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 of Profit and 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) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described
in the Auditor's 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 ICAI's 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 the
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.
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Sr.
No.
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Key Audit Matters
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How the matter was addressed in our audit
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1
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Recognition of Revenue from Transmission
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Our audit approach involved:
• Obtaining an understanding of the CERC Tariff
Regulations, Orders, Circulars, Guidelines and the
Company's internal circulars and procedures
in respect of recognition and measurement of
revenue from transmission of power.
• Evaluated and tested the effectiveness of
the design of Internal controls relating to
recognition and measurement of revenue from
Transmission.
• Verified the transmission revenue based on
the CERC Tariff Regulation, Orders, Circulars,
Guidelines and the Company's internal circulars.
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Income
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.
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Sr.
No.
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Key Audit Matters
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How the matter was addressed in our audit
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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.
(Refer Note No. 35(b)(ii) of Standalone Financial
Statements)
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• 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.
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2
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Reassessment of Deferred Tax Liability (DTL)
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Our audit approach involved:
• 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.
• Inspected external expert opinions, wherever
considered necessary, and other evidence to
evaluate the management's assessment in
respect of impact of change in Act.
• 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.
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and Deferred Tax Assets relating to Minimum
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Alternate Tax ("MAT") credit entitlement
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.
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.
(Refer Note No. 26 of Standalone Financial
Statements.)
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3
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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.
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We have obtained an understanding of the
Company's procedure in respect of estimation and
disclosure of contingent liabilities and adopted the
following audit procedures:
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There is a high level of judgement required
in estimating the contingent liabilities. The
Company's assessment of contingent liabilities is
supported by the facts of the matter, Company's
judgement thereon, past experience and advices
from legal and independent tax consultants
wherever necessary.
We identified the above area as Key Audit Matter
in view of associated uncertainty relating to the
outcome of these matters.
(Refer Note No. 58 of Standalone Financial
Statements)
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• Reviewed the current status and material
developments of legal matters.
• Reviewed the legal and other professional
expenses and enquired with the management
for recent developments and the status of the
material litigations.
• 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.
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Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's 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, Board's Report including Annexures
to Board's Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder's
Information, but does not include the Standalone Financial Statements and our Auditor's Report thereon. The other
information as identified above is expected to be made available to us after the date of this Auditor's 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 Company's 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 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 Company's 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 Company's financial reporting process.
Auditor's 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 auditor's 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 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 the management.
• Conclude on the appropriateness of management's 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 Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's 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 auditor's 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 Standalone
Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the Standalone Financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, 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 auditor's 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 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'.
(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 Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and
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 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 (Auditor's 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 paragraphs
3 and 4 of the Order.
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
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