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Power Grid Corporation of India Ltd.

BSE: 532898 Sector: Infrastructure
NSE: POWERGRID ISIN Code: INE752E01010
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VOLUME 65147
52-Week high 248.25
52-Week low 186.35
P/E 10.57
Mkt Cap.(Rs cr) 154,297
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 223.35
CLOSE 223.45
VOLUME 65147
52-Week high 248.25
52-Week low 186.35
P/E 10.57
Mkt Cap.(Rs cr) 154,297
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Power Grid Corporation of India Ltd. (POWERGRID) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

POWER GRID CORPORATION OF INDIA LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Power GridCorporation of India Limited ("the Company") which comprise the Balance Sheetas at 31 March 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and notes to the financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2022 the profit & totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to the following matter in the notes to the Standalone financialstatements:

- In respect of provisional recognition of revenue from transmission assets for whichfinal tariff orders are yet to be issued by the CERC [Refer Note No. 35(b)(ii)]

Our opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements for the year ended 31March 2022. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No. Key Audit Matters How the matter was addressed in our audit
1. Recognition of Revenue from Transmission Income Our audit approach involved:
Transmission Income is accounted for based on tariff orders notified by the CERC. In case of transmission projects where final tariff orders are yet to be notified transmission income is accounted for on provisional basis as per Tariff Regulations and Orders of the CERC in earlier cases. Difference if any is accounted for on issuance of final Tariff Orders by the CERC. As at each reporting date transmission income also includes an accrual for services rendered to the customers but not yet billed i.e. Unbilled Revenue. Obtaining an understanding of the CERC Tariff Regulations Orders Circulars Guidelines and the Company's internal circulars and procedures in respect of recognition and measurement of revenue from transmission of power.
This is considered as Key Audit Matter due to the nature and extent of estimates made as per CERC Tariff Regulations and contracts with customers for recognition of revenue. • Evaluated and tested the effectiveness of the design of Internal controls relating to recognition and measurement of revenue from Transmission.
(Refer Note No. 35(b)(ii) Standalone Financial Statement) • Verified the transmission revenue based on the CERC Tariff Regulation Orders Circulars Guidelines and the company's internal circulars.
• Verified on test basis the income recognised on provisional basis as per the regulatory guidelines and orders of the CERC in recent cases where tariff orders were issued for the assets whose final orders are yet to be notified by CERC based on the date of commercial operation (DOCO) letters issued by Regional technical heads and capital cost as certified by the Management.
Based on the above procedure performed the recognition and measurement of revenue from transmission of power is considered to be adequate and reasonable.
2. Deferred Tax Assets relating to MAT credit entitlement Our audit approach involved:
• Reviewing the current status of availability of MAT credits.
The Company has considered MAT credit in anticipation of set off against the tax payable in future years and created Deferred Tax Asset for the same during the year. Corresponding to the said MAT Credit Entitlement a Deferred Regulatory liability payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations has been recognized. • Assessing the related forecasts of future taxable profits evaluated the reasonableness and consistency of the considerations/assumptions underlying the preparation of these forecasts.
We identified this as a key audit matter because of the importance of this matter to the intended users of the financial statements and its materiality and requirement of judgement in assessing future taxable profits for recognisition of MAT credit entitlement. Based on the above procedures performed the recognition and measurement of Deferred tax asset relating to MAT credit entitlement and corresponding Regulatory Deferral Liability towards customers is considered adequate and reasonable.
(Refer Note No.26 of Standalone financial statements.)
3. Assessment of Contingent liabilities in respect of certain litigations including land compensation direct and indirect taxes. various claims filed by other parties not acknowledged as debt. We have obtained an understanding of the Company's procedure in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedure:
There is a high level of judgement required in estimating the contingent liabilities. The company's assessment of contingent liabilities is supported by the facts of the matter Company's judgement thereon past experience and advices from legal and independent tax consultants wherever necessary. • Reviewing the current status and material developments of legal matters.
We identified the above area as Key Audit Matters in view of associated uncertainty relating to the outcome of these matters. • Examining recent orders from competent authorities and/ or communication received from various authorities judicial forums and follow-up action thereon.
(Refer Note No. 58 of Standalone financial statements) • Review and analysis of evaluation of the contentions of the company through discussions collection of details of the subject matter under consideration the likely outcome and consequent potential outflows on those issues.
Based on the above procedures performed the estimation and disclosures of contingent liabilities is considered to be adequate and reasonable.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our Auditor's Report thereon. The otherinformation as identified above is expected to be made available to us after the date ofthis Auditor's Report.

Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

When we read those documents including annexures if any thereon if we conclude thatthere is a material misstatement therein we shall communicate the matter to those chargedwith the governance.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safe guardingthe assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to dose.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3)of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account;

(d) In our opinion the aforesaid standalone financial statements comply with the IndASspecified under Section 133 of the Act read with the relevant rules issued thereunder;

(e) In view of exemption given vide notification no. G.S.R. 463(E) dated June 5 2015issued by the 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 with reference to standalone financial statements of the company and theoperating effectiveness of such controls refer to our separate report in Annexure '1'.Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls with reference to Standalone financialstatements.

(g) Pursuant to Notification No. GSR 463(E) dated 5th June 2015 issued by the Ministryof Corporate Affairs Government of India provisions of Section 197 of the Companies Act2013 are not applicable to the Company being a Government Company; and

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements - Refer Note 58 to the Standalonefinancial statements.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv) (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement

v) (a) The final dividend proposed for the previous year declared and paid by theCompany during the year is in accordance with Section 123 of the Act as applicable.

(b) Interim dividend (including special dividend) declared and paid by the Companyduring the year is in accordance with Section 123 of the Act.

(c) As stated in note 59(b) to the financial statements the Board of Directors of theCompany has proposed final dividend for the year which is subject to the approval of themembers at the ensuing Annual General Meeting. The amount of dividend proposed is inaccordance with Section 123 of the Act to the extent it applies to declaration ofdividend.

2. In terms of section 143(5) of the Companies Act 2013 we give in Annexure '2'our report on the directions issued by the Comptroller and Auditor General of India.

3. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in Annexure'3'a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

For T R CHADHA & CO LLP For UMAMAHESWARA RAO For B M CHATRATH & CO LLP For PSD & ASSOCIATES
Chartered Accountants & CO Chartered Accountants Chartered Accountants
FRN:006711N/N500028 Chartered Accountants FRN : 301011E/E300025 FRN:004501C
FRN:004453S
Neena Goel R R Dakshinamurthy Sanjay Sarkar Prakash Sharma
Partner Partner Partner Partner
M. No. 057986 M. No. 211639 M. No. 064305 M. No. 072332
UDIN: 22057986AJJJKS7958 UDIN: 22211639AJJLJO9329 UDIN: 22064305AJJILF8943 UDIN: 22072332AJJIHV7775
Place: Gurugram Place: Gurugram Place: Gurugram Place: Gurugram
Date: 21May 2022

Annexure '1' to the Auditors' Report

As referred to in our Independent Auditors' Report of even date to the members of the PowerGrid Corporation of India Limited on the standalone Ind AS financial statements forthe year ended 31March 2022

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting with referenceto Ind AS financial statements of the company as at 31 March 2022 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlswith reference to Ind AS financial statements that were operating effectively for ensuringthe orderly and efficient conduct of business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to Ind AS financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Control over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to Ind AS financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to Ind ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting with reference to Ind AS financial statements includedobtaining an understanding of internal financial controls over financial reporting withreference to Ind AS financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrols based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting with reference to Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to IndAS Financial Statements

A company's internal financial control over financial reporting with reference to IndAS financial statements is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting with reference to Ind AS financialstatements includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or dispositions of the Company's assets that could have amaterial effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to Ind AS Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to Ind AS financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to Ind AS financialstatements to future periods are subject to the risk that the internal financial controlsover financial reporting with reference to Ind AS financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to Ind AS financialstatements and such internal financial controls over financial reporting with reference toInd AS financial statements were operating effectively as at 31 March 2022 based on theinternal financial controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For T R CHADHA & CO LLP For UMAMAHESWARA RAO For B M CHATRATH & CO LLP For PSD & ASSOCIATES
Chartered Accountants & CO Chartered Accountants Chartered Accountants
FRN:006711N/N500028 Chartered Accountants FRN : 301011E/E300025 FRN:004501C
FRN:004453S
Neena Goel R R Dakshinamurthy Sanjay Sarkar Prakash Sharma
Partner Partner Partner Partner
M. No. 057986 M. No. 211639 M. No. 064305 M. No. 072332
UDIN: 22057986AJJJKS7958 UDIN: 22211639AJJLJO9329 UDIN: 22064305AJJILF8943 UDIN: 22072332AJJIHV7775
Place: Gurugram Place: Gurugram Place: Gurugram Place: Gurugram
Date: 21May 2022

Annexure '2' to the Auditors Report

As referred to in our Independent Auditors' Report of even date to the members of the PowerGrid Corporation of India Limited on the standalone Ind AS financial statements forthe year ended 31 March 2022

