SJVN Ltd Management Discussions

1. INDUSTRY OVERVIEW/ INDUSTRY STRUCTURE AND DEVELOPMENTS

All India installed power generation capacity as on 31.03.2025 was 4,75,211.80 MW. Capacity addition of 33398.66 MW comprising 3875 MW of thermal and 799.99 MW of large hydro and 28723.67 MW in other renewables (Solar, Wind, Small Hydro S Bio-power) has been added in FY 2024-25 upto March, 2025 (Provisional data of CEA).

India successfully met an all-time maximum power demand of 250 GW during FY 2024-25. Per capita electricity consumption in India has surged to 1,395 kWh in 2023-24, marking a 45.8% increase (438 kWh) from 957 kWh in 2013-14. The average availability of electricity in rural areas has increased from 12.5 hours in 2014 to 21.9 hours, while urban areas now enjoy up to 23.4 hours of power supply. India targeted installation of 900 GW capacity by 2031-32 as per Nation Electricity Plan 2022-32.

Industry scenario indicates that there is ample opportunity for consistent growth of business in hydro, renewable and thermal energy sectors in the times to come with growth in demand. The present installed capacity of SJVN is 2967.52 MW and 4434.98 MW is under construction.

As regards hydro potential, India has an estimated hydro power potential of about 133410 MW out of which only about 47728.16 MW (including 4745.60 MW PSP as on 31.03.2025) has been commissioned. The bulk of the unharnessed potential is located in the hill states / UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu &Kashmir. With fast increase in installed capacity of solar power, hydropower with its peaking power has huge potential to contribute towards grid stability. The above industry scenario signifies that there is ample opportunity for consistent growth of business in hydro sector. Pumped Storage Projects (PSPs) also have a significant role to play, to act as water batteries to store solar energy during daytime and generate peaking power at non-solar hours.

2. OPPORTUNITIES ANDTHREATS (SWOT)

(I) STRENGTHS:

Strength position SJVN for continued success in the power generation sector.

¦ Expertise in developing large hydro power projects from concept to commissioning, operation, and maintenance.

¦ State-of-the-art hard coating facility and complete design capability for mega hydro power projects.

¦ Minimaldowntime and high Plant Availability Factor.

Long-term power purchase agreements ensure stable revenue.

¦ Historicalfinancial performance and steady cash flows enable funding for new projects.

¦ Lean organization with high revenue and profit per employee.

¦ Committed employees with a philosophy that acknowledges and rewards contributions. Excellence in CSR activities and implementation of National R&R policies.

¦ Effective corporate governance and dynamic leadership.

(ii) WEAKNESS:

NJHPS and RHPS are cascade schemes and operating in tandem. Any difficulties faced in the operation of NJHPS will have direct consequences on power generation of RHPS.

Initial high tariff of hydro projects- New hydro projects have higher tariff in the initial few years. It is difficult to compete with cheaper renewables and thermal power.

Reluctance of state governments to allot hydro/PSP projects.

(iii) OPPORTUNITIES:

¦ The unharnessed hydro potential primarily located in the hill states/UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu & Kashmir.

Country s dynamic and evolving landscape shaped by rapid economic growth, urbanization, and increasing energy demands.

¦ SJVNs expansion into wind, solar, and transmission, both nationally and internationally. Push by Golfor Pump Storage Plant to complement the intermittency of renewable power.

¦ Indias goal to reach 500 GW non-fossil energy capacity by 2030, creating opportunities.

These opportunities highlight the growth potential in Indias renewable energy sector. SJVN aims for 25 GW installed capacity by 2030, aligning with Indias 900 GW target by 2031-32.

(iv) THREATS:

¦ Most of the hydro-electric projects are located in remote locations and are prone to natural calamities such as cloud burst, land slide, road block etc. These natural calamities also contribute to delays, unforeseen events and cost escalation.

Stringent norms and cumbersome procedures for getting environment clearance, forest clearance and clearance from National Board for Wild Life (where ever applicable), Land Acquisition and other statutory clearances delay the commencement of construction of projects.

¦ Inspite of extensive survey and investigations, the probability of geological surprises in various components of hydroelectric projects in young Himalayan ranges pose great technical challenge involving extremely cost intensive and time consuming measures.

With the tariffs of solar and wind power projects going down, viability of hydro power projects, which is the core strength of SJVN, is becoming increasingly questionable.

Any technological breakthrough which makes battery storage systems for storing renewable energy economically and sustainably will may make hydro power generation unviable.

¦ Non signing of Power Purchase Agreements (PPAs) by beneficiaries for new hydro projects and disowning signed PPAs where tariff of the project is high.

Changes in hydro policy by state governments by introducing Water Cess, enhancing free power, etc.

3. Outlook

Indias power generation outlook is promising, driven by expected growth in industrial production and the governments mission to provide 24x7 electricity to all. SJVN plays a significant role in this endeavor, aiming to supply affordable power. Key highlights of SJVNs progress include existing Portfolio of 12 power stations with an installed capacity of 2967.52 MW (12 No s + 501.02 MW i.e. Part Commissioning of 1000 MW Bikaner SPP) which includes three hydro, two wind and seven solar projects across the country. Subsequent to the announcement of Green Hydrogen Policy by Govt, of India, SJVN has also commissioned one Pilot Green Hydrogen in Himachal Pradesh. SJVN aims to achieve 25,000 MW by FY 2030 and 50,000 MW by 2040. Presently, seventeen projects totaling 4434.98 MW are under construction, expected to generate strong cash flows and propel the companys growth.

SJVNs efforts are poised to support Indias goal of universal electricity access while contributing to a cleaner energy future.

4. RISKSAND CONCERNS

SJVN Limited has established a comprehensive and effective risk management system as per the guidelines of ISO 31000:2018. SJVN Limited is the first CPSUto achieve this distinction.

