of distribution FY 2022-23. The sales revenue of the Company
system in FY 2022-23 was 2,058 MW (Apr’22) as from Distribution Operation for FY 2022-23 was
against 1,743 MW (Oct’21) in FY 2021-22. H7,765 Crore (PY H6,325 crore) including wheeling
revenue of H1,484 Crore (PY 1,332 crore) based on
4. Operating Performance: the tariff determined by the Hon’ble Maharashtra
AEML measures its operating performance in Electricity Regulatory Commission (MERC) for
terms of system distribution losses and reliability FY 2022-23 vide Multi Year Tariff Order dated
indices. AEML system distribution losses were March 30, 2020.
brought down from 6.55% in FY 2021-22 to 6.2%
in FY 2022-23. Most of the existing loss of energy Generation Business
in distribution system is due to heat losses in the The Company owns and operates a coal-fired 500 MW
various component of distribution system with thermal power station at Dahanu (the “Adani Dahanu
a small portion of the loss attributable to meter Thermal Power Station or ADTPS”) in the State of
defects, errors in metering and theft of energy. Maharashtra located approximately 120 kilometers
The superior reliability of AEML network can be from AEML’s licensed distribution area in Mumbai.
gauged from the fact that SAIDI (System Average ADTPS operates 2 x 250 MW generating Units. The
Interruption Duration Index) for the whole year first Unit of the ADTPS started commercial operations
is 22.35 minutes. SAIDI is average duration in in July 1995 and the second Unit started commercial
minutes of sustained interruptions per consumer. operations in January 1996. ADTPS continues to
Due to this the Average System Availability Index maintain its numero-uno operational position among
(ASAI) remains at 99.99%. the power stations in the country. During Financial
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 107

Year 2022-23, the Plant Load Factor was 79.88 % Based) Aarey-Kudus connectivity Scheme under
which was largely on account of low demand in the execution by Adani Electricity Mumbai Infra Limited
western grid and backing down of generation as per (AEMIL).
State Load Dispatch Centre (SLDC) instructions. The
In addition to this, AEML-T has planned six new
station generated 3498.91 million units (MUs) along
220/ 33kV EHV Station schemes and associated
with plant availability of 95.82%.
connectivity to upgrade existing Transmission
network in Mumbai and to facilitate reliable power to
Transmission Business Mumbai consumers.
AEML holds transmission license, granted under
Section 14 of the Electricity Act, and is valid for a At AEML-Transmission, new technologies are
period of 25 years starting from August 16, 2011. continuously explored and deployed for improvement
AEML transmission system comprises of eight 220 in operation and maintenance practices. In FY 23 we
KV/33 KV EHV stations (with installed transformation continue to use, Auto reclose Scheme for Hybrid lines
capacity of 3,250 MVA) and around 573 circuit ( EHV Line + Cable) using Line Differential Protection
kilometers of 220 KV lines, including both overhead is implemented for 3 Nos. of 220kV lines emanating
and underground cable systems. The power received from Aarey EHV Sub Station, thereby improving
at various EHV stations is supplied mainly through System Availability & Reliability. Deployment of
underground cables to AEML distribution receiving SCADA Centralized Patch Management System for
stations for onward distribution to consumers. regular update of OS Patches and anti-virus updates in
There are interconnecting 220 KV lines between all SCADA application servers, operator workstations
all EHV stations in AEML licensed area in Mumbai. and gateways machines across all transmission
The transmission system is also connected to sub-stations.
the transmission systems of Maharashtra State
A. Regulatory updates for AEML:
Electricity Transmission Company Limited and Tata
Power Limited at different interconnection points, 1. Maharashtra Electricity Regulatory
which helps bring additional power into Mumbai Commission (MERC) has notified “Approval
via the State Grid and strengthens the Mumbai of Capital Investment Schemes, Regulations,
power system. The Company always strives to adopt 2022” effective from 12th July 2022 for
best practices, along with efforts to keep the high approval of Capital Investment Schemes for
standards of maintaining network system availability. Generation, Transmission and Distribution
For fiscal year ended 31st March, 2023, the Company businesses. As per these regulations all capital
registered 99.77% system availability, which is above schemes above H25 Cr shall require prior
the norms set by the regulator, thereby company is approval from MERC. The regulations also
operating with 100% ROE. mandate submission of capital investment
scheme’s Detailed Project Reports (DPR)
AEML-T has put up following Scheme DPRs to once every quarter for approval. The capital
Regulator’s for approval in FY 2022-23, e.g. investment schemes where prior approval is
ƒ 220 kV EHV Substation at Chandivali not required are expected to be registered
with MERC.
ƒ 220 kV EHV Substation at Kandivali
2. MERC has issued “Guidelines for allocation of
ƒ 220 kV EHV Cable Connectivity between Aarey assets and cost at different voltage levels of
& BKC distribution”. These shall come into force from
AEML-T has obtained Regulator’s approval for 220 kV 01-04-2025 i.e. from 5th MYT Control Period
EHV Substation at Chandivali in April 23. and will form the basis for determination of
wheeling charges from 01.04.2025 onwards.
AEML-T is currently executing Scheme for Borivali
Ghodbunder Boisar LILO line Augmentation (220kV 3. MERC has issued MERC (MYT) Regulations,
GIS Switching Station) and 220/33 kV EHV Substation 2019 (First Amendment) fixing TBCB
at Bandra Kurla Complex, a prime commercial location Threshold Limit of H500 Crore, excluding
in Mumbai City. 220 kV AIS to GIS DPR scheme at land cost, for Transmission projects. The
Aarey EHV Sub Station is under execution, which will amendment also excludes projects from
upgrade old AIS equipment with latest GIS technology TBCB if the projects for which application
and optimize space utilization for upcoming Bulk for in-principal approval is already submitted
Power injection Schemes.1000 MW HVDC (VSC to the Commission and the same is under
 ADANI ELECTRICITY MUMBAI LIMITED
108 ANNUAL REPORT 2022-23

consideration by the Commission. Most 9. Hon’ble MERC has issued Order dated
AEML transmission schemes are beyond 31.03.2023, in Case Nos. 229, 230, 231 of
TBCB scope. 2022 pertaining to Generation, Transmission
and Distribution businesses of AEML, for final
4. Prestigious consumer Mumbai International
truing of ARR for FY 2019-20 FY 2020-21 and
Airport switched over its supply and network
FY 2021-22, Provisional Truing-up of ARR for
from TPC to AEML. This has added 110 MU
2022-23 and approval of revised ARR and
per year sales on AEML network.
Tariffs for 4th Control Period FY 2023-24 and
5. Metro Line 2A and Line 7 have started taking FY 2024-25. The tariffs in most categories of
supply from AEML-D from 24th Sept, 2022. consumers as approved by MERC for AEML
Annual estimated consumption of both lines are competitive vis-à-vis TPC, offering AEML
is around 100 MU. With this, EHT consumer is an opportunity to acquire customers from
being served for the first time by AEML, in its TPC through switchover and changeover
history. mode.
6. MERC has, on 17th May 2022, issued Order in 10. Pursuant to the direction of Hon’ble MERC in
Case 135 of 2021, wherein AEML had sought Order dated 28th Oct 2022 in Case 4 of 2022,
directions against TPC for willful violation AEML has filed petition before MERC on 7th
of MERC order pertaining to switchover Feb 2023, pertaining to delay in SCOD of 700
of consumers. MERC has accepted AEML MW RE Hybrid Power (AHEJ4L). Notice is
prayer to appoint expert Committee to awaited from Hon’ble MERC.
verify its claims. The Committee already
11. AEML-T has submitted License Amendment
appointed earlier to look into TPC allegation
Petition dated 16th Jun 2022 before the
regarding intentional delay by AEML in
Hon’ble MERC in Case 127 of 2022 for
allowing switchover will also look into the
inclusion of assets created under 5 nos. of
cases highlighted by AEML, wherein TPC
capital investment schemes worth ~ H1,930
has done illegal and selective switchover.
Cr into the existing license. Public hearing
MERC Enquiry Committee appointed to look
was held on 23rd Mar 2023. MERC order is
in to Case 182 violations of switchover, has
awaited.
visited all the sites and submitted a draft
report to the Commission, wherein several 12. Hon’ble MERC has issued Order dated 20th
violations by TPC in network development Jan 2023 in Case 183 and 189 of 2022 filed
have been pointed out by the Committee in by AEML for taking on record the changes/
the cases highlighted by AEML. However, the addition in the group of lenders of AEML.
Committee has also chided AEML for delays in MERC allowed the proposed changes.
carrying out switchover of consumers to TPC
13. Hon’ble MERC has issued Order dated 1st Nov
network. AEML has submitted its comments
2022 in Case 32 of 2022 allowing AEML to
on the said report. Further process from
initiate bidding process for procurement of
MERC is awaited.
power up to 1,000 MW RE-RTC power. The
7. MERC has issued Order on 29th Aug 2022 in Hon’ble MERC has issued another Order
Case 149 of 2022 filed by AEML-D seeking dated 28th Nov 2022 in Case No. 159 of 2022,
tariff adoption for Medium Term Power allowing AEML to initiate bidding process
Purchase of 800 MW at H5.98 per unit for the for further procurement of power up to 500
period 1st Sept 2022 to 14th Oct 2024. MERC MW. Modified bid documents have been
partly allowed procurement of 500 MW at submitted to the Hon’ble MERC on 29th
H5.98 per unit. Dec 2022. Bid has been initiated by AEML
for procurement of 1,500 MW (750 MW +
8. The Hon’ble Supreme Court has dismissed the
additional 750MW under green shoe option)
appeal filed by TPC challenging the Hon’ble
from grid connected Renewable Energy (RE)
MERC Order on the decision to award the
Power Projects, complemented with firm
H7,000 Cr transmission project (220 kV
power from any other Source. The bid process
Aarey–Kudus HVDC link) under Section 62
is underway.
of EA03 to Adani Electricity Mumbai Infra
Limited (AEMIL), a wholly owned subsidiary
of AEML.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 109

14. AENL had filled a petition before MERC (Case filed its Aggregate Revenue Requirement
132 of 2022) for prior / in-principal approval (ARR) Petition (Case 49 of 2023) before
for possibility of increase in cost of power MERC. MERC has yet to initiate proceedings
during FY 2022-23. Vide its order dated 17th in the matter.
November 2022 MERC granted the prayer.
20. Since April 2022, Hon’ble MERC has given
15. AEML-D had filed a petition in Case No. 3 of in-principal approval to Capital Expenditure
2022, before the Hon’ble MERC for transfer schemes worth about H577 Cr. in AEML
of its existing assets in SEEPZ area to ASL Distribution.
for operationalizing the distribution license
21. MERC vide letter dated 30th May 2022
business of ASL. Hon’ble MERC has issued
has approved AEML-D’s DSM program for
the Order on the said petition dated 26th
‘Installation of EV AC slow chargers’ in
December 2022 giving in-principal approval
consumer premises for a budget of H32 Cr.
for asset transfer from AEML to ASL to
be affected from the date of the Order. In B. Sustainable Performance Targets &
the interim, ASL is allowed to charge the Renewable Purchase Obligation:
consumers in its License area, the Tariff and
As a part of our commitment for sustainable
SoC as applicable to the respective category
business operations to increase clean energy
of consumers of TPC-D in totality till such time
procurement to 30% by FY23 and 60% by FY27.
the ARR and Tariff is determined by MERC
It is important to note that AEML has achieved its
for ASL. Subsequently, ASL has filed the ARR
commitment of 30% clean energy in FY 2022-23.
and Tariff petition before Hon’ble MERC on
17th Feb 2023. The matter is pending before AEML is also bound by the RPO Regulations of
Hon’ble MERC. MERC. AEML always pursue to exceed the target
set by Regulator and as a step towards this AEML
16. AEML SEEPZ Limited (ASL), a wholly owned
has signed long term PPA for purchase of 700 MW
subsidiary of AEML, is a co-developer for
Hybrid wind solar power to meet its cumulative
distribution of electricity in SEEPZ-SEZ area.
RPO and the said plant has been commissioned
It had filed a petition before the MERC for
in FY 2022-23. The Company has fulfilled and
taking on record its deemed distribution
exceeded standalone Renewable Purchase
licensee status as per the provisions of the
Obligation target of 19.5% (MERC RPO Target) for
Electricity Act 2003. The Hon’ble MERC has
the FY 2022-23.
issued Order in Case 2 of 2022 on 6th June
2022 confirming the status of ASL as deemed C. Safety & Health:
distribution licensee and the tenure of license The Company always view employee’s health and
is given as 25 years from the date of Order. safety as a priority in the Organization. It always
17. Hon’ble MERC has issued Draft Specific ensures that a rigorous health and safety policy is
License Conditions for ASL and has issued in place to protect the employees against possible
public notice on 28th Feb 2023 inviting occupational risks and reduces the likelihood of
comments till 30th Mar 2023. License is to be accidents in the workplace.
valid for 25 years from 6th June 2022 (Order
i. Safety
in Case 2 of 2022 granting licensee status
AEML bags prestigious GOLD award in
to ASL) till 5th June 2047 or until license
February 2023 organized by OHSSAI for ‘HSE
is revoked whichever is earlier. ASL has
Excellence and Sustainability’.
submitted its comments on the same. The
matter is pending before Hon’ble MERC. The safety of our stakeholders is at the
core of everything we do. Our goal is ‘ZERO
18. As directed by MERC in Case 02 of 2022,
Harm’ and we strive to achieve the same.
ASL has filed a petition before MERC for
We continuously adopt the best available
applicability of changeover and switchover
technologies and upgrade our facilities for
protocol to ASL area of license. MERC has yet
ensuring safety, improved efficiency, and
to initiate proceedings in the matter.
sustainability.
19. In accordance with MERC (MYT) Regulations
Special emphasis is being placed on the
and MERC order in Case 03 of 2023, ASL has
capability development of the workforce.
 ADANI ELECTRICITY MUMBAI LIMITED
110 ANNUAL REPORT 2022-23

We regularly undertake skill development societies and for consumers. 4 webinars were
initiatives to algin our employees with conducted to reach the maximum number of
evolving organizations requirements. Many people.
programs were launched, and 21,421 man-
All the learnings from group incidents are
hours trainings were imparted to strengthen
captured in the form of Critical Vulnerability
our safety culture. Our online reporting portal
Factors (CVF) and are horizontally deployed
‘Gensuite’ was further upgraded for faster and
across the group.
easier reporting. Our Injuries were reduced by
52%. Road safety remained as one of the focus We continue to demonstrate Zero-tolerance
areas for us and several preventive measures towards violation of the policy, Life Saving
were taken to reduce road incidents. Safety Rules, and established procedures.
Much awareness & promotional activities like
Our Safety Governance structure is led by
Celebration of National Safety Week, Road
Functional Managers and participation
Safety Month, Fire Safety Week, Electrical
of workers is ensured at every level. The
Safety Week, National Lineman Diwas were
directives of governance committees and
observed at all locations. Workers were
group guidelines are further cascaded
recognized for their leadership and were
through five task forces.
awarded for their contribution towards
To develop the culture of openness, Safety promoting Environmental, Health and Safety
Interaction (SI) module was started. culture. Industry experts were invited to
11,876 Safety Interactions were done by share their valuable input on every occasion.
management to improve the safety culture.
As a part of leading indicator 6621 near miss ii. Health
was reported and 510 serious injury potential Adani Electricity Mumbai Limited provides
scenarios were rectified. Any employee can health facilities to its employees which are
register their safety concern in an online in-line with the best companies engaged in
portal and immediate action is ensured, 3,016 similar business.
concerns were logged in AEML. We started In accordance with the provisions of IMS, the
capturing the safety concerns of our visitors company not only ensures adherence
and customers by providing access to an
online portal through QR code. to the standards and regulatory norms, but it
goes well beyond the requirements
We continuously check our preparedness for
emergencies through mock drill, 36 numbers thereby providing a safe & healthy working
of mock drills on various emergency scenarios environment.
were conducted. Health of the employees is ensured by the
Special efforts were made on vendor following provisions:
engagement & development through 1. Divisional Medical Centers.
Contractor Safety Management. 100% vendor 2. Tie ups with Hospitals
pre-qualification assessment were done
3. Medi-claim policy for employees & family
based on safety and recorded through online
portal. 10 Sessions of vendor development 4. Executive Health check
programs were conducted. We conduct 5. Statutory onsite annual medical
Safety Risk Field Audit (SRFA) monthly and examination for non-executive employees
calculate Severity Index of our contractor, and Contract employees.
3,586 SRFA were logged in a year.
6. Evaluation of Medical fitness:
To develop healthy safety culture, society a. pre-employment),
needs to be educated on the importance
b. resuming duty after Sick leave &
of safety, prevailing hazards & risks, and its
control measures. We conducted more than c. Extension of Service (for non-
30 awareness sessions in slums, schools, executive employees)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 111

7. Health Promotional Activities: ƒ Participants are imparted knowledge on

a. Health talks assessing and managing general & workplace
injuries & emergency medical situations in
b. Onsite camps
this half a day session. Hands-on-cpr training
c. Mailers on health days. is also provided to the participants.
8. First Aid trainings
ƒ 256 (223+33) employees underwent such
9. Monsoon preparedness: training in Apr-Dec 2022 at GTD.
a. Provision of first aid boxes to team Statutory Annual medical examination for all
members & at static locations employees.
b. Provision of doxycycline for ƒ 600 (45%) executives have availed the
leptospirosis prophylaxis Executive health check so far at Fortis
c. awareness sessions on monsoon hospital, Mulund & 2,227 non-executive
related ailments & injuries. employees underwent the onsite medical
checks, conducted in Nov-Dec 2022 (81%).
10. Occupational role:
ƒ Regarding ADTPS, half yearly medical check-
a. Safety meetings
up was conducted for 189 employees in
b. Employee rehab post injury/illness September 2022 & annual medical check-up
(fitness with r/r) for all employees is scheduled in February
11. Miscellaneous (with admin team) 2023.

a. Canteen audit/committee. ƒ Employees are counseled on one-on-one basis

b. Gym about out-of-range parameters & suggested
curative measures.
c. Water sampling
Planning & implementation of medical initiatives
For FY22-23:
as a part of Monsoon preparedness:
Health awareness -
ƒ As a part of Monsoon preparedness, a total of
ƒ Awareness sessions (Webinars) on:
276 + First-Aid Boxes were replenished.
» GI related illness in Monsoon season,
ƒ Doxycycline was distributed to 4,800+
» Sudden Cardiac death & heart health & outdoor employees (including Contract
» Recent updates on Covid-19 employees) for prophylaxis of Leptospirosis.

were conducted in July, September & December ƒ Awareness sessions on First Aid and Monsoon
2022, respectively. A total of 750+ employees illnesses were conducted at 20+ BU/depots
participated in these sessions. as were attended by 2,000+ employees.

ƒ 30+ additional department-specific talks on ƒ Debriefing done to all reporting managers/

topics such as Ergonomics, health & hygiene, employees regarding emergency response
etc. were conducted & mailers on World-days services.
were also circulated across GTD.
D. Learning and development:
ƒ Blood donation drive was conducted on 24th
Learning and development is about creating
June 2022 along with team CSR & EE to
excellence in building a culture of continuous
mark our Chairman Sir’s Birthday. The drive
learning and upskilling for individuals and
received a tremendous response & 588 units
organization to learn and grow. The Company
were collected across GTD.
has a world-class infrastructure at two of the
Capacity & Capability building for employees in locations in its supply area - Adani Electricity
terms of providing onsite First aid. Management Institute (AEMI) and Versova
Technical Training Center (VTTS), which are well
ƒ Medical team conducts regular First aid
equipped with Hi-Tech infrastructural facilities
training sessions for identified First aiders in
for conducting different courses on technical as
various divisions.
 ADANI ELECTRICITY MUMBAI LIMITED
112 ANNUAL REPORT 2022-23

well as management subjects covering the needs EVidyalaya Percipio: To develop a culture of
of Indian Power and allied Energy sectors. For continuous learning, employees are encouraged
easy access of learning initiatives, two additional to self-learn through eVidyalaya Percipio platform.
training spokes are created in Magathane & Tilak The average learning hours per user is 17.38. Our
Nagar division. executives have attended various bootcamps, live
events, and Leader camps.
Our Generation business has Ministry of Power,
Central Electricity Authority, GoI certified Analytical Orientation: To ensure our senior
Technical Training Center of A-Grade (Excellent, and middle management is equipped with
Category-I) at Dahanu, which is well equipped key analytical skills, we organized extensive
with all infrastructural facilities for conducting workshops on analytics using customer data.
different courses on technical, behavioral, IT as
well as management topics. Leadership Development Program:

Throughout the year under review, the company NorthStar 4.0

has conducted various initiatives along with 31 participants of AEML have been awarded Post
the other programs during the planned learning Graduate Diploma in Business Management by
calendar for its employees. The programs Emeritus in collaboration with Columbia Business
were conducted by internal as well as external School and Tuck Executive Education.
faculties. The initiatives included programs
AEMarvels 2022 & A-Marvels 2023
like AE Marvels and AMarvels - for Leadership
A long duration leadership development program
development, Understanding Financial Aspects
was launched at AEML in the year 2022. 31
of the Utility Sector, “Naya Daur, Nayi Umang” -
AEMarvels (first batch) have completed the
for Personal and Financial Wellness, ignite: Shift
course last year & A-Marvels 2023, which is
the Orbit, technical programs like Power System
in collaboration with IIT-Bombay, is currently
Simulation Studies, Battery Energy Storage
ongoing with 32 identified participants. It includes
Systems, Predictive Maintenance and Health
Assessments - Korn Ferry Leadership tool, Multi
Monitoring of MV Cables, HVDC Cable Orientation,
Ratter feedback (360 degree survey) for creating
Digital Maintenance and Management System,
Individual Development Plan, Personal Discovery
Understanding Power Markets & many more.
workshop with Connect sessions once every
Many programs on safety, health & wellness month for discussing the current status on
were conducted like Unchaai, Think Healthy Live personal/professional goals in respective batches,
Healthy, Ergonomics, Mindfulness, etc. There modules at IIT-Bombay (Financial Aspects for
were special initiatives such as AALP (Adani Strategic Decision Making-4 days, Adoption of
Accelerated Leadership Program) for our summer Digital Transformation & Business Analytics-4
interns from Premium Institutes like IIMs, IITs and days, Managing Self & people leadership-2 days),
FMS, Unique Certification Program under the Coach Connect for both personal & professional
NAPS Scheme, Webinars for students & faculty life, Percipio Courses (2 mandatory ASPIRE
of Engineering College & many more. AEML also journeys), Business Projects with respect to
provided 4 months of training to 76 Diploma current business need/issues in the organisation,
Apprentices & 1 months of training to 37 Interns, Book Reading, Journal Writing, Job Shadowing –
which included both classroom & online training. 12 hours of shadowing a host executive identified
by the functional head, and a visit to Mundra.
AE-Varsity: To constantly meet the evolving needs
of its employees, AEML has launched a knowledge Connect to Customer
management portal - AE-Varsity, to cater to all To enhance customer centricity in our
learning needs of the employees. 200+ videos organization, the Connect to Customer initiative
of conducted sessions have been uploaded on is launched for executives. New joinees, Graduate
the portal with additional features like the HR Engineer Trainees (GETs), Management Trainees
HUB- Monthly HR Newsletter and Podcast, Gyaan (MTs), employees in support service and those
Sagar- a knowledge-sharing platform, Learning functions that do not directly interact with
Calendar, Highlights, Awards & Accolades, customers visit the customer facing departments.
Upcoming Programs, Photo gallery etc. This enables our employees to gain a collective
understanding of what the customer needs
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 113

and to look at the entire work stream from the Voltage are available in this simulation room
perspective of frontline employees. Employees for training purposes. This facility helps to train
also reflect on the customer experience and internal and external participants to understand
issues and share their feedback post visit for any various aspects of power distribution.
further scope of improvement.
Induction Training for GETs / MTs

Unique apprenticeship program at Adani A structured training program consisting of 2
Electricity months of Instructor-Led Training (ILT) and 4
AEML, in association with the Power Sector Skill months of On-the-job Training (OJT) along with
Council (PSSC) under NAPS Scheme (National assessment at various stages is provided to our
Apprenticeship Promotion Scheme) in India, GETs. Our MTs undergo 2 months of training
has launched a training program that offers and are deployed for on-the-job training in their
Triple Certification i.e. certification by PSSC in respective functions. All the GETs and MTs have
the optional trade of Junior Engineer Power visited DTPS and Mundra Sites as a part of the
Distribution, and also covers a vast syllabus, induction program. The GETs have also visited
spread across 12 weeks, on “Certification course the Maharashtra State Load Dispatch Centre as
on Electrical Safety and Design aspects of well as Western Region Load Dispatch Centre as a
Electrical Installation” which is notified by the part of the induction, where the experts at these
Chief Electrical Inspector, Govt Of Maharashtra, centres explained the working of respective grids.
for obtaining PWD Supervisory License that
enables them to work on the electrical system as E. Business Excellence: Business Excellence
an authorized person and to work in the power Journey at AEML
sector with confidence and efficiency. Aligning with our vision to be a world-class leader
and our aspiration to institutionalize a culture of
Three batches of apprentices have completed
Business Excellence, the Generation-Transmission
this structured training consisting of 4 months of
& Distribution businesses of AEML, have made
Instructor-led Training and 8 months of On-the-
rapid progress in achieving these goals. The
job Training, have obtained supervisory license of
company has adopted world-class approaches,
Govt. of Maharashtra based on our training, and
to improve the maturity and capability of its
have been deployed in Network Maintenance
processes, leading to improved business results.
activities of various divisions in distribution.
These approaches will help in meeting our
Simulation Lab at Adani Electricity Management Strategic and Operational objectives, besides
Institute (AEMI) meeting the expectations of our Stakeholders.
A Simulation Lab was inaugurated at AEMI with The foundation of our Business Excellence
working models of a simulation facility on Power journey at AEML, is based on the following pillars:
Distribution at various voltage levels, smart meter
working, protection relays, industrial controls, i. ISO Journey :
motor starters, Fault Passage Indicators, Meter The Quality journey of AEML G-T-D businesses
Board Wiring, CT operated meter working & began in 1997, when the company achieved
Transmission network. Various models of Power its first certification for ISO 9001 (Quality
Transformer, Gas Insulated Substation, Cable Management System). Several milestones,
samples of voltage levels 220KV, 33KV, 11KV & have since been achieved along this ISO
440V, Cable accessories for Medium and Low journey. The businesses are certified as
below:

S.N System Objective AEML-G AEML-T AEML_D

Management Standards Certification Since
1 ISO 90001:2015 QMS: Ensure Quality in processes for 1998 1997 1998
desired output and reliable customer
services
2 ISO 14001:2015 EMS: Address impact of operation 1999 2010 2014
on environment, Climate change,
ensuring Environment compliances
 ADANI ELECTRICITY MUMBAI LIMITED
114 ANNUAL REPORT 2022-23

S.N System Objective AEML-G AEML-T AEML_D

3 ISO 45001:2018 Occupational Health & Safety 2008 2019 2020
practices/compliances
4 EnMS: Address climate change & 2011 2021 2020
Energy Management compliance
5 AMS: Asset Lifecycle management 2016 2016 2014
Risk Protection Standards
6 ISO 27001:2013 ISMS: Ensuring data security 2008 2018 2012
7 ISO 27031:2011 IRBC: Information & communication 2019 2021 2021
technology readiness for business
continuity
8 ISO 22301:2012 BCMS: To safeguard against disruptive 2019 In-process 2021
events and ensure business continuity
Business Excellence Standard/Guidelines
9 ISO 26000:2010 SR: Social Responsibility assessment & 2019 In-process In-process
compliance
10 SA 8000:2014 SA: Promotion of work culture 2007 In-process In-process
fostering employee satisfaction,
ethical business practices & Social
Accountability Compliance
11 ISO 20000-1 ITSM: IT Service Management - - In-process
12 ISO/IEC 17025 Accreditation for testing laboratory 2013 - 2009
by National Accreditation Board of
Laboratory (NABL)
13 Certificate Single Use Plastic Assessment 2021 - -
Certificate
14 Certificate Zero Waste to Landfill Certificate 2021 - -
15 Certificate Water Efficiency Management System 2021 - -
16 Certificate Biodiversity assessment study for all 2022 - -
3 sessions. Rainy and winter season
already completed. Summer season
planned in coming summer
17 5-S 5-S certification 2020 2014 AVVMA in
Platinum JUSE process
The company is well poised to achieve its goal of being comprehensively certified for at least 10 ISO
standards.

ii. Structured Problem-Solving Methodologies been undertaken by the respective teams

AEML has adopted multiple approaches and under each of these approaches, leading
tools, aimed at engaging its employees across to greater maturity of our processes and
the organizational hierarchy viz. a) Lean Six- creating a culture of structured problem
Sigma, b) Quality Circle c) Adani Workplace solving by engagement of our employees.
Management System (AWMS). In this process, The movement has enabled the company to
the Company have created a bank of over gain top recognitions at Regional, National &
260 Lean Six-Sigma Green Belt executives, International competitions.
over 90 Six-Sigma Blackbelts, over 325
employees trained on Quality Circle tools and iii. ABEM Journey at AEML
techniques, over 400 ISO internal auditors, 22 Ever since the launch of “Adani Business
ABEM assessors and over 115 AWMS internal Excellence Model” (ABEM), a series of
auditors. Multiple improvement projects have improvement initiatives were identified and
completed, based on Self-assessment exercise
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 115

conducted for the ABEM categories. These b) BaLA - Dahanu & Mumbai
initiatives are led and mentored by senior Like Uththan BaLA program is also launched in
leaders and well supported by various support Mumbai as well as in Dahanu region. 20 schools
function teams. Employee base of over 1,600 from Mumbai and 10 schools from Dahanu come
executives, has been formally sensitized on under this program. 4,900 students benefit from
the need for Business Excellence and the this initiative.
salient features of ABEM. Multiple rounds of
internal and external assessments have been c) School Praveshotsav
done leading to continual improvements. This initiative is taken to motivation to enroll the
As a recognition of improving maturity, children in schools. Provide Welcome kit to ~1,050
the company has bagged the ‘IMC RBNQA children in 62 Zilla Parishad schools around
Performance Excellence Award’ in the Dahanu and 1,200 children of 13 BMC schools
Service Sector, during the 2021 award cycle. in Saki Naka area Mumbai. AEML also supplies
RBNQA is the highest award, given to any School bags and notebooks to students of urban
company in service sector in this cycle. poor in schools to motivate them to attend school
Earlier, the Generation business had bagged regularly.
the ‘IMC RBNQA Performance Excellence
Award – 2019’ in Manufacturing category Health Care Program
and ‘IMC Ramkrishna Bajaj National Quality a) Specialty Camp
Performance Trophy – 2008’ in respective
AEML conducts special camping for cancer and
award cycle. These recognitions will further
diabetes. A total of 115 patients were examined
reinforce our commitment towards continual
for cancer out of which 8 patients were diagnosed
improvement and Business Excellence.
at HCG hospital, Borivali. 15 patients out of 160
F. Corporate Social Responsibility: were referred for further treatment for diabetes
based on initial diagnosis. Apart from this Mental
AEML as a responsible corporate entity undertakes
health awareness sessions and sessions on CPR &
appropriate Corporate Social Responsibility (CSR)
First AID training was conducted in S.K.K. MBBI
measures having positive economic, social, and
College- Dahanu.
environmental impact to transform lives and to
help build more capable and vibrant communities b) Support to Mega Medical Camp (Dahanu)
by integrating its business values and strengths.
In Dahanu More than 1,650 community people
In its continuous efforts to positively impact the
took benefit of the camp organized by AEML
society, especially the areas around its sites and
where 10+ Specialist Doctors were involved.
offices, the Company has formulated guiding
policies for social development, targeting the c) Organ donation registration camp
inclusive growth of all stakeholders under
An initiative to provide “Gift of Life” to organ
various specific categories including promoting
failure patients through a lifesaving organ. This
education, environment sustainability and health
project is to educate and sensitize people in
care. Following are the initiatives taken by AEML
organ donation. AEML employees took part in this
initiative.
Education
a) Uththan (Mumbai) Community Infrastructure Development
Education program ‘Uththan’ was launched in a) Mother and Child health care unit
60 BMC schools, 250+ Teachers and 12,000+ construction
Children in and around Chembur, which aims
This infrastructure would be utilized for mother
to foster learning abilities in students. It entails
and children unit at block level. The number of
adopting government primary schools, tutoring
mothers child will benefit through much needed
Priya Vidyarthis (progressive learners), arresting
basic specialist services.
dropout rates and collaborating for staff capacity
building. Teachers and parents are brought b) School rooms construction
onboard to enhance foundational learning and
In Dahanu there is no availability of class 9 and
numeracy skills among students.
class 10 standards due to lack of infrastructure.
 ADANI ELECTRICITY MUMBAI LIMITED
116 ANNUAL REPORT 2022-23

Hence The rooms are constructed with a clause Dividend

that Govt. will provide 9 & 10 STD to school. More Your Company has already paid an interim dividend
than 200 children would benefit every year. @8.5% (H0.85 per share of H10 fully paid up) on the
c) Installation of water filter unit fully paid-up Equity Share Capital of the Company
as recommended by the Board of Directors of the
This initiative is taken to provide pure drinking
Company at its meeting held on 26th May 2023
water schools. The initiative would benefit more
for the year 2022-23 resulting into an outflow of
than 300 students in the school.
H341,77,00,004.75 (inclusive of tax).

Sustainable Livelihood Development Your Director wish to conserve resources for future
expansion and growth of the Company. Hence, your
a) Swabhimaan Directors have decided not to declare any further
ESHG and skill development training to women final dividend for the year under review.
and Livelihood development of women by training
in shirt-making and other credit link & govt. Changes in Directors in Key Managerial
schemes in Malad, Bandra and Mira Bhayander. Personnel (KMPs)
Impacted lives of more than 2,500 women.
Pursuant to the provisions of Section 149 of the
b) Integrated Tribal Development program Companies Act, 2013, (“Act”) Mr. K Jairaj was appointed
as an Independent Director of the Company w.e.f 29th
SHGs are formed, Solar water pumps are installed
August 2018 for a period of 5 years. Accordingly, his
impacting the lives of 35 Farming Houses.
term is expiring on 28th August 2023.
₹26,50,000 collected via FPO affecting 1,000+
farmers. Collective marketing of Jasmine making Pursuant to Section 149 of the Act and as
H16.80 Lakh recommended by the nomination and remuneration
committee, it is proposed to re-appoint Mr. K Jairaj as
Rewards & Recognitions Independent Director of the Company for a second
A. AEML received “Golden Peacock Innovation term of 5 years at the ensuing Annual General Meeting
Management Award - 2022” of the members with effect from 29th August 2023.

B. AEML bagged 3 awards at the IMC RBNQA Making Pursuant to the provisions of Section 196, 197 and
Quality Happen in 2022 –Two teams bagged other applicable provisions of the Companies Act,
1st prize MQH best practice trophy and 1 team 2013, (“Act”) Mr Kandarp Patel was appointed as
bagged 2nd Runner up certificate Managing Director of the Company for a period of five
years at the Annual General Meeting of the Company
C. International Convention on Quality Control held on 29th August 2018. Accordingly, his term is
Circles 2022 - All 7 participating teams won the expiring on 28th August 2023. As per provisions of the
GOLD award Shareholders Agreement dated 10th February 2020
entered into between Adani Transmission Limited,
Annual Return AEML and Qatar Holdings LLC, the Company has
The Annual Return of the Company as on March 31, received recommendation to consider re-appointment
2023 is available on the Company’s website and can of Mr. Kandarp Patel as a Managing Director of the
be accessed at https://www.adanielectricity.com/ Company for 5 years. Pursuant to Section 149 of the
Investor-Relations. Act, it is proposed to re-appoint Mr. Kandarp Patel as
Managing Director of the Company for a period of 5
Reserves years at the ensuing Annual General Meeting of the
The Company has not transferred any amount to the members with effect from 29th August 2023.
General Reserves during the year under review. The Company has received confirmations from
Mr. K Jairaj and Mrs. Chandra Iyengar, independent
Subsidiary Companies director(s) stating that they meet with the criteria of
As on date, Adani Electricity Mumbai Infra Limited and independence as prescribed under subsection (6) of
AEML SEEPZ Limited are subsidiaries of the Company. Section 149 of the Act and there has been no change
in the circumstances which may affect their status as
A statement containing the salient features of the
Independent Directors during the year under review.
subsidiary is provided in AOC-1 as Annexure A.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 117

Pursuant to the requirements of the Act and Articles taking into account the views of Executive Directors
of Association of the Company, Mr. Quinton Choi, and Non-Executive Directors and assessed the
Director is liable to retire by rotation and being eligible quality, quantity and timeliness of flow of information
offers himself for re-appointment at the ensuing between the Company Management and the Board
Annual General Meeting. The Board recommends the that is necessary for the Board to effectively and
re-appointment of Mr. Quinton Choi for your approval. reasonably perform their duties.

Directors’ Responsibility Statement Auditors Report

Pursuant to Section 134(5) of the Act, the Board of The observations and comments given by the
Directors to the best of their knowledge and ability auditor M/s Deloitte Haskins & Sells LLP, Chartered
state the following: Accountants (Firm Registration No. 117366W/W-
100018) in their report together with notes to
a. that in the preparation of the annual accounts,
Accounts are self-explanatory and hence do not call
for the year ended March, 31, 2023, the applicable
for any further comments under Section 134 of the
accounting standards have been followed along
Companies Act, 2013 and Companies (Accounts)
with proper explanation relating to material
Rules, 2014.
departures, if any;
The Auditors have not reported any instance of fraud
b. that the Directors had selected such accounting
on or by the Company under Section 143(12) of the
policies and applied them consistently and made
Companies Act, 2013.
judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the The Auditors Report is enclosed with the financial
state of affairs of the Company as on 31st March statements in this Annual Report.
2023 and of the profit of the Company for that
period; Explanation to Auditors’ Comment
c. that the Directors had taken proper and sufficient The Auditors’ Qualification has been appropriately
care for the maintenance of adequate accounting dealt with in Note No. 37 of the Notes to the standalone
records in accordance with the provisions of and consolidated audited financial statements.
the Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud Cost Auditors
and other irregularities; Your Company has re-appointed M/s Devarajan
Swaminathan and Co, Cost Accountants (Firm
d. that the Directors had prepared the annual
Registration Number 100669) to conduct audit of its
accounts on a going concern basis;
cost records for the year 31st March, 2024.
e. that the Directors had devised proper systems
The Cost Audit Report for the year 2021-22 was filed
to ensure compliance with the provisions of all
before the due date with the Ministry of Corporate
applicable laws and that such systems were
Affairs.
adequate and operating efficiently.
The Company has maintained the cost accounts and
Board Meetings records in accordance with Section 148 of the Act
The Board of Directors met 4 times during the and rules made thereunder.
financial year 2022-23 on the following dates: 02nd
May 2022, 1st August 2022, 21st October 2022 and 2nd Secretarial Audit
February 2023. Pursuant to the provisions of Section 204 of the Act
and the Companies (Appointment and Remuneration
Independent Directors’ Meeting of Managerial Personnel) Rules, 2014, the Company
The Independent Directors met on 2nd February has appointed M/s. Ashita Kaul & Associates, Company
2023, without the attendance of Non-Independent Secretaries in Practice to undertake the Secretarial
Directors and members of the Management. The Audit of the Company. There is no qualification,
Independent Directors reviewed the performance of reservation or adverse remark made by the Secretarial
non-independent directors and the Board as a whole; Auditor in the Secretarial Audit Report. The Audit
the performance of the Chairperson of the Company, Report of the Secretarial Auditor is attached hereto
as Annexure B.
 ADANI ELECTRICITY MUMBAI LIMITED
118 ANNUAL REPORT 2022-23

Fixed Deposits stipulated under Section 134(3)(m) of the Companies

During the year under review, the Company has not Act, 2013 read with Rule 8 of The Companies
accepted deposits within the meaning of Section 73 (Accounts) Rules, 2014, as amended from time to
of the Act and the Rules made thereunder. time is annexed to this Report as Annexure-D.

Particulars of loans, guarantees and Vigil Mechanism

investments In accordance with Section 177 of the Act the
Company has formulated a Vigil Mechanism to
The provisions of Section 186 of the Act, with
address the genuine concern, if any of the directors
respect to a loan, guarantee, investment or security
and employees and uploaded the same on website
is not applicable to the Company, as the Company is
of the Company at https://www.adanielectricity.com/
engaged in providing infrastructural facilities which
Investor-Relations.
is exempted under Section 186 of the Act. The
particulars of loans, guarantee and investments made
during the year under review are disclosed in the
Board Evaluation
financial statements. The Board adopted a formal mechanism for evaluating
its performance and as well as that of its Committees
Related Party Transactions and individual Directors, including the Chairman of
the Board. The exercise was carried out through an
There have been no materially significant related
evaluation process covering various aspects of the
party transactions between the Company and the
Board functioning such as composition of the Board
Directors, the management, or the relatives except
and Committees, experience and competencies,
for those disclosed in the financial statements. All
performance of specific duties and obligations,
the related party transaction entered into during the
contribution at the meetings and otherwise,
financial year were on an arm’s length basis and were
independent judgment, governance issues etc.
in the ordinary course of business.
Accordingly, particulars of contracts or arrangements Prevention of Sexual Harassment at
with related parties referred to in Section 188(1) along Workplace
with the justification for entering into such contract
The Company has zero tolerance towards sexual
or arrangement in Form AOC-2 does not form part of
harassment at the workplace and has adopted a policy
the report.
on prevention, prohibition and redressal of sexual
harassment at workplace in line with the provisions
Insurance of the Sexual Harassment of Women at Workplace
The Company has taken appropriate insurance for its (Prevention, Prohibition and Redressal) Act, 2013 and
all assets against foreseeable perils. the Rules thereunder.
As per the requirement of the Sexual Harassment
Particulars of Employees
of Women at Workplace (Prevention, Prohibition &
Statement pursuant to Section 197 of the Companies
Redressal) Act, 2013 and rules made thereunder,
Act, 2013 read with Rule 5(2) of the Companies
your Company has constituted Internal Complaints
(Appointment and Remuneration of Managerial
Committee (ICC) which is responsible for redressal
Personnel) Rules, 2014 forming part of the Directors’
of complaints related to sexual harassment. During
Report for the year ended 31st March 2023 is annexed
the year under review, there were no complaints
to this Report as Annexure C.
pertaining to sexual harassment.

Conservation of Energy, Technology Corporate Social Responsibility

Absorption and Foreign Exchange Earnings
The Company has constituted a Corporate Social
and Outgo Responsibility (CSR) Committee and has framed a
The information on conservation of energy, technology CSR Policy. The Annual Report on CSR activities is
absorption and foreign exchange earnings and outgo annexed to this Report as Annexure-E.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 119

The CSR Policy is uploaded on website of the Secretarial Standards

Company at https://www.adanielectricity.com/ The Company has complied with the applicable
Investor-Relations. Secretarial Standards.

Internal Financial Controls and their Acknowledgement

adequacy
Your Directors are highly appreciative and grateful
The Company has in place adequate internal financial for all the guidance, support and assistance received
controls. During the year under review, such controls from the Government, Financial Institutions and
were tested and no reportable material weaknesses in Banks. Your Directors thank esteemed customers,
the design or operation were observed. suppliers and business associates for their faith, trust
and confidence reposed in the Company.
Risk Management Policy
Your Directors also wish to place on record their
The Company has formulated and implemented Risk
sincere appreciation for the dedicated efforts and
Management Policy including identification therein
consistent contribution made by the employees at all
of the elements of risks, which in the opinion of the
levels, to ensure that the Company continues to grow
Board may threaten the existence of the Company.
and excel.

Significant and Material Orders passed by

the regulators or courts or tribunals For and on behalf of the Board of Directors
No orders have been passed by the regulators or
courts or tribunals impacting the going concern Anil Sardana
status and the Company’s operations during the year Place: Ahmedabad Chairman
under review. Dated: 26th May 2023 (DIN: 00006867)

Addendum to Report of the Board of of the Company. The Company has received a consent
Directors of 15th Annual General Meeting letter from M/s Walker Chandiok & Co LLP, Chartered
Accountants (Firm Registration No. 001076N/
The purpose of this corrective addendum is to modify
N500013) to the effect that they are eligible for
some sections of the report of the Board of Directors
appointment, as auditors of the Company under
and this addendum is fully integrated in the Report
Section 139 of the Act and meet the criteria for
of the Board and should be read together with the
appointment specified under Section 141 of the Act,
subsequent report which was adopted on 26th May
and they are not disqualified from being appointed
2023. This addendum has been adopted by the
under the Act or Chartered Accountants Act 1949
Board of Directors on 29th June 2023 with certain
and the rules and regulations made thereunder.
modifications in the report as given under:
It is proposed to appoint M/s Walker Chandiok & Co
Auditors LLP, Chartered Accountants (Firm Registration No.
M/s Deloitte Haskins & Sells LLP, Chartered 001076N/N500013) as Statutory Auditors from the
Accountants (Firm Registration No. 117366W/W- conclusion of ensuing 15th Annual General Meeting
100018) Statutory Auditors of the Company holds the until the conclusion of 20th Annual General Meeting
office until the conclusion of ensuing Annual General of the Company on a remuneration to be determined
Meeting of the Company. by the Board.

The Board of Directors of the Company has

recommended the appointment of Walker Chandiok
& Co LLP, Chartered Accountants (Firm Registration For and on behalf of the Board of Directors
No. 001076N/N500013) as the Statutory Auditors
of the Company for a term of 5 years from the Anil Sardana
conclusion of ensuing 15th Annual General Meeting Place: Ahmedabad Chairman
until the conclusion of 20th Annual General Meeting Dated: 29th June 2023 (DIN: 00006867)
 ADANI ELECTRICITY MUMBAI LIMITED
120 ANNUAL REPORT 2022-23

Annexure-A
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies
(Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries
or associate companies or joint ventures

Part A Subsidiaries Part A Subsidiaries

(Information in respect of each subsidiary to be (Information in respect of each subsidiary to be
presented with amounts in H) presented with amounts in H)
1. Sl. No. 1 1. Sl. No. 1
2. Name of the subsidiary : AEML SEEPZ Limited 2. Name of the subsidiary: Adani Electricity Mumbai
Infra Limited
3. The date since when subsidiary was acquired :
8th December, 2020 3. The date since when subsidiary was acquired :
3rd January, 2020
4. Reporting period for the subsidiary concerned, if
different from the holding company’s reporting 4. Reporting period for the subsidiary concerned, if
period. 1st April 2022 to 31st March 2023 different from the holding company’s reporting
period. 1st April 2022 to 31st March 2023
5. Reporting currency and Exchange rate as on the
last date of the relevant Financial year in the case 5. Reporting currency and Exchange rate as on the
of foreign subsidiaries. Not applicable last date of the relevant Financial year in the case
of foreign subsidiaries. Not applicable
6. Share capital: H1,00,000
6. Share capital: H1,00,000
7. Reserves and surplus: H(37.72) Lakhs
7. Reserves and surplus (H in Lakhs):
8. Total assets: H19.22 Lakhs
H38,204 lakhs
9. Total Liabilities: H55.94 Lakhs
8. Total assets (H in Lakhs): H65,480.97 lakhs
10. Investments: - NIL
9. Total Liabilities (H in Lakhs): H27,275.97 lakhs
11. Turnover: - NIL
10. Investments: - NIL
12. Profit before taxation: H(37.28) Lakhs
11. Turnover: - NIL
13. Provision for taxation: Not Applicable
12. Profit before taxation (H in Lakhs):
14. Profit after taxation: H(37.28 Lakhs) H(0.30) Lakhs
15. Proposed Dividend: Not Applicable 13. Provision for taxation: - NIL
16. Extent of shareholding (in percentage): 100% 14. Profit after taxation (H in Lakhs): H(0.30) Lakhs
15. Proposed Dividend: Not Applicable
16. Extent of shareholding (in percentage): 100%
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 121

Annexure-B
Form No. MR-3
Secretarial Audit Report
For the year ended March 31, 2023
[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 09 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To
The Members,
ADANI ELECTRICITY MUMBAI LIMITED
Adani Corporate House, Shantigram, Near Vaishno Devi Circle,
S. G. Highway, Khodiyar Ahmedabad 382421, Gujrat, India

We have conducted the secretarial audit of the 4. Foreign Exchange Management Act, 1999 and
compliance of applicable statutory provisions and the rules and regulations made thereunder to the
the adherence to good corporate practices by Adani extent of Foreign Direct Investment, Overseas
Electricity Mumbai Limited (hereinafter called Direct Investment and External Commercial
“the company”). Secretarial Audit was conducted Borrowings- Not applicable;
in a manner that provided us a reasonable basis
5. The following Regulations and Guidelines
for evaluating the corporate conducts/ statutory
prescribed under the Securities and Exchange
compliances and expressing our opinion thereon.
Board of India Act, 1992 (‘SEBI Act’)- Not
Based on our verification of Adani Electricity Mumbai applicable;
Limited’s books, papers, minute books, forms and
(a) The Securities and Exchange Board of India
returns filed and other records maintained by the
(Substantial Acquisition of Shares a n d
company and also the information provided by
Takeovers) Regulations, 2011;
the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, (b) The Securities and Exchange Board of India
we hereby report that in our opinion, the company (Prohibition of Insider Trading) Regulations,
has, during the audit period covering the year ended 1992;
March 31,2023 complied with the statutory provisions
(c) The Securities and Exchange Board of
listed hereunder and also that the Company has
India (Issue of Capital and Disclosure
proper Board–processes and compliance-mechanism
Requirements) Regulations, 2009;
in place to the extent, in the manner and subject to
the reporting made hereinafter: (d) The Securities and Exchange Board of
India (Employee Stock Option Scheme
We have examined the books, papers, minute books,
and Employee Stock Purchase Scheme)
forms and returns filed and other records maintained
Guidelines, 1999;
by the Company for the year ended March 31, 2023
according to the provisions of:- (e) The Securities and Exchange Board of
India (Issue and Listing of Debt Securities)
1. The Companies Act, 2013 (the Act) and the rules
Regulations, 2008;
made thereunder;
(f) The Securities and Exchange Board of India
2. The Securities Contracts (Regulation) Act, 1956
(Registrars to an Issue and Share Transfer
(‘SCRA’) and the rules made thereunder- Not
Agents) Regulations, 1993 regarding the
applicable;
Companies Act and dealing with the client;
3. The Depositories Act, 1996 and the Regulations
(g) The Securities and Exchange Board of India
and Bye-laws framed thereunder;
(Delisting of Equity Shares) Regulation,
2009; and
 ADANI ELECTRICITY MUMBAI LIMITED
122 ANNUAL REPORT 2022-23

(h) The Securities and Exchange Board of India We further report that, there are adequate systems
(Buyback of Securities) Regulations, 1998; and processes in the company commensurate with
the size and operations of the company to monitor
6. Other laws specifically applicable to the
and ensure compliances with applicable laws, rules,
company:-
regulations and guidelines.
(a) The Electricity Act, 2003 and the rules &
We further report that, during the audit period no
regulations made thereunder;
special Resolution were passed.
The adequate systems and processes are in place to
We further report that, during the audit period Circular
monitor and ensure compliance with general laws like
Resolutions were passed on 15.06.2022 for approval
labour laws, environmental laws etc. to the extent of
of Audited Special Purpose combined Financial
their applicability to the Company.
Statements of “The Obligor Group”, comprising of the
We have also examined compliance with the Company and PDSL for the year ended 31st March,
applicable clauses of the Secretarial Standards issued 2022.
by the Institute of Company Secretaries of India.
We further report that, during the audit period
During the period under review the Company has Circular Resolutions were passed on 09.07.2022 to
complied with the provisions of the Act, Rules, consider various aspects of Adani Dahanu Thermal
Regulations, Guidelines, Standards, etc. mentioned Power Station (ADTPS) in AEML portfolio.
above.
We further report that, during the audit period Circular
We further report that, the Board of Directors of the Resolutions were passed on 12.12.2022 for approval
Company is duly constituted with proper balance of Audited Special Purpose combined Condensed
of Non-Executive Directors, Executive Directors Interim Financial Information of “The Obligor Group”,
and Independent Directors. The changes in the comprising of the Company and Power Distribution
composition of the Board of Directors that took place Services Limited (‘PDSL) for the six months ended
during the period under review were carried out in 30th September, 2022.
compliance with the provision of the Act.
Adequate notice is given to all directors to schedule
the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance,
and system exists for seeking and obtaining further
information and clarifications on the agenda items For Ashita Kaul& Associates
before the meeting and for meaningful participation Company Secretaries
at the meeting. Date: 26.05.2023
All decisions at Board Meetings are carried out Place: Thane Proprietor
unanimously as recorded in the minutes of the UDIN: F006988E000457341 FCS 6988/ CP 6529
meetings of Board of Directors.

Note: This report is to be read with our letter of even date which is annexed as ‘Annexure A’ and forms an
integral part of this report.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 123

Annexure A

To,
ADANI ELECTRICITY MUMBAI LIMITED
Adani Corporate House, Shantigram, Near Vaishno Devi Circle,
S. G. Highway, Khodiyar Ahmedabad 382421, Gujrat, India

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. My responsibility
is to express an opinion on these secretarial records based on our audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the secretarial record. The verification was done on test basis to
ensure that the correct facts are reflected in secretarial records. I believe that the practices and processes,
I followed provide a reasonable basis for our opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the
company.
4. Where ever required, I obtained management representation about the compliance of laws, rules, regulations,
norms and standards and happening of events.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, norms and
standards is the responsibility of management. Our examination was limited to the verification of procedure
on test basis.
6. The secretarial audit report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.

For Ashita Kaul & Associates

Practicing Company Secretaries
Proprietor
Place: Thane
Date: 26.05.2023 FCS 6988/CP 6529
UDIN: F006988E000457341 Peer Review: 1718/2022
 ADANI ELECTRICITY MUMBAI LIMITED
124 ANNUAL REPORT 2022-23

Annexure–D
Disclosure under Section 134(3)(m) of the Companies Act, 2013,
read with Rule 8 of the Companies (Accounts) Rules, 2014 regarding
Conservation of Energy and Technology Absorption

A. Conservation of Energy ƒ Under large scale DSM program, AEML continued

to offer it’s residential customers, with approved
Adani Dahanu Thermal Power Station quantity pf 50,000 super-efficient (Brush Less
a. Energy Conservation measures taken at Power Direct Current) BLDC ceiling fans i.e. Bureau of
Stations and Offices: Energy Efficiency (B.E.E.) certified 5 Star rated
Following initiatives taken in ADTPS FY 22-23 ceiling fan. In this financial year the Company
has distributed 203 new BLDC technology,
i. Improvement in HP Heater Performance by
26-30 watts ceiling fans resulting in annual
attending of parting plate leakage.
savings of 0.2 million units (MUs). Till date total
ii. Reduction in Energy Consumption due to replacements are 1,846 fans resulting in savings
attending of Flue gas duct leakage. of 0.6 million units (MUs).

b. Impact of measures outlined at (a) above on ƒ On similar lines, AEML has another initiative
Energy Consumption: “large scale DSM program” of replacement
i. Heat rate improvement by 5.77 Kcal/KWh of 20,000 inefficient refrigerator of AEML
due to HP Heater Performance by attending residential consumers. In this financial year,
parting plate leakage. Company has replaced 556 old refrigerators by
5-Star refrigerators, which resulted in saving of
ii. Reduction in Energy Consumption by 253 KW 0.9 million Units. Till date total replacements
due to attending of Flue gas duct leakage. are 2,898 refrigerators resulting in savings of 3.3
million units (MUs)
c. The capital investment on energy conservation
equipment: ƒ The Company through Urja Samvardhan Upakaram
Nil programme, continued to conduct workshops
in various academic institutions, offices, banks,
Distribution Business hospitals, industrial estates, housing societies,
a. Energy Conservation measures undertaken: slum areas, etc. This year company reached out
The Company conducts energy conservation and to around 290+ people through on site/ on-line/
energy efficiency (EC and EE) programs to create digital/telephonic platform and educated them on
awareness in the society on the importance of ‘Why to conserve and how to conserve energy?’.
energy conservation and smart usage of energy
b. Impact of measures outlined at (a) above on
in order to reduce damage to environment due to
Energy Consumption:
Green House Gas (GHG) emission. The ultimate
Energy savings estimated due above initiatives
goal is to make every citizen on the AEML’s
taken during this financial year are 1.0 million
licensed area, a part of this initiative and develop
units amounting to approximately 900 tonnes of
citizen’s movement. Various initiatives were
CO2 reduction.
undertaken during financial year 2022-23 in all
verticals of AEML. c. The capital investment on energy conservation
The Company continued to pursue walkthrough equipment:
energy audit services at no cost to consumers In FY 2022-23, approx. H1.6 lakhs subsidy is granted
not only to identify energy saving potential but by the Company for residential consumers under
also to enhance energy efficiency awareness. 5 star BLDC ceiling fan program and H14 lakhs
Under this initiative, company has covered over subsidy for 5 star Refrigerator program.
36 consumers and identified potential saving of
around 1.1 million units (MUs) to these consumers.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 125

B. Technology Absorption v. The installation of the access control system

for Plant Control Room & Grid control room
Adani Dahanu Thermal Power Station has resulted in the following benefits such as
a. The Efforts made towards technology absorption Increased Security, Better control over access,
i. Adoption of Artificial Intelligence (AI) based Improved safety, and Increased productivity.
Video Analytics Software for strengthening
vi. The new IP-based CCTV cameras are
plant safety systems thereby improving safety
strategically placed throughout the plant to
compliance.
monitor critical assets & also provide real-
ii. The IoT kit has been developed in-house for time visibility of potential safety hazards.
remote operation of stack analyzer moisture This has helped to prevent unauthorized
drain solenoid valve. access, prevent accidents & improve the
overall safety & security of the plant & its
iii. Installation of Safe Load Indicator (SLI) in old
employees. Centralized monitoring through
generation cranes and forklifts to enhance
CCTV cameras has ensured safe operation
safety during lifting operations. to enhance
of critical equipment by taking advanced
safety during lifting operations.
preventive measures to avoid any major
iv. Upgradation of R.C. Feeder control panels to failures.
microprocessor-based feeders.
Distribution Business
v. The installation of access control system for
Adani Electricity Mumbai Limited envisions satisfied
Plant Control Room & Grid control room.
consumers with the highest quality of service and
vi. Installation of IP based CCTV monitoring an uninterrupted power supply. We believe in the
system for Plant O&M area centralized motto - The Power of Service. It is born of the will to
monitoring of critical assets. make a difference and change things for the better,
so that everyone can power their dreams and live a
b. Benefits derived. stress-free life. Adani Electricity continues the quest
i. Adopting Artificial Intelligence (AI) based of providing the best quality service to the customers
video analytics software for PPE violations entrusted with the brand motto of the Power of
is a smart move towards strengthening plant Service. The company is committed to creating new
safety systems because it offers several & innovative approaches in operations and services
benefits including: Improved compliance, that contribute to the development of the customers.
Real-time monitoring, cost effective, and
Improvement of safety of working crew The new technologies adopted during FY22-23,
creating a healthy work environment for resulted in several benefits as described briefly
employees. hereunder:

ii. IoT based operation enables to operate the Arc Flash Analysis –
drain valve of analyzer sampling system. ƒ Safety of people and installation
Periodic purging of sampling line avoids
choking of line going to the analyzer, which ƒ Arc Flash Boundaries simulated for typical DSS
use to affect performance and availability of ƒ Safety PPE defined based on estimated severity
online SOx/ NOx analyzer. of arc at various distances from the switchgear
iii. Safe Load Indicator (SLI) helps operators to
Theft Proof Pillar with SDF
ascertain safe boom length, angle, and safe
load to be lifted for enhancement in safety ƒ Restricted access prevents possibility of theft.
during crane and forklift operations. ƒ Insulated busbars restricts unauthorized cable
iv. Upgrading raw coal feeders to microprocessor- connections.
based feeders has enhanced the overall ƒ Fuse-strip replaced with SDF for enhanced
reliability & availability along with the protection
following benefits: Improved accuracy, Better
ƒ This will facilitate easy replacement of faulty parts
Monitoring & Control, Ease of Calibration, and
Improved environment performance.
 ADANI ELECTRICITY MUMBAI LIMITED
126 ANNUAL REPORT 2022-23

Compact Fire extinguishing stix for LT Pillar/ Cable Diagnostics

Panels ƒ Cable Diagnostic and testing guidelines
ƒ Zero Maintenance Compact Fire Extinguishing implementation in line with IEEE 400.2 and IEEE
stick through aerosol particles 400.3 guides. DC testing abolished for MV cables.
This has mitigated the risk of accelerated aging
ƒ Activation temperature : >170degC
of XLPE cables due to electrical tress formation.
ƒ Spray time: 6 seconds
ƒ Cable fault pre-location through latest TDR,
ƒ Ideally suitable for easy and quick installation in ARM, ARM Plus, Impulse Current, Bridge methods
LT Pillars/Panels resulting in less time for cable fault location.
ƒ Quick fire extinguishing prevents the spread of ƒ Diagnostic Technologies like Tan delta and Partial
fire and safety risks discharge measurements deployed for MV Cables
to support predictive analysis and reduce the
Twin Ester Oil DTs cable faults through priority Capex planning.
ƒ Two Hermetically sealed Ester Oil Filled DT
ƒ Evaluation and benchmarking of advanced
Horizontally placed back to back
diagnostic technologies like online PD monitoring
ƒ 50% Redundancy in case of Failure of any one DT of DSS and CSS assets to establish use cases and
ƒ 16% less footprint vis a vis conventional design benchmarking for future deployment.

