Power Grid Corporation of India Ltd Auditor Reports

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 March 31, 2026, the Statement Profitand Loss, the Statement of 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 Standalone financial statements including material 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 Indian Accounting Standards prescribed under section 133 of the Act read with 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 Company as at March 31, 2026, the profit and 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) specifiedunder 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 ethical 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.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of Standalone Financial Statements for the year ended March 31, 2026. 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. Key Audit Matters No.	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 Central Electricity Regulatory Commission "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) of Standalone Financial Statements)	• 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.
	• Assessed the relevant disclosures made within the standalone financial statements as per the requirements of relevant accounting standards and applicable regulations, wherever considered necessary.
2 Reassessment of Deferred Tax Liability (DTL) and Deferred Tax Assets relating to Minimum Alternate Tax ("MAT") credit entitlement	Our audit approach involved:
During the year, pursuant to the amendments introduced through the Finance Act, 2026 and the relevant provisions of the Income Tax Act, 2025, the Company in compliance with Ind AS 12 has reassessed and remeasured its Deferred Tax Liabilities by applying the enacted future tax rates. The Company has also reassessed the MAT credit entitlement eligible for set off against future tax liabilities under Income Tax Act 2025 and recognized the corresponding Deferred Tax Asset for the same during the year.	• Evaluating the amendments introduced through the Finance Act, 2026 and relevant provisions of the Income Tax Act, 2025 relating to availability and utilisation of MAT credit under the new tax regime.
Consequent to the remeasurement of Deferred Tax Liability and Deferred Tax Asset including MAT Credit Entitlement, corresponding impact has been provided in Deferred Regulatory balances of beneficiaries as per CERC Tariff Regulations. 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.	• Inspected external expert opinions, wherever considered necessary, and other evidence to evaluate the managements assessment in respect of impact of change in Act.
(Refer Note No. 26 of Standalone Financial Statements.)	• Assessed the related forecasts of future taxable profits, evaluated the reasonableness and consistency of the considerations/assumptions underlying the preparation of these forecasts.
	• Evaluated adequacy and appropriateness of related disclosures in the 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 procedures:
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.	• Reviewed the current status and material developments of legal matters.
We identified the above area as Key Audit Matter in view of associated uncertainty relating to the outcome of these matters.	• Reviewed the legal and other professional expenses and enquired with the management for recent developments and the status of the material litigations.
(Refer Note No. 58 of Standalone Financial Statements)	• Performed our assessment on a test basis on the underlying calculations supporting the contingent liabilities/other significant litigations disclosed in the Standalone Financial Statements.
	• Examined recent orders from competent authorities and/ or communication received from various authorities, judicial forums and follow-up action thereon.
	• Assessed the relevant disclosures made within the standalone financial statements as per the requirements of relevant accounting standards.

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 and Sustainability 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.

Responsibilities of Management and Those Charged with Governance 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, performance including other comprehensive income, changes in equity and cash flows of the Company in financial accordance with the 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 safeguarding the 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 do so.

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 basisof 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:

a 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.

a Obtain an understanding of internal 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 financialcontrols system in place and the operating effectiveness of such controls.

a Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

a 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 to continue as a going concern. If we conclude that a materialcastsignificant 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.

a 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 auditandsignificantaudit 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.

Other Matter

The Standalone Financial Statements includes comparative figures for the corresponding year ended March 31, 2025, which have been audited by M/s S. Ramanand Aiyar & Co., M/s Sagar & Associates, M/s G. D. Apte & Co. and M/s Jain Paras Bilala & Co., where they have expressed an unmodified opinion vide their report dated May 19, 2025 on such Standalone financial statements.

Our opinion is not modified in respect of these matters.

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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account; (d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specifiedunder 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.

(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 financialposition in its Standalone its Financial Statements Refer Note 58 to the Standalone financial statements. ii) The Company was not required to recognise a provision as at March 31, 2026 under the applicable law or accounting standards, as it does not have any material foreseeable losses 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, to the extent it applies to payment of dividend.

(b) Interim dividends 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. vi) Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026 which have the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software systems. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

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 ‘3 a statement on the matters specified in 3 and 4 of the Order.

