FINANCIAL

STATEMENTS & NOTES

FOR THE YEAR ENDED
2020-21

POWERGRID MEDINIPUR JEERAT TRANSMISSION LIMITED

Registered Office: - B-9,Qutab Institutional Area,Katwaria Sarai, New Delhi- 110016
CIN :U40300DL2016GOI290075
 POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
CIN : U40300DL2016GOI290075
Balance Sheet as at 31st March 2021
(₹ in Lakh)
Particulars Note No As At 31st March 2021 As At 31st March 2020
ASSETS

Non-Current Assets

Property, Plant and Equipment 4 1,46,496.11 7,567.94

Capital Work-in-Progress 5 1,57,768.39 2,53,876.55
Intangible Assets 6 1,757.80 -
Intangible Assets Under Development 7 10.00 1,478.77
Other Non-Current Assets 8 51.24 1,161.52
3,06,083.54 2,64,084.78
Current Assets

Financial Assets
Cash and Cash Equivalents 9 3.73 3.68
Other Current Financial Assets 10 4,580.84 -
4,584.57 3.68

Total Assets 3,10,668.11 2,64,088.46

EQUITY AND LIABILITIES

Equity

Equity Share Capital 11 54,963.00 28,933.00

Other Equity 12 1,914.53 (0.18)
56,877.53 28,932.82
Liabilities
Non-Current Liabilities

Financial Liabilities
Borrowings 13 2,37,301.95 2,08,225.60
Other Non Current Financial Liability 14 54.29 58.62
Deferred Tax Liabilites (Net) 15 658.87 -
2,38,015.11 2,08,284.22
Current Liabilities
Financial Liabilities
Other Current Financial Liability 16 15,461.22 26,309.27
Other Current Liabilities 17 314.25 562.15

15,775.47 26,871.42

Total Equity and Liabilities 3,10,668.11 2,64,088.46

The accompanying Notes (1 to 41) form an Integral Part of Financial Statements

As Per Our Report of Even Date

For Jain Seth & Company, For & On Behalf of The Board of Directors
Chartered Accountants
Digitally signed by
Firm Regn. No. 002069W Abhay Abhay Choudhary Ravisanka by
Digitally signed
Ravisankar

Choudhary Date: 2021.06.01

18:08:48 +05'30'
Ganesan
r Ganesan Date: 2021.06.01
18:05:56 +05'30'
Digitally signed
Ramakan by Ramakant
Sureka (Abhay Choudhary) (G. Ravisankar )
t Sureka Date: 2021.06.01
20:29:03 +05'30' Chairman Director
Ramakant Sureka DIN- 07388432 DIN-08816101
Partner Place : Gurgaon Place : Gurgaon
Mem. No. 056451
SUDHANSHU
Digitally signed by
SUDHANSHU KUMAR
MRINAL Digitally signed by
MRINAL
KUMAR MISHRA
MISHRA
Date: 2021.06.01 18:01:50
SHRIVASTA SHRIVASTAVA
Date: 2021.06.01
+05'30' VA 18:03:52 +05'30'
(Sudhanshu Kumar Mishra) (Mrinal Shrivastava)
CFO Company Secretary
Place : Kolkata Place : Gurgaon

Place : Kolkata
Date : 01.06.2021 Date : 01.06.2021
 POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
CIN : U40300DL2016GOI290075
Statement of Profit and Loss for the year ended 31st March, 2021
(₹ in Lakh)
For the year ended 31st For the year ended 31st
Particulars Note No.
March, 2021 March, 2020
Revenue From Operations 18 4,572.00 -
Other Income 19 - -
Total Income 4,572.00 -
EXPENSES
Finance Costs 20 1,177.03 -
Depreciation and Amortization Expense 21 686.87 -
Other Expenses 22 134.52 -
Total Expenses 1,998.42 -
Profit/(Loss) Before Tax 2,573.58 -
Tax Expense:
Current Tax - -
Deferred Tax 658.87 -
658.87 -

Profit (Loss) for the Period 1,914.71 -

Other Comprehensive Income - -
Total Comprehensive Income for the period 1,914.71 -
Earnings per Equity Share (Par Value ₹ 10 each)
Basic (₹) 0.51 -
Diluted (₹) 0.51 -

The accompanying Notes (1 to 41) form an Integral Part of Financial Statements

As Per Our Report of Even Date

For Jain Seth & Company, For & On Behalf of The Board of Directors
Chartered Accountants Digitally signed by
Firm Regn. No. 002069W Abhay Abhay Choudhary Ravisanka Digitally signed by
Ravisankar Ganesan

Choudhary Date: 2021.06.01

18:09:28 +05'30'
r Ganesan Date: 2021.06.01
18:06:28 +05'30'

Ramakan Digitally signed by

Ramakant Sureka (Abhay Choudhary) (G. Ravisankar )
t Sureka Date: 2021.06.01
20:29:58 +05'30'
Chairman Director
Ramakant Sureka DIN- 07388432 DIN-08816101
Partner Place : Gurgaon Place : Gurgaon
Mem. No. 056451 Digitally signed by MRINAL Digitally signed by
SUDHANSHU MRINAL
SUDHANSHU KUMAR MISHRA
SHRIVASTAV SHRIVASTAVA
KUMAR MISHRA Date: 2021.06.01 18:02:19
+05'30'
A
Date: 2021.06.01
18:04:18 +05'30'
(Sudhanshu Kumar Mishra) (Mrinal Shrivastava)
CFO Company Secretary
Place : Kolkata Place : Gurgaon