ƒ Interchangeability hence fast to restore ƒ Reduction in LV Panel failure cases by design

and implementation of special connectors. This
ƒ Fire safe design suitable for slum projects. resulted in reduction in panel fire cases.

Customised LV Metering Solutions ƒ User enabling through creation of outsourced

ƒ Compact space saving with enhanced safety services with minimal inhouse intervention to
save on R&M cost.
ƒ Tailor-made as per customer requirements and
site constraints. ƒ Online PD monitoring of GIS switches using UHF
sensors & Online PD monitoring of DSS/CSS assets
ƒ Provides added advantage during customer using Ultrasound portable PD meter respectively
retention and acquisition. to support predictive maintenance.
Remote Cable Cutter ƒ Advanced diagnostic of thermal anomalies
ƒ Hydraulic remote cable cutting tool can be through Thermo-sensitive stickers resulting in
operated from a distance predictive analysis and identification of hot spots
resulting in prevention of asset failures.
ƒ Added safety to the operating personnel
New initiatives in instruments and tools
Busbar Trunking System for Highrise LV
ƒ Deployment of Cable identification kit for safe
Distribution
work environment and less time in cable fault
ƒ Lower Voltage Drop repair.
ƒ Better Reliability and safety ƒ Deployment of Thermovision Cameras with IoT
ƒ Compact Design features for ease of use.

ƒ Compliance to regulatory guidelines Transmission Business

HDPE Outer Jacketed HT Cable a. The efforts made towards technology absorption:
i. Cyber Security Initiatives for OT System.
ƒ HDPE Outer Jacket instead of PVC for HT Cables
a. Third party assessment of current
ƒ Improved protection against external damages Cybersecurity posture for OT
ƒ Enhanced Reliability and Safety Infrastructure.
b. Updating of Patches from Centralized
EV Chargers
Patch Management System resulting into
ƒ Around 100 nos. of 7.2kW EV Chargers installed
enhancement of cyber security posture
in societies.
of transmission SCADA system.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 127

c. Cyber Crisis Management Plan b. Benefits derived:

(CCMP)- Approved by Indian Computer i. Cyber security Controls for SCADA will
Emergency Response Team (CERT-IN) & enhance the security posture of SCADA
Critical Information Infrastructure (CII)- system against any cyber incidents.
Approved by National Critical Information
ii. Integrated Project Management Solution
Infrastructure Protection Centre (NCIIPC).
provides complete visibility of the project.
ii. Integrated Project Management System It helps to identify the risks and prepare
(IPMS) an integrated project management mitigation plan to take appropriate measures
solutions deployed for end to end to ensure timely completion of projects.
management of project activities integrating
enterprise systems like SAP, Budgeting,
Engineering, Project activities.

In case of imported technology (imported during the last three years reckoned from the beginning of the
financial year):

Sr No Technology imported Year of import Status

I. 220/33kV, Transformers, 33kV feeders Auto-restoration scheme 2022-23 Absorbed
for quick supply restoration extended from 40% to 86% of
transformers at AEML system.
II. Distributed Acoustic Sensing (DAS) system for cable system 2024-25 Process
proposed for HVDC cable scheme between Aarey-Kudus. Initiated.
III. Online Sheath Monitoring System for Cable Sheath Current 2024-25 Process
Monitoring for continuous monitoring of cable healthiness. Initiated.
IV. Green Transformer filled with Synthetic Ester Oil for Environmental 2023-24 Process Initiated
sustainability and fire safety.
V. Digital Sub-Station: Fiber based protection and tele-protection 2023-24 Process Initiated
system for reducing the huge quantities of control cables.
VI. Integrated Project Management System (IPMS) for better project 2023-24 Process Initiated
management.
VII. GIBD from Transformer HV Bushing to 220kV GIS for space saving 2023-24 Process Initiated
in sub-statio.n
VIII. RCC building instead of prefabricated steel structure for GIS 2023-24 Process Initiated
building.
IX. Energy Management System for LT system 2023-24 Process Initiated
X. Building material complying to sustainability requirements like 2023-24 Process Initiated
green building.

Expenditure incurred on R&D: NIL

C. Foreign Exchange Earnings and Outgo

Total foreign exchange earnings and outgo for the financial year are as follows:
i. Total foreign exchange earnings : NIL
ii. Total foreign exchange outgo : H802,72,34,070
 ADANI ELECTRICITY MUMBAI LIMITED
128 ANNUAL REPORT 2022-23

Annexure E
Annual Report on Corporate Social Responsibilities (CSR)
Activities As Per Section 135 of the Companies Act, 2013

1. Brief outline on CSR Policy of the Company.

The Company has framed Corporate Social Responsibility (CSR) Policy which encompasses its philosophy
and guides its sustained efforts for undertaking and supporting socially useful programs for the welfare &
sustainable development of the society.
The CSR Policy has been uploaded on the website of the Company at https://www.adanielectricity.com/
Investor-Relations.

2. The composition of the CSR Committee

Sr. Name of Director Designation/ Number of meetings Number of meetings of
No Nature of of CSR Committee CSR Committee attended
Directorship held during the year during the year
1 Mr. Kandarp Patel Chairman 2 2
2 Mr. Sagar Adani Member 2 1
3 Mr. K Jairaj Member 2 2
4 Mr. Quinton Choi1 Member 2 2

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects
approved by the board are disclosed on the website of the Company
https://www.adanielectricity.com/Investor-Relations

4. Provide the executive summary along with web-links of Impact assessment of CSR
projects carried out in pursuance of Sub-rule (3) of Rule 8 of the Companies (Corporate
Social responsibility Policy) Rules, 2014, if applicable.
Not Applicable

5. Average net profit of the company as per section 135(5): H380.46 Crore
6. (a) Two percent of average net profit of the company as per section 135(5): H7.61 Crore
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: NIL
(c) Amount required to be set off for the financial year, if any: H0.04 Crore
(d) Total CSR obligation for the financial year (6a+6b-6c): H7.57 Crore
7. (a) CSR amount spent or unspent for the financial year:
(H In Crores)
Total Amount Spent for Total Amount transferred to Amount transferred to any fund specified
the Financial Year. Unspent CSR Account as per under Schedule VII as per second proviso to
section 135 (6). section 135 (5).
Amount. Date of Name of the Amount. Date of
transfer. Fund transfer.
7.65 Nil N.A. N.A. N.A. N.A.
(b) Details of CSR amount spent against ongoing projects for the financial year:
(H In Crores)
Sl. Name of the Item from Local Location of the Project Amount Amount Amount Mode of Mode of Implementation-
No Project the list of area project. duration. allocated spent transferred to Implementation Through Implementing
activities in (Yes/ for the in the Unspent CSR - Direct (Yes/ Agency
Schedule No). State. District. project current Account for No). Name CSR
VII to the financial the project as Registration
Act Year per Section number.
135(6)
1. Promotion of health Promotion Yes Maharashtra Mumbai 3 years 7.42 7.42 NA No Adani Adani
care, including of health Foundation Foundation
preventive health care,
care and sanitation, including (No.
and disaster preventive CSR00000265)
management health
including donation care and
towards providing sanitation,
software support
to Tata Memorial
Hospital, Mumbai

(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(H In Crores)
Sl. Name of the Item from the list of activities in Local Location of the project. Amount Mode of Mode of Implementation -
No Project Schedule VII to the Act area spent for Implementation - Through Implementing Agency
(Yes/No). State. District. the project Direct (Yes/No). Name CSR Registration
(in H). number.
1 Donation to Promoting education, including Yes Maharashtra Mumbai 0.05 Yes -- --
charitable special education and employment
trust enhancing vocation skills especially
among children, women, elderly and
the differently abled and livelihood
enhancement projects
2 Swabhimaan Promoting gender equality, Yes Maharashtra Mumbai 0.18 Yes
project for empowering women, setting up
women homes and hostels for women and
empowerment orphans; setting up old age homes,
day care centres and such other
facilities for senior citizens and
measures for reducing inequalities
FINANCIAL STATEMENTS
STATUTORY REPORTS
CORPORATE OVERVIEW

faced by socially and economically

backward groups
129
 ADANI ELECTRICITY MUMBAI LIMITED
130 ANNUAL REPORT 2022-23

(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: NIL
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): D7.65 Crore
(g) Excess amount for set off, if any: 0.08

Sr. Particular Amount (H in Crore)

No
(i) Two percent of average net profit of the company as per section 135 (5) H7.61 Crore
(ii) Total amount spent for the Financial Year 7.65
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.04
(iv) Surplus arising out of the CSR projects or programmes or activities of the 0.04
previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.08
8. (a) Details of Unspent CSR amount for the preceding three financial years: 8. (a) Details of Unspent CSR
amount for the preceding three financial years:
(H In Crores)
Sr. Preceding Amount Amount Amount transferred to any fund Amount remaining
No Financial transferred spent in the specified under Schedule VII as to be spent in
Year to Unspent reporting per section 135 (6), if any. succeeding financial
CSR Account Financial years. (in H)
under section Year Name of Amount Date of
135 (6) the Fund (in H) transfer.
1 NIL NIL NIL -- -- -- Nil

9. Whether any capital asset have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
Yes √ No
If yes, enter the number of capital assets created/ acquired:
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:

Sr. Short particulars of the property Pin code Date of Amount Details of entity/
No or asset(s) [including complete of the creation of CSR Authority/ beneficiary of the
address and location of the property or amount registered owner
property] asset (s) spent
(1) (2) (3) (4) (5) (6)
-- -- -- -- -- CSR Name Registered
Registration address
Number, if
applicable
-- -- -- -- -- -- -- --

10. Specify the reason(s), if the company has failed to spend two per cent of the average
net profit as per section 135(5) - N.A.

SD/- SD/-
Kandarp Patel K Jairaj
Managing Director & CEO Director
(DIN 02947643) (DIN 01875126)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 131

Management discussion and analysis

Global economy Regional growth (%) 2022 2021

Overview: World output 3.2 6.1
The global economic growth was estimated at a Advanced economies 2.5 5
slower 3.2% in 2022, compared to 6% in 2021 (which Emerging and developing 3.8 6.3
was on a smaller base of 2020 on account of the economies
pandemic effect). The relatively slow global growth
of 2022 was marked by the Russian invasion of Performance of major economies
Ukraine, unprecedented inflation, pandemic-induced United States: Reported GDP growth of 2.1%
slowdown in China, higher interest rates, global compared to 5.9% in 2021
liquidity squeeze and quantitative tightening by the
China: GDP growth was 3% in 2022 compared to 8.1%
US Federal Reserve.
in 2021
The challenges of 2022 translated into moderated
United Kingdom: GDP grew by 4.1% in 2022 compared
spending, disrupted trade and increased energy
to 7.6% in 2021
costs. Global inflation was 8.7% in 2022, among the
highest in decades. US consumer prices increased Japan: GDP grew 1.7% in 2022 compared to 1.6%
about 6.5% in 2022, the highest in four decades. The in 2021
Federal Reserve raised its benchmark interest rate Germany: GDP grew 1.8% compared to 2.6% in 2021
to its highest in 15 years. The result is that the world
ended in 2022 concerned that the following year (Source: PWC report, EY report, IMF data, OECD data)
would be slower. Outlook:
The global equities, bonds, and crypto assets reported The global economy is expected to grow 2.8% in
an aggregated value drawdown of USD26 trillion from 2023, influenced by the ongoing Russia-Ukraine
peak, equivalent to 26% of the global gross domestic conflict. Concurrently, global inflation is projected to
product (GDP). In 2022, there was a concurrently fall marginally to 7%. Despite these challenges, there
unique decline in bond and equity markets; 2022 are positive elements within the global economic
was the only year when the S&P 500 and 10-year US landscape. The largest economies like China, the US,
treasuries delivered negative returns of more than the European Union, India, Japan, the UK, and South
10%. Korea are not in a recession. Approximately 70% of
the global economy demonstrates resilience, with no
Gross FDI inflows – equity, reinvested earnings and
major financial distress observed in large emerging
other capital – declined 8.4% to $55.3 billion in April-
economies. The energy shock in Europe did not
December. The decline was even sharper in the case
result in a recession, and significant developments,
of FDI inflows as equity: these fell 15% to $36.75
including China’s progressive departure from its strict
billion between April and December 2022. Global
zero-Covid policy and the resolution of the European
trade expanded by 2.7% in 2022 (expected to slow to
energy crisis, fostered optimism for an improved
1.7% in 2023).
global trade performance. Despite high inflation, the
The S&P GSCI TR (Global benchmark for commodity US economy demonstrated robust consumer demand
performance) fell from a peak of 4,319.55 in June in 2022. Driven by these positive factors, global
2022 to 3495.76 in December 2022. There was a inflation is likely to be still relatively high at 4.9% in
decline in crude oil, natural gas, coal, lithium, lumber, 2024. Interestingly, even as the global economy is
cobalt, nickel and urea realizations. Brent crude oil projected to grow less than 3% for the next five years,
dropped from a peak of around USD 120 per barrel India and China are projected to account for half the
in June 2022 to USD 80 per barrel at the end of the global growth (Source: IMF).
calendar year following the enhanced availability of
low-cost Russian oil.
 ADANI ELECTRICITY MUMBAI LIMITED
132 ANNUAL REPORT 2022-23

Indian economy up 6% to $447 billion in FY23. India’s total exports

(merchandise and services) in FY23 grew 14 percent
Overview: to a record of $775 billion in FY23 and is expected
Even as the global conflict remained geographically to touch $900 billion in FY24. Till Q3 FY23, India’s
distant from India, ripples comprised increased oil current account deficit, a crucial indicator of the
import bills, inflation, cautious government and a country’s balance of payments position, decreased
sluggish equity market. India’s economic growth to $18.2 billion, or 2.2% of GDP. India’s fiscal deficit
grew by 7.2% in FY 2022-23. India emerged as the was estimated in nominal terms at ~ H17.55 lakh crore
second fastest-growing G20 economy in FY 2022- and 6.4% of GDP for the year ending March 31, 2023.
23. India overtook UK to become the fifth-largest (Source: Ministry of Trade & Commerce)
global economy. India surpassed China to become
the world’s most populous nation (Source: IMF, World India’s headline foreign direct investment (FDI)
Bank) numbers rose from US$74.01 billion in 2021 to a
record $84.8 billion in 2021-22, a 14% Y-o-Y increase,
Growth of the Indian economy: till Q3FY23. India recorded a robust $36.75 billion
of FDI. In 2022-23, the government was estimated
FY 20 FY 21 FY 22 FY 23
to have addressed 77% of its disinvestment target
Real GDP growth(%) 3.7 -6.6% 8.7 7.2
(H50,000 crore against a target of H65,000 crore).
Growth of the Indian economy quarter by India’s foreign exchange reserves, which had
quarter, FY 2022-23: witnessed three consecutive years of growth,
experienced a decline of approximately $70 billion
Q1FY 23 Q2FY 23 Q3FY 23 Q4FY 23 in 2022, primarily influenced by rising inflation and
Real GDP 13.1 6.3 4.4 6.1 interest rates. Starting from $606.47 billion on April 1,
growth (%) 2022, reserves decreased to $578.44 billion by March
(Source: Budget FY24; Economy Projections, RBI projections) 31, 2023. The Indian currency also weakened during
this period, with the exchange rate weakening from
According to the India Meteorological Department, H75.91 to a US dollar to H82.34 by March 31, 2023,
the year 2022 delivered 8% higher rainfall over the driven by a stronger dollar and increasing current
long-period average. Due to unseasonal rains, India’s account deficit. Despite these factors, India continued
wheat harvest was expected to fall to around 102 to attract investable capital.
million metric tons (MMT) in 2022-23 from 107 MMT
in the preceding year. Rice production at 132 million The country’s retail inflation, measured by the
metric tons (MMT) was almost at par with the previous consumer price index (CPI), eased to 5.66% in March
year. Pulses acreage grew to 31 million hectares from 2023. Inflation data on the Wholesale Price Index,
28 million hectares. Due to a renewed focus, oilseeds WPI (calculates the overall price of goods before
area increased 7.31% from 102.36 lakh hectares in retail) eased to 1.3% during the period. In 2022, CPI hit
2021-22 to 109.84 lakh hectares in 2022-23. its highest of 7.79% in April; WPI reached its highest
of 15.88% in May 2022. By the close of the year under
India’s auto industry grew 21% in FY 23; passenger review, inflation had begun trending down and in April
vehicle (UVs, cars and vans) retail sales touched a 2023 declined below 5%, its lowest in months.
record 3.9 million units in FY 23, crossing 3.2 million
units in FY19. The commercial vehicles segment grew India’s total industrial output for FY23, as measured
33%. Two-wheeler sales fell to a seven-year low; the by the Index of Industrial Production or IIP, grew 5.1%
three-wheeler category grew 84%. year-on-year as against a growth of 11.4 percent in
2021-22.
Till the end of Q3FY23, total gross non-performing
assets (NPAs) of the banking system fell to 4.5% from India moved up in the Ease of Doing Business (EoDB)
6.5% a year ago. Gross NPA for FY23 was expected rankings from 100th in 2017 to 63rd in 2022. As of March
to be 4.2% and a further drop is predicted to 3.8% in 2023, India’s unemployment rate was 7.8 percent.
FY2023-24. In 2022-23, total receipts (other than borrowings) were
As India’s domestic demand remained steady amidst estimated at 6.5% higher than the Budget estimates.
a global slowdown, import growth in FY23 was Tax-GDP ratio was estimated to have improved by 11.1
estimated at 16.5% to $714 billion as against $613 percent Y-o-Y in RE 2022-23.
billion in FY22. India’s merchandise exports were
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 133

The total gross collection for FY23 was H18.10 lakh in renewable energy and other sectors and emerging
crore, an average of H1.51 lakh a month and up 22% as a suitable industrial supplement to China. India is
from FY22, India’s monthly goods and services tax poised to outpace Germany and Japan and emerge as
(GST) collections hit the second highest ever in March the third-largest economy by the end of the decade.
2023 to H1.6 lakh crore. For 2022–23, the government The outlook for private business investment remains
collected H16.61 lakh crore in direct taxes, according positive despite an increase in interest rates. India is
to data from the Finance Ministry. This amount was less exposed to Chinese economic weakness, with
17.6 percent more than what was collected in the much less direct trade with China than many Asian
previous fiscal. peers.

Per capita income almost doubled in nine years to Broad-based credit growth, improving capacity
H172,000 during the year under review, a rise of 15.8 utilization, government’s thrust on capital spending
percent over the previous year. India’s GDP per capita and infrastructure should bolster investment activity.
was 2,320 USD (March 2023), close to the magic figure According to our surveys, manufacturing, services and
of $2500 when consumption spikes across countries. infrastructure sector firms are optimistic about the
Despite headline inflation, private consumption in business outlook. The downside risks are protracted
India witnessed continued momentum and was geopolitical tensions, tightening global financial
estimated to have grown 7.3 percent in 2022-23. conditions, and slowing external demand.

Outlook: Union Budget FY 2023-24 provisions

There are green shoots of economic revival, marked The Budget 2023-24 sought to lay the foundation
by an increase in rural growth during the last quarter for the future of the Indian economy by raising
and appreciable decline in consumer price index capital investment outlay by 33% to H10 lakh crores,
inflation to less than 5 percent in April 2023. India is equivalent to 3.3% of GDP and almost three times
expected to grow around 6-6.5 percent (as per various the 2019-20 outlay, through various projects like
sources) in FY2024, catalyzed in no small measure by PM Gatishakti, Inclusive Development, Productivity
the government’s 35% capital expenditure growth Enhancement & Investment, Sunrise Opportunities,
by the government. The growth could also be driven Energy Transition and Climate Action, as well as
by broad-based credit expansion, better capacity Financing of Investments. An outlay of H5.94 lakh
utilization and improving trade deficit. Headline crore was made to the Ministry of Defence (13.18% of
and core inflation could trend down. Private sector the total Budget outlay). An announcement of nearly
investments could revive. What provides optimism is H20,000 crores was made for the PM Gati Shakti
that even as the global structural shifts are creating National Master Plan to catalyze the infrastructure
a wider berth for India’s exports, the country is sector. An outlay of H1.97 lakh crore was announced
making its largest infrastructure investment. This for Production Linked Incentive schemes across 13
unprecedented investment is expected to translate sectors. The Indian government intends to accelerate
into a robust building block that, going ahead, road construction in FY24 by 16-21% to 12,000-12,500
moderates logistics costs, facilitates a quicker km. The overall road construction project pipeline
transfer of products and empowers the country to remains robust at 55,000 km across various execution
become increasingly competitive. This can benefit stages. These realities indicate that a structural shift
India’s exports in general, benefiting several sectors. is underway that could strengthen India’s positioning
The construction of national highways in 2022-23 as a long-term provider of manufactured products
was 10,993 kilometers; the Ministry of Road Transport and its emergence as a credible global supplier of
and Highways awarded highway contracts of 12,375 goods and services
km in the last financial year (Source: IMF).
The global landscape favours India: Europe is moving Indian power sector review
towards a probable recession, the US economy is At present, India is third largest producer and
slowing, China’s GDP growth forecast of 4.4% is less consumer of electricity in the world with an installed
than India’s GDP estimate of 6.8% and America and generation capacity of more than 411.64 MW as
Europe are experiencing its highest inflation in 40 on 31st March, 2023. India possesses among the
years. most diversified power sectors in the world and the
country’s electricity policy is focused on offering
India’s production-linked incentive appears to
universal access to reliable and affordable power,
catalyze the downstream sectors. Inflation is steady.
India is at the cusp of making significant investments
 ADANI ELECTRICITY MUMBAI LIMITED
134 ANNUAL REPORT 2022-23

enhancing the share of renewable energy aligned by 2030, compared to the current peak demand
with international commitments. of 205.03 GW as of 2022. Growing power demand
highlights the requirement for continued investment
Over the past few years, the government has made
and innovation in the power sector to ensure that
significant efforts to turn the country from one with
sufficient and reliable power is available to fuel India’s
a power shortage to one with a surplus by developing
economic and social development.
a single national grid, strengthening the distribution
network and achieving universal household
electrification. India enjoys a significant potential to
India’s installed power capacity
achieve economic progress and growth in electricity Year Installed capacity MW
consumption compared to other key economic 2010 1,59,398
powers. Over the last decade, India’s installed power 2011 1,73,626
capacity grew substantially at a compounded annual 2012 1,99,877
growth rate of 8.1%. Despite the growth, India faces 2013 2,23,344
challenges in ensuring universal access to electricity
2014 2,43,029
particularly in rural areas. The private sector in India’s
2015 1,59,398
power industry generates 49% of the country’s thermal
2016 2,98,060
power, whereas States and the Centre generate
25% and 26% respectively. On the installed capacity 2017 3,26,849
generation basis, fossil fuel-based generation forms 2018 3,44,002
58% and non-fossil fuel based generation forms 42%. 2019 3,56,100
India’s national grid is synchronously interconnected 2020 3,70,048
to Bhutan and imports excess electricity to Bhutan. 2021 3,82,151
India is estimated to reach an annual electricity 2022 3,99,496
demand of 1,874 billion units by the end of FY 2027. 2023 4,11,649
India’s overall power demand is expected to grow (Source: CEA, Power Ministry)
significantly in the coming years driven by factors
such as improved standards of living, enhanced Indian power transmission sector review
penetration of electrical and electronic appliances in India’s transmission system is highly reliant on
rural areas, the government’s focus on boosting the thermal power plants based on fossil fuels such as
manufacturing sector’s contribution to GDP growth coal, natural gas and diesel, accounting for 80% of
and increased use of electric pump sets for irrigation the country’s power generation. However, many of
in the agricultural sector. the plants are old and inefficient, resulting in reduced
Indian power plants utilize an increased amount of output and increased maintenance costs. India
coal as compared to imported coal due to low calorific enjoys a robust power transmission grid capacity
value and increase ash content. India’s Ministry of to transmit power from one state to another state
Forest and Environment has mandated the use of through electricity grids. As on February, 2023, the
coals whose ash content has been reduced to 34% country’s transmission line length and alternating
in power plants in urban ecologically sensitive and circuit substation capacity stood at 4,54,540 circuit
other critically polluted areas. India is reducing the kilometer and 1,061gross value added. During the
power generation from coal to control the emission five-year period 2017-18 to 2021-22, the transmission
of greenhouse gases. As of January 31, 2023, India’s line length and capacity grew at a CAGR of 4 percent
installed renewable energy capacity (including hydro) and 7 percent respectively.
stood at 168.4 GW, representing 40.9% of the overall According to the Central Electricity Authority’s report,
installed power capacity. Solar energy is estimated to transmission line length and substation capacity
contribute 63.3 GW followed by 41.9 GW from wind addition of 50,890 circuit kilometer and 433,575
power, 10.2 GW from biomass, 4.92 GW from small market value added respectively will be required for
hydropower, 0.52 from waste to energy and 46.85 GW the integration of additional wind and solar capacity
from hydropower. The country witnessed a growth by 2030. This would require an estimated investment
of 10.08% y-o-y in FY 2022-23 in terms of electricity of H2.4 trillion along with the additional interregional
generation from renewable energy. According to transmission corridors under implemen¬tation. The
the Central Electricity Authority (CEA), the peak cumulative interregional transmission capacity is
electricity demand in India is estimated at 340 GW expected to be 150,000 MW by 2030.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 135

The government is planning to provide transmission renewable energy, advanced technological and digital
systems for upcoming renewable energy projects. solutions are being adopted to maintain a stable
The transmission system is being set up in potential grid and make them more agile. Centralized remote
renewable energy zones (such as the Leh renewable monitoring, digital substations, static synchronous
energy park in Ladakh; Fatehgarh, Bhadla and Bikaner compensators and flexible alternating current
in Rajasthan; the Khavda renewable energy park in transmission system devices are being adopted in
Gujarat; the Anantapur, Kurnool renewable energy addition to digital solutions such as internet, artificial
zones in Andhra Pradesh and offshore wind farms in intelligence and machine learning to improve grid
Tamil Nadu and Gujarat) to prevent any curtailment reliability and take the advantage of new capabilities
of power from the upcoming projects on account of to support grid operations. There is growing interest
transmission constraints. in the deployment of battery energy storage systems
at the transmission level to provide firm power supply
Moreover, as transmission utilities gear up for handling
and ancillary support. (Source: power line.net.in)
bidirectional flows, larger volumes of intermittent

India’s transmission line capacity addition

Year FY 2018- 19 FY 2019- 20 FY 2020- 21 FY 2021- 22 FY 2022- 23
Cumulative capacity 4,13,407 4,25,071 4,41,821 4,52,440 4,63,758
(in circuit kilometers)
*Up to December 2022 (Source: powermin.gov)

Indian power distribution sector review aimed at improving the operations and financial
India’s power distribution sector comprises power health of discoms. The schemes have had limited
distribution companies responsible for the supply and success to create a turnaround of the discoms.
distribution of energy to the consumers (industry,
commercial, agriculture, domestic e.t.c) Power sector analysis of Maharashtra
Maharashtra’s installed power generation capacity
The outstanding dues of power distribution companies
stood at 37,348 MW as on March 31, 2022 out
(discoms) to power generating companies have
of which the share of the private sector stood at
reduced H1,38,378 crore to H91,061 crore in March
59.9% and that of the public sector stood at 34.8%
2023. Aggregate technical and commercial losses of
and public-private partnership (PPP) (Ratnagiri Gas
power distribution utilities declined to 17 per cent in
Project Limited) stood at 5.3%.
2021-22 from 22 per cent in 2020-21. The losses are
mainly due to poorly maintained and overburdened According to the Economic Survey report,
distribution networks, inadequate metering and theft Maharashtra has the highest share in installed
of electricity. Power distribution companies collect capacity (10.9%) of electricity generation in India. The
payments from consumers against their energy share of renewable energy in the installed capacity
cash supplies to provide necessary cash flows to of private sector stood at 46% with an increase in
the generation and transmission sectors to operate. installed capacity by 7% during the year under review.
Discoms are unable to make timely payments for their The State’s total electricity generation stood at 1, 31,
energy purchases from the generators on account of 682 million units during 2021-22. During 2022-23,
the perennial cash collection shortfall due to payment Mahagenco (the state power generator) has accorded
delays from consumers. This gap is met by borrowings, an approval for the installation and commissioning
government subsidies and reduced expenditure, of projects for capacity addition at various thermal
increasing the discoms cost of borrowing, which is power stations. Maharashtra is among the developed
inevitably borne by the consumer. This undermines and populated states and the demand for energy is
the ability of the discoms to purchase and distribute enhancing due to industrialization, urbanization,
power to fulfill their Universal Supply Obligation as digitalization and electrification of the transport
per the Electricity Act, 2003. The industrial segment sector. Electricity generations through renewable
brings the highest revenue for the discoms followed sources are promoted for sustainable development.
by agriculture and domestic sectors. Since India’s Maharashtra’s renewable energy share (11%) is lower
independence, the central and state governments than most other states. Moreover, it has utilized just
have launched a number of schemes and initiatives 7% of its renewable energy potential and about 19%
 ADANI ELECTRICITY MUMBAI LIMITED
136 ANNUAL REPORT 2022-23

of its operational coal fleet (~4.7GW) which is older DeenDayal Upadhyaya Gram Jyoti Yojana (DDUGJY):
than 25 years, a major source of carbon emission. The Deen Dayal Upadhyaya Gram Jyoti Yojana
According to CEA, per capita power consumption (DDUGJY) is a flagship program of the Ministry of
in Maharashtra is 1588 KWh which is considerably Power and a key initiative of the Government of
higher compared to the all-India level of 1255 KWh in India aimed at providing uninterrupted power supply
2021-22. Moreover, Maharashtra has 6 per cent share to rural India, including village electrification. The
in India’s total non-utility electricity consumption scheme is designed to benefit rural households by
(captive power plants). With growing demand for providing access to electricity, which is essential for
power from domestic and industrial sector, the State the growth and development of the country.
is expected to register increased power supply, with
Integrated Power Development Scheme (IPDS): The
two options under the net-zero scenarios: either
scheme intends to strengthen sub-transmission
to import power or to generate electricity through
and distribution networks, improve metering of
renewable sources.
distribution transformers, feeders and consumers,
The State is expected to invest H750 billion in the field enable Enterprise Resource Planning (ERP) and IT
of green hydrogen, green ammonia, solar and wind infrastructure in urban towns and implement real-
energy to prioritise achieving the net-zero targets. time data acquisition system projects. As of November
Maharashtra also plans to raise H50 billion by 2024 2021, projects worth H30,904 crore were sanctioned
through green bonds. The budget estimate for the under IPDS, and a grant of H16,478 has been released.
State’s new and renewable energy stood at H9.77 Additionally, distribution system reinforcement
billion for 2023-24, an increase over last year’s revised projects have been completed in 524 circles.
budget estimate of H4.96 billion. The government
Pradhan Mantri Sahaj Bijli Har Ghar Yojana: The
has signed a memorandum of understanding worth
Pradhan Mantri Sahaj Bijli Har Ghar Yojana is a
H300 billion in solar, hydro and wind energy sectors.
government project in India that aims to provide
Moreover, solar power projects are expected to be
electricity to all households. The project has a total
implemented in 20,000-gram panchayats in the state.
outlay of H16,320 crore with a Gross Budgetary
Support (GBS) of H12,320 crore. The scheme
Government initiatives includes the provision of five LED lights, one air-
Revamped Distribution Sector Scheme (RDSS): The conditioned fan, and one air-conditioned power plug
Cabinet Committee on Economic Affairs approved to each beneficiary household, along with Repair and
The Revamped Distribution Sector Scheme with an Maintenance (R&M) for five years. The government
allocation of H3,03,758 crore and a gross budgetary has also launched a website, saubhagya.gov.in, to
support of H97,631 crore from the Indian government disseminate information about the scheme.
from FY 2021-22 to FY 2025-26. This reforms-based
and results-linked scheme intends to moderate the Sectorial demand drivers
Aggregate Technical and Commercial (AT&C) by 12-
Population: India surpassed China as the world’s most
15% across India and eliminate the gap between
populous country by 2023. Besides, India’s population
Average Cost of Supply (ACS) and Average Revenue
is expected to reach 1.52 billion by 2036, resulting in
Realized (ARR) by 2024-25.
the increased power requirement in the country.
Ujjwal Discom Assurance Yojna (UDAY): The UDAY
Urbanization: India’s urban population is expected
scheme was launched in November, 2015 to improve
to reach 600 million by 2030, accounting for 40%
the operational and financial efficiency of State
of the total population. The country’s urbanization is
Power Distribution Companies (DISCOMs) in India.
expected to drive power requirement in the coming
DISCOMs in the country are facing difficulties in
years.
reducing the gap between the average cost of supply
and realized revenue (ACS-ARR gap). Financial Renewable targets: India has a significant concern
recovery is expected for the DISCOMS through the for addressing climate change at a global level. Even
Ujjwal Discom Assurance Yojana (UDAY). though, the country’s greenhouse gas emissions are
relatively small compared to the rest of the world,
24x7 - Power for All: The initiative to provide 24x7
its contribution to the issue has been increasingly
power to all households, industries, commercial
significant. India targets to achieve 450 GW of
businesses, public needs and other electricity-
renewable energy capacity by 2030, reflecting the
consuming entities, as well as substantial power to
country’s commitment towards addressing climate
agricultural farm holdings is a joint initiative of the
change and reducing carbon footprint.
Government of India and state governments.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 137

Increasing inter-regional demand-supply gap: The (accounting for a 10% share of the Company’s
gap between demand and supply is enhancing in revenues from operations) increased by 10% from
various regions as load centers are located far away H799 crore in 2021-22 to H878 crore in 2022-23.
from conventional power generation centres.
Analysis of the Balance Sheet
Ancient infrastructure: The country aims to develop
and upgrade its power distribution infrastructure Sources of funds
to align itself with the ongoing trends and provide The capital employed by the Company increased
superior efficiency in power distribution. 4% to H18,365 crores as on 31 March, 2023 from
H16,739 crores as on 31 March, 2022 owing to increased
Increasing private sector investments: The Indian accruals. Return on capital employed, a measurement
power sector is undergoing a significant change of returns derived from every rupee invested in the
due to growing private sector investments which is business, increased 37 basis points from 8.55% in
estimated to be a little less than 50%. 2021-22 to 8.92% in 2022-23 on account of capex
(Source: The wire, IEA, Economic Times, Livemint, India incurred for asset hardening to ensure reliable and
Today) affordable power.
The net worth of the Company increased by 0.45%
Company overview from H4695 crore as on 31 March, 2022 to H4716 crore
Adani Electricity Mumbai Limited is a subsidiary as on 31 March, 2022 owing plough back of profits.
of Adani Transmission Ltd. which is involved in the The Company’s equity share capital comprised
business of power distribution. The Company was 4,020,823,535 equity shares of H10 each.
formed after the acquisition of Reliance Infrastructure
Limited’s integrated generation, transmission and Applications of funds
distribution utilities. The Company possesses among Fixed assets (net block) of the Company increased
the city’s most efficient power distribution network by 3% from H13,488 crore as on 31 March, 2022
fulfilling more than 2,000 MW of the country’s to H13,874 crore as on 31 March, 2023 owing to an
power demand. The Company offers a wide range increase in capex during the year. Depreciation on
of customer convenience services, including bill assets increased by 14% from H652 crore in 2021-22
issuance in different languages with wide range to H743 crore in 2022-23 owing to an increase in fixed
of bill payment options, a 24-hour multi-lingual toll assets during the year under review.
free number, modern customer support centres and
Investments
a range of additional technology-driven and value-
Non-current investments of the Company increased
added services. The Company’s distribution network
from H205 crore as on 31 March, 2022 to H234 crore as
encompasses more than 400 square kilometres,
on 31 March, 2023.
serving the power requirement of millions people. The
Company serves suburban Mumbai from Bandra to Working capital management
Bhainder on the western side and Sion to Mankhurd Current assets of the Company increased by 28%
on the eastern side. from H2191 crore as on 31 March, 2022 to H2795 crore
as on 31 March, 2023. The current and quick ratios
Financial review of the Company stood at 0.9 and 0.5, respectively
Analysis of the profit and loss statement at the close of 2022-23 compared to 0.8 and 0.4,
respectively at the close of 2021-22.
Revenues: Revenues from operations reported a
21% growth from H6909 crore in 2021-22 to reach Inventories including raw materials, work-in-progress
H8361 crore in 2022-23. Other income of the Company and finished goods among others reduced by 55%
reported a 19% decrease and accounted for a 4% share from H204 crore as on 31 March, 2022 to H93 crore
of the Company’s revenues, reflecting the Company’s as on 31 March, 2023. The inventory turnover ratio
dependence on its core business operations. improved from 7 in 2021-22 to 13 in 2022-23.
Expenses: Total expenses increased by 23% from Despite marginal growth in revenues, trade receivables
H7730 crore in 2021-22 to H9524 crore in 2022-23. declined by 7% from H486 crore as on 31 March, 2022
Cost of fuel and power purchase (accounting for a to H452 crore as on 31 March, 2023. Trade receivable
64% share of the Company’s revenue from operations) turnover ratio stood at 8.2 as on 31 March, 2023
increased by 29% from H4280 crore in 2021-22 as compared to 6.7 as on 31 March, 2022 owing to
to H5525 crore in 2022-23. Employees expenses declining debtors.
 ADANI ELECTRICITY MUMBAI LIMITED
138 ANNUAL REPORT 2022-23

Details of Significant Changes in the Key The Company’s internal audit system has been
Financial Ratios and Return on Net Worth continuously monitored and updated to ensure that
Pursuant to amendment made in Schedule V to the assets are safeguarded, established regulations are
Listing Regulations, details of significant changes complied with and pending issues are addressed
(i.e., change of 25% or more as compared to the promptly. The Company possesses a well-established
immediately previous financial year) in Key Financial system of multi-disciplinary Management Audit
Ratios and any changes in Return on Net Worth and Assurance Services (MA & AS) that comprises
of the Company (on standalone basis) including professionally qualified accountants, engineers and
explanations are included as per note no. 42 forming SAP experienced executives. The team undertook
part of the standalone financial statements of the extensive audit throughout the year across all
company. functional areas and submits its reports to the
Management and Audit Committee. The report
Human Resource Management comprises detailed information regarding the
compliance with internal controls and efficiency, along
The Company believes that the quality of the
with process effectiveness and risk management.
employees is the key to its success and is committed
to equip them with skills, enabling them to seamlessly The key elements of the Company’s internal control
evolve with ongoing technological advancements. system include:
During the year, the Company organized training
ƒ Substantial documentation of policies and
programmes in different areas such as technical
guidelines
skills, behavioral skills, business excellence, general
management, advanced management, leadership ƒ Planning and supervising annual budgets through
skills, customer orientation, safety, values and code of monthly review for all operating service functions
conduct. The Company’s employee strength stood at ƒ Charting out a risk-based internal audit scope by
4429 as on March 31, 2023. the MA & AS department.

Internal control systems and their adequacy The audit frequency is defined by risk ratings of areas/
functions. The risk-based scope is further discussed
Adani Electricity Mumbai Limited (AEML) had
between the MA & AS team, functional heads/process
effective internal control procedures in place that
owners/CEO and CFO. The audit plan is formally
were appropriate for its size and operations. The
reviewed and approved by the Audit Committee of
Board of Directors was responsible for the internal
the Board
control system and ensured that it was adequate,
effective, and applied properly. The Company’s internal
control system was designed to ensure management
Cautionary statement
efficiency, measurability, and verifiability, reliable This statement made in this section describes the
accounting and management information, Company’s objectives, projections, expectation
compliance with all applicable laws and regulations, and estimations which may be ‘forward-looking
and the protection of the Company’s assets. This was statements’ within the meaning of applicable
done to promptly identify and manage the risks faced securities laws and regulations.
by the Company, including operational, compliance
related, economic, and financial risks.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 139

Independent Auditor’s Report

To The Members of Adani Electricity Mumbai Limited

Report on the Audit of the Standalone audit. In the absence of an independent external
Financial Statements examination by the Company and pending completion
of investigation, including matters referred to in the
Report of the Expert Committee constituted by the
Qualified Opinion Hon’ble Supreme Court of India as described in Note
We have audited the accompanying standalone 37 to the standalone financial statements, by the
financial statements of Adani Electricity Mumbai Securities and Exchange Board of India, we are unable
Limited (“the Company”), which comprise the Balance to comment on whether these transactions or any
Sheet as at 31st March, 2023, and the Statement of other transactions may result in possible adjustments
Profit and Loss (including Other Comprehensive and/or disclosures in these financial statements in
Income), the Statement of Cash Flows and the respect of related parties, and whether the Company
Statement of Changes in Equity for the year then should have complied with the applicable laws and
ended, and a summary of significant accounting regulations.
policies and other explanatory information.
We conducted our audit of the standalone financial
In our opinion and to the best of our information and statements in accordance with the Standards on
according to the explanations given to us except for Auditing (SAs) specified under section 143(10) of
the possible effects of the matter described in the the Act. Our responsibilities under those Standards
Basis for Qualified Opinion section below, the aforesaid are further described in the Auditor’s Responsibility
standalone financial statements give the information for the Audit of the Standalone Financial Statements
required by the Companies Act, 2013 (“the Act”) in section of our report. We are independent of the
the manner so required and give a true and fair view Company in accordance with the Code of Ethics
in conformity with the Indian Accounting Standards issued by the Institute of Chartered Accountants of
prescribed under section 133 of the Act read with India (ICAI) together with the ethical requirements
the Companies (Indian Accounting Standards) Rules, that are relevant to our audit of the standalone
2015, as amended, (“Ind AS”) and other accounting financial statements under the provisions of the Act
principles generally accepted in India, of the state of and the Rules made thereunder and we have fulfilled
affairs of the Company as at 31st March, 2023, and its our other ethical responsibilities in accordance with
profit, total comprehensive income, its cash flows and these requirements and the ICAI’s Code of Ethics.
the changes in equity for the year ended on that date. Except for the matter described in the Basis for
Qualified Opinion section above, we believe that
Basis for Qualified Opinion the audit evidence obtained by us, is sufficient and
The Company had purchase transactions with certain appropriate to provide a basis for our qualified opinion
parties including those identified in the allegations on the standalone financial statements.
made in the Short Seller Report. The Company
has represented to us that there is no effect of the Information Other than the Financial
allegations made in the Short Seller Report on these Statements and Auditor’s Report Thereon
financial statements based on their evaluation and • The Company’s Board of Directors is responsible
after consideration of a memorandum prepared by an for the other information. The other information
external law firm on the responses to the allegations comprises the information included in the
in the Short Seller Report issued by the Adani Directors’ report, but does not include the
Group. The Company did not consider it necessary consolidated financial statements, standalone
to have an independent external examination of financial statements and our auditor’s report
these allegations because of their evaluation and thereon.
the ongoing investigation by the Securities and
Exchange Board of India as directed by the Hon’ble • Our opinion on the standalone financial
Supreme Court. The evaluation performed by the statements does not cover the other information
Company, as stated in Note 37 to the standalone and we do not express any form of assurance
financial statements, does not constitute sufficient conclusion thereon.
appropriate audit evidence for the purposes of our
 ADANI ELECTRICITY MUMBAI LIMITED
140 ANNUAL REPORT 2022-23

• In connection with our audit of the standalone In preparing the standalone financial statements,
financial statements, our responsibility is to read management is responsible for assessing the
the other information and, in doing so, consider Company’s ability to continue as a going concern,
whether the other information is materially disclosing, as applicable, matters related to going
inconsistent with the standalone financial concern and using the going concern basis of
statements or our knowledge obtained during accounting unless the Board of Directors either
the course of our audit or otherwise appears to intends to liquidate the Company or to cease
be materially misstated. operations, or has no realistic alternative but to do so.
• If, based on the work we have performed, we The Company’s Board of Directors are also responsible
conclude that there is a material misstatement for overseeing the Company’s financial reporting
of this other information, we are required to process.
report that fact. As described in the Basis for
Qualified Opinion section above, in the absence Auditor’s Responsibility for the Audit of the
of an independent external examination by Standalone Financial Statements
the Company and pending completion of
investigation, including matters referred to in the Our objectives are to obtain reasonable assurance
Report of the Expert Committee constituted by about whether the standalone financial statements
the Hon’ble Supreme Court of India as described as a whole are free from material misstatement,
in Note 37 to the standalone financial statements, whether due to fraud or error, and to issue an
by the Securities and Exchange Board of India, we auditor’s report that includes our opinion. Reasonable
are unable to comment on whether transaction assurance is a high level of assurance, but is not a
stated in Basis for Qualified Opinion section above, guarantee that an audit conducted in accordance
or any other transactions may result in possible with SAs will always detect a material misstatement
adjustments and/or disclosures in the financial when it exists. Misstatements can arise from fraud or
statements in respect of related parties, and error and are considered material if, individually or in
whether the Company should have complied with the aggregate, they could reasonably be expected to
the relevant laws and regulations. Accordingly, we influence the economic decisions of users taken on
are unable to conclude whether or not the other the basis of these standalone financial statements.
information is materially misstated with respect As part of an audit in accordance with SAs, we exercise
to this matter. professional judgment and maintain professional
skepticism throughout the audit. We also:
Responsibilities of Management and • Identify and assess the risks of material
Those Charged with Governance for the misstatement of the standalone financial
Standalone Financial Statements statements, whether due to fraud or error, design
The Company’s Board of Directors is responsible and perform audit procedures responsive to those
for the matters stated in section 134(5) of the Act risks, and obtain audit evidence that is sufficient
with respect to the preparation of these standalone and appropriate to provide a basis for our opinion.
financial statements that give a true and fair view of The risk of not detecting a material misstatement
the financial position, financial performance including resulting from fraud is higher than for one resulting
other comprehensive income, cash flows and changes from error, as fraud may involve collusion, forgery,
in equity of the Company in accordance with the Ind AS intentional omissions, misrepresentations, or the
and other accounting principles generally accepted in override of internal control.
India. This responsibility also includes maintenance of • Obtain an understanding of internal financial
adequate accounting records in accordance with the control relevant to the audit in order to design
provisions of the Act for safeguarding the assets of audit procedures that are appropriate in the
the Company and for preventing and detecting frauds circumstances. Under section 143(3)(i) of the Act,
and other irregularities; selection and application of we are also responsible for expressing our opinion
appropriate accounting policies; making judgments on whether the Company has adequate internal
and estimates that are reasonable and prudent; financial controls with reference to standalone
and design, implementation and maintenance of financial statements in place and the operating
adequate internal financial controls, that were effectiveness of such controls.
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant • Evaluate the appropriateness of accounting
to the preparation and presentation of the financial policies used and the reasonableness of
statement that give a true and fair view and are free accounting estimates and related disclosures
from material misstatement, whether due to fraud or made by the management.
error.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 141

• Conclude on the appropriateness of Report on Other Legal and Regulatory

management’s use of the going concern basis Requirements
of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists 1. As required by Section 143(3) of the Act, based on
related to events or conditions that may cast our audit we report, that:
significant doubt on the Company’s ability to a) We have sought and except for the matter
continue as a going concern. If we conclude that described in the Basis for Qualified Opinion
a material uncertainty exists, we are required section above, obtained all the information
to draw attention in our auditor’s report to the and explanations which to the best of our
related disclosures in the standalone financial knowledge and belief were necessary for the
statements or, if such disclosures are inadequate, purposes of our audit.
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of b) Except for the possible effects of the matter
our auditor’s report. However, future events or described in the Basis for Qualified Opinion
conditions may cause the Company to cease to section above, in our opinion, proper books
continue as a going concern. of account as required by law have been kept
by the Company so far as it appears from our
• Evaluate the overall presentation, structure and examination of those books.
content of the standalone financial statements,
including the disclosures, and whether the c) The Balance Sheet, the Statement of Profit
standalone financial statements represent the and Loss including Other Comprehensive
underlying transactions and events in a manner Income, the Statement of Cash Flows and
that achieves fair presentation. Statement of Changes in Equity dealt with
by this Report are in agreement with the
Materiality is the magnitude of misstatements in the relevant books of account.
standalone financial statements that, individually or
in aggregate, makes it probable that the economic d) Except for possible effects of the matter
decisions of a reasonably knowledgeable user of the described in the Basis for Qualified Opinion
standalone financial statements may be influenced. section above, in our opinion, the aforesaid
We consider quantitative materiality and qualitative standalone financial statements comply with
factors in (i) planning the scope of our audit work the Ind AS specified under Section 133 of the
and in evaluating the results of our work; and (ii) to Act.
evaluate the effect of any identified misstatements in e) On the basis of the written representations
the standalone financial statements. received from the directors as on 31st March,
We communicate with those charged with governance 2023 taken on record by the Board of
regarding, among other matters, the planned scope Directors, none of the directors is disqualified
and timing of the audit and significant audit findings, as on 31st March, 2023 from being appointed
including any significant deficiencies in internal as a director in terms of Section 164 (2) of the
control that we identify during our audit. Act.

We also provide those charged with governance with f) The qualification relating to the maintenance
a statement that we have complied with relevant of accounts and other matters connected
ethical requirements regarding independence, and to therewith, are as stated in the Basis for
communicate with them all relationships and other Qualified Opinion section and in paragraph
matters that may reasonably be thought to bear on (b) above.
our independence, and where applicable, related g) With respect to the adequacy of the internal
safeguards. financial controls with reference to standalone
financial statements of the Company and the
Other Matter operating effectiveness of such controls,
We are not statutory auditors of majority of the other refer to our separate Report in “Annexure A”.
Adani group companies and therefore the scope Our report expresses qualified opinion on the
of our audit does not extend to any transactions adequacy and operating effectiveness of the
or balances which may have occurred or been Company’s internal financial controls with
undertaken between these Adani group companies reference to standalone financial statements
and any supplier, customer or any other party which for the reasons stated therein.
has had a business relationship with the Company
h) With respect to the other matters to be
during the year.
included in the Auditor’s Report in accordance
Our opinion is not modified in respect of this matter. with the requirements of section 197(16) of
 ADANI ELECTRICITY MUMBAI LIMITED
142 ANNUAL REPORT 2022-23

the Act, as amended, in our opinion and to the indirectly, lend or invest in other
best of our information and according to the persons or entities identified in any
explanations given to us, the remuneration manner whatsoever by or on behalf
paid by the Company to its directors during of the Funding Party (“Ultimate
the year is in accordance with the provisions Beneficiaries”) or provide any
of section 197 of the Act. guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
i) With respect to the other matters to be
included in the Auditor’s Report in accordance (c) Based on the audit procedures
with Rule 11 of the Companies (Audit and performed that have been considered
Auditors) Rules, 2014, as amended in our reasonable and appropriate in the
opinion and to the best of our information circumstances, nothing has come
and according to the explanations given to to our notice that has caused us to
us: believe that the representations
under sub-clause (i) and (ii) of Rule
i. The Company has disclosed the impact of
11(e), as provided under (a) and
pending litigations on its financial position
(b) above, contain any material
in its standalone financial statements -
misstatement.
Refer Note 33 to the standalone financial
statements. v. The interim dividend declared by the
Company subsequent to the year end
ii. The Company has made provision, as
is in accordance with section 123 of
required under the applicable law or
the Companies Act 2013 to the extent
accounting standards, for material
it applies to declaration of dividend.
foreseeable losses, if any, on long-term
However, the said dividend was not due
contracts including derivative contracts.
for payment on the date of this audit
iii. There were no amounts which were report.
required to be transferred to the Investor
vi. Proviso to Rule 3(1) of the Companies
Education and Protection Fund by the
(Accounts) Rules, 2014 for maintaining
Company.
books of account using accounting
iv. (a) The Management has represented software which has a feature of recording
that, to the best of it’s knowledge and audit trail (edit log) facility is applicable
belief, no funds have been advanced to the Company w.e.f. 1 April 2023, and
or loaned or invested (either from accordingly, reporting under Rule 11(g)
borrowed funds or share premium or of Companies (Audit and Auditors) Rules,
any other sources or kind of funds) 2014 is not applicable for the financial
by the Company to or in any other year ended 31st March, 2023.
person(s) or entity(ies), including
2. As required by the Companies (Auditor’s Report)
foreign entities (“Intermediaries”),
Order, 2020 (“the Order”) issued by the Central
with the understanding, whether
Government in terms of Section 143(11) of the
recorded in writing or otherwise,
Act, we give in “Annexure B” a statement on the
that the Intermediary shall, directly
matters specified in paragraphs 3 and 4 of the
or indirectly lend or invest in other
Order.
persons or entities identified in
any manner whatsoever by or on
behalf of the Company (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries. For Deloitte Haskins & Sells LLP

(b) The Management has represented, Chartered Accountants

that, to the best of it’s knowledge (Firm’s Registration No. 117366W/W-100018)
and belief, no funds have been
received by the Company from any
person(s) or entity(ies), including Mohammed Bengali
foreign entities (“Funding Parties”),
(Partner)
with the understanding, whether
recorded in writing or otherwise, Place: Mumbai (Membership No. 105828)
that the Company shall, directly or Date: 26 May, 2023 (UDIN: 23105828BGWPIP5829)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 143

Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 1(g) under ‘Report on Other Legal and Regulatory Requirements’ section of our
report of even date)

Report on the Internal Financial Controls with ethical requirements and plan and perform the
with reference to standalone financial audit to obtain reasonable assurance about whether
adequate internal financial controls with reference to
statements under Clause (i) of Sub-section
standalone financial statements was established and
3 of Section 143 of the Companies Act, maintained and if such controls operated effectively
2013 (“the Act”) in all material respects.
We have audited the internal financial controls with Our audit involves performing procedures to
reference to standalone financial statements of obtain audit evidence about the adequacy of
Adani Electricity Mumbai Limited (“the Company”) as the internal financial controls with reference to
of 31st March, 2023, in conjunction with our audit of standalone financial statements and their operating
the standalone financial statements of the Company effectiveness. Our audit of internal financial controls
for the year ended on that date. with reference to standalone financial statements
included obtaining an understanding of internal
Management’s Responsibility for Internal financial controls with reference to standalone
Financial Controls financial statements, assessing the risk that a material
The Company’s management is responsible for weakness exists, and testing and evaluating the
establishing and maintaining internal financial design and operating effectiveness of internal control
controls with reference to standalone financial based on the assessed risk. The procedures selected
statements based on the internal control with depend on the auditor’s judgement, including the
reference to standalone financial statements assessment of the risks of material misstatement of
criteria established by the Company considering the the financial statements, whether due to fraud or
essential components of internal control stated in the error.
Guidance Note on Audit of Internal Financial Controls Except for the matter described in the Basis for
Over Financial Reporting issued by the Institute of Qualified Opinion section below, we believe that the
Chartered Accountants of India. These responsibilities audit evidence we have obtained is sufficient and
include the design, implementation and maintenance appropriate to provide a basis for our qualified audit
of adequate internal financial controls that were opinion on the Company’s internal financial controls
operating effectively for ensuring the orderly and with reference to standalone financial statements.
efficient conduct of its business, including adherence
to company’s policies, the safeguarding of its assets,
Meaning of Internal Financial Controls
the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting with reference to standalone financial
records, and the timely preparation of reliable financial statements
information, as required under the Companies Act, A company's internal financial control with
2013. reference to standalone financial statements is a
process designed to provide reasonable assurance
Auditor’s Responsibility regarding the reliability of financial reporting and
Our responsibility is to express an opinion on the preparation of financial statements for external
the internal financial controls with reference to purposes in accordance with generally accepted
standalone financial statements of the Company accounting principles. A company's internal financial
based on our audit. We conducted our audit in control with reference to standalone financial
accordance with the Guidance Note on Audit of statements includes those policies and procedures
Internal Financial Controls Over Financial Reporting that (1) pertain to the maintenance of records that,
(the “Guidance Note”) issued by the Institute of in reasonable detail, accurately and fairly reflect
Chartered Accountants of India and the Standards the transactions and dispositions of the assets of
on Auditing prescribed under Section 143(10) of the the company; (2) provide reasonable assurance that
Companies Act, 2013, to the extent applicable to an transactions are recorded as necessary to permit
audit of internal financial controls with reference to preparation of financial statements in accordance
standalone financial statements. Those Standards with generally accepted accounting principles, and
and the Guidance Note require that we comply that receipts and expenditures of the company are
 ADANI ELECTRICITY MUMBAI LIMITED
144 ANNUAL REPORT 2022-23

being made only in accordance with authorisations of Qualified Opinion

management and directors of the company; and (3) In our opinion, to the best of our information and
provide reasonable assurance regarding prevention or according to the explanations given to us, except
timely detection of unauthorised acquisition, use, or for the possible effects of the material weakness
disposition of the company's assets that could have a described in Basis for Qualified Opinion paragraph
material effect on the financial statements. above on the achievement of the objectives of the
control criteria, the Company has maintained, in
Inherent Limitations of Internal Financial all material respects, adequate internal financial
Controls with reference to standalone controls with reference to standalone financial
financial statements statements and such internal financial controls with
reference to standalone financial statements were
Because of the inherent limitations of internal financial
operating effectively as of 31st March, 2023, based
controls with reference to standalone financial
on the internal control with reference to standalone
statements, including the possibility of collusion or
financial statements criteria established by the
improper management override of controls, material
Company considering the essential components of
misstatements due to error or fraud may occur and
internal control stated in the Guidance Note.
not be detected. Also, projections of any evaluation
of the internal financial controls with reference to We have considered the material weakness identified
standalone financial statements to future periods are and reported above in determining the nature, timing,
subject to the risk that the internal financial control and extent of audit tests applied in our audit of the
with reference to standalone financial statements standalone financial statements of the Company
may become inadequate because of changes in for the year ended 31st March, 2023, and we have
conditions, or that the degree of compliance with the issued a qualified opinion on the standalone financial
policies or procedures may deteriorate. statements of the Company.