Annexure ‘1 to the Independent Auditors Report

As referred to in paragraph 1 (f) of "Report on Other Legal and Regulatory Requirements" section of our Independent Auditors Report of even date to the members of the Power Grid Corporation of India Limited ("the Company"), on the Standalone Financial Statements for the year ended March 31, 2026.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") controlsoverfinancial to Standalone Financial Wehaveaudited the internal financial Statements of the Company as of March 31, 2026 in conjunction with our audit of the Standalone 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 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 Standalone 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 Standalone 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 Standalone 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 Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls over financial reporting with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls over financial reporting with reference to Standalone 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 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 theCompanysinternalfinancialcontrols system over financial reporting with reference to Standalone Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting with Reference to Standalone Financial Statements

A companys internal financial control over financial reporting with reference to Standalone 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 Standalone 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 Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting with Reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financial reporting with reference to Standalone 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 controlsoverfinancialwith reference to Standalone Financial Statements to future periods are financial subject to the risk that the internal financialcontrols over financial reporting with reference to Standalone 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 financialcontrols system over financial to Standalone Financial Statements and such internal financialcontrols over financial reporting with reference to Standalone Financial Statements were operating effectively as at 31 March 2026, 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.

Annexure ‘2 to the Auditors Report

As referred to in paragraph 2 of "Report on Other Legal and Regulatory Requirements" section of our Independent Auditors Report of even date to the members of the Power Grid Corporation of India Limited ("the Company") on the standalone financial statements for the year ended March 31, 2026.

Part I - Directions

S. No.	Directions	Auditors Comments
1.	Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements	All the investments made by the Company through Trusts for Post-retirement benefits of the employees have been valued appropriately in accordance with the applicable financial reporting framework and applicable regulations. The valuation approach and valuation methodologies applied by the company for these investments is appropriate.
2.	Whether the Company has a system in place to process all the accounting transactions through IT system? If yes, whether review of this system andcontrols thataresignificant to companys financial reporting to the Companies, financial reporting process as well as cyber security has been done by Information Security Auditing Organisations empaneled by Cert-In at a minimum frequency of once in a year and material discrepancies found, if any, have been suitably reported? The implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications may also be reported	The Company is having ERP system (SAP) in place for processing all accounting transactions. The review of the system and controls that are significant process as well as cyber security has been done by Information Security Auditing Organisations empaneled by Cert-In once a year and no material discrepancies are found. Based on our verification, no accounting transaction is being recorded/ processed other than through the ERP system in place.
3.	Whether funds (grants/ subsidy etc.) received/ receivable for specific schemes from Central/State Government or its agencies were properly accounted for as per the applicable accounting standards or norms and whether the received funds were utilized as per its terms and conditions? Whether accounting of interest earned on grants received has been done as per terms and conditions of the Grant. List the cases of deviation.	The company has properly accounted for funds received/receivable for specific scheme from Central/State Government or its agencies as per the applicable accounting standards or norms. The received funds were utilized as per its terms and conditions. Further, accounting of interest earned on grants received has been done as per terms and conditions of the grant. Further, no deviations were noticed by us.
4.	Whether the Company has identified the key Risk areas? If yes, whether the Company has formulated any Risk Management Policy to mitigate these risks? If yes, (a) whether the Risk Management Policy has been formulated considering global best practices? (b) whether the Company has identified its data assets and whether it has been valued appropriately?	The company has identified the key risk areas and has formulated a risk management policy to mitigate these risks. The said policy has been duly approved by the Board of Directors and, as represented by management, the same is stated to be based on global best practices, namely COSO framework. The company has not identified any data assets in accordance with the applicable financial reporting framework and consequently these have not been subject to valuation.
5.	Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable? If not. the cases of deviation may be highlighted.	Based on the information and explanations given to us and audit procedures carried out by us, the company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable except as mentioned below: 1. Regulation 17(1), 18(1), 19(1)/(2), 20(2)/(2A), 21(2) of the SEBI (LODR) Regulations, 2015- regarding non-compliance of composition of Board and Board committees with respect to requisite number of independent directors and women director.

