CESC Limited — Interim / Quarterly Report 2023

Nov 14, 2022

DOC:SEC: 446/2022-23/172

National Stock Exchange of India Limited Exchange Plaza, 5 th Floor, Plot No. C/1, G- Block, Bandra - Kurla Complex, Bandra (East), Mumbai-400 051 SCRIP CODE: CESC

November 14, 2022

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001 SCRIP CODE: 500084

Dear Sir/Madam,

Sub: Outcome of Board Meeting held on November 14, 2022

We write to inform you that pursuant to Regulation 30, 33 and any other applicable regulations of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Board of Directors of the Company, at its meeting held today i.e. November 14, 2022, inter alia, has considered, approved and took on record the Unaudited Financial Results (Standalone and Consolidated) of the Company, for the second quarter and half year ended on September 30, 2022 of the Financial Year 2022-23.

A copy of the said results along with the Limited Review Report issued by the Statutory Auditors of the Company are enclosed herewith for your record.

The Meeting of the Board of Directors of the Company commenced at 03 :45 p.m. (1ST) and concluded at 04:45p.m. (1ST).

Kindly acknowledge receipt of the same.

Yours faithfully, For CESC Limited

a Secretary & Compliance Officer

Encl:a/a

S.R. BArL1so1 & Co. LLP

Chartered Accountants

22, Camac Street 3rd Floor, Block 'B' Kolkata - 700 016, India Tel : +91 33 6134 4000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors CESC Limited

• I. We have reviewed the accompanying statement of unaudited standalone financial results of CESC Limited (the "Company") for the quarter ended September 30, 2022 and year to date from April 1, 2022 to September 30, 2022 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• 1. The Company's Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) ''Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 and 52 of the Listing Regulations. The Statement has been approved by the Company's Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. Th is standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (' Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm registration number: 30 I 003E/E300005

**~ n~ grawal** Partner Membership No.: 056102 UDIN: 22056102BCZMCQ6884

Place: Kolkata Date: November 14, 2022

	.
	CIN :L31901W81978PLC031411Regis,t~red Office: CESC House,Chowringhee Square, Kolkata 700 001
	Email ID: secretarial@rpsg.in; Website: www.cesc.co.in
	Tel: (033) 6499 0049: Fax: (033) 22124262
	. "
						(Rs.in crore)
	Three months	Three months	Three months	Six months	Six months	Year
	ended	ended	ended	ended	ended	ended
Particulars	30.09.2022	30.06.2022	30.09.2021	30.09.2022	30.09.2021	31 .03 .2022
	(Unaudited)(1)	(Unaudited)(2)	(Unaudited)(3)	(Unaudited)(4)	(Unaudited)(5)	(Audited)(6)
Income from operations
Revenue from operations	2263	2347	2091	4610	4022	7294
Other income	48	20	32	68	46	185
Total income	-- -2311-	2367	2123	4678-	-·-4068	7479
Expenses
Cost of electrical energy purchased	929	1008	815	1937	1574	2901
Cost of fuel	488	487	376	975	721	1378
Purchase of Stock-in-trade	3	4	3	7	7	15
Employee benefits expense	276	231	233	507	478	886
Finance costs	148	134	124	282	251	504
Depreciation and amortisation expense	119	120	116	239	234	471
Other expenses	247	223--	245	470	512	996
T~'!X_!l_!;S	-2210 -	2207-- --	1912	4417	-3777	7151
Pot be~re_i::g_ulatory income and tax	·- - ·-101	160	211	261	291	328
Regulatory Income (net)	210	13	95	223	190	716
Profit before tax	--311	-173	306	484 -	- 481-	1044
Tax Expenses :-
Current Tax	75	42	77	117	120	253
Deferred Tax/ (credit)	(7)	(7)	(6)	(14)	(12)	(25)
Total ta'ic expen-se	68	35	71	103	108	228
Profit for the period	--243	1]8-	235-	381	373	816
Other comprehensive IncomeItems that will not be reclassified to profit or loss
Remeasurement of defined benefit plan (net of tax)	(2)	(4)	(4)	(6)	(12)	(15)
Gain on fair Valuation of investment						0
Deferred Tax on above						(0)
0th!!: Cof!Prehensive lncomel(Expenset for the period	!21	(4)	(4)	(6)-	(12)-- 361	(15)
T~_!al Comprehensive Income for the period	241	134	231	375 --		801
Paid-up Equity Share Capital( Face value of Re 1/- each) (Refer note 6)	133	133	133	133	133	133
Other Equity						9822
Earnings Per Share (EPS) ( Rs.) - refer note 5(ii) & 6
Basic & Diluted (not annualised)	1.83	1.04	1.78	2.87	2.81	6.16