Basis for Qualified Opinion

According to the information and explanations given
to us and based on our audit, the following material
weakness has been identified as at 31st March, 2023:
The Company did not have an appropriate internal
control system in respect of conducting an external
examination of allegations made on the Company,
including on related party relationships, which
could potentially result in possible adjustments/
disclosures of related party relationships, balances For Deloitte Haskins & Sells LLP
and transactions in the financial statements and Chartered Accountants
compliance with applicable laws and regulations. (Firm’s Registration No. 117366W/W-100018)
A ‘material weakness’ is a deficiency, or a combination
of deficiencies, in internal financial control with
reference to standalone financial statements, such Mohammed Bengali
that there is a reasonable possibility that a material (Partner)
misstatement of the company's annual or interim
Place: Mumbai (Membership No. 105828)
financial statements will not be prevented or detected
on a timely basis. Date: 26 May, 2023 (UDIN: 23105828BGWPIP5829)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 145

Annexure “B” to the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report
to the Members of Adani Electricity Mumbai Limited of even date)

(i) In respect of the Company’s property, plant and (c) Based on the examination of the registered
equipment: sale deed/ transfer deed/ conveyance deed/
possession certificate/ Encumbrance
(a) (A) The Company has maintained proper
certificate provided to us, we report
records showing full particulars,
that, the title deeds of all the immovable
including quantitative details and
properties, (other than those that have
situation of property, plant and
been taken on lease and self-constructed
equipment, capital work-in progress
properties) disclosed in the financial
and relevant details of right-of-use
statements included in property, plant
assets.
equipment and capital work-in progress
(B) The Company has maintained proper are held in the name of the Company as at
records showing full particulars of the balance sheet date. The title deeds of
intangible assets. certain immovable properties which were
transferred from Reliance Infrastructure
(b) The Company has a program of physical
Limited consequent to a scheme of
verification of its property, plant and
arrangement are in the erstwhile names
equipment, capital work-in-progress and
of the Company viz: “Bombay Suburban
right-of-use assets so to cover all the
Electric Supply Limited” / “Reliance Energy
items in a phased manner over a period
Limited” / “Reliance Infrastructure Limited”
of three years which, in our opinion, is
and the Company is in process of updating
reasonable having regard to the size of
the same from erstwhile Company’s name
the Company and the nature of its assets.
to the name of the Company (Refer note
Pursuant to the program, certain assets
5 (ii) of Financial Statement). In respect
were due for verification during the
of immovable properties that have been
year and were physically verified by the
taken on lease and disclosed in the
Management during the year. According to
financial statements as property, plant
the information and explanations given to
and equipment, right-of use asset and
us, no material discrepancies were noticed
capital-work-in-progress as at the balance
on such verification. However, we are
sheet date, the lease agreements are duly
informed that distribution system being
executed in favour of the Company, except
underground is not physically verifiable.
for the following:

Description Gross Carrying Held Whether Period held Reason for not being
of immovable carrying value (as at in promoter, – indicate held in name of
properties taken value as at 31st March, name director range, Company
on lease 31st March, 2023 (H in of or their where
2023 (H in Crores) relative or appropriate
Crores) employee
Leasehold land at 0.65 0.62 NA NA NA Title deeds in respect of
various locations the same are currently
not traceable.

Right of use 510.00 500.68 NA No Since 18 The Company has entered

Leasehold land at September into memorandum of
BKC 2021 understanding and will
enter into formal lease
agreement on completion
of the construction of
the substation as per
the applicable regulatory
requirements (Refer
note 5(b)(iii) of Financial
Statement).
 ADANI ELECTRICITY MUMBAI LIMITED
146 ANNUAL REPORT 2022-23

(d) The Company has not revalued any of its (b) According to the information and
Property, Plant and Equipment (including explanations given to us, the Company
Right of Use assets) and intangible assets has been sanctioned working capital
during the year. limits in excess of H5 crores, in aggregate,
at points of time during the year, from
(e) According to the information and
banks on the basis of security of current
explanations given to us, no proceedings
assets. In our opinion and according to the
have been initiated or is pending against
information and explanations given to us,
the Company as at 31st March, 2023 for
the quarterly statements comprising raw
holding any benami property under the
material, stores and spares, finished goods,
Benami Transactions (Prohibition) Act,
advances for power purchase and coal,
1988 (as amended in 2016) and rules made
book debts (including unbilled revenue)
thereunder.
other receivable (<90 days) and regulatory
(ii) In respect of the Company’s Inventories: assets recoverable within 1 year reduced
by relevant trade payables (i.e. net of
(a) The inventories except for goods in transit
provisions, regulatory payables and other
and those lying with a third party, were
payables) filed by the Company with such
physically verified during the year by the
banks are in agreement with the unaudited
Management at reasonable intervals. In
books of account of the Company of
our opinion and based on information and
the respective quarters based on draft
explanations given to us, the coverage
figures at the point of time of reporting
and procedure of such verification by the
and no material discrepancies have been
Management is appropriate having regard
observed.
to the size of the Company and the nature
of its operations. No discrepancies of 10% (iii) The Company has not made any investments
or more in the aggregate for each class of in, provided any guarantee or security, and
inventories were noticed on such physical granted any loans or advances in the nature
verification of inventories when compared of loans, secured or unsecured, to companies,
with books of account. In respect of goods firms, Limited Liability Partnerships or any
in transit, the goods have been received other parties during the year, except for loans
subsequent to the year end. Confirmation to employees, advance in nature of loan to a
has been obtained in respect of inventories related party during the year and an unsecured
in custody of a third party. intercorporate deposit granted to a related
parties during the year.

(a) The details of said loans are given below:

Particulars Intercorporate Intercorporate Advances in nature employees

deposit in nature deposit in nature of loans to Adani
of loans to of loans to AEML Enterprises Limited
Adani Properties Seepz Limited (Related party)
Private Limited (Related party)
(Related party)
Aggregate amount H1,000 Crores H43.10 Crores H1,409.41 Crores* H5.86
extended / advanced Crores
during the year

Balance outstanding as H Nil H0.28 crores H Nil H32.51

at balance sheet date Crores
in respect of above

* Advances given during the year have been adjusted against power purchased from Adani Enterprises
Limited.

(b) The terms and conditions of the above- (c) In respect of above intercorporate
mentioned intercorporate deposit, deposit, employee loans and advance
employee loans and advance in the in the nature of loan provided by the
nature of loan, during the year are, in our Company, the schedule of repayment of
opinion, prima facie, not prejudicial to the principal and payment of interest has been
Company’s interest. stipulated. Repayment of principal of the
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 147

intercorporate deposit and the receipts (vi) The maintenance of cost records has been
of interest are regular as per stipulation. specified by the Central Government under
Repayment of principal and receipts of section 148(1) of the Act. We have broadly
interest were regular as per stipulation for reviewed the cost records maintained during
employee loans and advance in nature of the year by the Company pursuant to the
loan. Companies (Cost Records and Audit) Rules,
2014, as amended and prescribed by the Central
(d) According to information and explanations
Government under sub-section (1) of Section
given to us and based on the audit
148 of the Act, and are of the opinion that,
procedures performed, in respect of
prima facie, the prescribed cost records have
intercorporate deposit, employee loans and
been made and maintained by the Company. We
advance in the nature of loan provided by
have, however, not made a detailed examination
the Company, there is no overdue amount
of the cost records with a view to determine
remaining outstanding as at the balance
whether they are accurate or complete.
sheet date.
(vii) According to the information and explanations
(e) There were no loans or intercorporate
given to us, in respect of statutory dues:
deposit in nature of loan that fell due and
extended by modifying the terms during (a) Undisputed statutory dues, including
the year. Goods and Services tax, Provident Fund,
Employees’ State Insurance, Income-tax,
(f) According to information and explanations
duty of Custom, cess and other material
given to us and based on the audit
statutory dues applicable to the Company
procedures performed, the Company has
have been regularly deposited by it with
not granted any loans without specifying
the appropriate authorities in all cases
any terms or period of repayment during the
during the year. We have been informed
year. The intercorporate deposits in nature
that there have not been payables towards
of loan as stated above are for a period of
Sales Tax, Service Tax, duty of Excise, Value
3 years and are repayable on demand or on
Added Tax during the year.
maturity of 3 years whichever is earlier.
(b) There were no undisputed amounts
(iv) In our opinion and according to the information
payable in respect of Goods and Services
and explanations given to us, the Company has
tax, Provident Fund, Employees’ State
complied with the provisions of Sections 185
Insurance, Income-tax, duty of Custom
and 186 of the Act in respect of grant of loans,
and corresponding cess and other material
making investments and providing guarantees
statutory dues in arrears as at 31st March,
and securities, as applicable.
2023 for a period of more than six months
(v) The Company has not accepted any deposit from the date they became payable.
or amounts which are deemed to be deposits.
Hence, reporting under clause (v) of the Order is
not applicable.

(c) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on 31st
March, 2023 on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute Period to which Amount
is Pending amount relates
Finance Act, 1994 Service tax Central, Excise and October 2011 to 25.61*
Service Tax Appellate December 2016
Tribunal, Mumbai

Finance Act, 1994 Service tax Mumbai High Court July 2012 to June 2017 307.34

* Net of H20.60 crore paid/ adjusted under protest.

There were no dues of Goods and Services tax, Provident Fund, Employees’ State Insurance, Income-
tax, duty of Custom, cess and other material statutory dues applicable to the Company which have
not been deposited as on 31st March, 2023 on account of disputes.
 ADANI ELECTRICITY MUMBAI LIMITED
148 ANNUAL REPORT 2022-23

(viii) There were no transactions relating to previously by the Company and no material fraud on
unrecorded income that were surrendered or the Company has been noticed or reported
disclosed as income in the tax assessments during the year.
under the Income Tax Act, 1961 (43 of 1961)
(b) To the best of our knowledge, no report
during the year.
under sub-section (12) of section 143 of the
(ix) (a) In our opinion and according to the Companies Act has been filed in Form ADT-
information and explanations given to 4 as prescribed under rule 13 of Companies
us, the Company has not defaulted in the (Audit and Auditors) Rules, 2014 with the
repayment of loans or other borrowings or Central Government, during the year and
in the payment of interest thereon to any upto the date of this report.
lender during the year.
(c) As represented to us by the Management,
(b) The Company has not been declared there are no whistle blower complaints
wilful defaulter by any bank or financial received by the Company during the
institution or government or any year and upto the date of this report. We
government authority. have taken into consideration the Short
Seller Report referred to in our Basis of
(c) To the best of knowledge and belief, in our
Qualified Opinion section in our report on
opinion, term loans availed by the Company
the standalone financial statements while
were, applied by the Company during the
determining the nature, timing and extent
year for the purposes for which the loans
of audit procedures.
were obtained.
(xii) The Company is not a Nidhi Company. Therefore,
(d) On an overall examination of the financial
reporting under clause 3(xii) of the Order is not
statements of the Company, funds raised
applicable.
on short-term basis have, prima facie, not
been used during the year for long-term (xiii) In our opinion, except for the possible effects of
purposes by the Company. the matter described in the Basis for Qualified
Opinion section of our audit report on the
(e) On an overall examination of the financial
standalone financial statements, the Company
statements of the Company, the Company
is in compliance with Section 177 and 188 of the
has not taken any funds from any entity
Act, where applicable, for all transactions with
or person on account of or to meet
the related parties undertaken during the year
the obligations of its subsidiaries. The
and the details of such related party transactions
Company did not have any associate or
have been disclosed in the standalone financial
joint venture during the year.
statements as required by the applicable
(f) The Company has not raised loans during accounting standards.
the year on the pledge of securities held in
(xiv) (a) In our opinion the Company has an adequate
its subsidiaries.
internal audit system commensurate with
(x) (a) The Company has not raised moneys by the size and the nature of its business.
way of initial public offer or further public
(b) We have considered, the internal audit
offer (including debt instruments) during
reports issued to the Company during
the year and hence reporting under clause
the year and covering the period upto
(x)(a) of the Order is not applicable.
(December 2022) and the draft of the
(b) According to the information and internal audit reports were issued after
explanations given to us, during the year, the balance sheet date covering the period
the Company has not made any preferential (January 2023 to March 2023) for the
allotment or private placement of shares period under audit.
or convertible debentures (fully or partly
(xv) In our opinion and according to the information
or optionally) and hence, reporting under
and explanations given to us, during the year
paragraph (x)(b) of the Order is not
the Company has not entered any non-cash
applicable to the Company.
transactions with its Directors or persons
(xi) (a) To the best of our knowledge, except connected to its Directors and hence provisions
for the possible effects of the matter of section 192 of the Act are not applicable.
described in the Basis for Qualified
(xvi) (a) The Company is not required to be
Opinion section of our audit report on the
registered under section 45-IA of the
standalone financial statements, no fraud
Reserve Bank of India Act, 1934. Hence,
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 149

reporting under clause (xvi)(a), (b) and (c) facts up to the date of the audit report and we
of the Order is not applicable. neither give any guarantee nor any assurance
that all liabilities falling due within a period of
(b) The Group does not have any Core
one year from the balance sheet date, will get
Investment Company (CIC) as part of the
discharged by the Company as and when they
Group and accordingly clause (xvi)(d) of
fall due.
the Order is not applicable.
(xx) The Company has fully spent the required
(xvii) The Company has not incurred cash losses
amount towards Corporate Social Responsibility
during the financial year covered by our audit
(CSR) and there are no unspent CSR amount for
and the immediately preceding financial year.
the year requiring a transfer to a Fund specified
(xviii) There has been no resignation of the statutory in Schedule VII to the Companies Act or special
auditors of the Company during the year. account in compliance with the provision of
sub-section (6) of section 135 of the said Act.
(xix) On the basis of the financial ratios, ageing
Accordingly, reporting under clause (xx) of the
and expected dates of realization of financial
Order is not applicable for the year.
assets and payment of financial liabilities,
other information accompanying the financial
statements and our knowledge of the Board of
Directors and Management plans and based on
our examination of the evidence supporting the For Deloitte Haskins & Sells LLP
assumptions, nothing has come to our attention,
Chartered Accountants
which causes us to believe that any material
uncertainty exists as on the date of the audit (Firm’s Registration No. 117366W/W-100018)
report indicating that Company is not capable
of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a Mohammed Bengali
period of one year from the balance sheet date.
(Partner)
We, however, state that this is not an assurance
as to the future viability of the Company. We Place: Mumbai (Membership No. 105828)
further state that our reporting is based on the Date: 26 May, 2023 (UDIN: 23105828BGWPIP5829)
 ADANI ELECTRICITY MUMBAI LIMITED
150 ANNUAL REPORT 2022-23

Balance Sheet as at 31 st
March, 2023
(H in Crores)
Particulars Note As at As at
31 March, 2023
st
31 March, 2022
st

ASSETS
Non-current Assets
Property, Plant and Equipment 5 13,874.13 13,487.71
Capital Work-In-Progress 5c 654.43 315.48
Right-of-Use Assets 5a 570.93 592.79
Intangible Assets 5b 1,041.44 1,038.19
Financial Assets
(i) Investments 6a 233.63 204.64
(ii) Loans 7 25.92 1,068.40
(iii) Other Financial Assets 8 1,184.34 700.23
Income Tax Assets (net) 9a 2.93 3.91
Other Non-current Assets 10 58.17 71.90
Total Non-current Assets 17,645.92 17,483.25
Current Assets
Inventories 11 92.75 204.49
Financial Assets
(i) Investments 6b 767.66 24.84
(ii) Trade Receivables 12 452.27 485.85
(iii) Cash and Cash Equivalents 13 90.60 74.41
(iv) Bank Balances other than (iii) above 14 622.45 624.48
(v) Loans 7 6.87 7.01
(vi) Other Financial Assets 8 623.06 623.59
Other Current Assets 10 138.84 145.95
Total Current Assets 2,794.50 2,190.62
Total Assets before Regulatory Deferral Account 20,440.42 19,673.87
Regulatory Deferral Account - Assets 1,961.73 1,121.92
Total Assets 22,402.15 20,795.79
EQUITY AND LIABILITIES
Equity
Share Capital 15 4,020.82 4,020.82
Other Equity 16 695.24 673.99
Total Equity 4,716.06 4,694.81
Liabilities
Non-current Liabilities
Financial Liabilities
(i) Borrowings 17 12,888.62 11,864.65
(ii) Trade Payables 18
(A) total outstanding dues of micro enterprises and small enterprises; and - -
(B) total outstanding dues of creditors other than micro enterprises and 32.76 32.22
small enterprises.
(iii) Lease Liabilities 19 14.47 26.25
(iv) Other Financial Liabilities 20 3.71 66.02
Provisions 21 502.60 572.28
Deferred Tax Liabilities (Net) 29 260.61 179.35
Other Non Current Liabilities 22 265.64 245.47
Total Non-current Liabilities 13,968.41 12,986.24
Current Liabilities
Financial Liabilities
(i) Borrowings 23 500.00 -
(ii) Trade Payables 18
(A) Total outstanding dues of micro enterprises and small enterprises; and 42.87 25.07
(B) Total outstanding dues of creditors other than micro enterprises and 1,551.87 1,465.88
small enterprises.
(iii) Lease Liabilities 19 16.27 18.59
(iv) Other Financial Liabilities 20 1,208.72 976.01
Provisions 21 98.74 63.80
Current Tax Liabilities 9b - 2.13
Other Current Liabilities 22 299.21 291.70
Total Current Liabilities 3,717.68 2,843.18
Total Liabilities before Regulatory Deferral Account 17,686.09 15,829.42
Regulatory Deferral Account - Liabilities - 271.56
Total Equity and Liabilities 22,402.15 20,795.79

See accompanying notes forms part of the financial statements

As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad

Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 151

Statement of Profit and Loss for the year ended 31 st

March, 2023
(H in Crores)
Note For the year ended For the year ended
31st March, 2023 31st March, 2022
INCOME :
Revenue from Operations 24 8,360.96 6,908.94
Other Income 25 331.07 409.65
Total Income 8,692.03 7,318.59
EXPENSES :
Cost Of Power Purchased 3,658.69 2,736.41
Cost of Fuel 1,384.18 1,065.99
Transmission Charges 482.31 477.84
Purchases of traded goods 3.59 0.76
Employee Benefits Expense 26 878.00 798.68
Finance Costs 27 1,434.26 1,160.38
Depreciation and Amortisation Expenses 5,5a&5b 742.62 651.58
Other Expenses 28 940.32 838.30
Total Expenses 9,523.97 7,729.94
Profit/(Loss) Before Movement in Regulatory Deferral Balance, (831.94) (411.35)
Exceptional Items and Tax
Add/(Less): Net Movement in Regulatory Deferral Balance 1,035.58 682.47
Profit Before Exceptional Items and Tax 203.64 271.12
Exceptional items - -
Profit Before Tax 203.64 271.12
Tax Expense: 29
Current Tax 27.20 47.78
Deferred Tax 81.26 101.18
108.46 148.96
Profit after tax Total A 95.18 122.16
Other Comprehensive Income / (Expense)
(a) Items that will not be reclassified to profit or loss
- Remeasurement of Defined Benefit Plans 47.94 17.17
Movement in Regulatory Deferral Balance (47.94) -
(b) Tax related to items that will not be reclassified to profit or loss
- Current Tax (8.38) (3.00)
(c) Items that will be reclassified to profit or loss
- Effective portion of gains and losses on designated portion (65.55) (151.87)
of hedging instruments in a cash flow hedge
Other Comprehensive Expense Total B (73.93) (137.70)
Total Comprehensive Income Total (A+B) 21.25 (15.54)
EBITDA 2,380.52 2,100.25
EBITDA % 27.39% 28.70%
Earnings Per Share (EPS) (in H) 30
(Face Value H10 Per Share)
Basic / Diluted earnings per Equity Share before net Movement in (1.89) (1.10)
Regulatory Deferral Balance
Basic / Diluted earnings per Equity Share after net Movement in 0.24 0.30
Regulatory Deferral Balance
See accompanying notes forms part of the financial statements
As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018
sd/ sd/ sd/
Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary
Place : Mumbai Place: Ahmedabad
Date: 26th May, 2023 Date: 26th May, 2023
 ADANI ELECTRICITY MUMBAI LIMITED
152 ANNUAL REPORT 2022-23

Statement of changes in equity for the year ended 31 st

March, 2023

A. Equity Share Capital (H in Crores)

Particulars No. Shares Amount
Balance as at 01 April, 2021 4,02,08,23,535 4,020.82
Changes in Equity Share Capital during the year - -
Balance as at 31 March, 2022
st
4,02,08,23,535 4,020.82
Changes in Equity Share Capital during the current year - -
Balance as at 31 March, 2023
st
4,02,08,23,535 4,020.82

B. Other Equity
For the year ended 31st March, 2023 (H in Crores)
Particulars Reserves and Surplus Items of Other Total
Comprehensive
Income
Capital Contingency Share Retained Cashflow Hedge
Reserve Reserve Fund Premium Earnings Reserve
Account
Balance as at 01 April, 2021 230.78 219.69 120.43 232.53 (113.90) 689.53
Profit for the year - - - 122.16 - 122.16
Other comprehensive Income / - - 14.17 (151.87) (137.70)
(Expense) for the year
Total comprehensive Income / - - - 136.33 (151.87) (15.54)
(Expense) for the year
Transfer to Contingency - 25.74 - (25.74) - -
Reserve
Balance as at 31st March, 2022 230.78 245.43 120.43 343.12 (265.77) 673.99
Balance as at 01 April, 2022 230.78 245.43 120.43 343.12 (265.77) 673.99
Profit for the year - - - 95.18 - 95.18
Other comprehensive Income / - - - (8.38) (65.55) (73.93)
(Expense) for the year
Total comprehensive Income / - - - 86.80 (65.55) 21.25
(Expense) for the year
Transfer to Contingency - 7.36 - (7.36) - -
Reserve
Balance as at 31st March, 2023 230.78 252.79 120.43 422.56 (331.32) 695.24
See accompanying notes forms part of the financial statements
As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary
Place : Mumbai Place: Ahmedabad
Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 153

Statement of Cash flow as at 31 st

March, 2023
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
A. Cash flow from operating activities
Profit before tax 203.64 271.12
Adjustments for:
Interest Income (263.14) (309.34)
Delayed Payment Charges (35.49) (22.90)
Unrealised Foreign Exchange Gain from Borrowings net of 352.23 155.64
Hedging
Amortisation of Service Line Contribution (11.86) (10.30)
Gain On Sale / Fair Value Of Current Investments Measured at FVTPL (4.73) (1.13)
Finance Costs 1,082.03 1,004.74
Depreciation and Amortisation Expense 742.62 651.58
(Profit)/Loss on sale of Fixed Assets (Net) (2.78) (0.42)
Sundry credit balances written back (2.44) (57.41)
Provisions no longer required written back - (38.74)
Bad Debts Written Off 15.21 18.31
Provision for Doubtful Debts / Advances / Deposits 5.58 -
Operating Profit before working capital changes 2,080.87 1,661.15
Changes in Working Capital:
Adjustments for (Increase) / Decrease in Assets :
Trade Receivables 18.37 103.77
Inventories 111.74 (10.99)
Financial Assets - Current / Non Current (8.64) (132.43)
Other Assets - Current / Non Current 6.04 240.98
Regulatory Deferral Account - Assets (839.81) (682.47)
Adjustment for Increase / (Decrease) in Liabilities :
Trade Payables - Current / Non Current 106.77 369.84
Financial Liabilities - Current / Non Current 39.14 (6.04)
Provisions - Current / Non Current (34.74) 52.50
Other Liabilities - Current / Non Current 5.73 (14.42)
Regulatory Deferral Account - Liability (271.56) -
Cash generated from operations 1,213.91 1,581.89
Tax paid (Net) (36.73) (48.65)
Net cash from operating activities (A) 1,177.18 1,533.24
B. Cash flow from investing activities
Capital expenditure on Property, Plant and Equipment & (1,154.70) (1,235.43)
Intangible Assets
Proceeds from Sale of Property, Plant and Equipment 13.28 8.46
(Purchase) / Sale of Mutual Funds / Other Investments-Net (767.08) (27.41)
Bank balances not considered as Cash & Cash Equivalents (90.37) 237.28
Advances - Given - (607.22)
Advances - received back - 607.22
Loans given (1,043.28) -
Loans repaid 2,083.00 -
Loans to employees repaid (net) 2.90 4.42
Delayed payment charges received 35.49 22.90
Interest Received 263.14 299.82
 ADANI ELECTRICITY MUMBAI LIMITED
154 ANNUAL REPORT 2022-23

Statement of Cash flow for the year ended 31 st

March, 2023
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
Net cash used in investing activities (B) (657.62) (689.96)
C. Cash flow from financing activities
Increase in Service Line Contribution 33.81 25.34
Proceeds from Long-term borrowings - 2,231.98
Repayment of Long-term borrowings - (1,369.40)
Proceeds from Short-term borrowings 4,506.78 1,535.53
Repayment of Short-term borrowings (4,006.78) (2,418.88)
Payment of Lease Liability Obligation (14.10) (16.12)
Interest on Lease Liability Obligation (4.48) (6.25)
Interest & Other Borrowing Cost (1,018.60) (902.96)
Net cash used in financing activities (C) (503.37) (920.76)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 16.19 (77.48)
Cash and cash equivalents as at 01 April (Opening Balance) 74.41 151.89
Cash and cash equivalents as at 31 March (Closing Balance) 90.60 74.41

Cash and Cash Equivalents Includes (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balances with banks
- In current accounts 56.13 64.51
- Fixed Deposits 20.00 -
Cash On Hand 0.43 0.80
Cheques / Drafts On Hand 14.04 9.10
Total Cash & Cash Equivalents 90.60 74.41

See accompanying notes forms part of the financial statements

As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad

Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 155

Notes to Financial Statements for the year ended on 31 st

March, 2023

1 Corporate information
Adani Electricity Mumbai Limited (""AEML"") (“The Company”) is a public limited company incorporated and
domiciled in India having its registered office at Adani Corporate House, Shantigram, Near Vaishno Devi
Circle, S. G. Highway, Khodiyar, Ahmedabad 382421, Gujarat, India. It is subsidiary of Adani Transmission
Limited (ATL) (""the Holding Company"") and ultimate holding entity is S. B. Adani Family Trust (SBAFT).
The integrated Mumbai Generation, Transmission and Distribution (GTD) Business, under a license, transmits
and distributes electricity to consumers in and around suburbs of Mumbai inclusive of areas covered under the
Mira Bhayender Municipal Corporation, making it the country’s largest private sector integrated power utility.
The Tariff to be charged to the consumers is regulated by Maharashtra Electricity Regulatory Commission
(""MERC"").
These financial statements of the Company for the year ended March 31, 2023 were authorised for issue
by the board of directors on 26 May, 2023.

2 Summary of Significant Accounting Policies

2.1 Statement of Compliance
The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (IndAS) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with
section 133 of the Companies Act, 2013 ("the Act") (as amended from time to time).

2.2 Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis except for the following assets and
liabilities which have been measured at fair value.
• certain financial assets and liabilities that are measured at fair value;
• defined benefit plans - planned assets measured at fair value;
The financial statements have been prepared in "Indian Rupees" which is also the Company’s functional
currency and all amounts, are rounded to the nearest Crore with two decimals, (Transactions below
H50,000.00 denoted as H0.00), unless otherwise stated.
Accounting policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting
policy hitherto in use.

2.3 Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle; or
• Held primarily for the purpose of trading; or
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
 ADANI ELECTRICITY MUMBAI LIMITED
156 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

• It is expected to be settled in normal operating cycle; or

• It is held primarily for the purpose of trading; or
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realization
in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

2.4.1 Property, plant and equipment ("PPE")

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated
impairment losses, if any.
In respect of Property, Plant and Equipment (“Assets”) pertaining to Mumbai Generation, Transmission
and Distribution business acquired from Reliance Infrastructure Limited under a Court sanctioned
scheme of arrangement with an appointed date of 1 April, 2018, in line with the requirements of the
Court Scheme, the Company has accounted for such Assets at their respective fair values as at April
01, 2018 based on valuation done by a Government registered valuer.
Subsequent additions to the assets on or after 1st April, 2018 are accounted for at cost. Cost includes
purchase price (net of trade discount & rebates) and any directly attributable cost of bringing the asset
to its working condition for its intended use and for qualifying assets, borrowing costs capitalised in
accordance with IndAS 23. Capital work-in-progress is stated at cost, net of accumulated impairment
loss, if any. When significant parts of plant and equipment are required to be replaced at intervals,
the Company depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment
as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognised in the statement of profit and loss as incurred.

Decapitalisation
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in the statement
of profit and loss.

Depreciation
Depreciation commences when an asset is ready for its intended use. Freehold land is not depreciated.
Regulated Assets: subject to the below, depreciation on property, plant and equipment in respect of
Mumbai Generation, Transmission and Distribution business of the Company covered under Part B of
Schedule II of the Companies Act, 2013, has been provided on the straight line method at the rates
using the methodology as notified by the regulator.
For certain types of assets in respect of which useful life is not specified in MERC Multi Year Tariff
Regulations (“MYT regulations”), useful life as prescribed under Schedule-II of Companies Act, 2013 is
considered.
In respect of assets (other than Dahanu Thermal Power Station-DTPS) which have been accounted at
fair value, considering life as specified in MYT regulations, depreciation is provided on Straight Line
Method (considering a salvage value of 5%) over their balance useful life. In respect of DTPS based
on technical evaluation, the balance useful life has been determined as 15 years as on 01 April, 2018.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 157

Notes to Financial Statements for the year ended on 31 st

March, 2023

Salvage value in respect of assets which have not been accounted at fair value has been considered
at 10% except in respect of Furniture & Fixture, Vehicles, Office Equipment and Electrical Installations
which has been considered at 5% and Computers & Software at Nil (Consequent to amendment in
tariff regulations, the Company has changed the Salvage value of Computers from 5 % to Nil w.e.f. 01
April 2020).
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, and the effect of any changes in estimate is accounted for on a prospective basis.
Estimated useful lives of assets other than assets at DTPS are as follows:-
Type of Asset Useful lives
Building 30-60 Years
Plant and Equipment (Except Meters & Batteries)* 25-35 Years
Plant and Equipment - Meters* 10 Years
Plant and Equipment - Batteries* 10 Years
Distribution Line / Transmission Cable 35 Years
Street Light 25 Years
Furniture and Fixtures 15 Years
Office Equipment 5 Years
Computers, Servers & Related Network 3 Years
Vehicles 15 Years
*Consequent to amendment in tariff regulations, w.e.f. 12 July 2022 the Company has changed the
useful life (years) in respect of Batteries (from 5 to 10), Computers (from 6 to 6/3), Furniture and
Fixtures (from 10 to 15), Vehicles (from 8-10 to 15) and Roads Bridges (from 15 to 30).

2.4.2 Intangible Assets

Intangible assets are stated at cost less accumulated depreciation and accumulated impairment
losses, if any.
In respect of Intangible Asset (“Assets”) pertaining to Mumbai Generation, Transmission and
Distribution business acquired from Reliance Infrastructure Limited under a Court sanctioned
scheme of arrangement with an appointed date of 1 April, 2018, in line with the requirements of the
Court Scheme, the Company has accounted for such Assets at their respective fair values as at April
01, 2018 based on valuation done by professional valuation firm.
Subsequent additions to the assets on or after 1st April, 2018 are accounted for at cost.

Derecognition of Intangible assets.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as
the difference between the net disposal proceeds and the carrying amount of the asset, and are
recognised in statement of profit and loss when the asset is derecognised.

Useful life
Intangible assets with finite lives are amortised over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible asset with a finite useful life are reviewed at
least at the end of each reporting period. Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite lives is recognised in the statement of
profit and loss unless such expenditure forms part of carrying value of another asset.
Intangible Assets with Indefinite lives are not amortised but are tested for impairment on annual
basis.
 ADANI ELECTRICITY MUMBAI LIMITED
158 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

Estimated useful lives of the intangible assets are as follows

Type of Asset Useful lives

Transmission License Indefinite
Computer Software 3 years
Consequent to amendment in tariff regulations, the Company has changed the Salvage value of
Computers Software from 1 % to Nil w.e.f. 01 April 2020.

2.4.3 Intangible Assets Under Development - Software

Development costs that are directly attributable to the design and testing of identifiable and unique
software products controlled are recognised as intangible assets where the following criteria are
met:
• it is technically feasible to complete the software so that it will be available for use
• management intends to complete the software and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will generate probable future economic benefits
• adequate technical, financial and other resources to complete the development and to use or
sell the software are available, and
• the expenditure attributable to the software during its development can be reliably measured.
Directly attributable costs that are capitalised as part of the software include employee costs
and an appropriate portion of relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from the point at
which the asset is available for use.

2.4.4 Impairment of PPE and intangible assets

PPE (including CWIP) and intangible assets with definite lives, are reviewed for impairment, whenever
events or changes in circumstances indicate that their carrying values may not be recoverable.
Intangible assets having indefinite useful lives are tested for impairment, at-least annually and
whenever circumstances indicate that it may be impaired.
For the purpose of impairment testing, the recoverable amount (that is, higher of the fair value less
costs to sell and the value-in-use) is determined on an individual asset basis, unless the asset does
not generate cash flows that are largely independent of those from other assets, in which case
the recoverable amount is determined at the cash generating unit (“CGU”) level to which the said
asset belongs. If such individual assets or CGU are considered to be impaired, the impairment to be
recognised in the statement of profit and loss is measured by the amount by which the carrying value
of the asset / CGU exceeds their estimated recoverable amount and allocated on pro-rata basis.
Impairment losses are reversed in the statement of profit and loss and the carrying value is increased
to its revised recoverable amount provided that this amount does not exceed the carrying value that
would have been determined had no impairment loss been recognised for the said asset / CGU in
previous years.

2.5 Cash & Cash Equivalents

Cash & cash equivalents comprises cash on hand, cash at bank and short term deposit with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash
& cash equivalents include balance with banks which are unrestricted for withdrawal and usage.
For the purpose of the statement of cash flows, cash & cash equivalents consists of cash at banks and
short term deposits as defined above, as they are considered an integral part of the Company’s cash
management.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 159

Notes to Financial Statements for the year ended on 31 st

March, 2023

2.6 Cash Flow Statement

Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts
or payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.

2.7 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities are added to
or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities measured at fair value through profit or loss are recognised immediately in the statement of
profit and loss.

2.8 Financial assets

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

1 Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest rate
method if these financial assets are held within a business whose objective is to hold these assets
in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

2 Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument
basis to present the subsequent changes in fair value in other comprehensive income pertaining
to investments in equity instruments, other than equity investment which are held for trading.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments
through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss
on disposal of the investments.

3 Financial assets at fair value through profit or loss (FVTPL)

All financial assets that do not meet the criteria for amortised cost are measured at FVTPL.

4 Impairment of investments
The Company reviews its carrying value of investments carried at cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount,
the impairment loss is accounted in the statement of profit and loss.
 ADANI ELECTRICITY MUMBAI LIMITED
160 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

5 Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:
- the right to receive cash flows from the asset have expired, or
- the Company has transferred its right to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its right to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks
and rewards of ownership. When it has neither transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of the Company’s continuing involvement. In
that case, the Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.

6 Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a
loss allowance. The Company recognises lifetime expected losses for all contract assets and / or
all trade receivables that do not constitute a financing transaction. For all other financial assets,
expected credit losses are measured at an amount equal to the 12 month expected credit losses or
at an amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition.

2.9 Financial liabilities and equity instruments

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

2 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by The Company are recognised at the
proceeds received, net of direct issue costs.

3 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest
method. Gains and losses are recognised in statement of profit and loss when the liabilities are
derecognised as well as through the Effective Interest Rate (EIR) amortisation process. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

4 Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of
profit and loss.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 161

Notes to Financial Statements for the year ended on 31 st

March, 2023

2.10 Reclassification of financial assets and liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected to
be infrequent. The Company’s senior management determines change in the business model as a result of
external or internal changes which are significant to the Company’s operations. Such changes are evident
to external parties. A change in the business model occurs when the Company either begins or ceases
to perform an activity that is significant to its operations. If the Company reclassifies financial assets,
it applies the reclassification prospectively from the reclassification date which is the first day of the
immediately next reporting period following the change in business model. The Company does not restate
any previously recognised gains, losses (including impairment gains or losses) or interest.

2.11 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.12 Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined
on weighted average basis. Net realisable value represents the estimated selling price for inventories less
all estimated costs of completion and costs necessary to make the sale. Cost of inventory includes cost
of purchase and other costs incurred in bringing the inventories to their present location and condition.
Unserviceable/damaged stores and spares are identified and written down based on technical evaluation.

2.13 Business combinations and Goodwill

The Company accounts for its business combinations under acquisition method of accounting. Acquisition
related costs are recognised in statement of profit and loss as incurred. The acquiree’ s identifiable assets,
liabilities and contingent liabilities that meet the condition for recognition are recognised at their fair
values at the acquisition date.
If the initial accounting for a business combination is incomplete as at the reporting date in which the
combination occurs, the identifiable assets and liabilities acquired in a business combination are measured
at their provisional fair values at the date of acquisition. Subsequently adjustments to the provisional values
are made within the measurement period, if new information is obtained about facts and circumstances
that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets
and liabilities as of that date; otherwise the adjustments are recorded in the period in which they occur.
Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after reassessing
the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred
and the amount recognised for the net identifiable assets acquired and liabilities assumed. If the fair value
of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses
whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the
procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still
results in an excess of the fair value of net assets acquired over the aggregate consideration transferred,
then the gain is recognised in other comprehensive income (OCI) and accumulated in equity as capital
reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly
in equity as capital reserve, without routing the same through OCI.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash generating units that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
 ADANI ELECTRICITY MUMBAI LIMITED
162 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in
profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

2.14 Foreign currencies

The functional currency of the Company is Indian Rupee H
Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the
transaction. Foreign currency denominated monetary assets and liabilities are translated at the exchange
rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and
restatement are recognised in the statement of profit and loss.
Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are
not retranslated.
Exchange differences on monetary items are recognised in the statement of profit and loss in the period
in which they arise except for exchange differences on foreign currency borrowings relating to assets
under construction for future productive use, which are included in the cost of those assets when they are
regarded as an adjustment to interest costs on those foreign currency borrowings.

2.15 Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement:
In order to hedge its exposure to foreign exchange and interest rate risks, the Company enters into forward,
option, swap contracts and other derivative financial instruments. The Company does not hold derivative
financial instruments for speculative purposes.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement
of profit and loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later
reclassified to the statement of profit and loss when the hedge item affects profit or loss. When the hedged
item is the cost of a non-financial asset or non-financial liability, the amounts recognised as OCI are
transferred to the initial carrying amount of the non-financial asset or liability.
For the purpose of hedge accounting, hedges are classified as:
Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability
or an unrecognised firm commitment.
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognised asset or liability or a highly probable forecast transaction or
the foreign currency risk in an unrecognised firm commitment.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the
remaining maturity of the hedged item is less than 12 months.
At the inception of a hedge relationship, the Company formally designates and documents the hedge
relationship to which the Company wishes to apply hedge accounting.
The documentation includes the Company’s risk management objective and strategy for undertaking
hedge, the hedging/ economic relationship, the hedged item or transaction, the nature of the risk being
hedged, hedge ratio and how the entity will assess the effectiveness of changes in the hedging instrument’s
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 163

Notes to Financial Statements for the year ended on 31 st

March, 2023

fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable
to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair
value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly
effective throughout the financial reporting periods for which they were designated.
Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

i) Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are
recognised in the statement of profit and loss immediately, together with any changes in the fair
value of the hedged asset or liability that are attributable to the hedged risk.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative
change in the fair value of the firm commitment attributable to the hedged risk is recognised as an
asset or liability with a corresponding gain or loss recognised in statement of profit and loss.
Hedge accounting is discontinued when the Company revokes the hedge relationship, the hedging
instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria
for hedge accounting.

ii) Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit
and loss.
Amounts recognised in OCI are transferred to profit or loss when the hedged transaction affects
profit or loss, such as when the hedged financial income or financial expense is recognised or when
a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial
liability, the amounts recognised as OCI are transferred to the initial carrying amount of the non-
financial asset or liability.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover
(as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no
longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in
OCI remains separately in equity until the forecast transaction occurs or the foreign currency firm
commitment is met.

2.16 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration to which the Company expects to be entitled
in exchange for those goods or services

1 Transmission of Power
Revenue from transmission of power is recognised net of cash discount over time for transmission
of electricity. The Company as per the prevalent tariff regulations is required to recover its Annual
Revenue Requirement (‘ARR’) comprising of expenditure on account of operations and maintenance
expenses, financing costs, taxes and assured return on regulator approved equity with additional
incentive for operational efficiencies.
Input method is used to recognize revenue based on the Company’s efforts or inputs to the satisfaction
of a performance obligation to deliver power
As per tariff regulations, the Company determines ARR and any surplus/shortfall in recovery of the
same is accounted as revenue.

2 Sale of Power - Distribution

Revenue from sale of power is recognised net of cash discount over time for each unit of electricity
delivered at the pre determined rate. Sales of power under Deviation settlement mechamism is
recognised at variable cost.
 ADANI ELECTRICITY MUMBAI LIMITED
164 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

3 Rendering of Services
Revenue from a contract to provide services is recognized over time based on output method where
direct measurements of value to the customer based on survey’s of performance completed to date.
Revenue is recognised net of cash discount at a point in time at the contracted rate.

4 Interest on Overdue Receivables / Delay Payment Charges

Consumers are billed on a monthly basis and are given average credit period of 15 to 30 days for
payment. No delayed payment charges (‘DPC’) / interest on arrears (‘IOA’) is charged for the initial 15-
30 days from the date of invoice to customers. Thereafter, DPC / IOA is charged at the rate prescribed
in the tariff order on the outstanding amount.
Revenue in respect of delayed payment charges and interest on delayed payments leviable as per
the relevant contracts are recognised on actual realisation or accrued based on an assessment of
certainty of realization supported by either an acknowledgement from customers or on receipt of
favourable order from regulator / authorities.”

5 Sale of Traded Goods :

Revenue from sale of goods is recognised when the goods are delivered and titles have passed, at
which time all the following conditions are satisfied:
• The Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
• the amount of revenue can be measured reliably; and
• it is probable that the economic benefits associated with the transaction will flow to The
Company.
There is no significant judgement involved while evaluating the timing as to when customers
obtain control of promised goods and services.

6 Amortisation of Service Line Contribution

Contributions by consumers towards items of property, plant and equipment, which require an
obligation to provide electricity connectivity to the consumers, are recognised as a credit to deferred
revenue. Such revenue is recognised over the useful life of the property, plant and equipment.

7 Interest income:
Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is
accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset’s net carrying amount on initial recognition.

2.17 Regulatory Deferral Account

The Company determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in
respect of its regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral
Accounts” read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the
principles laid down under the relevant Tariff Regulations/Tariff Orders notified by the Electricity Regulator
and the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate
adjustments in respect of such revenue gaps are made in the regulatory deferral account of the respective
year for the amounts which are reasonably determinable and no significant uncertainty exists in such
determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory
deferral accounts debit/credit balances (Regulatory Assets/Regulatory Liabilities) as the case may be in
the financial statements, which would be recovered/refunded through future billing based on future tariff
determination by the regulator in accordance with the electricity regulations
The Company presents separate line items in the balance sheet for:
i. the total of all regulatory deferral account debit balances; and”
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 165

Notes to Financial Statements for the year ended on 31 st

March, 2023

ii. the total of all regulatory deferral account credit balances.”

A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory
deferral account. Regulatory assets/ liabilities on deferred tax expense/income is presented separately in
the tax expense line item

2.18 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
Substantial time is defined as time required for commissioning of the assets considering industry
benchmarks/MERC tariff regulations.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in statement of profit and loss in the period in which they are
incurred. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to
the borrowing costs.

2.19 Employee benefits

1 Defined contribution plan:
Payments to defined contribution retirement benefit plans are recognised as an expense when
employees have rendered service entitling them to the contributions.

2 Defined benefit plans:

The cost of providing benefits under the defined benefit plan is determined using the projected
unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the
asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the
return on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods. Past service costs are recognised in the statement of profit and
loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an expense
in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non routine settlements; and
- Net interest expense or income.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer
withdraw the offer of the termination benefit and when the entity recognises any related restructuring
costs
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
 ADANI ELECTRICITY MUMBAI LIMITED
166 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

The parameter most subject to change is the discount rate. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates.

3 Current and other non-current employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of current employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other non-current employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the Company in respect of
services provided by employees up to the reporting date.

4 Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service. Liabilities recognised in respect of short-
term employee benefits are measured at the undiscounted amount of the benefits expected to be
paid in exchange for the related service. Liabilities recognised in respect of other long-term employee
benefits are measured at the present value of the estimated future cash outflows expected to be
made by the Company in respect of services provided by employees up to the reporting date.

2.20 Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is,
or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date except
for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-
term and low value leases, the lease payments associated with these leases as an expense on a straight-
line basis over the lease term.
Lease term is a non-cancellable period together with periods covered by an option to extend the lease if
the Company is reasonably certain to exercise that option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to exercise that option.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset
is subsequently depreciated using the straight-line method from the commencement date to the end of
the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end
of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase
option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset. In
addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments to be paid over the lease
term at the commencement date, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate. Subsequently, the lease liability is measured at amortised
cost using the effective interest method.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 167

Notes to Financial Statements for the year ended on 31 st

March, 2023

2.21 Taxation
Tax on Income comprises current tax and deferred tax. These are recognised in Statement of Profit and
Loss except to the extent that it relates to a business combination, or items recognised directly in equity
or in other comprehensive income.

1 Current tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date in the countries where the Company
operates and generates taxable income.
Current income tax relating to items recognised outside statement of profit and loss is recognised
outside statement of profit and loss (either in other comprehensive income or in equity). Current
tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.

2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of assets and liabilities in a transaction other than a
business combination that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a
net basis.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws
in India, which is likely to give future economic benefits in the form of availability of set off against
future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance
sheet when the asset can be measured reliably and it is probable that the future economic benefit
associated with the asset will be realised. The Company reviews the “MAT credit entitlement” asset at
each reporting date and writes down the asset to the extent that it is no longer probable that it will
pay normal tax during the specified period.
Deferred tax assets are recognised for unused tax losses (excluding unabsorbed depreciation) to the
extent that it is probable that taxable profit will be available against which the losses can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that
 ADANI ELECTRICITY MUMBAI LIMITED
168 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies

2.22 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders
of the Company by the weighted average number of equity shares outstanding during the period. Diluted
earnings per equity share is computed by dividing the net profit attributable to the equity holders of
the Company by the weighted average number of equity shares considered for deriving basic earnings
per equity share and also the weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the
beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including for changes effected prior to the
approval of the financial statements by the Board of Directors.

2.23 Provisions, Contingent Liabilities and Contingent Assets.

1 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).
Present obligations arising under onerous contracts are recognised and measured as provisions
with charge to statement of profit and loss. An onerous contract is considered to exist where the
Company has a contract under which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received from the contract

2 Contingent liability
A possible obligation that arises from past events and the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the enterprise are disclosed as contingent liability and not provided for. Such liability is not
disclosed if the possibility of outflow of resources is remote.

3 Contingent assets
A contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity. Contingent assets are not recognised but disclosed only when
an inflow of economic benefits is probable.

2.24 Dividend distribution to equity shareholders of the Company

The Company recognises a liability to make dividend distributions to its equity holders when the
distribution is authorised and the distribution is no longer at its discretion. As per the corporate laws in
India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 169

Notes to Financial Statements for the year ended on 31 st

March, 2023

3.1 Standards issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian
Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below
Ind AS 1 – Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their
significant accounting policies. Accounting policy information, together with other information, is material
when it can reasonably be expected to influence decisions of primary users of general purpose financial
statements. The Company does not expect this amendment to have any significant impact in its financial
statements.
Ind AS 12 – Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company
is evaluating the impact, if any, in its financial statements.
Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates.
The definition of a change in accounting estimates has been replaced with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies
require items in financial statements to be measured in a way that involves measurement uncertainty.
The Company does not expect this amendment to have any significant impact in its financial statements.

4 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, management of the Company is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. Detailed information about each of these estimates and judgements is included in relevant
notes together with information about the basis of calculation for each affected line item in the financial
statements.
The areas involving critical estimates or judgements are:
Estimation of current tax and deferred tax expense - Note 29
Estimates used for impairment of transmission license - Note 31
Judgement to estimate the amount of provision required or to determine required disclosure related to
litigation and claims against the Company - Note 33
Estimation of defined benefit obligation - Note 39
For the purpose of captilisation of borrowing cost, substantial time is defined as time required for
commissioning of the assets considering industry benchmarks/MERC tariff regulations.
Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.
 st
170

Notes to Financial Statements for the year ended on 31 March, 2023

Note 5 : Property, plant and equipment (PPE) (H in Crores)
Particulars Freehold Buildings - Buildings- Plant and Distribution Street Railway Jetty Furniture Vehicles Office Computers Electrical Total
Land Residential Others Equipment Systems Light Siding and Equipment Installations
Fixtures
Gross carrying amount
As at 1st April 2021 2,636.87 104.42 822.42 4,972.41 5,591.82 194.72 6.87 1.31 20.96 40.08 24.01 107.08 29.81 14,552.78
Additions - 0.49 48.94 332.23 597.00 37.41 - 0.08 0.70 6.86 4.74 77.10 17.75 1,123.30
Disposals - - 0.02 20.22 - - - - 0.13 0.72 0.29 0.67 0.38 22.43
Closing Gross carrying
ANNUAL REPORT 2022-23

amount as on 31st 2,636.87 104.91 871.34 5,284.42 6,188.82 232.13 6.87 1.39 21.53 46.22 28.46 183.51 47.18 15,653.65
March, 2022
Accumulated
depreciation and
impairment
ADANI ELECTRICITY MUMBAI LIMITED

As at 1st April 2021 - 11.73 82.73 781.47 577.17 31.56 1.25 0.24 9.93 8.13 12.29 39.85 11.16 1,567.51
Depreciation charge for
- 3.94 30.53 289.62 246.78 11.51 0.41 0.08 2.20 5.09 3.05 16.43 3.18 612.82
the year
Eliminated on disposal
- - 0.02 12.64 - - - - 0.13 0.35 0.28 0.67 0.30 14.39
of assets
Closing accumulated
depreciation as on 31st - 15.67 113.24 1,058.45 823.95 43.07 1.66 0.32 12.00 12.87 15.06 55.61 14.04 2,165.94
March, 2022
Net carrying amount -
2,636.87 89.24 758.10 4,225.97 5,364.87 189.06 5.21 1.07 9.53 33.35 13.40 127.90 33.14 13,487.71
31st March, 2022
Gross carrying amount
As at 1st April 2022 2,636.87 104.91 871.34 5,284.42 6,188.82 232.13 6.87 1.39 21.53 46.22 28.46 183.51 47.18 15,653.65
Additions - 1.55 29.47 422.83 516.39 45.95 - - 0.49 31.99 3.56 35.04 8.11 1,095.38
Disposals - - 0.01 22.06 - 2.68 - - - 2.23 0.02 3.26 0.41 30.67
Closing Gross carrying
amount as on 31st 2,636.87 106.46 900.80 5,685.19 6,705.21 275.40 6.87 1.39 22.02 75.98 32.00 215.29 54.88 16,718.36
March, 2023
Accumulated
depreciation and
impairment
As at 1st April 2022 - 15.67 113.24 1,058.45 823.95 43.07 1.66 0.32 12.00 12.87 15.06 55.61 14.04 2,165.94
Depreciation charge for
- 5.00 31.10 315.94 277.06 13.05 0.41 0.09 1.16 3.30 3.72 43.25 4.38 698.46
the year
Eliminated on disposal
- - 0.01 14.20 - 1.00 - - - 1.30 0.02 3.26 0.38 20.17
of assets
Closing accumulated
depreciation as on 31st - 20.67 144.33 1,360.19 1,101.01 55.12 2.07 0.41 13.16 14.87 18.76 95.60 18.04 2,844.23
March, 2023
Net carrying amount -
2,636.87 85.79 756.47 4,325.00 5,604.20 220.28 4.80 0.98 8.86 61.11 13.24 119.69 36.84 13,874.13
31st March, 2023
Notes:
(i) Refer footnote to Note 17 for security/charges created on property, plant and equipment.
(ii) The title deeds in respect of land and certain residential properties are either in the erstwhile names of the Company viz: “Bombay Suburban Electric Supply Limited” / “Reliance Energy Limited”
/ “Reliance Infrastructure Limited”. The Company is in process of updating the same from erstwhile Company’s name to the name of the Company. Details of Immovable Properties for which title
deeds are not in the name of Company are given below:
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 171

Notes to Financial Statements for the year ended on 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE)

Relevant Decription Gross Title deeds held Whether title Property Reason for not being
Line Item in of carrying in the name of deed holder is a held since held in the name of the
Balance sheet Property value promoter, director which date company
(H in or relative of
Crores) promoter/director
or employee of
promoter/director
Property, Land 2,477.47 BSES / Reliance No August 28, The title deeds in
Plant and (Free hold) Energy / Reliance 2018 respect of land and
Equipment Infrastructure certain residential
Limited properties are either
Property, Building - 596.85 BSES / Reliance No August 28, in the erstwhile names
Plant and Residental Energy / Reliance 2018 of the Company viz:
Equipment /Others Infrastructure “Bombay Suburban
Limited Electric Supply Limited”
/ “Reliance Energy
Right-of-Use Leasehold 7.86 BSES / Reliance No August 28,
Limited” / “Reliance
Assets Land Energy / Reliance 2018
Infrastructure Limited”.
Infrastructure
The Company is in
Limited
process of updating the
same from erstwhile
Company's name to the
name of the Company.

iii) Consequent to amendment in tariff regulations w.e.f. 12th July 2022, the Company changed the useful life in
respect of Batteries, Computers, Furniture & fixtures , vehicles and Roads Bridges accordingly depreciation
for the year ended 31st March, 2023 is higher by H5.70 crores.

