CESC Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2019

1. In the above standalone financial results of the Company, revenue from operations has been arrived at based on the relevant orders of the West Bengal Electricity Regulatory Commission (WBERC), the regulator. 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 finalisation of the underlying issues relating to mining of coal from Sarisatoli coal mine, which commenced from April, 2015.

2. During the financial year ended March 31, 2018, the Company had given effect to the composite scheme of arrangement approved by Hon'ble National Company Law Tribunal (NCLT) (the appropriate authority) except for demerger of the Generation Undertaking which shall be effective upon approval of the Hon'ble West Bengal Electricity Regulatory Commission (WBERC) to the Power Purchase Agreement (PPA) between the Company and Haldia Energy Limited (One of the Scheme Companies) which is awaited.

3. 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 B 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, the basis of which be considered by the West Bengal Electricity Regulatory Commission (Commission) in determining the Company's tariff for the year, which is also required to be used for accounting purpose as specified in the said Regulations, Based on legal opinions and independent accounting opinions obtained, the Company continues with the consistently followed practice of recouping from the retained earnings an additional charge of depreciation relatable to the increase in value of assets arising from fair valuation which for the current year amounts to Rs.304.04 crore (previous year- Rs. 306.25 crore) and corresponding withdrawal of Rs. 2.71 crore ( previous year Rs. 5.16 crore ) consequent to sale! disposal of such assets and the same will be followed in subsequent years .

4. (i) Other expenses contained in columns (1) to (5) include interest on security deposit of Rs.26 crore, Rs.27 crore, Rs.23 crore, Rs.107 crore and Rs. 108 crore, for the respective periods.

(ii) EPS without Regulatory (income) /expenses contained in Columns (1) to (5) in the above financial results works out to Rs.0.60, Rs 1.22, Rs 2.12, Rs 36.88, Rs 52.59 for the respective periods.

5. An interim dividend of Rs. 280 crore including dividend distribution tax (Rs.17.50 per equity share) was declared on 5th February, 2019 and paid during the quarter.

6. Figures for the quarters ended 31st March, 2019 and 31st March, 2018 are the balancing figures between the audited figures in respect of the full years and the reviewed figures of nine months ended 31st December, 2018 and 31st December, 2017 respectively.

7. The Company has adopted Ind AS 115 'Revenue from Contracts with Customers' effective 1st April, 2018, Application of Ind AS 115 does not have any significant impact on retained earnings and financial results of the Company.

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

9. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 17 May 2019.

10. Figures for the previous periods have been regrouped / reclassified wherever necessary to confirm to current period's classification.