Additional information as per Regulation 52(4) and 54(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Company has issued (a) rated, listed, secured, redeemable, taxable, non-convertible, non-cumulative debentures of face value of INR 10,00,000 each, aggregating to INR 300 crore, subscribed by ICICI Bank Limited and (b) rated, listed, secured, redeemable, non-convertible debentures of face value of INR 10,00,000 each, aggregating to INR 200 crore, subscribed by Citibank N.A. (cumulatively referred to as the "Debentures') which have remained outstanding as on 30th September, 2022 and accordingly the following disclosures are being made as per Regulation 52(4) and 54(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

		Three months	Three months	Three months	Six months	Six months	Year
		ended	ended	ended	ended	ended	ended
		30.09.2022	30.06.2022	30.09.2021	30.09.2022	30.09.2021	31.03.2022
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
		(1)	(2)	(3)	(4)	(5)	(6)
	a Debt Equity Ratio	0.78	0.81	0.71	0.78	0.71	0.84
	b (i) Debt Service Coverage Ratio (net of proceeds utilised for Refinancing)	1.23	0.42	11 .04	0.67	1.15	1.41
	(ii) Debt Service Coverage Ratio (net of Prepayments & proceeds utilised forRefinancing)	3.27	0.96	3.61	1.72	3.22	1.64
	C Interest Service Coverage Ratio	3.40	2.87	3.78	3.15	3.37	3.50
	d Net worth ( Rs. crore)	10222	10034	10225	10222	10225	9955
	e Net profit after tax ( Rs. crore)	243	138	235	381	373	816
f	Earnings per share (Basic and Diluted) not annualised	1.83	1.04	1.78	2.87	2.81	6.16
	g Current Ratio	0.75	0.64	0.68	0.75	. .0.68	0.58
	h Long term Debt to Working Capital
i	Bad Debt to Accounts Receivable ratio (not annualised)	0.00	0.00	0.01	0.00	0.01	0.02
j	Current Liabilty Ratio	0.27	0.28	0.30	0.27	0.30	0.29
	k Total Debts to Total Assets	0.28	0.28	0.26	0.28	0.26	0.29
	I Debtors Turnover (not annualised)	1.55	1.90	1.52	3.67	2.91	6.00
	m Inventory Turnover (not annualised)	3.36	2.76	2.55	5.13	4.39	6.65
	n Operating Profit Margin(%)	18.16%	12.23%	19.03%	15.14%	17.06%	18.69%
0	Net Profit Margin(%)	10.51%	5.83%	11 .08%	8.14%	9.17%	10.91%
	p Asset Cover
	in respect of borrowings with first pari passu charge on immovable and movable fixedassets	NA	NA	NA	1.95	2.35	2.00
	in respect of borrowings with first pari passu charge on movable fixed assets	NA	NA	NA	1.44	1.72	1.48

•• net working capital is negative

q The debentures subscribed by ICICI Bank Limited amounting to Rs 300 crore are secured by way of pari passu first charge on movable and immovable fixed assets of the Company and debentures subscribed by Citibank N.A. amounting to Rs 200 crore are secured by way of pari passu first charge on movable fixed assets of the Company.

r The asset cover, as on 30th September, 2022 meets the requirement of the respective Trust Deeds. In respect to the debentures subscribed by ICICI Bank Limited and Citibank N.A., security has been created as per the terms of the Information Memorandum to the Issue/ Debenture Trust Deed.

s There is no deviation or variation in the use of proceeds of issue of the Debentures from the objects stated in the Information Memorandum.