Hydro Power Projects are capital intensive and have long gestation period. The rising cost of Hydro Projects on account of land compensation, delays in project completion due to natural calamities e.g. Cloud burst, land slide, social outrage, pandemic like covid etc. and delays in environment and forest clearances by concerned authorities lead to higher power tariff. Water being a state subject, obligation of free power and other incentives to State Governments is also leading to higher tariff. This has resulted into shift of emphasis from Hydro to cheaper alternate energy sources

In the solar projects, efficiency of solar panels reduces as they become older. High speed wind due to cyclone causes damage to solar panels and lightning strike on solar power plant can cause damage to equipment resulting in stoppage of solar power plant causing financialloss. The riskof electric shockand lightning also prevail among employees.

In the Wind projects climate change can lead to lower wind speeds, resulting in less energy generation than the minimum energy generation required as per PPA. In addition to this there are chances of excess temperature inside the wind tower due to climatic condition. Further high-speed wind due to cyclone and lightning on wind plant can damage to blades and causes toppling of tower and also damage to equipment resulting stoppage of wind power plant causing financialloss.

The Risk Management Policy has been disclosed on the website of the company www.sjvn.nic.in.

5. RISKMANAGEMENTFRAMEWORK

SJVN has implemented Risk Management Framework as per ISO 31000:2018 consisting of the following:-

1. Risk Identification and Assessment: SJVN conducts thorough identification of potential risks that could impact the organization s objectives and assessment processes across its projects and departments based on their likelihood and potential impact. This includes evaluating both internal factors (such as operational risks, financial risks, and compliance risks) and external factors (such as market risks, regulatory risks, and environmental risks).

2. Risk Mitigation Plan: Once risks are identified, SJVN develops risk mitigation plan to address identified risks. These plans involve implementing preventive measures, establishing control mechanisms, and implementing best practices to minimize the likelihood and impact of risks. For opportunities, SJVN devises action plans to maximize their potential benefits and value.

3. Regular Risk Review and Reporting: SJVN conducts periodic reviews of risks by organising meetings at project & corporate level and opportunities to ensure their relevance and effectiveness. Frequency of Project level Risk steering committee meeting is quarterly basis and for corporate level Risk steering committee meeting is half yearly basis. The RiskManagement committee of SJVN board convenes on biannual basis.

4. Preventive Actions and Continuous Improvement: SJVN emphasizes the implementation of preventive actions to address potential risks proactively. This involves conducting risk assessments, identifying control gaps, and implementing measures to strengthen controls and reduce the likelihood of risks occurring. The organization also fosters a culture of continuous improvement, regularly evaluating and enhancing risk management practices. For continuous improvement annual Risk audit is also conducted from external agency to check the compliance of ISO 31000:2018.

5. Training and Awareness: SJVN provides training and awareness programs to its employees to enhance risk identification, assessment and control capabilities. This ensures that employees across the organization understand their roles and responsibilities for protecting organisational assets, operations & reputations from potential harm and capitalizing on opportunities.

6. FINANCIAL DISCUSSION AND ANALYSIS

A detailed financial discussion and analysis is furnished below on the Audited Financial

Statements of the company for the financial year 2024- 25 vis-a-vis financial year 2023-24.

Notes referred in below paragraphs are part of the Standalone financial statements for the

financialyear 2024-25 placed elsewhere in this report.

Figures of previous years have been regrouped/ rearranged wherever necessary.

A. RESULTS OF OPERATIONS

1. INCOME:

Particulars	FY2024-25		FY2023-24
Units of Electricity Generated (Million Units)	9957.23		8292.28
INCOME				(< in crore)
1. Revenue from Operations
a) Energy Sales	2771.45		2474.78
b) Power Trading	75.62		40.21
c) Consultancy Income	7.15		6.69
d) Other Operating Revenues	43.03		11.91
Total Revenue from Operations		2897.25		2533.59
2. Other Income		355.19		299.97
Total Income		3252.44		2833.56

The income of the Company comprises revenue from sale of electricity, sale of energy through trading, late payment surcharge received from beneficiaries, consultancy, interest earned on investment of surplus funds, interest from employees & subsidiary companies, profit on sale of fixed assets and dividend from joint venture company etc. The gross income for financial year 2024- 25 is <3252.44 crore as compared to 2833.56 crore in the previous year registering an increase of 14.78 %. The increase in total income is primarily due to higher energy sales

resulting from increased electricity generation during the year.

Tariff for computation of sale of energy

The sale of electricity from the Company s major hydro power stations is governed by the tariff determined by the Central Electricity Regulatory Commission (CERC), in accordance with the Tariff Policy issued by the Government of India. CERC has notified the Tariff Regulations, 2024 containing inter-alia the terms & conditions for determination of tariff, applicable for a period of five years with effect from 01.04.2024. Pending issuance of provisional /final tariff orders effective from 01.04.2024, billing to beneficiaries for the financial year 2024-25 has been done provisionally in accordance with the tariff approved and applicable on 31st March 2024 in respect of Hydro Power Stations as per above regulations, except for Naitwar Mori Hydro Power Station. Under the CERC Tariff Regulations, tariff is determined based on Annual Fixed Charges (AFC), which comprise Return on Equity (ROE), depreciation, interest on loan, interest on working capital, and operation and maintenance (0&M) expenses. ROE is grossed up with the effective income tax rate of the respective financial year to ensure recovery of the income tax liability through tariff. For the purpose of recovery, AFC is bifurcated into two equal parts i.e. Energy Charges and Capacity Charges. Recovery of Energy Charges is dependent upon energy generated and full recovery is ensured when design energy level is achieved. Generation over and above design energy entitles for additional revenue in the form of secondary energy charges as well as incentive by way of deviation charges where the Power Station of the Company contribute towards maintaining grid stability. Recovery of capacity charges is dependent on the actual availability of plant for generating power with referenceto Normative Annual Plant Availability Factor (NAPAF). Company is entitled to receive incentives for achieving higher Plant Availability Factor against NAPAF. Sales also include reimbursement of Foreign Exchange Rate Variation (FERV) on loan repayment and interest, as allowed under Regulation the CERC Tariff Regulations.