Note 5a: Right of Use (H in Crores)

Particulars Right of Use
Land Building Right of Way Total
Gross carrying amount
As at 1st April 2021 13.75 138.66 40.16 192.57
Additions 510.32 - - 510.32
Derecognition - 36.57 - 36.57
Closing Gross carrying amount as on 31st March, 2022 524.07 102.09 40.16 666.32
Accumulated amortisation & Impariment
As at 1st April 2021 0.68 46.79 3.61 51.08
Amortisation charge of the year 3.63 19.74 3.02 26.39
Derecognition - 3.94 - 3.94
Closing accumulated amortisation as on 31st March, 4.31 62.59 6.63 73.53
2022
Net carrying amount - 31st March, 2022 519.76 39.50 33.53 592.79
Gross carrying amount
As at 1st April 2022 524.07 102.09 40.16 666.32
Additions 0.23 - 1.32 1.55
Derecognition - - - -
 ADANI ELECTRICITY MUMBAI LIMITED
172 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

Note 5a: Right of Use (Contd.) (H in Crores)

Particulars Right of Use
Land Building Right of Way Total
Closing Gross carrying amount as on 31 March, 2023
st
524.30 102.09 41.48 667.87
Accumulated amortisation & Impariment
As at 1st April 2022 4.31 62.59 6.63 73.53
Amortisation charge of the year 6.42 13.81 3.18 23.41
Derecognition - - - -
Closing accumulated amortisation as on 31 st
March, 10.73 76.40 9.81 96.94
2023
Net carrying amount - 31st March, 2023 513.57 25.69 31.67 570.93

Note 5b: Intangible Assets (H in Crores)

Computer Transmission Total
Software License
Gross carrying amount
As at 01 April 2021 43.14 981.62 1,024.76
Additions 49.51 - 49.51
Disposal - - -
Closing Gross carrying amount as on 31st March, 2022 92.65 981.62 1,074.27
Accumulated amortisation & Impariment
As at 01 April, 2021 20.46 - 20.46
Amortisation charge for the year 15.62 - 15.62
Eliminated on disposal of assets - - -
Closing accumulated amortisation as on 31st March, 2022 36.08 - 36.08
Net carrying amount - 31st March, 2022 56.57 981.62 1,038.19
Gross carrying amount
As at 01 April 2022 92.65 981.62 1,074.27
Additions 30.07 - 30.07
Disposal - - -
Closing Gross carrying amount as on 31st March, 2023 122.72 981.62 1,104.34
Accumulated amortisation & Impariment
As at 01 April 2022 36.08 - 36.08
Amortisation charge for the year 26.82 - 26.82
Eliminated on disposal of assets - - -
Closing accumulated amortisation as on 31st March, 2023 62.90 - 62.90
Net carrying amount - 31st March, 2023 59.82 981.62 1,041.44
Notes:
(i) The above Intangible Assets are other than internally generated Intangible Assets.
(ii) Transmission License was acquired as part of the business acquisition. The License is valid for 25 years from
16th August 2011 to 15th August 2036. The license can be further extended at minimal cost, considering
similar extensions have happened in the past. Based on an analysis of all of the relevant factors, the license
is considered by the Company as having an indefinite useful life, as there is no foreseeable limit to the
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 173

Notes to Financial Statements for the year ended on 31 st

March, 2023

Note 5b: Intangible Assets (Contd.)

period over which the transmission business related assets are expected to generate net cash inflows for
the Company.
(iii) The title deeds in respect of certain lease hold land properties are in the erstwhile names of the Company
viz: Bombay Suburban Electric Supply Limited” / “Reliance Energy Limited” / “Reliance Infrastructure
Limited”. The Company is in process of updating the same from erstwhile Company’s name to the name of
the Company.
During the pervious year, the Company had entered into memorandum of understanding in name of the
Company with M/s. Superheights Infraspace Private Limited (SIPL) (related party) for an amount of H510.00
crores towards acquiring leasehold rights of land parcel at BKC, Mumbai for construction of Extra High
Voltage (EHV) Substation to meet the incremental load requirement. The Company has obtained possession
of the said land after giving capital advance of H431.00 crores and commenced substantial pre-construction
activities.
The leasehold land amounting to H510.00 crores is included in the right of use assets. The Company will
enter into formal lease agreement on completion of the construction of the substation as per the applicable
regulatory requirements.
(iv) Transmission License is pledged as security with the Lenders against borrowings.

(H in Crores)
Depreciation / Amortisation For the year ended For the year ended
31st March, 2023 31st March, 2022
Depreciation on Tangible Assets 698.46 612.82
Amortisation on Intangible Assets 26.82 15.62
Amortisation on Right of Use 23.41 26.39
Total 748.69 654.83
Less : Transferred to Capital work in progress (6.07) (3.25)
Net depreciation charged to the Statement of Profit and Loss 742.62 651.58

Note 5c: Capital work-in-progress

(a) Capital-work-in progress ageing schedule: (H in Crores)
Particulars Amount in CWIP for a period of Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress 521.86 85.25 13.51 32.11 652.73
- Projects temporarily suspended 0.97 0.67 - 0.06 1.70
Total 522.83 85.92 13.51 32.17 654.43
As at 31st March, 2022
- Projects in progress 236.75 30.94 8.62 36.98 313.29
- Projects temporarily suspended 0.22 0.87 0.95 0.15 2.19
Total 236.97 31.81 9.57 37.13 315.48
 ADANI ELECTRICITY MUMBAI LIMITED
174 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

Note 5c: Capital work-in-progress (Contd.)

(b) capital-work-in progress, which has exceeded its cost compared to its original plan: (H in Crores)
CWIP To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress
11kV Network_New Supply_FY 2019-20 0.24 - - - 0.24
- Projects temporarily suspended
Total 0.24 - - - 0.24
As at 31st March, 2022
- Projects in progress
Low Tension network projects 0.19 - - - 0.19
- Projects temporarily suspended
Low Tension network projects 0.17 - - - 0.17
Total 0.36 - - - 0.36
Cost Overruns upto (+-) 10 % are envisaged by the management’s original plan, and hence not considered in
above table.

(c) capital-work-in progress, whose completion is overdue compared to its original plan: (H in Crores)
CWIP To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress
Main Plant DPR Jobs 0.12 0.01 - - 0.13
Other DPR Jobs 0.06 - - - 0.06
11kV Network Strengthening 2017-18_ 1.63 1.63
New Supply
33-22/11 kV Receiving Station Schemes 1.38 - - - 1.38
(11-12)
11kV Network strengthening 2013-14 0.08 - - - 0.08
11kV Network_New Supply_FY 2019-20 0.24 - - - 0.24
Services New Supply (2019-20) 0.26 - - - 0.26
IT Network_Revamping_FY 2020-21 2.44 - - - 2.44
LT Mains_Improvement_FY 2020-21 & FY 0.44 - - - 0.44
2021-22
Receiving Station_R M Prabodhani_FY 1.51 - - - 1.51
2020-21
DPR - Security Automation 0.21 - - - 0.21
Augmentation_FY 2021-22
- Projects temporarily suspended
33-22/11 kV Receiving Station Schemes 0.00 - - - 0.00
(11-12)
Additional Rec-Stn DPR (14-15) 0.07 - - - 0.07
Additional Rec-Stn DPR (15-16) 0.01 - - - 0.01
Total 8.44 0.01 - - 8.45
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 175

Notes to Financial Statements for the year ended on 31 st

March, 2023

Note 5c: Capital work-in-progress (Contd.)

(c) capital-work-in progress, whose completion is overdue compared to its original plan: (H in Crores)
CWIP To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2022
- Projects in progress
Main Plant DPR Jobs 0.23 - - - 0.23
Main Plant Non DPR Jobs 0.01 - - - 0.01
11KV Substation jobs 0.06 - - - 0.06
Receiving Station Jobs 0.82 - - - 0.82
Low Tension Network jobs 0.02 - - - 0.02
Others Non DPR Jobs 0.06 - - - 0.06
- Projects temporarily suspended
Receiving Station Jobs 0.05 - - - 0.05
Total 1.25 - - - 1.25
Time Overruns due to delay in statutory approvals and right of way issues, and approved by the management’s
revised plan are not considered in above table.

Note 5d: Intangible assets under development aging schedule:

(a) Capital-work-in progress ageing schedule: (H in Crores)
Particulars Amount in CWIP for a period of Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress - - - - -
- Projects temporarily suspended - - - - -
Total - - - - -
As at 31 March, 2022
st

- Projects in progress - - - - -
- Projects temporarily suspended - - - - -
Total - - - - -

(b) Intangible Assets Under Development, whose completion is overdue or has exceeded its cost
compared to its original plan:

Particulars To be completed in Total

<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023 - - - - -
As at 31 March, 2022
st
- - - - -
 ADANI ELECTRICITY MUMBAI LIMITED
176 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

6 Investments
6a Non-current investments (H in Crores)
Face Value of H No of Shares As at As at
unless otherwise 31st March, 2023 31st March, 2022
specified
Investment in Equity Shares of
Subsidiary (Unquoted) (Cost)
Adani Electricity Mumbai Infra 10 (10) 10,000 (10000) 0.01 0.01
Limited
AEML SEEPZ Limited 10 (10) 10,000 (10000) 0.01 0.01
Investment in Government
Securities at amortised cost
Contingency Reserve
Investments (Quoted)
7.16% Central Government of 100 (100) 1,87,50,000 201.22 201.74
India - 2050 (1,87,50,000)
9.23% Central Government of 100 (100) 2,20,000 2.82 2.88
India - 2043 (2,20,000)
5.63% Central Government of 100 (Nil) 30,00,000 29.57 -
India - 2026 (Nil)
Total 233.63 204.64
Aggregate Market Value of 214.32 188.31
Quoted Investments
Aggregate Carrying Value of 233.61 204.62
Quoted Investments
Aggregate Carrying Value of 0.02 0.02
Unquoted Investments
Aggregate amount of - -
impairment in the value of
investments

6b Current investments
Face Value of H No of Units As at As at
unless otherwise 31st March, 2023 31st March, 2022
specified
Contingency Reserve
Investments
Investment in Tresury Bills at 100 25,00,000 24.75 24.84
FVTPL (Quoted) (100) (25,00,000)
Investment in mutual funds at
FVTPL (Quoted)
SBI Overnight Direct Growth 7,37,653.15 269.19 -
{NAV H3,649.25 (NA)} (Nil)
ABSL Overnight Direct Growth 8,99,491.49 109.06 -
{NAV H1,212.45 (NA)} (Nil)
ABSL Liquid Direct Growth 100,43,309.82 364.66 -
{NAV H363.08 (NA)} (Nil)
767.66 24.84
Aggregate Market Value of 767.66 24.84
Quoted Investments
Aggregate Carrying Value of 767.66 24.84
Quoted Investments
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 177

Notes to Financial Statements for the year ended on 31 st

March, 2023

7 Loans - At Amortised Cost (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Housing loans to employee against 16.85 19.86 2.98 3.47
hypothecation of the property
(Secured, considered good)
Inter Corporate Deposit given to related party 0.28 1,040.00 - -
(Unsecured, considered good)
Loans to employees 8.79 8.54 3.89 3.54
(Unsecured, considered good)
25.92 1,068.40 6.87 7.01

(H in Crores)
Type of Borrowers Amount of loan or advance Amount of loan or advance
in the nature of loan in the nature of loan
outstanding outstanding
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Promoter - - - -
Director - - - -
Key Managerial Personnel - 0.62 - 0.06%
Related Party 0.28 1,040.00 0.85% 96.71%
(i)) Loans to Key Managerial Personnels were not repayable on demand and had defined repayments schedule
and as per the company’s Employees Loan Policy
(ii) Inter Corporate Deposit given to Adani Properties Private Limited (related party) were for a period of 3 years
and repayable on demand or on maturity of 3 years whichever is earlier, is repaid before maturity. Inter
Corporate Deposit given to AEML Seepz Limited (related party) is for a period of 3 years and repayable on
demand or on maturity of 3 years whichever is earlier.

8 Other Financial Assets - At Amortised Cost (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(Unsecured, considered good unless otherwise
stated)
Security Deposits - Unsecured
Considered Good 22.23 18.64 - -
Considered doubtful 6.63 1.05 - -
28.86 19.69 - -
Less : Provision For Doubtful Deposits (6.63) (1.05) - -
Total 22.23 18.64 - -
 ADANI ELECTRICITY MUMBAI LIMITED
178 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

8 Other Financial Assets - At Amortised Cost (Contd.) (H in Crores)

Non-Current Current
As at 31st
As at 31 st
As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
* Fixed Deposit with Banks 608.74 516.34 - -
# Derivative instruments designated in hedge 553.37 165.25 - -
accounting relationship
Unbilled Revenue - - 597.55 507.56
Regulatory Assets other than Distribution - - 18.33 -
Other Financial Assets - - 7.18 116.03
1,184.34 700.23 623.06 623.59
Note :
Represents deposits towards Debt Service Reserve Account (DSRA), Capex Reserve Account (CRA) and Margin
money.
Refer footnote to Note 17 for security/charges created on hedging instruments.

9a Income Tax Assets (net) (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Income Tax Assets (net) 2.93 3.91
2.93 3.91

9b Current Tax Liabilities (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Current Tax Liabilities - 2.13
- 2.13

10 Other Assets (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(Unsecured, Considered good)
Advance to Suppliers - - 113.34 125.19
Balances with Government authorities - - 5.46 0.05
Prepaid Expenses 0.46 1.32 16.35 16.79
Capital advances 53.75 68.55 - -
Advance to Employees 3.96 2.03 3.69 3.92
58.17 71.90 138.84 145.95
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 179

Notes to Financial Statements for the year ended on 31 st

March, 2023

11 Inventories (H in Crores)
As at As at
31st March, 2023 31st March, 2022
(Stated at lower of Cost and Net Realisable Value)
Fuel 39.78 127.40
Fuel - In Transit 17.00 35.83
Stores & spares 35.97 41.26
92.75 204.49
Above inventories are pledged as security with the Lenders against borrowings (Refer Note No 17).

12 Trade Receivables (H in Crores)

As at As at
31st March, 2023 31st March, 2022
(unsecured, unless stated otherwise)
Unsecured, considered good 412.27 450.49
Trade Receivables which have significant increase in credit risk 40.00 35.36
Credit Impaired 1.39 1.39
453.66 487.24
Less : Provision for doubtful Trade receivables (1.39) (1.39)
452.27 485.85
Note :
(i) The Company holds security deposit in respect of trade receivables - Refer Note No 20
(ii) Above trade receivables are pledged as security with the Lenders against borrowings (Refer Note No 17).
(iii) As at 31st March, 2023 - H52.17 crores (31 March 2022 : H77.15 crores) is due from Maharashtra State Electricity
Transmission Company Limited and H3.00 Crores (31 March 2022 : H43.70 crores) is due from Municipal
Corporation of Greater Mumbai which represents Company’s large customer who owes more than 5% of the
total balance of trade receivables.
(iv) The average credit period for the Company’s receivables from its transmission and distribution (including
street light maintenance ) business is in the range of 15 to 30 days. No interest or delayed payment is
charged on trade receivables till the due date. Thereafter, one time delayed payment charges at the rate of
1.25% & interest after 30 / 60 days from bill date is charged in the range of 12% to 15% per annum
(v) In case of transmission business, regulator approved tariff is receivable from long-term transmission
customers (LTTCs) and Discoms that are highly rated companies or government parties. Counterparty credit
risk with respect to these receivables is very minimal.
(vi) The Company considers for impairment of its receivables from customers in its Mumbai distribution business.
The risk of recovery in these businesses is reduced to the extent of security deposits already collected and
held as collateral. Balance amount receivable over and above the deposit is assessed for expected credit loss
allowances. The Company has used a practical expedient by computing the expected credit loss allowance
for trade receivables based on a provision matrix. The provision matrix takes into account historical credit
loss experienced and adjusted for forward- looking information. The expected credit loss allowance is based
on ageing of the days the receivables are due.
 ADANI ELECTRICITY MUMBAI LIMITED
180 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

12.1 Trade Receivables ageing Schedule

As at 31st March, 2023
Particulars Outstanding for following periods from due date of receipt
Not Less than 6 months 1-2 2-3 More than Total
Due 6 months - 1 year years years 3 years
(i) Undisputed Trade 291.40 112.25 0.26 5.10 - - 409.01
receivables – considered
good
(ii) Undisputed Trade 17.23 14.72 2.87 5.15 - - 39.97
Receivables – which have
significant increase in
credit risk
(iii) Undisputed Trade - - - 1.39 - - 1.39
Receivables – credit
impaired
(iv) Disputed Trade Receivables 0.92 1.54 0.32 0.48 - - 3.26
considered good
(v) Disputed Trade Receivables 0.03 - - - - - 0.03
- which have significant
increase in credit risk
(vi) Disputed Trade Receivables - - - - - - -
– credit impaired
(vii) Provision for Doubtful Debts - - - (1.39) - - (1.39)
Total 309.58 128.51 3.45 10.73 - - 452.27

As at 31st March, 2022

Particulars Outstanding for following periods from due date of receipt
Not Less than 6 months 1-2 2-3 More than Total
Due 6 months - 1 year years years 3 years
(i) Undisputed Trade 244.67 160.47 1.97 40.61 - - 447.72
receivables – considered
good
(ii) Undisputed Trade 6.25 18.08 3.87 7.12 - - 35.32
Receivables – which have
significant increase in
credit risk
(iii) Undisputed Trade - - - 1.39 - - 1.39
Receivables – credit
impaired
(iv) Disputed Trade Receivables 0.60 1.66 0.36 0.15 - - 2.77
considered good
(v) Disputed Trade Receivables 0.01 0.03 - - - - 0.04
- which have significant
increase in credit risk
(vi) Disputed Trade Receivables - - - - - - -
– credit impaired
(vii) Provision for Doubtful Debts - - - (1.39) - - (1.39)
Total 251.53 180.24 6.20 47.88 - - 485.85
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 181

Notes to Financial Statements for the year ended on 31 st

March, 2023

12.2 Movement in the allowance for doubtful trade receivables (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balance at the beginning of the year 1.39 1.39
Add/(Less) : Provision made / (Written off) during the year (net - -
of recoveries)
Balance at the end of the year 1.39 1.39
The concentration of credit risk is very limited due to the fact that the large customers are mainly
government bodies / departments and remaining customer base is large and widely dispersed and secured
with security deposit.

13 Cash and Cash Equivalents - At Amortised Cost (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balances with banks
- In current accounts 56.13 64.51
- Fixed Deposits 20.00 -
Cash On Hand 0.43 0.80
Cheques / Drafts On Hand 14.04 9.10
Total Cash & Cash Equivalents as per Statement of Cash Flows 90.60 74.41

Reconciliation of liabilities from Financing Activities (H in Crores)

Particulars As at 1st Cash flows Non-cash As at 31st
April, 2022 Proceeds Repayment Transaction March, 2023
Non-current Borrowings 11,864.65 - - 1,023.97 12,888.62
(including Current Maturities
of Non-current Borrowings)
Current Borrowings - 4,506.78 (4,006.78) - 500.00
(Excluding Bank Overdraft)
Total 11,864.65 4,506.78 (4,006.78) 1,023.97 13,388.62

Reconciliation of liabilities from Financing Activities (H in Crores)

Particulars As at 1st Cash flows Non-cash As at 31st
April, 2021 Proceeds Repayment Transaction March, 2022
Non-current Borrowings 10,578.03 2,231.98 (1,369.40) 424.04 11,864.65
(including Current Maturities
of Non-current Borrowings)
Current Borrowings 883.35 1,535.53 (2,418.88) - -
(Excluding Bank Overdraft)
Total 11,461.38 3,767.51 (3,788.28) 424.04 11,864.65
Note : Non-cash transactions represents movement in revaluation of foreign currency borrowings.

 ADANI ELECTRICITY MUMBAI LIMITED
182 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

14 Bank Balance Other than Cash and Cash Equivalents - At Amortised Cost
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
Bank Deposits with Original Maturity of more than 3 months but 622.45 624.48
less than 12 months
622.45 624.48

15 Share Capital (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Authorised Share Capital
5,000,000,000 (5,000,000,000) equity shares of H10 each. 5,000.00 5,000.00
5,000.00 5,000.00
Issued, Subscribed and Paid-up Share Capital
4,020,823,535 (4,020,823,535) fully paid up equity shares of H10 4,020.82 4,020.82
each.
4,020.82 4,020.82

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
No. Shares No. Shares
Equity Shares
At the beginning of the Year 4,02,08,23,535 4,02,08,23,535
Issued during the year - -
Outstanding at the end of the year 4,02,08,23,535 4,02,08,23,535
Details of shares alloted for consideration other than cash
During the year ended 31st March, 2020 62,07,73,535 numbers Equity Shares of H10 each at a premium
of H1.94 per share, have been issued through Preferential allotment to Parent Company on conversion of
intercorporate deposit (including interest accrued) H460.25 Crores and unsecured perpetual Instrument.

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of H10 per share. Each holder of equity
shares is entitled to one vote per share. The dividend if proposed by the Board of Directors is subject to
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
Company the holders of the equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 183

Notes to Financial Statements for the year ended on 31 st

March, 2023

15 Share Capital (Contd.)

c. Details of shareholding of the promotors and shareholders holding more than 5% shares in the
Company
(H in Crores)
As at 31 March, 2023
st
As at 31 March, 2022
st

No. Shares % held No. Shares % held

Equity shares of H10 each fully
paid
Adani Transmission Limited and 3,01,15,96,827 74.90% 3,01,15,96,827 74.90%
its nominees (Promoters)##
Qatar Holding LLC ## 1,00,92,26,708 25.10% 1,00,92,26,708 25.10%
4,02,08,23,535 100.00% 4,02,08,23,535 100.00%
## Shares Pledged
No. of equity shares pledged 4,02,08,23,529 4,02,08,23,529
to Lenders - 100% (31st March,
2022 - 100%)

16 Other Equity (H in Crores)

As at As at
31st March, 2023 31st March, 2022
a. Capital Reserve 230.78 230.78

Capital Reserve represents the gain arising on accounting of business combination, wherein on the acquisition-
date the net amounts of the identifiable assets acquired and the liabilities assumed exceeded the consideration
amount paid.

b. Effective portion of cashflow Hedge (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Opening Balance (265.77) (113.90)
Add : Effective portion of cash flow hedge for the year (65.55) (151.87)
Closing Balance (331.32) (265.77)
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes
in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative
gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are
recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or
loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-
financial hedged item.

c. Contingency Reserve Fund (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Opening Balance 245.43 219.69
Transfer from Retained Earnings 7.36 25.74
Closing Balance 252.79 245.43
As per the provisions of MERC MYT Regulations read with Tariff orders passed by MERC, the Company being a
Distribution and Transmission Licensee, makes an appropriation to the Contingency Reserve Fund to meet with
certain exigencies. Investments have been made in Securities issued by Government of India.
 ADANI ELECTRICITY MUMBAI LIMITED
184 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

16 Other Equity (Contd.) (H in Crores)

As at As at
31st March, 2023 31st March, 2022
d. Share Premium Account 120.43 120.43
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with
the provisions of the Companies Act, 2013.

e. Retained Earnings (H in Crores)

As at As at
31st March, 2023 31st March, 2022
(Retained Earnings are the profits of the Company earned till date
net of appropriations)
Opening Balance 343.12 232.53
Add : Profit for the year 95.18 122.16
Other Comprehensive Income arising from remeasurement of (8.38) 14.17
Defined Benefit Plans(net of tax)
Transfer to Contingency Reserve Fund (7.36) (25.74)
Closing Balance 422.56 343.12
Total 695.24 673.99
The Board of Directors of the Company in their meeting held on 26 May, 2023, have declared interim dividend of
H0.85 per equity share of H10 each for the financial year 2022-23 amounting to H341.77 crores.

17 Borrowings
(At Amortised Cost) (H in Crores)
Non-Current Current
As at 31st
As at 31 st
As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Secured
External Commercial Borrowings in Foreign
Currency
Senior Secured Note - 3.949% 8,158.69 7,512.41 - -
Sustainability Linked Notes - 3.867% 2,440.41 2,246.10 - -
Unsecured
External Commercial Borrowings in Foreign
Currency
Shareholders Affiliated Debts - 6.365% 2,289.52 2,106.14 - -
12,888.62 11,864.65 - -
$$$ Incudes processing fees netted of H110.68 Crores (31 March 2022 - H125.72 Crores)
 st
Notes to Financial Statements for the year ended on 31 March, 2023
17 Borrowings (Contd.)
Notes
Borrowings Security Terms of Repayment of Borrowings
Senior Secured Note - 3.949% a) a first pari passu mortgage over certain Identified Immovable Properties; By way of bullet payment in February
(and related hedging instruments) b) a first pari passu charge on the movable assets of the Project (both present and future); 2030 with an obligation to prepay the
debt on occurrence of certain events.
c) a first pari passu charge on all book debts, operating cash flows, receivables (excluding
The Company can voluntarily prepay
Past Period Regulatory Assets, monies in the Debenture Liquidity Account and the post
the Bond on payment of premium.
distribution cash flows), commissions or revenues whatsoever arising out of the Project
Sustainability Linked Notes - 3.87% By way of bullet payment in July 2031
(both present and future);
(and related hedging instruments) with an obligation to prepay the debt
d) a first pari passu charge on the Accounts under the Project Accounts Deed (except the on occurrence of certain events. The
Excluded Accounts (which means the AEML PPRA Account, the Debenture Liquidity Company can voluntarily prepay the
Account, each of the AEML Post Distribution Cash Flow Accounts; any accounts opened Bond on payment of premium.
for the purpose of managing any Excluded Cash Flows; and the AEML Distributions
Working capital short term loan Working capital short term loans
Account)) and amounts lying to the credit of such Accounts (both present and future);
outstanding as on 31st March, 2023
e) a first pari passu assignment in relation to Transmission License and Distribution are repayable within 03 months and
License, subject to approval from the MERC; the rate of interest ranges from 8.90%
f) a pledge over 100% of the entire paid up equity and preference share capital of the to 8.95%.
Company;
As at 31 March 2022 there were no
g) a non-disposal undertaking over immovable properties other than certain identified working capital short term loans
immoveable properties; outstanding.
h) a non-disposal undertaking over the immoveable and moveable assets (including all
book debts, operating cash flows, receivables, commissions or revenues whatsoever) of
the Service Company (both present and future); and
i) a non-disposal undertaking over 100% of the equity and preference share capital of the
Service Company.
In addition to the aforesaid, the Collateral shall also include such security interest
as may be required to be created by other group entities of the Issuer in the future,
and such collateral may be shared in the same manner as aforementioned with other
lenders of the Company, and such future obligors.
Ranking of Security
The Collateral will be a first charge ranking pari passu among the debt security holders,
without any preference or priority and shall rank pari passu with all the senior secured
debt of the Company in accordance with the Senior Secured Note Documents and the
intercreditor agreement.
Shareholders Affiliated Debts - (i) First-ranking fixed charge over all its present and future right, title, benefit and interest Shareholders Affiliated Debts are
6.365% in the Excluded Loan Accounts repayable commencing from February
(ii) First-ranking floating charge over all of its present and future right, title, benefit and 2027 through February 2040 with
an obligation to prepay the debt on
FINANCIAL STATEMENTS
STATUTORY REPORTS
CORPORATE OVERVIEW

interest in the equity distribution account

occurrence of certain events. The
Company can voluntarily prepay the
debt on payment of premium.
185
 ADANI ELECTRICITY MUMBAI LIMITED
186 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

18 Trade Payables (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(A) total outstanding dues of micro enterprises - - 42.87 25.07
and small enterprises; and
(B) total outstanding dues of creditors other 32.76 32.22 1,551.87 1,465.88
than micro enterprises and small enterprises.
32.76 32.22 1,594.74 1,490.95
This information as required to be disclosed under Micro and Small Enterprises, to whom the Company owes
dues (including interest on outstanding dues), which are outstanding as at the Balance Sheet date. The above
information has been determined to the extent such parties have been identified on the basis of information
available with the Company. This has been relied upon by the auditors.

(H in Crores)
As at As at
31st March, 2023 31st March, 2022
(a) the principal amount remaining unpaid to any supplier at the 232.41 104.41
end of each accounting year (including payable for Property,
Plant & equipment)
(b) Interest due on principal amount remaining unpaid to any 0.67 0.62
supplier at the end of each accounting year
(c) the amount of interest paid by the buyer in terms of section - -
16 of the Micro, Small and Medium Enterprises Development
Act, 2006 (27 of 2006), along with the amount of the payment
made to the supplier beyond the appointed day during each
accounting year.
(d) the amount of interest due and payable for the period of delay 0.67 0.62
in making payment (which has been paid but beyond the
appointed day during the year) but without adding the interest
specified under the Micro, Small and Medium Enterprises
Development Act, 2006;
(e) the amount of interest accrued and remaining unpaid at the 0.67 0.62
end of each accounting year; and
(f) the amount of further interest remaining due and payable even 0.67 0.62
in the succeeding years, until such date when the interest dues
above are actually paid to the small enterprise, for the purpose
of disallowance of a deductible expenditure under section 23
of the Micro, Small and Medium Enterprises Development Act,
2006.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 187

Notes to Financial Statements for the year ended on 31 st

March, 2023

18 Trade Payables (Contd.)

Trade Payables ageing schedule
Particulars Outstanding for following periods from due date of payment*
Not Due <1 year 1-2 years 2-3 years More than Total
3 years
As at 31st March, 2023
(a) MSME 26.07 10.79 1.67 1.27 3.07 42.87
(b) Others 903.28 273.14 156.50 97.89 61.75 1,492.56
(c) Disputed dues – MSME - - - - - -
(d) Disputed dues - Others - - 92.07 - - 92.07
Total 929.35 283.93 250.24 99.16 64.82 1,627.50
As at 31st March, 2022
(a) MSME 9.77 9.49 2.10 2.46 1.25 25.07
(b) Others 160.59 1,058.51 127.80 49.58 9.55 1,406.03
(c) Disputed dues – MSME - - - - - -
(d) Disputed dues - Others - 92.07 - - - 92.07
Total 170.36 1,160.07 129.90 52.04 10.80 1,523.17
* Ageing for provisions have been considered based on transaction date.

19 Lease Liabilities (H in Crores)

Non-Current Current
As at 31 st
As at 31 st
As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Lease Obligation 14.47 26.25 16.27 18.59
14.47 26.25 16.27 18.59

20 Other Financial Liabilities

(At Amortised Cost) (H in Crores)
Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Interest accrued but not due on borrowings - - 126.04 113.91
Payable towards purchase of PPE
(A) total outstanding dues of micro enterprises - - 190.21 79.96
and small enterprises; and
(B) total outstanding dues of creditors other - - 363.44 235.18
than micro enterprises and small enterprises.
Security Deposit from Consumers - - 507.02 471.70
Regulatory Liabilities other than Distribution - - - 2.94
Security Deposit from Customers / Vendors - - 14.07 15.25
Other Financial Liabilities - - 7.94 -
Derivative Instruments designated in hedge 3.71 66.02 - 57.07
accounting relationship
3.71 66.02 1,208.72 976.01
# Refer footnote to Note 17 for security/charges created on hedging instruments.
 ADANI ELECTRICITY MUMBAI LIMITED
188 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

21 Provisions (H in Crores)
Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Provision for Gratuity 152.48 160.10 29.07 32.57
Provision for Compensated absences 332.98 393.31 67.85 28.07
Provision for Other Employment Benefits 17.14 18.87 1.82 3.16
502.60 572.28 98.74 63.80

22 Other Liabilities (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Deferred Revenue - Service Line Contributions 265.64 245.47 12.90 11.12
from Consumers
Statutory dues payable - - 215.25 210.66
Advances From Customer - - 64.56 66.74
Other Payables - - 6.50 3.18
265.64 245.47 299.21 291.70

23 Borrowings
(At Amortised Cost) (H in Crores)
As at As at
31st March, 2023 31st March, 2022
Secured loans from banks 500.00 -
Working capital short term loan 500.00 -

Security and Rate of Interest

(i) For Security of Working Capital Loans - (Refer Note No 17)
(ii) For working capital outstanding on 31st March, 2023, the rate of interest for Secured loans from banks
ranged from 8.90% TO 8.95%. As at 31st March,2022 there were no working capital or short term loans
outstanding
(iii) There are no charges or satisfaction which are to be registered with Registrar of Companies beyond the
statutory period.
(iv) The Company has been sanctioned working capital from banks on the basis of security of current assets.
The Company in this regard has been duly submitting with all such banks from whom such facilities are
taken, the quarterly statements comprising details of said current assets viz. raw material, stores and spares,
finished goods, advances for power purchases and coal, book debts (including unbilled revenue), other
receivable (<90 days) and regulatory assets recoverable within 1 year reduced by relevant trade payables (i.e
net of provisions, regulatory payables and other payables). The said quarterly statements are in agreement
with the unaudited books of account of the Company of the respective quarters based on draft figures at
the point of time of reporting and there are no material discrepancies.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 189

Notes to Financial Statements for the year ended on 31 st

March, 2023

24 Revenue from Operations (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Income from Sale of Power and Transmission Charges
Income from Sale of Power and Transmission Charges (Net) 8,125.95 6,673.94
(Less)/Add: Income to be adjusted in future tariff determination 21.26 3.59
(Net)
8,147.21 6,677.53
b) Other Operating Income
Insurance Claim Received - 2.55
Income in respect of Services rendered 48.41 42.04
Sale of Coal Rejects / Fly Ash 13.90 16.59
Street Light Maintenance Charges 119.73 141.77
Amortisation of Service Line Contribution 11.86 10.30
Miscellaneous Revenue 16.17 17.40
210.07 230.65
c) Sale of Traded Goods
Sale of Traded Goods 3.68 0.76
3.68 0.76
Total 8,360.96 6,908.94

Details of Revenue from Contracts with Customers (disagrregated by type and nature of prodcut
or services)
(H in Crores)
Particulars For the year ended For the year ended
31st March, 2023 31st March, 2022
Income from Sale of Power 7,786.05 6,334.58
Income from Transmission Charges (Net) 361.16 342.95
Income in respect of Services rendered 48.41 42.04
Sale of Coal Rejects / Fly Ash 13.90 16.59
Street Light Maintainence Charges 119.73 141.77
Sale of Traded Goods 3.68 0.76
Add: Cash Discount/Rebates etc 41.65 31.29
Total Revenue as per Contracted Price 8,374.58 6,909.98

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.
 ADANI ELECTRICITY MUMBAI LIMITED
190 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

24 Revenue from Operations (Contd.)

Contract Balances (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Contract Assets
Recoverable from Consumers
Non-current - -
Current 18.33 -
Total Contract Assets 18.33 -
Contract liabilities
Liabilities towards Consumers
Non-current - -
Current - 2.94
Total Contract Liabilities - 2.94
Receivables
Trade Receivables (Gross) 453.66 487.24
Unbilled Revenue for passage of time 597.55 507.56
Regulatory Assets other than Distribution 18.33 -
(Less): Advance from Consumers (64.56) (66.74)
(Less): Allowance for Doubtful Debts (1.39) (1.39)
Net Receivables 1,003.59 926.67

Contract assets
Contract asset is the right to consideration in exchange for goods or services transferred to the customer.
Contract Assets are transferred to receivables when the rights become unconditional.
Contract liabilites
A Contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer, If the constomer pays
contribution before the Company trasfers goods or services to the customers, a contract liability is recoginised
when the payment is made or the payment is due (whichever is earlier). Contract liabilites are recoganised as
revenue when the perforance of obligation is satisfied.
Significant changes in the contract assets and the contract liabilities balances during the year are as follows :
(H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Opening Balance
Recoverable from consumers - -
Liabilities towards consumers 2.94 6.53
A 2.94 6.53
Income to be adjusted in future tariff determination (Net) (21.27) (3.59)
B (21.27) (3.59)
Closing Balance
Recoverable from consumers 18.33
Liabilities towards consumers - 2.94
(A+B) 18.33 2.94
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 191

Notes to Financial Statements for the year ended on 31 st

March, 2023

25 Other Income (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Interest Income
On Financial Assets carried at Amortised Cost
Bank Deposits 92.78 106.31
Overdue Trade Receivables 20.53 22.45
Contingency Reserve Fund Investment - Non Current - 13.30
Contingency Reserve Fund Investment - Current 15.46 0.53
On Intercorporate Deposits 104.73 114.40
Other interest 29.32 51.50
Interest on Security Deposits - Lease 0.32 0.85
b) Gain/(Loss) on Investments
Gain On Sale / Fair Value Of Current Investments Measured at 4.73 1.13
FVTPL
c) Other Non-operating Income
Bad Debts Recovery 17.89 4.95
Sale of Scrap 4.10 11.79
Rental Income 0.47 0.27
Delayed Payment Charges 35.49 22.90
Foreign Exchange Gain (net) 0.03 -
Profit / (Loss) on Sale of Assets 2.78 0.42
Incentive Received - 1.44
Sundry credit balances written back 2.44 57.41
Total 331.07 409.65

26 Employee Benefits Expenses (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
# Salaries, Wages & Bonus 831.63 680.35
Contribution To Gratuity 32.48 48.07
Contribution to Provident and Other Funds 55.56 57.52
Contribution to Superannuation Fund 7.71 7.76
Compensated absences 17.78 42.00
Staff Welfare Expenses 82.48 99.02
1,027.64 934.72
Less : Staff Cost Capitalised (149.64) (136.04)
Total 878.00 798.68
# Net of wage provisions no longer required written back of H59.43 crores (31 March 2022 : H38.74 Crores)
A Special Voluntary Retirement Scheme (SVRS) 2023, was rolled out for employees of the Company from March
28, 2023, to April 15, 2013. Amount charged during the year towards expected payout in this regard and included
above are H211.72 crores (31 March 2022 : H Nil).
 ADANI ELECTRICITY MUMBAI LIMITED
192 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

27 Finance costs (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Interest Expense
Borrowings - Amortised Cost
Rupee Term Loans
$ Senior Secured Note - 1.71
$ Shareholders Affiliated Debts 350.87 322.04
$ External Commercial Borrowings (Note 1 below) 150.67 138.00
$ Sustainability Linked Notes - 47.99
Working Capital Loans 103.13 66.12
Foreign Exchange Fluctuation Gain(net)- (Note 1 below) 71.43 44.44
Borrowings
Interest - Hedging Cost 352.23 155.64
Others 430.78 400.24
Security Deposits From Consumers at
amortised cost
Interest on lease obligation 20.03 18.71
Interest - Others 4.48 6.25
1.13 0.24
Less : Interest Cost Capitalised 1,484.75 1,201.38
(51.87) (42.45)
1,432.88 1,158.93
b) Other Borrowing Costs
Other Finance Cost 1.38 1.45
1,434.26 1,160.38
$ - In Foreign Currency,
Note :
1 Includes H Nil (31 March 2022: H28.45 Crores) (unamortised upfront fees) charged off on settlment of
External Commercial Borrowings.
2 The weighted average capitalisation rate on the Company’s general borrowings is 8.76% (31 March 2022:
8.76%) per annum.
3 Including Mark to Market gain of H656.18 Crores (31 March 2022: gain of H252,56 Crores) on Derivative
Instruments designated in hedge accounting relationship.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 193

Notes to Financial Statements for the year ended on 31 st

March, 2023

28 Other Expenses (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
Consumption Of Stores & Spares 51.42 56.59
Repairs & Maintenance
- Plant & Machinery 347.57 329.63
- Buildings 15.75 20.22
- Others 34.46 26.18
Expenses in respect of Services rendered 35.49 38.14
@ Short Term Lease Rental of Land,Building,Plant & Machinery 16.13 12.62
Etc
Vehicle Hire Charges 20.48 16.97
Rates and Taxes 11.41 19.44
Legal & Professional Expenses 166.41 149.40
Directors' Sitting Fees 0.08 0.08
Bank Charges 6.37 6.04
@@ Payment to Auditors 1.87 1.74
Communication Expenses 8.68 7.96
Travelling & Conveyance Expenses 13.90 8.45
Insurance Expenses 17.75 9.76
License fees 1.82 1.74
Security Charges 31.06 31.17
Seminar & Training Expenses 3.16 3.17
Software Expenses 40.60 18.15
Provision for Doubtful Deposits 5.58 -
Bad debt Write off (Refer Note 12.2) 15.21 18.31
Bill Print/Collection/ Distribution 13.00 11.88
Foreign Exchange Fluctuation Loss(net) 0.48 1.20
Call Center Expenses 11.99 8.37
Donations 0.60 0.30
@@@ Corporate Social Responsibility Expenses 7.65 5.69
Electricity Expenses 0.46 0.51
Printing & Stationery 0.96 1.38
Advertisement & Publicity 27.31 9.26
Water charges 5.23 3.68
Other Miscellaneous Expenses 27.44 20.27
Total 940.32 838.30
@ Lease Rentals inrespect of low value assets is immaterial.
 ADANI ELECTRICITY MUMBAI LIMITED
194 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

28 Other Expenses (Contd.)

@@ Payment to auditors (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
As auditor:
Statutory Audit Fees 1.33 1.32
# Other Services 0.20 0.14
Out of Pocket Expenses 0.05 0.01
Applicable taxes 0.29 0.27
1.87 1.74
# Excluding fees of HNil {PY 1.25 crores (plus taxes 0.22 crores)} for services towards Sustainability linked bond
issue which is netted off in borrowings for purposes of calculating Effective Interest Rate.

@@@ Details of Corporate Social Responsibilities under Section 135 of Companies Act
(H in Crores)
Particulars For the year ended For the year ended
31st March, 2023 31st March, 2022
(i) Amount required to be spent by the company during the year 7.61 5.65
(ii) Total of previous years shortfall / (excess) amounts (0.04) 0.72
(iii) Amount of expenditure incurred:
(a) Construction or acquisition of any assets - -
(b) on purpose other than (a) above 0.23 0.28
- Donation to related party trust (not controlled by the 7.42 6.13
Company)
Total amount of expenditure incurred 7.65 6.41
(iv) (Excess) / Shortfall at the end of the year (0.08) (0.04)
(v) Provision made towards CSR expenditure - -
(vi) Reason for shortfall : Nil (31 March 2022 : Nil)
(vii) Nature of CSR activities : Primary Education, Community Health and Sanitation, Sustainable Livelihood
Development and Urban / Rural Infrastructure Development.

29 Tax Expenses
1 Income Taxes recognised in the statement of profit & loss (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Current Income Tax (MAT) 27.20 47.78
Deferred Tax 81.26 101.18
108.46 148.96
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 195

Notes to Financial Statements for the year ended on 31 st

March, 2023

29 Tax Expenses (Contd.)

2 Income Tax recognised in other comprehensive income (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Current Income Tax
- Remeasurement of Defined Benefit Plans 8.38 3.00
Total income tax recognised in other comprehensive income 8.38 3.00
Bifurcation of the income tax recognised in other
comprehensive income into:
Items that will be reclassified to statement of profit and loss - -
Items that will not be reclassified to statement of profit and 8.38 3.00
loss
8.38 3.00
The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit Before Tax 203.64 271.12
Income tax using the company's domestic tax rate @ 71.16 94.74
34.944%
Tax Effect of :
- Non deductible Expenses 2.88 2.09
- MAT credit not recognised 27.20 47.78
- Tax on other Items 7.22 4.35
Income tax expense recognised in statement of profit and 108.46 148.96
loss
Notes
The Union Cabinet on 20 November 2019 approved the proposal for introducing the Taxation Laws
(Amendment) Bill, 2019 in order to replace the Ordinance, 2019. Accordingly, on 25 November 2019, the
Taxation Laws (Amendment) Bill, 2019 (Bill) was introduced which received the assent of the President of
India on 12 December 2019. The Taxation Laws Amendment Bill inserted Section 115BAA in the Income Tax
Act, 1961 which provides domestic companies a non-reversible option to pay corporate tax at reduced rates
effective 01 April, 2019 subject to certain conditions. The Company has decided not to avail the benefit
provided under the above Bill, however the Company would evaluate its option in the future based on
business developments.
Unrecognised unused tax credits (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Unrecognised Tax Credits 35.58 50.78

The expiry of unrecognised unused MAT credits is as described below: (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Within One Year - -
Greater than one year, less than five years - -
Greater than five years 229.59 194.01
No expiry date - -
Total 229.59 194.01
 ADANI ELECTRICITY MUMBAI LIMITED
196 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

29 Tax Expenses (Contd.)

3 Deferred Tax (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Deferred tax Assets 1,499.34 1,335.37
Deferred tax Liabilities 1,759.95 1,514.72
Net Deferred Tax Assets / (Liabilities) (260.61) (179.35)

2022-23
Opening Recognised in Closing
Balance Profit & Loss Balance
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits, Advances 7.70 0.96 8.66
and property tax payable
Provisions for employee benefits and others 214.58 (11.07) 203.51
Unabsorbed Depreciation 1,113.10 174.08 1,287.17
1,335.37 163.97 1,499.34
Deferred Tax liabilities in relation to

Property, Plant & Equipment 1,514.72 245.23 1,759.95

1,514.72 245.23 1,759.95
Deferred Tax Asset/(Liability) (Net) (179.35) (81.26) (260.61)

2021-22
Opening Recognised in Closing
Balance Profit & Loss Balance
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits and 5.67 2.03 7.70
Advances
Provisions for employee benefits and others 201.89 12.69 214.58
Unabsorbed Depreciation 881.16 231.94 1,113.10
1,088.71 246.66 1,335.37
Deferred Tax liabilities in relation to
Property, Plant & Equipment 1,166.88 347.84 1,514.72
1,166.88 347.84 1,514.72
Deferred Tax Asset/(Liability) (Net) (78.17) (101.18) (179.35)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 197

Notes to Financial Statements for the year ended on 31 st

March, 2023

30 Earnings Per Share (EPS) (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
(A) Before net Movement in Regulatary Deferral Balance
Profit / (Loss) attributable to Equity Shareholders 95.18 122.16
Add/(Less): Net Movement in Regulatory Deferral 1,035.58 682.47
Balance
Income tax on Regulatory Income / (expense) (180.94) (119.24)
Regulatory Income / (expense) (net of tax) 854.64 563.23
Net Profit / (Net Loss) excluding regulatory Income (759.46) (441.07)

Number of Weighted Average Equity Shares, No. 4,02,08,23,535 4,02,08,23,535

outstanding during the year for basic / diluted EPS
Nominal Value of Equity Shares H 10.00 10.00
Basic / Diluted Earnings per Share before net H (1.89) (1.10)
Movement in Regulatary Deferral Balance

(B) After net Movement in Regulatary Deferral Balance

Profit / (Loss) attributable to Equity Shareholders 95.18 122.16

Number of Weighted Average Equity Shares, No. 4,02,08,23,535 4,02,08,23,535

outstanding during the year for basic EPS
Nominal Value of Equity Shares H 10.00 10.00
Basic / Diluted Earnings per Share after net Movement H 0.24 0.30
in Regulatary Deferral Balance

31 In accordance with the requirements of Ind AS 36 “Impairment of Assets”, Transmission Cash Generating
Unit (“TCGU”) which includes carrying value of Transmission License having indefinite useful life being
Transmission License (H981.62 crores), has been tested for impairment as at 31st March, 2023 wherein,
recoverable amount of the TCGU has been determined applying value in use approach. The value in use of
the TCGU has been determined using Discounted Cash Flow Method (DCF).
In deriving the recoverable amount of the TCGU a discount rate (post tax) of 9.50 % (31 March 2022: 9.10%)
per annum has been used. In arriving at the recoverable amount of the TCGU , financial projections have
been developed for 6 years (31 March 2022: 6 years) and thereafter in perpetuity considering a terminal
growth rate of 1 % (31 March 2022: 1.5%) per annum.
Based on the results of the TCGU impairment test, the estimated value in use of the TCGU was higher than
its carrying amount, hence impairment provision recorded during the current year is H Nil (31 March 2022
- H Nil) Crore. Management believes that any reasonably possible change in the key assumptions on which
recoverable amount is based would not cause the aggregate carrying amount to exceed the fair value of
the Transmission License.
The key assumptions used in determining the recoverable amount of TCGU are as follows :
(i) Discount Rate: 9.50 % (31 March 2022: 9.10 %) Post-Tax Discount rate has been derived based on current
cost of borrowing and equity rate of return in line with the current market expectations
(ii) Capital expenditure / Capitalisation: Capital expenditure and capitalisation for 6 years (31 March 2022:
6 years) is estimated based on management projections subject to regulatory approval and thereafter
H500 crores per annum (31 March 2022: H500 crores per annum)
 ADANI ELECTRICITY MUMBAI LIMITED
198 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

32 Leases
(i) Disclosure under Ind AS 116 Leases:
a) The following is the movement in Lease liabilities during the year ended 31st March, 2023
(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Opening Balance 44.84 93.59
Interest on Lease Liabilities 4.48 6.25
Lease Liabilities on account of Leases entered / terminated - (32.63)
during the year
Payments of Lease Liabilities / Other Adjustments (18.58) (22.37)
Closing Balance (refer note 19) 30.74 44.84

b) Where the Company is a leassee :

The Company has taken office premises on lease. Generally leases are renewed on mutual consent and
at a prevalent market price and sub lease is restricted.
i Interest Expenses on lease liabilities amounts to H4.48 crores (31st March, 2022 H6.25 crores)
ii The expense relating to payments not included in the measurement of the lease liability and
recognised as expenses in the statemet of profit and loss during the year is as follows :
Low Value leases - Immaterial
Short-term leases - H16.13 crores (31st March, 2022 H12.62 crores)
iii Total Cash outflow for leases amounts to H34.71 Crores (31st March, 2022 H34.99 crores) during the
year including cash outflow short term and low value leases.

c) The Company had a 25 year long term Power Purchase Agreement (PPA) with Vidharbha Industries
Power Limited (VIPL), wherein the Company has committed to purchase the entire output generated
from VIPL’s generating station located at Butibori. In terms of the PPA, the Company subject to a minimum
guaranteed plant availability (determined on a yearly basis) is liable to pay subject to MERC approval
a fixed monthly capacity charge and a variable charge towards the cost of fuel.VIPL was obligated to
make the plant available for generation for a minimum period of time (determined on a yearly basis) and
the option as regards the timing of availability was at the discretion of VIPL.
The Company on assessment of the above arrangement has concluded, that considering the Company
does not have the right to direct the use of the asset , the above arrangement does not qualify to be
lease under IND AS 116.
During FY 2019-20, the Company had terminated the above PPA due to non-performance of
obligations under the PPA by VIPL, such termination has been upheld by MERC / Appellate
Tribunal of Electricity (“ATE”). VIPL has filed an appeal before the Hon’ble Supreme Court against
the said order issued by the ATE. The proceedings are ongoing with the Hon’ble Supreme Court.
The Hon’ble Supreme Court, while hearing the case in respect of the issues between Vidarbha Industries
Power Limited (VIPL), RInfra and AEML, had been appraised that both VIPL and RInfra have raised similar
issues before the Hon’ble Supreme Court and Arbitrator respectively. Therefore, the Hon’ble Supreme
Court, considering the submission made by parties, passed a direction vide order dated 22nd November
2022, to stay the Arbitration Proceedings in view of pendency of the present case.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 199

Notes to Financial Statements for the year ended on 31 st

March, 2023

33 Contingent liabilities and Commitments (H in Crores)

Particulars As at As at
31st March, 2023 31st March, 2022
(A) Contingent liabilities :
Claims against the Company not probable and hence not
acknowledged as debts consists of : -

(i) Demand disputed by the Company relating to Service tax on 353.55 353.55
street light maintaince, wheeling charges and cross subsidy
surcharges - Refer note 3
(ii) Claims raised by the Government authorities towards unearned 127.65 127.65
income arising on alleged tranfer of certain land parcels - Refer
note 3
(iii) Way Leave fees claims disputed by the Company relating to 28.43 28.43
rates charged - Refer note 3
(iv) Property related disputes - Refer note 3 2.59 2.59
(v) Other claims against the Company not acknowledged as debts. 2.12 2.12
(vi) Claims raised by Vidharbha Industries Power Limited (VIPL) in 1,381.28 1,381.28
respect of increase in fuel cost for the financial year ended 31st
March, 2019 - Refer Note 3 and 32(i)(c)
(vii) Demand disputed by the Company relating to Standby Charges 213.79 -
including Interest payable - Refer Note 4
(viii) Claims pretaining to interest in respect of certain regulatary - @@
Liabilities -Refer Note 3
(ix) Liability in respect of disposal of bottom Ash - @@
(x) Liability in respect of termination of power purchase lease @@ @@
agreement
2,109.41 1,895.62
@@ Amount not determinable
Notes:
1 Amounts in respect of employee related claims/disputes, consumer related litigation, regulatory matters is
not ascertainable.
2 Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions
pending at various forums/authorities.
3 In terms of the Share Purchase Agreement entered into by the Company, ATL with RINFRA, in the event the
above matters are decided against the Company and are not recoverable from the consumers, the same
would be recovered from RINFRA.
4 Appeal has been filed by the Company under Section 111 of the Electricity Act, 2003, challenging the
Order dated 31 March 2023 passed by the Maharashtra Electricity Regulatory Commission directing levy of
Standby charges by Maharashtra State Electricity Distribution Company Limited.
5 The above Contingent Liabilities (except interest payable on vii) to the extent pertaining to Regulated
Business, which on unfavourable outcome are recoverable from consumers subject to MERC approval,
The Company, in respect of the above mentioned Contingent Liabilities has assessed that it is only possible but
not probable that outflow of economic resources will be required.
 ADANI ELECTRICITY MUMBAI LIMITED
200 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

33 Contingent liabilities and Commitments (Contd.)

(B) Capital Commitments : (H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
(i) Estimated amount of contracts remaining to be executed on 551.90 699.48
capital account and not provided for
551.90 699.48
(ii) Other Commitments :
a) For procurement of Hybrid (Solar/WInd) power on long term basis, AEML has entered into a long term
25 years PPA of 700 MW with a group entity (Adani Hybrid Energy Jaisalmer Four Limited) to purchase
700 MW of Wind Solar Hybrid Renewable Power at H3.24 per unit
b) AEML has entered into a Power Purchase Agreement for procurement of Power 500 MW on Medium
term basis, with a group entity (Adani Enterprises Limited) at H5.98 Per Unit.
(C) On 21 August, 2022, RINFRA has filed a Consolidated statement of arbitration claims under the Share
Purchase Agreement. The Management of the Company believes that the said claims are not tenable.
The Management would follow the due process laid out under the Share Purchase Agreement for dispute
resolution and will respond with facts and present its own claims against RINFRA in the arbitration
proceedings.
The Hon’ble Supreme Court, while hearing the case in respect of the issues between Vidarbha Industries
Power Limited (VIPL), RInfra and AEML, had been appraised that both VIPL and RInfra have raised similar
issues before the Hon’ble Supreme Court and Arbitrator respectively. Therefore, the Hon’ble Supreme Court,
considering the submission made by parties, passed a direction vide order dated 22nd November 2022, to
stay the Arbitration Proceedings in view of pendency of the present case.

34 Maharashtra Electricity Regulatory Commission (MERC) in its order dated 26 December 2022, subject to
certain conditions and based on certain valuation principles laid down by it, has approved the transfer of
certain assets to AEML SEEPZ Limited (ASL). Based on the principles laid down by MERC, ASL has filed
the Petition for approval of tariff before MERC, wherein ASL had proposed to operationalize its business
from 01 April, 2023. ASL has also filed the Petition for approval of switchover/ changeover protocol (for
shifting of consumers from other Distribution Licensees to ASL and vice versa in SEEPZ area- Case No. 21
of 2023) before MERC. Both the Petitions are pending before MERC and accordingly, assets amounting to
H41.72 crores (WDV H33.23 crores) as on 31 March 2023 are held for transfer and will be transferred upon
operationalization of ASL.

35 Maharashtra Electricity Regulatory Commission (“MERC”) vide its order dated 31st March, 2023, has approved
the Truing -up of Annual Revenue Requirement (ARR) for FY 2019-20 to FY 2021-22, Provisional Truing -up of
ARR for FY 2022-23 and ARR and Tariff for the period from 2023-24 to 2024-25 for Generation, Transmission
and Distribution Business of the Company (MYT Order). Consequent to the above order, the Company has
recognised net income of H242.76 Crores {Generation & Distribution business Combined H214.81 Crores and
Transmisson Business H27.95 Crores} during the quarter and for the year ended 31st March, 2023.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 201

Notes to Financial Statements for the year ended on 31 st

March, 2023

36 Transaction with Struck Off Companies

Name of the struck off company Nature of Balance Relation with
transactions outstanding the struck off
with struck company, if any,
off company to be disclosed
As at 31st March, 2023
Payables
Saptagiri Electrical Engineering Purchase of 0.02 Vendor
Service
Inavit Engineering & Consulting Pvt Purchase of 0.01 Vendor
Service
Sanjyot Laser Pvt Ltd Purchase of 0.01 Vendor
Service
Receivables
Shree Sai Seva Kripa Sra Socaiety Ltd Sale of Power 0.01 Consumer
Shanti Sagar Realty India Private Ltd Sale of Power 0.01 Consumer
N R Enterprises Ltd Sale of Power 0.01 Consumer
Parekh Bldg Dev P Ltd Sale of Power 0.01 Consumer
Comet Plast Machinery P Ltd Sale of Power 0.01 Consumer
Others - 797 Parties < 50K Sale of Power 0.15 Consumer
As at 31st March, 2022
Payables
Silent Sentinels Electrical Consultant Pvt Ltd Purchase of 0.01 Vendor
Service
Receivables
M S Gem Printers Pvt Ltd Sale of Power 0.13 Consumer
B B Consulting N Eng Pvt Ltd Sale of Power 0.01 Consumer
Uday Real Tdrs Pvt.Ltd Sale of Power 0.01 Consumer
Unilink Tel Services (I) Pvt. Ltd. Sale of Power 0.02 Consumer
Flex Foot Wear India Pvt. Ltd. Sale of Power 0.01 Consumer
Kool Dring & Pack Private Limited Sale of Power 0.02 Consumer
SSV Developeres & Indian Holiday Resort Private Limited Sale of Power 0.10 Consumer
Others - 361 Parties < 50K Sale of Power 0.09 Consumer

37 During the quarter ended 31st March 2023, a short seller report was published in which certain allegations
were made involving Adani Group Companies, including Adani Transmission Limited (“”ATL””) and its
subsidiaries. A writ petition was filed in the matter with the Hon’ble Supreme Court (“”SC””), and during
hearing the Securities and Exchange Board of India (“”SEBI””) has represented to the SC that it is investigating
the allegations made in the short seller report for any violations of the various SEBI Regulations. The SC
had constituted an expert committee for assessment of the extant of regulatory framework and volatility
assessment on Adani stocks, as also to investigate whether there have been contraventions and regulatory
failures on minimum shareholding and related party transactions pertaining to Adani group. The expert
committee, post the reporting date, issued its report on the given remit, wherein no regulatory failures are
observed, while SEBI continues its investigations.
Separately, to uphold the principles of good governance, Adani Group has undertaken review of transactions
(including those for ATL and its subsidiaries) with parties referred in the short seller’s report including
relationships amongst other matters and obtained opinions from independent law firms. These opinions
confirm that ATL and its subsidiaries are in compliance with the requirements of applicable laws and
regulations. Considering the matter is subjudice at Supreme Court, no additional action is considered
prolific and pending outcome of the investigations as mentioned above, the financial results do not carry
any adjustments.
 ADANI ELECTRICITY MUMBAI LIMITED
202 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure

As per the Ind AS 24, disclosure of transactions with related parties, are given below:
Name of related parties & description of relationship
(A) Ultimate Holding Entity S. B. Adani Family Trust (SBAFT)
(B) Holding Company Adani Transmission Limited
(C) Subsidiary Company Adani Electricity Mumbai Infra Limited
AEML SEEPZ Limited
(D) Key Management Personnel: Mr. Kandarp Patel, Managing Director & CEO
Mr. Kunjal Mehta, Chief Financial Officer (w.e.f. 02.05.2022)
Mr. Rakesh Tiwary, Chief Financial Officer (upto 31.03.2022)
Mr. Jaldhi Shukla, Company Secretary
Mr. Anil Sardana, Director
Mr. Sagar Adani , Director
Mr. K Jairaj, Independent Director
Ms. Chitra Bhatnagar, Independent Director (upto 27.10.2021)
Ms. Chandra Iyengar (w.e.f 27.10.2021)
Mr.Quinton Choi, Non Executive Director
Mr. Kenneth McLaren, Non Executive Director
(E) Entity having significant influence Qatar Holding LLC
(F) Enterprises over which (A) or (B) or (D) or (E) above have significant influence :
(where transactions have taken place during the year and previous year / balance outstanding)
Adani Power Limited
Adani Enterprises Limited
Adani Properties Private Limited
Karnavati Aviation Private Limited
Adani Power (Mundra) Limited (amalgamated in to Adani Power
Limited w.e.f. 8 February 2023)
Adani Green Energy Limited
Mundra Solar Pv Limited
Sunbourne Developers Private Limited
Adani Institute For Education & Research
Adani Electricity Navi Mumbai Limited
Maharashtra Eastern Grid Power Transmission Co. Limited
Power Distribution Services Limited
Adani Power Maharashtra Limited (amalgamated in to Adani
Power Limited w.e.f. 8 February 2023)
Adani Total Gas Limited
Adani Hybrid Energy Jaisalmer Four Limited
Adani Foundation
Adani Hospitals Mundra Private Limited
Mumbai International Airport Limited (w.e.f 13.07.2021)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 203

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.)

