Capital Infra Trust Auditor Reports

To the Unitholders of Capital Infra Trust (formerly known as National Infrastructure Trust)

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Capital Infra Trust (formerly known as

National Infrastructure Trust) (‘the Trust), which comprise the Standalone Balance Sheet as at 31 March 2025, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash Flows and the Standalone Statement of Changes in Unit Holders Equity for the year then ended, the Standalone Statement of Net Assets at Fair Value as at 31 March 2025, the Standalone Statement of Total Returns at Fair Value and the Standalone Statement of Net Distributable Cash

Flows for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information.

2. Inouropinionandtothebestofourinformationandaccording to the explanations given to us, the aforesaid standalone financial statements give the information required by the Securities and Exchange Board of India (Infrastructure Investment Trust) Regulation, 2014 as amended from time to time (SEBI Regulations) including SEBI Master Circular SEBI/HO/DDHS-PoD-2/P/CIR/2024/44 dated 15 May 2024 (as amended) (hereinafter referred to as SEBI Master Circular) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards as defined in the Rule 2(1)(a) of the companies (Indian

Accounting Standards) Rules, 2015 (as amended) (‘Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Trust as at 31 March 2025, and its loss (including other comprehensive income), its cash flows and the changes in unitholders equity for the year ended on that date, the net assets at fair value as at 31 March 2025, the total returns at fair value and net distributable cash flows for the year ended as on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing and other pronouncements issued by the Institute of Chartered Accountants of India (‘the ICAI).

Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Trust in accordance with the Code of Ethics issued by the ICAI, and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter	How our audit addressed the key audit matter
A. Impairment assessment of non-current investments in and loans given to subsidiaries	Our audit procedures included, but were not limited to, the following:
Refer note 3(f) for material accounting policy information and note 3, 4, 9 and note 24 for the related disclosures in the standalone financial statements .	a) Obtained an understanding of the Trusts policies and procedures to identify impairment indicators for investments and loans, and process for fair valuation of investments and loans;
The Trust has aggregate investment in equity instruments of subsidiaries of 12,067.69 millions, net of provisions for impairment of 4,426.91 millions, carried at cost in accordance with Ind AS 27, Separate Financial Statements (‘Ind AS 27), and loans given to subsidiaries amounting to 34,414.46 millions outstanding as at 31 March 2025 carried at amortised cost in accordance with Ind AS 109, Financial Instruments (‘Ind AS 109). The Trust has assessed impairment indicators of these investments and loans since recoverability of the investments and loans is significantly dependent upon valuations of the assets held and cash flow projections of these investee companies.	b) Evaluated the design of key controls implemented for identification of impairment indicators, and for fair valuation of investments and loans including controls around cash flow projections;
In case of existence of impairment indicators, the recoverable amount of the aforesaid investments in and loans given to subsidiaries has been determined by the management using discounted cash flow (‘DCF) valuation method. The key assumptions underpinning managements assessment of the recoverable amounts includes but are not limited to projections of future cash flows , the discount rates, inflation rates and tax rates amongst others which involves estimation and significant management judgment.	c) Verified underlying supporting documents for all significant investments made and loans given during the year to ensure that the transaction have been accurately recorded in the standalone financial statements in accordance with Ind AS 27 and Ind AS 109, as applicable;
Changes to these assumptions could lead to material changes in estimated recoverable amounts, resulting in impairment of the carrying value of such assets.	d) Assessed the objectivity, capabilities and competency of the managements independent valuation experts involved for performing required valuations to estimate the recoverable amount of the investment in and loans given to subsidiaries;
Accordingly, considering the materiality, complexity and significance of estimates and judgement involved, impairment assessment of investments in and loans given to subsidiaries has been considered as a key audit matter for the current year audit.	e) Involved an auditors valuation expert to assess the appropriateness of the valuation methodology and reasonableness of assumptions used by managements valuation expert in determining the recoverable amount such as weighted average cost of capital (in particular, the underlying parameters such as risk-free return, market return, risk premium and beta);
	f) Assessed the reasonableness of the key assumptions and appropriateness of the key drivers of the cash flow forecasts as approved by the Investment Manager of the Trust considered in aforesaid valuations (in particular, cash inflow projections, routine maintenance projections and recurring expenses amongst other inputs);
	g) Discussed and evaluated, potential changes in key drivers as compared to previous year / actual performance, with management to test consistency and historical accuracy of such assumptions used in cash flow forecasts;
	h) Evaluated managements assumptions by performing sensitivity analysis around the key assumptions to ascertain estimation uncertainty involved;
	i) Tested arithmetic accuracy of cash flows projections and sensitivity analysis; and
	j) Evaluated the appropriateness and adequacy of disclosures made in the standalone financial statements in accordance with the requirement of the applicable accounting standards.