Electricity generated by one of the Company s hydro power stations, Naitwar Mori Hydro Power Station (NMHEP), having an installed capacity of 60 MW, has been sold through Power Exchange and bilateralagreements with consumers.

Revenue from operations also includes sale of electricity generated from wind and solar power stations, at tariff rates specified in long-term Power Purchase Agreements (PPAs) signed with state government entities.

Revenue from Operations (Note 2.31)

Energy Sales

The Company sells electricity to bulk customers, comprising mainly electricity utilities owned by State Governments and private distribution companies. Sale of electricity is generally based on long term Power Purchase Agreements (PPAs) executed with such utilities. Sales for the financialyear 2024-25 have been recognized at <2771.45 crore as compared to 2474.78 crore in the financialyear 2023-24.

Energy sales include an amount of

Sales include an amount of <188.19 crore (previous year <157.71 crore) on account of capacity incentive in respect of hydro power stations mainly due to achievement of higher plant availability factor as compared to Normative Plant Availability Factor.

The company has a rebate policy for providing graded discounts for early payment. The rebate is netted off from energy sales.

Details of Generation and Plant Availability Factor (PAF) for hydro power stations, for which tariff is determined as per CERC regulations, are given below :

Particulars	NJHPS		RHPS
	2024-25	2023-24	2024-25	2023-24
Design Energy (MUs)	6612	6612	1878	1878
Gross Generation (MUs)	7421.45	6311.80	2074.00	1778.06
Normative PAF (%)	87	90	83	85
Actual PAF (%)	101.43	101.85	101.13	101.84

Sales also includes deviation charges amounting to <29.30 crore (previous year <24.48 crore) recognised for positive deviation in generation from the scheduled energy, in accordance with the Deviation Settlement Mechanism (DSM) rates notified by CERC.

Gross energy generation from Naitwar Mori HEP having installed capacity of 60 MW during the year is 316.41 MUs (Previous Year 41.52 MUs). This power station commenced commercial operation during the third quarter of the previous financial year. Electricity generated from this power station has been sold through Power Exchange and bilateral agreement. An amount of 43.63 crore has been recognized as sales for the year ended 31st March 2025 (Previous Year 18.18 crore).

Revenue from Wind/Solar Power Stations:

The revenue from sale of electricity from Renewable Energy Power Stations (Wind and Solar Power) has decreased by 5.56 crore (Current year Rs48.83 crore) (Previous year Rs54.39 crore) due to decrease in generation from Wind and Solar Power Stations by 15.53 MUs (Current year 145.37 MUs) (Previous year 160.90 MUs).

Sale ofEnergy through trading

Revenue from operations for the year include an amount of T75.62 crore on account of sale of power through trading (Previous year =Rs40.21 crore).

Consultancy

Revenue from operations also includes an amount of 7.15 crore (Previous Year Rs6.69 crore) towards consultancy charges.

Other Operating Revenue:

Other Operating Revenue primarily includes fees received by the Company as a Renewable Energy Implementation Agency (REIA), and income from the sale of Renewable Energy Certificates (RECs). Other operating income increased by 31.12 crore to T43.03 crore in the current year, against T11.91 crore in the previous year. Increase is mainly on account of recognition of REIA related fees during the year.

Revenue from operations constituted 89.08% of total income in FY 2024-25, as against 89.41% in FY 2023-24.

OtherIncome (Note 2.32)

Other income primarily consists of interest income from term deposits with banks, interest from subsidiary companies, late payment surcharge, interest from employees and contractors, and interest on income tax refunds. Other income increased by 55.22 crore to 355.19 crore in FY 2024-25 (Previous Year 299.97 crore), registering a growth of 18.41%. This increase is primarily attributable to higher interest income from subsidiary companies, which increased by 68.05 crore to T102.02 crore (Previous Year 33.97 crore). However, interest income from banks on investable funds declined by 23.25 crore to T163.51 crore (Previous Year T186.76 crore), mainly due to lower interest rates and a decrease in investable funds.

Major components of other income are as under

(Rs in crore)

Other Income	Financial Year 2024-25	Financial Year 2023-24
Interest from Banks	163.51	186.76
Interest from Subsidiary Companies	102.02	33.97
Late Payment Surcharge from Beneficiaries	22.54	16.51
Other Miscellaneous Income*	67.12	62.73
Total Income	355.19	299.97

Includes income from liquidated damages, excess provision/sundry credit balances written back, receipt of maintenance of IGF, interest from employees and contractors, interest on income tax refund, bid processing fees, and dividend from joint venture companies, etc.

2 EXPENDITURE Rincrnre ,

Expenditure	Financial Year 2024-25	Financial Year 2023-24
Purchase of Electricity for Trading	75.16	39.98
Employee Benefits Expense (note no. 2.33)	304.61	299.29
Finance Costs (note no. 2.34)	726.48	478.78
Depreciation, Amortisation and Impairment Expense (note no. 2.35)	454.49	534.11
Other Expenses (note no. 2.36)	395.60	386.17
Total Expenditure	1956.34	1738.33

The total expenditure of the Company increased by 12.54% to TI956.34 crore in FY 2024-25 as against T1738.33 crore in FY 2023-24. This increase is primarily attributable to a rise in finance cost by T247.70 crore, which stood at T726.48 crore in FY 2024-25, as compared to T478.78 crore in FY 2023-24. Total expenditure as percentage of total income in FY 2024-25 was 60.15% as compared to 61.35% in FY 2023-24.

Purchase of Electricity for Trading

Company has incurred an expenditure of Rs75.16 crores on purchase of electricity for trading during the financial year 2024-25 as compared to 39.98 crore in the previous financialyear. Employee Benefits Expense

Employee Benefits Expense includes salaries and wages, allowances, incentives, contributions to provident and other funds, and welfare expenses. These expenses accounted for 15.57% of total expenditure in FY 2024-25, as compared to 17.22% in FY 2023-24.