Name of related parties & description of relationship
Adani Transmission (India) Limited
Superheights Infraspace Private Limited
Adani Power Rajasthan Limited (amalgamated in to Adani Power
Limited w.e.f. 8 February 2023)
Ahmedabad International Airport Limited
Mangaluru International Airport Limited
Adani Ports And Special Economic Zone Limited
Valuable Properties Private Limited
Adani Krishnapatnam Port Limited
Adani Petronet (Dahej) Port Limited
Adani Airport Holdings Limited
Ambuja Cements Limited
Guwahati International Airport Limited
PLR Systems Private Limited
Mundra Petrochem Limited
Dighi Port Limited
Adani New Industries Limited
Adani Sportsline Private Limited
SBSR Power Cleantech Eleven Private Limited
Adani Renewable Energy Holdiing Twelve Limited
Alpha Design Technologies Private Limited
Belvedere Gold and Country Club Private Limited
(G) Employee Benefits Funds : AEML Gratuity Fund
AEML Superannuation Fund

( H in Crores)
Nature of Transaction Name of Related Party For the year ended For the year ended
31st March,2023 31st March,2022
Inter Corporate Deposit (ICD) Adani Properties Private Limited 1,000.00 -
Given AEML SEEPZ Limited 43.10 -
Inter Corporate Deposit (ICD) Adani Properties Private Limited 2,040.00 -
Received Back AEML SEEPZ Limited 42.82 -
Interest expenses on Qatar Holding LLC 147.14 134.47
Shareholders Affiliated
Debts
Interest Income on ICD Adani Properties Private Limited 104.73 114.40
(Loans)
Contribution to Employee AEML Gratuity Fund 0.98 1.08
Benefits AEML Superannuation Fund 7.71 7.76
 ADANI ELECTRICITY MUMBAI LIMITED
204 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the year ended For the year ended
31st March,2023 31st March,2022
Purchase of Services Karnavati Aviation Private 9.00 9.00
Limited
Adani Power (Mundra) Limited 0.00 -
Adani Enterprises Limited 85.73 86.02
Power Distribution Services 15.00 15.00
Limited
Adani Petronet (Dahej) Port 4.04 -
Limited
Mundra Solar Pv Limited 0.01 0.00
Alpha Design Technologies 3.54 -
Private Limited
Belvedere Gold and Country Club 0.01 -
Private Limited
Adani Hospitals Mundra Private 0.04 0.90
Limited
Services Given Adani Institute For Education & 0.07
Research
Sale of Goods Adani Transmission (India) - 0.01
Limited
Employee advance Adani Airport Holdings Limited 0.62 -
transferred Out
Employees benefits Adani Enterprises Limited 0.11 -
Received Adani Ports And Special 0.24 -
Economic Zone Limited
Adani Total Gas Limited - 0.02
Employees benefits Adani Electricity Mumbai Infra 6.55 -
Transferred Limited
Adani Airport Holdings Limited 0.44 -
Adani Enterprises Limited 0.13 0.02
Adani Power Rajasthan Limited - 0.01
Ahmedabad International Airport 0.02 0.10
Limited
Mangaluru International Airport - 0.03
Limited
Adani Ports And Special - 0.01
Economic Zone Limited
Adani Krishnapatnam Port 0.43 -
Limited
Valuable Properties Private - 0.03
Limited
Adani Green Energy Limited 0.18 0.01
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 205

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the year ended For the year ended
31st March,2023 31st March,2022
Adani Power (Mundra) Limited - 0.01
Mumbai International Airport 0.50 0.34
Limited
Adani Krishnapatnam Port - 0.22
Limited
Maharashtra Eastern Grid Power - 0.04
Transmission Co. Limited
Ambuja Cements Limited 0.90 -
Adani Power Maharashtra 0.01 -
Limited
Guwahati International Airport 0.05 -
Limited
Adani Petronet (Dahej) Port 0.01 -
Limited
PLR Systems Private Limited 0.03 -
Mundra Petrochem Limited 0.11 -
Dighi Port Limited 0.01 -
Adani New Industries Limited 0.05 -
Adani Sportsline Private Limited 0.09 -
Adani Power Limited - 0.27
Advance - Received Back Adani Electricity Navi Mumbai - 0.05
Limited
Payment made on behalf of Adani Electricity Navi Mumbai 0.05 0.07
Group Companies Limited
Adani Electricity Mumbai Infra 0.23 0.91
Limited
Power Distribution Services 2.58 0.54
Limited
AEML Seepz Limited 0.18 0.05
Payment made on behalf of Adani Electricity Navi Mumbai 0.09 0.08
Group Companies - Recevied Limited
back Adani Electricity Mumbai Infra 0.06 1.32
Limited
Power Distribution Services - 1.21
Limited
Advance paid towards Sunbourne Developers Private - 271.00
Purchase of property - Limited
Received back
Towards acquisition of Superheights Infraspace Private - 510.00
leasehold land Limited
 ADANI ELECTRICITY MUMBAI LIMITED
206 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the year ended For the year ended
31st March,2023 31st March,2022
Advance paid towards Adani Enterprises Limited 1,409.41 1,313.31
Purchase of Power
Advance paid towards Adani Enterprises Limited - 607.22
Purchase of Power-Received
back
Corporate Social Adani Foundation 7.42 6.13
Responsibility Contribution
Interest Income Adani Enterprises Limited 22.69 50.12
Purchase of Coal Adani Enterprises Limited 92.74 -
Sale of Coal Adani Power Rajasthan Limited 3.86 -
Purchase of Power (net of Adani Enterprises Limited 1,971.08 1,284.73
discount, if any) (excluding banking transactions)
SBSR Power Cleantech Eleven 0.62 -
Private Limited
Adani Hybrid Energy Jaisalmer 708.81 93.87
Four Limited
Rent Paid Mumbai International Airport 1.14 1.09
Limited
EMD Deposit Adani Total Gas Limited 0.10 -
Adani Renewable Energy 0.04 -
Holdiing Twelve Limited
Remuneration paid Mr. Kandarp Patel 5.15 4.61
Mr. Rakesh Tiwary - 1.88
Mr. Kunjal Mehta 1.28 -
Employee Loan given Mr. Rakesh Tiwary - 0.50
Sitting Fees Mr. K Jairaj 0.04 0.06
Ms. Chitra Bhatnagar - 0.01
Ms. Chandra Iyengar 0.04 0.02

( H in Crores)
Closing Balance Name of Related Party As at 31st March, As at 31st March,
2023 2022
Balance Payable Mundra Solar Pv Limited 0.10 0.10
Karnavati Aviation Private Limited 6.05 3.00
Power Distribution Services Limited 7.63 13.73
Adani Hybrid Energy Jaisalmer Four 140.89 42.66
Limited
Adani Enterprises Limited 166.91 303.97
Superheights Infraspace Private Limited 79.00 79.00
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 207

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Closing Balance Name of Related Party As at 31 March,
st
As at 31st March,
2023 2022
Mumbai International Airport Limited 0.55 0.34
Ambuja Cements Limited 0.90 -
Adani Power Maharashtra Limited 0.01 -
Guwahati International Airport Limited 0.05 -
Adani Petronet (Dahej) Port Limited 0.01 -
PLR Systems Private Limited 0.03 -
Mundra Petrochem Limited 0.11 -
Dighi Port Limited 0.01 -
Adani New Industries Limited 0.05 -
Adani Renewable Energy Holdiing Twelve 0.04 -
Limited
Adani Sportsline Private Limited 0.09 -
Adani Green Energy Limited 0.18 -
Adani Airport Holdings Limited 0.44 -
Adani Hospitals Mundra Private Limited 0.04 -
SBSR Power Cleantech Eleven Private 0.62 -
Limited
Adani Power Rajasthan Limited - 0.01
Ahmedabad International Airport Limited 0.02 0.10
Mangaluru International Airport Limited - 0.03
Adani Ports And Special Economic Zone - 0.01
Limited
Valuable Properties Private Limited 0.06 0.03
Adani Power (Mundra) Limited 0.03 0.01
Adani Krishnapatnam Port Limited 0.43 0.22
Adani Power Limited - 0.27
Alpha Design Technologies Private 0.40 -
Limited
Adani Total Gas Limited 0.10 -
Maharashtra Eastern Grid Power - 0.04
Transmission Co. Limited

Balance Receivable Adani Green Energy Limited - 0.15

Adani Properties Private Limited* - 1,040.00
Adani Electricity Navi Mumbai Limited 0.00 0.04
Adani Electricity Mumbai Infra Limited 6.78 0.05
AEML SEEPZ Limited 0.51 0.05
Adani Ports And Special Economic Zone 0.23 -
Limited
 ADANI ELECTRICITY MUMBAI LIMITED
208 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Closing Balance Name of Related Party As at 31 March,
st
As at 31st March,
2023 2022
Investment in Equity Adani Electricity Mumbai Infra Limited 0.01 0.01
Shares of Subsidiary AEML SEEPZ Limited 0.01 0.01
Employee Loan Balance Mr. Rakesh Tiwary - 0.62
Receivable
Shareholders Affiliated Qatar Holding LLC 2,317.19 2,137.35
Debt payable
Interest accrued but not Qatar Holding LLC 57.77 53.28
due on Shareholders
Affiliated Debt
* The Company had provided long-term intercorporate deposit at rates comparable to the average commercial
rate of interest.
Note:
All the above transactions are executed at arm’s length basis.
The above disclosure does not include transaction with / as public utility services viz, electricity,
telecommunications etc. in the normal course of business.
Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits
recognised as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are
lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

39 Disclosure under Ind AS 19 “Employee Benefits”:

1 Defined Contribution Plan
(i) Provident fund
(ii) Superannuation fund
(iii) State defined contribution plans
- Employer's contribution to Employees' state insurance
- Employers’ Contribution to Employees’ Pension Scheme 1995
The provident fund and the state defined contribution plan are operated by the Regional Provident Fund
Commissioner and the superannuation fund is administered by the trustees of the AEML Superannuation
Scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll
cost to the retirement benefit schemes to fund the benefits. The Company has no obligation other than
the contribution to the fund.

(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Contribution to Provident Fund 41.50 43.46
Contribution to Employees Superannuation Fund 7.71 7.76
Contribution to Employees Pension Scheme 6.37 6.83
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 209

Notes to Financial Statements for the year ended on 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

2 Defined Benefit Plan
Gratuity
The Company operates a funded gratuity plan in the form of a Trust, governed by Trustees approinted by the
Company and administered by Life Insurance corporation. Every employee is entitled to a benefit equivalent
to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act,
1972 or Company scheme whichever is beneficial. The same is payable at the time of separation from the
Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

Particulars Gratuity Gratuity

for the year ended for the year ended
31st March 2023 31st March 2022
Starting Period 01-Apr-22 01-Apr-21
Date of Reporting 31-Mar-23 31-Mar-22
Principal Assumptions in actuarial valuation
Rate of Discounting 7.44% 6.98%
Rate of Salary Increase 10.25% 10.25%
Rate of Employee Turnover 1.00% 1.00%
Mortality Rate During Employment Indian Assured Lives Indian Assured Lives
Mortality 2012-14 (Urban) Mortality 2012-14 (Urban)

Change in the Present Value of Defined Benefit 31-Mar-23 31-Mar-22

Obligation
Present value of Benefit Obligation at the 682.13 649.75
beginning of the year
Liability Transferred in 0.15 -
Liability Transferred Out (1.38) (1.12)
Interest Cost 47.61 44.57
Current Service Cost 37.19 36.82
Liabilities Extinguished on Settlement (18.16) -
Benefit Paid From the Fund (40.60) (29.57)
Actuarial (Gain) / Losses on Obligation- Due to (22.18) 20.06
Change in Financial Assumptions
Actuarial (Gain) / Losses on Obligation- Due to - 12.79
Change in Demographic Assumptions
Actuarial (Gain) / Losses on Obligation-Due to (28.62) (51.17)
Experience
Present Value of Benefit Obligation at the end 656.14 682.13
of the year
Change in the Fair Value of Plan Assets
Fair Value of Plan Asset at the beginning of the 489.46 485.77
year
Assets Transferred Out/ Divestments (6.55) -
Interest Income 34.16 33.32
Benefit Paid From the Fund (40.60) (29.57)
Contribution by the Employer 0.98 1.09
Return on Plan Assets Excluding Interest Income (2.86) (1.15)
Fair Value of Plan Asset at the end of the year 474.59 489.46
 ADANI ELECTRICITY MUMBAI LIMITED
210 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

Change in the Present Value of Defined Benefit 31-Mar-23 31-Mar-22
Obligation
Amount Recognised in the Balance Sheet
Present Value of Benefit Obligation at the end of 656.14 682.13
the year
Fair Value of Plan Assets at the end of the year 474.59 489.46
Funded Status (Deficit) (181.55) (192.67)
Net (Liability) Recognized in the Balance Sheet (181.55) (192.67)
Provisions
Current 29.07 32.57
Non-Current 152.48 160.10
Expenses Recognized in the Statement of Profit
and Loss
Current Service Cost 37.19 36.82
Net Interest Cost 13.45 11.25
(Gains)/Losses on Curtailments And Settlements (18.16) -
Expenses Recognised 32.48 48.07
Expenses Recognised in Other Comprehensive
Income (OCI)
Actuarial (Gains) / Losses on Obligation for the (50.80) (18.32)
year
Return on Plan Assets Excluding Interest Income 2.86 1.15
Net Income for the year recognised in OCI (47.94) (17.17)
Major Categories of plan assets
Government Securities 80.39% 81.02%
Debt and other Instruments 9.85% 10.71%
Equity Instruments 9.76% 8.27%
Total 100.00% 100.00%
Expected Contribution for next financial year 29.07 32.57
Expected Maturity Analysis of undiscounted
defined Benefit Obligation is as follows
Within one year 107.25 35.07
Between 2 to 5 years 168.88 174.27
Between 6 to 10 years 310.04 366.92
Beyond 10 years 694.76 803.48
The weighted average duration of the defined 10.00 10.00
benefit obligation
Sensitivity Analysis
Projected Benefit Obligation on Current 656.14 682.13
Assumptions
Assumptions – Discount Rate
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % -6.69% -7.91%
increase
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 211

Notes to Financial Statements for the year ended on 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

Change in the Present Value of Defined Benefit 31-Mar-23 31-Mar-22

Obligation
Impact on defined benefit obligation –in H Crores (43.90) (53.93)
Impact on defined benefit obligation –in % 7.62% 9.03%
decrease
Impact on defined benefit obligation –in H Crores 50.02 61.62
Assumptions – Future Salary Increase
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % 7.13% 8.49%
increase
Impact on defined benefit obligation –in H Crores 46.77 57.90
Impact on defined benefit obligation –in % -6.41% -7.60%
decrease
Impact on defined benefit obligation –in H Crores (42.04) (51.83)
Assumptions – Employee Turnover
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % -1.28% -1.72%
increase
Impact on defined benefit obligation –in H Crores (8.37) (11.72)
Impact on defined benefit obligation –in % 1.41% 1.90%
decrease
Impact on defined benefit obligation –in H Crores 9.24 12.96
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting year) has been applied as when calculating the defined benefit liability
recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
to the prior period.

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

Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan
assets underperform this yield, it will result in deficit. These are subject to interest rate risk. To offset the
risk, the plan assets have been deployed in high grade insurer managed funds.

Inflation rate risk:

Higher than expected increase in salary and medical cost will increase the defined benefit obligation.

Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligations
is not straight forward and depends upon the combination of salary increase, discount rate and vesting
criterion.
 ADANI ELECTRICITY MUMBAI LIMITED
212 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

40 Regulatory Deferral Account (H in Crores)

Particulars As at As at
31st March, 2023 31st March, 2022
Regulatory Deferral Account - Liability
Regulatory Liabilities - 271.56
Regulatory Deferral Account - Assets
Regulatory Assets 1,961.73 1,121.92
Net Regulatory Assets/(Liabilities) 1,961.73 850.36
Rate Regulated Activities
1 As per the Ind AS-114 ‘Regulatory Deferral Accounts’, the business of electricity distribution is a Rate
Regulated activity wherein Maharashtra Electricity Regulatory Commission (MERC), the regulator
determines Tariff to be charged from consumers based on prevailing regulations in place.
2 MERC Multi Year Tariff Regulations, 2019 (MYT Regulations), is applicable for the period beginning from 1
April, 2020 to 31st March, 2024. These regulations require MERC to determine tariff in a manner wherein
the Company can recover its fixed and variable costs including assured rate of return on approved equity
base, from its consumers. The Company determines the Revenue, Regulatory Assets and Liabilities as per
the terms and conditions specified in MYT Regulations.
3 Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities is as
follows:
(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
A Opening Regulatory Assets (Net) 850.36 167.89
Add:
B Income recoverable/(reversible) from future tariff / Revenue
Gap for the year
1 For Current Year 772.83 682.47
2 Accrued in respect of earlier year consequent to MERC 338.54 -
MTR Ofder^
Total a ( 1 + 2 ) 1,111.37 682.47
Less:
C Recovered / (refunded) during the year - -
D Net Movement during the year ( C - D ) 1,111.37 682.47
E Closing Balance ( A - E) 1,961.73 850.36
^ Primarily on account of carrying cost
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 213

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments.
1 Fair Value Measurement (H in Crores)
Particulars 31 March, 2023
st
31 March, 2022
st

Book Value Fair Value Book Value Fair Value

Financial Assets
Investment
- Investment in Mutual Fund at 742.91 742.91 - -
FVTPL
- Investment in Tresury Bills at 24.75 24.75 24.84 24.84
FVTPL
- Government Securities 233.61 214.32 204.62 188.31
Trade Receivables 452.27 452.27 485.85 485.85
Loans Given 32.79 32.79 1,075.41 1,075.41
Cash and Cash Equivalents 90.60 90.60 74.41 74.41
Other Balances with Bank 622.45 622.45 624.48 624.48
Derivative instruments designated in 553.37 553.37 165.25 165.25
hedge accounting relationship
Other Financial Assets 1,254.03 1,254.03 1,158.57 1,158.57
Total Financial Assets 4,006.78 3,987.49 3,813.43 3,797.12
Financial Liabilities
Borrowings (Including Interest accrued 13,011.62 10,062.54 11,978.56 11,117.56
& Current Maturities) - Fixed Rate
Borrowings (Including Interest accrued 503.05 503.05 - -
& Current Maturities) - Floating Rate
Lease Liability obligation 30.74 30.74 44.84 44.84
Trade Payables 1,627.50 1,627.50 1,523.17 1,523.17
Derivative instruments designated in 3.71 3.71 123.09 123.09
hedge accounting relationship
Other Financial Liabilities 1,082.68 1,082.68 805.03 805.03
Total Financial Liabilities 16,259.29 13,310.22 14,474.69 13,613.69
Above excludes carrying value of investment in subsidiary accounted at cost in accordance with Ind AS 27.
The management assessed that the fair value of cash and cash equivalents, other balances with bank, trade
receivables, loans, trade payables, other financial assets and liabilities approximate their carrying amounts
largely due to the short term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties. The following methods and assumptions
were used to estimate the fair values.
Fair value of the Govt. securities, mutual funds are based on the price quotations near the reporting date.
The fair value of loans from banks and other financial liabilities, as well as other non-current financial
liabilities is estimated by discounting future cash flow using rates currently available for debt on similar
terms, credit risk and remaining maturities.
The Company enters into derivative financial instruments with various counterparties, principally banks
and financial institutions with investment grade credit ratings. Foreign exchange forward contracts are
valued using valuation techniques, which employs the use of market observable inputs. The most frequently
applied valuation techniques include forward pricing and swap models using present value calculations.
 ADANI ELECTRICITY MUMBAI LIMITED
214 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot
and forward rates, yield curves of the respective currencies, currency basis spreads between the respective
currencies, interest rate curves and forward rate curves of the underlying currency. All derivative contracts
are fully collateralized, thereby, eliminating both counterparty and the company’s own non-performance
risk.

2 The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that
are either observable or unobservable and consists of the following three levels
Level 1 :
Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 :
Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
Level 3 :
Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
(H in Crores)
Particulars Fair Value Hierarchy as at 31st March, 2023
Date of Quoted Significant Significant Total
Valuation prices in observable unobservable
active inputs inputs
markets (Level 2) (Level 3)
(Level 1)
Asset measured at Fair Value
FVTPL financial investments - In 31st March, 2023 742.91 - - 742.91
Mutul Funds
FVTPL financial investments - In 31st March, 2023 24.75 - - 24.75
Tresuary bills
Asset for which Fair Value are
disclosed
Amortised Cost financial investments:
- Government Securities 31st March, 2023 214.32 - - 214.32
Derivative instruments designated in
hedge accounting relationship
Derivative financial assets 31st March, 2023 - 553.37 - 553.37
Total 981.98 553.37 - 1,535.35
Liabilities measured at fair values
Derivative instruments designated in
hedge accounting relationship
Derivative financial Liabilities 31st March, 2023 - 3.71 - 3.71
Liabilities for which fair values are
disclosed
Borrowings (Including Interest 31st March, 2023 7,650.03 2,412.52 - 10,062.54
accrued & Current Maturities) - Fixed
Rate
Borrowings (Including Interest 31st March, 2023 - 503.05 - 503.05
accrued & Current Maturities) -
Floating Rate
Total 7,650.03 2,919.27 - 10,569.30
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 215

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

(H in Crores)
Particulars Fair Value Hierarchy as at 31st March, 2022
Date of Quoted Significant Significant Total
Valuation prices in observable unobservable
active inputs inputs
markets (Level 2) (Level 3)
(Level 1)
Asset measured at Fair Value
FVTPL financial investments - In 31st March, 2022 24.84 - - 24.84
Treasury Bills
Asset for which Fair Value are
disclosed
Amortised Cost financial
investments:
- Government Securities 31st March, 2022 188.31 - - 188.31
Derivative instruments
designated in hedge accounting
relationship
Derivative financial assets 31st March, 2022 - 165.25 - 165.25
Total 213.15 165.25 - 378.40
Liabilities measured at fair values
Derivative instruments
designated in hedge accounting
relationship
Derivative financial Liabilities 31st March, 2022 - 123.09 - 123.09
Liabilities for which fair values
are disclosed
Borrowings (Including Interest 31st March, 2022 8,897.51 2,220.05 - 11,117.56
accrued & Current Maturities) -
Fixed Rate
Borrowings (Including Interest 31st March, 2022 - - - -
accrued & Current Maturities) -
Floating Rate
Total 8,897.51 2,220.05 - 11,117.56

There has been no transfer between level 1 and level 2 during the period

3 Capital Management & Gearing Ratio

The Company manages its capital structure in a manner to ensure that it will be able to continue as a going
concern while optimising the return to stakeholders through the appropriate debt and equity balance. The
Company’s capital structure is represented by equity (comprising issued capital, retained earnings and
other reserves) and debt. The Company’s management reviews the capital structure of the Company on an
annual basis. As part of this review, the management considers the cost of capital and the risks associated
with each class of capital. The Company’s objective is to ensure that the gearing ratio (debt equity ratio) is
around 70 : 30
 ADANI ELECTRICITY MUMBAI LIMITED
216 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

Gearing ratio
The gearing ratio at the end of the reporting period was as follows : (H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Debt 13,514.66 11,978.56
Less : Cash & Bank Balance 1,321.79 1,215.23
Net debt 12,192.87 10,763.33
Total Capital 4,716.06 4,694.81
Capital & net debt 16,908.93 15,458.14
Net debt to Total Capital plus net debt ratio (%)^ 72% 70%
^ Net debt to Total Capital plus net debt ratio (%) excluding fair valuation of foreign loan amounting to
H1,663.10 crores (31st March, 2022 H624.17 crores) is 69% (31st March, 2022 68%)
(i) Debt is defined as Non-current borrowings at fair value (including current maturities) and Current
borrowings.
(ii) Equity is defined as Equity share capital and other equity including reserves and surplus.
In order to achieve this overall objective, the Company’s capital management, amongst other things,
aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings
that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no significant breaches in the
financial covenants of any interest-bearing loans and borrowing in the current year.

4 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade
and other payables. The main purpose of these financial liabilities is to finance the Company’s operations/
projects The Company’s principal financial assets include loans, investment including mutual funds, trade
and other receivables, and cash and cash equivalents which is derived from its operations.
In the ordinary course of business, the Company is mainly exposed to risks resulting from exchange rate
fluctuation (currency risk), interest rate movements (interest rate risk) collectively referred as Market Risk,
Credit Risk and Liquidity Risk. The Company’s senior management oversees the management of these
risks. It manages its exposure to these risks through the use of derivative financial instruments for hedging
transactions. It uses derivative instruments such as Cross Currency Swaps, Full Currency swaps, Interest rate
swaps and foreign currency Future Option contracts to manage these risks. These derivative instruments
reduce the impact of both favorable and unfavorable fluctuations.
The Company’s risk management activities are subject to the management, direction and control of Central
Treasury team of the Company under the framework of Risk Management Policy for Currency and Interest
rate risk, as approved by the Board of Directors of the Company. The Company’s Central Treasury team
ensures appropriate financial risk governance framework for the Company through appropriate policies &
procedures and financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes
is undertaken.
The decision of whether and when to execute derivative financial instruments along with its tenure can
vary from period to period depending on market conditions and the relative costs of the instruments. The
tenure is linked to the timing of the underlying exposure, with the connection between the two being
regularly monitored. All derivative contracts are executed with counterparties that are creditworthy. The
outstanding derivatives are reviewed periodically to ensure that there is no inappropriate concentration of
outstanding to any particular counterparty.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 217

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

A. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: interest rate risk, and
currency risk. Financial instruments affected by market risk include loans and borrowings. The sensitivity
analysis in interest rate and foreign currency risk sections relate to the position as at March 31, 2022
and March 31, 2023.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed
to floating interest rates of the debt and derivatives and the proportion of financial instruments in
foreign currencies are all constant as at March 31, 2022 and March 31, 2023.
I. Foreign currency risk
The Company is exposed to foreign currency risks arising from its exposure to the USD.Foreign
currency risks arise from future commercial transactions and recognized assets and liabilities,
when they are denominated in a currency other than Indian Rupee. Exposures on foreign currency
loans are managed through the Company wide hedging policy, which is reviewed periodically to
ensure that the results from fluctuating currency exchange rates are appropriately managed. The
Company’s exposure with regards to foreign currency risk is given below.
The following table shows foreign currency exposures in US Dollar on financial instruments at the
end of the reporting period
(Refer Note 41 (5))
Foreign Currency Exposures
Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign Currency H crore Foreign Currency H crore
(In Millions) (In Millions)
In USD
(i) Interest accrued but not 14.63 120.20 14.66 111.12
due
(ii) Import Creditors and 0.73 5.99 14.38 108.99
Acceptances
(iii) Bond 1,000.00 8,217.00 1,000.00 7,579.25
(iv) Bond - Sustainability 300.00 2,465.10 300.00 2,273.78
Linked Notes
(v) Shareholders Affiliated 282.00 2,317.19 282.00 2,137.35
Debts
Derivatives
- Call Options - - (582.00) (4,411.12)
- Cross Currency Swaps (982.00) (8,069.09) (400.00) (3,031.70)
- Forward coupon (2.00) (16.43) (2.26) (17.13)
- Forward principal - - (300.00) (2,273.78)
- Coupon Only Swaps (12.63) (103.78) (5.38) (40.78)
- Principal Only Swaps (600.00) (4,930.20) (300.00) (2,273.78)
 ADANI ELECTRICITY MUMBAI LIMITED
218 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

Foreign Currency Exposures
Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign Currency H crore Foreign Currency H crore
(In Millions) (In Millions)
Total 0.73 5.98 21.40 162.20
In Euro
(i) Import Creditors and 0.03 0.30 0.01 0.09
Acceptances
Total 0.03 0.30 0.01 0.09
Note : During the previous year, the Company had executed 4 year cross currency swaps derivative
contract of USD 300 million to hedge outstanding Sustainibility linked bond of USD 300 million
which became effective from 22 July 2022 and accordingly, was not included in above figures as at
31 March 2022.
(i) Foreign currency sensitivity analysis
The following tables demonstrate the sensitivity to a reasonably possible change in USD
exchange rates, with all other variables held constant on the Company’s profit before tax and
pre-tax equity is as under:
H in crores
Effect on profit before tax and consequential
impact on Equity
As at 31st March, 2023 As at 31st March, 2022
Appreciate Depreciate Appreciate Depreciate
Rupee appreciate / (depreciate) by 0.07 (0.07) 2.14 (2.14)
H1 against USD / EURO
Rupee appreciate / (depreciate) by 0.16 (0.16) 4.28 (4.28)
H2 against USD / EURO
Rupee appreciate / (depreciate) by 0.23 (0.23) 6.42 (6.42)
H3 against USD / EURO
Notes: 1) +/- Gain/Loss
II. Interest rate risk management
The Company is exposed to interest rate risk on short-term and medium-term floating rate
borrowings and on the refinancing of fixed rate debt. The Company’s policy is to borrow long term
debt with fixed interest rate The short term borrowings of the Company are mainly floating rate
rupee denominated working capital borrowings.
The long-term borrowings of the Company are by way of Senior Secured Notes (SSN) and
Shareholder’s Affiliated Debts which carry fixed rate of interest till maturity. Further during the
previous year the Company issued the Sustainability Linked Bond (SLB) of USD 300 million through
10-year notes on July 15, 2021 under USD 2 billion Global Medium-Term Notes program (GMTN)
which carry fixed rate of interest till maturity with certain Sustainability Performance Targets
(SPTs), non-attainment of which will result in increase in fixed rate of interest by 0.15 per cent p.a,
for SPT 1 in March 2027 and further 0.15 per cent p.a. for SPT 2 for March 2029.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 219

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

(i) Interest rate sensitivity:
The sensitivity analysis below has been determined based on average outstanding exposure of
borrowings during the year that have floating interest rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were
held constant, the effect on Interest expense for the respective financial years and consequent
effect on Company’s profit in that financial year would have been as below:
H in crores
As at 31 March, 2023
st
As at 31 March, 2022
st

50 bps 50 bps 50 bps 50 bps

increase decrease increase decrease
Interest expense on loan 5.11 (5.11) 4.60 (4.60)
Effect on profit / (loss) before tax (5.11) 5.11 (4.60) 4.60

B. Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables and other financial assets) and from its financing activities,
including loans to others, deposits with banks, financial institutions & others, foreign exchange
transactions and other financial assets.
Customer credit risk is managed by the Company’s established policy, procedures and control relating
to customer credit risk defined in accordance with this assessment.
Credit risk on cash and bank balances is limited as the Company generally invests in deposits with banks
with high credit ratings assigned by international and domestic credit rating agencies. Investments
primarily include investment in liquid mutual fund units and quoted bonds issued by government.
Counterparty credit limits are reviewed by the Company’s management on a regular basis. The limits are
set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s
potential failure to make payments.
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
Trade receivables 452.27 485.85
Loans 32.79 1,075.41
Other financial assets 1,807.40 1,323.82
Total 2,292.46 2,885.08
Refer Note 12 for credit risk and other information in respect of trade receivables. Moreover, given the
diverse nature of the consumer profile of the Company, trade receivables are spread over a number of
customers with no significant concentration of credit risk. No single customer accounted for 10.0% or
more of revenue basis in any of the years presented. The history of trade receivables shows a negligible
provision for bad and doubtful debts compared to the volume/value of sales recorded. Other receivables
as stated above are due from the parties / banks under normal course of the business having sound
credit worthiness. and as such the Company believes exposure to credit risk to be minimal.
The Company has not acquired any credit impaired asset.

C. Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset.
Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value The
 ADANI ELECTRICITY MUMBAI LIMITED
220 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company’s exposure to
liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities The
Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents The
Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to
meet all its normal operating commitments in a timely and cost-effective manner.

Contractual Maturities of Financial liabilities (H in Crores)

Less than 1 to 5 More than Total
1 year years 5 years
As at 31st March, 2023
Borrowings** 1,200.25 2,296.83 14,246.70 17,743.78
Trade Payables 1,594.74 - 32.76 1,627.50
Lease Liabilities 16.27 11.92 2.55 30.74
Other Financial Liabilities 1,082.68 3.71 - 1,086.39
Total 3,893.94 2,312.46 14,282.01 20,488.41
As at 31st March, 2022
Borrowings** 637.18 2,093.10 13,625.30 16,355.58
Trade Payables 1,490.95 - 32.22 1,523.17
Lease Liabilities 18.59 22.75 3.50 44.84
Other Financial Liabilities 862.10 66.02 - 928.12
Total 3,008.82 2,181.87 13,661.02 18,851.71
** The table has been drawn up based on the undiscounted contractual maturities of the financial
liabilities including interest that will be paid on those liabilities upto the maturity of the instruments,
ignoring the call and refinancing options available with the Company. The amounts included above for
variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable
interest rates differ to those estimates of interest rates determined at the end of the reporting period.

5 Derivative Financial Instrument

The Company uses derivatives instruments as part of its management of risks relating to exposure to
fluctuation in foreign currency exchange rates and interest rates. The Company does not acquire derivative
financial instruments for trading or speculative purposes neither does it enter into complex derivative
transactions to manage the above risks. The derivative transactions are normally in the form of forward
currency contracts, cross currency swaps, options and interest rate swaps to hedge its foreign currency
risks and interest rate risks, respectively and are subject to the Company’s guidelines and policies.
The fair values of all derivatives are separately recorded in the balance sheet within current and non current
assets and liabilities. Derivative that are designated as hedges are classified as current or non current
depending on the maturity of the derivative.
The use of derivative can give rise to credit and market risk. The Company tries to control credit risk as far
as possible by only entering into contracts with stipulated / reputed banks and financial institutions. The
use of derivative instrument is subject to limits, authorities and regular monitoring by appropriate levels
of management. The limits, authorities and monitoring systems are periodically reviewed by management
and the Board. The market risk on derivative is mitigated by changes in the valuation of underlying assets,
liabilities or transactions, as derivatives are used only for risk management purpose.
The Company enters into derivative financial instruments, such as forward currency contracts, cross
currency swaps, options, interest rate futures and interest rate swaps for hedging the liabilities incurred/
recorded and accounts for them as cash flow hedges and states them at fair value. The effective portion of
the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any
ineffective portion is recognised immediately in the statement of profit and loss. Amounts recognised in OCI
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 221

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged
financial income or financial expense is recognised or when a forecast sale occurs. These hedges have been
effective for the year ended Mach 31, 2023 and March 31, 2022.
The fair value of the Company’s derivative positions recorded under derivative financial assets and
derivative financial liabilities are as follows :-

H in crores
As at 31 March, 2023
st
As at 31 March, 2022
st

Assets Liabilities Assets Liabilities

Current
Cashflow hedge*
- Call Options - - 58.10 68.76
- Cross Currency Swaps 367.96 3.60 47.39 21.74
- Forward - 0.11 - 32.59
- Coupon Only Swaps 14.45 - (5.79) -
- Principal Only Swaps 170.96 - 65.55 -
Total 553.37 3.71 165.25 123.09
* Refer statement of profit and loss and statement of changes in equity for the changes in the fair value of
cashflow hedges
Derivative Contracts entered into by the company and outstanding as at Balance Sheet date :
To hedge Currency risks and interest related risks, the company has entered into various derivative Contracts.
The category wise break-up of the amount outstanding as at Balance Sheet date is given below :-
Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign H crore Purpose Foreign H crore Purpose
Currency Currency
(In Millions) (In Millions)
In USD
- Call - - 582.00 4,411.12 Hedging of
Options foreign currency
borrowing
principal
- Cross 982.00 8,069.09 Hedging of foreign 700.00 5,305.48 Hedging of
Currency currency borrowing foreign currency
Swaps* principal & interest borrowing
liability principal &
interest liability
- Forward 2.00 16.43 Hedging of foreign 305.80 2,317.73 Hedging of
currency borrowing foreign currency
interest liability borrowing
principal &
interest liability
- Coupon 600.00 4,930.20 Hedging of foreign 600.00 4,547.55 Hedging of
Only currency borrowing foreign currency
Swaps interest liability borrowing
interest liability
 ADANI ELECTRICITY MUMBAI LIMITED
222 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

41 Financial Instruments. (Contd.)

Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign H crore Purpose Foreign H crore Purpose
Currency Currency
(In Millions) (In Millions)
- Principal 600.00 4,930.20 Hedging of foreign 300.00 2,273.78 Hedging of
Only currency borrowing foreign currency
Swaps principal liability borrowing
principal liability
Total 2,184.00 17,945.92 2,487.80 18,855.66
* During the previous year, the Company had executed 4 year cross currency swaps derivative contract
of USD 300 million to hedge outstanding Sustainibility linked bond of USD 300 million which became
effective from 22 July 2022 and accordingly, was not included in above figures as at 31 March 2022.

42 Ratios
Name of Particulars Numerator / As at 31st As at 31st % change Remarks
Ratio Denominator March, 2023 March, 2022 in Ratio
considered
Current Ratio Ratio 0.93 0.77 21%
Numerator a. Inventories 3,451.99 2,190.62
b. Current Investments
c. Trade Receivables &
Unbilled Revenue
d. Cash and Bank
balances
e. Current Loansf.
Security Deposit
g. Other Financial
Assets
h. Other Current Assets
i. Regulatory Deferral
Accounts - Assets "
Denominator a. Current Borrowings 3,717.68 2,843.18
(Including Current
Maturities of Long
term borrowing)
b. Trade Payables
c. Other Financial
Liabilities
d. Current Provision
e. Other Current
Liabilities
f. Lease Liability
g. Current tax liability
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 223

Notes to Financial Statements for the year ended on 31 st

March, 2023

42 Ratios (Contd.)
Name of Particulars Numerator / As at 31st As at 31st % change Remarks
Ratio Denominator March, 2023 March, 2022 in Ratio
considered
Debt- Equity Ratio 2.84 2.53 12%
Ratio
Numerator Borrowings (Current & 13,388.62 11,864.65
Non Current) (Including
Current Maturities of
Long term borrowing)
Denominator a. Equity Share Capital 4,716.06 4,694.81
b. Other Equity
Debt Service Ratio 1.64 1.70 -3%
Coverage
Numerator Profit after Tax before 2,272.06 1,934.12
Ratio
exceptional items,
taxes, Depreciation and
Amortisation Expenses
and Finance Costs
(EBIDTA )
Denominator a. Interest on Loan and 1,381.41 1,138.31
Lease Payments
b. Current Maturities
of Long term loan
(Installments)
Return on Ratio 0.02 0.03 -22% Due to
Equity Ratio increase in
Numerator Profit for the year 95.2 122.2
finace cost
after tax before Other
as a result
Comprehensive Income /
of increase
Expenses
in debt in
Denominator a. Equity Share Capital 4,705.44 4,702.58 Current year
b. Other Equity and Increase
in deferred
tax assets
in previous
year
Inventory Ratio 12.62 6.87 84% Due to
Turnover increase
Numerator a. Cost of fuel 1,387.77 1,066.75
Ratio in fuel
b. Purchase of Traded consumption
Goods for increased
Denominator Average Traded 110.01 155.18 generation
Inventories excluding and decrease
stores inventories in average
inventory of
fuel.
 ADANI ELECTRICITY MUMBAI LIMITED
224 ANNUAL REPORT 2022-23

Notes to Financial Statements for the year ended on 31 st

March, 2023

42 Ratios (Contd.)
Name of Particulars Numerator / As at 31st As at 31st % change Remarks
Ratio Denominator March, 2023 March, 2022 in Ratio
considered
Trade Ratio 8.15 6.68 22%
Receivables
Numerator a. Income from 8,327.84 6,892.50
turnover ratio
Sale of Power
and Transmission
Charges
b. Sale of Coal Rejects
/ Fly Ash
c. Street Light
Maintenance
Charges
d. Income in respect of
Services rendered
e. Sale of Traded
Goods
f. Misc. Revenue
Denominator Average Trade 1,021.62 1,031.29
receivables (including
Unbilled revenue)
Trade Ratio 4.96 4.51 10%
payables
Numerator a. Cost Of Power 6,469.09 5,119.30
turnover ratio
Purchased
b. Cost of Fuel
c. Transmission
Charges
d. Purchases of traded
goods
e. Other Expenses
Denominator Average Trade payables 1,305.42 1,134.29
(excluding provision for
salary, wages and bonus
provision)
Net capital Ratio -9.06 -10.59 -14%
turnover ratio
Numerator Total Revenue from 8,360.96 6,908.94
Operation
Denominator Working Capital (current (923.18) (652.56)
assets minus current
liabilities)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 225

Notes to Financial Statements for the year ended on 31 st

March, 2023

42 Ratios (Contd.)
Name of Particulars Numerator / As at 31st As at 31st % change Remarks
Ratio Denominator March, 2023 March, 2022 in Ratio
considered
Net profit Ratio 0.01 0.02 -36% Due to
ratio increase in
Numerator Profit for the year 95.18 122.16
finace cost
after tax before Other
as a result of
Comprehensive Income /
increase in
Expenses
forex loss in
Denominator Total Revenue from 8,360.96 6,908.94 Current year,
Operation
Return on Ratio 0.09 0.09 4%
Capital
Numerator Profit before tax and 1,637.90 1,431.50
employed
Interest expenses
Denominator "a. Networth 18,365.29 16,738.81
b.Total Debt
c.Deffered tax Liability"
Return on Ratio 0.07 0.09 -22%
investment
Numerator Income From 217.70 235.67
Investments,
Intercorporate deposits,
Bank Deposits
Denominator Average Investments 3,111.67 2,632.58
(including Intercorporate
deposits, Bank Deposits)

43 The chief operating decision maker evaluates the Company’s performance and applies the resources to
whole of the Company business viz. “Generation, Transmission and Distribution of Power” as an integrated
utility. Hence the Company does not have any reportable segment as per lnd AS- 108 “Operating Segments”

44 Significant Events after the Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the
events disclosed in the relevant notes.

As per our attached report of even date

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad

Date: 26th May, 2023 Date: 26th May, 2023
 ADANI ELECTRICITY MUMBAI LIMITED
226 ANNUAL REPORT 2022-23

Independent Auditor’s Report

To The Members of Adani Electricity Mumbai Limited

Report on the Audit of the Consolidated to have an independent external examination of

Financial Statements these allegations because of their evaluation and
the ongoing investigation by the Securities and
Qualified Opinion Exchange Board of India as directed by the Hon’ble
Supreme Court. The evaluation performed by the
We have audited the accompanying consolidated
Group, as stated in Note 37 of the consolidated
financial statements of Adani Electricity Mumbai
financial statements, does not constitute sufficient
Limited (“the Holding Company”) and its subsidiaries,
appropriate audit evidence for the purposes of our
(the Holding Company and its subsidiaries together
audit. In the absence of an independent external
referred to as “the Group”), which comprise the
examination by the Group and pending completion
Consolidated Balance Sheet as at 31st March, 2023,
of investigation, including matters referred to in the
and the Consolidated Statement of Profit and
Report of the Expert Committee constituted by the
Loss (including Other Comprehensive Income), the
Hon’ble Supreme Court of India as described in Note
Consolidated Statement of Cash Flows and the
37 to the consolidated financial statements, by the
Consolidated Statement of Changes in Equity for
Securities and Exchange Board of India, we are unable
the year then ended, and a summary of significant
to comment on whether these transactions or any
accounting policies and other explanatory
other transactions may result in possible adjustments
information.
and/or disclosures in these financial statements in
In our opinion and to the best of our information and respect of related parties, and whether the Group
according to the explanations given to us and based should have complied with the applicable laws and
on the consideration of reports of the other auditor regulations.
on separate financial statements of a subsidiary
We conducted our audit of the consolidated financial
referred to in the Other Matters section below, except
statements in accordance with the Standards on
for the possible effects of the matter described in
Auditing (SAs) specified under section 143(10) of the
the Basis for Qualified Opinion section below, the
Act. Our responsibilities under those Standards are
aforesaid consolidated financial statements give the
further described in the Auditor’s Responsibility for
information required by the Companies Act, 2013 (“the
the Audit of the Consolidated Financial Statements
Act”) in the manner so required and give a true and
section of our report. We are independent of the
fair view in conformity with the Indian Accounting
Group in accordance with the Code of Ethics issued
Standards prescribed under section 133 of the
by the Institute of Chartered Accountants of India
Act read with the Companies (Indian Accounting
(ICAI) together with the ethical requirements that
Standards) Rules, 2015, as amended, (“Ind AS”) and
are relevant to our audit of the consolidated financial
other accounting principles generally accepted in
statements under the provisions of the Act and the
India, of the consolidated state of affairs of the Group
Rules made thereunder and we have fulfilled our
as at 31st March, 2023, and their consolidated profit,
other ethical responsibilities in accordance with these
their consolidated total comprehensive income,
requirements and the ICAI’s Code of Ethics. Except
their consolidated cash flows and their consolidated
for the matter described in the Basis for Qualified
changes in equity for the year ended on that date.
Opinion section above, we believe that the audit
evidence obtained by us and other auditor in terms
Basis for Qualified Opinion of their reports referred to in the sub-paragraphs (a)
The Group had purchase transactions with certain of the Other Matters section below, is sufficient and
parties including those identified in the allegations appropriate to provide a basis for our qualified opinion
made in the Short Seller Report. The Group has on the consolidated financial statements.
represented to us that there is no effect of the
allegations made in the Short Seller Report on these Information Other than the Financial
financial statements based on their evaluation and Statements and Auditor’s Report Thereon
after consideration of a memorandum prepared
by an external law firm on the responses to the • The Holding Company’s Board of Directors is
allegations in the Short Seller Report issued by the responsible for the other information. The other
Adani Group. The Group did not consider it necessary information comprises the information included
in the Directors’ report, but does not include the
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 227

consolidated financial statements, standalone and fair view of the consolidated financial position,
financial statements and our auditor’s report consolidated financial performance including other
thereon. comprehensive income, consolidated cash flows
and consolidated changes in equity of the Group in
• Our opinion on the consolidated financial
accordance with the Ind AS and other accounting
statements does not cover the other information
principles generally accepted in India. The respective
and we do not express any form of assurance
Board of Directors of the companies included in
conclusion thereon.
the Group are responsible for maintenance of
• In connection with our audit of the consolidated adequate accounting records in accordance with the
financial statements, our responsibility is to read provisions of the Act for safeguarding the assets of
the other information compare with the financial the Group and for preventing and detecting frauds
statements of the subsidiary audited by the and other irregularities; selection and application of
other auditor, to the extent it relates to these appropriate accounting policies; making judgments
entities and, in doing so, place reliance on the and estimates that are reasonable and prudent;
work of the other auditor and consider whether and design, implementation and maintenance of
the other information is materially inconsistent adequate internal financial controls, that were
with the consolidated financial statements or operating effectively for ensuring the accuracy and
our knowledge obtained during the course of completeness of the accounting records, relevant
our audit or otherwise appears to be materially to the preparation and presentation of the financial
misstated. Other information so far as it relates statements that give a true and fair view and are free
to the subsidiary, is traced from their financial from material misstatement, whether due to fraud
statements audited by the other auditor. or error, which have been used for the purpose of
preparation of the consolidated financial statements
• If, based on the work we have performed, we
by the Directors of the Holding Company, as aforesaid.
conclude that there is a material misstatement
of this other information, we are required to In preparing the consolidated financial statements,
report that fact. As described in the Basis for the respective Management of the companies
Qualified Opinion section above, in the absence included in the Group are responsible for assessing
of an independent external examination by the ability of the respective entities to continue as
the Company and pending completion of a going concern, disclosing, as applicable, matters
investigation, including matters referred to in the related to going concern and using the going concern
Report of the Expert Committee constituted by basis of accounting unless the respective Board of
the Hon’ble Supreme Court of India as described Directors either intends to liquidate their respective
in Note 37 to the standalone financial statements, entities or to cease operations, or has no realistic
by the Securities and Exchange Board of India, we alternative but to do so.
are unable to comment on whether transaction
The respective Board of Directors of the companies
stated in Basis for Qualified Opinion section
included in the Group are also responsible for
above, or any other transactions may result in
overseeing the financial reporting process of the
possible adjustments and/or disclosures in the
Group.
financial statements in respect of related parties,
and whether the Group should have complied with
the relevant laws and regulations. Accordingly, we Auditor’s Responsibility for the Audit of the
are unable to conclude whether or not the other Consolidated Financial Statements
information is materially misstated with respect Our objectives are to obtain reasonable assurance
to this matter. about whether the consolidated financial statements
as a whole are free from material misstatement,
Responsibilities of Management and whether due to fraud or error, and to issue an
Those Charged with Governance for the auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a
Consolidated Financial Statements
guarantee that an audit conducted in accordance
The Holding Company’s Board of Directors is with SAs will always detect a material misstatement
responsible for the matters stated in section 134(5) when it exists. Misstatements can arise from fraud or
of the Act with respect to the preparation of these error and are considered material if, individually or in
consolidated financial statements that give a true the aggregate, they could reasonably be expected to
 ADANI ELECTRICITY MUMBAI LIMITED
228 ANNUAL REPORT 2022-23

influence the economic decisions of users taken on • Obtain sufficient appropriate audit evidence
the basis of these consolidated financial statements. regarding the financial information of the
entities or business activities within the Group to
As part of an audit in accordance with SAs, we exercise
express an opinion on the consolidated financial
professional judgment and maintain professional
statements. We are responsible for the direction,
skepticism throughout the audit. We also:
supervision and performance of the audit of the
• Identify and assess the risks of material financial statements of the Holding Company and
misstatement of the consolidated financial a subsidiary included in the consolidated financial
statements, whether due to fraud or error, design statements of which we are the independent
and perform audit procedures responsive to those auditors. For the other subsidiary or business
risks, and obtain audit evidence that is sufficient activities included in the consolidated financial
and appropriate to provide a basis for our opinion. statements, which have been audited by the other
The risk of not detecting a material misstatement auditor, such other auditor remain responsible for
resulting from fraud is higher than for one resulting the direction, supervision and performance of
from error, as fraud may involve collusion, forgery, the audits carried out by them. We remain solely
intentional omissions, misrepresentations, or the responsible for our audit opinion.
override of internal control.
Materiality is the magnitude of misstatements in the
• Obtain an understanding of internal financial consolidated financial statements that, individually
control relevant to the audit in order to design or in aggregate, makes it probable that the economic
audit procedures that are appropriate in the decisions of a reasonably knowledgeable user of the
circumstances. Under section 143(3)(i) of the Act, consolidated financial statements may be influenced.
we are also responsible for expressing our opinion We consider quantitative materiality and qualitative
on whether the Holding Company has adequate factors in (i) planning the scope of our audit work
internal financial controls with reference to and in evaluating the results of our work; and (ii) to
consolidated financial statements in place and evaluate the effect of any identified misstatements in
the operating effectiveness of such controls. the consolidated financial statements.
• Evaluate the appropriateness of accounting We communicate with those charged with governance
policies used and the reasonableness of of the Holding Company and a subsidiary included
accounting estimates and related disclosures in the consolidated financial statements of which
made by the management. we are the independent auditors regarding, among
other matters, the planned scope and timing of the
• Conclude on the appropriateness of
audit and significant audit findings, including any
management’s use of the going concern basis
significant deficiencies in internal control that we
of accounting and, based on the audit evidence
identify during our audit.
obtained, whether a material uncertainty exists
related to events or conditions that may cast We also provide those charged with governance with
significant doubt on the ability of the Group to a statement that we have complied with relevant
continue as a going concern. If we conclude that ethical requirements regarding independence, and to
a material uncertainty exists, we are required communicate with them all relationships and other
to draw attention in our auditor’s report to the matters that may reasonably be thought to bear on
related disclosures in the consolidated financial our independence, and where applicable, related
statements or, if such disclosures are inadequate, safeguards.
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date Other Matters
of our auditor’s report. However, future events
(a) We did not audit the financial statements of
or conditions may cause the Group to cease to
a subsidiary (Adani Electricity Mumbai Infra
continue as a going concern.
Limited) included in the consolidated financial
• Evaluate the overall presentation, structure and statements of the Group whose financial
content of the consolidated financial statements, statements reflect total assets of H654.81 crores
including the disclosures, and whether the as at 31st March, 2023, total revenue of H Nil and
consolidated financial statements represent the net cash outflows H 13.76 crores for the year ended
underlying transactions and events in a manner on that date, as considered in the consolidated
that achieves fair presentation. financial statements of the Group. The financial
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 229

statements of this subsidiary has been audited by Consolidated Statement of Cash Flows and
other auditor whose reports have been furnished Consolidated Statement of Changes in Equity
to us by the Management, and our opinion in so dealt with by this Report are in agreement
far as it relates to the amounts and disclosures with the relevant books of account
included in respect of this subsidiary, and our maintained for the purpose of preparation of
report in terms of subsection (3) of Section 143 the consolidated financial statements by us
of the Act, in so far as it relates to the aforesaid and the other auditor.
subsidiary, is based solely on the report of other
d) Except for possible effects of the matter
auditor.
described in the Basis for Qualified Opinion
Our opinion on the consolidated financial section above, in our opinion, the aforesaid
statements above and our report on Other Legal consolidated financial statements comply
and Regulatory Requirements below, is not with the Ind AS specified under Section 133
modified in respect of the above matters with of the Act.
respect to our reliance on the work done and the
e) On the basis of the written representations
reports of the other auditor.
received from the directors of the Holding
(b) We are not statutory auditors of majority of the Company and a subsidiary as on 31st March,
other Adani group companies and therefore 2023 taken on record by the Board of
the scope of our audit does not extend to any Directors of these Companies and the reports
transactions or balances which may have occurred of the statutory auditors of a subsidiary
or been undertaken between these Adani group companies incorporated in India, none of the
companies and any supplier, customer or any directors of the Group is disqualified as on
other party which has had a business relationship 31st March, 2023 from being appointed as a
with the Group during the year. Our opinion is not director in terms of Section 164 (2) of the Act.
modified in respect of these matters.
f) The qualification relating to the maintenance
of accounts and other matters connected
Report on Other Legal and Regulatory therewith, are as stated in the Basis for
Requirements Qualified Opinion section and in paragraph
1. As required by Section 143(3) of the Act, based on (b) above.
our audit and on the consideration of the reports g) With respect to the adequacy of the
of the other auditor on the separate financial internal financial controls with reference to
statements of a subsidiary referred to in the Other consolidated financial statements and the
Matters section above we report, that: operating effectiveness of such controls,
a) We have sought and except for the matter refer to our separate Report in “Annexure
described in the Basis for Qualified Opinion A” which is based on the auditors’ reports
section above, obtained all the information of the Holding Company and subsidiary
and explanations which to the best of our companies incorporated in India. Our report
knowledge and belief were necessary for expresses qualified opinion on the adequacy
the purposes of our audit of the aforesaid and operating effectiveness of the Group’s
consolidated financial statements. internal financial controls with reference to
consolidated financial statements for the
b) Except for the possible effects of the matter reasons stated therein.
described in the Basis for Qualified Opinion
section above, in our opinion, proper books h) With respect to the other matters to be
of account as required by law relating to included in the Auditor’s Report in accordance
preparation of the aforesaid consolidated with the requirements of section 197(16) of
financial statements have been kept by the Act, as amended, in our opinion and to
the Group so far as it appears from our the best of our information and according to
examination of those books and the reports the explanations given to us and based on
of the other auditor. the auditor’s reports of subsidiary companies
incorporated in India, the remuneration paid
c) The Consolidated Balance Sheet, the by the Holding Company to their directors
Consolidated Statement of Profit and Loss during the year is in accordance with the
including Other Comprehensive Income, the
 ADANI ELECTRICITY MUMBAI LIMITED
230 ANNUAL REPORT 2022-23

provisions of section 197 of the Act and no or provide any guarantee, security
managerial remuneration has been paid or the like on behalf of the Ultimate
during the year to the directors of subsidiary Beneficiaries.
companies.
(b) The respective Management of
i) With respect to the other matters to be the Holding Company and its
included in the Auditor’s Report in accordance subsidiaries incorporated in India,
with Rule 11 of the Companies (Audit and whose financial statements have
Auditors) Rules, 2014, as amended in our been audited under the Act, have has
opinion and to the best of our information represented to us and to the other
and according to the explanations given to auditor of such subsidiaries that,
us: to the best of their knowledge and
belief, no funds have been received
i. The Group has disclosed the impact
by the Holding Company or any of
of pending litigations on its financial
such subsidiaries from any person(s)
position in its consolidated financial
or entity(ies), including foreign
statements - Refer Note 33 to the
entities (“Funding Parties”), with the
consolidated financial statements.
understanding, whether recorded in
ii. The Group has made provision, as required writing or otherwise, that the Holding
under the applicable law or accounting Company or any of such subsidiaries
standards, for material foreseeable losses, shall, directly or indirectly, lend or
if any, on long-term contracts including invest in other persons or entities
derivative contracts. identified in any manner whatsoever
by or on behalf of the Funding Party
iii. There were no amounts which were
(“Ultimate Beneficiaries”) or provide
required to be transferred to the Investor
any guarantee, security or the like on
Education and Protection Fund by the
behalf of the Ultimate Beneficiaries.
Holding Company, and its subsidiary
companies incorporated in India. (c) Based on the audit procedures
performed that have been considered
iv. (a) The respective Managements
reasonable and appropriate in the
of the Holding Company and its
circumstances performed by us
subsidiaries incorporated in India,
and that performed by the auditors
whose financial statements have
of the subsidiaries incorporated in
been audited under the Act, have
India whose financial statements
represented to us and to the other
have been audited under the Act,
auditor of such subsidiary that, to
nothing has come to our or other
the best of their knowledge and
auditor’s notice that has caused us
belief, no funds have been advanced
or the other auditor to believe that
or loaned or invested (either from
the representations under sub-clause
borrowed funds or share premium or
(i) and (ii) of Rule 11(e), as provided
any other sources or kind of funds)
under (a) and (b) above, contain any
by the Holding Company or any of
material misstatement.
such subsidiaries to or in any other
person(s) or entity(ies), including v. The interim dividend declared by the
foreign entities (“Intermediaries”), Holding Company subsequent to the
with the understanding, whether year end is in accordance with section
recorded in writing or otherwise, 123 of the Companies Act 2013 to
that the Intermediary shall, directly the extent it applies to declaration of
or indirectly lend or invest in other dividend. However, the said dividend was
persons or entities identified in any not due for payment on the date of this
manner whatsoever by or on behalf of audit report. The subsidiaries which are
the Holding Company or any of such companies incorporated in India whose
subsidiaries (“Ultimate Beneficiaries”) financial statements have been audited
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 231

under the Act, have not declared or paid 2. With respect to the matters specified in clause (xxi)
any dividend during the year and has not of paragraph 3 and paragraph 4 of the Companies
proposed final dividend for the year. (Auditor’s Report) Order, 2020 (“CARO”/ “the
Order”) issued by the Central Government in
vi. Proviso to Rule 3(1) of the Companies
terms of Section 143(11) of the Act, according
(Accounts) Rules, 2014 for maintaining
to the information and explanations given to us,
books of account using accounting
and based on the CARO reports issued by us and
software which has a feature of recording
the auditors of respective companies included in
audit trail (edit log) facility is applicable
the consolidated financial statements to which
w.e.f. 1 April 2023 to the Holding Company
reporting under CARO is applicable, as provided to
and its subsidiaries incorporated in India,
us by the Management of the Holding Company,
and accordingly, reporting under Rule
we report that there are no qualifications or
11(g) of Companies (Audit and Auditors)
adverse remarks by the respective auditors in the
Rules, 2014 is not applicable for the
CARO reports of the said respective companies
financial year ended 31st March, 2023.
included in the consolidated financial statements
except for the following:

Name of the company CIN Nature of Clause Number of CARO

relationship report with qualification
or adverse remark
Adani Electricity Mumbai U74999GJ2008PLC107256 The Holding (xi) (a), (xi) (c) and (xiii)
Limited Company

For Deloitte Haskins & Sells LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Mohammed Bengali
(Partner)
Place: Mumbai (Membership No. 105828)
Date: 26 May, 2023 (UDIN: 23105828BGWPIP5829)
 ADANI ELECTRICITY MUMBAI LIMITED
232 ANNUAL REPORT 2022-23

Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 1(h) under ‘Report on Other Legal and Regulatory Requirements’ of our report of
even date)

Report on the Internal Financial Controls We conducted our audit in accordance with the
with reference to consolidated financial Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) issued
statements under Clause (i) of Sub-section
by the Institute of Chartered Accountants of India and
3 of Section 143 of the Companies Act, the Standards on Auditing prescribed under Section
2013 (“the Act”) 143(10) of the Companies Act, 2013, to the extent
In conjunction with our audit of the consolidated applicable to an audit of internal financial controls
financial statements of the Company as of and for with reference to consolidated financial statements.
the year ended 31st March, 2023, we have audited Those Standards and the Guidance Note require that
the internal financial controls with reference we comply with ethical requirements and plan and
to consolidated financial statements of Adani perform the audit to obtain reasonable assurance
Electricity Mumbai Limited (“the Holding Company”) about whether adequate internal financial controls
and its subsidiaries, (the Holding Company and its with reference to consolidated financial statements
subsidiaries together referred to as “the Group”) as of was established and maintained and if such controls
that date. operated effectively in all material respects.
Our audit involves performing procedures to obtain
Management’s Responsibility for Internal audit evidence about the adequacy of the internal
Financial Controls financial controls with reference to consolidated
The respective Board of Directors of the Holding financial statements and their operating
Company and its subsidiary companies incorporated effectiveness. Our audit of internal financial controls
in India, are responsible for establishing and with reference to consolidated financial statements
maintaining internal financial controls with reference included obtaining an understanding of internal
to consolidated financial statements based on the financial controls with reference to consolidated
internal control with reference to consolidated financial statements, assessing the risk that a material
financial statements criteria established by the weakness exists, and testing and evaluating the
respective companies considering the essential design and operating effectiveness of internal control
components of internal control stated in the based on the assessed risk. The procedures selected
Guidance Note on Audit of Internal Financial Controls depend on the auditor’s judgement, including the
Over Financial Reporting issued by the Institute of assessment of the risks of material misstatement of
Chartered Accountants of India. These responsibilities the financial statements, whether due to fraud or
include the design, implementation and maintenance error.
of adequate internal financial controls that were Except for the matter described in the Basis for
operating effectively for ensuring the orderly and Qualified Opinion section below, we believe that
efficient conduct of its business, including adherence the audit evidence we have obtained and the
to the respective company’s policies, the safeguarding audit evidence obtained by the other auditor of
of its assets, the prevention and detection of frauds the subsidiary company, which are companies
and errors, the accuracy and completeness of the incorporated in India, in terms of their reports referred
accounting records, and the timely preparation of to in the Other Matter paragraph below, is sufficient
reliable financial information, as required under the and appropriate to provide a basis for our qualified
Companies Act, 2013. audit opinion on the internal financial controls with
reference to consolidated financial statements of
Auditor’s Responsibility the Holding Company and its subsidiary companies,
Our responsibility is to express an opinion on which are companies incorporated in India.
the internal financial controls with reference to
consolidated financial statements of the Holding Meaning of Internal Financial Controls
Company and its subsidiary companies, which are with reference to consolidated financial
companies incorporated in India based on our audit. statements
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 233

A company's internal financial control with reference to consolidated financial statements, such
reference to consolidated financial statements is a that there is a reasonable possibility that a material
process designed to provide reasonable assurance misstatement of the company's annual or interim
regarding the reliability of financial reporting and financial statements will not be prevented or detected
the preparation of financial statements for external on a timely basis.
purposes in accordance with generally accepted
accounting principles. A company's internal financial Qualified Opinion
control with reference to consolidated financial
In our opinion, to the best of our information and
statements includes those policies and procedures
according to the explanations given to us and
that (1) pertain to the maintenance of records that,
based on the consideration of the reports of the
in reasonable detail, accurately and fairly reflect
other auditor of a subsidiary referred to in the Other
the transactions and dispositions of the assets of
Matters paragraph above, except for the possible
the company; (2) provide reasonable assurance that
effects of the material weakness described in
transactions are recorded as necessary to permit
Basis for Qualified Opinion paragraph above on the
preparation of financial statements in accordance
achievement of the objectives of the control criteria,
with generally accepted accounting principles, and
the Group has maintained, in all material respects,
that receipts and expenditures of the company are
adequate internal financial controls with reference to
being made only in accordance with authorisations of
consolidated financial statements and such internal
management and directors of the company; and (3)
financial controls with reference to consolidated
provide reasonable assurance regarding prevention or
financial statements were operating effectively as
timely detection of unauthorised acquisition, use, or
of 31st March, 2023, based on the internal control
disposition of the company's assets that could have a
with reference to consolidated financial statements
material effect on the financial statements.
criteria established by the respective companies
considering the essential components of internal
Inherent Limitations of Internal Financial control stated in the Guidance Note.
Controls with reference to consolidated
We have considered the material weakness identified
financial statements and reported above in determining the nature, timing,
Because of the inherent limitations of internal and extent of audit tests applied in our audit of the
financial controls with reference to consolidated consolidated financial statements of the Holding
financial statements, including the possibility of Company for the year ended 31st March, 2023, and we
collusion or improper management override of have issued a qualified opinion on the consolidated
controls, material misstatements due to error or fraud financial statements of the Group.
may occur and not be detected. Also, projections of
any evaluation of the internal financial controls with Other Matter
reference to consolidated financial statements to
future periods are subject to the risk that the internal Our aforesaid report under Section 143(3)(i) of the
financial control with reference to consolidated Act on the adequacy and operating effectiveness of
financial statements may become inadequate the internal financial controls over financial reporting
because of changes in conditions, or that the degree insofar as it relates to a subsidiary company (Adani
of compliance with the policies or procedures may Electricity Mumbai Infra Limited), which is company
deteriorate. incorporated in India, is based solely on the reports of
the statutory auditor of such company incorporated
in India.
Basis for Qualified Opinion
According to the information and explanations given Our opinion is not modified in respect of the above
to us and based on our audit, the following material matter.
weakness has been identified as at 31st March, 2023:
The Group did not have an appropriate internal For Deloitte Haskins & Sells LLP
control system in respect of conducting an external Chartered Accountants
examination of allegations made on the Group,
(Firm’s Registration No. 117366W/W-100018)
including on related party relationships, which
could potentially result in possible adjustments/
disclosures of related party relationships, balances
and transactions in the financial statements and Mohammed Bengali
compliance with applicable laws and regulations. (Partner)
A ‘material weakness’ is a deficiency, or a combination Place: Mumbai (Membership No. 105828)
of deficiencies, in internal financial control with Date: 26 May, 2023 (UDIN: 23105828BGWPIP5829)
 ADANI ELECTRICITY MUMBAI LIMITED
234 ANNUAL REPORT 2022-23

Consolidated Balance Sheet Balance Sheet as at 31 st

March, 2023
(H in Crores)
Particulars Note As at As at
31 March, 2023
st
31 March, 2022
st

ASSETS
Non-current Assets
Property, Plant and Equipment 5 13,874.13 13,487.71
Capital Work-In-Progress 5c 1,094.46 489.94
Right-of-Use Assets 5a 570.93 592.79
Intangible Assets 5b 1,041.44 1,038.19
Financial Assets
(i) Investments 6a 233.61 204.62
(ii) Loans 7 26.10 1,068.94
(iii) Other Financial Assets 8 1,214.56 731.13
Income Tax Assets (net) 9a 2.93 4.00
Other Non-current Assets 10 240.02 72.45
Total Non-current Assets 18,298.18 17,689.77
Current Assets
Inventories 11 92.75 204.49
Financial Assets
(i) Investments 6b 767.66 24.84
(ii) Trade Receivables 12 452.27 485.85
(iii) Cash and Cash Equivalents 13 92.70 90.10
(iv) Bank Balances other than (iii) above 14 622.45 624.48
(v) Loans 7 6.95 7.10
(vi) Other Financial Assets 8 616.11 623.59
Other Current Assets 10 139.10 146.26
Total Current Assets 2,789.99 2,206.71
Total Assets before Regulatory Deferral Account 21,088.17 19,896.48
Regulatory Deferral Account - Assets 1,961.73 1,121.92
Total Assets 23,049.90 21,018.40
EQUITY AND LIABILITIES
Equity
Share Capital 15 4,020.82 4,020.82
Other Equity 16 694.73 673.91
Equity component of compound financial instrument 15a 382.18 104.72
Total Equity 5,097.73 4,799.45
Liabilities
Non-current Liabilities
Financial Liabilities
(i) Borrowings 17 13,120.57 11,956.68
(ii) Trade Payables 18
(A) total outstanding dues of micro enterprises and small enterprises; and - -
(B) total outstanding dues of creditors other than micro enterprises and 32.76 32.22
small enterprises.
(iii) Lease Liabilities 19 14.47 26.25
(iii) Other Financial Liabilities 20 4.05 67.78
Provisions 21 509.21 587.19
Deferred Tax Liabilities (Net) 29 260.61 179.35
Other Non Current Liabilities 22 265.64 245.47
Total Non-current Liabilities 14,207.31 13,094.94
Current Liabilities
Financial Liabilities
(i) Borrowings 23 500.00 -
(ii) Trade Payables 18
(A) total outstanding dues of micro enterprises and small enterprises; and 42.87 25.07
(B) total outstanding dues of creditors other than micro enterprises and 1,551.97 1,465.88
small enterprises.
(iii) Lease Liabilities 19 16.27 18.59
(iii) Other Financial Liabilities 20 1,232.83 977.51
Provisions 21 99.07 66.28
Current Tax Liabilities 9b - 2.13
Other Current Liabilities 22 301.85 296.99
Total Current Liabilities 3,744.86 2,852.45
Total Liabilities before Regulatory Deferral Account 17,952.17 15,947.39
Regulatory Deferral Account - Liabilities - 271.56
Total Equity and Liabilities 23,049.90 21,018.40
See accompanying notes forms part of the financial statements
As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018
sd/ sd/ sd/
Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad

Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 235

Consolidated Statement of Profit and Loss for the year ended 31 st

March, 2023
(H in Crores)
Note For the year ended For the year ended
31st March, 2023 31st March, 2022
INCOME :
Revenue from Operations 24 8,360.96 6,908.94
Other Income 25 331.07 409.65
Total Income 8,692.03 7,318.59
EXPENSES :
Cost Of Power Purchased 3,658.69 2,736.41
Cost of Fuel 1,384.18 1,065.99
Transmission Charges 482.31 477.84
Purchases of traded goods 3.59 0.76
Employee Benefits Expense 26 878.00 798.68
Finance Costs 27 1,434.26 1,160.38
Depreciation and Amortisation Expenses 5,5a&5b 742.62 651.58
Other Expenses 28 940.70 838.30
Total Expenses 9,524.35 7,729.94
Profit/(Loss) Before Movement in Regulatory Deferral Balance, (832.32) (411.35)
Exceptional Items and Tax
Add/(Less): Net Movement in Regulatory Deferral Balance 1,035.58 682.47
Profit Before Exceptional Items and Tax 203.26 271.12
Exceptional items - -
Profit Before Tax 203.26 271.12
Tax Expense: 29
Current Tax 27.20 47.78
Deferred Tax 81.26 101.18
108.46 148.96
Profit after tax Total A 94.80 122.16
Other Comprehensive Income / (Expense)
(a) Items that will not be reclassified to profit or loss
- Remeasurement of Defined Benefit Plans 47.89 17.09
Movement in Regulatory Deferral Balance (47.94) -
(b) Tax related to items that will not be reclassified to profit or loss
- Current Tax (8.38) (3.00)
(c) Items that will be reclassified to profit or loss
- Effective portion of gains and losses on designated portion (65.55) (151.87)
of hedging instruments in a cash flow hedge
Other Comprehensive Expense Total B (73.98) (137.78)
Total Comprehensive Income Total (A+B) 20.82 (15.62)
Earnings Per Share (EPS) (in H) 30
(Face Value H 10 Per Share)
Basic / Diluted earnings per Equity Share before net Movement in (1.89) (1.10)
Regulatary Deferral Balance
Basic / Diluted earnings per Equity Share after net Movement in 0.24 0.30
Regulatary Deferral Balance
See accompanying notes forms part of the financial statements
As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018
sd/ sd/ sd/
Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary
Place : Mumbai Place: Ahmedabad
Date: 26th May, 2023 Date: 26th May, 2023
 ADANI ELECTRICITY MUMBAI LIMITED
236 ANNUAL REPORT 2022-23

Consolidated Statement of changes in equityas at 31 st

March, 2023

A. Equity Share Capital (H in Crores)

Particulars No. Shares Amount
Balance as at 01 April, 2021 4,02,08,23,535 4,020.82
Changes in Equity Share Capital during the year - -
Balance as at 31st March, 2022 4,02,08,23,535 4,020.82
Changes in Equity Share Capital during the current year - -
Balance as at 31st March, 2023 4,02,08,23,535 4,020.82

B. Other Equity
For the year ended 31st March, 2023 (H in Crores)
Particulars Reserves and Surplus Items of Other Total
Comprehensive
Income
Capital Contingency Share Retained Cashflow
Reserve Reserve Premium Earnings Hedge
Fund Account Reserve
Balance as at 01 April, 2021 230.78 219.69 120.43 232.53 (113.90) 689.53
Profit for the year - - - 122.16 - 122.16
Other comprehensive Income / - - 14.09 (151.87) (137.78)
(Expense) for the year
Total comprehensive Income / - - - 136.25 (151.87) (15.62)
(Expense) for the year
Transfer to Contingency 25.74 (25.74) -
Reserve
Balance as at 31st March, 2022 230.78 245.43 120.43 343.04 (265.77) 673.91
Balance as at 01 April, 2022 230.78 245.43 120.43 343.04 (265.77) 673.91
Profit for the year - - - 94.80 - 94.80
Other comprehensive Income / - - - (8.43) (65.55) (73.98)
(Expense) for the year
Total comprehensive Income / - - - 86.37 (65.55) 20.82
(Expense) for the year
Transfer to Contingency - 7.36 - (7.36) - -
Reserve
Balance as at 31st March, 2023 230.78 252.79 120.43 422.05 (331.32) 694.73

See accompanying notes forms part of the financial statements

As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary
Place : Mumbai Place: Ahmedabad
Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 237

Consolidated Statement of Cash flow as at 31 st

March, 2023

(H in Crores)
As at As at
31st March, 2023 31st March, 2022
A. Cash flow from operating activities
Profit before tax 203.26 271.12
Adjustments for:
Interest Income (263.14) (309.34)
Delayed Payment Charges (35.49) (22.90)
Unrealised Foreign Exchange Gain from Borrowings net of 352.23 155.64
Hedging
Amortisation of Service Line Contribution (11.86) (10.30)
Gain On Sale / Fair Value Of Current Investments Measured at (4.73) (1.13)
FVTPL
Finance Costs 1,082.03 1,004.74
Depreciation and Amortisation Expense 742.62 651.58
(Profit)/Loss on sale of Fixed Assets (Net) (2.78) (0.42)
Sundry credit balances written back (2.44) (57.41)
Provisions no longer required written back - (38.74)
Bad Debts Written Off 15.21 18.31
Provision for Doubtful Debts / Advances / Deposits 5.58 -
Operating Profit before working capital changes 2,080.49 1,661.15
Changes in Working Capital:
Adjustments for (Increase) / Decrease in Assets :
Trade Receivables 18.37 103.77
Inventories 111.74 (10.99)
Financial Assets - Current / Non Current (1.65) (132.43)
Other Assets - Current / Non Current 6.04 240.98
Regulatory Deferral Account - Assets (839.81) (682.47)
Adjustment for Increase / (Decrease) in Liabilities :
Trade Payables - Current / Non Current 107.00 369.84
Financial Liabilities - Current / Non Current 39.14 (6.04)
Provisions - Current / Non Current (34.79) 52.42
Other Liabilities - Current / Non Current 5.74 (14.42)
Regulatory Deferral Account - Liability (271.56) -
Cash generated from operations 1,220.71 1,581.81
Tax paid (Net) (36.64) (48.72)
Net cash from operating activities (A) 1,184.07 1,533.09
B. Cash flow from investing activities
Capital expenditure on Property, Plant and Equipment & Intangible (1,553.96) (1,413.01)
Assets
Proceeds from Sale of Proeprty, Plant and Equipment 13.28 8.46
(Purchase) / Sale of Mutual Funds / Other Investments-Net (767.08) (27.41)
Bank balances not considered as Cash & Cash Equivalents (90.37) 237.28
Advances - Given - (607.22)
Advances - received back - 607.22
Loan Given received back 0.08 -
Loans given (1,000.00) -
 ADANI ELECTRICITY MUMBAI LIMITED
238 ANNUAL REPORT 2022-23

Consolidated Statement of Cash flow for the year ended 31 st

March, 2023

(H in Crores)
As at As at
31st March, 2023 31st March, 2022
Loans repaid 2,040.00 -
Loans to employees repaid (net) 2.90 10.26
Delayed payment charges received 35.49 22.90
Interest Received 263.14 300.50
Net cash used in investing activities (B) (1,056.52) (861.02)
C. Cash flow from financing activities
Increase in Service Line Contribution 33.81 25.33
Proceeds from Long-term borrowings 1.81 2,293.24
Repayment of Long-term borrowings (8.47) (1,404.41)
Proceeds from Short-term borrowings 4,506.78 1,535.54
Repayment of Short-term borrowings (4,006.78) (2,418.89)
Proceeds from issue of Optionally convertible Debentures 385.07 158.98
Payment of Lease Liability Obligation (14.10) (16.12)
Interest of Lease Liability Obligation (4.48) (6.25)
Interest & Other Borrowing Cost (1,018.60) (901.81)
Net cash used in financing activities (C) (124.95) (734.39)
Net (decrease) / increase in cash and cash equivalents (A+B+C) 2.60 (62.32)
Cash and cash equivalents as at 01 April (Opening Balance) 90.10 152.42
Cash and cash equivalents as at 31 March (Closing Balance) 92.70 90.10

Cash and Cash Equivalents Includes (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balances with banks
- In current accounts 58.23 80.20
- Fixed Deposits 20.00 -
Cash On Hand 0.43 0.80
Cheques / Drafts On Hand 14.04 9.10
Total Cash & Cash Equivalents 92.70 90.10

See accompanying notes forms part of the financial statements

As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad

Date: 26th May, 2023 Date: 26th May, 2023
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 239

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

1 Corporate information
Adani Electricity Mumbai Limited (“”AEML””) (“The Company”) is a public limited company incorporated and
domiciled in India having its registered office at Adani Corporate House, Shantigram, Near Vaishno Devi
Circle, S. G. Highway, Khodiyar, Ahmedabad 382421, Gujarat, India. It is subsidiary of Adani Transmission
Limited (ATL) (“”the Holding Company””) and ultimate holding entity is S. B. Adani Family Trust (SBAFT).
The integrated Mumbai Generation, Transmission and Distribution (GTD) Business, under a license, transmits
and distributes electricity to consumers in and around suburbs of Mumbai inclusive of areas covered under the
Mira Bhayender Municipal Corporation, making it the country’s largest private sector integrated power utility.
The Tariff to be charged to the consumers is regulated by Maharashtra Electricity Regulatory Commission
(“”MERC””).
The Company has incorporated wholly owned subsidiary AEML SEEPZ Limited (“ASL”) for the purpose of
distribution of electricity to Santacruz Electronic Export Processing Zone (“SEEPZ”) and Adani Electricity
Mumbai Infra Limited (AEMIL) for the purpose of carrying out works like infrastructure development,
transmission line development along with the commissioning of HVDC.
The Company, AEMIL and ASL is together referred to as “the Group” in these Consolidated Financial
Statements.
These financial statements of the Group for the year ended March 31, 2023 were authorised for issue by
the board of directors on May 26, 2023
2 Summary of Significant Accounting Policies
2.1 Statement of Compliance
The financial statements of the Group have been prepared in accordance with Indian Accounting Standards
(IndAS) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with section 133
of the Companies Act, 2013 (“the Act”) (as amended from time to time).

2.2 Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis except for the following assets and
liabilities which have been measured at fair value.
• certain financial assets and liabilities that are measured at fair value;
• defined benefit plans - planned assets measured at fair value;
The financial statements have been prepared in “Indian Rupees” which is also the Group’s functional
currency and all amounts, are rounded to the nearest Crore with two decimals, (Transactions below H
50,000.00 denoted as H0.00), unless otherwise stated.
Accounting policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting
policy hitherto in use.

2.3 Current versus Non-Current Classification

The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle; or
• Held primarily for the purpose of trading; or
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.
 ADANI ELECTRICITY MUMBAI LIMITED
240 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

A liability is current when:

• It is expected to be settled in normal operating cycle; or
• It is held primarily for the purpose of trading; or
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realization in
cash and cash equivalents. The Group has identified twelve months as its operating cycle.

2.4 Basis of Consolidation

The Group consolidates all entities which are controlled by it. The consolidated financial statements
comprise the financial statements of the Company and its subsidiary. Control exists when the parent has
power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and
has the ability to affect those returns by using its power over the entity. Power is demonstrated through
existing rights that give the ability to direct relevant activities, those which significantly affect the entity’s
returns. The entities are consolidated from the date control commences until the date control ceases.
The consolidated financial statements of the Group companies are consolidated on a line-by-
line basis and intra-group balances and transactions including unrealised gain/loss from such
transactions are eliminated upon consolidation. These consolidated financial statements
are prepared by applying uniform accounting policies in use at the Group. Profit or loss on
each component of other comprehensive income (OCI) are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this results in the non-
controlling interest having a deficit balance.
Changes in the Group’s holding that do not result in a loss of control are accounted for as equity
transactions. The carrying amount of the Group’s holding and the non-controlling interests are
adjusted to reflect the changes in their relative holding. Any difference between the amount by
which the non-controlling interests are adjusted and the fair value of the consideration paid or
received is recognised directly in equity and attributed to owners of the Company.
The details of subsidiary included in consolidation and it’s shareholding therein is as under: The
reporting date for the subsidiary is 31st March, 2023

Name of Company & Country of Incorporation Relationship Shareholding as on 31st March,

2023
Adani Electricity Mumbai Infra Limited, India Subsidiary 100%
AEML SEEPZ Limited, India Subsidiary 100%
AEMIL has been incorporated on 03 January, 2020 and ASL has been incorporated on 08 December 2020.
The Audited Financial Statements of these subsidiaries, from date of incorporation till the reporting date,
have been considered for consolidation.

2.5 Business Combination and Goodwill

The Group accounts for its business combinations under acquisition method of accounting. Acquisition
related costs are recognised in statement of profit and loss as incurred. The acquiree’ s identifiable assets,
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 241

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

liabilities and contingent liabilities that meet the condition for recognition are recognised at their fair
values at the acquisition date.
If the initial accounting for a business combination is incomplete as at the reporting date in which the
combination occurs, the identifiable assets and liabilities acquired in a business combination are measured
at their provisional fair values at the date of acquisition. Subsequently adjustments to the provisional values
are made within the measurement period, if new information is obtained about facts and circumstances
that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets
and liabilities as of that date; otherwise the adjustments are recorded in the period in which they occur.
Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after reassessing
the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve.
The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling
interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement
basis is made on an acquisition-by acquisition basis. Subsequent to acquisition, the carrying amount of
non-controlling interests is the amount of those interests at initial recognition plus the non-controlling
interest’s share of subsequent changes in equity of subsidiaries.
Business combinations arising from transfers of interests in entities that are under the common control
are accounted at historical costs. The difference between any consideration given and the aggregate
historical carrying amounts of assets and liabilities of the acquired entity are recorded in shareholders’
equity.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred
and the amount recognised for non-controlling interests and any previous interest held, over the net
identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess
of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair
value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in
other comprehensive income (OCI) and accumulated in equity as capital reserve. However, if there is no
clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve,
without routing the same through OCI.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash generating units that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in
profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

2.6 1 Property, plant and equipment (“PPE”)

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated
impairment losses, if any.
In respect of Property, Plant and Equipment (“Assets”) pertaining to Mumbai Generation, Transmission
and Distribution business acquired from Reliance Infrastructure Limited under a Court sanctioned
scheme of arrangement with an appointed date of 1 April, 2018, in line with the requirements of the
Court Scheme, the Group has accounted for such Assets at their respective fair values as at April 01,
2018 based on valuation done by a Government registered valuer.
 ADANI ELECTRICITY MUMBAI LIMITED
242 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Subsequent additions to the assets on or after 1st April, 2018 are accounted for at cost. Cost includes
purchase price (net of trade discount & rebates) and any directly attributable cost of bringing the asset
to its working condition for its intended use and for qualifying assets, borrowing costs capitalised in
accordance with IndAS 23. Capital work-in-progress is stated at cost, net of accumulated impairment
loss, if any. When significant parts of plant and equipment are required to be replaced at intervals,
the Group depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment
as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognised in the statement of profit and loss as incurred.
Decapitalisation
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in the statement
of profit and loss.
Depreciation
Depreciation commences when an asset is ready for its intended use. Freehold land is not depreciated.
Regulated Assets: Subject to the below, depreciation on property, plant and equipment in respect of
Mumbai Generation, Transmission and Distribution business of the Group is covered under Part B of
Schedule II of the Companies Act, 2013, and has been provided on the straight line method at the
rates and using the methodology as notified by the regulator.
For certain types of assets in respect of which useful life is not specified in MERC Multi Year Tariff
Regulations (“MYT regulations”), useful life as prescribed under Schedule-II of Companies Act, 2013 is
considered.
In respect of assets (other than Dahanu Thermal Power Station-DTPS) which have been accounted at
fair value, considering life as specified in MYT regulations, depreciation is provided on Straight Line
Method (considering a salvage value of 5%) over their balance useful life. In respect of DTPS based
on technical evaluation, the balance useful life has been determined as 15 years as on 01 April, 2018.
Salvage value in respect of assets which have not been accounted at fair value has been considered
at 10% except in respect of Furniture & Fixture, Vehicles, Office Equipment and Electrical Installations
which has been considered at 5% and Computers & Software at Nil (Consequent to amendment in
tariff regulations, the Company has changed the Salvage value of Computers from 5 % to Nil w.e.f. 01
April 2020).
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, and the effect of any changes in estimate is accounted for on a prospective basis.
Estimated useful lives of assets other than assets at DTPS are as follows:-

Type of Asset Useful lives

Building 30-60 Years
Plant and Equipment (Except Meters & Batteries)* 25-35 Years
Plant and Equipment - Meters* 10 Years
Plant and Equipment - Batteries* 10 Years
Distribution Line / Transmission Cable 35 Years
Street Light 25 Years
Furniture and Fixtures 15 Years
Office Equipment 5 Years
Computers, Servers & Related Network 3 Years
Vehicles 15 Years
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 243

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

* Consequent to amendment in tariff regulations, w.e.f. 12 July 2022 the Company has changed the
useful life (years) in respect of Batteries (from 5 to 10), Computers (from 6 to 6/3), Furniture and
Fixtures (from 10 to 15), Vehicles (from 8-10 to 15) and Roads Bridges (from 15 to 30).

2.6 2 Intangible Assets

Intangible assets are stated at cost less accumulated depreciation and accumulated impairment
losses, if any.
In respect of Intangible Asset (“Assets”) pertaining to Mumbai Generation, Transmission and
Distribution business acquired from Reliance Infrastructure Limited under a Court sanctioned
scheme of arrangement with an appointed date of 1 April, 2018, in line with the requirements of the
Court Scheme, the Group has accounted for such Assets at their respective fair values as at April 01,
2018 based on valuation done by professional valuation firm.
Subsequent additions to the assets on or after 1st April, 2018 are accounted for at cost.
Derecognition of Intangible assets.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as
the difference between the net disposal proceeds and the carrying amount of the asset, and are
recognised in statement of profit and loss when the asset is derecognised.
Useful life
Intangible assets with finite lives are amortised over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible asset with a finite useful life are reviewed at
least at the end of each reporting period. Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite lives is recognised in the statement of
profit and loss unless such expenditure forms part of carrying value of another asset.
Intangible Assets with Indefinite lives are not amortised but are tested for impairment on annual
basis.
Estimated useful lives of the intangible assets are as follows

Type of Assets Useful lives

Transmission License Indefinite
Computer Software 3 years
Consequent to amendment in tariff regulations, the Company has changed the Salvage value of
Computers Software from 1 % to Nil w.e.f. 01 April 2020.

2.6 3 Intangible Assets Under Development - Software

Development costs that are directly attributable to the design and testing of identifiable and unique
software products controlled are recognised as intangible assets where the following criteria are
met:
• it is technically feasible to complete the software so that it will be available for use
• management intends to complete the software and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will generate probable future economic benefits
• adequate technical, financial and other resources to complete the development and to use or
sell the software are available, and
• the expenditure attributable to the software during its development can be reliably measured.
 ADANI ELECTRICITY MUMBAI LIMITED
244 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Directly attributable costs that are capitalised as part of the software include employee costs and an
appropriate portion of relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from the point at
which the asset is available for use.

2.6 4 Impairment of PPE and intangible assets

PPE (including CWIP) and intangible assets with definite lives, are reviewed for impairment, whenever
events or changes in circumstances indicate that their carrying values may not be recoverable.
Intangible assets having indefinite useful lives are tested for impairment, at-least annually and
whenever circumstances indicate that it may be impaired.
For the purpose of impairment testing, the recoverable amount (that is, higher of the fair value less
costs to sell and the value-in-use) is determined on an individual asset basis, unless the asset does
not generate cash flows that are largely independent of those from other assets, in which case
the recoverable amount is determined at the cash generating unit (“CGU”) level to which the said
asset belongs. If such individual assets or CGU are considered to be impaired, the impairment to be
recognised in the statement of profit and loss is measured by the amount by which the carrying value
of the asset / CGU exceeds their estimated recoverable amount and allocated on pro-rata basis.
Impairment losses are reversed in the statement of profit and loss and the carrying value is increased
to its revised recoverable amount provided that this amount does not exceed the carrying value that
would have been determined had no impairment loss been recognised for the said asset / CGU in
previous years.

2.7 Cash & Cash Equivalents

Cash & cash equivalents comprises cash on hand, cash at bank and short term deposit with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash
& cash equivalents include balance with banks which are unrestricted for withdrawal and usage.
For the purpose of the statement of cash flows, cash & cash equivalents consists of cash at banks and short
term deposits as defined above, as they are considered an integral part of the Group cash management.

2.8 Cash Flow Statement

Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts
or payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Group are segregated.
2.9 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities are added to
or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities measured at fair value through profit or loss are recognised immediately in the statement of
profit and loss.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 245

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

2.10 Financial assets

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

1 Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest rate
method if these financial assets are held within a business whose objective is to hold these assets
in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

2 Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
On initial recognition, the Group makes an irrevocable election on an instrument-by-instrument
basis to present the subsequent changes in fair value in other comprehensive income pertaining
to investments in equity instruments, other than equity investment which are held for trading.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments
through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss
on disposal of the investments.

3 Financial assets at fair value through profit or loss (FVTPL)

All financial assets that do not meet the criteria for amortised cost are measured at FVTPL.

4 Impairment of investments
The Group reviews its carrying value of investments carried at cost annually, or more frequently when
there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted in the statement of profit and loss.

5 Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Group balance sheet) when:
- the right to receive cash flows from the asset have expired, or
- the Group has transferred its right to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks
and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its right to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the risks
and rewards of the asset, nor transferred control of the asset, the Group continues to recognise
the transferred asset to the extent of the Group’s continuing involvement. In that case, the
Group also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Group has retained.
 ADANI ELECTRICITY MUMBAI LIMITED
246 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

6 Impairment of financial assets

The Group assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Group recognises lifetime expected losses for all contract assets and / or all trade receivables
that do not constitute a financing transaction. For all other financial assets, expected credit losses
are measured at an amount equal to the 12 month expected credit losses or at an amount equal to
the life time expected credit losses if the credit risk on the financial asset has increased significantly
since initial recognition.

2.11 Financial liabilities and equity instruments

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

2 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds
received, net of direct issue costs.

3 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest
method. Gains and losses are recognised in statement of profit and loss when the liabilities are
derecognised as well as through the Effective Interest Rate (EIR) amortisation process. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

4 Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of
profit and loss.

5 The component parts of compound financial instruments (optionally convertible debentures) issued
by the Group are classified separately as financial liabilities and equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity
instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or
another financial asset for a fixed number of the Company’s own equity instruments is an equity
instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market
interest rate for similar non-convertible instruments. This amount is recognised as a liability on
amortised cost basis using the effective interest method until extinguished upon conversion or at
the instrument’s maturity date.
The conversion option classified as equity is determined by deducting the amount of the liability
component from the fair value of the compound financial instrument as a whole. This is recognised
and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the
conversion option classified as equity will remain in equity until the conversion option is exercised,
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 247

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

in which case, the balance recognised in equity will be transferred to other component of equity.
When the conversion option remains unexercised at the maturity date of the convertible note, the
balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in
the statement of profit or loss upon conversion or expiration of the conversion option.
2.12 Reclassification of financial assets and liabilities
The Group determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected
to be infrequent. The Group’s senior management determines change in the business model as a result
of external or internal changes which are significant to the Group’s operations. Such changes are evident
to external parties. A change in the business model occurs when the Group either begins or ceases to
perform an activity that is significant to its operations. If the Group reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately
next reporting period following the change in business model. The Group does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

2.13 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.14 Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined
on weighted average basis. Net realisable value represents the estimated selling price for inventories less
all estimated costs of completion and costs necessary to make the sale. Cost of inventory includes cost
of purchase and other costs incurred in bringing the inventories to their present location and condition.
Unserviceable/damaged stores and spares are identified and written down based on technical evaluation.

2.15 Foreign currencies

The functional currency of the Company is Indian Rupee
Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the
transaction. Foreign currency denominated monetary assets and liabilities are translated at the exchange
rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and
restatement are recognised in the statement of profit and loss.
Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are
not retranslated.
Exchange differences on monetary items are recognised in the statement of profit and loss in the period
in which they arise except for exchange differences on foreign currency borrowings relating to assets
under construction for future productive use, which are included in the cost of those assets when they are
regarded as an adjustment to interest costs on those foreign currency borrowings.

2.16 Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement:
In order to hedge its exposure to foreign exchange and interest rate risks, the Group enters into forward,
option, swap contracts and other derivative financial instruments. The Group does not hold derivative
financial instruments for speculative purposes.
 ADANI ELECTRICITY MUMBAI LIMITED
248 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement
of profit and loss, except for the effective portion of cash flow hedges, which is recognised in OCI and
later reclassified to the statement of profit and loss when the hedge item affects profit or loss. When the
hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognised as OCI
are transferred to the initial carrying amount of the non-financial asset or liability.
For the purpose of hedge accounting, hedges are classified as:
Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability
or an Unrecognised firm commitment.
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognised asset or liability or a highly probable forecast transaction or
the foreign currency risk in an Unrecognised firm commitment.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the
remaining maturity of the hedged item is less than 12 months.
At the inception of a hedge relationship, the Group formally designates and documents the hedge
relationship to which the Group wishes to apply hedge accounting.
The documentation includes the Group’s risk management objective and strategy for undertaking hedge,
the hedging/ economic relationship, the hedged item or transaction, the nature of the risk being hedged,
hedge ratio and how the entity will assess the effectiveness of changes in the hedging instrument’s fair
value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to
the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair
value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly
effective throughout the financial reporting periods for which they were designated.

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
i) Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are
recognised in the statement of profit and loss immediately, together with any changes in the fair
value of the hedged asset or liability that are attributable to the hedged risk.
When an Unrecognised firm commitment is designated as a hedged item, the subsequent cumulative
change in the fair value of the firm commitment attributable to the hedged risk is recognised as an
asset or liability with a corresponding gain or loss recognised in statement of profit and loss.
Hedge accounting is discontinued when the Group revokes the hedge relationship, the hedging
instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria
for hedge accounting.
ii) Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit
and loss.
Amounts recognised in OCI are transferred to profit or loss when the hedged transaction affects
profit or loss, such as when the hedged financial income or financial expense is recognised or when
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 249

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial
liability, the amounts recognised as OCI are transferred to the initial carrying amount of the non-
financial asset or liability.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover
(as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no
longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in
OCI remains separately in equity until the forecast transaction occurs or the foreign currency firm
commitment is met.

2.17 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration to which the Group expects to be entitled in
exchange for those goods or services

1 Transmission of Power
Revenue from transmission of power is recognised net of cash discount over time for transmission of
electricity. The Group as per the prevalent tariff regulations is required to recover its Annual Revenue
Requirement (‘ARR’) comprising of expenditure on account of operations and maintenance expenses,
financing costs, taxes and assured return on regulator approved equity with additional incentive for
operational efficiencies.
Input method is used to recognize revenue based on the Group’s efforts or inputs to the satisfaction
of a performance obligation to deliver power
As per tariff regulations, the Group determines ARR and any surplus/shortfall in recovery of the same
is accounted as revenue.

2 Sale of Power - Distribution

Revenue from sale of power is recognised net of cash discount over time for each unit of electricity
delivered at the pre determined rate. Sales of power under Deviation settlement mechamism is
recognised at variable cost.

3 Rendering of Services
Revenue from a contract to provide services is recognized over time based on output method where
direct measurements of value to the customer based on survey’s of performance completed to date.
Revenue is recognised net of cash discount at a point in time at the contracted rate.

4 Interest on Overdue Receivables / Delay Payment Charges

Consumers are billed on a monthly basis and are given average credit period of 15 to
30 days for payment. No delayed payment charges (‘DPC’) / interest on arrears (‘IOA’) is
charged for the initial 15-30 days from the date of invoice to customers. Thereafter, DPC
/ IOA is charged at the rate prescribed in the tariff order on the outstanding amount.
Revenue in respect of delayed payment charges and interest on delayed payments leviable as per
the relevant contracts are recognised on actual realisation or accrued based on an assessment of
certainty of realization supported by either an acknowledgement from customers or on receipt of
favourable order from regulator / authorities.

5 Sale of Traded Goods :

Revenue from sale of goods is recognised when the goods are delivered and titles have passed, at
which time all the following conditions are satisfied:
• The Group has transferred to the buyer the significant risks and rewards of ownership of the
goods;
 ADANI ELECTRICITY MUMBAI LIMITED
250 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

• the amount of revenue can be measured reliably; and

• it is probable that the economic benefits associated with the transaction will flow to the Group.
There is no significant judgement involved while evaluating the timing as to when customers obtain
control of promised goods and services.

6 Amortisation of Service Line Contribution

Contributions by consumers towards items of property, plant and equipment, which require an
obligation to provide electricity connectivity to the consumers, are recognised as a credit to deferred
revenue. Such revenue is recognised over the useful life of the property, plant and equipment.

7 Interest income:
Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Group and the amount of income can be measured reliably. Interest income is accrued
on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset’s net carrying amount on initial recognition.

2.18 Regulatory Deferral Account

The Group determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect
of its regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts”
read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles
laid down under the relevant Tariff Regulations/Tariff Orders notified by the Electricity Regulator and
the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate
adjustments in respect of such revenue gaps are made in the regulatory deferral account of the respective
year for the amounts which are reasonably determinable and no significant uncertainty exists in such
determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory
deferral accounts debit/credit balances (Regulatory Assets/Regulatory Liabilities) as the case may be in
the financial statements, which would be recovered/refunded through future billing based on future tariff
determination by the regulator in accordance with the electricity regulations
The Group presents separate line items in the balance sheet for:
i. the total of all regulatory deferral account debit balances; and”
ii. the total of all regulatory deferral account credit balances.”
A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory
deferral account. Regulatory assets/ liabilities on deferred tax expense/income is presented separately in
the tax expense line item

2.19 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
Substantial time is defined as time required for commissioning of the assets considering industry
benchmarks/MERC tariff regulations.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in statement of profit and loss in the period in which they are
incurred. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to
the borrowing costs.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 251

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

2.20 Employee benefits

1 Defined contribution plan:
Payments to defined contribution retirement benefit plans are recognised as an expense when
employees have rendered service entitling them to the contributions.

2 Defined benefit plans:

The cost of providing benefits under the defined benefit plan is determined using the projected
unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the
asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the
return on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods. Past service costs are recognised in the statement of profit and
loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the Group recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. The Group recognises the following changes in the net defined benefit obligation as an
expense in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non routine settlements; and
- Net interest expense or income.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer
withdraw the offer of the termination benefit and when the entity recognises any related
restructuring costs
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates.

3 Current and other non-current employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of current employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other non-current employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the Group in respect of services
provided by employees up to the reporting date.
 ADANI ELECTRICITY MUMBAI LIMITED
252 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

4 Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service. Liabilities recognised in respect of short-
term employee benefits are measured at the undiscounted amount of the benefits expected to be
paid in exchange for the related service. Liabilities recognised in respect of other long-term employee
benefits are measured at the present value of the estimated future cash outflows expected to be
made by the Group in respect of services provided by employees up to the reporting date.

2.21 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date except for
leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term
and low value leases, the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
Lease term is a non-cancellable period together with periods covered by an option to extend the lease if
the Group is reasonably certain to exercise that option; and periods covered by an option to terminate the
lease if the Group is reasonably certain not to exercise that option.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any lease incentives received. The right-of-use
asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the
end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase
option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset. In
addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments to be paid over the
lease term at the commencement date, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate. Subsequently, the lease liability is measured at amortised
cost using the effective interest method.

2.22 Taxation
Tax on Income comprises current tax and deferred tax. These are recognised in Statement of Profit and
Loss except to the extent that it relates to a business combination, or items recognised directly in equity
or in other comprehensive income.

1 Current tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date in the countries where the Group
operates and generates taxable income.
Current income tax relating to items recognised outside statement of profit and loss is recognised
outside statement of profit and loss (either in other comprehensive income or in equity). Current
tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity. Management periodically evaluates positions taken in the tax returns
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 253

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.

2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of assets and liabilities in a transaction other than a
business combination that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a
net basis.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws
in India, which is likely to give future economic benefits in the form of availability of set off against
future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance
sheet when the asset can be measured reliably and it is probable that the future economic benefit
associated with the asset will be realised. The Group reviews the “MAT credit entitlement” asset at
each reporting date and writes down the asset to the extent that it is no longer probable that it will
pay normal tax during the specified period.
Deferred tax assets are recognised for unused tax losses (excluding unabsorbed depreciation) to the
extent that it is probable that taxable profit will be available against which the losses can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies.

2.23 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders
of the Group by the weighted average number of equity shares outstanding during the period. Diluted
earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Group by the weighted average number of equity shares considered for deriving basic earnings per equity
share and also the weighted average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds
receivable had the equity shares been actually issued at fair value (i.e. the average market value of the
outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of
the period, unless issued at a later date. Dilutive potential equity shares are determined independently for
each period presented.
 ADANI ELECTRICITY MUMBAI LIMITED
254 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including for changes effected prior to the
approval of the financial statements by the Board of Directors.

2.24 Provisions, Contingent Liabilities and Contingent Assets.

1 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Group will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).
Present obligations arising under onerous contracts are recognised and measured as provisions with
charge to statement of profit and loss. An onerous contract is considered to exist where the Group
has a contract under which the unavoidable costs of meeting the obligations under the contract
exceed the economic benefits expected to be received from the contract

2 Contingent liability
A possible obligation that arises from past events and the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the enterprise are disclosed as contingent liability and not provided for. Such liability is not
disclosed if the possibility of outflow of resources is remote.

3 Contingent assets
A contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity. Contingent assets are not recognised but disclosed only when
an inflow of economic benefits is probable.

2.25 Dividend distribution to equity shareholders of the Group

The Group recognises a liability to make dividend distributions to its equity holders when the distribution
is authorised and the distribution is no longer at its discretion. As per the corporate laws in India, a
distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised
directly in equity.
In case of Interim Dividend, the liability is recognised on its declaration by the Board of Directors.

3.1 Standards issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian
Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below
Ind AS 1 – Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their
significant accounting policies. Accounting policy information, together with other information, is material
when it can reasonably be expected to influence decisions of primary users of general purpose financial
statements. The Company does not expect this amendment to have any significant impact in its financial
statements.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 255

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Ind AS 12 – Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company
is evaluating the impact, if any, in its financial statements.
Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates.
The definition of a change in accounting estimates has been replaced with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies
require items in financial statements to be measured in a way that involves measurement uncertainty.
The Company does not expect this amendment to have any significant impact in its financial statements.

4 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, management of the Group is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. Detailed information about each of these estimates and judgements is included in relevant
notes together with information about the basis of calculation for each affected line item in the financial
statements.
The areas involving critical estimates or judgements are:
Estimation of current tax and deferred tax expense - Note 29
Estimates used for impairment of transmission license - Note 31
Assessment of lease classification in respect of long term power purchase agreement - Note 32 (I) (c)
Judgement to estimate the amount of provision required or to determine required disclosure related to
litigation and claims against the Group - Note 33
Estimation of defined benefit obligation - Note 39
For the purpose of captilisation of borrowing cost, substantial time is defined as time required for
commissioning of the assets considering industry benchmarks/MERC tariff regulations.
Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that
are believed to be reasonable under the circumstances.
 st
Notes to Consolidated Financial Statements for the year ended 31 March, 2023
256

Note 5 : Property, plant and equipment (PPE) (H in Crores)

Particulars Freehold Buildings - Buildings- Plant and Distribution Street Railway Jetty Furniture Vehicles Office Computers Electrical Total
Land Residential Others Equipment Systems Light Siding and Equipment Installations
Fixtures
Gross carrying amount
As at 1st April 2021 2,636.87 104.42 822.42 4,972.41 5,591.82 194.72 6.87 1.31 20.96 40.08 24.01 107.08 29.81 14,552.78
Additions - 0.49 48.94 332.23 597.00 37.41 - 0.08 0.70 6.86 4.74 77.10 17.75 1,123.30
Disposals - - 0.02 20.22 - - - - 0.13 0.72 0.29 0.67 0.38 22.43
Closing Gross carrying 2,636.87 104.91 871.34 5,284.42 6,188.82 232.13 6.87 1.39 21.53 46.22 28.46 183.51 47.18 15,653.65
ANNUAL REPORT 2022-23

amount as on 31st
March, 2022
Accumulated
depreciation and
ADANI ELECTRICITY MUMBAI LIMITED

impairment
As at 1st April 2021 - 11.73 82.73 781.47 577.17 31.56 1.25 0.24 9.93 8.13 12.29 39.85 11.16 1,567.51
Depreciation charge for - 3.94 30.53 289.62 246.78 11.51 0.41 0.08 2.20 5.09 3.05 16.43 3.18 612.82
the year
Eliminated on disposal - - 0.02 12.64 - - - - 0.13 0.35 0.28 0.67 0.30 14.39
of assets
Closing accumulated - 15.67 113.24 1,058.45 823.95 43.07 1.66 0.32 12.00 12.87 15.06 55.61 14.04 2,165.94
depreciation as on 31st
March, 2022
Net carrying amount - 2,636.87 89.24 758.10 4,225.97 5,364.87 189.06 5.21 1.07 9.53 33.35 13.40 127.90 33.14 13,487.71
31st March, 2022
Gross carrying amount
As at 1st April 2022 2,636.87 104.91 871.34 5,284.42 6,188.82 232.13 6.87 1.39 21.53 46.22 28.46 183.51 47.18 15,653.65
Additions - 1.55 29.47 422.83 516.39 45.95 - - 0.49 31.99 3.56 35.04 8.11 1,095.38
Disposals - - 0.01 22.06 - 2.68 - - - 2.23 0.02 3.26 0.41 30.67
Closing Gross carrying 2,636.87 106.46 900.80 5,685.19 6,705.21 275.40 6.87 1.39 22.02 75.98 32.00 215.29 54.88 16,718.36
amount as on 31st
March, 2023
Accumulated
depreciation and
impairment
As at 1st April 2022 - 15.67 113.24 1,058.45 823.95 43.07 1.66 0.32 12.00 12.87 15.06 55.61 14.04 2,165.94
Depreciation charge for - 5.00 31.10 315.94 277.06 13.05 0.41 0.09 1.16 3.30 3.72 43.25 4.38 698.46
the year
Eliminated on disposal - - 0.01 14.20 - 1.00 - - - 1.30 0.02 3.26 0.38 20.17
of assets
Closing accumulated - 20.67 144.33 1,360.19 1,101.01 55.12 2.07 0.41 13.16 14.87 18.76 95.60 18.04 2,844.23
depreciation as on 31st
March, 2023
Net carrying amount - 2,636.87 85.79 756.47 4,325.00 5,604.20 220.28 4.80 0.98 8.86 61.11 13.24 119.69 36.84 13,874.13
31st March, 2023
Notes:
(i) Refer footnote to Note 17 for security/charges created on property, plant and equipment.

ii) Consequent to amendment in tariff regulations w.e.f. 12th July 2022, the Company changed the useful life in respect of Batteries, Computers, Furniture & fixtures , vehicles and Roads Bridges
accordingly depreciation for the year ended 31st March, 2023 is higher by H5.70 crores.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 257

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE) (Contd.)

Note 5a: Right of Use (H in Crores)
Particulars Right of Use
Land Building Right of Way Total
Gross carrying amount
As at 1st April 2021 13.75 138.66 40.16 192.57
Additions 510.32 - - 510.32
Derecognition - 36.57 - 36.57
Closing Gross carrying amount as on 31 March, 2022
st
524.07 102.09 40.16 666.32
Accumulated amortisation & Impariment
As at 1st April 2021 0.68 46.79 3.61 51.08
Amortisation charge of the year 3.63 19.74 3.02 26.39
Derecognition - 3.94 - 3.94
Closing accumulated amortisation as on 31 st
March, 4.31 62.59 6.63 73.53
2022
Net carrying amount - 31st March, 2022 519.76 39.50 33.53 592.79
Gross carrying amount
As at 1st April 2022 524.07 102.09 40.16 666.32
Additions 0.23 - 1.32 1.55
Derecognition - - - -
Closing Gross carrying amount as on 31st March, 2023 524.30 102.09 41.48 667.87
Accumulated amortisation & Impariment
As at 1st April 2022 4.31 62.59 6.63 73.53
Amortisation charge of the year 6.42 13.81 3.18 23.41
Derecognition - - - -
Closing accumulated amortisation as on 31st March, 10.73 76.40 9.81 96.94
2023
Net carrying amount - 31st March, 2023 513.57 25.69 31.67 570.93

Note 5b: Intangible Assets (H in Crores)

Computer Transmission Total
Software License
Gross carrying amount
As at 01 April 2021 43.14 981.62 1,024.76
Additions 49.51 - 49.51
Disposal - - -
Closing Gross carrying amount as on 31 March, 2022
st
92.65 981.62 1,074.27
Accumulated amortisation & Impairment
As at 01 April, 2021 20.46 - 20.46
Amortisation charge for the year 15.62 - 15.62
Eliminated on disposal of assets - - -
Closing accumulated amortisation as on 31 March, 2022
st
36.08 - 36.08
Net carrying amount - 31st March, 2022 56.57 981.62 1,038.19
Gross carrying amount
 (Contd.)
ADANI ELECTRICITY MUMBAI LIMITED
258 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE) (Contd.)

Note 5b: Intangible Assets (H in Crores)
Computer Transmission Total
Software License
As at 01 April 2022 92.65 981.62 1,074.27
Additions 30.07 - 30.07
Disposal - - -
Closing Gross carrying amount as on 31st March, 2023 122.72 981.62 1,104.34
Accumulated amortisation & Impariment
As at 01 April 2022 36.08 - 36.08
Amortisation charge for the year 26.82 - 26.82
Eliminated on disposal of assets - - -
Closing accumulated amortisation as on 31st March, 2023 62.90 - 62.90
Net carrying amount - 31st March, 2023 59.82 981.62 1,041.44
Notes:
(i) The above Intangible Assets are other than internally generated Intangible Assets.
(ii) Transmission License was acquired as part of the business acquisition. The License is valid for 25 years from
16th August 2011 to 15th August 2036. The license can be further extended at minimal cost, considering
similar extensions have happened in the past. Based on an analysis of all of the relevant factors, the license
is considered by the Company as having an indefinite useful life, as there is no foreseeable limit to the
period over which the transmission business related assets are expected to generate net cash inflows for
the Company.
(iii) The title deeds in respect of certain lease hold land properties are in the erstwhile names of the Company
viz: “Bombay Suburban Electric Supply Limited” / “Reliance Energy Limited” / “Reliance Infrastructure
Limited”. The Company is in process of updating the same from erstwhile Company’s name to the name of
the Company.
Further during the pervious year, the Company had entered into memorandum of understanding in name
of the Company with M/s. Superheights Infraspace Private Limited (SIPL) (related party) for an amount
of H510.00 crores towards acquiring leasehold rights of land parcel at BKC, Mumbai for construction of
Extra High Voltage (EHV) Substation to meet the incremental load requirement. The Company has obtained
possession of the said land after giving capital advance of H431.00 crores and commenced substantial pre-
construction activities.
The leasehold land amounting to H510.00 crores is included in the right of use assets. The Company will
enter into formal lease agreement on completion of the construction of the substation as per the applicable
regulatory requirements.
(iv) Transmission License is pledged as security with the Lenders against borrowings.

(H in Crores)
Depreciation / Amortisation For the year ended For the year ended
31st March, 2023 31st March, 2022
Depreciation on Tangible Assets 698.46 612.82
Amortisation on Intangible Assets 26.82 15.62
Amortisation on Right of Use 23.41 26.39
Total 748.69 654.83
Less : Transferred to Capital work in progress (6.07) (3.25)
Net depreciation charged to the Statement of Profit and Loss 742.62 651.58
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 259

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE) (Contd.)

