INDIAN ENERGY EXCHANGE

1 INDIAN ENERGY EXCHANGEANNUAL REPORT 2021 INDIAN ENERGY EXCHANGEINDEXC orporate Overview Leading India s ENERGY TransformationThe ENERGY ShiftMessage to ShareholdersThe Sustainability ImperativeTechnology-Led TransformationPioneering India s Gas MarketsSocial Connect Board of Directors About IEXIEX MilestonesLeadership TeamStatutory Report Management Discussion & Analysis Directors Report Corporate Governance Report Business Responsibility Report Financial Statements Standalone Financial Statements Consolidated Financial Statements 070812162024283234383941631201491612253 Corporate OverviewStatutory Report Financial Statements INDIAN ENERGY EXCHANGEF iscal year 2021 our journey of 13 years, FY 21 was characterized byCustomer Centric ActivitiesNew Products and MarketsSeamless OperationsDigital TransformationRobust Business Continuity to exemplary business Yearly Trading Volume74 BURevenue YoY with revenue at Rs.

2 CrElectricity Segment YoYProfit After Tax YoYwith PAT at Rs crIEX is transforming the ENERGY sector, underpinned by the value proposition of efficiency, competitiveness, flexibility, and customer choice. The efforts have resulted in exchanges now accounting for 6% of India s total electricity REPORT 2020-2021 IEX, with its transformative model, is creating tremendous value for its shareholders, year on (in lacs)+ 6, (in lacs)+ 5, Net Profit (in lacs)+ 3, EPS+ EBIDTA Margin+ FY1825, , , , , , , , , , , , Worth (in lacs)+ 14, , , , , OverviewStatutory Report Financial StatementsCorporateOverview6 ANNUAL REPORT 2020-2021 IEX is Leading India s ENERGY TransformationThe INDIAN ENERGY EXCHANGE is leading India s ENERGY transformation by architecting a markets-based ENERGY order, leveraging technology and innovation towards building a sustainable ENERGY sector which is anchored in efficiency, competitiveness, flexibility and customer this endeavor, IEX works pro-actively in partnership with the ENERGY ecosystem stakeholders to develop and deepen ENERGY markets while contributing towards accomplishing the national aspiration of building India as a sustainable ENERGY economy.

3 7 Corporate OverviewStatutory Report Financial StatementsThe ENERGY Shift 8 ANNUAL REPORT 2020-2021 Agreement, 2015. Some of the specific targets include reducing emission intensity by 33-35% by the year 2030 as compared to 2005 levels, achieving a 40% share of non-fossil fuel based electricity generation capacity, and 450 GW of installed renewable capacity by 2030. Honorable Prime Minister, Shri Narendra Modi s stated focus areas for India s ENERGY economy include use of cleaner fossil fuels, greater use of bio-fuels, rapid scaling up of renewables, electric mobility, and a shift towards emerging fuels including hydrogen. While solar power accounts for about 4% of India s electricity consumption today, it is set to see an exponential growth in the coming years.

4 As per the International ENERGY Agency India ENERGY Outlook 2021, if stated ENERGY policies are implemented in India, the market for solar PV, wind turbine and lithium-ion battery equipment will expand to over $40 billion per year by 2040. In such a scenario, by 2040, 1 in every 7 dollars spent worldwide on sustainable equipment will be in India, compared to 1 in 20, Consumers to Prosumers Given the accelerated pace of the ENERGY shift that has been underway, India is likely to see a heightened emphasis on building smart and robust grids at various levels and on other resources that offer flexibility to successfully balance the grid.

5 India s large transmission grid, coal-fired power fleet supported by renewables, hydro power and gas-fired capacity can meet the bulk of balancing and flexibility requirements in the near term. It is notable that the Government of India envisages 40 GW of decentralized solar ENERGY solutions by the year 2022. The adoption of decentralised off-grid solutions, and micro-grids supported by the enabling policy framework, is driving decentralized generation and leading to the creation of a new breed of consumers called prosumers who produce as well as consume ENERGY . The increasing number of prosumers also underline a greater need to accelerate battery storage and hydrogen based fuel cells in the mid to long run, for a round the clock and reliable ENERGY solution.

6 The prevalence of prosumers and increased adoption of decentralised ENERGY systems will likely lead to the creation of local ENERGY markets India has also seen an accelerated momentum in solar and wind ENERGY based projects at the grid as well as decentralised level. Governments and industry have been rallying behind the increased adoption of renewable ENERGY . They are also pro-actively exploring the feasibility of adoption of other new emerging renewable technologies like storage, hydrogen, geothermal etc., driving the ENERGY innovation. Renewable ENERGY has seen fast-paced growth in India. From a mere 4% share in electricity generation in the year 2008-09, it has reached a mighty 11% in 2020-21.

7 The installed renewable capacity at 94 GW represents of the total installed capacity of 382 GW. The fast and steady growth of renewable is a testament to India s persistent efforts to decarbonize its ENERGY economy. Further, the mobility space, which has been fulcrumed on the conventional fuels over last many decades, is now seeing a shift towards electric. Several innovative decentralized hybrid models for vehicle charging stations are now emerging. With policies such as FAME II, India is poised to witness the transformation of its automobile sector with electric mobility leading the way. To spur this shift, decentralization supported by new models such as virtual power plants as well as integration of mobility with grids will India as a Sustainable ENERGY EconomyIndia s ENERGY policy is guided, to a great extent, by Nationally Determined Contributions committed under the Paris Climate T he fast paced addition of renewable capacity across the world reinforces optimism about our ability to accelerate clean ENERGY transition and achieve goals under the Paris Climate Agreement, 2015.

8 According to the International Renewable ENERGY Agency, despite the COVID-19 pandemic, more than 260 GW of renewable ENERGY capacity was added globally in 2020, beating the previous record by almost 50%.9 Corporate OverviewStatutory Report Financial Statements INDIAN ENERGY EXCHANGE10 ANNUAL REPORT 2020-2021based on the decentralised blockchain technology, as already prevalent in the developing economies such as INDIAN Government is also set to boost decentralised renewables and the peer-to-peer (P2P) ENERGY trading initiative. The India Smart Grid Forum (ISGF) has launched a blockchain peer-to-peer trading pilot with Australian technology pioneer Power Ledger in the states of Uttar Pradesh and Choice With the Government of India s commitment to give consumers the power of choice as announced in the recent Union Budget 2021, the future holds more empowerment of consumers with responsible consumerism and choices.

9 This could be an effective way to adopt technology, and automation, smart meters, and grids to infuse greater competition and make the distribution utilities more customer centric. The Draft Electricity (Amendment) Bill 2021 also seeks to de-license the power distribution sector to reduce entry barriers for private players. This will help create much-needed competition in the segment, and ultimately provide choice to consumers by enabling them to choose their service Digital Dividend Interestingly, technology and ENERGY have a deep relationship. The increasing focus on decarbonization and decentralization requires India to increase its focus on automation and technology in the value chain across generation, transmission, distribution and consumption.

10 An outlay of about Rs 3 lakh crores over a period of five years was announced during the Union Budget 2021 with an objective to provide financial assistance to the distribution utilities for infrastructure creation. This includes pre-paid smart metering and feeder separation, and upgradation of systems which relate to improving the overall financial health and viability. This will also be effective in curbing the mounting aggregate technical and commercial losses and make the system more accountable and OverviewStatutory Report Financial Statements INDIAN ENERGY EXCHANGE We are working towards transforming India s ENERGY sector and building an efficient and sustainable ENERGY economy leveraging innovation and technology, with a focus on customer centricity.