Part II - Sub-directions

S. No.	Directions	Auditors Comments
1.	Verify whether the existing regulatory assets of the Company are supported by the tariff orders of the Electricity Regulatory Commission	Based on the information and explanations given to us, there are no regulatory assets of the company that are supported by the tariff orders of the Central Electricity Regulatory Commission (CERC) that are
2.	Verify whether the revenue in respect of such assets has been recognised by the Company on the basis of tariff orders issued by the Electricity Regulatory Commission	recognized in the financial statements. The Company has recognized Regulatory Deferral Accounts in financial statements in accordance with Ind AS 114 "Regulatory Deferral Accounts" and not as per the tariff orders by CERC.
3.	State the impact of recognition/ existence of regulatory assets in the absence of tariff orders, if any
4.	State the impact of delayed/ non-recovery of regulatory assets on the financial statements of the Company
5.	Examine and report upon the accuracy/ adequacy of accounting treatment/ related disclosures in this regard

Annexure ‘3 to the Independent Auditors Report

As referred to in paragraph 3 of "Report on Other Legal and Regulatory Requirements" section of our Independent Auditors Report of even date to the members of the Power Grid Corporation of India Limited, on the Standalone Financial Statements for the year ended March 31, 2026.

In terms of the information and explanations sought by us and given by the company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state 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 and 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/ lease agreement for land provided to us, we report that, the title deeds of such immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) 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 ( 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
Rourkela	0.26	SAIL-Rourkela	No	25-07-2020	The Original Tripartite sub Lease agreement between Govt. of Odisha, Rourkela Steel Plant & POWERGRID has expired. The same is under process of renewal.
Durgapur	19.66	SAIL-Durgapur	No	01-05-2017	The original Lease agreement with SAIL was expired and the same is under process for renewal.
Jamshedpur Substation Village - Ramchandrapur Seraikela, Kharwsawan Jharkhand	1.46	Forest Department, Government of Jharkhand	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 Dwarka	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
400/220 kV GIS Pooling Station Chamba,Village Mohal Rajera Tehsil & Distt. Chamba (HP)	12.36	HP Govt	No	19-10-2011	Subject land is Govt./Forest Land in record of HP Govt. As per GOI guidelines, Forest Land diverted to Non-Forestry purpose under Forest (Conservation) Act, 1980 will be having legal status as "Forest" even after diversion.
Srinagar Leh Transmission System (SLTS) Kargil Substation (UT of Ladakh)	-	UT of Ladakh	No	31-10-2019	Govt of India (MOP) has declared Srinagar Leh Transmission System (SLTS) project as Interstate Transmission System Projects (ISTS) and the same has been transferred to POWERGRID.
SLTS_Drass Substation (UT of	-	UT of Ladakh	No	31-10-2019	Land in UT of Ladakh (Erstwhile
Ladakh) SLTS_Leh Substation (UT of Ladakh) SLTS_Khalsti Substation (UT of Ladakh)	- -	UT of Ladakh UT of Ladakh	No No	31-10-2019 31-10-2019	State of Jammu & Kashmir) is acquired by State Government under state land acquisition act. As per law, the UT/state government remains the owner of the land acquired, and the company is only given possession for specific use.
Wagoora_400/220 kV Sub-Station Wagoora,Village Wagoora Tehsil & Distt. Budgam, Kashmir	1.33	Govt of J&K	No	FY 1993-94 onwards	Land in UT of J&K is acquired by UT/State Government under state land acquisition act. As per law, the UT/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 New Wanpoh,Village Damjan, Tehsil Dooru, Distt. Anantnag, Kashmir	25.45	Govt of J&K	No	30-11-2010
Kishenpur Township_800/ 400/220 kV Sub -Station Kishenpur,Village Kharta Tehsil Jindhra & Distt. Jammu (TOWNSHIP LAND)	0.06	Govt of J&K	No	31-03-1995
Kishenpur_800/ 400/220 kV Sub -Station Kishenpur,Village Kharta Tehsil Jindhra & Distt. Jammu	0.34	Govt of J&K	No	31-03-1993
Narwal_Line Office Narwal	-	Govt of J&K	No	FY 1993-94 onwards
Samba_Samba S/S Land	11.60	Govt of J&K	No	19-04-2012