t The Company does not have any Outstanding reedemable preference shares as on 30th September, 2022.

u There is no requirement of creation of capital redemption reserve/ debenture redemption reserve as per the Companies Act, 2013

ISIN	Amount(Rs. crore)
INE486Al4EW2	300

Debt Equity Ratio= Non Current Borrowings (including current maturities of long-term debt) + Current Borrowings / Total Equity

Debt Service Coverage Ratio [for b (i) above]= profit after tax+ depreciation+ deferred tax provisions+ finance costs/ finance costs+ lease rent charge included under depreciation + debt repayments (net of proceeds utilised for Refinancing)

Debt Service Coverage Ratio [for b (ii) above] = profit after tax + depreciation + deferred tax provisions+ finance costs/ finance costs + lease rent charge included under depreciation + debt repayments (net of prepayments & net of proceeds utilised for Refinancing)

Interest Service Coverage Ratio= profit after tax + depreciation + deferred tax provisions+ finance costs / finance costs

Net worth means the aggregate of Equity Share Capital and Other Equity; Other Equity includes Retained Earnings, Fund for Unforeseen exigencies, Capital Reserve and Equity Instruments through Other comprehensive Income

Current Ratio= Total Current Assets/ Total Current Liabilities

Long term Debt to Working Capital = Non-current borrowings including current maturities of long-term debt/ (Current Assets - Current Liabilites excluding current maturities of

lonii-term debt) Bad Debt to Accounts Receivable ratio= Bad Debt ( incl Provision for Bad Debts)/ Average Trade Receivables

Current Liabilty Ratio= Total Current Liabilities/ Total Liabilities

Total Debts to Total Assets= Non Current Borrowings + Current Borrowings / Total Assets

Debtors Turnover= Revenue from Operations I Average Trade Receivables

Inventory Turnover= Cost of Fuel/ Average Fuel Inventory

Operating Profit Margin(¾)= (Profit Before Tax+ Finance Cost- Other Income) I Revenue from Operations

Net Profit Margin(¾) = Net Profit/ Total Income

Asset Cover shall mean the ratio between

(i) In respect to debentures subscribed by ICICI Bank Limited

The aggregate of (a) Property, Plant and Equipment (b) Capital work-in-progress and (a) Non-Current Borrowings (including current maturities of long-term debt) ,{b) Interest Accrued

(ii) In respect to debentures subscribed by Citibank N.A.

The aggregate of (a) Property, Plant and Equipment (excluding Land, Buildings and Structures and Railway Sidings) and (a) Non-Current Borrowings (including current maturities of long-term debt) (b) Interest Accrued

	Asal	As at
Particulars	30.09.2022	31 .03.2022
	(Unaudited)	(Audited)
	Rs. in crore	Rs. in crore
ASSETS
Non-current Assets
Property, Plant and Equipment	13901	14090
Capital work-in-progress	8763	43
Investment PropertyIntangible Assets	97	63101
Financial Assets
(i) Investments	5015	5002
(ii) Loans	4	4
(iii) Others	246	221
Other non-current assets	256	257
Total	19669	19781
Current Assets
Inventories	391	434
Financial Assets
(i) Investments		14
(ii) Trade receivables	1474	1035
(iii) Cash and cash equivalents	1094	860
(iv) Bank balances other than (iii) above	425	415
(v) Loans	14	14
(vi) Others	91	110
Other current assets	269	296
Total	3758	3178
Regulatory deferral account balances	5282	5046
TOTAL ASSETS	28709	28005
EQUITY AND LIABILITIES
Equity
(i) Equity Share capital	133	133
(ii) Other Equity	10089	9822
Total	10222	9955
LIABILITIES
Non-current Liabilities
Financial Liabilities
(i) Borrowings(i.a) Lease Liabilities	6057105	5669112
(ii) Trade Payables
(a) Total outstanding dues to Micro Enterprises & Small Enterprises
(b) Total outstanding dues of Creditors other than Micro Enterprises & Small Enterprises	52	50
(iii) Consumers' Security Deposits	1637	1564
(iv) Others	2	3
Provisions	473	476
Deferred tax liabilities (net)	3346	3360
Other non-current liabilities	255	279
Total	11927	11513
Current Liabilities
Financial Liabilities
(i) Borrowings	1913	2683
(i.a) Lease Liabilities	27	27
(ii) Trade Payables
(a) Total outstanding dues to Micro Enterprises & Small Enterprises	8	4
(b) Total outstanding dues of Creditors other than Micro Enterprises & Small Enterprises	1027	551
(iii) Others	1054	1134
Other current liabilities	797	461
Provisions	75	57
Current tax liabilities (net)	88	62
Total	4989	4979
Regulatory deferral account balances	1571	1558
TOTAL EQUITY AND LIABILITIES	28709	28005

