To the Members of Power Grid Corporation of India Limited Report on the Standalone IndAS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of PowerGrid Corporation of India Limited ("the Company") which comprise theBalance Sheet as at 31st March 2017 and the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Cash Flows and the Statement ofChanges in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information (herein after referred to as "standaloneInd AS Financial Statements").
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the company as at 31st March 2017 itsfinancial performance including other comprehensive income its cash flows and the changesin equity for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the Standalone Ind ASFinancial Statements:
(a) Note No. 37 (b) (ii) in respect of recognition of revenue from transmission assetsfor which final tariff orders are yet to be issued by the CERC; and
(b) Note No. 47(a) in respect of Balance confirmation reconciliation and consequentialadjustments if any of Trade Receivable and Recoverable and Trade and Other Payables.
Our opinion is not modified in respect of these matters.
(a) The comparative financial information of the company for the transition dateopening balance sheet as at 1st April 2015 included in these standalone Ind ASfinancial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited bythe predecessor auditors whose report dated 30th May 2015 for the year ended31st March 2015 expressed a qualified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by thecompany on the transition to the Ind AS which have been audited by us.
(b) The comparative financial information of the company for the year ended 31stMarch 2016 included in these standalone Ind AS financial statements are based on thepreviously issued statutory financial statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 audited by us and our report expressed an unmodifiedopinion on those standalone financial statements as adjusted for the differences in theaccounting principles adopted by the company on the transition to the Ind AS which havebeen audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the Annexure '1' a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. In terms of sub section (5) of section 143 of the Companies Act 2013 we give inthe Annexure '2' a statement on the directions issued under the aforesaid sectionby the Comptroller and Auditor General of India.
3. As required by section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with the relevantrules issued thereunder;
(e) In view of exemption given vide notification no. G. S. R. 463(E) dated June 52015 issued by Ministry of Corporate Affairs provisions of Section 164(2) of the Actregarding disqualification of Directors are not applicable to the Company;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure '3'.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 49 and 63 to thestandalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. The company has provided requisite disclosures in the standalone Ind AS financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 on the basis ofinformation available with the company. Based on audit procedures and relying onmanagement's representations we report that disclosures are in accordance with books ofaccounts maintained by the company and as produced to us by the management. Refer Note 16.
|For S. K. Mittal & Co. ||For Parakh & Co. ||For Kothari & Co. ||For R. G. N. Price & Co. |
|Chartered Accountants ||Chartered Accountants ||Chartered Accountants ||Chartered Accountants |
|FRN : 001135N ||FRN : 001475C ||FRN : 301178E ||FRN : 002785S |
|(CA S. K. Mittal) ||(CA Indra Pal Singh) ||(CA Manaswy Kothari) ||(CA R. Rangarajan) |
|Partner ||Partner ||Partner ||Partner |
|M. No. 008506 ||M. No. 410433 ||M. No. 064601 ||M. No. 041883 |
|Place : New Delhi || || || |
|Date : 29th May 2017 || || || |