TL Land in UT of Jammu and Kashmir	94.24	Govt of J&K	No	FY 1993-94 onwards
HVDC Terminal Station, Inter State Transmission System, Khasra No. 420, Pang, Ladakh	-	UT of Ladhakh / Union Ladakh Au- tonomous Hill Development Council-Leh (LAHDC)	No	23-11-2024	Ladakh Autonomous Hill Development Council-Leh (LAHDC) has allotted this land to the Company for construction of HVDC Terminal Station for Inter State Transmission System. UT/ state Govt. remains the owner of the land acquired, and the company is only given possession for specific use.
Vishakapatnam Land for Gazuwaka Substation Freehold Land	107.55	Rahtriya Ispat Nigam Limited (RINL)	No	23-03-2022	Lease hold land agreement for 33 years, expired on 23.03.2022. The company and RINL is mutually agreed Rs 107.55 crores as lease premium and extension of lease agreement is in progress.
Township-Sector 46, Gurgaon	11.00	Haryana Shahari Vikas Pradhikaran (HSVP)	No	02-12-1998	Pending the outcome of representation made to HSVP by Company for review of demand dues, the title deed is pending for transfer in favour of the Company.
Birpara	0.00*	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	0.00*	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 Owner	("NOC") No	28-03-2018	No Objection Certificate from Tribal Board is yet to be received pending which title deed is not transferred in name of the Company.
Alipurduar- Mathabhanga Earth Electrocode	0.67	Multiple Private Owner	No	31-12-2012	Transfer of title deed is pending on account of procedural delays.
Rajarhat	23.23	Multiple Private Owner	No	30-11-2014
Aizawl	0.03	Govt.of Mizoram	No	1991
Faridabad, NR-1, RHQ (Township)	6.42	Haryana Shahari Vikas Pradhikaran (HSVP)	No	01-04-1999	Pursuant to the order dated 03 April 2025 passed in favour of the Company by the Honble High Court of Punjab and Haryana at Chandigarh in the matter concerning the enhancement and extension fees demanded by HSVP, the Company will take appropriate steps to have the title deed registered in its name.
TL Land in Hisar Fatehabad and Bhiwani Distt.	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.
Line Office Banikhet, Tehsil & Distt. Chamba (HP)	0.00*	HP Govt	No	28-02-1994	Subject land is Govt./Forest Land in record of HP Govt. As per GOI guidelines, Forest Land diverted to Non-Forestry purpose under Forest (Conservation) Act, 1980 will be having legal status as "Forest" even after diversion.
Hiriyur 400/220 KV Substation	0.34	Karnataka Industrial Area Development Board (KIADB)	No	01-02-2004	Pending title rectifications for few parcel of land, to be carried out by KIADB, title deed is yet to be registered in the name of POWERGRID.
Yelahanka 400/220 KV	30.72	Karnataka	No	23-03-2011	Transfer of title deed is pending
Substation Somanhalli 400/220	0.34	Power Transmission Corporation Limited (KPTCL) Karnataka	No	FY 1992-93	on account of procedural delays with office of M/s KPTCL.
KV Substation		Power Transmission Corporation Limited (KPTCL)		onwards
Kolar Siddalagatta HVDC Substation	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.
Tumkur 765/400/220 KV Substation	42.29	Karnataka Industrial Area Development Board (KIADB)	No	25-09-2013
Kudugi 765/400 KV GIS	8.83	Karnataka Industrial Area Development Board (KIADB) and Others	No	28-02-2014
Bidadi 400/220 KV GIS	20.00	Karnataka Industrial Area Development Board (KIADB)	No	23-03-2011
Pavagada 400/220 KV Substation	0.26	Private Par- ties are, Mrs. Sanjeevamma D/o Venkatap- pa, M. Chap- lainship 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 Substation	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	53.14	Shri Ramesh and Shri R Rajan	No	19-10-2011	Pursuant to the directions of the Honble High Court, Chennai, Sole Arbitrator has been appointed and an award has been passed. Aggrieved by the award, both the parties has 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.
Pavagada 400/220 KV SS	3.32	Multiple Private Owner	No	09-05-2025	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.
New Navsari Substation Freehold Building	11.36	Govt. of Gujarat	No	20-06-2022	During the year 2024-25 mutation for transferring the land parcels in the name of Company has been completed except for land parcel for Survey No 563 admeasuring 2.71 hectares having gross block of Rs. 11.36 crores as on 31 March 2026.
Building flats in Powai & Oshiwara Mumbai	2.96	MHADA	No	Since 02-01-2017	Transfer of title deed is pending on account of procedural delays.