2 Statement of Cash Flows ·
Particulars	Six months ended30.09.2022	Six months ended30.09.2021
	(Unaudited)	(Unaudited)
	Rs. in crore	Rs. in crore
A. Cash flow from Operating Activities
Profit before tax	484	481
Adjustments to reconcile profit before tax to net operating cashflows	476	471
Operating profit before Working Capital changes	960	952
Working Capital changes	373	210
Net change in regulatory deferral account balances	(223)	(190)
Net cashflow from Operating Activities	1110	972
B. Cash flow from Investing Activities	(193)	(280)
C. Cash flow from Financing Activities	(683)	(238)
Net increase I (decrease) in cash and cash equivalents (A+B+C)	234	454
Cash and Cash equivalents - Opening Balance	860	552
Cash and Cash equivalents - Closing Balance	1094	1006

• 3 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, purchase of power and those having bearing on revenue account, deferred taxation estimate and certain other fixed costs, as appropriate, based on the Company's understanding of the applicable regulatory provisions and available orders of the competent authorities have been included in Regulatory income/ (expense) (net), which may 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 operations from April, 2015. The Annual Performance Review (APR) orders for the years ended 31st March 2015 to 31st March 2018 has been issued during the year by WBERC, impact whereof has been considered in these financial results, including estimated impact for subsequent periods till date under Regulatory income/(expense) for the quarter/half year ended 30th September 2022. These estimates have been recognised with discounting methodology, assuming recovery over a period of time, in consonance with the applicable regulations and application of prudence.
• 4 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 11. 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 is considered by the West Bengal Electricity Regulatory Commission (WBERC) 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 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 quarter ended 30 September 2022, quarter ended 30 June 2022, quarter ended 30 September 2021 , six months ended 30 September 2022, six months ended 30 September 2021 and year ended 31 March 2022 amounts to Rs. 54 crore, Rs 54 crore, Rs 56 crore, Rs 108 crore, Rs 113 crore and Rs 227 crore respectively.
• (i) Other expenses include interest on security deposit of Rs. 26 crore , Rs. 27 crore, Rs. 24 crore , Rs. 53 crore, Rs. 53 crore and Rs. 106 crore for the respective periods.
• (ii) EPS without Regulatory income / (expense) (net) works out to Rs 0.82, Rs 0.99, Rs 1.33, Rs 1.82, Rs 1.92 and Rs 2. 71 for the respective periods. Pursuant to the Special Resolution passed by the Shareholders and receipt of necessary statutory approvals, the Company had sub divided its Equity Share of face value of Rs 10/- (Rupees Ten) each into 10(ten) Equity Shares of face value of Re 1/- (Rupee One) each fully paid-up, effective from 21st September 2021 . This has been considered for calculating weighted average number of
• The Company is primarily engaged in generation and distribution of electricity and does not operate in any other reportable segment.

equity shares for all comparative periods presented as per Ind AS 33 - 'Earning Per Share'.