Place : Kolkata
Date : 01.06.2021 Date : 01.06.2021
 POWERGRID Medinipur Jeerat Transmission Limited

Statement of Cash Flow for the Year Ended 31st March 2021
(₹ in Lakh)
For the Year For the Year
Particulars Note Ended 31st March Ended 31st
2021 March 2020
A CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Tax 2,573.58 -
Adjustment for :
Depreciation & amortization expenses 686.87
Finance Costs 1,177.03
Opertating Profit /(Loss) before Changes in Assets and Liabilities 4,437.48 -

Adjustments For Changes in Assets and Liabilities

(Increase)/Decrease in Other Non-Current Assets 1,110.28 4,121.62
(Increase)/Decrease in Other Current Financial Assets (4,580.84) 0.00
(Increase)/Decrease in Other Non Current Financial Liability (4.33) (7,887.16)
(Increase)/Decrease in Other Current Financial Liability (10,848.05) 9,741.43
(Increase)/Decrease in Other Current Liabilities (247.90) 107.75
(14,570.84) 6,083.64

Cash Generated From Operations (10,133.36) 6,083.64

Net Cash from / (used in) Operating Activities (10,133.36) 6,083.64

B CASH FLOW FROM INVESTING ACTIVITIES

Property, Plant & Equipments, Capital Work in Progress and
(28,675.94) (1,02,917.26)
Intangible Assets and Intangible Assets Under Development

Net Cash used in Investing Activities (28,675.94) (1,02,917.26)

C CASH FLOW FROM FINANCING ACTIVITIES

Interest on Loan (16,291.72) (13,341.50)
Equity issued during the year 26,030.00 28,932.00
Interest on Lease Liability & others (5.28) (4.31)
Proceeds from Loan 29,076.35 81,248.08
Net Cash From Financing Activities 38,809.35 96,834.27

D Net Change in Cash and Cash Equivalents (A+B+C) 0.05 0.65

E Cash and Cash Equivalents (Opening Balance) 9 3.68 3.03

F Cash and Cash Equivalents (Closing Balance) (D+E) 9 3.73 3.68

The accompanying Notes (1 to 41) form an Integral Part of Financial Statements

Further Notes :
1. Cash & Cash equivalents consist of balances with bank in current account.
2. Previous year figures have been re-groupped / re-arranged whereever required.

As Per Our Report of Even Date

For Jain Seth & Company, For & On Behalf of The Board of Directors
Chartered Accountants Digitally signed by
Firm Regn. No. 002069W
Abhay Abhay Choudhary Ravisanka Digitally signed by
Ravisankar Ganesan
Choudhary Date: 2021.06.01
18:10:02 +05'30' r Ganesan 18:07:02 +05'30'
Date: 2021.06.01

Ramakan Digitally signed by

Ramakant Sureka (Abhay Choudhary) (G. Ravisankar )
t Sureka Date: 2021.06.01
20:30:42 +05'30' Chairman Director
Ramakant Sureka DIN- 07388432 DIN-08816101
Partner Place : Gurgaon Place : Gurgaon
Mem. No. 056451 SUDHANSHU Digitally signed by
MRINAL Digitally signed by
SUDHANSHU KUMAR MRINAL
KUMAR MISHRA
SHRIVASTA SHRIVASTAVA
Date: 2021.06.01 Date: 2021.06.01
MISHRA 18:02:37 +05'30' VA 18:04:39 +05'30'
(Sudhanshu Kumar Mishra) (Mrinal Shrivastava)
CFO Company Secretary
Place : Kolkata Place : Gurgaon

Place : Kolkata
Date : 01.06.2021 Date : 01.06.2021
 POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Statement of Changes in Equity for the period ended 31st March 2021
A. Equity Share Capital
Particulars (₹ in Lakh)
As at 1st April, 2020 28,933.00
Changes in equity share capital 26,030.00
As at 31st March, 2021 54,963.00

Particulars (₹ in Lakh)
As at 1st April, 2019 1.00
Changes in equity share capital 28,932.00
As at 31st March, 2020 28,933.00

B. Other Equity
(₹ in Lakh)
Reserves and Surplus
Total
Self Insurance Reserve Retained Earnings
Balance at 1st April,2020 - (0.18) (0.18)
Total Comprehensive Income for the year 1,914.71 1,914.71
Transfer to Self Insurance Reserve 175.07 (175.07) -
Other Changes - - -
Balance at 31st March, 2021 175.07 1,739.46 1,914.53

(₹ in Lakh)
Reserves and Surplus
Total
Self Insurance Reserve Retained Earnings
Balance at 1st April,2019 - (0.18) (0.18)
Total Comprehensive Income for the year - - -
Balance at 31st March, 2020 - (0.18) (0.18)
The accompanying Notes (1 to 41) form an Integral Part of Financial Statements
Refer to Note 12 for Nature & Movement of Other Equity.

