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Schneider Electric Infrastructure Ltd.

BSE: 534139 Sector: Engineering
NSE: SCHNEIDER ISIN Code: INE839M01018
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VOLUME 1240959
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OPEN 168.45
CLOSE 166.70
VOLUME 1240959
52-Week high 189.60
52-Week low 92.00
P/E 70.73
Mkt Cap.(Rs cr) 4,262
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Schneider Electric Infrastructure Ltd. (SCHNEIDER) - Auditors Report

Company auditors report

To the Members of Schneider Electric Infrastructure Limited

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the Ind AS financial statements of SchneiderElectric Infrastructure Limited ("the Company") which comprise the BalanceSheet as at March 31 2022 and the Statement of Profit and Loss (including otherComprehensive Income) the Statement of Changes in Equity and the Statement of CashFlowsfor the year then ended and notes to the Ind AS Financial Statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to usthe aforesaid Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2022 and net profit and total comprehensiveincome changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit oftheInd AS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("the ICAI") together with the ethical requirements that are relevant toour audit of the Ind AS financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of theInd AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the Ind AS financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sl. No. The key audit matter How the matter was addressed in our audit
1 Revenue Recognition In view of the significance of the matter following audit procedures were applied in this area amongst others to obtain sufficient and appropriate audit evidence:
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. We assessed the appropriateness of the revenue recognition accounting policies and its compliance in terms of Ind AS 115 ‘Revenue from contracts with customers'.
The Company has concluded that as principal it typically controls the goods or services before transferring them to the customers. There is an inherent risk and presumed fraud risk around the accuracy and existence of revenues recognised. Further revenue is an important element of how the Company measures its performance. We obtained an understanding of management's internal controls over the revenue recognition process and evaluated the design and tested the operating effectiveness of key controls.
The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the controls have been transferred. We carried out analytical procedures on revenue recognised during the year to identify unusual variances and discussed with designated management personnel.
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers' it has been determined a key audit matter in our audit of the Ind AS financial statements. We performed substantive procedures by testing the underlying documents on samples selected based on a representative sampling of revenue transactions recorded during the year.
In view of the above and given the Company and its stakeholders focus on revenue as a key performance indicator we determined this to be a key audit matter. We performed cut-off testing on sales transactions made near the year-end on sample basis by obtaining supporting documentation including customer confirmation of receipt of goods to establish that sales and corresponding trade receivables are properly recorded in the correct period.
We tested the relevant disclosures made in the Ind AS financial statements.
2 Trade Receivables In view of the significance of the matter following audit procedures were applied in this area amongst others to obtain sufficient and appropriate audit evidence:
Trade receivables including retention money with customers amounted to ` 4435.47 million at year- end which is significant part of the total assets of the Company. Impairment loss on trade receivables is recognized in accordance with accounting policies as detailed in "significant accounting policies" in the financial statements. Obtained an understanding of the processes implemented to estimate impairment provision against trade receivables.
The Company is required to assess the recoverability of its trade receivables on a regular basis. It makes an impairment allowance for specific customers on case-to- case analysis. It further makes an estimate of impairment allowance for balance receivables on the basis of lifetime expected credit loss method based on provision matrix in accordance with Ind AS 109 Financial Instruments. Tested key controls (both design and operating effectiveness) over estimation of impairment loss.
In respect of significant provisions made for specific trade receivables we obtained and evaluated specific assessment from the Company and examined related available information such as correspondences with customers and publicly available information.
Evaluated the "expected credit loss" model adopted to estimate the impairment allowance and tested the related assumptions and computations.
The Company further considers impact of external environment such as possible effect from the COVID-19 pandemic. Obtained and tested the base data used in the above- mentioned model such as trade receivables ageing historical billing and collection data.
In assessing the recoverability of trade receivables management also exercised significant judgements to evaluate the collectability from individual customers after considering their creditworthiness whether they have financial difficulties experience of default or delinquency in payments and ageing analysis. The judgements applied by management have a significant impact on the level of provision required for trade receivables. Evaluated the various assumptions and judgements applied such as discount rate period of delays of receipts from customers etc.
Circulated the balance confirmation letter to the customers and analysed the responses in balance confirmation letter obtained from the customers.
In view of above we determined this area to an area of audit focus and accordingly a key audit matter. We tested the relevant disclosures made in the Ind AS financial statements.