S. No. Directions Auditors' Comments Impact on financial statement
1. Whether the Company has a system in place to process all the accounting transactions through IT system Rs. If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. The company is having ERP system (SAP) in place for processing all accounting transactions. Based on our verification no accounting transaction is being recorded/ processed other than through the ERP system in place. NIL
2 Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/ interest etc. made by a lender to the company due to the company's inability to repay the loan Rs. If yes the financial impact may be stated. Whether such cases are properly accounted for Rs. (Incase lender is a Government company then this direction is also applicable for Statutory Auditor of lender company). Based on our verification and explanations and information given to us there were no cases of restructuring of an existing loan or cases of waiver/ write off of debts/loan/interest etc. made by a lender to the company due to the company's inability to repay the loan. NIL
3. Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/ State or its agencies were properly accounted for/utilized as per its term and conditions Rs. List the cases of deviation. Based on our verification and explanations and information given to us funds received/receivable for specific scheme from Central/State agencies were properly accounted for and utilized as per its terms and conditions. No deviations were noticed by us. NIL

 

For T R CHADHA & CO LLP For UMAMAHESWARA RAO For B M CHATRATH & CO LLP For PSD & ASSOCIATES
Chartered Accountants & CO Chartered Accountants Chartered Accountants
FRN:006711N/N500028 Chartered Accountants FRN : 301011E/E300025 FRN : 004501C
FRN:004453S
Neena Goel R R Dakshinamurthy Sanjay Sarkar Prakash Sharma
Partner Partner Partner Partner
M. No. 057986 M. No. 211639 M. No. 064305 M. No. 072332
UDIN: 22057986AJJJKS7958 UDIN: 22211639AJJLJO9329 UDIN: 22064305AJJILF8943 UDIN: 22072332AJJIHV7775
Place: Gurugram Place: Gurugram Place: Gurugram Place: Gurugram
Date: 21May 2022

Annexure '3' to the Independent Auditors' Report

As referred to in our Independent Auditors' Report of even date to the members of the PowerGrid Corporation of India Limited on the standalone Ind AS financial statements forthe year ended 31 March 2022 we report that:

(i) a) (A) The Company has generally maintained records showing full particularsincluding quantitative details and situation of Property Plant & Equipment includingdetails of right-of-use assets covered under Ind AS 116 'Leases'

(B) The Company has generally maintained proper records showing full particulars ofintangible assets.

b) The Property Plant & Equipment have been physically verified by the managementduring the year. In our opinion frequency of verification is reasonable having regard tothe size of the Company and nature of its business. No material discrepancies were noticedon such verification.

c) With respect to immovable properties disclosed in the financial statements includedin property plant and equipment according to the information and explanations given tous and based on the examination of the registered sale deed / transfer deed / conveyancedeed provided to us we report that the title deeds of such immovable properties are heldin the name of the company as at the balance sheet date except for the following:

Description of the property Gross Carrying Amount ( Rs. in Crore) Held in the name of Whether promoter director or their relative or employee Period held - indicate range where appropriate Reason for not being held in name of company
Leasehold Land
Pandiabili 8.82 Govt. of Odisha No 12.01.2018 The Company is in the process of getting the lease deed registered from Govt. of Odisha. There is procedural delay in creation of lease deed.
Durgapur 21.65 SAIL-Durgapur No 01.05.2017 The original Lease agreement with SAIL had expired and the same is under process for renewal.
Maithon 0.02 Govt. Of West Bengal No 04.05.2019 & 24.04.2021 Renewal of lease request has been submitted to DLLRO-Asansol. Reply on the same is awaited.
Wagoora_400/220 kV Sub-Station 1.33 Govt of J&K No FY 1993-94 onwards Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
New Wanpoh_400/220 kV Sub-Station 25.45 Govt of J&K No 30.11.2010 Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Kishenpur Township_ 800/400/220 kV Sub-Station Kishenpur 0.06 Govt of J&K No 31.03.1995 & 31 .03.1996 Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Kishenpur_ 800/400/220 kV Sub- Station Kishenpur 0.34 Govt of J&K No 31.03.1993 & 31 .1 2.1994 Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Narwal_ Line Office Narwal 0.003 Govt of J&K No FY 1993-94 onwards Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Samba S/S Land 11.6 Govt of J&K No 19.04.2012 Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Transformer Land Land in UT of Jammu and Kashmir 93.09 Govt of J&K No FY 1993-94 onwards Land in UT of J&K is acquired by State Government under State Land Acquisition act. As per law the state government remains the owner of the land acquired and company is only given possession for specific use.
Alipurduar- Mathabhanga Earth Electrocode 0.30 Govt. Of West Bengal No 17.03.2017 Lease agreement of 4.85 Hectares of Lease land is approved by the State Cabinet on 23.11.21. Signing of lease agreement is under process. For balance land of 1.16 hectares process is on for approval at State Cabinet.
Jamshedpur 0.13 Forest Dept. No FY 1992-93 onwards JIADA is trying to get clearance for land transfer from Forest Dept. for onward transfer to POWERGRID.
Ajmer Township 0.96 Ajmer Distt Authority No 01-04-1999 Execution of lease deed is pending on account of disposal of the petition before Division Commissioner Ajmer for demand of interest on revised land cost.
400/220 KV S/S Dwa rka 63.13 GNCTD No 01-04-2018 Execution of lease deed is pending on account of procedural delays.
400/220 KV S/S Tuglakabad 35.52 GNCTD No 01-04-2018 Execution of lease deed is pending on account of procedural delays.
400/220 kV GIS Pooling Station Chamba 12.36 HP Govt. No 19.10.2011 As per GOI guidelines Forest Land diverted to Non-Forestry purpose under FCA 1980 will be having legal status as "Forest" even after diversion.
SLTS_Kargil Substation (UT of Ladakh) 0.00 JKPDD No 23.03.2021 Govt of India (MOP) has declared Srinagar Leh Transmission System (SLTS) project as Interstate
SLTS_Leh Substation (UT of Ladakh) 0.00 JKPDD No 23.03.2021 Transmission System Projects (ISTS) and the same has been transferred to Powergrid. Pending signing of the
SLTS_Drass Substation (UT of Ladakh) 0.00 JKPDD No 23.03.2021 MOU the lease deed is not executed in the name of the Company.
SLTS_Khalsti Substation (UT of Ladakh) 0.00 JKPDD No 23.03.2021
Freehold Land
Birpara 0.004 Govt. Of West Bengal No 01.11.1996 Survey work of Birpara Mouza is under progress by Block Land Reforms Office & mutation will be done after survey work is completed.
Maithon 0.002 Multiple Private Owner No 01.04.1992 The Company is in the process of getting the title deed registered from office of District Land and Land Reforms Officer (DLLRO). There is procedural delay in transfer of title deed.
Maithon 0.02 CLW-Indian Railway No 01.04.1992 Matter is being followed up with CLW (Chittaranjan Locomotive works) for execution of registration deed. There is procedural delay in transfer of title deed.
Maithon 0.32 Multiple Private Owners No 28.03.2018 NOC from Tribal Board is yet to be received pending which title deed is not transferred in the name of the Company.
Alipurduar- Mathabhanga Earth Electrocode 0.67 Multiple Private Owners No 31.12.2012 Transfer of title deed is pending on account of procedural delays.
Rajarhat 23.23 Multiple Private Owners No 30.11.2014 Transfer of title deed is pending on account of procedural delays.
Aizawl 0.03 Govt.of Mizoram No 1991 Transfer of title deed is pending on account of procedural delays.
Misa 0.31 Govt.of Assam No 1994 Legal fees has been paid to the Govt. of Assam and transfer of title deeds in the name of Powergrid is under process with the concerned department of Govt. of Assam.
Faridabad NR-1 RHQ (Township) 6.42 HSVP HARYANA No 01-04-1999 Pending disposal of appeal against enhancement and extension fees demanded by HSVP the title deed is pending to be transferred in favour of the Company.
Meerut SS 0.18 UP Govt No 01/04/2003 Land acquired for Meerut Sub station includes Gram Samaj Land. Concerned authority is being approached for completion of Legal formalities.
Hisar S/S 0.57 NHPC No 30-09-1991 The company is dealing with multiple authorities for transfer of land situated at multiple locations. The transfer of title deed is pending on account of procedural delays.
Hiriyur 400/220 KV substation 0.34 Karnataka Industrial Area Development Board (KIADB) No 01-02-2004 Pending title rectifications for few parcels of land to be carried out by KIADB title deed is yet to be registered in the name of POWERGRID.
Bidadi 400/220 KV GIS 20.00 Karnataka Industrial Area Development Board (KIADB) No 23-03-2011 Transfer of title deed is pending on account of procedural delays with office of KIADB.
Yelahanka 400/220 KV substation 30.72 Karnataka Power Transmission Corporation Limited (KPTCL) No 23-03-2011 Transfer of title deed is pending on account of procedural delays with office of M/s KPTCL
Kolar Siddalagatta HVDC SS 0.91 Karnataka Industrial Area Development Board (KIADB) No 01-04-2002 Transfer of title deed is pending on account of procedural delays with office of KIADB.
Somanhalli 400/220 KV SS 0.34 Karnataka Power Transmission Corporation Limited (KPTCL) No FY 1992-93 onwards Transfer of title deed is pending on account of procedural delays with office of M/s KPTCL
Tumkur 765/400/220 KV SS 42.29 Karnataka Industrial Area Development Board (KIADB) No 25-09-2013 Transfer of title deed is pending on account of procedural delays with office of KIADB.
Kudugi 765/400 KV GIS 8.83 Karnataka Industrial Area Development Board (KIADB) and Others No 28-02-2014 Transfer of title deed is pending on account of procedural delays with office of KIADB.
Pavagada 400/220 KV SS 0.64 Private Parties are Chowdappa S/o Akkanna Mrs. Sanjeevamma D/o Venkatappa M. Chaplainship S/o Venkatappa and Others No 30-06-2017 Registration and mutation is pending on account of establishing the legal ownership of the land and consideration for the said land is also yet to be paid.
Pugalur HVDC SS 0.31 Bhoodan Trust Board No 01-04-2017 The land has been allotted by Bhoodan Trust Board to the company. Due to delay in incumbency of meetings of Bhoodan Trust Board and other formalities registration in the name of the company is pending.
Kovilpatti 400/220 KV GIS 45.36 Shri Ramesh and Shri R Rajan No 19-10-2011 Pursuant to the directions of the Hon'ble High court of Chennai Sole Arbitrator has been appointed and an award has been passed. Aggrieved by the award both the parties have approached Hon'ble High Court for compensation award. Hon'ble. High court Chennai is yet to decide the case. Therefore title deed is yet to be transferred in the name of the Company.
Line Office Banikhet Tehsil & Distt. Chamba (HP) 0.003 HP Govt. No 28.02.1994 Subject land is Govt./Forest Land in the record of HP Govt. As per GOI guidelines Forest Land diverted to Non-Forestry purpose under FCA 1980 will be having legal status as "Forest" even after diversion.
Township-Sector 46 Gurgaon 11.00 Haryana Shahari Vikas Pradhikaran (HSVP) No 02-12-1998 Pending the outcome of representation made to HSVP by the Company for waiver of penalty the title deed is pending for transfer in favour of the Company.
Buildings
Flats in Mumbai 2.96 MHADA No 02-01-2017 Transfer of title deed is pending on account of procedural delays.