Employee Benefits Expense for the year was T304.61 crore (previous year 299.29 crore) reflecting an increase of T5.32 crore in comparison to the previous year. The increase is mainly on account of annual increment & increase in DA etc.

Finance Costs

The Finance Cost mainly consists of interest on rupee term loans, working capital loans, foreign currency loans, guarantee fees, interest on bonds and interest on arbitration awards etc. During the FY 2024-25, finance costs increased by T247.70 crore to 726.48 crore (previous yean T478.78 crore). This increase is primarily due to increase in borrowings and an increase in foreign exchange rates as on 31st March 2025.

The increase in finance cost during the year is mainly due to the reasons enumerated as below:

i) Increase of Foreign Exchange Rate Variation (FERV) on restatement of foreign currency loans by 96.54 crore (Current Year T112.65 crore) (Previous Year T 16.11 crore) on account of rise in foreign currency rates.

ii) Increase in interest on foreign currency borrowings by T14.22 crore (current year Rs 221.49 crore) (previous year 207.27 crore).

iii) Increase in interest on domestic borrowings by TI34.64 crore (Current Year T 346.63 crore) (Previous year: T 211.99 crore) due to additional borrowing raised during the year.

The above finance cost includes an amount of TI02.02 crore (previous year 33.97 crore), which is recoverable from subsidiary companies against loans provided to them, and has been accounted for under other income.

Finance Cost represents 37.13% of the total expenditure during FY 2024-25 as compared to 27.54% during FY 2023-24.

Depreciation, Amortisation and Impairment Expense

As per the Accounting Policy of the Company, depreciation is charged on assets of operating units on straight line method following the rates & methodology notified by Central Electricity Regulatory Commission (CERC) for the purpose of fixation of tariff in accordance with Schedule-ll of the Companies Act 2013. Depreciation on assets other than operating units of the company is charged to the extent of 90% of the cost of the asset following the rates notified by CERC for fixation of tariff except for some items for which depreciation is charged at the rates assessed by the company.

The depreciation, amortisation and impairment expense for FY 2024-25 decreased by T79.62 crore to T454.49 crore as compared to 534.11 crore in the previous year.

The decline is primarily attributable to the recognition of an impairment loss of Rs138.70 crore in FY 2023-24 in respect of the Company s wind and solar power projects, in accordance with Ind AS 36 (Impairment of Assets). No such impairment loss was required to be recognised in FY 2024-25, based on the impairment assessment carried out in line with the provisions of Ind AS 36. The decrease was partially offset by higher depreciation during FY 2024-25, due to a full year of depreciation on Naitwar Mori Hydro Power Station, which was capitalised in the third quarter of the previousyear.

Depreciation, amortisation and impairment represents 23.23% of the total expenditure during FY 2024-25 as against 30.73 % in FY2023-24.

OtherExpenses

Other Expenses mainly comprise Repair & Maintenance of Buildings, Roads, Electromechanical works and Plant & Machinery, Insurance, Security, CSR Expenses and other administrative expenses.

Other Expenses represents 20.22 % of total expenditure during FY 2024-25 in comparison to 22.21 % in FY 2023-24. In absolute terms, the expenses were <395.60 crore in FY 2024-25 as compared to 386.17 crore in the previous year, reflecting a marginal increase of 9.43 crore.

Net Movement in Regulatory Deferral Account Balance (Note no. 2.38)

The Company is primarily engaged in the generation and sale of electricity. The tariff for electricity supplied from its major hydro power stations is determined by the Central Electricity Regulatory Commission (CERC), which lays down the principles and methodologies for tariff determination. The tariff is based on allowable costs such as interest, depreciation, operation and maintenance expenses, and includes a stipulated return on equity.

CERC Tariff Regulations also allow certain costs such as foreign exchange rate variation (FERV) and interest on arbitration awards etc. to be recovered from beneficiaries through future tariffs. In line with these provisions, and as permitted under Ind AS 114 (Regulatory Deferral Accounts), related balances are recognised as regulatory deferral account debits or credits to reflect timing differences between cost incurrence and recovery.

FERV arising during the construction period is capitalised. However, exchange differences arising during the operational period, recoverable through tariff, are recognised as regulatory deferral account balances on an undiscounted basis and adjusted when they become recoverable or payable. Accordingly, <(44.04) crore (previous year <(43.15) crore) has been adjusted from the Regulatory Deferral Account Debit Balance during FY 2024-25.

Additionally, interest on arbitration awards of 28.52 crore (previous year <31.38 crore) has been recognised under regulatory deferral balances, being recoverable through tariff.

As a result, net regulatory income (net of tax) of (12.81) crore (previous year <(9.71) crore) has been recognised in the Statement of Profit and Loss for FY 2024-25.

Profit before net movement in regulatory deferral account balances and Tax Profit before net movement in regulatory deferral account balances and tax increased by 10.39 % to <1296.10 crore during FY 2024-25 as against TI174.08 crore during previous year due to the reasons explained above.

Tax Expenses:

Current Tax Expense

The Company recognises tax on income in accordance with provisions of Income Tax Act,1961. During the year, the Company is liable to pay tax equivalent to Minimum Alternate Tax (MAT). The Current Tax including adjustment relating to earlier years is 226.46 crore as compared to <201.55 crore during the previous year. The increase in tax incidence is due to increase in Profit before tax during the year.

Deferred Tax (Note no. 2.8)

Deferred tax for the year has been recognised on account of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their corresponding tax bases. An amount of <86.65 crore has been recognised as deferred tax expense during FY 2024-25, as compared to <54.42 crore in FY 2023-24.