As per our report of even date For and on behalf of Board Of Directors
For & on behalf of
Jain Seth & Company
Chartered Accountants
FRN-002069W Abhay Digitally
by Abhay
signed
Ravisank Digitally signed

Ramakan Digitally signed by

Choudha Choudhary
Date: 2021.06.01 ar
by Ravisankar
Ganesan
Ramakant Sureka Date: 2021.06.01
t Sureka Date: 2021.06.01
20:31:32 +05'30' ry 18:10:40 +05'30' Ganesan 18:07:29 +05'30'
Ramakant Sureka Abhay Choudhary G. Ravisankar
Partner Chairman Director
M.No. 056451 DIN- 07388432 DIN-08816101
Place : Gurgaon Place : Gurgaon

Digitally signed by
MRINAL Digitally signed by
MRINAL
SUDHANSHU SUDHANSHU KUMAR
MISHRA
SHRIVASTA SHRIVASTAVA
KUMAR MISHRA Date: 2021.06.01
Date: 2021.06.01 18:02:56
+05'30'
VA 18:05:02 +05'30'
(Sudhanshu Kumar Mishra) (Mrinal Shrivastava)
CFO Company Secretary
Place : Kolkata Place : Gurgaon
Palce : Kolkata
Date: 01.06.2021 Date : 01.06.2021
Notes to Financial Statements

1. Corporate and General Information

M/s Powergrid Medinipur Jeerat Transmission Limited (‘the Company’) is a public

company domiciled and incorporated in India under the provisions of Companies
Act and a wholly owned subsidiary of Power Grid Corporation of India Limited. The
registered office of the Company is situated at B-9, Qutab Institutional Area,
Katwaria Sarai, New Delhi, 110016, India.

The company is engaged in business of Power Systems Network, construction,

operation and maintenance of transmission lines and other related allied activities.

The financial statements of the company for the year ended March 31, 2021 were
approved for issue by the Board of Directors on 01st June, 2021.

2. Significant Accounting Policies

A summary of the significant accounting policies applied in the preparation of the financial
statements are as given below. These accounting policies have been applied consistently to
all periods presented in the financial statements.

2.1 Basis of Preparation

i) Compliance with Ind AS
The financial statements are prepared in compliance with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act), Companies
(Indian Accounting Standards) Rules, 2015, the relevant provisions of the Companies Act,
2013 (to the extent notified), The Companies Act, 1956 and the provisions of Electricity Act,
2003, in each case, to the extent applicable and as amended thereafter.
ii) Basis of Measurement
The financial statements have been prepared on accrual basis and under the historical cost
convention except certain financial assets and liabilities measured at fair value (Refer Note
no. 2.11 for accounting policy regarding financial instruments).
iii) Functional and presentation currency
The financial statements are presented in Indian Rupees (Rupees or ₹), which is the
Company’s functional and presentation currency and all amounts are rounded to the
nearest lakh and two decimals thereof, except as stated otherwise.
iv) Use of estimates
The preparation of financial statements requires estimates and assumptions that affect the
reported amount of assets, liabilities, revenue and expenses during the reporting period.
Although, such estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could differ from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is
revised if the revision effects only that period or in the period of the revision and future
periods if the revision affects both current and future years (refer Note no. 3 on critical
accounting estimates, assumptions and judgments).
v) Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.
An asset is current when it is:
 Expected to be realized or intended to be sold or consumed in normal operating
cycle;
 Held primarily for the purpose of trading;
 Expected to be realized within twelve months after the reporting period; or
 Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
 It is expected to be settled in normal operating cycle;
 It is held primarily for the purpose of trading;
 It is due to be settled within twelve months after the reporting period; or
 There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets/liabilities are classified as non-current.
The Company recognizes twelve months period as its operating cycle.
2.2 Property, Plant and Equipment
The Company had opted to consider the carrying value of Property, Plant and Equipment
as per previous GAAP on the date of transition to Ind AS (1st April, 2015) to be the deemed
cost as per Ind AS 101 ‘First time Adoption of Indian Accounting Standards’.
Initial Recognition and Measurement
Property, Plant and Equipment is initially measured at cost of acquisition/construction
including any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. After
initial recognition, Property, Plant and Equipment is carried at cost less accumulated
depreciation / amortisation and accumulated impairment losses, if any.
Property, Plant and Equipment acquired as replacement of the existing assets are
capitalized and its corresponding replaced assets removed/ retired from active use are
derecognized.
If the cost of the replaced part or earlier inspection component is not available, the