d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) and intangible assets during the year. Accordingly the provisions of clause3(i)(d) of the Order are not applicable.

e) According to the information and explanations given to us no proceedings have beeninitiated or are pending against the company for holding any Benami property under the"Benami Transactions (Prohibition) Act 1988 and Rules made thereunder.

(ii) (a) The inventories have been physically verified by the management during theyear. In our opinion frequency of verification coverage & procedure adopted by thecompany for verification is reasonable having regard to the size of the Company and natureof its business. No material discrepancies of 10% or more in the aggregate for each classof inventory between physical inventory and book records were noticed on physicalverification.

(b) The Company has been sanctioned working capital limits in excess of Rs. 5 croresin aggregate from banks on the basis of security of current assets. In our opinion andaccording to the information and explanations given to us the quarterlyreturns/statements filed by the company with such banks are in agreement with the books ofaccount of the Company.

(iii)(a) According to the information and explanations given to us the Company hasmade investments provided bank guarantee and granted unsecured loans during the year toSubsidiaries Joint Ventures and Associates.

(A) the aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans or advances in the nature of loan or guarantees orsecurity to subsidiaries joint ventures and associates are as follows:

(Rs. in crore)
Sl. No. Particulars

Guarantees

Secured Loan

Unsecured Loan

Aggregate amount granted/ provided during the year Balance outstanding as at 31.03.2022 Aggregate amount granted/ provided during the year Balance outstanding as at 31.03.2022 Aggregate amount granted/ provided during the year Balance outstanding as at 31.03.2022
1 Subsidiaries 64.96 430.74 - - 3996.85 14046.31
2 Joint Ventures - - - - - 18.40
3 Associates - 2.23 - - - -
4 Others - - - - - -

The Company has not provided any advances in the nature of loan or security to anySubsidiaries Joint Ventures and Associates during the year.

(B) In our opinion and according to information and explanations given to us theCompany has not given loans or advances or guarantees or security to parties other thansubsidiaries joint ventures and associates during the period under Audit.

(b) In our opinion and according to information and explanations given to us theinvestments made guarantees provided and the terms and conditions of the grant of allloans and guarantees provided are not prejudicial to the company's interest.

(c) In our opinion and according to information and explanations given to us inrespect of loans the schedule of repayment of principal and payment of interest has beenstipulated and the repayments or receipts are regular.

(d) In our opinion and according to information and explanations given to us no amountis overdue in respect of Loans.

(e) In our opinion and according to information and explanations given to us no loanor advance in the nature of loan granted which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the overdues of existing loans givento the same parties.

(f) In our opinion and according to information and explanations given to us thecompany has not granted any loans or advances in the nature of loans either repayable ondemand or without specifying any terms or period of repayment.

