Power Grid Corporation of India Ltd Directors 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 Grid Corporation of India Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the financial statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, the profit & total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. 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 Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, 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 we have obtained is sufficient and appropriate to 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 financial statements:

- In respect of provisional recognition of revenue from transmission assets for which final 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 most significance in our audit of the standalone financial statements for the year ended 31 March 2022. 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 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 Companys 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 companys 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 Companys 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 companys assessment of contingent liabilities is supported by the facts of the matter, Companys 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 Auditors Report Thereon

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the standalone financial statements and our Auditors Report thereon. The other information as identified above 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 during the course of our audit or otherwise appears to be materially misstated.

When we read those documents including annexures, if any thereon, if we conclude that there is a material misstatement therein, we shall communicate the matter to those charged with the governance.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to 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 equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safe guardingthe assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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.

In preparing the standalone financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to dose.

The Board of Directors are responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities 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 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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place 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 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 Companys 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 Company 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 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 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, including any significant deficiencies in internal control 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 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.

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 best of 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 the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the IndAS specified 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, 2015, issued by the Ministry of Corporate Affairs, provisions of Section 164(2) of the Act regarding disqualification of Directors, are not applicable to the Company;

(f) With respect to the adequacy of the internal financial controls over financial reporting with reference to standalone financial statements of the company and the operating effectiveness of such controls, refer to our separate report in Annexure 1. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to Standalone financial statements.

(g) Pursuant to Notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of Section 197 of the Companies Act, 2013, are not applicable to the Company, being a Government Company; and

(h) With respect to the other matters to be included in the Auditors 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 according to the explanations given to us:

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

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

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

iv) (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the 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 the Company 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 Company during 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 the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

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 (Auditors Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in Annexure 3a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent 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 Power Grid Corporation of India Limited, on the standalone Ind AS financial statements for the year ended 31March 2022

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting with reference to Ind AS financial statements of the company as at 31 March 2022 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls with reference to Ind AS financial statements that were operating effectively for ensuring the orderly and efficient conduct of business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting with reference to Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Control over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial 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 and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting with reference to Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting with reference to Ind AS financial statements included obtaining an understanding of internal financial controls over financial reporting with reference to Ind AS financial statements, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting with reference to Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to Ind AS Financial Statements

A companys internal financial control over financial reporting with reference to Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting with reference to Ind AS financial statements includes those policies and procedures that:

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

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

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or dispositions of the Companys assets that could have a material effect on the standalone Ind AS financial statements.

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

Because of the inherent limitations of internal financial controls over financial reporting with reference to Ind AS financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to Ind AS financial statements to future periods are subject to the risk that the internal financial controls over financial reporting with reference to Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting with reference to Ind AS financial statements and such internal financial controls over financial reporting with reference to Ind AS financial statements were operating effectively as at 31 March 2022, based on the internal financial controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered 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 Power Grid Corporation of India Limited, on the standalone Ind AS financial statements for the 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 companys 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 companys 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 Power Grid Corporation of India Limited, on the standalone Ind AS financial statements for the year ended 31 March 2022, we report that:

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

(B) The Company has generally maintained proper records, showing full particulars of intangible assets.

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

c) With respect to immovable properties disclosed in the financial statements included in property, plant and equipment, according to the information and explanations given to us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds of such immovable properties are held in 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 Honble High court of Chennai, Sole Arbitrator has been appointed and an award has been passed. Aggrieved by the award, both the parties have approached Honble High Court for compensation award. Honble. 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 of Use assets) and intangible assets during the year. Accordingly, the provisions of clause 3(i)(d) of the Order are not applicable.

e) According to the information and explanations given to us, no proceedings have been initiated 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 the year. In our opinion, frequency of verification, coverage & procedure adopted by the company for verification is reasonable having regard to the size of the Company and nature of its business. No material discrepancies of 10% or more in the aggregate for each class of inventory between physical inventory and book records were noticed on physical verification.

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

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

(A) the aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances in the nature of loan or guarantees or security 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 any Subsidiaries, Joint Ventures and Associates during the year.

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

(b) In our opinion and according to information and explanations given to us, the investments made, guarantees provided and the terms and conditions of the grant of all loans and guarantees provided are not prejudicial to the companys interest.

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

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

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

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

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

(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposit from the public & no amounts has been deemed to be deposits in accordance with the provisions of the sections 73 to 76 or any other relevant provisions of the Act, and the rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable to the company.

(vi) We have broadly reviewed the cost records maintained by the company specified by the Central Government under sub section (1) of section 148 of the Companies Act, 2013, in respect of Transmission & Telecom Operations of the Company and we are of the opinion that prima facie the prescribed records have been made and maintained. However, we have not made detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Income Tax, Goods and Services Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other statutory dues applicable to the Company and that there are no undisputed statutory dues outstanding as at 31 March 2022 for a period of more than six months from the date they became payable. As informed, provisions of the Employees State Insurance Act are not applicable to the Company.

b) According to information and explanations given to us, there are no statutory dues referred to in sub- clause (a) have not been deposited on account of dispute. However, the following 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 Honble 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 Workers Welfare (BOCW) Cess Act, 1996 Building & Other Construction Worker Cess 3.71 For F.Y. 2007-08 Honble High Court Himachal Pradesh, Shimla
Delhi Municipal Corporation Act, 1957 Property Tax 201.87 From F.Y. 2004-05- to F.Y. 2013-14 Honble 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 us, the Company has not recorded in the books of account any transaction which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

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

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

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

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

(e) On an overall examination of the financial statements of the Company, we report that the Company has taken funds from the following entities on account of or to meet the obligations 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 1,151.71 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 1,450.64 Powergrid Southern Interconnector Transmission System Limited Subsidiary Capex
Term Loans Bank 0.41 42.73 1,200.68 Powergrid Southern Interconnector Transmission System Limited Subsidiary Capex
Bonds Bond Holders 9.11 19.44 1,342.65 Powergrid Medinipur Jeerat Transmission System Limited Subsidiary Capex
Term Loans Bank 15.26 1,004.78 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 held in its subsidiaries, joint ventures or associate companies.

(x)(a) The company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

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

(xi) (a) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company, no case of material fraud by the Company or on the Company has been noticed or reported during the year.

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

(c) we have taken into consideration the Whistle blower complaints received by the Company 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 with sections 177 and 188 of the Act, where applicable and the details have been disclosed in the standalone financial statements as required by the applicable Indian Accounting Standards.

(xiv) (a) According to the information and explanations given to us and based on our examination of the records of the company, the company has an internal audit system commensurate with the size and nature of its business.

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

(xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions 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 us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause (xvi)(a) of the Order are not applicable to the Company.

(b) According to the information and explanations provided to us, the Company has not conducted any NonBanking Financial or Housing Finance activities therefore the Company is not 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 regulations made by the Reserve Bank of India. Accordingly, provisions of clause 3(xvi)(c) of the Order are not applicable.

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

(xvii) Based on our examination of the records of the company, the company has not incurred any cash losses in the current Financial Year and in the immediately preceding Financial 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 the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, 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 audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

xx) According to the information and explanations given to us and based on our examination of the records, the Company has spent the amount required as per section 135(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