Note 5c: Capital work-in-progress
(a) Capital-work-in progress ageing schedule: (H in Crores)
Particulars Amount in CWIP for a period of Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress 787.44 236.12 37.09 32.11 1,092.76
- Projects temporarily suspended 0.97 0.67 - 0.06 1.70
Total 788.41 236.79 37.09 32.17 1,094.46
As at 31st March, 2022
- Projects in progress 387.63 54.52 8.62 36.98 487.75
- Projects temporarily suspended 0.22 0.87 0.95 0.15 2.19
Total 387.85 55.39 9.57 37.13 489.94

(b) capital-work-in progress, which has exceeded its cost compared to its original plan: (H in Crores)
CWIP To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress
11kV Network_New Supply_FY 2019-20 0.24 - - - 0.24
- Projects temporarily suspended
- - - - -
Total 0.24 - - - 0.24
As at 31st March, 2022
- Projects in progress
Low Tension network projects 0.19 - - - 0.19
- Projects temporarily suspended
Low Tension network projects 0.17 - - - 0.17
Total 0.36 - - - 0.36
Cost Overruns upto (+-) 10 % are envisaged by the management’s original plan, and hence not considered in
above table.
 ADANI ELECTRICITY MUMBAI LIMITED
260 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE) (Contd.)

Note 5c: Capital work-in-progress
(c) capital-work-in progress, whose completion is overdue compared to its original plan: (H in Crores)
CWIP To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress
Main Plant DPR Jobs 0.12 0.01 - - 0.13
Other DPR Jobs 0.06 - - - 0.06
11kV Network Strengthening 2017-18_ 1.63 - - - 1.63
New Supply
33-22/11 kV Receiving Station Schemes 1.38 - - - 1.38
(11-12)
11kV Network strengthening 2013-14 0.08 - - - 0.08
11kV Network_New Supply_FY 2019-20 0.24 - - - 0.24
Services New Supply (2019-20) 0.26 - - - 0.26
IT Network_Revamping_FY 2020-21 2.44 - - - 2.44
LT Mains_Improvement_FY 2020-21 & FY 0.44 - - - 0.44
2021-22
Receiving Station_R M Prabodhani_FY 1.51 - - - 1.51
2020-21
DPR - Security Automation 0.21 - - - 0.21
Augmentation_FY 2021-22
- Projects temporarily suspended
33-22/11 kV Receiving Station Schemes 0.00 - - - 0.00
(11-12)
Additional Rec-Stn DPR (14-15) 0.07 - - - 0.07
Additional Rec-Stn DPR (15-16) 0.01 - - - 0.01
Total 8.44 0.01 - - 8.45
As at 31st March, 2022
- Projects in progress
Main Plant DPR Jobs 0.23 - - - 0.23
Main Plant Non DPR Jobs 0.01 - - - 0.01
11KV Substation jobs 0.06 - - - 0.06
Receiving Station Jobs 0.82 - - - 0.82
Low Tension Network jobs 0.02 - - - 0.02
Others Non DPR Jobs 0.06 - - - 0.06
- Projects temporarily suspended -
Receiving Station Jobs 0.05 - - - 0.05
Total 1.25 - - - 1.25
Time Overruns due to delay in statutory approvals and right of way issues, and approved by the management’s
revised plan are not considered in above table.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 261

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

Note 5 : Property, plant and equipment (PPE) (Contd.)

Note 5d: Intangible assets under development aging schedule:
(a) Intangible Assets Under Development ageing schedule: (H in Crores)
Particulars Amount in CWIP for a period of Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023
- Projects in progress - - - - -
- Projects temporarily suspended - - - - -
Total - - - - -
As at 31st March, 2022
- Projects in progress - - - - -
- Projects temporarily suspended - - - - -
Total - - - - -

(b) Intangible Assets Under Development, whose completion is overdue or has exceeded its cost
compared to its original plan:
Particulars To be completed in Total
<1 year 1-2 years 2-3 years > 3 years
As at 31st March, 2023 - - - - -
As at 31st March, 2022 - - - - -

6 Investments
6a Non-current investments (H in Crores)
Face value No of Shares As at As at
of H unless 31st March, 2023 31st March, 2022
otherwise
specified
Investment in Government Securities
at amortised cost
Contingency Reserve Investments
(Quoted)
7.16% Central Government of India - 100 (100) 1,87,50,000 201.22 201.74
2050 (1,87,50,000)
9.23% Central Government of India - 100 (100) 2,20,000 2.82 2.88
2043 (2,20,000)
5.63% Central Government of India - 100 (Nil) 30,00,000 29.57
2026 (Nil)
Total 233.61 204.62
Aggregate Market Value of Quoted 214.32 188.31
Investments
Aggregate Carrying Value of Quoted 233.61 204.62
Investments
Aggregate Carrying Value of - -
Unquoted Investments
Aggregate amount of impairment in - -
the value of investments
 ADANI ELECTRICITY MUMBAI LIMITED
262 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

6 Investments (Contd.)
6b Current investments
Face Value No of Units As at As at
of H unless 31st March, 2023 31st March, 2022
otherwise
specified
Contingency Reserve Investments
Investment in Tresury Bills at FVTPL 100 25,00,000 24.75 24.84
(Quoted) (Nil) (Nil)
Investment in mutual funds (quoted)
SBI Overnight Direct Growth {NAV 7,37,653.15 269.19 -
H3,649.25 (NA)} (Nil)
ABSL Overnight Direct Growth {NAV 8,99,491.49 109.06 -
H1,212.45 (NA)} (Nil)
ABSL Liquid Direct Growth {NAV 100,43,309.82 364.66
H363.08 (NA)} (Nil)
767.66 24.84
Aggregate Carrying Value of 767.66 24.84
Unquoted Investments
Aggregate Market Value of Unquoted 767.66 24.84
Investments

7 Loans - At Amortised Cost (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Housing loans to employee against 17.14 20.17 3.00 3.49
hypothecation of the property
(Secured, considered good)
Inter Corporate Deposit given to related party - 1,040.00 - -
(Unsecured, considered good)
Loans to employees 8.96 8.77 3.95 3.61
(Unsecured, considered good)
26.10 1,068.94 6.95 7.10

(H in Crores)
Type of Borrowers Amount of loan or advance Amount of loan or advance
in the nature of loan in the nature of loan
outstanding outstanding
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Promoter - - - -
Director - - - -
Key Managerial Personnel - 0.62 - 0.06%
Related Party - 1,040.00 - 96.65%
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 263

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

7 Loans - At Amortised Cost (Contd.)

(i) Loans to Key Managerial Personnels were not repayable on demand and had defined repayments schedule
and as per the company’s Employees Loan Policy
(ii) Inter Corporate Deposit given to Adani Properties Private Limited (related party) were for a period of 3 years
and repayable on demand or on maturity of 3 years whichever is earlier, is repaid before maturity.

8 Other Financial Assets - At Amortised Cost (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(Unsecured, considered good unless otherwise
stated)
Security Deposits - Unsecured
Considered Good 52.45 49.54 - -
Considered doubtful 6.63 1.05 - -
59.08 50.59 - -
Less : Provision For Doubtful Deposits (6.63) (1.05) - -
Total 52.45 49.54 - -
* Fixed Deposit with Banks 608.74 516.34 - -
# Derivative instruments designated in hedge 553.37 165.25 - -
accounting relationship (Refer Note No. 39)
Unbilled Revenue - - 597.55 507.56
Regulatory Assets other than Distribution - - 18.33 -
Other Financial Assets - - 0.23 116.03
1,214.56 731.13 616.11 623.59
Note :
* Represents deposits towards Debt Service Reserve Account (DSRA), Capex Reserve Account (CRA) and Margin
money.
# Refer footnote to Note 17 for security/charges created on hedging instruments.

9a Income Tax Assets (net) (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Income Tax Assets (net) 2.93 4.00
2.93 4.00

9b Current Tax Liabilities (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Current Tax Liabilities - 2.13
- 2.13
 ADANI ELECTRICITY MUMBAI LIMITED
264 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

10 Other Assets (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(Unsecured, Considered good)
Advance to Suppliers - - 113.34 125.18
Balances with Government authorities - - 5.46 0.05
Prepaid Expenses 0.46 1.32 16.35 16.84
Capital advances 235.60 69.10 - -
Advance to Employees 3.96 2.03 3.95 4.19
Others receivable - - - -
240.02 72.45 139.10 146.26

11 Inventories (H in Crores)
As at As at
31st March, 2023 31st March, 2022
(Stated at lower of Cost and Net Realisable Value)
Fuel 39.78 127.40
Fuel - In Transit 17.00 35.83
Stores & spares 35.97 41.26
92.75 204.49
Above inventories are pledged as security with the Lenders against borrowings (Refer Note No 17).

12 Trade Receivables (H in Crores)

As at As at
31st March, 2023 31st March, 2022
(unsecured otherwise stated)
Unsecured, considered good 412.27 450.49
Trade Receivables which have significant increase in credit risk 40.00 35.36
Credit Impaired 1.39 1.39
453.66 487.24
Less : Provision for doubtful Trade receivables (1.39) (1.39)
452.27 485.85
Note :
(i) The Company holds security deposit in respect of trade receivables - Refer Note No 20
(ii) Above trade receivables are pledged as security with the Lenders against borrowings (Refer Note No 17).
(iii) As at 31st March, 2023 - H52.17 crores (31 March 2022 : H77.15 crores) is due from Maharashtra State Electricity
Transmission Company Limited and H3.00 crores (31 March 2022 : H43.70 crores) is due from Municipal
Corporation of Greater Mumbai which represents Company’s large customer who owes more than 5% of the
total balance of trade receivables.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 265

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

12 Trade Receivables (Contd.)

(iv) The average credit period for the Company’s receivables from its transmission and distribution (including
street light maintenance ) business is in the range of 15 to 30 days. No interest or delayed payment is
charged on trade receivables till the due date. Thereafter, one time delayed payment charges at the rate of
1.25% & interest after 30 / 60 days from bill date is charged in the range of 12% to 15% per annum
(v) In case of transmission business, regulator approved tariff is receivable from long-term transmission
customers (LTTCs) and Discoms that are highly rated companies or government parties. Counterparty credit
risk with respect to these receivables is very minimal.
(vi) The Company considers for impairment of its receivables from customers in its Mumbai distribution business.
The risk of recovery in these businesses is reduced to the extent of security deposits already collected and
held as collateral. Balance amount receivable over and above the deposit is assessed for expected credit loss
allowances. The Company has used a practical expedient by computing the expected credit loss allowance
for trade receivables based on a provision matrix. The provision matrix takes into account historical credit
loss experienced and adjusted for forward- looking information. The expected credit loss allowance is based
on ageing of the days the receivables are due.

12.1Trade Receivables ageing Schedule

As at 31st March, 2023
Particulars Outstanding for following periods from due date of receipt
Not Less than 6 months 1-2 2-3 More than Total
Due 6 months - 1 year years years 3 years
(i) Undisputed Trade receivables 291.40 112.25 0.26 5.10 - - 409.01
– considered good
(ii) Undisputed Trade Receivables 17.23 14.72 2.87 5.15 - - 39.97
– which have significant
increase in credit risk
(iii) Undisputed Trade - - - 1.39 - - 1.39
Receivables – credit impaired
(iv) Disputed Trade Receivables 0.92 1.54 0.32 0.48 - - 3.26
considered good
(v) Disputed Trade Receivables 0.03 - - - - - 0.03
- which have significant
increase in credit risk
(vi) Disputed Trade Receivables - - - - - - -
– credit impaired
(vii) Provision for Doubtful Debts - - 0.00 (1.39) - - (1.39)
Total 309.58 128.51 3.45 10.73 - - 452.27
 ADANI ELECTRICITY MUMBAI LIMITED
266 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

12 Trade Receivables (Contd.)

As at 31st March, 2022
Particulars Outstanding for following periods from due date of receipt
Not Less than 6 months 1-2 2-3 More than Total
Due 6 months - 1 year years years 3 years
(i) Undisputed Trade 244.67 160.47 1.97 40.61 - - 447.72
receivables – considered
good
(ii) Undisputed Trade 6.25 18.08 3.87 7.12 - - 35.32
Receivables – which have
significant increase in credit
risk
(iii) Undisputed Trade - - - 1.39 - - 1.39
Receivables – credit
impaired
(iv) Disputed Trade Receivables 0.60 1.66 0.36 0.15 - - 2.77
considered good
(v) Disputed Trade Receivables 0.01 0.03 - - - - 0.04
- which have significant
increase in credit risk
(vi) Disputed Trade Receivables - - - - - - -
– credit impaired
(vii) Provision for Doubtful Debts - - 0.00 (1.39) - - (1.39)
Total 251.53 180.24 6.20 47.88 - - 485.85

12.2 Movement in the allowance for doubtful trade receivables (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balance at the beginning of the year 1.39 1.39
Add/(Less) : Provision made / (Written off) during the year (net of - -
recoveries)
Balance at the end of the year 1.39 1.39
The concentration of credit risk is very limited due to the fact that the large customers are mainly government
bodies / departments and remaining customer base is large and widely dispersed and secured with security
deposit.

13 Cash and Cash Equivalents - At Amortised Cost (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Balances with banks
- In current accounts 58.23 80.20
- Fixed Deposits 20.00 -
Cash On Hand 0.43 0.80
Cheques / Drafts On Hand 14.04 9.10
Total Cash & Cash Equivalents as per Statement of Cash Flows 92.70 90.10
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 267

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

13 Cash and Cash Equivalents - At Amortised Cost (Contd.)

Reconciliation of liabilities from Financing Activities (H in Crores)
Particulars As at 1 st
Cash flows Non-cash As at 31st
April, 2022 Proceeds Repayment Transaction March, 2023
Non-current Borrowings 11,956.68 148.39 (8.47) 1,023.97 13,120.57
(including Current Maturities
of Non-current Borrowings)
Current Borrowings - 4,506.78 (4,006.78) - 500.00
(Excluding Bank Overdraft)
Total 11,956.68 4,655.17 (4,015.25) 1,023.97 13,620.57

Reconciliation of liabilities from Financing Activities (H in Crores)

Particulars As at 1st Cash flows Non-cash As at 31st
April, 2021 Proceeds Repayment Transaction March, 2022
Non-current Borrowings 10,589.15 2,347.90 (1,404.41) 424.04 11,956.68
(including Current Maturities
of Non-current Borrowings)
Current Borrowings 883.35 1,535.54 (2,418.89) - -
(Excluding Bank Overdraft)
Total 11,472.50 3,883.44 (3,823.30) 424.04 11,956.68
Note : Non-cash transactions represents movement in revaluation of foreign currency borrowings.

14 Bank Balance Other than Cash and Cash Equivalents - At Amortised Cost
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
Bank Deposits with Original Maturity of more than 3 months but 622.45 624.48
less than 12 months
622.45 624.48
 ADANI ELECTRICITY MUMBAI LIMITED
268 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

15 Share Capital (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Authorised Share Capital
5,00,00,00,000 (5,00,00,00,000) equity shares of H10 each. 5,000.00 5,000.00
5,000.00 5,000.00
Issued, Subscribed and Paid-up Share Capital
4,020,823,535 (4,020,823,535) fully paid up equity shares of H10 4,020.82 4,020.82
each.
4,020.82 4,020.82

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
(H in Crores)
As at As at
31st March, 2023 31st March, 2022
No. Shares No. Shares
Equity Shares
At the beginning of the Year 4,02,08,23,535 4,02,08,23,535
Issued during the year - -
Outstanding at the end of the year 4,02,08,23,535 4,02,08,23,535
Details of shares alloted for consideration other than cash
During the year ended 31st March, 2020 62,07,73,535 numbers Equity Shares of H10 each at a premium
of H1.94 per share, have been issued through Preferential allotment to Parent Company on conversion of
intercorporate deposit (including interest accrued) H460.25 Crores and unsecured perpetual Instrument.

b. Terms/rights attached to equity shares

“The Company has only one class of equity shares having par value of H10 per share. Each holder of equity
shares is entitled to one vote per share. The dividend if proposed by the Board of Directors is subject to
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
Company the holders of the equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.

c. Details of shareholders holding more than 5% shares in the Company (H in Crores)

As at 31st March, 2023 As at 31st March, 2022
No. Shares % held No. Shares % held
Equity shares of H10 each fully
paid
Adani Transmission Limited 3,01,15,96,827 74.90% 3,01,15,96,827 74.90%
and its nominees (Promoters)
##
Qatar Holding LLC## 1,00,92,26,708 25.10% 1,00,92,26,708 25.10%
4,02,08,23,535 100.00% 4,02,08,23,535 100.00%
No. of equity shares pledged 4,02,08,23,529 4,02,08,23,529
to Lenders - 100% (PY 100%)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 269

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

15 Share Capital (Contd.)

15a Equity component of compound financial instrument (H in Crores)
As at As at
31st March, 2023 31st March, 2022
No. Shares No. Shares
3,82,17,610 (10,471,850) 11% Optionally convertible debentures 382.18 104.72
classified as Equity of H100 each
382.18 104.72
The Group has issued unlisted unsecured 11% optionally convertible debentures (OCD) of nominal value of H100
each to WRSS XXI (A) Transco Limited and Lakadia Banaskantha Transco Limited, which shall be optionally
converted at the option of the issuer in to equity shares of the Company after expiry of 4 years from the date of
issue, the date of allotment or at the option of holder in event of default. The holder can call upon the issuer to
redeem OCD in full on completion of 4 years and the issuer also is entitled to voluntarily redeem OCD in full upon
mutual discussion and agreement with the holders. The OCD rank pari pasu over other but will be subordinated
to the any Senior Secured Loan availed by the Company. Interest on OCD is repayable on maturity. The OCD
amounting to H159.38 Crores has been fair valued at the balance sheet date and accordingly H197.99 crores
(31st March, 2022 H54.66 Crores) has been classified as debt component and H382.18 crores (31st March, 2022
H104.72 crores) as equity component.

16 Other Equity (H in Crores)

As at As at
31st March, 2023 31st March, 2022
a. Capital Reserve 230.78 230.78
“Capital Reserve represents the gain arising on accounting of business combination, wherein on the acquisition-
date the net amounts of the identifiable assets acquired and the liabilities assumed exceeded the consideration
amount paid.

b. Effective portion of cashflow Hedge (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Opening Balance (265.77) (113.90)
Add : Effective portion of cash flow hedge for the year (65.55) (151.87)
Closing Balance (331.32) (265.77)
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes
in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative
gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are
recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or
loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-
financial hedged item.

c. Contingency Reserve Fund (H in Crores)

As at As at
31st March, 2023 31st March, 2022
Opening Balance 245.43 219.69
Transfer from Retained Earnings 7.36 25.74
Closing Balance 252.79 245.43
As per the provisions of MERC MYT Regulations read with Tariff orders passed by MERC, the Company being a
Distribution and Transmission Licensee, makes an appropriation to the Contingency Reserve Fund to meet with
certain exigencies. Investments have been made in Securities issued by Government of India.
 ADANI ELECTRICITY MUMBAI LIMITED
270 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

16 Other Equity (Contd.) (H in Crores)

As at As at
31st March, 2023 31st March, 2022
d. Share Premium Account 120.43 120.43
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with
the provisions of the Companies Act, 2013.

e. Retained Earnings (H in Crores)

As at As at
31st March, 2023 31st March, 2022
(Retained Earnings are the profits of the Company earned till date
net of appropriations)
Opening Balance 343.04 232.53
Add : Profit for the year 94.80 122.16
"Other Comprehensive Income arising from remeasurement (8.43) 14.09
of Defined Benefit Plans(net of tax)"
Transfer to Contingency Reserve Fund (7.36) (25.74)
Closing Balance 422.05 343.04
Total 694.73 673.91
The Board of Directors of the Company in their meeting held on 26 May, 2023, have declared interim dividend of
H0.85 per equity share of H10 each for the financial year 2022-23 amounting to H341.77 crores.

17 Borrowings
(At Amortised Cost) (H in Crores)
Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Secured
External Commercial Borrowings in Foreign
Currency
Senior Secured Note - 3.949% 8,158.69 7,512.41 - -
Sustainability Linked Notes - 3.867% 2,440.41 2,246.10 - -
Unsecured
External Commercial Borrowings in Foreign
Currency
Shareholders Affiliated Debts - 6.365% 2,289.52 2,106.14 - -
@ Inter Corporate Deposit from related party 33.96 37.37 - -
@ @ Optionally Convertible Debentures 197.99 54.66 - -
Total 13,120.57 11,956.68 - -
$$$ Includes processing fees netted of H110.68 Crores (31 March 2022 - H125.72 Crores)
@ The rate of interest for Inter corporate deposit is 11.05% till 31st December 2022 & 13.25% from 01st January
2023 with bullet repayment on 28th November 2025.
@@ The rate of interest for Optionally Convertible Debentures is 11.00% with repayment tenure of 4 years from
date of issue (i.e. starting from 28th July 2027 onwards).
During the year, company has accrued interest of H38.97 crore (Net of TDS H4.33 crores) {(31 March 2022- H40
crore (Net of TDS H04 Crore)} as per terms of agreement. Above amounts are inclusive of accrued interest.
 st
Notes to Consolidated Financial Statements for the year ended 31 March, 2023
17 Borrowings (Contd.)
Notes
Borrowings Security Terms of Repayment of Borrowings
Senior Secured Note - a) a first pari passu mortgage over certain Identified Immovable Properties; By way of bullet payment in February
3.949% (and related hedging b) a first pari passu charge on the movable assets of the Project (both present and future); 2030 with an obligation to prepay the
instruments) debt on occurrence of certain events.
c) a first pari passu charge on all book debts, operating cash flows, receivables (excluding
The Company can voluntarily prepay
Past Period Regulatory Assets, monies in the Debenture Liquidity Account and the post
the Bond on payment of premium.
distribution cash flows), commissions or revenues whatsoever arising out of the Project
Sustainability Linked Notes By way of bullet payment in July 2031
(both present and future);
- 3.87% (and related hedging with an obligation to prepay the debt
instruments) d) a first pari passu charge on the Accounts under the Project Accounts Deed (except the on occurrence of certain events. The
Excluded Accounts (which means the AEML PPRA Account, the Debenture Liquidity Company can voluntarily prepay the
Account, each of the AEML Post Distribution Cash Flow Accounts; any accounts opened for Bond on payment of premium.
the purpose of managing any Excluded Cash Flows; and the AEML Distributions Account))
Working capital short term Working Capital Short term loan
and amounts lying to the credit of such Accounts (both present and future);
loan outstanding as on 31st March, 2023 are
e) a first pari passu assignment in relation to Transmission License and Distribution License, repayable with in 03 months and rate
subject to approval from the MERC; of interest ranges from 8.90% to 8.95%.
f) a pledge over 100% of the entire paid up equity and preference share capital of the Company;
As at 31 Mar’2022 there were no
g) a non-disposal undertaking over immovable properties other than certain identified working capital short term loans
immoveable properties; outstanding
h) a non-disposal undertaking over the immoveable and moveable assets (including all book
debts, operating cash flows, receivables, commissions or revenues whatsoever) of the
Service Company (both present and future); and
i) a non-disposal undertaking over 100% of the equity and preference share capital of the
Service Company.
In addition to the aforesaid, the Collateral shall also include such security interest as may be
required to be created by other group entities of the Issuer in the future, and such collateral
may be shared in the same manner as aforementioned with other lenders of the Company,
and such future obligors.
Ranking of Security
The Collateral will be a first charge ranking pari passu among the debt security holders, without
any preference or priority and shall rank pari passu with all the senior secured debt of the Company
in accordance with the Senior Secured Note Documents and the intercreditor agreement.
Shareholders Affiliated (i) First-ranking fixed charge over all its present and future right, title, benefit and interest in Shareholders Affiliated Debts are
Debts - 6.365% the Excluded Loan Accounts repayable commencing from February
(ii) First-ranking floating charge over all of its present and future right, title, benefit and interest 2027 through February 2040 with
in the equity distribution account” an obligation to prepay the debt on
occurrence of certain events. The
FINANCIAL STATEMENTS
STATUTORY REPORTS
CORPORATE OVERVIEW

Company can voluntarily prepay the

debt on payment of premium.
271
 ADANI ELECTRICITY MUMBAI LIMITED
272 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

18 Trade Payables (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
(A) Total outstanding dues of micro enterprises - - 42.87 25.07
and small enterprises; and
(B) Total outstanding dues of creditors other 32.76 32.22 1,551.97 1,465.88
than micro enterprises and small enterprises.
32.76 32.22 1,594.84 1,490.95
This information as required to be disclosed under Micro and Small Enterprises, to whom the Company owes
dues (including interest on outstanding dues), which are outstanding as at the Balance Sheet date. The above
information has been determined to the extent such parties have been identified on the basis of information
available with the Company. This has been relied upon by the auditors.

(H in Crores)
As at As at
31st March, 2023 31st March, 2022
(a) The principal amount remaining unpaid to any supplier at the 236.64 104.41
end of each accounting year (including payable for Property,
Plant & equipment)
(b) Interest due on principal amount remaining unpaid to any 0.67 0.62
supplier at the end of each accounting year
(c) The amount of interest paid by the buyer in terms of section - -
16 of the Micro, Small and Medium Enterprises Development
Act, 2006 (27 of 2006), along with the amount of the payment
made to the supplier beyond the appointed day during each
accounting year.
(d) The amount of interest due and payable for the period of 0.67 0.62
delay in making payment (which has been paid but beyond the
appointed day during the year) but without adding the interest
specified under the Micro, Small and Medium Enterprises
Development Act, 2006;
(e) The amount of interest accrued and remaining unpaid at the 0.67 0.62
end of each accounting year; and
(f) The amount of further interest remaining due and payable even 0.67 0.62
in the succeeding years, until such date when the interest dues
above are actually paid to the small enterprise, for the purpose
of disallowance of a deductible expenditure under section 23
of the Micro, Small and Medium Enterprises Development Act,
2006.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 273

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

18 Trade Payables (Contd.)

Trade Payables ageing schedule
Particulars Outstanding for following periods from due date of payment*
Not Due <1 year 1-2 years 2-3 years More than Total
3 years
As at 31st March, 2023
(a) MSME 26.07 10.79 1.67 1.27 3.07 42.87
(b) Others 903.28 273.23 156.50 97.89 61.75 1,492.66
(c) Disputed dues – MSME - - - - - -
(d) Disputed dues - Others - - 92.07 - - 92.07
Total 929.35 284.02 250.24 99.16 64.82 1,627.60
As at 31st March, 2022
(a) MSME 9.77 9.49 2.10 2.46 1.25 25.07
(b) Others 160.59 1,058.51 127.80 49.58 9.55 1,406.03
(c) Disputed dues – MSME - - - - - -
(d) Disputed dues - Others - 92.07 - - - 92.07
Total 170.36 1,160.07 129.90 52.04 10.80 1,523.17
* Ageing for provisions have been considered based on transaction date.

19 Lease Liabilities (H in Crores)

Non-Current Current
As at 31 st
As at 31 st
As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Lease Obligation 14.47 26.25 16.27 18.59
14.47 26.25 16.27 18.59

20 Other Financial Liabilities

(At Amortised Cost) (H in Crores)
Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Interest accrued but not due on borrowings - 1.58 126.04 113.91
Payable towards purchase of PPE
(A) Total outstanding dues of micro enterprises - - 194.44 80.36
and small enterprises; and
(B) Total outstanding dues of creditors other - - 383.32 236.28
than micro enterprises and small enterprises.
Security Deposit from Consumers - - 507.02 471.70
Regulatory Liabilities other than Distribution - - - 2.94
Security Deposit from Customers / Vendors 0.34 0.18 14.07 15.25
Other Financial Liabilities - - 7.94 -
Derivative Instruments designated in hedge 3.71 66.02 - 57.07
accounting relationship
4.05 67.78 1,232.83 977.51
# Refer footnote to Note 17 for security/charges created on hedging instruments.
 ADANI ELECTRICITY MUMBAI LIMITED
274 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

21 Provisions (H in Crores)
Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Provision for Gratuity 153.81 168.77 29.18 34.01
Provision for Compensated absences 338.26 399.55 68.07 29.11
Provision for Other Employment Benefits 17.14 18.87 1.82 3.16
Total 509.21 587.19 99.07 66.28

22 Other Liabilities (H in Crores)

Non-Current Current
As at 31st As at 31st As at 31st As at 31st
March, 2023 March, 2022 March, 2023 March, 2022
Deferred Revenue - Service Line Contributions 265.64 245.47 12.90 11.12
from Consumers
Statutory dues payable - - 217.88 215.95
Advances From Customer - - 64.56 66.74
Other Payables - - 6.51 3.18
265.64 245.47 301.85 296.99

23 Borrowings
(At Amortised Cost) (H in Crores)
As at As at
31st March, 2023 31st March, 2022
Secured loans from banks 500.00 -
Working capital short term loan 500.00 -

Security and Rate of Interest

(i) For Security of Working Capital Loans - (Refer Note No 17)
(ii) For working capital outstanding on 31st March, 2023, the rate of interest for Secured loans from banks ranged
from 8.90% TO 8.95%. As at 31st March,2022 there are no working capital or short term loans outstanding
(iii) There are no charges or satisfaction which are to be registered with Registrar of Companies beyond the
statutory period.
(iv) The Company has been sanctioned working capital from banks on the basis of security of current assets.
The Company in this regard has been duly submitting with all such banks from whom such facilities are
taken, the quarterly statements comprising details of said current assets viz. raw material, stores and spares,
finished goods, advances for power purchases and coal, book debts (including unbilled revenue), other
receivable (<90 days) and regulatory assets recoverable within 1 year reduced by relevant trade payables (i.e
net of provisions, regulatory payables and other payables). The said quarterly statements are in agreement
with the unaudited books of account of the Company of the respective quarters based on draft figures at
the point of time of reporting and there are no material discrepancies.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 275

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

24 Revenue from Operations (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Income from Sale of Power and Transmission Charges
Income from Sale of Power and Transmission Charges (Net) 8,125.95 6,673.94
(Less)/Add: Income to be adjusted in future tariff determination 21.26 3.59
(Net)
8,147.21 6,677.53
b) Other Operating Income
Insurance Claim Received - 2.55
Income in respect of Services rendered 48.41 42.04
Sale of Coal Rejects / Fly Ash 13.90 16.59
Street Light Maintenance Charges 119.73 141.77
Amortisation of Service Line Contribution 11.86 10.30
Miscellaneous Revenue 16.17 17.40
210.07 230.65
c) Sale of Traded Goods
Sale of Traded Goods 3.68 0.76
3.68 0.76
Total 8,360.96 6,908.94

Details of Revenue from Contracts with Customers (disagrregated by type and nature of prodcut
or services)
(H in Crores)
Particulars For the year ended For the year ended
31st March, 2023 31st March, 2022
Income from Sale of Power 7,786.05 6,334.58
Income from Transmission Charges (Net) 361.16 342.95
Income in respect of Services rendered 48.41 42.04
Sale of Coal Rejects / Fly Ash 13.90 16.59
Street Light Maintainence Charges 119.73 141.77
Sale of Traded Goods 3.68 0.76
Add: Cash Discount/Rebates etc 41.65 31.29
Total Revenue as per Contracted Price 8,374.58 6,909.98
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.
 ADANI ELECTRICITY MUMBAI LIMITED
276 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

24 Revenue from Operations (Contd.)

Contract Balances (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Contract Assets
Recoverable from Consumers
Current 18.33 -
Total Contract Assets 18.33 -
Contract liabilities
Liabilities towards Consumers
Current - 2.94
Total Contract Liabilities - 2.94
Receivables
Trade Receivables (Gross) 453.66 487.24
Unbilled Revenue for passage of time 597.55 507.56
Regulatory Assets other than Distribution 18.33 -
(Less): Advance from Consumers (64.56) (66.74)
(Less): Allowance for Doubtful Debts (1.39) (1.39)
Net Receivables 1,003.59 926.67

Contract assets
Contract asset is the right to consideration in exchange for goods or services transferred to the customer.
Contract Assets are transferred to receivables when the rights become unconditional.
Contract liabilites
A Contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer, If the constomer pays
contribution before the Company trasfers goods or services to the customers, a contract liability is recoginised
when the payment is made or the payment is due (whichever is earlier). Contract liabilites are recoganised as
revenue when the perforance of obligation is satisfied.
Significant changes in the contract assets and the contract liabilities balances during the year are as follows :
(H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Opening Balance
Recoverable from consumers - -
Liabilities towards consumers 2.94 6.53
A 2.94 6.53
Income to be adjusted in future tariff determination (Net) (21.27) (3.59)
B (21.27) (3.59)
Closing Balance
Recoverable from consumers 18.33 -
Liabilities towards consumers 2.94
(A+B) 18.33 2.94
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 277

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

25 Other Income (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Interest Income
On Financial Assets carried at Amortised Cost
Bank Deposits 92.78 106.31
Overdue Trade Receivables 20.53 22.45
Contingency Reserve Fund Investment - Non Current - 13.30
Contingency Reserve Fund Investment - Current 15.46 0.53
On Intercorporate Deposits* 104.73 114.40
Other interest 29.32 51.50
Interest on Security Deposits - Lease 0.32 0.85
b) Gain/(Loss) on Investments
Gain On Sale / Fair Value Of Current Investments Measured at 4.73 1.13
FVTPL
c) Other Non-operating Income
Bad Debts Recovery 17.89 4.95
Sale of Scrap 4.10 11.79
Rental Income 0.47 0.27
Delayed Payment Charges 35.49 22.90
Foreign Exchange Gain (net) 0.03 -
Profit / (Loss) on Sale of Assets 2.78 0.42
Incentive Received - 1.44
Sundry credit balances written back 2.44 57.41
Total 331.07 409.65
* Interest Income on Inter Corporate Deposit amounting to H Nil (31 March 2022: H0.68 Crores) has been taken
to capital work in progress.

26 Employee Benefits Expenses (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
# Salaries, Wages & Bonus 846.18 686.41
Contribution To Gratuity 32.48 48.07
Contribution to Provident and Other Funds 55.56 57.52
Contribution to Superannuation Fund 7.71 7.76
Compensated absences 17.78 42.00
Staff Welfare Expenses 82.48 99.02
1,042.19 940.78
Less : Staff Cost Capitalised (164.19) (142.10)
Total 878.00 798.68
# Net of wage provisions no longer required written back of H59.43 crores (31 March 2022 : H38.74 Crores)
A Special Voluntary Retirement Scheme (SVRS) 2023, was rolled out for employees of the Company from March
28, 2023, to April 15, 2013. Amount charged during the year towards expected payout in this regard and included
above are H211.72 crores (31 March 2022 : HNil).
 ADANI ELECTRICITY MUMBAI LIMITED
278 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

27 Finance costs (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
a) Borrowings - Amortised Cost
Rupee Term Loans 43.30 5.14
$ Senior Secured Note 350.87 322.04
$ Shareholders Affiliated Debts 150.67 138.00
$ External Commercial Borrowings (Note 1 below) - 47.99
$ Sustainability Linked Notes 103.13 66.12
Working Capital Loans 71.43 44.44
Foreign Exchange Fluctuation Gain(net)- (Note 3 below) 352.23 155.64
Borrowings
Interest - Hedging Cost 430.78 400.24
Others
Security Deposits From Consumers at 20.03 18.71
amortised cost
Interest on lease obligation 4.48 6.25
Interest - Others 1.13 0.24
1,528.05 1,204.81
Less : Interest Cost Capitalised (95.17) (45.88)
1,432.88 1,158.93
b) Other Borrowing Costs
Other Finance Cost 1.38 1.45
Total 1,434.26 1,160.38
Note :
$ In Foreign Currency,
1 Includes H Nil (31 March 2022: H28.45 Crores) (unamortised upfront fees) charged off on settlment of
External Commercial Borrowings.
2 The weighted average capitalisation rate on the Company’s general borrowings is 8.76% (31 March 2022:
8.76%) per annum.
3 Including Mark to Market gain of H656.18 Crores (31 March 2022: gain of H252,56 Crores) on Derivative
Instruments designated in hedge accounting relationship.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 279

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

28 Other Expenses (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
Consumption Of Stores & Spares 51.42 56.59
Repairs & Maintenance
- Plant & Machinery 347.57 329.63
- Buildings 15.75 20.22
- Others 34.46 26.18
Expenses in respect of Services rendered 35.49 38.14
@ Short Term Lease Rental of Land,Building,Plant & Machinery 16.13 12.62
Etc
Vehicle Hire Charges 20.48 16.97
Rates and Taxes 11.41 19.44
Legal & Professional Expenses 166.47 149.40
Directors' Sitting Fees 0.08 0.08
Bank Charges 6.37 6.04
@@ Payment to Auditors 1.87 1.74
Communication Expenses 8.68 7.96
Travelling & Conveyance Expenses 13.90 8.45
Insurance Expenses 17.75 9.76
License fees 1.96 1.74
Security Charges 31.06 31.17
Seminar & Training Expenses 3.16 3.17
Software Expenses 40.60 18.15
Share Issue Expenses 0.18 -
Provision for Doubtful Deposits 5.58 -
Bad debt Write off (Refer Note 12.2) 15.21 18.31
Bill Print/Collection/ Distribution 13.00 11.88
Foreign Exchange Fluctuation Loss(net) 0.48 1.20
Call Center Expenses 11.99 8.37
Donations 0.60 0.30
@@@ Corporate Social Responsibility Expenses 7.65 5.69
Electricity Expenses 0.46 0.51
Printing & Stationery 0.96 1.38
Advertisement & Publicity 27.31 9.26
Water charges 5.23 3.68
Other Miscellaneous Expenses 27.44 20.27
Total 940.70 838.30
@ Lease Rentals inrespect of low value assets is immaterial.
 ADANI ELECTRICITY MUMBAI LIMITED
280 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

28 Other Expenses (Contd.)

@@ (i) Payment to auditors (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
As auditor:
Statutory Audit Fees 1.33 1.32
# Other Services 0.20 0.14
Out of Pocket Expenses 0.05 0.01
Applicable taxes 0.29 0.27
1.87 1.74
# Excluding fees of H Nil {PY 1.25 crores (plus taxes 0.22 crores)} for services towards Sustainability linked
bond issue which is netted off in borrowings for purposes of calculating Effective Interest Rate.

@@@ Details of Corporate Social Responsibilities under Section 135 of Companies Act
(H in Crores)
Particulars For the year ended For the year ended
31st March, 2023 31st March, 2022
(i) Amount required to be spent by the company during the year 7.61 5.65
(ii) Total of previous years shortfall amounts (0.04) 0.72
(iii) Amount of expenditure incurred:
(a) Construction or acquisition of any assets - -
(b) on purpose other than (a) above 0.23 0.28
- Donation to related party trust (not controlled by the 7.42 6.13
Company)
Total amount of expenditure incurred 7.65 6.41
(iv) (Excess) / Shortfall at the end of the year (0.08) (0.04)
(v) Provision made towards CSR expenditure - (0.04)
(vi) Reason for shortfall : Nil (31 March 2022 : Nil)
(vii) Nature of CSR activities : Primary Education, Community Health and Sanitation, Sustainable Livelihood
Development and Urban / Rural Infrastructure Development.

29 Tax Expenses
1 Income Taxes recognised in the statement of profit & loss (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Current Income Tax (MAT) 27.20 47.78
Deferred Tax 81.26 101.18
108.46 148.96
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 281

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

29 Tax Expenses (Contd.)

2 Income Tax recognised in other comprehensive income (H in Crores)
For the year ended For the year ended
31st March, 2023 31st March, 2022
Current Income Tax
- Remeasurement of Defined Benefit Plans 8.38 3.00
Total income tax recognised in other comprehensive income 8.38 3.00

Bifurcation of the income tax recognised in other

comprehensive income into:
Items that will be reclassified to statement of profit and loss - -
Items that will not be reclassified to statement of profit and 8.38 3.00
loss
8.38 3.00
The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit Before Tax 203.26 271.12
Income tax using the company's domestic tax rate @ 34.944% 71.16 94.74
Tax Effect of :
- Non deductible Expenses 2.88 2.09
- MAT credit not recognised 27.20 47.78
- Tax on other Items 7.22 4.35
- Deferred Tax Asset on unabsorbed Depreciation in respect - -
of earlier years
Income tax expense recognised in statement of profit and loss 108.46 148.96
Notes
The Union Cabinet on 20 November 2019 approved the proposal for introducing the Taxation Laws
(Amendment) Bill, 2019 in order to replace the Ordinance, 2019. Accordingly, on 25 November 2019, the
Taxation Laws (Amendment) Bill, 2019 (Bill) was introduced which received the assent of the President of
India on 12 December 2019. The Taxation Laws Amendment Bill inserted Section 115BAA in the Income Tax
Act, 1961 which provides domestic companies a non-reversible option to pay corporate tax at reduced rates
effective 01 April, 2019 subject to certain conditions. The Company has decided not to avail the benefit
provided under the above Bill, however the Company would evaluate its option in the future based on
business developments. .

Unrecognised unused tax credits (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
Unrecognised Tax Credits 35.58 50.78
35.58 50.78
 ADANI ELECTRICITY MUMBAI LIMITED
282 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

29 Tax Expenses (Contd.)

The expiry of unrecognised unused MAT credits is as described below: (H in Crores)
As at As at
31st March, 2023 31st March, 2022
Within One Year - -
Greater than one year, less than five years - -
Greater than five years 229.59 194.01
No expiry date - -
Total 229.59 194.01

3 Deferred Tax (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
Deferred tax Assets 1,499.34 1,335.37
Deferred tax Liabilities 1,759.95 1,514.72
Net Deferred Tax Assets / (Liabilities) (260.61) (179.35)

2022-23
Opening Recognised in Closing
Balance Profit & Loss Balance
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits, Advances 7.70 0.96 8.66
and property tax payable
Provisions for employee benefits and others 214.58 (11.07) 203.51
Unabsorbed Depreciation 1,113.10 174.08 1,287.17
1,335.37 163.97 1,499.34
Deferred Tax liabilities in relation to
Property, Plant & Equipment 1,514.72 245.23 1,759.95
1,514.72 245.23 1,759.95
Deferred Tax Asset/(Liability) (Net) (179.35) (81.26) (260.61)

2021-22
Opening Recognised in Closing
Balance Profit & Loss Balance
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits and 5.67 2.03 7.70
Advances
Provisions for employee benefits and others 201.89 12.69 214.58
Unabsorbed Depreciation 881.16 231.94 1,113.10
1,088.71 246.66 1,335.37
Deferred Tax liabilities in relation to
Property, Plant & Equipment 1,166.88 347.84 1,514.72
1,166.88 347.84 1,514.72
Deferred Tax Asset/(Liability) (Net) (78.17) (101.18) (179.35)
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 283

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

30 Earnings Per Share (EPS) (H in Crores)

For the year ended For the year ended
31st March, 2023 31st March, 2022
(A) Before net Movement in Regulatary Deferral Balance
Profit / (Loss) attributable to Equity Shareholders 94.80 122.16
Add/(Less): Net Movement in Regulatory Deferral 1,035.58 682.47
Balance
Income tax on Regulatory Income / (expense) (180.94) (119.24)
Regulatory Income / (expense) (net of tax) 854.64 563.23
Net Profit / (Net Loss) excluding regulatory Income (759.84) (441.07)
Number of Weighted Average Equity Shares, No 4,02,08,23,535 4,02,08,23,535
outstanding during the year for basic / diluted EPS
Nominal Value of Equity Shares H 10.00 10.00
Basic / Diluted Earnings per Share before net H (1.89) (1.10)
Movement in Regulatary Deferral Balance
(B) After net Movement in Regulatary Deferral Balance
Profit / (Loss) attributable to Equity Shareholders 94.80 122.16
Number of Weighted Average Equity Shares, No. 4,02,08,23,535 4,02,08,23,535
outstanding during the year for basic EPS
Nominal Value of Equity Shares H 10.00 10.00
Basic / Diluted Earnings per Share after net H 0.24 0.30
Movement in Regulatary Deferral Balance

31 In accordance with the requirements of Ind AS 36 “Impairment of Assets”, Transmission Cash Generating
Unit (“TCGU”) which includes carrying value of Transmission License having indefinite useful life being
Transmission License (H981.62 crores), has been tested for impairment as at 31st March, 2023 wherein,
recoverable amount of the TCGU has been determined applying value in use approach. The value in use of
the TCGU has been determined using Discounted Cash Flow Method (DCF).
In deriving the recoverable amount of the TCGU a discount rate (post tax) of 9.50 % (31 March 2022: 9.10%)
per annum has been used. In arriving at the recoverable amount of the TCGU , financial projections have
been developed for 6 years (31 March 2022: 6 years) and thereafter in perpetuity considering a terminal
growth rate of 1 % (31 March 2022: 1.5%) per annum.
Based on the results of the TCGU impairment test, the estimated value in use of the TCGU was higher than
its carrying amount, hence impairment provision recorded during the current year is H Nil (31 March 2022
- H Nil) Crore. Management believes that any reasonably possible change in the key assumptions on which
recoverable amount is based would not cause the aggregate carrying amount to exceed the fair value of
the Transmission License.
The key assumptions used in determining the recoverable amount of TCGU are as follows :
(i) Discount Rate: 9.50 % (31 March 2022: 9.10 %) Post-Tax Discount rate has been derived based on current
cost of borrowing and equity rate of return in line with the current market expectations
(ii) Capital expenditure / Capitalisation: Capital expenditure and capitalisation for 6 years (31 March 2022:
6 years) is estimated based on management projections subject to regulatory approval and thereafter
H500 crores per annum (31 March 2022: H500 crores per annum)
 ADANI ELECTRICITY MUMBAI LIMITED
284 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

32 Leases
(i) Disclosure under Ind AS 116 Leases:
a) The following is the movement in Lease liabilities during the year ended 31st March, 2023
(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Opening Balance 44.84 93.59
Interest on Lease Liabilities 4.48 6.25
Lease Liabilities on account of Leases entered / terminated - (32.63)
during the year
Payments of Lease Liabilities / Other Adjustments (18.58) (22.37)
Closing Balance (refer note 19) 30.74 44.84

b) Where the Group is a leassee :

The Company has taken office premises on lease. Generally leases are renewed on mutual consent and
at a prevalent market price and sub lease is restricted.
Interest Expenses on lease liabilities amounts to H4.48 crores (31st March, 2022 H6.25 crores)
The expense relating to payments not included in the measurement of the lease liability and recognised
as expenses in the statemet of profit and loss during the year is as follows :
Low Value leases - Immaterial
Short-term leases - H16.13 crores (31st March, 2022 H12.62 crores)
Total Cash outflow for leases amounts to H34.71 Crores (31st March, 2022 H34.99 crores) during the year
including cash outflow short term and low value leases.

c) The Group had a 25 year long term Power Purchase Agreement (PPA) with Vidharbha Industries Power
Limited (VIPL), wherein the Group has committed to purchase the entire output generated from VIPL’s
generating station located at Butibori. In terms of the PPA, the Group subject to a minimum guaranteed
plant availability (determined on a yearly basis) is liable to pay subject to MERC approval a fixed monthly
capacity charge and a variable charge towards the cost of fuel.VIPL was obligated to make the plant
available for generation for a minimum period of time (determined on a yearly basis) and the option as
regards the timing of availability was at the discretion of VIPL.
The Group on assessment of the above arrangement has concluded, that considering the Group does
not have the right to direct the use of the asset , the above arrangement does not qualify to be lease
under IND AS 116.
During FY 2019-20, the Group had terminated the above PPA due to non-performance of obligations
under the PPA by VIPL, such termination has been upheld by MERC / Appellate Tribunal of Electricity
(“ATE”). VIPL has filed an appeal before the Hon’ble Supreme Court against the said order issued by the
ATE. The proceedings are ongoing with the Hon’ble Supreme Court.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 285

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

33 Contingent liabilities and Commitments (H in Crores)

Particulars As at As at
31st March, 2023 31st March, 2022
(A) Contingent liabilities :
Claims against the Group not probable and hence not
acknowledged as debts consists of : -
(i) Demand disputed by the Group relating to Service tax on 353.55 353.55
street light maintaince, wheeling charges and cross subsidy
surcharges - Refer note 3
(ii) Claims raised by the Government authorities towards unearned 127.65 127.65
income arising on alleged tranfer of certain land parcels - Refer
note 3
(iii) Way Leave fees claims disputed by the Group relating to rates 28.43 28.43
charged - Refer note 3
(iv) Property related disputes - Refer note 3 2.59 2.59
(v) Other claims against the Group not acknowledged as debts. 2.12 2.12
(vi) Claims raised by Vidharbha Industries Power Limited (VIPL) in 1,381.28 1,381.28
respect of increase in fuel cost for the financial year ended 31st
March, 2019 - Refer Note 3 and 32(i)(c)
(vii) Demand disputed by the Company relating to Standby Charges 213.79 -
payable - Refer Note 4
(vii) Claims pretaining to interest in respect of certain regulatary - @@
Liabilities -Refer Note 3
(viii) Liability in respect of disposal of bottom Ash - @@
(ix) Liability in respect of termination of power purchase lease @@ @@
agreement
2,109.41 1,895.62
@@ Amount not determinable
Notes:
1 Amounts in respect of employee related claims/disputes, consumer related litigation, regulatory matters is
not ascertainable.
2 Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions
pending at various forums/authorities.
3 In terms of the Share Purchase Agreement entered into by the Company, ATL with RINFRA, in the event the
above matters are decided against the Company and are not recoverable from the consumers, the same
would be recovered from RINFRA.
4 Appeal has been filed by the Company under Section 111 of the Electricity Act, 2003, challenging the
Order dated 31 March 2023 passed by the Maharashtra Electricity Regulatory Commission directing levy of
Standby charges by Maharashtra State Electricity Distribution Company Limited.
5 The above Contingent Liabilities (except interest payable on vii) to the extent pertaining to Regulated
Business, which on unfavourable outcome are recoverable from consumers subject to MERC approval,
The Group, in respect of the above mentioned Contingent Liabilities has assessed that it is only possible but not
probable that outflow of economic resources will be required.
 ADANI ELECTRICITY MUMBAI LIMITED
286 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

33 Contingent liabilities and Commitments (Contd.)

(B) Capital Commitments : (H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
(i) Estimated amount of contracts remaining to be executed on 4,039.29 712.37
capital account and not provided for
4,039.29 712.37
(ii) Other Commitments :
a) For procurement of Hybrid (Solar/WInd) power on long term basis, AEML has entered into a long term 25
years PPA of 700 MW with a group entity (Adani Hybrid Energy Jaisalmer Four Limited) to purchase 700
MW of Wind Solar Hybrid Renewable Power at H3.24 per unit.
b) AEML has entered into a Power Purchase Agreement for procurement of Power 500 MW on Medium term
basis, with a group entity (Adani Enterprises Limited) at H5.98 Per Unit.
(C) On 21 August, 2022, RINFRA has filed a Consolidated statement of arbitration claims under the Share
Purchase Agreement. The Management of the Company believes that the said claims are not tenable.
The Management would follow the due process laid out under the Share Purchase Agreement for dispute
resolution and will respond with facts and present its own claims against RINFRA in the arbitration
proceedings.
The Hon’ble Supreme Court, while hearing the case in respect of the issues between Vidarbha Industries
Power Limited (VIPL), RInfra and AEML, had been appraised that both VIPL and RInfra have raised similar
issues before the Hon’ble Supreme Court and Arbitrator respectively. Therefore, the Hon’ble Supreme Court,
considering the submission made by parties, passed a direction vide order dated 22nd November 2022, to
stay the Arbitration Proceedings in view of pendency of the present case.

34 Maharashtra Electricity Regulatory Commission (MERC) in its order dated 26 December 2022, subject to
certain conditions and based on certain valuation principles laid down by it, has approved the transfer of
certain assets to AEML SEEPZ Limited (ASL) Based on the principles laid down by MERC, ASL has filed the
Petition for approval of tariff before MERC, wherein ASL had proposed to operationalize its business from
01 April, 2023. ASL has also filed the Petition for approval of switchover/ changeover protocol (for shifting
of consumers from other Distribution Licensees to ASL and vice versa in SEEPZ area- Case No. 21 of 2023)
before MERC. Both the Petitions are pending before MERC.

35 Maharashtra Electricity Regulatory Commission (“MERC”) vide its order dated 31st March, 2023, has approved
the Truing -up of Annual Revenue Requirement (ARR) for FY 2019-20 to FY 2021-22, Provisional Truing -up of
ARR for FY 2022-23 and ARR and Tariff for the period from 2023-24 to 2024-25 for Generation, Transmission
and Distribution Business of the Company (MYT Order). Consequent to the above order, the Company has
recognised net income of H242.76 Crores {Generation & Distribution business Combined H214.81 Crores and
Transmisson Business H27.95 Crores} during the quarter and for the year ended 31st March, 2023.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 287

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

36 Transaction with Struck Off Companies

Name of the struck off company Nature of Balance Relation with
transactions with outstanding the struck off
struck off company company, if any,
to be disclosed
As at 31st March, 2023
Payables
Saptagiri Electrical Engineering Purchase of Service 0.02 Vendor
Inavit Engineering & Consulting Pvt Purchase of Service 0.01 Vendor
Sanjyot Laser Pvt Ltd Purchase of Service 0.01 Vendor
Receivables
Shree Sai Seva Kripa Sra Socaiety Ltd Sale of Power 0.01 Consumer
Shanti Sagar Realty India Private Ltd Sale of Power 0.01 Consumer
N R Enterprises Ltd Sale of Power 0.01 Consumer
Parekh Bldg Dev P Ltd Sale of Power 0.01 Consumer
Comet Plast Machinery P Ltd Sale of Power 0.01 Consumer
Others - 797 Parties < 50K Sale of Power 0.15 Consumer
As at 31st March, 2022
Payables
Silent Sentinels Electrical Consultant Pvt Ltd Purchase of Service 0.01 Vendor
Receivables
M S Gem Printers Pvt Ltd Sale of Power 0.13 Consumer
B B Consulting N Eng Pvt Ltd Sale of Power 0.01 Consumer
Uday Real Tdrs Pvt.Ltd Sale of Power 0.01 Consumer
Unilink Tel Services (I) Pvt. Ltd. Sale of Power 0.02 Consumer
Flex Foot Wear India Pvt. Ltd. Sale of Power 0.01 Consumer
Kool Dring & Pack Private Limited Sale of Power 0.02 Consumer
SSV Developeres & Indian Holiday Resort Private Sale of Power 0.10 Consumer
Limited
Others - 361 Parties < 50K Sale of Power 0.09 Consumer

37 During the quarter ended 31st March 2023, a short seller report was published in which certain allegations
were made involving Adani Group Companies, including Adani Transmission Limited (“”ATL””) and its
subsidiaries. A writ petition was filed in the matter with the Hon’ble Supreme Court (“”SC””), and during
hearing the Securities and Exchange Board of India (“”SEBI””) has represented to the SC that it is investigating
the allegations made in the short seller report for any violations of the various SEBI Regulations. The SC
had constituted an expert committee for assessment of the extant of regulatory framework and volatility
assessment on Adani stocks, as also to investigate whether there have been contraventions and regulatory
failures on minimum shareholding and related party transactions pertaining to Adani group. The expert
committee, post the reporting date, issued its report on the given remit, wherein no regulatory failures are
observed, while SEBI continues its investigations.

Separately, to uphold the principles of good governance, Adani Group has undertaken review of transactions
(including those for ATL and its subsidiaries) with parties referred in the short seller’s report including
relationships amongst other matters and obtained opinions from independent law firms. These opinions
confirm that ATL and its subsidiaries are in compliance with the requirements of applicable laws and
regulations. Considering the matter is subjudice at Supreme Court, no additional action is considered
prolific and pending outcome of the investigations as mentioned above, the financial results do not carry
any adjustments.
 ADANI ELECTRICITY MUMBAI LIMITED
288 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure

As per the Ind AS 24, disclosure of transactions with related parties, are given below:
(A) Ultimate Holding Entity S. B. Adani Family Trust (SBAFT)
(B) Holding Company Adani Transmission Limited
(C) Key Management Personnel: Mr. Kandarp Patel, Managing Director & CEO
Mr. Kunjal Mehta, Chief Financial Officer (w.e.f. 02.05.2022)
Mr. Rakesh Tiwary, Chief Financial Officer (upto 31.03.2022)
Mr. Jaldhi Shukla, Company Secretary
Mr. Anil Sardana, Director
Mr. Sagar Adani , Director
Mr. K Jairaj, Independent Director
Ms. Chitra Bhatnagar, Independent Director (upto 27.10.2021)
Ms. Chandra Iyengar (w.e.f 27.10.2021)
Mr.Quinton Choi, Non Executive Director
Mr. Kenneth McLaren, Non Executive Director
(D) Entity having significant influence Qatar Holding LLC
(E) Enterprises over which (A) or (B) or (C) or (D) above have significant influence :
(where transactions have taken place during the year and previous year / balance outstanding)
Adani Power Limited
Adani Enterprises Limited
Adani Properties Private Limited
Karnavati Aviation Private Limited
Adani Power (Mundra) Limited (amalgamated in to Adani Power
Limited w.e.f. 8 February 2023)
Adani Green Energy Limited
Mundra Solar Pv Limited
Sunbourne Developers Private Limited
Adani Institute For Education & Research
Adani Electricity Navi Mumbai Limited
Maharashtra Eastern Grid Power Transmission Co. Limited
Power Distribution Services Limited
Adani Power Maharashtra Limited (amalgamated in to Adani
Power Limited w.e.f. 8 February 2023)
Adani Total Gas Limited
Adani Hybrid Energy Jaisalmer Four Limited
Adani Foundation
Adani Hospitals Mundra Private Limited
Mumbai International Airport Limited (w.e.f 13.07.2021)
Adani Transmission (India) Limited
Superheights Infraspace Private Limited
Adani Power Rajasthan Limited (amalgamated in to Adani Power
Limited w.e.f. 8 February 2023)
Ahmedabad International Airport Limited
Mangaluru International Airport Limited
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 289

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.)