(iv) In our opinion and according to information and explanation given to us thecompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and security.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit from the public & no amounts has been deemed tobe deposits in accordance with the provisions of the sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder. Accordingly paragraph3(v) of the Order is not applicable to the company.

(vi) We have broadly reviewed the cost records maintained by the company specified bythe Central Government under sub section (1) of section 148 of the Companies Act 2013 inrespect of Transmission & Telecom Operations of the Company and we are of the opinionthat prima facie the prescribed records have been made and maintained. However we havenot made detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues with appropriate authoritiesincluding Provident Fund Income Tax Goods and Services Tax Sales Tax Wealth TaxService Tax Duty of Custom Duty of Excise Value Added Tax Cess and other statutorydues applicable to the Company and that there are no undisputed statutory dues outstandingas at 31 March 2022 for a period of more than six months from the date they becamepayable. As informed provisions of the Employees State Insurance Act are not applicableto the Company.

b) According to information and explanations given to us there are no statutory duesreferred to in sub- clause (a) have not been deposited on account of dispute. However thefollowing disputed demands of Income Tax Sales Tax Service Tax Value Added Tax Goods& Service tax and other Statutory dues have not been deposited as at March 31 2022:

Name of the Statute Nature of dues Amount* ( Rs. in Crore) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 4.22 From the F.Y. 2007-08 to F.Y. 2016-17 & F.Y. 2018-19 to F.Y. 2021-22 Jurisdictional Assessing Officers of TANs
Income Tax Act 1961 Income Tax 22.20 For the F.Y. 2018-19 CIT (A) Income Tax
Finance Act 1994 Service Tax 1.88 FY 2016-17 & FY 201718 Assistant Commissioner
Finance Act 1994 Service Tax 0.05 FY 2017-18 Assistant Commissioner
Goods and Services tax Act 2017 Goods and Services tax (GST) 0.23 FY 2017-18 Assistant Commissioner
Chhattisgarh Entry Tax Act 1976 Entry Tax 168.87 From the F.Y. 2011-12 to F.Y. 2014-15 & F.Y. 2016-17 Chhattisgarh High Court
Finance Act 1994 Service Tax 0.28 For the F.Y. 2003-04 Patna High Court
Central Sales Tax and Sales Tax/VAT Acts of various states Sales Tax/VAT 6.47 From F.Y. 1996-97 to F.Y. 2013-14 Sales Tax Authority and Appellate Tribunal J&K
Punjab Tax on Entry of Goods into Local areas Act 2000 Entry Tax 9.64 From F.Y. 2011-12 to F.Y. 2013-14 Hon'ble High Court Punjab Haryana & Chandigarh
Central Sales Tax and Sales Tax/VAT Acts of various states Sales Tax/VAT 62.83 From F.Y. 2014-15 to F.Y. 2017-18 Sales Tax Authority Appeal
Building & Other Construction Worker's Welfare (BOCW) Cess Act 1996 Building & Other Construction Worker Cess 3.71 For F.Y. 2007-08 Hon'ble High Court Himachal Pradesh Shimla
Delhi Municipal Corporation Act 1957 Property Tax 201.87 From F.Y. 2004-05- to F.Y. 2013-14 Hon'ble High Court Delhi
MP Land Revenue Code 1959 Diversion Tax 14.70 From F.Y. 1989-90 to F.Y. 2017-18 High Court ofM.P. Jabalpur
Delhi Municipal Corporation Act 1957 Property tax 90.66 From F.Y. 2007-08 to F.Y. 2017-18 Delhi High Court (LPA)
Total 587.61

* Demand amount including interest net of amount paid under protest.

(viii) In our opinion and according to the information and explanations given to usthe Company has not recorded in the books of account any transaction which have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961.

(ix) (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or other borrowings or in the paymentof interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared willful defaulter byany bank or financial institution or other lender.

(c) In our opinion and according to the information and explanations given to us theterm loans were applied for the purposes for which the loans were obtained.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the companywe report that no funds raised on short-term basis have been used for long-term purposesby the Company.

(e) On an overall examination of the financial statements of the Company we reportthat the Company has taken funds from the following entities on account of or to meet theobligations of its subsidiaries associates or joint ventures as per details below:

Nature of fund taken Name of lender Amount Disbursed/ Guarantee issued or renewed during the year (Rs. in Crore) Amount Repaid/ Guarantee reduced or discharged or renewed during the year( Rs. in Crore) Amount Outstanding as on 31st March 2022 (Rs. in Crore) Name of the subsidiary joint venture associate Relation Nature of Transaction for which Funds utilized
Bonds Bond Holders 724.17 Powergrid Jabalpur Transmission Ltd Associate* Capex
Term Loans Bank 458.83 Powergrid Jabalpur Transmission Ltd Associate* Capex
Bonds Bond Holders 1151.71 Powergrid Warora Transmission Limited Associate* Capex
Term Loans Bank 388.29 Powergrid Warora Transmission Limited Associate* Capex
Bonds Bond Holders 993.91 Powergrid Parli Transmission Limited Associate* Capex
Term Loans Bank 306.59 Powergrid Parli Transmission Limited Associate* Capex
Bonds Bond Holders 766.16 Powergrid Vizag Transmission Limited Associate* Capex
Term Loans Bank 17.83 Powergrid Vizag Transmission Limited Associate* Capex
Bonds Bond Holders - 165.61 Powergrid Kala Amb Transmission Limited Associate* Capex
Term Loans Bank 20.39 Powergrid Kala Amb Transmission Limited Associate* Capex
Bonds Bond Holders 891.36 Powergrid NM Transmission Limited Subsidiary Capex
Bonds Bond Holders 1.43 33.68 Powergrid Unchahar Transmission Limited Subsidiary Capex
Term Loans Bank 0.04 0.92 Powergrid Unchahar Transmission Limited Subsidiary Capex
Bonds Bond Holders 51.64 1450.64 Powergrid Southern Interconnector Transmission System Limited Subsidiary Capex
Term Loans Bank 0.41 42.73 1200.68 Powergrid Southern Interconnector Transmission System Limited Subsidiary Capex
Bonds Bond Holders 9.11 19.44 1342.65 Powergrid Medinipur Jeerat Transmission System Limited Subsidiary Capex
Term Loans Bank 15.26 1004.78 Powergrid Medinipur Jeerat Transmission System Limited Subsidiary Capex
Bonds Bond Holders 5.48 1.89 474.68 Powergrid Mithilanchal Transmission Limited Subsidiary Capex
Term Loans Bank 1.01 1.58 392.50 Powergrid Mithilanchal Transmission Limited Subsidiary Capex
Bonds Bond Holders 3.81 2.92 400.96 Powergrid Varanasi Transmission System Limited Subsidiary Capex
Term Loans Bank 10.30 1.88 266.40 Powergrid Varanasi Transmission System Limited Subsidiary Capex
Bonds Bond Holders 2.11 286.81 Powergrid Jawaharpur Firozabad Transmission Limited Subsidiary Capex
Term Loans Bank 0.27 36.46 Powergrid Jawaharpur Firozabad Transmission Limited Subsidiary Capex
Bonds Bond Holders 0.70 466.97 Powergrid Khetri Transmission Limited Subsidiary Capex
Term Loans Bank 2.30 169.00 Powergrid Khetri Transmission Limited Subsidiary Capex
Bonds Bond Holders 14.20 249.92 Powergrid Bhuj Transmission Limited Subsidiary Capex
Term Loans Bank 11.00 106.80 Powergrid Bhuj Transmission Limited Subsidiary Capex
Bonds Bond Holders 4.20 165.30 Powergrid Bhind Guna Transmission Limited Subsidiary Capex
Term Loans Bank 5.50 86.30 Powergrid Bhind Guna Transmission Limited Subsidiary Capex
Bonds Bond Holders 5.83 393.27 Powergrid Ajmer Phagi Transmission Limited Subsidiary Capex
Term Loans Bank 0.52 0.49 33.26 Powergrid Ajmer Phagi Transmission Limited Subsidiary Capex
Bonds Bond Holders 0.25 2.70 367.05 Powergrid Fatehagarh-II Transmission Limited Subsidiary Capex
Term Loans Bank 2.25 0.56 79.04 Powergrid Fatehagarh-II Transmission Limited Subsidiary Capex
Bonds Bond Holders 12.05 49.02 Powergrid Rampur Sambhal Transmission Limited Subsidiary Capex
Term Loans Bank 15.35 83.77 Powergrid Rampur Sambhal Transmission Limited Subsidiary Capex
Bonds Bond Holders 59.77 168.19 Powergrid Meerut Simbhavali Transmission Limited Subsidiary Capex
Term Loans Bank 55.55 109.12 Powergrid Meerut Simbhavali Transmission Limited Subsidiary Capex
Bonds Bond Holders 5.20 5.20 Powergrid Sikar Transmission Limited Subsidiary Capex
Bonds Bond Holders 3.95 3.95 Powergrid Ramgarh Transmission Limited Subsidiary Capex
Term Loans Bank 5.82 Powergrid Ramgarh Transmission Limited Subsidiary Capex
Bonds Bond Holders 53.71 53.71 Powergrid Aligarh Sikar Transmission Limited Subsidiary Capex
Term Loans Bank 8.25 8.25 Powergrid Aligarh Sikar Transmission Limited Subsidiary Capex
Bonds Bond Holders 23.90 23.90 Powergrid Bikaner Transmission System Limited Subsidiary Capex
Guarantee Bank 14.85 Powergrid Ajmer Phagi Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 30.38 Powergrid Varanasi Transmission System Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 26.10 92.25 Powergrid Khetri Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 6.83 24.38 Powergrid Fatehgarh Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 18.26 22.12 2.23 Powergrid Jabalpur Transmission Limited Associate* Performance Bank Guarantee
Guarantee Bank 66.88 127.59 23.61 Powergrid Mithilanchal Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 49.32 74.73 16.44 Powergrid Jawaharpur Firozabad Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 111.86 197.82 55.93 Powergrid Medinipur Jeerat Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 47.10 82.50 23.55 Powergrid Bhuj Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 67.50 118.80 33.75 Powergrid Meerut Simbhavali Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 56.28 98.79 28.14 Powergrid Rampur Sambhal Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 440.16 440.16 110.04 Powergrid Southern Interconnector Transmission System Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 21.42 14.04 Powergrid Ramgarh Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 39.85 25.63 Powergrid Bhind Guna Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 54.45 34.65 Powergrid Bikaner Transmission System Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 10.50 10.50 Powergrid Bhadla Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 37.13 37.13 Powergrid Sikar Transmission Limited Subsidiary Performance Bank Guarantee
Guarantee Bank 17.33 17.33 Powergrid Aligarh Sikar Transmission Limited Subsidiary Performance Bank Guarantee