3 Tax Litigations In view of the significance of the matter following audit procedures were applied in this area amongst others to obtain sufficient and appropriate audit evidence:
The Company's operations are subject to complexities arising from applicability of various laws and regulations with respect to positions on matters relating to income tax sales tax goods and services tax service tax excise customs etc. (either past or present). Provision for taxes is recognized or contingent liabilities are disclosed in accordance with accounting policies as detailed in "significant accounting policies" in the financial statements.
We obtained an understanding of the process of identification of tax litigations related contingent liabilities and the key uncertain tax positions.
Obtained the list of ongoing litigations of the Company and discussed the same with the management to understand the details of the underlying matters.
Tested key controls (both design and operating effectiveness) over the estimate of provisions for various taxes.
Due to complexity of cases significant amount involved and timescales for resolution significant judgment and estimations are required in assessing the range of possible outcomes for some of these matters. These judgments could change over time as each of the matter progresses depending on experience on actual assessment proceedings by tax and other authorities and other judicial precedents. We analysed the Company's judgment regarding the eventual resolution of matters with various tax authorities. In this regard we understood how the Company has considered past experience where available with the authorities in the respective jurisdictions.
We obtained representations from relevant consultants and legal counsels. We also evaluated the objectivity competence and relevant experience of those consultants / legal counsels.
The Company makes an assessment to determine the outcome of these tax positions and decides to make an accrual or consider it to be a possible contingent liability. This affects the measurement and accuracy of provision for taxes. Involved specialists to evaluate estimates on the basis of the facts of each case internal evaluations legal precedence assumptions made and external legal opinions.
In view of the above-mentioned factors we have determined this to be a key audit matter. We tested the relevant disclosures made in the Ind AS financial statements.
4 Impairment assessment of property plant and equipment capital work in progress right-of-use assets and intangible assets In view of the significance of the matter following audit procedures were applied in this area amongst others to obtain sufficient and appropriate audit evidence:
The carrying amount of property plant and equipment capital work in progress right of use assets and intangible assets amounted to ` 3132.75 million at year-end which is significant part of the total assets of the Company. The Company has accumulated losses aggregating to ` 3239.93 million including the net loss in recent most previous years. As a result there is risk that carrying value of property plant and equipment may be higher than their recoverable amount. We evaluated the method and models used to determine whether the recoverable amounts were appropriate by comparing them with the requirements of Ind AS 36 - ‘Impairment of Assets'.
We assessed the valuation methodology and assumptions developed and applied by the management by involving our internal valuation expert in our assessment of:
- Key judgements and assumptions applied against industry norms and the asset type.
Management carried out an impairment assessment to determine whether the recoverable amounts of these assets are less than the respective carrying amounts using a discounted cash flow method. - The evaluation of the expectation of future cash flow projections
- Agreed the base data of the valuation to underlying support.
The evaluation of the recoverable amount of these assets requires the significant estimates in determining the key assumptions supporting the expected future cash flows of the business the utilisation of the relevant assets the forecast revenue profit Weighted Average Cost of Capital (WACC) and discount rates. Considering the above factors we considered this area to be a key audit matter. - Compared the discount rate and WACC used by the management to independent external sources where possible.
We considered the revenue and margin growth rate used by the management by comparing the rate with the historical trend in revenue and margin within the Company and considering our own understanding about developments in the industry.
We compared the Company's margin percentage to similar sized companies in the region and to historical trend in the industry.
We performed a sensitivity analysis to understand the effect of changes in key variables on the outcome of the model.
We considered the adequacy of the disclosures of the assumptions and judgements applied to determine whether they were in accordance with Ind AS 36 ‘Impairment of Assets'.

Information Other than the Ind AS Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the Ind AS financial statements and our auditor's reportthereon which we obtained prior to the date of this auditor's report.

Our opinion on the Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the Ind AS financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these Ind ASfinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equityand cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of theInd AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements the Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of theseInd AS financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theIndAS financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system with reference tofinancial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Management.

• Conclude on the appropriateness of the Management's use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Ind AS financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

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

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Ind ASfinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the "AnnexureA" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Changes in Equity and the Statement of CashFlowsdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 (as amended).