estimated cost of similar new parts/inspection component is used as an indication of what
the cost of the existing part/ inspection component was when the item was acquired or
inspection was carried out.
In the case of commissioned assets, where final settlement of bills with contractors is yet to
be effected, capitalization is done on provisional basis subject to necessary adjustments in
the year of final settlement.
Transmission system assets are considered as ready for intended use after meeting the
conditions for commercial operation as stipulated in Transmission Service Agreement
(TSA) and capitalized accordingly.
The cost of land includes provisional deposits, payments/liabilities towards compensation,
rehabilitation and other expenses wherever possession of land is taken.
Expenditure on leveling, clearing and grading of land is capitalized as part of cost of the
related buildings.
Spares parts whose cost is ₹5,00,000/- and above, standby equipment and servicing
equipment which meets the recognition criteria of Property, Plant and Equipment are
capitalized.
Subsequent costs
Subsequent expenditure is recognized as an increase in carrying amount of assets when it is
probable that future economic benefits deriving from the cost incurred will flow to the
company and cost of the item can be measured reliably.
The cost of replacing part of an item of Property, Plant and Equipment is recognized in the
carrying amount of the item if it is probable that future economic benefits embodied within
the part will flow to the company and its cost can be measured reliably. The carrying
amount of the replaced part is derecognized. The costs of the day-to-day servicing of
property, plant and equipment are recognised in the Statement of Profit and Loss as
incurred.
Derecognition
An item of Property, Plant and Equipment is derecognized when no future economic
benefits are expected from their use or upon disposal.
The gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the net disposal proceeds and the
carrying amount of the asset and is recognised in the Statement of Profit and Loss on the
date of disposal or retirement.
2.3 Capital Work-In-Progress (CWIP)
Cost of material, erection charges and other expenses incurred for the construction of
Property, Plant and Equipment are shown as CWIP based on progress of erection work till
the date of capitalization.
Expenditure of office and Projects, directly attributable to construction of property, plant
and equipment are identified and allocated on a systematic basis to the cost of the related
assets.
Interest during construction and expenditure (net) allocated to construction as per policy
above are kept as a separate item under CWIP and apportioned to the assets being
capitalized in proportion to the closing balance of CWIP.
Unsettled liability for price variation/exchange rate variation in case of contracts is
accounted for on estimated basis as per terms of the contracts.
2.4 Intangible Assets and Intangible Assets under development
The Company had opted to consider the carrying value of Intangible Assets as per previous
GAAP on the date of transition to Ind AS (1st April, 2015) to be the deemed cost as per Ind
AS 101 ‘First time Adoption of Indian Accounting Standards’.
Intangible assets are measured on initial recognition at cost. After initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated
impairment losses.
Subsequent expenditure on already capitalized Intangible assets is capitalised when it
increases the future economic benefits embodied in an existing asset and is amortised
prospectively.
The cost of software(which is not an integral part of the related hardware) acquired for
internal use and resulting in significant future economic benefits is recognized as an
intangible asset when the same is ready for its use.
Afforestation charges for acquiring right-of-way for laying transmission lines are accounted
for as intangible assets on the date of capitalization of related transmission lines.
Expenditure incurred, eligible for capitalization under the head Intangible Assets, are
carried as “Intangible Assets under Development” till such assets are ready for their
intended use.
An item of Intangible asset is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Gains or losses arising from derecognition of
an intangible asset are measured as the difference between the net disposal proceeds and
the carrying amount of the asset and are recognised in the Statement of Profit and Loss
when the asset is derecognised.
2.5 Depreciation / Amortisation
Property, Plant and Equipment
Depreciation/Amortisation on the items of Property, Plant and Equipment related to
transmission business is provided on straight line method based on the useful life specified
in Schedule II of the Companies Act, 2013 except for the following items of property, plant
and equipment on which depreciation is provided based on estimated useful life as per
technical assessment and considering the terms of Transmission Service Agreement entered
with Long Term Transmission Customers.