*Amount is less than Decimal of Crore 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) 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 and 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 such physical verification.

(b) The Company has been sanctioned working capital limits in excess of Rs. 5 crore, 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 and based on the audit procedures performed by us, the quarterly returns/statements filed by the Company with such banks are in agreement with the books of account of the Company. During the year, the Company has not availed working capital limit from any financial institution.

(iii) (a) The Company has made investments, provided guarantees 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:

Sl. No.	Particulars	Financial Guarantees	Secured Loan	Unsecured Loan	Advance in nature of Loan
Aggregate amount granted/ provided during the year
1	Subsidiaries	-	-	22,433.48	41.70*
2	Joint Ventures	-	-	-	100
3	Associates	-	-	-	-
Balance outstanding as at 31 March 2026
1	Subsidiaries	-	-	57,414.51	41.70*
2	Joint Ventures	-	-	-	100
3	Associates	-	-	-	-

* Against which intercorporate Loan Agreement are pending as at March 31, 2026.

(B) 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) 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 respect of loans given, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are regular. (d) There is no overdue amount for more than ninety days in respect of loans given and advances in the nature of loans given.

(e) 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 overdue of existing loans given to the same parties.

(f) 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 during the year.

The company has not made investments in Firms and Limited Liability Partnerships during the year. Further the company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to Companies (other than the companies mentioned above in Clause 3(iii)(a)), Firms, Limited Liability Partnerships or any other parties.

(iv) The Company has complied with the provisions of section 185 and 186 of the Act in respect of loans, investments, guarantees and security, as applicable.

(v) The Company has not accepted any deposit from the public and 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. Hence, reporting under clause 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the cost recordsmaintained specifiedby the Central Government theCompany under sub section (1) of section 148 of the Act, in respect of Transmission 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) The Company is generally regular in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Income Tax, Goods and Services Tax, Sales 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 March 31, 2026 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) There are no statutory dues referred to in sub- clause (a) which have not been deposited on account of dispute except for the following:

(viii) We report that no income has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 and therefore, no such transactions are required to be recorded in the books of account. Accordingly, the provisions of clause 3(viii) of the Order are not applicable.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender (b) We report that the Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(c) The term loans were applied for the purposes for which the loans were obtained.