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid/ provided by the Company to its directorsduring the year is in accordance with the provisions of Section 197 of the Act.

(h) W ith respect to the other matters to be included theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 (as amended)in our opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements – refer note 33 to the Ind ASfinancial statements;

ii. The Company has made provision as required under the applicablelaw or Indian Accounting Standards for material foreseeable losses if any on long-termcontracts– refer note 16(ii)(d) to the Ind AS financial statements.The Company didnot have any material foreseeable losses on derivative contracts.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a). The Management has represented that to the best of it'sknowledge and belief as disclosed in the note 45(ii) to the Ind AS financial statementsno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b). The Management has represented that to the best of it'sknowledge and belief as disclosed in the note 45(ii) to the Ind AS financial statementsno funds have been received by the Company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the Company shall directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under subclause (a) and (b) of Rule 11(e)contain any material misstatement. v. The Company has not declared or paid anydividendduring the year.

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590
UDIN No.: 22509590AJJYHX3641
Place: Gurugram
Date: May 21 2022

Annexure A to the Independent Auditor's Report

Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of the Independent Auditor's Report of evendate to the members of Schneider Electric Infrastructure Limited on the Ind AS financialstatements as of and for the year ended March 31 2022

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

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

(b) The Company has a regular program of physical verification of its Property Plantand Equipment under which Property Plant and Equipment are verified in a phased mannerover a period of 3 years which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. In accordance with this programcertainProperty Plant and Equipment were verified during the year and according to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and based on theexamination of the registered sale deed / transfer deed / conveyance deedprovided to uswe report that the title deeds of all the immovable properties (other than propertieswhere the Company is the lessee and the lease agreements are duly executed in favor of thelessee) are held in the name of the Company.

(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) There are no proceedings which have been initiated or are pending against theCompany for holding benami property under the Benami Transactions (Prohibition) Act 1988(45 of 1988) (as amended in 2016) and rules made thereunder. Accordingly the provisionsof clause 3(i)(e) of the Order are not applicable.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year except for goods-in-transit and stocks lying with thirdparties. For stocks lying with third parties at the year-end written confirmations havebeen obtained by the management. According to the information and explanations given tous and based on the audit procedures performed by us we are of the opinion that thecoverage and procedure of verification of finished goods by the management should be mademore comprehensive.

Though there were no material discrepancies of 10% or more in the aggregate for eachclass of inventory between physical inventory and book records noticed on physicalverification the identified discrepancies were properly dealt with in the books ofaccount.

(b) In our opinion and according to the information and explanations given to usduring the year the Company has not been sanctioned any working capital from banks orfinancial institutions on the basis of security of current assets. Accordingly theprovisions of clause 3(ii) (b) of the Order are not applicable.

(iii) In our opinion and according to the information and explanations given to us theCompany has not made investments in provided any guarantee or security or granted anyloans or advances in the nature of loans secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or any other parties. Accordingly the provisions ofclause 3(iii)(a) - (f) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to ustheCompany has not entered into any transaction covered under Sections 185 and 186 of theAct.Accordingly the provisions of clause 3(iv) of the Order are not applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has neither accepted any deposits nor the amounts which are deemed to be depositsduring the year and further the Company had no unclaimed deposits at the beginning of theyear within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance ofDeposits) Rules 2014 (as amended).

Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of Company's products/services andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.

(vii) (a). According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including goods and servicestax provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added taxcessand other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

(b) According to the information and explanations given to us thereare no statutory dues referred to in sub-clause (a) that have not been deposited with theappropriate authorities on account of any dispute except for the following cases:

Sl. No. Name of the statute Nature of dues Disputed amount (Rs. in million) Deposited amount (Rs. in million) Period to which the amount relates Forum where dispute is pending
1 Central Sales Tax Act 1956 Non submission of declaration forms 17.21* - 2005-06 2006-07 and 2007-08 Deputy Commissioner U.P. Sales Tax
2 Uttar Pradesh Trade Tax Act 1948 Levy of purchase tax due to unregistered purchases made 0.33* - 2006-07 Deputy Commissioner Sales Tax Noida
3 Central Sales Tax Act 1956 Non submission of declaration forms Input tax claim disallowed 1.00* 2.34 2006-07 Assessing Officer Charge Office West Bengal
4 Central Sales Tax Act 1956 Non collection of declaration forms 3.67* - 2001-02 and 2002-03 Deputy Commissioner
5 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 28.05* 21.19 2006-07 Deputy Commissioner Allahabad
6 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 21.46* 37.97 2007-08 Joint Commissioner Allahabad
7 Central Sales Tax Act 1956 CST demands on account of Non collection of declaration forms VAT demand on account of stock transfer issue and purchase tax issue 46.05* 48.56 2008-09 Joint Commissioner Allahabad
8 Central Sales Tax Act 1956 Disallowance of stock transfers made within the state denial of input tax credit difference in interpretation of rates and non-submission of documents to substantiate the purchases 3.58* 3.58 2008-09 Joint Commissioner (Allahabad)
9 Uttar Pradesh Trade Tax Act 1948 Ex-Parte assessment order Passed. Records not submitted at the time of assessment 5.50* 4.61 2005-06 Deputy Commissioner U.P. Sales Tax
10 Delhi Value Added Tax Act 2004 Non submission of statutory form such as C/H/F/E-1 and export documents 1.83 - 2007-08 Commercial Tax Officer
11 Rajasthan Value Added Tax Act 2003 Input tax claim disallowed 0.08* - 2008-09 Deputy Commissioner Jaipur
12 Central Sales Tax Act 1956 Non collection of declaration forms 0.26* - 2008-09 Deputy Commissioner Jaipur
13 Central Sales Tax Act 1956 Non collection of declaration forms 11.09* - 2009-10 Deputy Commissioner Appeal
14 Central Sales Tax Act 1956 Non collection of declaration forms 0.26* - 2009-10 Deputy Commissioner Appeals
15 Gujarat Value Added Tax 2003 Non collection of declaration form 1.08* 2.47 2007-08 Joint Commissioner (Corporate)
16 Central Sales Tax Act 1956 Non collection of declaration form CST documents like PO endorsed ARE 1 E1 dorms 0.54* - 2009-10 Deputy Commissioner Comm Tax
17 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 57.38* 45.02 2009-10 Joint Commissioner (Allahabad)
18 Madhya Pradesh Value Added Tax Act 2002 Entry tax on high sea sales imported material 0.07* 0.02 2010-11 Deputy Commissioner Appeals
19 Central Sales Tax Act 1956 Non collection of declaration forms 0.42* 0.14 2010-11 Deputy Commissioner Appeals
20 Madhya Pradesh Value Added Tax Act 2002 Non collection of declaration form CST treated as local VAT sale 0.18* 0.06 2010-11 Deputy Commissioner Appeal
21 Central Sales Tax Act 1956 Non submission of declaration forms 14.96* 20.65 2010-11 and 2011-12 Tribunal
22 Central Sales Tax Act 1956 Non submission of declaration forms 4.18* 5.58 2009-10 Tribunal
23 Central Sales Tax Act 1956 Non collection of declaration forms & CST treated as local VAT Sale 40.93* 14.59 2010-11 Additional Commissioner Appeals
24 Central Sales Tax Act 1956 Non submission of statutory Form such as C/H/F/E-1 and export documents 73.12* 31.81 2011-12 Joint Commissioner (Corporate Circle)
25 Central Sales Tax Act 1956 Non collection of declaration forms 6.82* 1.82 2010-11 Deputy Commissioner Appeals
26 Central Sales Tax Act 1956 Non collection of declaration forms 0.68* 0.07 2011-12 Deputy Commissioner Appeals
27 Central Sales Tax Act 1956 Non collection of declaration forms 11.02 5.50 2011-12 and 2013-14 Deputy/Additional Commissioner Appeal
28 Central Sales Tax Act 1956 Provisional assessment 0.52 0.91 2014-15 Additional Commissioner Appeals
29 Gujarat Value Added Tax 2003 Input tax claim disallowed non- submission of declaration forms 111.01* 28.27 2011-12 Joint Commissioner Appeal
30 Central Sales Tax Act 1956 Non submission of statutory Form such as C/H/F/E-1 and export documents 9.21* 2.42 2011-12 Joint Commissioner Appeal
31 Central Sales Tax Act 1956 Non submission of declaration forms Input tax claim disallowed 46.25 - 2007-08 Revision Board at Beliaghata
32 Central Sales Tax Act 1956 Non collection of declaration forms 1.94 1.96 2013-14 Deputy Commissioner
33 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 4.40 - 2012-13 Deputy Commissioner Noida-I Uttar Pradesh
34 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 4.84 8.85 2014-15 Deputy Commissioner
35 Central Sales Tax Act 1956 non-submission of waybill Form 402 6.41 2.10 2016-17 Deputy Commissioner Commercial Taxes Gujarat
36 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 32.89 3.29 2013-14 Additional Commissioner (Appeals) Noida
37 Central Sales Tax Act 1956 Non submission of statutory forms and alleged short payment of duty 126.73 7.65 2014-15 Joint Commissioner Sales Tax West Bengal
38 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 20.90 0.89 2014-15 Joint Commissioner Sales Tax Noida