Dated : 14th November, 2022

• With regard to the Company's power purchase from one of its subsidiaries (provider), West Bengal Electricity Regulatory Commission (WBERC) has issued the tariff order (considering applicable APR orders for Transmission Projects) for the years 2018-19 to 2022-23 , wherein certain underlying matters have been dealt with in deviation from past practices of tariff determination and kept for disposal through future truing up exercise, impact of which is not ascertained. The said provider not being in agreement with the same, has since filed appeal in respect of the above Tariff Orders before the Hon'ble Appellate Tribunal for Electricity on the grounds interalia, that the orders have been passed after substantial period of delay, the applicable periods are long over and directions passed are impossible to comply because of significant delay in passing the said orders. However, for the year 2022-23, since the year has not elapsed, the said provider of power has given effect to the Tariff Order for the financial year 2022-23 with application of principles in terms of applicable Regulations. Based on legal opinion obtained, the provider is confident of the matter being adjudicated in its favour in respect of earlier years. Accordingly, necessary adjustment, if any, will be made on the matter reaching finality.
• The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 14th November, 2022. The Statutory Auditors of the Company have carried out a limited review of the said results in terms of Regulations 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 1 O Figures for the previous periods have been regrouped / reclassified wherever necessary to conform to current period's classification.

-)~· ~ *

Managing Director -Generation

rjee Managing Director - Distribution

By Order of the Board

S.R. BArL1Bo1 & Co. LLP

Chartered Accountants

22, Camac Street 3rd Floor, Block 'B' Kolkata - 700 016, India Tel : +91 33 6134 4000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors CESC Limited

• I. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results or CESC Limited (the "'Holding Company"') and its subsidiaries (the I lolding Company and its subsidiaries together referred to as ·'the Group"), and its joint venture for the quarter ended September 30. 2022 and) ear to date from April I. 2022 to September 30, 2022 (the ··Statement") attached herewith. being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015. as amended (the "'Listing Regulations··).
• 1. The I lolding Company's Management is responsible for the preparation or the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34. (Ind AS 34) ··tnterim Financial Reporting" prescribed under Section 133 of the Companies Act. 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 or the Listing Regulations. The Statement has been approved by the I lolding Company·s Board or Directors. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review or the Statement in accordance with the Standard on Re, icw Engagl~merlts (SRE) 24 10. "Review or Interim Financial Information Performed by the Independent Auditor or the Entity" issued by the Institute or Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free or material misstatement. A review or interim financial information consists or making inquiries. primarily or persons responsible for financial and accounting matters. and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently docs not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly. we do not express an audit opinion.

We also performed procedures in accordance ,vith the Circular No. CIR/CFD/CMD 1/44/2019 dated March 29. 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations. to the extent applicable.

SI. No.	Name of the Company	Relationship
1	CESC Limited	Holding Company
2	I laldia Energy Limited	Subsidiary
3	Dhariwal Infrastructure Limited	Subsidiary
4	Crescent Power Limited	Subsidiary
5	Kota Electricity Distribution Limited	Subsidiary
6	Bikancr Electricity Supply Limited	Subsidiary
7	Bharatpur Electricity Services Limited	Subsidiary
8	Malegaon Power Supply Limited	Subsidiary
9	Bantal Singapore Pte. Ltd.	Subsidiary
10	CESC Projects Limited	Subsidiary
11	Pachi Hydropower Projects Limited	Subsidiary
12	Papu Hydropower Projects Limited	Subsidiary
13	Jarong Hydro-Electric Power Company Limited	Subsidiary
14	Ranchi Power Distribution Company Limited	Subsidiary
15	Au Bon Pain Cafe India Limited	Subsidiary
16	Jharkhand Electric Company Limited	Subsidiary
17	CESC Green Power Limited	Subsidiary
18	Eminent Electricity Distribution Limited	Subsidiary
19	Noida Power Company Limited	Subsidiary
20	Mahuagarhi Coal Company Private Limited	.Joint Venture