(d) We report that no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) 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 ( in Crores)	Amount Repaid/ Guarantee reduced or discharged or renewed during the year ( in Crores)	Amount Outstand- ing as on March 31, 2026 ( in Crores)	Name of the subsidiary, joint venture, associate	Relation	Nature of Transaction for which Funds utilized
Bonds	Bond	-	88.50	434.44	POWERGRID NM	Subsidiary	Capex
	Holders				Transmission Limited
Bonds	Bond	-	1.22	28.79	POWERGRID Unchahar	Subsidiary	Capex
	Holders				Transmission Limited
Term	Bank	-	0.03	0.81	POWERGRID Unchahar	Subsidiary	Capex
Loans					Transmission Limited
Bonds	Bond	-	99.87		POWERGRID Southern	Subsidiary	Capex
	Holders			1,147.54	Interconnector
					Transmission system
					Limited
Term	Bank	0.47	82.43	946.34	POWERGRID Southern	Subsidiary	Capex
Loans					Interconnector
					Transmission system
					Limited
Bonds	Bond	0.13			POWERGRID Medinipur	Subsidiary	Capex
	Holders		107.64	1,045.30	Jeerat Transmission
					Limited
Term	Bank	-		783.37	POWERGRID Medinipur	Subsidiary	Capex
Loans			80.68		Jeerat Transmission
					Limited
Bonds	Bond	1.08	26.23	398.80	POWERGRID Mithilanchal	Subsidiary	Capex
	Holders				Transmission Limited
Term	Bank	0.33	22.40	340.42	POWERGRID Mithilanchal	Subsidiary	Capex
Loans					Transmission Limited
Bonds	Bond	-	18.74	320.69	POWERGRID Varanasi	Subsidiary	Capex
	Holders				Transmission System
					Limited
Term	Bank	-	13.82	236.31	POWERGRID Varanasi	Subsidiary	Capex
Loans					Transmission System
					Limited
Bonds	Bond	0.51	28.00	235.91	POWERGRID Jawaharpur	Subsidiary	Capex
	Holders				Firozabad Transmission
					Limited
Term	Bank	0.09	3.68	31.08	POWERGRID Jawaharpur	Subsidiary	Capex
Loans					Firozabad Transmission
					Limited
Bonds	Bond	0.70	20.85	396.53	POWERGRID Khetri	Subsidiary	Capex
	Holders				Transmission System
					Limited
Term	Bank	0.25	7.55	143.60 POWERGRID Khetri	Subsidiary	Capex
Loans					Transmission System
					Limited
Bonds	Bond	0.94	12.74	244.41 POWERGRID Bhuj	Subsidiary	Capex
	Holders				Transmission Limited
Term	Bank	1.05	8.91	171.20 POWERGRID Bhuj	Subsidiary	Capex
Loans					Transmission Limited
Bonds	Bond	0.02	8.25	166.84 POWERGRID Bhind Guna	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	0.02	6.04	122.32 POWERGRID Bhind Guna	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	0.08	22.32	324.36 POWERGRID Ajmer Phagi	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	0.02	2.38	34.63 POWERGRID Ajmer Phagi	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	0.33	21.43	306.24 POWERGRID Fatehgarh	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	0.00	5.26	75.16 POWERGRID Fatehgarh	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	635.20	-	POWERGRID Narela	Subsidiary Capex
	Holders			1,805.26 Transmission Limited
Term	Bank	230.14	-	517.37 POWERGRID Narela	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	325.87	-	818.55 POWERGRID Energy	Subsidiary Capex
	Holders			Services Limited
Term	Bank	179.45	-	189.36 POWERGRID Energy	Subsidiary Capex
Loans				Services Limited
Bonds	Bond	4.85	2.77	87.17 POWERGRID Rampur	Subsidiary Capex
	Holders			Sambhal Transmission
				Limited
Term	Bank	3.76	6.56	202.14 POWERGRID Rampur	Subsidiary Capex
Loans				Sambhal Transmission
				Limited
Bonds	Bond	11.02	3.88	253.68 POWERGRID Meerut	Subsidiary Capex
	Holders			Simbhavali Transmission
				Limited
Term	Bank	8.94	3.15	209.15 POWERGRID Meerut	Subsidiary Capex
Loans				Simbhavali Transmission
				Limited
Bonds	Bond	42.72	-	838.15 POWERGRID Sikar	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	20.20	-	252.97 POWERGRID Sikar	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	32.17	-	421.23 POWERGRID Ramgarh	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	316.77	-	458.10 POWERGRID Ramgarh	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	27.49	-	323.09 POWRGRID Bhadla	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	9.12	-	168.99 POWRGRID Bhadla	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	3.60	2.21	289.22 POWERGRID Aligarh Sikar	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	1.23	1.31	170.71 POWERGRID Aligarh Sikar	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	31.02	-	566.22 Powergrid Bikaner	Subsidiary Capex
	Holders			Transmission System
				Limited
Term	Bank	54.33	-	458.16 Powergrid Bikaner	Subsidiary Capex
Loans				Transmission System
				Limited
Bonds	Bond	14.38	15.18	483.11 POWERGRID Gomti	Subsidiary Capex
	Holders			Yamuna Transmission
				Limited
Term	Bank	4.82	10.68	338.64 POWERGRID Gomti	Subsidiary Capex
Loans				Yamuna Transmission
				Limited
Bonds	Bond	71.62	22.66	246.30 POWERGRID Tele Services	Subsidiary Capex
	Holders			Limited
Term	Bank	38.03	0.58	37.45 POWERGRID Tele Services	Subsidiary Capex
Loans				Limited
Bonds	Bond	13.15	15.99	521.62 POWERGRID Neemuch	Subsidiary Capex
	Holders			Transmission System
				Limited
Term	Bank	5.83	4.60	152.34 POWERGRID Neemuch	Subsidiary Capex
Loans				Transmission System
				Limited
Bonds	Bond	32.03	3.23	186.06 POWERGRID ER NER	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	14.82	0.37	23.48 POWERGRID ER NER	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	31.52	1.35	- POWERGRID ERWR Power	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	14.04	0.07	- POWERGRID ERWR Power	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	113.96	-	- POWERGRID Khavda RE	Subsidiary Capex
	Holders			Transmission System
				Limited
Term	Bank	50.00	-	- POWERGRID Khavda RE	Subsidiary Capex
Loans				Transmission System
				Limited
Bonds	Bond	149.61	-	- Powergrid Khavda II-B	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	63.31	-	- Powergrid Khavda II-B	Subsidiary Capex
Loans				Transmission Limited
Bonds	Bond	443.25	-	- POWERGRID Khavda II-C	Subsidiary Capex
	Holders			Transmission Limited
Term	Bank	213.37	-	- POWERGRID Khavda II-C	Subsidiary Capex
Loans				Transmission Limited