The higher deferred tax expense in the current year is mainly due to a reduction in the difference between the carrying amount and the tax base of assets. In the previous year, this difference had increased due to the recognition of an impairment loss, which was not allowable under tax laws and therefore resulted in a higher tax base compared to the carrying amount. Other Comprehensive Income

The Other Comprehensive Income (OCI) is on account of re measurement of net defined benefit liability/asset in respect of employee benefits. OCI net of tax for the FY 2024-25 is <(10.99) crore as compared to <(4.51) crore in FY 2023-24.

Cash Flows

Cash & cash equivalents and cash flows on various activities are given below:

(Rs in crore)

Particulars	F.Y. 2024-25	F.Y. 2023-24
Opening cash & cash equivalent	256.73	(168.03)
Net cash from operating activities	2187.44	1139.45
Net cash used in investing activities	(1730.78)	(2170.83)
Net cash flow from financing activities	(672.88)	1456.14
Net increase/(decrease) in cash and cash equivalent	(216.22)	424.76
Closing cash and cash equivalents	40.51	256.73

Statement of cash flows include cash flows from operating, investing and financing activities.

Net cash generated from Operating Activities was <2187.44 crore during the year 2024-25 (Previous year <1139.45 crore). The increase is mainly attributable to higher revenue from increased energy generation at hydro power stations and higher liquidation of recoverable financial assets during the year as compared to previous year.

Cash outflow on investing activities was <1730.78 crore as compared to <2170.83 crore in the previous year. Cash outflow on investing activities is mainly on account of expenditure toward Property, Plant Si Equipment, Capital Work in progress of new hydro projects and investment in subsidiary companies etc. Cash inflow in investment activities arises from encashment of TDR s, interest from banks, dividend income from joint venture etc. There is decrease in investment in Property, Plant & Equipment and Capital Work in progress etc as compared to previous year by <86.76 crore (current year <986.00 crore) (previous year <1072.76 crore). There is also a decrease in investment in subsidiary companies (including share application money) by <985.27 crore (current year Rs 1014.73 crore) (previous year <2000 crore). Further, during the year cash outflow on account of loans extended to subsidiaries decreased by <340.44 crore in comparison to previous year (Current year <201.62 crore) (Previous year <542.06 crore).

During the year there is a decrease in term deposits with banks by <1032.58 crore as compared to previous year (current year <175.94 crore) (previous year <1208.52 crore) and there is increase in interest income from banks, subsidiaries and late payment surcharge from beneficiaries by <60.16 crore as compared to previous year (current year <292.48 crore) (previous year <232.32 crore).

During the year the net cash outflow of <672.88 crore from financing activities (Previous year <(1456.14) crore) as detailed below:

Borrowings amounting to <1151.43 crore was raised during the year as compared to <3021.88 crore during the previous year and borrowings amounting to <387.52 crore was repaid in the current year (Previous year <298.13 crore). During the year, cash outflow on account of payment of dividend was <707.24 crore (Previous year <695.67 crore). Interest & Finance charges paid during the year were <722.34 crore (Previous year <563.54 crore).

B. Financial Position

The items of the Balance Sheet are as under

1. ASSETS:

(I) Non-Current Assets

(Rs in crore)

Particulars	As at March 31,
	2025	2024
Property, Plant and Equipment (Note 2.1)	7978.63	7980.27
Capital Work-in-progress (Note 2.2)	3110.66	2483.05
Intangible Assets (Note 2.3)	0.95	1.51
Intangible Assets Under Development (Note 2.4)	252.50	252.50
Financial Assets
- Investments (Note 2.5)	8881.18	7931.45
- Loans (Note 2.6)	812.96	645.69
- Others (Note 2.7)	296.80	129.50
Deferred Tax Assets(Net) (Note 2.8)	342.85	429.50
Other Non-Current Assets (Note 2.9)	907.72	907.24
Total	22584.25	20760.71

Non-Current Assets has increased by 8.78 % to <22584.25 crore (Previous year <20760.71 crore).

Property, Plant and Equipment (PPE)

PPE includes net block after depreciation in respect of land, buildings, roads & bridges, plant & machinery, generating plant & machinery, electrical works, hydraulic works (such as dams, tunnels etc.), vehicles, electrical/office equipment, furniture/fixtures, data processing Equipment etc. Gross block of PPE during the year increased by <448.16 crore to <12570.15 crore (Previous year <12121.99 crore). This increase is attributable to the acquisition, addition, and capitalisation of new assets during the year. However, net Block

decreased by <1.64 crore to <7978.63 crore at the end of current year (Previous year 7980.27 crore) due to depreciation charged during the year, partially offset by the addition to the asset base.

Capital Work-in-progress (CWIP)

Capital Work-in-progress during Current year registered an increase of 25.28% to 3110.66 crore (Previous year 2483.05 crore). The increase in CWIP is primarily due to construction activities in ongoing hydroelectric projects such as Sunni Dam HEP, Dhaulasidh HEP and Luhri-1HEP.

Intangible Assets

Net block of Intangible Assets at the end of Current year is 0.95 crore (previous year TI.51 crore) due to charging of depreciation on Intangible Assets during the year.

Intangible Assets Under Development

Intangible Assets Under Development stood at 252.50 crore as on 31st March 2025, unchanged from the previous year. The amount is on account of upfront fees paid for the Etalin and Attunli Hydro Electric Projects, located in Arunachal Pradesh.

Non-current Financial Assets Investments

Investments are intended for long-term holding and primarily comprises equity contribution in wholly owned Subsidiaries and a Joint Venture Company. Total Investments at the year end is 8881.18 crore (Previous year 7931.45 crore).The increase in investments is due to infusion of equity in Subsidiary Companies, namely SJVN Green Energy Limited amounting to 500.00 crore and SJVN Thermal Pvt. Limited amounting to 435.00 crore. During the year, SJVN increased its shareholding in its Joint Venture Cross Border Power Transmission Company Limited (CPTC) from 26% to 41.94% by acquiring 7730227 additional equity shares of T10 /- each for a total consideration of <14.73 crore.