1. The Statement includes the results or the fol lowing entities:

S.R. BArL1Bo1 & Co. LLP

Chartered Accountants

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 6 below. nothing has come to our attention that causes us to believe that the accompanying Statement. prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS") specified under Section 133 of the Companies Act. 2013. as amended. read with relevant rules issued thereunder and other accounting principles generally accepted in India. has not disclosed the information required to be disclosed in terms or the Listing Regulations. including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The accompanying Statement includes the unaudited interim financial results and other financial information, in respect of:
  • 18 subsidiaries, whose unaudited interim financial results include total assets or Rs. 16,966.07 crores as at September 30. 2022. total revenues or Rs. 2.264. 70 crores and Rs. 4,643.25 crorcs. total net profit after tax of Rs. I 03.19 crores and Rs. 262.43 crores. total comprehensive income or Rs. I 06.07 crores and Rs. 257. 75 crores. for the quarter ended September 30. 2022 and the period ended on that date respectively, and net cash outnows of Rs. 305.26 crores for the period from April I. 2022 to September 30. 2022. as considered in the Statement which have been reviewed by their respective independent auditors.
  • I joint venture, whose unaudited interim financial results include Group ·s share or net loss of Rs. 0.00 crores and Rs. 0.00 crores and Group·s share or total comprehensive income or Rs. 0.00 crores and Rs. 0.00 crores for the quarter ended September 30. 2022 and for the period lt·om April I, 2022 to September 30, 2022 respectively. as considered in the Statement whose interim financial results. other financial information have been reviewed by their independent auditor.

The independent auditor"s reports on interim financial information/ financial results or these entities have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures in respect or these subsidiaries and joint venture is based solely on the report of such auditors and procedures performed by us as stated in paragraph 3 above.

Our conclusion on the Statement in respect or matters stated above is not modified with respect to our reliance on the work done and the reports or the other auditors.

For S.R. Batliboi & Co. LLP Chartered Accountants ICJ\I Firm registration number: 30 I 003E/E300005

ti

'r Navin Agrawal Partner Membership No.: 056102

UDIN: 22056102BCZMEE1326

Place: Kolkata Date: November 14. 2022

	~~ ~~
	CIN :L31901WB1978PLC031411Registered Office: CESC House,Chowringhee Square, Kolkata 700 001
	Email ID: secretarial@rpsg.in; Website: www.cesc.co.in
	Tel: (033) 6499 0049: Fax: (033) 22124262			., .	, .
	. ti			11!.lt-t	I
	Three months	Three months	Three months	Six months	Six months	(Rs.in crore)Year
	ended	ended	ended	ended	ended	ended
Particulars	30.09.2022	30.06.2022	30.09.2021	30.09.2022	30.09.2021	31.03.2022
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	(1)	(2)	(3)	(4)	(5)	(6)
Income from operations
Revenue from operations	3913	4102	3494	8015	6707	12544
Other income	64	44	40-	108	69	276
Total income--	3977-	- 4146	3534	8123	6776	12820
Expenses
Cost of electrical energy purchased	1556	1720	1021	3276	1892	3535
Cost of fuel	1104	1081	855	2185	1701	3260
Purchase of Stock-in-trade	3	4	3	7	7	15
Employee benefits expense	333	280	287	613	573	1081
Finance costs	274	265	278	539	558	1129
Depreciation and amortisation expense	221	217	222	438	441	885
Other expenses	427- - -	367	414- .	794	858	1736
---- --·Total expenses	3918	- 3934---	-3080	-7852--	-·-6030	11641-
Profit before regulatory income and tax	59	212	454	271	746	1179
Regulatory Income (net)	357	147	26	504	127	737
Profit before tax	416	359	480. -	775	873	1916
-- -- - -Tax Expenses :-		-
Current Tax	100	63	111	163	194	382
Deferred Tax /(credit)	(3)	(1)	29	(4)	59	129
Tl;!ll_tax expene	97--	62	140_	159	253--	511--
Profit !or the p~riod	319	297	340	616	620	1405
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans (net of tax)	(3)	(4)	(6)	(7)	(13)	(16)
Gainl(loss) on fair valuation of investmentDeferred Tax on above	3	(7)	4	(4)	14	5(0)
ther Co_!llp hens!Ye l~-cmel_(Exn-!) for the _peiod	0	(11)	(2)	(11)	1	(11)
Total ~omprehensive Income for the period	319	286	338	605	621	1394
Profit attributable to
OVv11ers of the equityNon:co~~rt?_lling interest	30514	28611	3355	59125	60614	135946
	319	297	340	616	620	1405
Other Comprehensive Income attributable to
OVv11ers of the equityNon-controlling interest	0(0)	(11)0	(2)0	(11)(0)	10	(11)0
	0	(11)	(2)	(11)	1	(11)-
Total Comprehensive Income attributable toO'lvTlers of the equity	305	275	333	580	607	1348
Non-controlling interest	14	11	5	25	14	46
	319	286	3~8	605- -	621	1394
Paid-up Equity Share Capital( Face value of Re 11- each ) (Refer note 10)	133	133	133	133	133	133
Other EquityEarnings Per Share (EPS) ( Rs.) - refer note 5(ii) & 10						10264
Basic & Diluted (not annualised)	2.30	2.16	2.53	4.46	4.57	10.25