Particulars Useful life

3 Years
a. Computers and Peripherals
5 years
b. Servers and Network Components
35 years
c. Buildings (RCC frame structure)
 35 years
d. Transmission line
35 years
e. Substation Equipment

Depreciation on spares parts, standby equipment and servicing equipment which are
capitalized, is provided on straight line method from the date they are available for use
over the remaining useful life of the related assets of transmission business.
Mobile phones are charged off in the year of purchase.
Residual value is considered as 5% of the Original Cost for all items of Property, Plant and
Equipment in line with Companies Act, 2013 except for Computers and Peripherals and
Servers and Network Components for which residual value is considered as Nil.
Property, plant and equipment costing ₹5,000/- or less, are fully depreciated in the year of
acquisition.
Where the cost of depreciable property, plant and equipment has undergone a change due
to increase/decrease in long term monetary items on account of exchange rate fluctuation,
price adjustment, change in duties or similar factors, the unamortized balance of such asset
is depreciated prospectively.
Depreciation on additions to/deductions from Property, Plant and Equipment during the
year is charged on pro-rata basis from/up to the date on which the asset is available for
use/disposed.
The residual values, useful lives and methods of depreciation for items of property, plant
and equipment are reviewed at each financial year-end and adjusted prospectively,
wherever required.
Right of Use Assets:
Right of Use assets are fully depreciated from the lease commencement date on a straight
line basis over the lease term.
Leasehold land is fully amortized over lease period or life of the related plant whichever is
lower. Leasehold land acquired on perpetual lease is not amortized.
Intangible Assets
Cost of software capitalized as intangible asset is amortized over the period of legal right to
use or 3 years, whichever is less with Nil residual value.
Afforestation charges are amortized over thirty-five years from the date of capitalization of
related transmission assets following the straight line method, with Nil Residual Value.
Amortisation on additions to/deductions from Intangible Assets during the year is charged
on pro-rata basis from/up to the date on which the asset is available for use/disposed.
The amortization period and the amortization method for intangible assets are reviewed at
each financial year-end and are accounted for as change in accounting estimates in
accordance with Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors”.
2.6 Borrowing Costs
Borrowing costs directly attributable to the acquisition or construction of qualifying assets
are capitalized (net of income on temporary deployment of funds) as part of the cost of such
assets till the assets are ready for the intended use. Qualifying assets are assets which take
a substantial period of time to get ready for their intended use.
All other borrowing costs are recognised in Statement of Profit and Loss in the period in
which they are incurred.
2.7 Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting
date to determine whether there is any indication of impairment considering the provisions
of Ind AS 36 ‘Impairment of Assets’. If any such indication exists, then the asset’s
recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less
costs to disposal and its value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset
for which the estimates of future cash flows have not been adjusted. For the purpose of
impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the “cash-generating
unit”, or “CGU”).
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds
its estimated recoverable amount. Impairment losses are recognized in the statement of
profit and loss. Impairment losses recognized in respect of CGUs are reduced from the
carrying amounts of the assets of the CGU.
Impairment losses recognized in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.
2.8 Cash and cash equivalents
Cash and cash equivalents include cash on hand and at bank, and deposits held at call with
banks having a maturity of three months or less from the date of acquisition that are readily
convertible to a known amount of cash and are subject to an insignificant risk of changes in
value.
2.9 Inventories
Inventories are valued at lower of the cost, determined on weighted average basis and net
realizable value.
Steel scrap and conductor scrap are valued at estimated realizable value or book value,
whichever is less.
Spares which do not meet the recognition criteria as Property, Plant and Equipment,
including spare parts whose cost is less than ₹5,00,000/- are recorded as inventories.
Surplus materials as determined by the management are held for intended use and are
included in the inventory.
The diminution in the value of obsolete, unserviceable and surplus stores and spares is
ascertained on review and provided for.
2.10 Leases
Lease is a contract that conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves use of an identified assets, (ii) the
customer has substantially all the economic benefits from the use of the asset through the
period of the lease and (iii) the customer has the right to direct the use of the asset.
i) As a Lessee
At the date of commencement of the lease, the Company recognises a right-of-use asset
(ROU) and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for lease with a term of twelve months or less (i.e. short term leases) and leases for
which the underlying asset is of low value. For these short-term and leases for which the
underlying asset is of low value, the Company recognizes the lease payments on straight-
line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the
end of the lease term. ROU assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before
the inception date of the lease along with any initial direct costs, restoration obligations and
lease incentives received.
Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the lease
liability. The Company applies Ind AS 36 to determine whether a ROU asset is impaired
and accounts for any identified impairment loss as described in the accounting policy 2.7 on
“Impairment of non-financial assets”.
The lease liability is initially measured at present value of the lease payments that are not
paid at that date.
The interest cost on lease liability is expensed in the Statement of Profit and Loss, unless
eligible for capitalization as per accounting policy 2.6 on “Borrowing costs”.
Lease liability and ROU asset have been separately presented in the financial statements
and lease payments have been classified as financing cash flows.
ii) As a Lessor
A lease is classified at the inception date as a finance lease or an operating lease.
a) Finance leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an
asset is classified as a finance lease.
Net investment in leased assets is recorded at the lower of the fair value of the leased
property and the present value of the minimum lease payments as Lease Receivables
under current and non-current other financial assets.
The interest element of lease is accounted in the Statement of Profit and Loss over the lease
period based on a pattern reflecting a constant periodic rate of return on the net
investment.
b) Operating leases
An operating lease is a lease other than a finance lease. Leases in which a significant
portion of the risks and rewards of ownership are retained by the lessor are classified as
operating leases.
For operating leases, the asset is capitalized as property, plant and equipment and
depreciated over its economic life. Rental income from operating lease is recognized over
the term of the arrangement.
2.11 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial Assets
Classification
The Company classifies its financial assets in the following categories:
• at amortised cost,
• at fair value through other comprehensive income
The classification depends on the following:
• the entity’s business model for managing the financial assets and
• the contractual cash flow characteristics of the financial asset
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs, if any, that are
attributable to the acquisition of the financial asset.
Subsequent measurement
Debt Instruments at Amortised cost: Assets that are held for collection of contractual cash
flows where those cash flows represent solely payments of principal and interest are
measured at amortised cost. A gain or loss on a debt investment that is subsequently
measured at amortised cost is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is included in finance income using
the effective interest rate method.
Debt Instruments at Fair value through other comprehensive income (FVOCI): Assets
that are held for collection of contractual cash flows and for selling the financial assets,
where the assets’ cash flows represent solely payments of principal and interest, are
measured at fair value through other comprehensive income (FVOCI). On derecognition of
the asset, cumulative gain or loss previously recognised in OCI is reclassified from the
equity to profit and loss. Interest income from these financial assets is included in finance
income using the effective interest rate method.
De-recognition of financial assets
A financial asset is derecognized only when
i) The right to receive cash flows from the asset have expired, or
ii) a) The company has transferred the rights to receive cash flows from the financial
asset (or) retains the contractual rights to receive the cash flows of the financial
assets, but assumes a contractual obligation to pay the cash flows to one or more
recipients and
b) the company has transferred substantially all the risks and rewards of the asset
(or) the company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
The difference between the carrying amount and the amount of consideration
received/receivable is recognised in the statement of Profit and Loss.

Impairment of financial assets:

For trade receivables and unbilled revenue, the company applies the simplified approach
required by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be
recognised from initial recognition of the receivables.
For recognition of impairment loss on other financial assets and risk exposure, the company
determines whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month Expected Credit Loss
(ECL) is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognizing impairment loss allowance based
on 12 -month ECL.
Financial Liabilities
Financial liabilities of the Company are contractual obligation to deliver cash or another
financial asset to another entity or to exchange financial assets or financial liabilities with
another entity under conditions that are potentially unfavorable to the Company.
The Company’s financial liabilities include loans and borrowings, trade and other payables.
Classification, initial recognition and measurement
Financial liabilities are recognised initially at fair value minus, in the case of financial
liabilities not recorded at fair value through profit or loss, transaction costs that are directly
attributable to the issue of financial liabilities.
Subsequent measurement
After initial recognition, financial liabilities are subsequently measured at amortised cost
using the EIR method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the effective interest
rate (EIR). Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in the Statement of Profit and Loss over the period of the
borrowings using the EIR. Gains and losses are recognised in Statement of Profit and Loss
when the liabilities are derecognized.
The EIR amortisation is included as finance costs in the Statement of Profit and Loss.
De-recognition of financial liability
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference between the carrying amount
of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in Statement of Profit and Loss as other income or finance cost.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
2.12 Foreign Currency Translation
(a) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency
of the primary economic environment in which the Company operates (‘the functional
currency’). The financial statements are presented in Indian Rupees (Rupees or ₹), which is
the Company’s functional and presentation currency.
(b) Transactions and balances
Transactions in foreign currencies are initially recorded at the exchange rates prevailing on
the date of the transaction. Foreign currency monetary items are translated with reference
to the rates of exchange ruling on the date of the Balance Sheet. Non-Monetary items
denominated in foreign currency are reported at the exchange rate ruling on the date of
initial recognition of the non-monetary prepayment asset or deferred income liability, or the
date that related item is recognized in the financial statements, whichever is earlier. In case
the transaction is recognized in stages, then transaction date is established for each stage.
Exchange differences arising from foreign currency translation are recognized in the
Statement of Profit and Loss.
2.13 Income Tax
Income tax expense represents the sum of current and deferred tax. Tax is recognised in the
Statement of Profit and Loss, except to the extent that it relates to items recognised directly
in equity or other comprehensive income. In this case the tax is also recognised directly in
equity or in other comprehensive income.
Current income tax
The Current Tax is based on taxable profit for the year under the tax laws enacted and
applicable to the reporting period in the country where the company operates and
generates taxable income and any adjustment to tax payable in respect of previous years..
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the company’s financial statements and the corresponding tax bases used
in the computation of taxable profit and is accounted for using the Balance Sheet method.
Deferred tax assets are generally recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it is probable that future taxable
profits will be available against which those deductible temporary differences, unused tax
losses and unused tax credits can be utilised. The carrying amount of deferred tax assets is
reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available against which the temporary differences can
be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income taxes levied by the same tax
authority.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the
tax laws in India, which is likely to give future economic benefits in the form of availability
of set off against future income tax liability. MAT is recognised as deferred tax asset in the
balance sheet when the asset can be measured reliably and it is probable that the future
economic benefit associated with the asset will be realised.
2.14 Revenue
Revenue is measured based on the consideration specified in a contract with a customer
and excludes amounts collected on behalf of third parties. The Company recognizes
revenue when it transfers control over a product or service to a customer.
2.14.1 Revenue from Operations
Transmission Income is accounted for based on orders issued by CERC u/s 63 of Electricity
Act 2003 for adoption of transmission charges. As at each reporting date, transmission
income includes an accrual for services rendered to the customers but not yet billed i.e.
Unbilled Revenue.
Rebates allowed to beneficiaries as early payment incentives are deducted from the amount
of revenue.
The Transmission system incentive / disincentive is accounted for based on certification of
availability by the respective Regional Power Committees (RPC) and in accordance with the
Transmission Service Agreement (TSA) entered between the Transmission Service Provider
and long term Transmission Customers. Where certification by RPCs is not available,
incentive/disincentive is accounted for on provisional basis as per estimate of availability
by the company and differences, if any, is accounted upon certification by RPCs.
2.14.2 Other Income
Interest income is recognized, when no significant uncertainty as to measurability or
collectability exists, on a time proportion basis taking into account the amount outstanding
and the applicable interest rate, using the effective interest rate method (EIR).
Surcharge recoverable from trade receivables, liquidated damages, warranty claims and
interest on advances to suppliers are recognized when no significant uncertainty as to
measurability and collectability exists.
Scrap other than steel scrap and conductor scrap are accounted for as and when sold.
Insurance claims are accounted for based on certainty of realization.
Revenue from rentals and operating leases is recognized on an accrual basis in accordance
with the substance of the relevant agreement.
2.15 Dividends
Annual dividend distribution to the shareholders is recognised as a liability in the period in
which the dividends are approved by the shareholders. Any interim dividend paid is
recognised on approval by Board of Directors. Dividend payable and corresponding tax on
dividend distribution is recognised directly in equity.
2.16 Provisions and Contingencies
a) Provisions
Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. If the effect of the time value of
money is material, provisions are discounted. Unwinding of the discount is recognised in
the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each Balance
Sheet date and are adjusted to reflect the current best estimate.
b) Contingencies
Contingent liabilities are disclosed on the basis of judgment of the
management/independent experts. These are reviewed at each balance sheet date and are
adjusted to reflect the current management estimate.
Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made. Information on contingent liability is disclosed in the Notes to the Financial
Statements.
Contingent assets are possible assets that arise from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company. Contingent assets are disclosed in the
financial statements when inflow of economic benefits is probable on the basis of judgment
of management. These are assessed continually to ensure that developments are
appropriately reflected in the financial statements.

2.17 Share capital and Other Equity

Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
Self-insurance reserve is created @ 0.12% p.a. on Original Gross Block of Property, Plant
and Equipment and value of inventory except ROU assets and assets covered under
insurance as at the end of the year by appropriation of current year profit to mitigate future
losses from un-insured risks and for taking care of contingencies in future by procurement
of towers and other transmission line materials including strengthening of towers and
equipment of AC substation. The Reserve created as above is shown as “Self Insurance
Reserve” under ‘Other Equity’.
2.18 Prior Period Items
Material prior period errors are corrected retrospectively by restating the comparative
amounts for prior period presented in which the error occurred or if the error occurred
before the earliest period presented, by restating the opening statement of financial
position.
2.19 Earnings per Share
Basic earnings per share is computed using the net profit or loss for the year attributable to
the shareholders and weighted average number of shares outstanding during the year.
Diluted earnings per share is computed using the net profit or loss for the year attributable
to the shareholders and weighted average number of equity and potential equity shares
outstanding during the year, except where the result would be anti-dilutive.
2.20 Statement of Cash Flows
Statement of Cash Flows is prepared as per indirect method prescribed in the Ind AS 7
‘Statement of Cash Flows’.