39 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 0.13 0.03 2014-15 Joint Commissioner Sales Tax Delhi
40 Central Sales Tax Act 1956 Non submission of statutory forms 32.93 30.30 2015-16 and 2016-17 Deputy Commissioner
41 Central Sales Tax Act 1956 ITC disallowance 18.72 - 2015-16 Deputy Commissioner West Bengal
42 Entry Tax Act Telangana Entry tax 2.71 2.71 2012-13 2013-14 and 2014-15 Joint Commissioner Telangana
43 Central Sales Tax Act 1956 Non submission of Statutory form such as C/H/F/E-1 and export documents 18.42 9.21 2017-18 Deputy Commissioner Tamil Nadu
44 Central Sales Tax Act 1956 Non submission of Statutory Forms 4.84 4.84 2014-2015 Joint Commissioner Andhra Pradesh
45 Central Sales Tax Act 1956 Non submission of statutory form such as C 3.73 4.60 2014-15 Deputy Commissioner Commercial Taxes Gujarat
46 Maharashtra Value Added Tax Act 2002 ITC disallowance 12.96 1.19 2012-13 and 2014-15 Tribunal
47 Delhi Value Added Tax Act 2004 ITC disallowance 0.23 - 2015-16 Assistant Commissioner Delhi
48 Central Sales Tax Act 1956 Non submission of statutory form such as C/H/F/E-1 and export documents 111.58 10.98 2016-17 Additional Commissioner of Sales Tax
49 West Bengal VAT Act 2003 VAT assessment (Export/ SEZ sales) 18.85 2.27 2016-17 Additional Commissioner of Sales Tax
50 Central Sales Tax Act 1956 Non submission of statutory forms 51.95 13.02 2015-16 2016-17 and 2017-18 Deputy Commissioner Commercial Taxes Gujarat
51 Central Sales Tax Act 1956 Non submission of statutory forms 3.48 - 2015-16 Deputy Commissioner
52 Central Sales Tax Act 1956 Non submission of statutory forms 2.16 0.21 2017-18 Senior Joint Commissioner Pargana Circle
53 West Bengal VAT Act 2003 ITC disallowance 0.10 - 2017-18 Senior Joint Commissioner Pargana Circle
54 Central Sales Tax Act 1956 Non submission of statutory forms 1.37 1.37 2015-16 Appellate Deputy Commissioner Vijayawada -II Division
55 Central Sales Tax Act 1956 Non submission of Statutory Forms and ITC disallowance 12.51 6.08 2015-16 to 2017-18 Deputy Commissioner Appeal
56 Central Excise Act 1944 Non-inclusion of 15% profit margin in transfer pricing 5.13 - 1993-94 and 1994-95 Kolkata High Court
57 Central Excise Act 1944 Seizure of spares while being transported to railway station alleging transportation without Invoice 0.01 - 1996-97 Commissioner (Appeals) Allahabad
58 Central Excise Act 1944 Levy of penalty 0.02 - 2011-12 CESTAT – Chennai
59 Central Excise Act 1944 Refund of excise duty denied for cases where proof of Export submitted after payment of excise duty after 180 days of export 3.07 - 2012-13 CESTAT – Ahmedabad
60 Central Excise Act 1944 Duty on removal of inputs "as such" 2.37 0.18 2011-16 Additional Commissioner Sec-62 Noida
61 Central Excise Act 1944 Excise duty on freight charges recovered from customer to be included in assessable value 11.65 0.87 2011-16 Additional Commissioner Vadodara-II
62 Central Excise Act 1944 Short payment of duty 6.60 0.66 2016-17 Tribunal Ahmedabad
63 Finance Act 1994 Service tax on testing and technical analysis service 0.45 0.04 2011-12 and 2012-13 Dy. Commissioner CGST & Central Excise Allahabad
64 Finance Act 1994 Short payment of service tax on GTA 0.08* - 2009-10 High Court- Chennai
65 Central Excise Act 1944 CENVAT credit availed on SAP maintenance charges 0.21* - 2008-09 High Court- Chennai
66 Finance Act 1994 Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services. 0.65* - 2011-12 CESTAT – Chennai
67 Central Excise Act 1944 Rejection of refund claim towards CENVAT reversals as insisted during excise audit 4.44* - 2012-13 CESTAT – Chennai
68 Finance Act 1994 Non-payment of service tax on manpower supply services 0.62* - 2012-13 CESTAT – Chennai
69 Central Excise Act 1944 Irregular availment of CENVAT credit on certain ineligible service alleged 0.46* - 2010-11 CESTAT – Chennai
70 Finance Act 1994 Non-payment of service tax on amount paid for the use of trademark 23.18* - 2010-11 Hon'ble Supreme Court
71 Finance Act 1994 Non-payment of service tax on amount paid for the use of trademark 10.12* - 2011-12 Hon'ble Supreme Court
72 Finance Act 1994 Non-payment of service tax on amount paid for the use of trademark 6.74* - 2011-12 Hon'ble Supreme Court
73 Finance Act 1994 Non-payment of service tax on provision created in books/ short payment of service tax on royalty and technical knowhow payments made under intellectual property right services 5.92* - 2010-11 Hon'ble Supreme Court
74 The Custom Act 1962 Incorrect classification of relays under custom tariff heading 316.27 23.72 2014-15 2015-16 2016-17 2017-18 and 2018-19 CESTAT-Mumbai
75 Income Tax Act 1961 Disallowance on account of bad debts written off and various other disallowances 142.01 60.95 AY 2012-13 Commissioner of Income Tax (Appeals)
76 Income Tax Act 1961 Disallowance on account of bad debts written off and various other disallowances 104.31 - AY 2013-14 Commissioner of Income Tax (Appeals)
77 Income Tax Act 1961 Disallowance on account of transfer pricing related matters 280.85 28.09 AY 2017-18 Income Tax Appellate Tribunal (ITAT)