Loans

Non-current loans are those which are expected to be realised beyond 12 months from the balance sheet date. These primarily include loans extended to subsidiary companies, and loans and advances given to employees at concessional rates. Loans at the end of current year is 812.96 crore (Previous year 645.69 crore). The increase is mainly due to providing interest bearing loan of TI65.18 crore to subsidiary company, SJVN Green Energy Limited, during the year.

Other Financial Assets

Other Non-current Financial Assets includes Bank Deposits with more than twelve months maturity and interest accrued thereon. Other Non-current Financial Assets at the end of current year is 296.80 crore (Previous year <129.50 crore).The increase is primarily due to the amount paid as share application money to SJVN Thermal Private Limited and SJVN Lower Arun Power Development Company Private Limited, both wholly-owned subsidiaries, for which allotment of shares was pending as on the balance sheet date.

Deferred Tax Assets (Net)

The net deferred tax assets decreased by 86.65 crore to 342.85 crore as on 31st March 2025 compared to 429.50 crore in the previous year. The decrease in deferred tax asset in the Balance Sheet during the year is mainly on account of changes in temporary differences between the book values of assets and liabilities and their corresponding tax bases, alongwith the utilisation of MAT credit during the year.

Net decrease in deferred tax assets amounting to 86.65 crore during the year has been debited to statement of profit and loss (Previous year 54.42 crore).

Other Non-current Assets

Other non-current assets mainly comprise of advance tax & tax deducted at source (net of provision for tax), Capital Advances given to Contractors and govt departments/ organisations for capital works, and deferred employee benefits expense. Other non- current assets at the end of Current Year are <907.72 crore (Previous year 907.24 crore).

(ii) Current Assets

(Rs in crore)

Particulars	As at March 31,
	2025	2024
Inventories (Note 2.10)	83.27	81.81
Financial Assets
-Trade Receivables (Note 2.11)	530.18	613.03

-Cash and Cash Equivalents (Note 2.12)	59.98	256.79
-Bank Balances Other than cash and cash equivalents (Note 2.13)	1584.46	1764.39
-Loans (Note 2.14)	131.91	95.88
-Others (Note 2.15)	1038.00	1279.57
Other Current Assets (Note 2.16)	105.71	101.45
Total	3533.51	4192.92

Current Assets as on 31st March 2025 has decreased by 15.73 % to <3533.51 crore (Previous year ^4192.92 crore).

Inventories

Inventories mainly comprise stores & spares which are maintained for operational power stations. Inventories are valued at lower of cost arrived at on weighted average basis and net realisable value. Inventories were valued at Rs83.27 crore as on 31st March 2025 (Previous year <81.81crore).

Financial Assets Trade Receivables

Trade Receivables mainly consists of receivables on account of Sale of Energy. Trade Receivables including unbilled revenue during the Current year has decreased by <32.85 crore to <530.18 crore (Previous year <613.03 crore). This decrease is due to realisation of outstanding debts. Trade receivables include an amount of <404.55 crore (Previous year <447.44 crore) on account of unbilled revenue.

Cash & cash equivalents and Other bank balances

Cash & cash equivalents and other bank balances comprise mainly balances in Term Deposits and current account.

Cash & cash equivalents and other bank balances during the current year have decreased by <376.74 crore to <1644.44 crore (Previous year <2021.18 crore).

Cash S cash equivalents and other bank balances are 46.54% of current assets as on 31st March 2025 (Previous year 48.20%)

Loans

Short-term loans as on 31st March 2025 have increased by <36.03 crore to <131.91 crore as compared to <95.88 crore at the end of the previous year. This increase is mainly due to additionalshort-term loans extended to subsidiary companies.

Other Financial Assets

Other financial assets include interest accrued but not due on deposits with Banks, amount recoverable from Contractors & Suppliers, Government Departments and amount receivable from subsidiaries and joint ventures etc. Other financial assets decreased by <241.57 crore to <1038.00 crore during current year (Previous year <1279.57 crore). The decrease is primarily attributable to a reduction in the amount receivable from subsidiary companies on account of transfer ofprojects to them.

Other Current Assets

Other Current Assets mainly include advances to Govt Departments other than capital advances and prepaid expenses. Other current assets have increased marginally by <4.26 crore to <105.71 crore during current year (Previous year <101.45 crore).

Assets Held for Sale

As on 31st March 2025, there were no assets classified as held for sale (Previous year <0.07 crore). The land and building that had been classified as held for sale in the previous year, in accordance with Ind AS105, have been reclassified to Property, Plant and Equipment during the current year due to a change in management s intention regarding their use.

Regulatory Deferral Account Debit Balance

Regulatory deferral account debit balances represent the portion of expenses recognised in the Statement of Profit and Loss and which are recoverable from the beneficiaries in future tariff periods, in accordance with the DERG Tariff Regulations and accounted for as per the provisions of Ind AS 114 - Regulatory Deferral Accounts Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries.

Regulatory deferral account balances include foreign exchange rate variation on foreign currency loans and interest on arbitration awards and similar items. Regulatory deferral account debit balance as on 31st March 2025 was 768.83 crore (Previous year 784.35 crore). The decrease is mainly due to decrease in foreign exchange variation recoverable by 44.04 crore, which was partially offset by an increase of 28.52 crore in interest on arbitration awards during the year.

2. EQUITY AND LIABILITIES

(I) Total Equity

Total Equity of the Company at the end of the financial year 2024-25 has increased to T14282.10 crore from <14030.28 crore in the previous year registering an increase of 1.79% as per details given below:

(Rs in crore)

Particulars	Total Equity
Opening balance as on 01.04.2024	14030.28
Add: Profit for the year	970.18
Add/(Less): Other comprehensive income/(Loss)	(10.99)
Less: Dividend paid	707.37
Closing balance as on 31.03.2025	14282.10

The increase in total equity resulted in increase in the book value per share to <36.34 as on 31st March 2025 (Previous year <35.70 per share).