 

B. Computation and disclosures in Statement of Net	Our audit procedures included, but were not limited to, the following:
Assets at Fair Value and Statement of Total Returns at Fair Value ("the Statements") as per SEBI Regulations
Refer the statements disclosed in the accompanying standalone financial statements pursuant to SEBI Master Circular SEBI/HO/ DDHS-PoD-2/P/CIR/2024/44 dated 15 May 2024 (as amended) (‘SEBI Master Circular) issued under the SEBI Regulations, which requires fair valuation of the net assets and total returns of the Trust carried out by an independent valuer appointed by the Trust.	a) Obtained an understanding of regulatory requirements by reading the requirements of SEBI Regulations along with the relevant SEBI Master circular, pursuant to which the Statements are prepared by the Investment Manager of the Trust;
For the above purpose, fair value is determined by the management using discounted cash flow (‘DCF) valuation method which involves significant management judgement in respect of various estimates used as inputs such as determination of future cash flows, discount rates, inflation rates, tax rates, amongst others. The determination of fair value involves judgement due to inherent high estimation uncertainty in the underlying assumptions.	b) Obtained an understanding of the Trusts policies and procedures adopted by the Investment Manager of the Trust for computation and disclosure of the Statements;
Considering the importance of the disclosure required under the SEBI Regulations to the users of the standalone financial statements, significant management judgement involved in determining the fair value of the assets of the Trust, the aforesaid computation and disclosure has been considered as a key audit matter for the current year audit.	c) Assessed the objectivity, capabilities and competency of the managements valuation experts involved for performing required valuations to estimate the fair value;
	d) Involved an auditors valuation expert to assess the appropriateness of the valuation methodology and reasonableness of assumptions applied by managements expert in determining the fair value such as weighted average cost of capital (in particular, the underlying parameters such as risk-free return, market return, risk premium and beta);
	e) Assessed the reasonableness of the key assumptions and appropriateness of the key drivers of the cash flow forecasts as approved by the Investment Manager of the Trust considered in aforesaid valuations (in particular, cash inflow projections, routine maintenance projections and recurring expenses amongst other inputs);
	f) Discussed and evaluated, potential changes in key drivers as compared to previous year / actual performance, with management to test consistency and historical accuracy of such assumptions used in cash flow forecasts;
	g) Evaluated managements assumptions by performing sensitivity analysis around the key assumptions to ascertain estimation uncertainty involved;
	h) Tested arithmetic accuracy of cash flows projections and sensitivity analysis; and
	i) Evaluated the appropriateness and adequacy of disclosures for compliance with the relevant requirements of SEBI regulations read with SEBI Master Circular.

Information other than the Standalone Financial Statements and Auditors Report thereon

6. The Board of Directors of the Investment Manager of the Trust are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditors report thereon. The

Annual Report is expected to be made available to us after the date of this auditors report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Investment Manager and Those Charged with Governance for the Standalone Financial Statements

7. The accompanying standalone financial statements have been approved by the Board of Directors of the Investment Manager of the Trust. The Investment Manager of the Trust is responsible for the matters with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows, changes in unitholders equity, net assets at fair value, total returns at fair value and net distributable cash flows of the Trust in accordance with the accounting principles generally accepted in India including the Ind AS and the SEBI Regulations read with the SEBI Master Circular. This responsibility also includes maintenance of adequate accounting records for safeguarding of the assets of the Trust and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

8. In preparing the Standalone financial statements, the

Board of Directors of the Investment Manager of the Trust is responsible for assessing the Trusts ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Investment Manager of the Trust either intend to liquidate the Trust or to cease operations, or has no realistic alternative but to do so.

9. The Board of Directors of the Investment Manager of the Trust is also responsible for overseeing the Trusts financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing, issued by the ICAI, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

11. As part of an audit in accordance with Standards on Auditing issued by the ICAI we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Trust has in place adequate internal financial controls with reference to standalone financial statements and the operating effectiveness of such controls;

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Investment Manager of the Trust;

Conclude on the appropriateness of use of the going concern basis of accounting by the Board of Directors of the Investment Manager of the Trust and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trusts ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the

Trust to cease to continue as a going concern; and

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

12. We communicate with those charged with governance of the Investment Manager of the Trust regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

Other Matter

15. The financial information of the Trust for the period from 25 September 2023 to 31 March 2024 included as comparative financial information in the accompanying standalone financial statement, is based on the financial information of the Trust approved by the Board of Directors of Investment Manager of the Trust, which has not been subjected to audit or review. Our opinion is not modified with respect to this matter.

Report on Other Legal and Regulatory Requirements

16. Based on our audit, and as required by the SEBI

Regulations we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements; b) the Standalone Balance Sheet and the Standalone Statement of Profit and Loss (including Other Comprehensive Income) are in agreement with the books of account of the Trust; and a) in our opinion, the aforesaid standalone financial statements comply with Ind AS.

For Walker Chandiok & Co LLP

Chartered Accountants

Firms Registration No.: 001076N/N500013

Manish Agrawal

Partner

Membership No.: 507000

UDIN: 25507000BMMKQP1584

Place: Gurugram

Date: 28 May 2025