To The Unitholders of Data Infrastructure Trust (formerly known as Tower Infrastructure
Trust)
Report on the Audit of Standalone Financial Statements
OPINION
We have audited the accompanying standalone financial statements of Data Infrastructure
Trust (formerly known as Tower Infrastructure Trust)("the Trust"), which
comprise the Standalone Balance Sheet as at March 31, 2023, Standalone Statement of
Profit and Loss including Statement of Other Comprehensive Income, Statement of Changes
in Unitholders Equity, Standalone Statement of Cash Flows for the year then ended,
Standalone Statement of Net Assets at Fair Value as at March 31, 2023 and Standalone
Statement of Total Returns at Fair Value and Net Distributable Cash Flows for the year
then ended and a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according 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 Trusts)
Regulations, 2014 as amended from time to time including any guidelines and circulars
issued thereunder read with the SEBI circular number CIR/IMD/DF/114/2016, dated October
20, 2016 (together referred to as the "InvIT Regulations") in the manner so
required and give a true and fair view in conformity with the Indian Accounting Standards
as defined in Rule 2(1)(a) of the
Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other accounting
principles generally accepted in India, to the extent not inconsistent with the InvIT
Regulations, of the state of affairs of the Trust as at March 31, 2023, and its profit
including other comprehensive income, its changes in unitholders equity, its cash flows
for the year ended March 31, 2023, its net assets at fair value as at March 31, 2023, its
total returns at fair value and net distributable cash flows for the year ended on that
date and other financial information of the Trust.
BASIS FOR OPINION
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India
(ICAI). Our responsibilities under those Standards are further described in the Auditors
Responsibility 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 these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by
us is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
EMPHASIS OF MATTER
We draw attention to Note 2.2 (i) which describes the presentation of "Unit
Capital" as "Equity" to comply with InvIT Regulations.
Our opinion is not modified in respect of this matter.
KEY AUDIT MATTERS
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 year.
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. We have determined the matters described below to be
the key audit matters to be communicated in our report.
Sr.No. Key Audit Matter |
Auditors Response |
1 Fair Value of Net Assets of the Trust: |
Principal audit procedures performed among others: |
| In accordance with Invit Regulations, the Trust discloses Statement of
Net Assets at Fair Value which requires fair valuation of net assets. |
Our audit procedures relating to the determination of the fair value of
net assets included the following, among others: |
| The fair value of net assets of the Trust is determined by an independent
valuer using discounted cash flow method. |
• Tested design, implementation and operating effectiveness of the
internal control related to determination of fair value of assets and review of Statement
of Net Assets at Fair Value |
| While there are several assumptions that are required to determine the
fair value of net assets of the Trust, assumptions with the highest degree of estimate,
subjectivity and impact on fair value are the valuation methodology used in determining
the fair value, future cashflows estimated by the Management, discount rate and terminal
growth rate. Auditing this assumption required a high degree of auditor judgment as the
estimates made by the Management and the independent external valuer contain significant
measurement uncertainty. |
• Reviewed the independent external valuers valuation reports to
obtain an understanding of the source of information used by the independent external
valuer in determining the fair valuation. • Tested the reasonableness of the future
cash flows shared by Management with external valuer by comparing it to source information
used in preparing the forecasts and with historical forecasts and actual performance to
support any significant expected future changes to the business. |
| Refer note 29 (A) Standalone Statement of Net assets at fair value in the
standalone financial statements. |
• Evaluated the Trusts independent external valuers competence to
perform the valuation. |
|
• Involved our internal fair valuation specialists to independently
determine fair value of the Net Assets of the Trust as at the balance sheet date, which
included assessment of reasonableness of the discount rate and terminal growth rate used
by Management in valuation and the methodology to determine the fair value. |
|
• Compared the fair value determined by the Trust with that
determined by our internal fair valuation specialist to assess the reasonableness of the
fair valuation. |
|
• Tested the arithmetical accuracy of computation in the Standalone
Statement of Net Assets at Fair Value and evaluated adequacy of disclosures in the
standalone financial statements as per requirement of Invit Regulation. |
Information Other than the Financial Statements and Auditors Report Thereon
• Brookfield India Infrastructure Manager Private Limited (‘Investment
Manager) acting in its capacity as an Investment
Manager of the Trust is responsible for the other information. The other information
comprises the information and disclosures included in the Annual Report but does not
include the standalone financial statements, consolidated financial statements and our
auditors report thereon.
• 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 and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
• If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Management of Investment Manager ("the Management"), is responsible for
the preparation of these standalone financial statements that give a true and fair view of
the financial position, financial performance including other comprehensive income,
changes in unitholders equity, cash flows for the year ended March 31, 2023, net assets
at fair value as at March 31, 2023, total returns at fair value and net distributable cash
flows for the year ended on that date of the Trust in accordance with the InvIT
Regulations, the Indian Accounting Standards as defined in Rule 2(1)(a) of the Companies
(Indian Accounting Standards) Rules, 2015 (as amended) and other accounting principles
generally accepted in India, to the extent not inconsistent with InvIT Regulations.
This responsibility also includes maintenance of adequate accounting records for
safeguarding 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 which
have been used for the purpose of preparation of the financial statements by the
Investment Manager of the Trust, as aforesaid.
In preparing the standalone financial statements, the management 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 Investment Manager either intends to liquidate the Trust or to
cease operations, or has no realistic alternative but to do so.
The Investment Managers Board of Directors is also responsible for overseeing the
Trusts financial reporting process.
Auditors Responsibility for the Audit of the Standalone Financial Statements
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 SAs 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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism 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 financial 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 the effectiveness of the Trusts internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of Managements use of the going concern basis
of accounting 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.
• 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, that we identify
during our audit.
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.
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 year 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.
Report on Other Legal and Regulatory Requirements
Based on our audit and as required by InvIT Regulations, we report that:
a) We have obtained all the information and explanations which, to the best of our
knowledge and belief were necessary for the purpose of our audit; b) The Standalone
Balance sheet, and Standalone Statement of Profit and Loss including Other Comprehensive
Income,
Statement of Changes in Unitholders Equity, Standalone Statement of Cash Flows, dealt
with by this Report are in agreement with the relevant books of account of the Trust; c)
In our opinion, the aforesaid standalone financial statements comply with the Indian
Accounting Standards as defined in Rule 2(1)(a) of the Companies (Indian Accounting
Standards) Rules, 2015 (as amended), and other accounting principles generally accepted in
India, to the extent not inconsistent with the InvIT Regulations.
|
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
|
(Firms Registration No. 117366W/ W100018) |
|
Mohammed Bengali |
|
Partner |
| Place: Mumbai |
Membership No. 105828 |
| Date: May 26, 2023 |
UDIN: 23105828BGWPIL3960 |
+91-9892691696