	As at	Asal
Particulars	30.09.2022	31 .03.2022
	(Unaudited)	(Audited)
	Rs. in crore	Rs. in crore
ASSETS
Non-current Assets
Property, Plant and Equipment	22714	23019
Capital work-in-progress	221	103
Investment Property	63	63
Intangible Assets	125	134
Financial Assets
(i) Investments	81	114
(ii) Loans	6	6
(iii) Others	235	218
Other non-current assets	288	294
Total	23733	23951
Current Assets
Inventories	597	659
Financial Assets
(i) Investments	14	345
(ii) Trade receivables	2750	2095
(iii) Cash and cash equivalents	2082	2153
(iv) Bank balances other than (iii) above	1187	1097
(v) Loans	16	16
(vi) Others	253	238
Current Tax Assets (Net)	16	16
Other current assets	557	533
Total	7472	7152
Regulatory deferral account balances	6835	6390
TOT AL ASSETS	38040	37493
EQUITY AND LIABILITIESEquity(i) Equity Share capital	133	133
(ii) Other Equity	10737	10264
(iii) Non-controlling interestTotal	44911319	43410831
LIABILITIES
Non-current Liabilities
Financial Liabilities
(i) Borrowings	10655	10577
(i.a) Lease Liabilities	179	189
(ii) Trade Payables
(a) Total outstanding dues to Micro Enterprises & Small Enterprises
(b) Total outstanding dues of Creditors other than Micro Enterprises & Small	65	64
Enterprises
(iii) Consumers' Security Deposits	1960	1861
(iv) Others	69	67
Provisions	497	498
Deferred tax liabilities (net)	4284	4287
		286
Other non-current liabilities	263
Total	17972
Current Liabilities
Financial Liabilities
(i) Borrowings
	3437
(i.a) Lease Liabilities	34	33
(ii) Trade Payables
(a) Total outstanding dues to Micro Enterprises & Small Enterprises	35	45
(b) Total outstanding dues of Creditors other than Micro Enterprises & SmallEnterprises	1386
(iii) Others	797
Other current liabilities	919
Provisions	80	62
Current tax liabilities (net)	92	62
Total	6780	1782941629968555846799

2. Statement of Consolidated Cash Flows :
Particulars	Six monthsended30.09.2022	Six monthsended30.09.2021
	(Unaudited)	(Unauditedl
A. Cash flow from Operating ActivitiesProfit before tax	Rs. in crore775	Rs. in crore873
Adjustments to reconcile profit before tax to net operating cash flows	902	1001
Operating profit before Working Capital changes	1677	1874
Working Capital changes	6	118
Net change in regulatory deferral account balances	(504)	(127)
Net cashflow from Operating Activities	1179	1865
B. Cash flow from Investing Activities	(29)	(310)
C. Cash flow from Financing Activities	(1221)	(413)
Net increase/ (decrease) in cash and cash equivalents (A+B+C)	(71)	1142
Cash and Cash equivalents - Opening Balance	2153	840
Cash and Cash equivalents - Closing Balance	2082	1982

3 In the above consolidated financial results of the Group, revenue from operations in respect of the Parent and subsidiaries engaged in the business of electricity has been arrived at based on the relevant orders of appropriate regulatory commission to the extent applicable. The effect of adjustments relating to advance against depreciation, cost of fuel, purchase of power and those having bearing on revenue account, deferred taxation estimate and certain other fixed costs as appropriate, based on the Group's understanding of the applicable regulatory provisions and available orders of the competent authorities have been included in Regulatory income/ (expense) (net), 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 operations from April, 2015. The Annual Performance Review (APR) orders for the years ended 31st March 2015 to 31st March 2018 has been issued during the year by WBERC, impact whereof has been considered in these financial results, including estimated impact for subsequent periods till date under Regulatory income/(expense) for the quarter/half year ended 30th September 2022. These estimates have been recognised with discounting methodology, assuming recovery over a period of time, in consonance with the applicable regulations and application of prudence.