3 Critical Estimates and Judgments

The preparation of financial statements requires the use of accounting estimates which may
significantly vary from the actual results. Management also needs to exercise judgment
while applying the company’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgment or
complexity, and of items which are more likely to be materially adjusted due to estimates
and assumptions turning out to be different than those originally assessed.
The areas involving critical estimates or judgments are:
Useful life of property, plant and equipment
The estimated useful life of property, plant and equipment is based on a number of factors
including the effects of obsolescence, demand, competition and other economic factors
(such as the stability of the industry and known technological advances) and the level of
maintenance expenditures required to obtain the expected future cash flows from the asset.
The Company reviews at the end of each reporting date the useful life of plant and
equipment and are adjusted prospectively, if appropriate.
Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made
in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’.
The evaluation of the likelihood of the contingent events has required best judgment by
management regarding the probability of exposure to potential loss. Should circumstances
change following unforeseeable developments, this likelihood could alter.
Estimates and judgments are periodically evaluated. They are based on historical
experience and other factors, including expectations of future events that may have a
financial impact on the company and that are believed to be reasonable under the
circumstances.
Estimation of uncertainties relating to the global health pandemic from COVID-19:
In assessing the recoverability of trade receivables and unbilled revenue, the company has
considered internal and external information up to the date of approval of these financial
statements including credit reports and economic forecasts. As the company’s revenue is
based on CERC tariff order and falls under essential services and based on the current
indicators of future economic conditions, the company expects to recover the carrying
amount of these assets.
Income Taxes:

Significant estimates are involved in determining the provision for current and deferred
tax, including amount expected to
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 4/Property, Plant and Equipment
(₹ in Lakh)
Cost Accumulated depreciation Net Book Value

Additions Additions Adjustment As at 31st

Particulars As at 1st Adjustme As at 31st As at 1st As at 31st As at 31st
during the Disposal during the Disposal during the March ,
April, 2020 nt during March , 2021 April, 2020 March , 2021 March 2020
year year year 2021
the year

Land
Freehold 6,218.01 56.18 - - 6,274.19 - - - - - 6,274.19 6,218.01
Buildings - - - -
a) Sub-Stations & Office 283.19 283.19 1.10 1.10 282.09 -
Roads & Bridges 49.52 49.52 0.19 0.19 49.33 -
Plant & Equipment - - - -
a) Transmission 1,01,520.04 1,01,520.04 523.23 523.23 1,00,996.81 -
b) Substation 37,089.23 37,089.23 143.42 143.42 36,945.81 -
c) Unified Load Despatch &
651.86 651.86 6.19 6.19 645.67 -
Communication
Furniture Fixtures 9.36 - - 9.36 1.56 0.59 - - 2.15 7.21 7.80
Workshop & Testing
5.52 - - 5.52 0.25 0.15 - - 0.40 5.12 5.27
Equipments
Office equipment 6.48 - - 6.48 0.46 0.41 - - 0.87 5.61 6.02
ROU Assets - Leasehold 1,425.37 - - 1,425.37 94.53 46.57 - - 141.10 1,284.27 1,330.84
Total 7,664.74 1,39,650.02 - - 1,47,314.76 96.80 721.85 - - 818.65 1,46,496.11 7,567.94

(₹ in Lakh)
Cost Accumulated depreciation Net Book Value

Initial
recognition/ Reclassific
Additions Adjustment Additions Adjustment
Particulars As at 1st Reclassificatio As at 31st As at 1st ation on Sale / As at 31st As at 31st As at 31st
during the Disposal during the during the during the
April, 2019 n on account March 2020 April, 2019 account of Disposal March 2020 March 2020 March, 2019
year year year year
of adoption of adoption of
Ind AS 116 Ind AS 116

Land
Freehold 5,866.40 351.61 - - 6,218.01 - - - - - 6,218.01 5,866.40
Leasehold Land 1,366.75 (1,366.75) - 47.90 (47.90) - - 1,318.85
Furniture Fixtures 9.36 - - - 9.36 0.97 0.59 - - 1.56 7.80 8.39
Vehicles - - - - -
Workshop & Testing
- 5.52 - - 5.52 0.25 - - 0.25 5.27 -
Equipments
Office equipment 1.59 4.89 - - 6.48 0.09 0.37 - - 0.46 6.02 1.50
ROU Assets - Leasehold 1,425.37 - - - 1,425.37 47.90 46.63 - - 94.53 1,330.84 -
Total 7,244.10 58.62 362.02 - - 7,664.74 48.96 - 47.84 - - 96.80 7,567.94 7,195.14
Further Note -
a) The Company owns 66.79 hectare (Previous Year 66.47 hectare) of land amounting to ₹ 7699.56 Lakh (Previous Year 7643.38 Lakh) out of which 33.20 hectare (Previous Year 32.88 hectare) of land amounting to ₹ 6274.19 Lakh
(Previous Year ₹ 6218.01 Lakh) has been classified as freehold land based on available documentation and 33.59 hectare (Previous Year 33.59 hectare) of ROU Asset- Leasehold land amounting to ₹ 1425.37 Lakh (In Previous Year ₹
1425.37 Lakh Lease hold land) based on available documentation.
b) b) Freehold land acquired by the company includes 33.20 hectare (Previous Year 32.88 hectare) amounting to ₹6274.19 Lakh (Previous Year ₹6218.01 Lakh) in respect of land acquired by the company for which mutation in revenue
records is pending
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 5/Capital Work in Progress
(₹ in Lakh)
As at 1st April Additions during Capitalised during As at 31st March ,
Particulars Adjustments
2020 the year the year 2021
Plant & Equipments (including associated civil works)
a) Transmission 90,548.49 72,534.11 - 85,603.21 77,479.39
b) Sub-Station 31,201.54 29,726.56 - 31,353.41 29,574.69
Expenditure Pending Allocation -
Expenditure During Construction Period (Net) (Note 23) 33,129.42 16,653.33 22,923.44 26,859.31
Sub Total 1,54,879.45 1,18,914.00 - 1,39,880.06 1,33,913.39
Construction Stores 98,997.10 75,142.10 23,855.00