** With effect from October 01, 2023, Telecom Segment of the Company has been transferred to Powergrid Teleservices Limited. However, as of March 31, 2026 the above stated performance bank guarantees continue to stand in the name of the Company.

(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) 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.

Name of the Statute	Nature of dues	Amount* (g in Crore)	Period to which the amount relates	Forum where dispute is pending
Income Tax Act, 1961	Income Tax	0.001	For the FY 2025-26	Jurisdictional Assessing Officers of respective TANs
Income Tax Act, 1961	Income Tax	0.00	For the FY 2018-19	Commissioner of Income Tax, Appeals
Income Tax Act, 1961	Income Tax	0.51	For the F.Y. 2021-22	Deputy Commissioner of Income Tax, Delhi
Income Tax Act, 1961	Income Tax	0.18	For the F.Y. 2022-23	Deputy Commissioner of Income Tax, Delhi
Income Tax Act, 1961	Income Tax	-	FY 2007-08	Commissioner of Income Tax, Appeals
Finance Act,1994	Service Tax	1.54	For the F.Y.2003-04	Patna High Court
Finance Act,1994	Service Tax	1.55	2014-15 to 2016-17	GST Commissionerate (Appeals) Patna
Central Excise Act, 1944	Central Excise Duty / Service Tax	31.85	2016-17	CESTAT, Kolkata
The Indian Customs,1962	Penalty under The Indian Customs, 1962	1.00	2023-24	CESTAT, Mumbai
The Indian Customs,1962	Penalty under The Indian	4.55	From 2016-17 to 2017- 18 and 2019-20 to 2021-22	CESTAT, Chennai
Delhi Municipal Corporation Act, 1957	Property Tax	107.05	From FY 2007-08 to FY 2017-18	Plonble High Court, Delhi
Goods and Service Tax Act, 2017	Goods and Service tax	30.65	From July 2017 to March 2018	The Commissioner (Appeal), New Delhi
Goods and Service Tax Act, 2017	Goods and Service tax	0.35	From July 2017 to March 2018	The Commissioner (Appeal), New Delhi
Custom Act, 1962	Custom Duty	5.25	From FY 2016-17 to FY 2017-18 and FY 2019- 20 to FY 2021-22	CESTAT, Chennai
Goods and Service Tax Act, 2017	Goods and Service tax	38.06	FY 2019-20	The Commissioner (Appeal), New Delhi
Goods and Service Tax Act, 2017	Goods and Service tax	32.27	FY 2020-21	The Commissioner (Appeal), New Delhi
Goods and Service Tax Act, 2017	Service Tax	6.66	From October 2016 to June 2017	Appeal filed with CESTAT Delhi
Goods and Service Tax Act, 2017	Goods and Service tax	0.04	From 2018- 2019	The Commissioner (Appeal), Plaryana
Goods and Service Tax Act, 2017	Goods and Service tax	0.06	From 2019 to 2020	The Commissioner (Appeal), Plaryana
Goods and Service Tax Act, 2017	Goods and Service tax	0.06	From 2020 to 2021	The Commissioner (Appeal), Plaryana
Goods and Service Tax Act, 2017	Goods and Service tax	0.03	From 2021 to 2022	The Commissioner (Appeal), Plaryana
Goods and Service Tax Act, 2017	Goods and Service tax	0.03	From 2022 to 2023	The Commissioner (Appeal), Plaryana
Goods and Service Tax Act, 2017	Goods and Service tax	0.07	From 2021 to 2022	The Commissioner (Appeal), Delhi
Goods and Service Tax Act, 2017	Goods and Service tax	0.05	From 2019 to 2020	Due date to file appeal 26 June 2026
Punjab Tax on Entry of Goods into Local Areas Act, 2000	Entry Tax	9.64	2011-12 to 2013-14	Plonble High Court of Punjab and Plaryana, Chandigarh
The Delhi Municipal Corporation Act, 1957	Property tax	240.28	2004-05 to 2013-14	Plonble High Court of Delhi
The Finance Act, 1994	Service Tax	0.44	2008-09	Customs Excise and Service Tax Appellate Tribunal, Chandigarh
Goods and Service Tax Act, 2017	Goods and Service Tax	0.25	2018-19 and 2019-20	The Commissioner, CGST(Appeals), Jammu has rejected the appeal filed by the Company. As informed to us, the Company is in the process of filing an appeal with GST Appellate Tribunal within the stipulated time up to June 30, 2026
The Customs Act,1962	Differential Custom Duty	0.34	2020-21	Custom Excise & Service Tax Appellate Tribunal, Chennai
Finance Act, 1994	Service Tax	29.47	April 2016 to June 2017	Customs, Central Excise & Service Tax Appellate Tribunal, Ahmedabad
Finance Act, 1994	Service Tax	0.06	April 2016 to June 2017	Commissioner (Appeals) of Central goods and Services and Central Excise, Bhopal
MP Land Revenue Code, 1959	Diversion Tax	2.97	From F.Y. 2004-05 to F.Y. 2017-18	Plonorable High Court of M.P. Jabalpur
CGST Act, 2017	Goods & Service Tax	2.88	F.Y. 2018-19	Additional Commissioner, CGST (Appeals)-
Finance Act,1994	Reverse Charge on CAMPA payments	24.21	Aprl6-Junel7	CESTAT
Custom Act, 1962	Differential Custom Duty	5.07	2017-2021	CESTAT
Andhra Pradesh Non-Agricultural Land Assessment Act, 1963	Non- Agricultural Land Assessment (NALA)Tax	0.09	2005-2006	Andhra Pradesh High Court
Custom Act, 1962	Differential Custom Duty	8.30	2017-2021	CESTAT, Chennai