* Represents Company's share of ` 511.57 million of dues pendingin forums jointly with GE T&D India Limited (Refer note 33 of the accompanying Ind ASfinancial statements)

(viii) In our opinion and according to the information and explanationsgiven to us there are no such transactions which were not recorded in the books ofaccount earlier and have been surrendered or disclosed as income during the year in thetax assessments under the Income Tax Act 1961(43 of 1961). Accordingly the provisions ofclause 3(viii) of the Order are not applicable.

(ix) (a) In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declaredwillful defaulterby any bankor financial institution or other lender governmentor anygovernment authority.

(c) In our opinion and according to the information and explanationsgiven to us the Company did not have any term loans outstanding during the year.Accordingly the provisions of clause 3(ix)(c) of the Order are not applicable.

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us sincethe Company does not have subsidiaries associates or joint ventures and accordingly theprovisions of clause 3(ix)(e) of the Order are not applicable.

(f) According to the information and explanations given to us since the Company doesnot have subsidiaries associates or joint ventures andaccordingly the provisions ofclause 3(ix)(f) of the Order are not applicable.

(x) (a) In our opinion and according to the information and explanations given to usthe Company did not raise moneys by way of initial public offer or further public offer(including debt instruments) during the year. Accordingly the provisions of clause3(x)(a) of the Order are not applicable.

(b) During the year theCompany has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionally).Accordingly provisions of clause3(x)(b) of the order are not applicable.

(xi) (a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.

(b) No report under sub-section (12) of Section 143 of the Act has been filed in FormADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 (asamended) with the Central Government during the year and upto the date of this report.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year while determining the nature timing and extent of auditprocedures.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly the provisions of clause 3(xii)(a)-(c) of the Order are notapplicable.

