CESC Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. In the above standalone financial results of the Company revenue from sale of power included in revenue from operations has been arrived at based on the relevant orders of the West Bengal Electricity Regulatory Commission The effect of adjustments relating to advance against depreciation, cost of fuel and purchase of power and those having bearing on revenue account, as appropriate, based on the Company's understanding of the applicable available regulatory provisions and available orders of the competent authorities have been included in Regulatory (income) / expense, which may, however, necessitate further adjustments upon receipt of subsequent orders/ directions in this regard, including finalization of the underlying issues relating to mining of coal from Sarisatoli coal mine commenced from April, 2015.

2. Part A of Schedule II to the Companies Act. 2013 (the Act), inter alia, provides that depreciable amount of an asset is the cost of an asset or other amount substituted for cost Part S of the said Schedule deals with the useful life or residual value of an asset as notified for accounting purpose by a Regulatory Authority constituted under an act of Parliament or by the Central Government for calculating depreciation to be provided for such asset irrespective of the requirement of Schedule II in terms of applicable Regulations under the Electricity Act 2003. depreciation on tangible assets other than freehold land is provided on straight line method on a pro-rata basis at the rates specified therein, forming the basis for determining Company's tariff by the West Bengal Electricity Regulatory Commission (Commission), which is also required to be used for accounting purpose as specified in the said Regulations Based on legal opinions and accounting opinions obtained, the Company continues with the consistently followed practice of recouping additional charge of depreciation relatable to the increase in value of assets arising from fair valuation on the date of transition to Ind AS from Retained Earnings which for the quarter ended 31 December 2018 amounts to Rs. 76 crore (quarter ended December, 2017 Rs. 78 crore).

3 (i) Other expenses contained in columns (1) to (6) in the above financial results include interest an security deposit of Rs. 27 crores, Rs. 27 crores, Rs. 26 crores, Rs. 81 crores, Rs. 85 crore and Rs. 109 crone for the respective periods
(ii) EPS without Regulatory income/ (expenses) contained in Columns (1) to (6) in the above financial results works out to Rs. 1.22, Rs. 18.25, Rs. 7.44, Rs. 30.35, Rs. 50.71 and Rs. 52.83 for the respective periods.

4. Figures in columns (3) and (5) above for three month and nine month period ended 31st December, 2017 have been restated following the decision of the Board of Directors at its meeting held on 12 October 2018 to implement, effective 1 October 2017 ( being the appointed date ), a Composite Scheme of Arrangement amongst the Company and nine other scheme companies and their respective shareholders as approved by the National Company Law Tribunal vide order dated 28 March, 20t8 in terms of which, demerger of the Company s Generation Undertaking shall however be effective upon approval of the Hobble West Bengal Electricity Regulatory Commission to the Power Purchase Agreement (PPA) between the Company and Haldia Energy Limited, one of the said Scheme Companies

5. An interim dividend of Rs. 17.5O per equity share involving an outgo of Rs. 2S0 crores {including dividend distribution tax) has been declared for FY 2018-19

6. The Company is primarily engaged in generation and distribution of electricity and does not operate in any other reportable segment

7. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 5th February, 2019 The Statutory Auditors of the Company have carried out a limited review of the said results in terms of Regulation 33 of SEEJI ( Listing Obligations and Disclosure Requirements ) Regulations. 2015

8. Figures for the previous periods have been regrouped / reclassified wherever necessary to conform to current period’s classification

Rabi Chowdhury
Managing Director (Generation)

Debasish Banerjee
Managing Director (Distribution)