* Subsidiary till 12.05.2021

(f) the Company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies.

(x)(a) The company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or convertible debentures(fully partially or optionally convertible) during the year and hence reporting underclause 3(x)(b) of the Order is not applicable.

(xi) (a) According to the information and explanations given to us and as representedby the Management and based on our examination of the books and records of the Company nocase of material fraud by the Company or on the Company has been noticed or reportedduring the year.

(b) As no fraud has been noticed during the year as mentioned at xi(a) above reportunder sub-Section (12) of Section 143 of the Companies Act in the Form ADT-4 as prescribedunder Rule 13 of Companies (Audit and Auditors) Rules 2014 is not applicable.

(c) we have taken into consideration the Whistle blower complaints received by theCompany during the year and provided to us when performing the audit.

(xii) The company is not a Nidhi Company as prescribed under section 406 of the Act.Accordingly clause 3(xii) of the Order is not applicable to the company.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the details have been disclosed inthe standalone financial statements as required by the applicable Indian AccountingStandards.

(xiv) (a) According to the information and explanations given to us and based on ourexamination of the records of the company the company has an internal audit systemcommensurate with the size and nature of its business.

(b) We have considered the reports of the Internal Auditors for the year under auditissued to the Company during the year and till date in determining the nature timing andextent of our audit procedures.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the company.

(xvi)(a) In our opinion and according to the information and explanations given to usthe Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly provisions of clause (xvi)(a) of the Order are notapplicable to the Company.

(b) According to the information and explanations provided to us the Company has notconducted any NonBanking Financial or Housing Finance activities therefore the Company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly provisions of clause 3(xvi)(b) of the Order are not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly provisions of clause 3(xvi)(c) of theOrder are not applicable.

(d) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016). Accordingly provisions ofclause 3(xvi)(d) of the Order are not applicable.

(xvii) Based on our examination of the records of the company the company has notincurred any cash losses in the current Financial Year and in the immediately precedingFinancial Year. Accordingly provisions of clause 3(xvii) of the order are not applicable

(xviii) There has not been any resignation of the statutory auditors during the year.Accordingly provisions of clause 3 (xviii) of the order are not applicable.

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company.

We further state that our reporting is based on the facts up to the date of the auditreport and we neither give any guarantee nor any assurance that all liabilities fallingdue within a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due.

xx) According to the information and explanations given to us and based on ourexamination of the records the Company has spent the amount required as per section135(5) of the Companies Act during the financial year. Accordingly paragraph 3(xx)(a)& 3(xx)(b) are not applicable to the company.

For T R CHADHA & CO LLP For UMAMAHESWARA RAO & CO For B M CHATRATH & CO LLP For PSD & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN:006711N/N500028 FRN : 004453S FRN : 301011E/E300025 FRN:004501C
Neena Goel R R Dakshinamurthy Sanjay Sarkar Prakash Sharma
Partner Partner Partner Partner
M.No. 057986 M.No. 211639 M.No. 064305 M.No. 072332
UDIN: 22057986AJJJKS7958 UDIN: 22211639AJJLJO9329 UDIN: 22064305AJJILF8943 UDIN: 22072332AJJIHV7775
Place: Gurugram Place: Gurugram Place: Gurugram Place: Gurugram
Date: 21May 2022

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