(xiii) In our opinion and according to the information and explanations given to usalltransactions with the related parties are in compliance withSections 177 and 188 of Actwhere applicable and the requisite details have been disclosed in the financialstatements etc. as required by the applicable accounting standards.

(xiv) (a) In our opinion and based on our examination the Company has an internalaudit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

(xv) In our opinion and according to the information and explanations given to ustheCompany has not entered into any non-cash transactions with the directors or personsconnected with themcovered under Section 192 of the Act.

Accordingly provisions of clause3(xv) of the order are not applicable.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the RBIAct 1934. Accordingly the provisions of clause 3(xvi)(a) of the Order are not applicableto the Company.

(b) The Company has not conductedany Non-Banking Financial or Housing Financeactivities without a valid Certificate of Registration from the RBI as per the RBI Act1934.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 the provisions of the Clause 3(xvi)

(c) of the Order are not applicable to the Company.

(d) The Group does not have more than one CICs which are part of the Group.Accordingly the provisions of clause 3(xvi)(d) of the order are not applicable.

(xvii) The Company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

Accordingly provisions of clause3(xvii) of the order are not applicable.

(xviii) There has been no resignation of the statutory auditors during theyear.Accordingly the provisions of the Clause

(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 itsliabilities 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. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

(xx) The provisions of Section 135 of the Act are not applicable to the Company.Accordingly provisions of clause 3 (xx) (a) and (b) of the order are not applicable.

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590
UDIN No.: 22509590AJJYHX3641
Place: Gurugram
Date: May 21 2022

Annexure B to the Independent Auditor's Report of even date to themembers of Schneider Electric Infrastructure Limited on the Ind AS financial statementsfor the year ended March 31 2022

Independent Auditor's report on the Internal Financial Controlswith reference to the Ind AS financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to theInd AS financial statements of Schneider Electric Infrastructure Limited ("theCompany") as of March 312022 in conjunction with our audit of the Ind AS financialstatements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal financial control withreference to the Ind AS financial statements 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 (ICAI). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company's businessincluding adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to the Ind AS financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting(the "Guidance Note")and theStandards on Auditing issued by the Institute of Chartered Accountants of India("the ICAI")and deemed to be prescribed under section 143(10) of the Act to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit toobtain reasonable assurance about whether adequate internal financial controlswith reference to the Ind AS financial statements were established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy ofthe internal financial controls system with reference to the Ind ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to the Ind AS financial statements included obtaining anunderstanding of internal financial controls with reference to the Ind AS financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to the Ind AS financial statements.

Meaning of Internal Financial Controls with reference to FinancialStatements

A Company's internal financial controls with reference to the IndAS financial statements is a process designed to providereasonable assurance regarding thereliability of financial reporting and the preparation ofthe Ind AS financial statementsfor external purposes in accordance with generally accepted accountingprinciples. ACompany's internal financial controls with reference to IND AS financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detailaccurately and fairly reflect the transactions and dispositionsof the assets of the Company; (2)provide reasonable assurance that transactions arerecorded as necessary to permit preparationof the Ind AS financial statements inaccordance with generally accepted accounting principles and thatreceipts andexpenditures of the company are being made only in accordance withauthorisations ofmanagement and directors of the company; and (3) provide reasonableassurance regardingprevention or timely detection of unauthorised acquisition use ordisposition of theCompany's assets that could have a material effect on the Ind AS financialstatements.

Inherent Limitations of Internal Financial Controls with reference toIND AS Financial Statements

Because of the inherent limitations of internal financial controls withreference to the Ind AS financial statements includingthe possibility of collusion orimproper management override of controls material misstatementsdue to error or fraud mayoccur and not be detected. Also projections of any evaluation of theinternal financialcontrols with reference to the Ind ASfinancial statements to future periods are subject tothe risk that the internal financial controls with reference to the Ind AS financialstatements may become inadequate because of changes inconditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls systemwith reference to the Ind AS financial statements andsuch internal financial controls with reference to Ind AS financial statements wereoperating effectively as atMarch 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590
UDIN No.: 22509590AJJYHX3641
Place: Gurugram
Date: May 21 2022

.