• 4 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 is considered by the West Bengal Electricity Regulatory Commission (WBERC) in determining the Parent'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 accounting opinions obtained, the Parent 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 quarter ended 30 September 2022, quarter ended 30 June 2022, quarter ended 30 September 2021 , six months ended 30 September 2022, six months ended 30 September 2021 and year ended 31 March 2022 amounts to Rs. 54 crore , Rs 54 crore, Rs 56 crore, Rs 108 crore, Rs 113 crore and Rs 227 crore respectively.
• (i) Other expenses include interest on security deposit of Rs. 33 crore, Rs. 27 crore, Rs. 27 crore, Rs. 60 crore, Rs. 59 crore and Rs. 118 crore for the respective periods.
• (ii) EPS without Regulatory income I (expense) (net) works out to Rs 0.02, Rs 1.32, Rs 2.41, Rs 1.34, Rs 3.90 and Rs 6.27 for the respective periods.
• The Group is primarily engaged in generation and distribution of electricity and does not operate in any other reportable segment.
• With regard to the Parent's power purchase from one of its subsidiaries (provider), West Bengal Electricity Regulatory Commission (WBERC) has issued the tariff order (considering applicable APR orders for Transmission Projects) for the years 2018-19 to 2022-23, wherein certain underlying matters have been dealt with in deviation from past practices of tari determination and kept for disposal through future truing up exercise, impact of which is not ascertained. The said provider not being in agreement with the same, has since filed appeal in respect of the above Tariff Order before the Hon'ble Appellate Tribunal for Electricity on the grounds interalia, that the orders have been passed after substantial period of delay, the applicable periods are long over and directions passed are impossible to comply because of significant delay in passing the said orders. However, for the year 2022-23, since the year has not elapsed, the said provider of power has given effect lo the Tariff Order for the financial year 2022-23 with application of principles in terms of applicable Regulations. Based on legal opinion obtained, the provider is confident of the matter being adjudicated in its favour in respect of earlier years. Accordingly, necessary adjustment, if any, will be made on the matter reaching finality.
• In respect of one of the subsidiary company, Uttar Pradesh Electricity Regulatory Commission (UPERC) vide tariff order dated 20 July 2022 has approved the ARR for financial year 2022-23 along with truing-up order for FY 2020-21 . Since, UPERC has deviated on already settled principles, practices/ methodologies as per UPERC MYT Regulations, 2014 followed in previous orders/ true-up orders issued till 3 September 2019, the said subsidiary has filled an appeal before Appellate Tribunal for Electricity (APTEL) against the above orders. Based on the evaluation supported by legal opinion, the said subsidiary is of view that it is more likely than not, the matters will be decided in its favour. Accordingly, necessary adjustments, if any, will be made on the matter reaching finality.
• Eminent Electricity Distribution Limited, a wholly owned subsidiary of the parent company, was declared the highest Bidder for acquiring 100% stake in the power distribution company for the Union Territory of Chandigarh. The Letter of Intent and advices for completion of the necessary formalities in respect of the said acquisition are awaited.
• 10 Pursuant to the Special Resolution passed by the Shareholders and receipt of necessary statutory approvals, the Company had sub divided its Equity Share of face value of Rs 10/- (Rupees Ten) each into 10(ten) Equity Shares of face value of Re 1/- (Rupee One) each fully paid-up, effective from 21st September 2021 . This has been considered for calculating weighted average number of equity shares for all comparative periods presented as per Ind AS 33 - 'Earning Per Share'.
• 11 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 14th November, 2022. The Statutory Auditors have carried out a limited review of the said results in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 12 Figures for the previous periods have been regrouped I reclassified wherever necessary to conform to current period's classification.

By Order of the Board

70

_ _pebasish Banerjee

Managing Director - Distribution

Dated : 14th November, 2022