Adani Ports And Special Economic Zone Limited
Valuable Properties Private Limited
Adani Krishnapatnam Port Limited
Adani Petronet (Dahej) Port Limited
Adani Airport Holdings Limited
Ambuja Cements Limited
Guwahati International Airport Limited
PLR Systems Private Limited
Mundra Petrochem Limited
Dighi Port Limited
Adani New Industries Limited
Adani Sportsline Private Limited
SBSR Power Cleantech Eleven Private Limited
Adani Renewable Energy Holdiing Twelve Limited
Alpha Design Technologies Private Limited
Belvedere Gold and Country Club Private Limited
ATL HVDC Limited
WRSS XXI Transco Limited
Lakadia Banaskantha Transco Limited
(G) Employee Benefits Funds : AEML Gratuity Fund
AEML Superannuation Fund
Adani Electricity Mumbai Infra Limited Officers Superannuation
Scheme

( H in Crores)
Nature of Transaction Name of Related Party For the period ended For the year ended
31st March,2023 31st March,2022
Inter Corporate Deposit (ICD) Adani Properties Private Limited 1,000.00 -
Given
Inter Corporate Deposit (ICD) Adani Properties Private Limited 2,040.00 -
Received Back
Inter Corporate Deposit (ICD) Adani Transmission Limited - 23.89
Received ATL HVDC Limited 0.23 37.37
Interest Expenses on ICD Adani Transmission Limited - 1.22
ATL HVDC Limited 3.60 1.76
Amount received towards WRSS XXI Transco Limited 208.70 18.25
issue of Optional Lakadia Banaskantha Transco 176.37 140.73
Convertable Debentures Limited
Interest Expenses on WRSS XXI Transco Limited 15.45 0.14
Optional Convertable Lakadia Banaskantha Transco 23.38 0.31
Debentures Limited
Inter Corporate Deposit (ICD) Adani Transmission Limited - 35.01
Repaid ATL HVDC Limited 8.47 -
 ADANI ELECTRICITY MUMBAI LIMITED
290 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the period ended For the year ended
31st March,2023 31st March,2022
Interest expenses on Qatar Holding LLC 147.14 134.47
Shareholders Affiliated
Debts
Interest Income on ICD Adani Properties Private Limited 104.73 114.40
(Loans)
Contribution to Employee AEML Gratuity Fund 0.98 1.08
Benefits AEML Superannuation Fund 7.71 7.76
Purchase of Services Karnavati Aviation Private 9.00 9.00
Limited
Adani Power (Mundra) Limited 0.00 -
Adani Enterprises Limited 85.73 86.02
Power Distribution Services 15.00 15.00
Limited
Adani Petronet (Dahej) Port Ltd 4.04 -
Mundra Solar Pv Limited 0.01 0.00
Alpha Design Technologies 3.54 -
Private Limited
Belvedere Gold and Country Club 0.01 -
Private Limited
Adani Hospitals Mundra Private 0.04 0.90
Limited
Services Given Adani Institute For Education & 0.07
Research
Sale of Goods Adani Transmission (India) - 0.01
Limited
Employee advance Adani Airport Holdings Limited 0.62 -
transferred Out
Employees benefits Adani Enterprises Limited 0.11 -
Received Adani Ports And Special 0.24 -
Economic Zone Ltd
Adani Total Gas Limited - 0.02
Employees benefits Adani Airport Holdings Limited 0.44 -
Transferred Adani Enterprises Limited 0.13 0.02
Adani Power Rajasthan Limited - 0.01
Ahmedabad International Airport 0.02 0.10
Limited
Mangaluru International Airport - 0.03
Limited
Adani Ports And Special - 0.01
Economic Zone Limited
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 291

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the period ended For the year ended
31st March,2023 31st March,2022
Adani Krishnapatnam Port 0.43 -
Limited
Valuable Properties Private - 0.03
Limited
Adani Green Energy Limited 0.18 0.01
Adani Power (Mundra) Limited - 0.01
Mumbai International Airport 0.50 0.34
Limited
Adani Krishnapatnam Port - 0.22
Limited
Maharashtra Eastern Grid Power - 0.04
Transmission Co. Limited
Ambuja Cements Limited 0.90 -
Adani Power Maharashtra 0.01 -
Limited
Guwahati International Airport 0.05 -
Limited
Adani Petronet (Dahej) Port 0.01 -
Limited
PLR Systems Private Limited 0.03 -
Mundra Petrochem Limited 0.11 -
Dighi Port Limited 0.01 -
Adani New Industries Limited 0.05 -
Adani Sportsline Private Limited 0.09 -
Adani Power Limited - 0.27
Advance - Received Back Adani Electricity Navi Mumbai - 0.05
Limited
Payment made on behalf of Adani Electricity Navi Mumbai 0.05 0.07
Group Companies Limited
Power Distribution Services 2.58 0.54
Limited
Payment made on behalf of Adani Electricity Navi Mumbai 0.09 0.08
Group Companies - Recevied Limited
back Power Distribution Services - 1.21
Limited
Advance paid towards Sunbourne Developers Private - 271.00
Purchase of property - Limited
Received back
Towards acquisition of Superheights Infraspace Private - 510.00
leasehold land Limited
Advance paid towards Adani Enterprises Limited 1,409.41 1,313.31
Purchase of Power
 ADANI ELECTRICITY MUMBAI LIMITED
292 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Nature of Transaction Name of Related Party For the period ended For the year ended
31st March,2023 31st March,2022
Advance paid towards Adani Enterprises Limited - 607.22
Purchase of Power-Received
back
Corporate Social Adani Foundation 7.42 6.13
Responsibility Contribution
Interest Income Adani Enterprises Limited 22.69 50.12
Purchase of Coal Adani Enterprises Limited 92.74 -
Sale of Coal Adani Power Rajasthan Limited 3.86 -
Purchase of Power (net of Adani Enterprises Limited 1,971.08 1,284.73
discount) (excluding banking transactions)
SBSR Power Cleantech Eleven 0.62 -
Adani Hybrid Energy Jaisalmer 708.81 93.87
Four Limited
Rent Paid Mumbai International Airport 1.14 1.09
Limited
EMD Deposit Adani Total Gas Limited 0.10 -
Adani Renewable Energy Park 0.04 -
Remuneration paid Mr. Kandarp Patel 5.15 4.61
Mr. Rakesh Tiwary - 1.88
Mr. Kunjal Mehta 1.28 -
Employee Loan given Mr. Rakesh Tiwary - 0.50
Sitting Fees Mr. K Jairaj 0.04 0.06
Ms. Chitra Bhatnagar - 0.01
Ms. Chandra Iyengar 0.04 0.02

( H in Crores)
Closing Balance Name of Related Party As at 31 March,
st
As at 31st March,
2023 2022
Balance Payable Mundra Solar Pv Limited 0.10 0.10
Karnavati Aviation Private Limited 6.05 3.00
Power Distribution Services Limited 7.63 13.73
Adani Hybrid Energy Jaisalmer Four 140.89 42.66
Limited
Adani Enterprises Limited 166.91 303.97
Superheights Infraspace Private Limited 79.00 79.00
ATL HVDC Limited 33.96 38.95
Mumbai International Airport Limited 0.55 0.34
Ambuja Cements Limited 0.90
Adani Power Maharashtra Limited 0.01 -
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 293

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.) ( H in Crores)

Closing Balance Name of Related Party As at 31 March,
st
As at 31st March,
2023 2022
Guwahati International Airport Limited 0.05 -
Adani Petronet (Dahej) Port Limited 0.01 -
PLR Systems Private Limited 0.03 -
Mundra Petrochem Limited 0.11 -
Dighi Port Limited 0.01 -
Adani New Industries Limited 0.05 -
Adani Renewable Energy Holdiing 0.04 -
Twelve Limited
Adani Sportsline Private Limited 0.09 -
Adani Green Energy Limited 0.18 -
Adani Airport Holdings Limited 0.44 -
Adani Hospitals Mundra Pvt Ltd 0.04 -
Sbsr Power Cleantech Eleven Pvt Ltd 0.62 -
Adani Power Rajasthan Limited - 0.01
Ahmedabad International Airport Limited 0.02 0.10
Mangaluru International Airport Limited - 0.03
Adani Ports And Special Economic Zone - 0.01
Limited
Valuable Properties Private Limited 0.06 0.03
Adani Power (Mundra) Limited 0.03 0.01
Adani Krishnapatnam Port Limited 0.43 0.22
Adani Power Limited - 0.27
Alpha Design Technologies Private 0.40 -
Limited
Adani Total Gas Limited 0.10 -
Maharashtra Eastern Grid Power - 0.04
Transmission Co. Limited
Balance Receivable Adani Green Energy Limited - 0.15
Adani Properties Private Limited* - 1,040.00
Adani Electricity Navi Mumbai Limited 0.00 0.04
Adani Ports And Special Economic Zone 0.23 -
Ltd
Optionally convertible WRSS XXI Transco Limited 241.22 18.38
debentures payable Lakadia Banaskantha Transco Limited 338.95 141.00
(including Interest
accrued but not due on
OCD)
 ADANI ELECTRICITY MUMBAI LIMITED
294 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

38 Related Party Disclosure (Contd.)

( H in Crores)
Closing Balance Name of Related Party As at 31st March, As at 31st March,
2023 2022
Employee Loan Balance Mr. Rakesh Tiwary - 0.62
Receivable
Shareholders Affiliated Qatar Holding LLC 2,317.19 2,137.35
Debt payable
Interest accrued but not Qatar Holding LLC 57.77 53.28
due on Shareholders
Affiliated Debt
* The Group has provided long-term intercorporate deposit at rates comparable to the average commercial rate
of interest.
Note:
All the above transactions are executed at arm’s length basis.
The above disclosure does not include transaction with / as public utility services viz, electricity,
telecommunications etc. in the normal course of business.
Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits
recognised as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are
lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

39 Disclosure under Ind AS 19 “Employee Benefits”:

1 Defined Contribution Plan
(i) Provident fund
(ii) Superannuation fund
(iii) State defined contribution plans
- Employer’s contribution to Employees’ state insurance
- Employers’ Contribution to Employees’ Pension Scheme 1995
The provident fund and the state defined contribution plan are operated by the Regional Provident Fund
Commissioner and the superannuation fund is administered by the trustees of the AEML Superannuation
Scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll
cost to the retirement benefit schemes to fund the benefits. The Group has no obligation other than
the contribution to the fund.
The Group has recognised the following amounts as expense in the Statement of Profit or loss or capital
working process in financial statements for the year:

(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Contribution to Provident Fund 42.10 44.03
Contribution to Employees Superannuation Fund 7.90 7.96
Contribution to Employees Pension Scheme 6.43 6.89
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 295

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

2 Defined Benefit Plan
Gratuity
The Company operates a funded gratuity plan in the form of a Trust, governed by Trustees approinted by the
Company and administered by Life Insurance corporation. Every employee is entitled to a benefit equivalent
to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act,
1972 or Company scheme whichever is beneficial. The same is payable at the time of separation from the
Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

Particulars Gratuity Gratuity

for the year ended for the year ended
31st March 2023 31st March 2022
Starting Period April 01, 2022 April 01, 2021
Date of Reporting March 31, 2023 March 31, 2022
Principal Assumptions in actuarial valuation
Rate of Discounting 7.44% 6.98%
Rate of Salary Increase 10.25% 10.25%
Rate of Employee Turnover 1.00% 1.00%
Mortality Rate During Employment Indian Assured Lives Indian Assured Lives
Mortality 2012-14 (Urban) Mortality 2012-14 (Urban)

31st March 2023 31st March 2022

Change in the Present Value of Defined Benefit
Obligation
Present value of Benefit Obligation at the 692.24 658.82
beginning of the year
Liability Transferred in 0.30 -
Liability Transferred Out (2.76) (1.12)
Interest Cost 48.23 45.19
Current Service Cost 37.58 37.16
Liabilities Extinguished on Settlement (18.16) -
Benefit Paid Directly by the Employer (1.94) -
Benefit Paid From the Fund (40.60) (29.57)
Actuarial (Gain) / Losses on Obligation- Due to (22.65) 20.01
Change in Financial Assumptions
Actuarial (Gain) / Losses on Obligation- Due to 0.00 12.80
Change in Demographic Assumptions
Actuarial (Gain) / Losses on Obligation-Due to (27.85) (51.05)
Experience
Present Value of Benefit Obligation at the end 664.39 692.24
of the year
Change in the Fair Value of Plan Assets
Fair Value of Plan Asset at the beginning of the 489.46 485.77
year
Assets Transferred Out/ Divestments (6.55)
Interest Income 34.16 33.32
Benefit Paid From the Fund (40.60) (29.57)
Contribution by the Employer 7.53 1.09
 ADANI ELECTRICITY MUMBAI LIMITED
296 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

31st March 2023 31st March 2022
Return on Plan Assets Excluding Interest Income (2.61) (1.15)
Fair Value of Plan Asset at the end of the year 481.39 489.46
Amount Recognised in the Balance Sheet
Present Value of Benefit Obligation at the end of 664.39 692.24
the year
Fair Value of Plan Assets at the end of the year 481.39 489.46
Funded Status (Deficit) (182.99) (202.78)
Net (Liability) Recognized in the Balance Sheet (182.99) (202.78)
Provisions
Current 29.18 34.01
Non-Current 153.81 168.77
Expenses Recognized in the Statement of Profit
and Loss
Current Service Cost 37.19 36.82
Net Interest Cost 13.45 11.25
(Gains)/Losses on Curtailments And Settlements (18.16) -
Expenses Recognised 32.48 48.07
Amount recognised to Capital Work in Progress 1.01 0.96
Expenses Recognised in Other Comprehensive
Income (OCI)
Actuarial (Gains) / Losses on Obligation for the (50.75) (18.24)
year
Return on Plan Assets Excluding Interest Income 2.86 1.15
Net Expenses for the year recognised in OCI (47.89) (17.09)
Major Categories of plan assets
Government Securities 80.38% 81.02%
Debt and other Instruments 9.85% 10.71%
Equity Instruments 9.76% 8.27%
Total 100.00% 100.00%
Expected Contribution for next financial year 29.07 32.57
Expected Maturity Analysis of undiscounted
defined Benefit Obligation is as follows
Within one year 107.25 35.07
Between 2 to 5 years 168.88 174.27
Between 6 to 10 years 310.04 366.92
Beyond 10 years 694.76 803.48
The weighted average duration of the defined 10.00 10.00
benefit obligation
Sensitivity Analysis
Projected Benefit Obligation on Current 664.39 692.24
Assumptions
Assumptions – Discount Rate
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % -6.61% -7.94%
increase
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 297

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

39 Disclosure under Ind AS 19 “Employee Benefits”: (Contd.)

31st March 2023 31st March 2022
Impact on defined benefit obligation –in H Crores (43.90) (54.94)
Impact on defined benefit obligation –in % 7.53% 9.12%
decrease
Impact on defined benefit obligation –in H Crores 50.02 63.10
Assumptions – Future Salary Increase
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % 7.04% 8.66%
increase
Impact on defined benefit obligation –in H Crores 46.77 59.92
Impact on defined benefit obligation –in % -6.33% -7.70%
decrease
Impact on defined benefit obligation –in H Crores (42.04) (53.30)
Assumptions – Employee Turnover
Sensitivity Level 1.00% 1.00%
Impact on defined benefit obligation –in % -1.26% -1.62%
increase
Impact on defined benefit obligation –in H Crores (8.37) (11.19)
Impact on defined benefit obligation –in % 1.39% 0.69%
decrease
Impact on defined benefit obligation –in H Crores 9.24 4.81

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting year) has been applied as when calculating the defined benefit liability
recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
to the prior period.

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

Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan
assets underperform this yield, it will result in deficit. These are subject to interest rate risk. To offset the
risk, the plan assets have been deployed in high grade insurer managed funds.

Inflation rate risk:

Higher than expected increase in salary and medical cost will increase the defined benefit obligation.

Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligations
is not straight forward and depends upon the combination of salary increase, discount rate and vesting
criterion.
 ADANI ELECTRICITY MUMBAI LIMITED
298 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

40 Regulatory Deferral Account (H in Crores)

Particulars As at As at
31st March, 2023 31st March, 2022
Regulatory Deferral Account - Liability
Regulatory Liabilities - 271.56
Regulatory Deferral Account - Assets
Regulatory Assets 1,961.73 1,121.92
Net Regulatory Assets/(Liabilities) 1,961.73 850.36
Rate Regulated Activities
1 As per the Ind AS-114 ‘Regulatory Deferral Accounts’, the business of electricity distribution is a Rate
Regulated activity wherein Maharashtra Electricity Regulatory Commission (MERC), the regulator
determines Tariff to be charged from consumers based on prevailing regulations in place.
2 MERC Multi Year Tariff Regulations, 2019 (MYT Regulations), is applicable for the period beginning from 1
April, 2020 to 31st March, 2024. These regulations require MERC to determine tariff in a manner wherein
the Company can recover its fixed and variable costs including assured rate of return on approved equity
base, from its consumers. The Company determines the Revenue, Regulatory Assets and Liabilities as per
the terms and conditions specified in MYT Regulations.
3 Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities is as
follows:
(H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
A Opening Regulatory Assets (Net) 850.36 167.89
Add:
B Income recoverable/(reversible) from future tariff /
Revenue Gap for the year
1 For Current Year 772.83 682.47
2 Accrued in respect of earlier year consequent to MERC 338.54 -
MTR Ofder^
Total a ( 1 + 2 ) 1,111.37 682.47
Less:
C Recovered / (refunded) during the year - -
D Net Movement during the year ( C - D ) 1,111.37 682.47
E Closing Balance ( A - E) 1,961.73 850.36
^ Primarily on account of carrying cost
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 299

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments.
1 Fair Value Measurement (H in Crores)
Particulars 31 March, 2023
st
31 March, 2022
st

Book Value Fair Value Book Value Fair Value

Financial Assets
Investment
- Investment in Mutual Fund at 742.91 742.91 - -
FVTPL
- Investment in Tresury Bills at 24.75 24.75 24.84 24.84
FVTPL
- Government Securities 233.61 214.32 204.62 188.31
Trade Receivables 452.27 452.27 485.85 485.85
Loans Given 33.05 33.05 1,076.04 1,076.04
Cash and Cash Equivalents 92.70 92.70 90.10 90.10
Other Balances with Bank 622.45 622.45 624.48 624.48
Derivative instruments designated in 553.37 553.37 165.25 165.25
hedge accounting relationship
Other Financial Assets 1,277.30 1,277.30 1,189.47 1,189.47
Total Financial Assets 4,032.41 4,013.12 3,860.65 3,844.34
Financial Liabilities
Borrowings (Including Interest 13,045.58 10,096.50 12,072.17 11,211.17
accrued & Current Maturities) - Fixed
Rate
Borrowings (Including Interest 503.05 503.05 - -
accrued & Current Maturities) -
Floating Rate
Debt component of Optionally 197.99 197.99 54.66 54.66
Convertible Debentures
Lease Liability obligation 30.74 30.74 44.84 44.84
Trade Payables 1,627.60 1,627.60 1,523.17 1,523.17
Derivative instruments designated in 3.71 3.71 123.09 123.09
hedge accounting relationship
Other Financial Liabilities 1,107.13 1,107.13 806.71 806.71
Total Financial Liabilities 16,515.79 13,566.72 14,624.64 13,763.64
Above excludes carrying value of investment in subsidiary accounted at cost in accordance with Ind AS 27.
The management assessed that the fair value of cash and cash equivalents, other balances with bank, trade
receivables, loans, trade payables, other financial assets and liabilities approximate their carrying amounts
largely due to the short term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties. The following methods and assumptions
were used to estimate the fair values.
Fair value of the Govt. securities, mutual funds are based on the price quotations near the reporting date.
The fair value of loans from banks and other financial liabilities, as well as other non-current financial
liabilities is estimated by discounting future cash flow using rates currently available for debt on similar
terms, credit risk and remaining maturities.
 ADANI ELECTRICITY MUMBAI LIMITED
300 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

The Company enters into derivative financial instruments with various counterparties, principally banks
and financial institutions with investment grade credit ratings. Foreign exchange forward contracts are
valued using valuation techniques, which employs the use of market observable inputs. The most frequently
applied valuation techniques include forward pricing and swap models using present value calculations.
The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot
and forward rates, yield curves of the respective currencies, currency basis spreads between the respective
currencies, interest rate curves and forward rate curves of the underlying currency. All derivative contracts
are fully collateralized, thereby, eliminating both counterparty and the company’s own non-performance
risk.

2 The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that
are either observable or unobservable and consists of the following three levels.
Level 1 :
Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 :
Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
Level 3 :
Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
(H in Crores)
Particulars Fair Value Hierarchy as at 31st March, 2023
Date of Quoted Significant Significant Total
Valuation prices in observable unobservable
active inputs inputs
markets (Level 2) (Level 3)
(Level 1)
Asset measured at Fair Value
FVTPL financial investments - In 31st March, 742.91 - - 742.91
Mutul Funds 2023
FVTPL financial investments - In 31st March, 24.75 - - 24.75
Tresuary bills 2023
Asset for which Fair Value are
disclosed
Amortised Cost financial investments:
- Government Securities 31st March, 214.32 - - 214.32
2023
Derivative instruments designated in
hedge accounting relationship
Derivative financial assets 31st March, - 553.37 - 553.37
2023
Total 981.98 553.37 - 1,535.35
Liabilities measured at fair values
Derivative instruments designated in
hedge accounting relationship
Derivative financial Liabilities 31st March, - 3.71 - 3.71
2023
Liabilities for which fair values are
disclosed
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 301

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

Borrowings (Including Interest 31st March, 7,650.03 2,446.48 - 10,096.50
accrued & Current Maturities) - Fixed 2023
Rate
Borrowings (Including Interest 31st March, - 503.05 - 503.05
accrued & Current Maturities) - 2023
Floating Rate
Debt component of Optionally 31st March, - 197.99 - 197.99
Convertible Debentures 2023
Total 7,650.03 3,147.51 - 10,797.54

(H in Crores)
Particulars Fair Value Hierarchy as at 31st March, 2022
Date of Quoted Significant Significant Total
Valuation prices in observable unobservable
active inputs inputs
markets (Level 2) (Level 3)
(Level 1)
Asset measured at Fair Value
FVTPL financial investments - In 31st March, 2022 24.84 - - 24.84
Treasury Bills
Asset for which Fair Value are
disclosed
Amortised Cost financial
investments:
- Government Securities 31st March, 2022 188.31 - - 188.31
Derivative instruments designated
in hedge accounting relationship
Derivative financial assets 31st March, 2022 - 165.25 - 165.25
Total 213.15 165.25 - 378.40
Liabilities measured at fair values
Derivative instruments designated
in hedge accounting relationship
Derivative financial Liabilities 31st March, 2022 - 123.09 - 123.09
Liabilities for which fair values are
disclosed
Borrowings (Including Interest 31st March, 2022 8,897.51 2,313.66 - 11,211.17
accrued & Current Maturities) - Fixed
Rate
Borrowings (Including Interest 31st March, 2022 - - - -
accrued & Current Maturities) -
Floating Rate
Debt component of Optionally 31st March, 2022 - 54.66 - 54.66
Convertible Debentures
Total 8,897.51 2,491.41 - 11,388.92

There has been no transfer between level 1 and level 2 during the period.
 ADANI ELECTRICITY MUMBAI LIMITED
302 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

3 Capital Management & Gearing Ratio
“The Company manages its capital structure in a manner to ensure that it will be able to continue as a going
concern while optimising the return to stakeholders through the appropriate debt and equity balance. The
Company’s capital structure is represented by equity (comprising issued capital, retained earnings and
other reserves) and debt. The Company’s management reviews the capital structure of the Company on an
annual basis. As part of this review, the management considers the cost of capital and the risks associated
with each class of capital. The Company’s objective is to ensure that the gearing ratio (debt equity ratio) is
around 70 : 30
Gearing ratio
The gearing ratio at the end of the reporting period was as follows : (H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Debt 13,746.61 12,126.83
Less : Cash & Bank Balance 1,323.89 1,230.92
Net debt 12,422.72 10,895.91
Total Capital 5,097.73 4,799.45
Capital & net debt 17,520.45 15,695.36
Net debt to Total Capital plus net debt ratio (%) * 71% 69%
^ Net debt to Total Capital plus net debt ratio (%) excluding fair valuation of foreign loan amounting to
H1,663.10 crores (31st March, 2022 H624.17 crores) is 68% (31, March, 2022 68%)
(i) Debt is defined as Non-current borrowings (including current maturities) and Current borrowings.
(ii) Equity is defined as Equity share capital, other equity including reserves and surplus and equity
component of compound instruments.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements. Breaches in meeting the financial covenants would permit the bank to
immediately call loans and borrowings. There have been no significant breaches in the financial covenants
of any interest-bearing loans and borrowing in the current year.

4 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade
and other payables. The main purpose of these financial liabilities is to finance the Company’s operations/
projects The Company’s principal financial assets include loans, investment including mutual funds, trade
and other receivables, and cash and cash equivalents which is derived from its operations.
In the ordinary course of business, the Company is mainly exposed to risks resulting from exchange rate
fluctuation (currency risk), interest rate movements (interest rate risk) collectively referred as Market Risk,
Credit Risk and Liquidity Risk. The Company’s senior management oversees the management of these
risks. It manages its exposure to these risks through the use of derivative financial instruments for hedging
transactions. It uses derivative instruments such as Cross Currency Swaps, Full Currency swaps, Interest rate
swaps and foreign currency Future Option contracts to manage these risks. These derivative instruments
reduce the impact of both favorable and unfavorable fluctuations.
The Company’s risk management activities are subject to the management, direction and control of Central
Treasury team of the Company under the framework of Risk Management Policy for Currency and Interest
rate risk, as approved by the Board of Directors of the Company. The Company’s Central Treasury team
ensures appropriate financial risk governance framework for the Company through appropriate policies &
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 303

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

procedures and financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes
is undertaken.
The decision of whether and when to execute derivative financial instruments along with its tenure can
vary from period to period depending on market conditions and the relative costs of the instruments. The
tenure is linked to the timing of the underlying exposure, with the connection between the two being
regularly monitored. All derivative contracts are executed with counterparties that are creditworthy. The
outstanding derivatives are reviewed periodically to ensure that there is no inappropriate concentration of
outstanding to any particular counterparty.
A. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: interest rate risk, and
currency risk. Financial instruments affected by market risk include loans and borrowings. The sensitivity
analysis in interest rate and foreign currency risk sections relate to the position as at March 31, 2022
and March 31, 2023.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed
to floating interest rates of the debt and derivatives and the proportion of financial instruments in
foreign currencies are all constant as at March 31, 2022 and March 31, 2023.
I. Foreign currency risk
The Company is exposed to foreign currency risks arising from its exposure to the USD.Foreign
currency risks arise from future commercial transactions and recognized assets and liabilities,
when they are denominated in a currency other than Indian Rupee. Exposures on foreign currency
loans are managed through the Company wide hedging policy, which is reviewed periodically to
ensure that the results from fluctuating currency exchange rates are appropriately managed. The
Company’s exposure with regards to foreign currency risk is given below.
The following table shows foreign currency exposures in US Dollar on financial instruments at the
end of the reporting period (Refer Note 41 (5))

Foreign Currency Exposures

Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign H crore Foreign H crore
Currency Currency
(In Millions) (In Millions)
In USD
(i) Interest accrued but not due 14.63 120.20 14.66 111.12
(ii) Import Creditors and Acceptances 0.73 5.99 14.38 108.99
(iii) Bond 1,000.00 8,217.00 1,000.00 7,579.25
(iv) Bond - Sustainability Linked Notes 300.00 2,465.10 300.00 2,273.78
(v) Shareholders Affiliated Debts 282.00 2,317.19 282.00 2,137.35
Derivatives
- Call Options - - (582.00) (4,411.12)
- Cross Currency Swaps (982.00) (8,069.09) (400.00) (3,031.70)
- Forward coupon (2.00) (16.43) (2.26) (17.13)
- Forward principal - - (300.00) (2,273.78)
- Coupon Only Swaps (12.63) (103.78) (5.38) (40.78)
- Principal Only Swaps (600.00) (4,930.20) (300.00) (2,273.78)
Total 0.73 5.98 21.40 162.20
 ADANI ELECTRICITY MUMBAI LIMITED
304 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

Foreign Currency Exposures
Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign H crore Foreign H crore
Currency Currency
(In Millions) (In Millions)
In Euro
(i) Import Creditors and Acceptances 0.03 0.30 0.01 0.09
Total 0.03 0.30 0.01 0.09
Note : During the previous year, the Company had executed 4 year cross currency swaps derivative
contract of USD 300 million to hedge outstanding Sustainibility linked bond of USD 300 million
which became effective from 22 July 2022 and accordingly, was not included in above figures as at
31 March 2022.
(i) Foreign currency sensitivity analysis
The following tables demonstrate the sensitivity to a reasonably possible change in USD
exchange rates, with all other variables held constant on the Company’s profit before tax and
pre-tax equity is as under:
(H in Crores)
Particulars Effect on profit before tax and
consequential impact on Equity
As at 31st March, 2023 As at 31st March, 2022
Appreciate Depreciate Appreciate Depreciate
Rupee appreciate / (depreciate) by H 0.07 (0.07) 2.14 (2.14)
1 against USD / EURO
Rupee appreciate / (depreciate) by H 0.16 (0.16) 4.28 (4.28)
2 against USD / EURO
Rupee appreciate / (depreciate) by H 0.23 (0.23) 6.42 (6.42)
3 against USD / EURO

II. Interest rate risk management

The Company is exposed to interest rate risk on short-term and medium-term floating rate
borrowings and on the refinancing of fixed rate debt. The Company’s policy is to borrow long
term debt with fixed interest rate The short term borrowings of the Company are mainly floating
rate rupee denominated working capital borrowings.
The long-term borrowings of the Company are by way of Senior Secured Notes (SSN) and
Shareholder’s Affiliated Debts which carry fixed rate of interest till maturity. Further during
the year the Company issued the Sustainability Linked Bond (SLB) of USD 300 million through
10-year notes on July 15, 2021 under USD 2 billion Global Medium-Term Notes program (GMTN)
which carry fixed rate of interest till maturity with certain Sustainability Performance Targets
(SPTs), non-attainment of which will result in increase in fixed rate of interest by 0.15 per cent
p.a, for SPT 1 in March 2027 and further 0.15 per cent p.a. for SPT 2 for March 2029.
(i) Interest rate sensitivity:
The sensitivity analysis below has been determined based on average outstanding exposure
of borrowings during the year that have floating interest rates.
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 305

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

If the interest rates had been 50 basis points higher or lower and all the other variables
were held constant, the effect on Interest expense for the respective financial years and
consequent effect on Company’s profit in that financial year would have been as below:

(H in Crores)
As at 31 March, 2023
st
As at 31 March, 2022
st

50 bps 50 bps 50 bps 50 bps

increase decrease increase decrease
Interest expense on loan 5.11 (5.11) 4.78 (4.78)
Effect on profit / (loss) before tax (5.11) 5.11 (4.78) 4.78

B. Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables and other financial assets) and from its financing activities,
including loans to others, deposits with banks, financial institutions & others, foreign exchange
transactions and other financial assets.
Customer credit risk is managed by the Company’s established policy, procedures and control relating
to customer credit risk defined in accordance with this assessment.
Credit risk on cash and bank balances is limited as the Company generally invests in deposits with banks
with high credit ratings assigned by international and domestic credit rating agencies. Investments
primarily include investment in liquid mutual fund units and quoted bonds issued by government.
Counterparty credit limits are reviewed by the Company’s management on a regular basis. The limits are
set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s
potential failure to make payments.

The gearing ratio at the end of the reporting period was as follows : (H in Crores)
Particulars As at As at
31st March, 2023 31st March, 2022
Trade receivables 452.27 485.85
Loans 33.05 1,076.04
Other financial assets 1,830.67 1,354.72
Total 2,315.99 2,916.61
Refer Note 12 for credit risk and other information in respect of trade receivables. Moreover, given the
diverse nature of the consumer profile of the Company, trade receivables are spread over a number of
customers with no significant concentration of credit risk. No single customer accounted for 10.0% or
more of revenue basis in any of the years presented. The history of trade receivables shows a negligible
provision for bad and doubtful debts compared to the volume/value of sales recorded. Other receivables
as stated above are due from the parties / banks under normal course of the business having sound
credit worthiness. and as such the Company believes exposure to credit risk to be minimal.
The Company has not acquired any credit impaired asset.
C. Liquidity risk management
 ADANI ELECTRICITY MUMBAI LIMITED
306 ANNUAL REPORT 2022-23

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset.
Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value The
Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company’s exposure to
liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities The
Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents The
Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to
meet all its normal operating commitments in a timely and cost-effective manner.

Contractual Maturities of Financial liabilities (H in Crores)

Less than 1 to 5 More than Total
1 year years 5 years
As at 31st March, 2023
Borrowings** 1,225.78 2,577.14 14,246.70 18,049.62
Trade Payables 1,594.84 - 32.76 1,627.60
Lease Liabilities 16.27 11.92 2.55 30.74
Other Financial Liabilities 1,106.79 4.05 - 1,110.84
Total 3,943.68 2,593.11 14,282.01 20,818.80
As at 31st March, 2022
Borrowings** 647.27 2,222.06 13,625.30 16,494.62
Trade Payables 1,490.95 - 32.22 1,523.17
Lease Liabilities 18.59 22.75 3.50 44.84
Other Financial Liabilities 863.60 67.78 - 931.38
Total 3,020.41 2,312.59 13,661.02 18,994.01
** The table has been drawn up based on the undiscounted contractual maturities of the financial
liabilities including interest that will be paid on those liabilities upto the maturity of the instruments,
ignoring the call and refinancing options available with the Company. The amounts included above for
variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable
interest rates differ to those estimates of interest rates determined at the end of the reporting period.

5 Derivative Financial Instrument

The Company uses derivatives instruments as part of its management of risks relating to exposure to
fluctuation in foreign currency exchange rates and interest rates. The Company does not acquire derivative
financial instruments for trading or speculative purposes neither does it enter into complex derivative
transactions to manage the above risks. The derivative transactions are normally in the form of forward
currency contracts, cross currency swaps, options and interest rate swaps to hedge its foreign currency
risks and interest rate risks, respectively and are subject to the Company’s guidelines and policies.
The fair values of all derivatives are separately recorded in the balance sheet within current and non current
assets and liabilities. Derivative that are designated as hedges are classified as current or non current
depending on the maturity of the derivative.
The use of derivative can give rise to credit and market risk. The Company tries to control credit risk as far
as possible by only entering into contracts with stipulated / reputed banks and financial institutions. The
use of derivative instrument is subject to limits, authorities and regular monitoring by appropriate levels
of management. The limits, authorities and monitoring systems are periodically reviewed by management
and the Board. The market risk on derivative is mitigated by changes in the valuation of underlying assets,
liabilities or transactions, as derivatives are used only for risk management purpose.
The Company enters into derivative financial instruments, such as forward currency contracts, cross
currency swaps, options, interest rate futures and interest rate swaps for hedging the liabilities incurred/
recorded and accounts for them as cash flow hedges and states them at fair value. The effective portion of
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS 307

Notes to Consolidated Financial Statements for the year ended 31 st

March, 2023

41 Financial Instruments. (Contd.)

the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any
ineffective portion is recognised immediately in the statement of profit and loss. Amounts recognised in OCI
are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged
financial income or financial expense is recognised or when a forecast sale occurs. These hedges have been
effective for the year ended March 31, 2022 and March 31, 2023.
The fair value of the Company’s derivative positions recorded under derivative financial assets and
derivative financial liabilities are as follows :-

Derivative Financials Instruments (H in Crores)

As at 31st March, 2023 As at 31st March, 2022
Assets Liabilities Assets Liabilities
Current
Cashflow hedge*
- Call Options - - 58.10 68.76
- Cross Currency Swaps 367.96 3.60 47.39 21.74
- Forward - 0.11 - 32.59
- Coupon Only Swaps 14.45 - (5.79) -
- Principal Only Swaps 170.96 - 65.55 -
Total 553.37 3.71 165.25 123.09

Derivative Contracts entered into by the company and outstanding as at Balance Sheet date :
To hedge Currency risks and interest related risks, the company has entered into various derivative Contracts.
The category wise break-up of the amount outstanding as at Balance Sheet date is given below :-
Particulars As at 31st March, 2023 As at 31st March, 2022
Foreign H crore Purpose Foreign H crore Purpose
Currency Currency
(In Millions) (In Millions)
In USD
- Call - - 582.00 4,411.12 Hedging of foreign
Options currency borrowing
principal
- Cross 982.00 8,069.09 Hedging of foreign 700.00 5,305.48 Hedging of foreign
Currency currency borrowing currency borrowing
Swaps* principal & interest principal & interest
liability liability
- Forward 2.00 16.43 Hedging of foreign 305.80 2,317.73 Hedging of foreign
currency borrowing currency borrowing
principal & Interest principal & interest
liability liability
- Coupon 600.00 4,930.20 Hedging of foreign 600.00 4,547.55 Hedging of foreign
Only Swaps currency borrowing currency borrowing
principal & interest principal & interest
liability liability
- Principal 600.00 4,930.20 Hedging of foreign 300.00 2,273.78 Hedging of foreign
Only Swaps currency borrowing currency borrowing
principal liability principal liability
Total 2,184.00 17,945.92 2,487.80 18,855.66
* During the previous year, the Company had executed 4 year cross currency swaps derivative contract
of USD 300 million to hedge outstanding Sustainibility linked bond of USD 300 million which became
effective from 22 July 2022 and accordingly, was not included in above figures as at 31 March 2022.
 st
Notes to Consolidated Financial Statements for the year ended 31 March, 2023
308

42 The chief operating decision maker evaluates the Company's performance and applies the resources to whole of the Company business viz. "Generation,
Transmission and Distribution of Power" as an integrated utility. Hence the Company does not have any reportable segment as per lnd AS- 108
"Operating Segments".

43 Additional information of net assets and share in profit or loss contributed by various entities as recognised under Schedule III of the Companies Act,
2013.

31-Mar-23 in Crores
ANNUAL REPORT 2022-23

S r . Name of the Entity As % of Amount As % of Amount As % of Amount “As % of Amount

No Consolidated (H) Consolidated (H) Consolidated (H) Consolidated Total (H)
Net Assets as Profit or Loss Other Comprehensive
ADANI ELECTRICITY MUMBAI LIMITED

on 31st March, for the period Comprehensive Income for the

2023 ended 31st Income for the period ended
March, 2023 period ended 31st March, 2023
31st March, 2023
1 Adani Electricity 92.51% 4,716.06 100.40% 95.18 99.93% (73.93) 102.04% 21.25
Mumbai Limited
Subsidiaries (Indian)
2 Adani Electricity 7.49% 382.05 0.00% (0.00) 0.07% (0.05) -0.25% (0.05)
Mumbai Infra Limited
3 AEML SEEPZ Limited -0.01% (0.37) -0.39% (0.37) 0.00% - -1.79% (0.37)
Total 100.00% 5,097.74 100.00% 94.80 100.00% (73.98) 100.00% 20.82
Less: Adjustment of 0.02
Consolidation
Consolidated Net 5,097.72 94.80 (73.98) 20.82
Assets / Profit after
tax
 st
Notes to Consolidated Financial Statements for the year ended 31 March, 2023

43 (Contd.)
31-Mar-22 in Crores
S r . Name of the Entity As % of Amount As % of Amount As % of Amount “As % of Amount
No Consolidated (H) Consolidated (H) Consolidated (H) Consolidated Total (H)
Net Assets as Profit or Loss Other Comprehensive
on 31st March, for the period Comprehensive Income for the
2023 ended 31st Income for the period ended
March, 2023 period ended 31st March, 2023
31st March, 2023
1 Adani Electricity 97.82% 4,694.81 100.00% 122.16 99.94% (137.70) 99.50% (15.54)
Mumbai Limited
Subsidiaries (Indian)
2 Adani Electricity 2.18% 104.65 0.00% - 0.06% (0.08) 0.50% (0.08)
Mumbai Infra Limited
3 AEML SEEPZ Limited 0.00% 0.01 0.00% - 0.00% - 0.00% -
Total 100.00% 4,799.47 100.00% 122.16 100.00% (137.78) 100.00% (15.62)
Less: Adjustment of 0.02
Consolidation
Consolidated Net 4,799.45 122.16 (137.78) (15.62)
Assets / Profit after
tax

44 Significant Events after the Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.
As per our attached report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants ADANI ELECTRICITY MUMBAI LIMITED
ICAI Firm Registration Number : 117366W/W-100018

sd/ sd/ sd/

Mohammed Bengali Anil Sardana Kandarp Patel
Partner Chairman Managing Director & CEO
Membership No. 105828 DIN: 00006867 DIN.: 02947643

sd/ sd/
Kunjal Mehta Jaladhi Shukla
FINANCIAL STATEMENTS
STATUTORY REPORTS
CORPORATE OVERVIEW

Chief Financial Officer Company Secretary

Place : Mumbai Place: Ahmedabad
309

Date: 26th May, 2023 Date: 26th May, 2023

 ADANI ELECTRICITY MUMBAI LIMITED
310 ANNUAL REPORT 2022-23

Notice
Adani Electricity Mumbai Limited
Notice is hereby given that the 15th Annual General Meeting of the Members of Adani Electricity Mumbai
Limited will be held on Monday, 17th July 2023 at 11.30 a.m. through Video Conferencing / Other Audio Visual
Means to transact the following businesses:

Ordinary Business: “RESOLVED THAT pursuant to the provisions

of Sections 196, 197 read with Schedule V and
1. To receive, consider and adopt the Audited all other applicable provisions, if any, of the
Financial Statements (consolidated & standalone) Companies Act, 2013 (hereinafter referred to as
of the Company for the financial year ended on ‘the Act’) (including any statutory modification
31st March 2023 and the Reports of the Board of or re-enactment thereof for the time being in
Directors and Auditors thereon. force), and the relevant Rules made there under,
2. To confirm the payment of interim dividend on as amended from time to time, and subject to
Equity Shares. the approval of Central Government, if required,
consent of the Members be and is hereby
3. To appoint a Director in place of Mr. Quinton Choi accorded to the re-appointment of Mr. Kandarp
(DIN 08772500), who retires by rotation under Patel (DIN 02947643) as a Managing Director
the provisions of the Companies Act, 2013 and for further 2nd term for a period of five years with
being eligible, offers himself for re-appointment. effect from 29th August 2023 with liberty to the
Nomination and Remuneration Committee and
Special Business the Board of Directors of the Company to alter
the terms and conditions of appointment and/
4. Re-Appointment of Mr. K. Jairaj as an
or remuneration as it may deem fit, subject to
Independent Director the same not exceeding the limits specified in
To consider and, if thought fit, to pass with or Schedule V to the Act including any statutory
without modification(s), the following resolution modification or re-enactment thereof, for the
as a Special Resolution : time being in force and as agreed by and between
“RESOLVED THAT pursuant to the provisions the Board and Mr. Kandarp Patel.
of Sections 149 and 152 read with Schedule IV RESOLVED FURTHER THAT the Board of Directors
and all other applicable provisions, if any, of the (which term shall be deemed to include any
Companies Act, 2013 (hereinafter referred to as Committee which the Board may have constituted
‘the Act’) (including any statutory modification or hereinafter constitute to exercise its powers,
or re-enactment thereof for the time being including the powers conferred by this resolution)
in force), and the relevant Rules made there of the Company be and is hereby authorized to
under, as amended from time to time, Mr. K. do all such acts, deeds and things as it may in
Jairaj (DIN:01875126) who was appointed as an its absolute discretion deem fit, necessary,
Independent Director of the Company pursuant expedient or desirable to settle any question or
to the provisions of Section 161 of the Act and doubt that may arise in relation thereto in order
Articles of Association of the Company and in to give effect to the foregoing resolution.”
respect of whom the Company has received a
Notice in writing from a Member under Section 6. Ratification of Remuneration to Cost
160 of the Act proposing his candidature for Auditors
appointment as an Independent Director, be and To consider and, if thought fit, to pass, the
is hereby re-appointed as an Independent Director following resolution as an Ordinary Resolution:
of the Company for 2nd term to hold office for five
consecutive years with effect from 29th August “RESOLVED THAT pursuant to the provisions of
2023 and shall not be liable to retire by rotation Section 148 and all other applicable provisions,
in accordance with the provisions of Companies if any, of the Companies Act, 2013 (including
Act, 2013.” any statutory modification(s) or re-enactment(s)
thereof, for the time being in force) (hereinafter
5. Re-Appointment of Mr. Kandarp Patel as referred to as ‘the Act’) and the relevant Rules
Managing Director there under, as amended from time to time,
To consider and if thought fit, to pass with or M/s Devarajan Swaminathan and Co, Cost
without modification(s),the following resolution Accountants (Firm Registration Number 100669)
as an Special Resolution: appointed as the Cost Auditors of the Company
 NOTICE 311

for audit of the cost accounting records of the RESOLVED FURTHER THAT the Board of
Company for the financial year ending March 31, Directors of the Company be and is hereby
2024, be paid remuneration of H2,00,000/- plus authorized to do all acts and take all such steps
applicable taxes and out of pocket expenses, if as may be necessary, proper or expedient to give
any.” effect to this resolution.”

For and on behalf of the Board

Sd/-
Jaladhi Shukla
Company Secretary
Date:26th May 2023
Place: Ahmedabad

Registered Office:
Adani Corporate Office
Shantigram, Near Vaishno Devi Circle
S G Highway, Ahmedabad 382421
CIN: U74999GJ2008PLC107256

Attachments:
(i) Annexure A: Explanatory Statement;
(ii) Annexure B: Details of Directors seeking Appointment / Re-appointment

Notes:
1. The Explanatory Statement as required 4. Pursuant to the Circular No. 14/2020 dated April
pursuant to the provisions of Section 102(1) of 08, 2020, issued by the Ministry of Corporate
the Companies Act, 2013 (“Companies Act”), is Affairs, the facility to appoint proxy to attend and
annexed as Annexure A hereto and forms a part cast vote for the members is not available for this
of this notice. AGM. However, in pursuance of Section 112 and
113 of the Companies Act, 2013, representatives of
2. Pursuant to the Circular No. 14/2020 dated April
the members may be appointed for participation
08, 2020, Circular No.17/2020 dated April 13,
and voting in the meeting held through VC or
2020 issued by the Ministry of Corporate Affairs
OAVM.
followed by Circular No. 20/2020 dated May 05,
2020 and Circular No. 02/2021 dated January 13, 5. The Members can join the AGM in the VC/OAVM
2021 and Circular No. 21/2021 dated December 14, mode 15 minutes before and after the scheduled
2021, 02/2022 dated 5th May 2022 and 10/2022 time of the commencement of the Meeting by
dated December 28, 2022, physical attendance following the procedure mentioned in the Notice.
of the Members to the EGM/AGM venue is not
6. Sub-section (1) of section 107 provides that voting
required and Annual General Meeting (AGM) be
in the first instance shall be done by show of hands
held through Video Conferencing (VC) or Other
unless a poll under section 109 is demanded. A
Audio Visual Means (OAVM) which allows two
poll can be demanded under section 109 of the
way teleconferencing or webex for the ease of
Act without going through the formality of a
participation of the members. Hence, Members
show of hands. The members can convey their
can attend and participate in the ensuing AGM
vote on the designated email address – jaladhi.
through VC/OAVM.
[email protected] when a poll is required to be
3. The Company has arranged VC / OAVM facility taken during the meeting on any resolution.
for the members to participate and vote in
7. Corporate members are requested to authorize
the forthcoming AGM through MS Teams. The
their representative to attend and vote at the
members can participate and vote in the ensuing
Annual General Meeting, pursuant to Section 113
AGM through the same.
of the Companies Act.
 ADANI ELECTRICITY MUMBAI LIMITED
312 ANNUAL REPORT 2022-23

ANNEXURE A

Annexure to Notice
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Item No. 4 Commissioner, Bangalore City Corporation for two

Mr. K Jairaj, Independent Director of the Company was terms; Commissioner for Commercial Taxes and
appointed as Director of the Company for a period of Principal Secretary to the Chief Minister. With N.R.
five consecutive years with effect from August 29, Narayanamurthy, Chairman Emeritus of Infosys, Mr.
2018. In terms of the provisions of Section 161 of Jairaj established the Bangalore International Airport
the Act, the term of Mr Jairaj, is getting expired on Limited, India’s first greenfield airport on public
28th August 2023. As per the provision of Companies private partnership basis with Siemens, Germany.
Act, 2013, Independent Director to be appointed for Mr. Jairaj served with the World Bank, Washington
2 terms of 5 years. Hence, the Board has proposed to D.C. USA, as senior public sector management
re-appoint Mr K Jairaj for 2nd term of 5 years at the specialist in the Africa region between 2004-2006.
ensuing Annual General Meeting of the Company Mr. Jairaj’s has academic background in economics,
with effect from 29th August 2023. public policy and management. He has a Bachelor
of Arts (Honours) degree from Bangalore University,
The Company has received a notice in writing from Master of Arts degree in Economics from the Delhi
a member proposing the candidature of Mr. K. Jairaj School of Economics, M.P.A. Woodrow Wilson
(DIN:01875126) for office of Director of the Company School Of Public And International Affairs, Princeton
under the provisions of Section 160 of the Act. In University and M.P.A, Kennedy School of Government,
terms of provisions of Section 152 and other applicable Harvard University, U.S.A, where he was Edward’s
provisions, if any, of the Act read with rules made there Mason Fellow. Mr. K. Jairaj is active in the National
under, the appointment of director requires approval Management Movement and served as President, All
of members. The Company has received a declaration India Management Association (AIMA), the only IAS
from Mr. K Jairaj confirming that he meets the criteria officer to have done so; Past President Bangalore
of independence as prescribed under the Act. Mr. K Management Association; currently on the Board of
Jairaj is also not disqualified from being appointed as Governors, Indian Institute of Management, Kashipur.
a Director in terms of Section 164 of the Act. He was on the Board of Governors of Indian Institute
of Management, Bangalore from 2000 to 2004. He is
In the opinion of the Board, Mr. K Jairaj fulfils the
associated with several educational and not-for-profit
conditions for his appointment as an Independent
institutions.
Director as specified in the Act and he is independent
of the management and possesses appropriate Accordingly, Mr. K. Jairaj (DIN:01875126) is proposed
skills, experience and knowledge. Mr. K. Jairaj to be re-appointed as an Independent Director of the
(DIN:01875126) is not related to any other Director Company for 2nd term of five years. Keeping in view
and Key Managerial Personnel of the Company. the above, it is proposed to seek approval of the
members to re-appoint Mr. K. Jairaj (DIN:01875126) as
Mr. K. Jairaj, a member of the 1976 batch of the
Independent Director on the Board of the Company.
Indian Administrative Service , has held distinguished
appointments in the infrastructure, energy, transport The Board of Directors accordingly recommends the
and urban development sectors, including a role as resolution set out at Item No. 4 of the accompanying
Additional Chief Secretary, Energy Department and Notice for the approval of the Members.
Chairman, BESCOM, Managing Director, Bangalore
International Airport Ltd; Managing Director, Except Mr. K. Jairaj (DIN:01875126), none of the
Karnataka Power Corporation Ltd; Managing Director, Directors and Key Managerial Personnel of the
Karnataka State Road Transport Corporation; Company or their relatives is concerned or interested,
financially or otherwise, in the said resolution.
 NOTICE 313

Item No. 5 Item No 6:

The Board of Directors of the Company at their The Board of Directors have approved the appointment
meeting held on August 29, 2018 had appointed Mr. and remuneration of M/s Devarajan Swaminathan
Kandarp Patel (DIN: 02947643) as Managing Director and Co, Cost Accountants (Firm Registration Number
of the Company for a period of five years commencing 100669), as the Cost Auditors for audit of the cost
from August 29, 2018 and until August 28, 2023. accounting records of the Company for the financial
year ending 31st March, 2024, at a remuneration of
Hence, the Board has proposed to re-appoint Mr
H2,00,000/- plus applicable taxes and out-of-pocket
Kandarp Patel for 2nd term of 5 years at the ensuing
expenses, if any.
Annual General Meeting of the Company.
In terms of the provisions of Section 148(3) of the
It is proposed to seek approval of the members to
Companies Act, 2013 read with the Companies (Audit
re-appoint Mr. Kandarp Patel (DIN: 02947643) as
and Auditors) Rules, 2014, remuneration payable to
Managing Director of the Company for a 2nd term of
the Cost Auditor needs to be ratified by the Members
5 years with effect from 29th August 2023. The total
of the Company.
remuneration payable to Mr. Kandarp Patel is H5.15
crore per annum. None of the Directors, Key Managerial Personnel
of the Company and their relatives are, in any way,
Mr. Kandarp Patel holds directorships on the Boards
concerned or interested financially or otherwise in
of Pench Thermal Energy (MP) Limited, Adani
this resolution set out at Item no. 6 of the Notice.
Transmission (India) Limited, Adani Renewable Energy
Holding Two Limited, Adani Electricity Mumbai Infra The Board accordingly recommends the Ordinary
Limited, AEML SEEPZ Limited And Adani Electricity Resolution set out at Item No. 6 of the accompanying
Jewar Limited. Notice for approval of the Members.
The Board of Directors accordingly recommends
the Special Resolution set out at Item No. 5 of
the accompanying Notice for the approval of the
Members.
Except Mr. Kandarp Patel (DIN: 02947643), none of
the Directors and Key Managerial Personnel of the
Company or their relatives is concerned or interested,
financially or otherwise, in the said resolution.

For and on behalf of the Board

Sd/-
Jaladhi Shukla
Company Secretary
Date:26th May 2023
Place: Ahmedabad

Registered Office:
Adani Corporate Office
Shantigram, Near Vaishno Devi Circle
S G Highway, Ahmedabad 382421
CIN: U74999GJ2008PLC107256
 ADANI ELECTRICITY MUMBAI LIMITED
314 ANNUAL REPORT 2022-23

Addendum to the Notice of

15Th Annual General Meeting of the Company

Addendum to the Notice dated 29th June 2023 Ordinary Business:

convening 15th Annual General Meeting of the To consider and if thought fit to pass, with or without
Company scheduled to be held on Monday, 17th July modification(s) if any, the following resolution as an
2023 at 11.30 a.m. (IST) through Video Conferencing Ordinary Resolution:
(“VC”)/Other Audio Visual Means (“OAVM”):
“RESOLVED THAT pursuant to the provisions of
Notice is hereby given pursuant to the provisions of Section 139 and other applicable provisions, if any,
Section 139 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules framed
of the Companies Act, 2013 and the Rules framed thereunder, as amended from time to time, M/s.
thereunder, the Board of director have recommended Walker Chandiok & Co. LLP, Chartered Accountants
to appoint M/s. Walker Chandiok & Co. LLP, Chartered (Firm Registration No. 001076N/N500013) be and
Accountants (Firm Registration No. 001076N/ is hereby appointed as Statutory Auditors of the
N500013) be and is hereby appointed as Statutory Company to hold office from the conclusion of this
Auditors of the Company. Accordingly, the following Annual General Meeting (AGM) till the conclusion of
item of business is added in the aforesaid Notice 20th AGM of the Company to be held in the year 2028
as Item No. 3A as an Ordinary Business and this on such remuneration (including fees for certification)
addendum shall be deemed to be an integral part and reimbursement of out of pocket expenses for
of the original Notice dated 26th May 2023 and the the purpose of audit as may be fixed by the Board of
notes provided therein. Directors of the Company, on the recommendation of
the Audit Committee.”

For and on behalf of the Board

Sd/-
Jaladhi Shukla
Company Secretary
Date: 29th June 2023
Place: Ahmedabad

Registered Office:
Adani Corporate Office
Shantigram, Near Vaishno Devi Circle
S G Highway, Ahmedabad 382421
CIN: U74999GJ2008PLC107256
 NOTICE 315

Statement Pursuant to section 102

of the Companies Act, 2013

Item no. 3A As per the provisions of Companies Act, 2013 read with
The members of the Company at the Annual the Rules made there under, the Board of Directors
General Meeting held on 27th September ,2018 have recommended the appointment M/s Walker
had appointed M/s Deloitte Haskins & Sells LLP, Chandiok & Co LLP, Chartered Accountants (Firm
Chartered Accountants, Mumbai (Firm Registration Registration No. 001076N/N500013) to the members
No. 117366W/W-100018) as Statutory Auditors for of the Company for their approval at the Annual
the period of 5 years. M/s Deloitte Haskins & Sells General Meeting, to hold office from the conclusion
LLP, Chartered Accountants, were appointed from of the ensuing 15th Annual General Meeting until the
conclusion of 10th Annual General Meeting till the conclusion of 20th Annual General Meeting.
conclusion of 15th Annual General Meeting. Hence, M/s Walker Chandiok & Co LLP, Chartered Accountants
term of M/s Deloitte Haskins & Sells LLP, Chartered (Firm Registration No. 001076N/N500013) have
Accountants is getting expired at the ensuing Annual conveyed their consent to be appointed as Statutory
General Meeting. Auditors of the Company along-with the confirmation
The Board of Directors on 29th June 2023 have that their appointment would be within the limits
recommended the appointment of M/s Walker prescribed under the Act.
Chandiok & Co LLP, Chartered Accountants (Firm Your Directors recommend the resolution for approval
Registration No. 001076N/N500013) as Statutory of members.
Auditors of the Company from the conclusion of
ensuing Annual General Meeting till the conclusion None of the Directors and Key Managerial Personnel
of 20th Annual General Meeting of the Company. of the Company or their relatives is concerned or
interested, financially or otherwise, in the proposed
resolution.

For and on behalf of the Board

Sd/-
Jaladhi Shukla
Company Secretary
Date: 29th June 2023
Place: Ahmedabad

Registered Office:
Adani Corporate Office
Shantigram, Near Vaishno Devi Circle
S G Highway, Ahmedabad 382421
CIN: U74999GJ2008PLC107256
Notes
Corporate Information
Our Directors Banks
Mr. Kandarp Patel DBS Bank India Ltd
Managing Director HDFC Bank Limited
Mr. Sagar Adani Qatar National Bank
Non-Executive Director
Citibank, N.A.
Mr. Kalaikuruchi Jairaj Mizuho Bank Limited
Independent Director
ICICI Bank Limited
Mrs Chandra Iyengar
Standard Chartered Bank
Independent Director
Barclays Bank PLC
Mr. Quinton Choi
Non-Executive Director Credit Suisse AG
Deutsche Bank Ag,
Mr. Kenneth McLaren
Non-Executive Director MUFG Bank Ltd.

Registered Office Company Secretary

Adani Corporate House, Jaladhi Shukla
Shantigram, near vaishno devi
Circle,S. G. Highway, khodiyar, Auditors
Ahmedabad 382421,Gujarat, India
M/s. Deloitte Haskins & Sells LLP
Chartered Accountants, Mumbai