(ii) Non-current financial liabilities

(Rs in crore)

Particulars	As at March 31,
	2025	2024
Borrowings (note no. 2.21)	9840.25	9036.48
Lease liabilities (note no. 2.22)	10.67	10.52
Provisions (note no. 2.23)	139.92	129.44
Other non-current liabilities (note no. 2.24)	670.83	684.26
Total	10661.67	9860.70

Borrowings

Total borrowings as on 31st March 2025 including current maturities and interest accrued but not due on long term borrowings were <10437.99 crore as against <9565.28 crore as on 31st March 2024. Current maturities of long-term borrowings have been shown under current financial liabilities (Borrowings) and interest accrued but not due on borrowings have been shown under other current financial liabilities. Details of total borrowings are as under:

(Rs in crore)

Particulars	As at March 31, 2025	As at March 31, 2024
Non-current Borrowings (note no. 2.21)	9840.25	9036.48
Current maturities of non-current borrowings included in current financial liabilities (borrowings) note no.2.25	544.32	462.05
Interest Accrued but not due on Borrowings (note no. 2.28)	53.42	66.75
Total Borrowings	10437.99	9565.28

Borrowings excluding current maturities and interest accrued but not due on long term debts have registered an increase of 8.89 % amounting to <803.77 crore. Total non-current borrowings as on 31st March 2025 are <9840.25 crore (previous year <9036.48 crore). Details of non-current borrowings are as under

Bonds/Debentures

The company has issued 6.10% p.a unsecured non-convertible redeemable bonds of <1000000/- each redeemable at face value. The outstanding amount including accrued interest as on 31st March 2025 was <1030.75 crore, (previous year <1030.92 crore).

Rupee Term Loans:

Total outstanding rupee term loans drawn from domestic banks including current maturities and interest accrued but not due as on 31st March 2025 were <5083.31 crore (previous year <4010.48 crore).

Foreign currency borrowings:

Foreign currency borrowings are from PNB, World Bank and Japan Bank of International Cooperation. Total outstanding as on 31st March 2025 was <4323.93 crore (Previous year <4523.88 crore).

The debt-to-equity ratio (inclusive of Short-Term Borrowings and accrued interest) at the end of financial year 2024-25 of the company is 0.74 (previous year 0.69).

Lease Liabilities

The lease liabilities are on account of present value of lease rentals payable over the period of lease in respect of assets taken on lease by the company. The lease liabilities have been measured at the present value of the remaining lease payments. Lease liabilities during the current year is <10.67 crore (Previous year <10.52 crore).

Non-current Provisions

Non- current Provisions are on account of long-term employee benefits provided on the basis of actuarial valuation and includes leave encashment and Other Retirement Benefits which are expected to be settled beyond a period of twelve months from the balance sheet date. Noncurrent provisions increased by <10.48 crore to <139.92 crore during current year (Previous year <129.44 crore).

(iii) Other Non-current Liabilities

Other non-current liabilities include income received in advance on account of Advance Against Depreciation (AAD) in accordance with CERC regulations, government grants, and deferred income arising from foreign currency fluctuations.

Other non-current liabilities have registered a decrease of <13.43 crore to <670.83 crore compared to <684.26 crore in the previous year. This decrease is mainly due to the transfer of AAD amounting to <32.25 crore to current liabilities, as the same is adjustable within 12 months from the balance sheet date, partially offset by the receipt of a government grant of <19.14 crore during the year.

(iv) Current financial liabilities:

(Rs in crore)

Particulars	As at March 31,
	2025	2024
Borrowings (note no.2.25)	663.49	562.11
Lease liabilities (note no. 2.26)	4.91	4.65
Trade payables (note no. 2.27)	44.39	64.68
Other financial liabilities (note no. 2.28)	610.71	606.27
Other current liabilities (note no. 2.29)	46.26	46.36
Provisions (note no. 2.30)	573.06	563.00
Total	1942.82	1847.07

The Current Liabilities as on 31st March 2025 and 31st March 2024 were <1942.82 crore and <1847.07 crore respectively. The Current Liabilities have increased by 5.18 % mainly due to increase in Borrowings.

Borrowings

During the year company has availed the bank overdraft and short-term loan from banks to finance the short-term fund requirements. Outstanding amount of short-term loan from banks/overdraft as 31st March 2025 was <119.17 crore (Previous year: <100.06 crore). Borrowings also include an amount of <544.32 crore (Previous year <462.05 crore) being current maturities of long-term debts payable within twelve months from the balance sheet date. Total outstanding balance of borrowings at the end of the year is <663.49 crore (previous year <562.11crore).

Lease Liabilities

Lease liabilities represent the amount of lease payments payable within the next twelve months. As on 31st March 2025, lease liabilities stood at <4.91 crore, compared to <4.65 crore in the previous year.

Trade Payables

Trade payables include liabilities in respect of amount due on account of goods purchased or services received in normal course of business operations other than liability for Purchase/ Construction of Fixed Assets. Trade Payables at the end of current year is Rs44.39 crore (Previous year f 64.68 crore).

Other current financial Liabilities

Other Financial Liabilities primarily comprise interest accrued but not due on loans, liabilities for employees remuneration and benefits, liabilities for purchase/construction of fixed assets, and deposits, retention money from contractors and Others. Other Current financial Liabilities have marginally increased by f4.44 crore to 610.71 crore (Previous year 606.27 crore).

Other Current Liabilities

Other Current Liabilities mainly include current liability of Advance against Depreciation, Advance from customers and TDS & other taxes payable. Other current liabilities at the year- end were 46.26 crore (Previous year 46.36 crore).

Provisions

Short Term Provisions include unfunded employees benefits payable within twelve months as per actuarial valuation, interest on arbitration awards and Performance Related Pay (PRP) etc. Provisions have increased by Rs10.06 crore in the FY 2024- 25 to Rs573.06 crore (Previous year

563.00 crore). This increase is mainly due to increase of provision for interest on arbitration awards.