* Demand amount including interest and net of amount paid under protest Rs 54.70 crore

(xi) (a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

(b) As no fraud has been noticed during the year as mentioned at clause xi(a) above, report under subSection (12) of Section 143 of the 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 while determining the nature, timing and extent of audit procedures.

(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) All transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable and the detailshavebeendisclosed financialstatements as thestandalone required by the applicable Indian Accounting Standards.

(xiv) (a) According to the information and explanations given to us and audit procedures performed by us, in our opinion, 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) The Company has not entered into non-cash transactions with directors or persons connected with them covered under Section 192 of the Act. Accordingly, Clause 3(xv) of the Order is not applicable to the Company.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provision of clause 3(xvi)(a) of the Order are not applicable to the Company. (b) The Company has not conducted any Non-Banking 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) 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) One of the previous joint statutory auditors of the Company have resigned during the year and we have taken into consideration the issues, objections or concerns raised by the outgoing auditors. (xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, 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) The Company has spent the amount required as per section 135(5) of the Act during the financial year and hence there is no unspent amounts which are to be transferred pursuant to Section 135 (5) of the Act.

For For ASA & Associates LLP	For Jain Paras Bilala & Co.
Chartered Accountants	Chartered Accountants
FRN : 009571N/N50006	FRN : 011046C
CA Parveen Kumar	CA Paras Bilala
Partner	Partner
M. No. 088810	M. No. 400917
UDIN: 26088810TQQYEE5828	UDIN: 26400917JOMARO9043
For Sagar & Associates	For G. D. Apte & Co.
Chartered Accountants	Chartered Accountants
FRN : 003510S	FRN : 100515W
CA Karthik Chowdary B K	CA Umesh S. Abhyankar
Partner	Partner
M. No. 289051	M. No. 113053
UDIN: 26289051DFTJQV6867	UDIN: 26113053NVTOKT1128
Place: Gurugram
Date: May 15, 2026