C. Contingent liabilities (note no. 2.49)

The following are the components of claims against the company not acknowledged as debt:

(Rs in crore)

Particulars	As at 31.03.2025	As at 31.03.2024
Capital Works	288.17	302.74
Land Compensation	25.06	25.06
Disputed Income Tax Demand	89.74	297.87
Guarantees	3421.41	2400.99
Water Cess	280.19	280.19
Others	-	247.25
Total	4104.57	3554.10

Contingent Liabilities increased by 550.47 crore to T4104.57 crore as 31st March 2025 as compared to 3554.10 crore in the previous year. The increase is primarily attributable to a corporate guarantee provided by the Company in respect of a loan availed by a subsidiary company.

0. Business and financial review of Subsidiary & Joint Venture Companies

1. Subsidiary Companies:

As of 31st March 2025, the Company has five subsidiary companies, out of which four are wholly owned subsidiaries. All subsidiaries are currently in the construction phase, except SJVN Green Energy Limited (SGEL), which hasfive operational projects with a total capacity of 390 MW.

The performance of the subsidiaries is as under :

(i) SJVN Thermal Pvt. Ltd.

SJVN Thermal Pvt. Ltd is 100% subsidiary company of SJVN Ltd. The authorized share capital of SJVN Thermal Pvt. Ltd. is f 4000 crore. The Company has taken up the development of 1320 MW Coal based Thermal Power Project located near Chausa village in District Buxar of Bihar State, which is in construction stage. Total paid up equity share capital as on 31st March 2025 is 2946.68 crore (Previous yea r f 2511.68 crore). Total Assets as on 31st March,2025 was f 11385.07 crore (Previous Year T 9228.35 crore).

(ii) SJVN Arun 3 Power Development Company Pvt. Ltd.

SJVN Arun 3 Power Development Company Pvt. Ltd. was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25.04.2013. The authorized share capital of the company is 2714.35 crore (NPR 4342.96 crore). Presently the company is executing the 900MW Arun-3 Hydroelectric Project in Nepal which is under construction. This project is to be installed in the Sankhuwasabha District of Nepal. Total paid up equity capital as on 31st March 2025 is 2105.41 crore (Previous year 210 5.41 crore). Total Assets as on 31st March 2025 is Rs 6068.29 crore (Previous Year Rs5100.00 Crore).

(iii) SJVN Green Energy Ltd.

SJVN Green Energy Limited (SGEL) was incorporated in India on 30th March 2022. The

authorised share capital of the company is 5000 crore. The purpose of formation of SGEL is to have a focussed approach for expanding/managing the renewal energy portfolio (other than hydro) of SJVN group.

Five projects of SGEL of 390 MW are in commercial operation and revenue of TI80.72 crore (Previous year Rs52.46 crore) has been earned. Total paid up equity share capital as on 31st March 2025 is 33800.00 crore (Previous year 3300.00 crore). Total Assets as on 31st March 2025 is fl 2281.04 crore (Previous year 3 8673.46 crore).

(iv) SJVN Lower Arun Power Development Company Pvt. Ltd.

SJVN Lower Arun Power Development Company Pvt. Ltd. incorporated in Nepal on 26th May 2023. The authorised share capital of the company is f 1737.71 crore. The purpose of formation of the company is for development and execution of Lower Arun Hydro Power Project and other Power Projects in Nepal. Total assets of the company as on 31st March 2025 is f 150.51 crore (Previous year fl 06.75 crore).

(v) SGEL Assam Renewal Energy Limited

SGEL Assam Renewal Energy Limited has been incorporated on 18th April 2024 as a subsidiary of SJVN Green Energy Limited. Total paid up equity share capital as on 31st March 2025 is f 25.00 crore (Previous year nil) . Total Assets as on 31st March 2025 is f 23.85 crore (Previous Year nil)

2. JointVenture Company

Cross Border PowerTransmission Company Limited

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd, Power Grid Corporation of India Ltd. (PGCIL) and Nepal Electricity Authority (NEA). As on 31st March 2025, the Company holds a 41.94% equity interest in Cross Border PowerTransmission Company Limited (CPTC). During the year, SJVN increased its shareholding in CPTC from 26% to 41.94% by acquiring 7730227 additional equity shares of 310 /- each for a total consideration of f 14.73 crore. Accordingly, the total investment of SJVN in CPTC stood at f 27.34 crore as on 31st March 2025, as against fl 2.61 crore in the previous year.

The performance of the JointVenture company is as under

The Company is principally engaged in establishment, operation & maintenance of Indian Portion of Indo-Nepal Cross Border Transmission Line from Muzaffarpur to Dhalkebar.

The total income and PAT during the year 2024-25 are f 30.36 crore (previous year f 32.03 crore) and f 17.57 Crore (previous year f 16.13 crore) respectively.

E. Consolidated Financial Statements of SJVN Ltd.

The consolidated financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS-110)- Consolidated financial Statements Ind AS-28 -Investments in Associates and Joint Ventures, Ind AS112- Disclosure of Interests in other entities and are included in the Annual Report.

The financial statements of the Company and its subsidiaries have been consolidated on a line- by-line basis by aggregating similar items of assets, liabilities, income, and expenses, after eliminating intra-group balances, intra-group transactions, and any unrealised profits or losses. The joint venture company has been accounted for using the equity method of consolidation,in accordance with the applicable Ind AS.

A summary of the results on a consolidated basis is given below:

(3 in crore)

Particulars	F.Y. 2024-25	F.Y. 2023-24
Total Revenue	3376.50	2876.96
Profit before Tax	1111.69	1183.25
Profit after Tax	818.02	911.44
Other Comprehensive Income (net of tax)	(11.03)	(4.55)
Total Comprehensive Income	806.99	906.89

For and on behalf of Board of Directors

	Chairman & Managing Director
	DIN : 06940941
Date: 11.08.2025
Place: New Delhi	i