Grand Total 2,53,876.55 1,18,914.00 75,142.10 1,39,880.06 1,57,768.39

(₹ in Lakh)
As at 1st April Additions during Capitalised during As at 31st March ,
Particulars Adjustments
2019 the year the year 2020
Plant & Equipments (including associated civil works)
a) Transmission 56,615.15 33,933.34 - - 90,548.49
b) Sub-Station 2,632.83 28,568.71 - - 31,201.54
Expenditure Pending Allocation -
Expenditure During Construction Period (Net) (Note 23) 14,743.15 18,386.27 - - 33,129.42
Sub Total 73,991.13 80,888.32 - - 1,54,879.45
Construction Stores 64,888.68 34,108.42 - 98,997.10

Grand Total 1,38,879.81 1,14,996.74 - 2,53,876.55

Note 5/Capital Work in Progress (Details of Construction Stores)

(At cost) (₹ in Lakh)

As at 31st March , As at 31st March ,

Particulars
2021 2020

Costruction Stores
Towers 3,412.54 29,749.77
Conductors 9,334.63 34,612.02
Other Line Materials 1,620.21 7,716.35
Sub-Station Equipments 8,243.00 23,601.76
High Voltage Direct Current (HVDC) Eqpnts - 14.42
Unified Load Despatch & Communication(ULDC) Materials 554.22 1,197.74
Telecom Materials 475.18 2,074.76
Others 215.22 30.28
TOTAL 23,855.00 98,997.10
Construction Stores include:
i)Material in Transit
Sub-Station Equipments - 2,209.84
Total - 2,209.84
Material with Contractors
Towers 3,412.54 29,749.77
Conductors 9,334.63 34,612.02
Other Line Materials 1,620.21 7,716.35
Sub-Station Equipments 8,243.00 21,391.92
High Voltage Direct Current (HVDC) Eqpnts - 14.42
Unified Load Despatch & Communication(ULDC) Materials 554.22 1,197.74
Telecom Materials 475.18 2,074.76
Others 215.22 30.28
Total 23,855.00 96,787.26
Grand Total 23,855.00 98,997.10
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 6/INTANGIBLE ASSETS
(₹ in Lakh)
Cost Accumulated depreciation Net Book Value
Additions Adjustment Additions Adjustment
Particulars As at 1st As at 31st As at 1st As at 31st As at 31st As at 31st
during the Disposal during the during the Disposal during the
April, 2020 March , 2021 April, 2020 March , 2021 March , 2021 March 2020
year year year year

Right of Way-Afforestation
- 1,764.98 - - 1,764.98 - 7.18 - - 7.18 1,757.80 -
Expenses

Total - 1,764.98 - - 1,764.98 - 7.18 - - 7.18 1,757.80 -

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 7/INTANGIBLE ASSETS UNDER DEVELOPMENT
(₹ in Lakh)
As at 1st April Additions during Capitalised during As at 31st March ,
Particulars Adjustments
2020 the year the year 2021

Right of Way-Afforestation expenses 1,478.77 9.99 - 1,478.76 10.00

-
Total 1,478.77 9.99 - 1,478.76 10.00

(₹ in Lakh)
As at 1st April Additions during Capitalised during As at 31st March ,
Particulars Adjustments
2019 the year the year 2020

Right of Way-Afforestation expenses 585.24 893.53 1,478.77

Total 585.24 893.53 - - 1,478.77

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note- 8/Other Non-Current Assets
(Unsecured considered Good unless otherwise stated) (₹ in Lakh)

As at 31st March As at 31st

Particulars
2021 March 2020

Advances for Capital Expenditure

Against Bank Guarantees 13.55 1,067.65
Others * 37.69 93.87

Total 51.24 1,161.52

* Advance against Land

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 9/Cash and Cash Equivalents

(₹ in Lakh)

As at 31st As at 31st
Particulars
March 2021 March 2020

Balance with Banks

-In Current accounts 3.73 3.68

Total 3.73 3.68

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note-10/OTHER CURRENT FINANCIAL ASSETS
(Unsecured Considered Good unless otherwise stated) (₹ in Lakh)

As at 31st March As at 31st

Particulars
2021 March 2020

Unbilled Revenue* 4,572.00 -

Receivable from Related Parties
M/s Power Grid Corp. of India Ltd.** 8.84 -

Total 4,580.84 -

* Unbilled Revenue includes Transmission Charges for the month of February & March in the Financial Year amounting to ₹ 4460.00 Lakh (Net of
Provision for Rebate) (Previous Year ₹ NIL) billed to beneficiaries in the month of April ,2021, Transmission Incentive of ₹ 112.00 Lakh (Previous Year
₹ Nil ) and Surcharge of ₹ Nil (Previous Year ₹ Nil) for the Period ended March 2021 to be billed in Upcoming period.

**Refer note number 33 for related Party transactions.

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 11/Equity Share capital

(₹ in Lakh)
Particulars As at 31st March , 2021 As at 31st March , 2020
Equity Share Capital
Authorised

600000000 (Previous year 600000000) equity share of ₹ 10/- each 60,000.00 60,000.00

Issued, subscribed and paid up

549630000 (Previous Year 289330000 ) equity shares of ₹ 10/- each fully paid
54,963.00 28,933.00
up
Total 54,963.00 28,933.00

Further Notes:
1) Reconciliation of Number and amount of share capital outstanding at the beginning and at the end of the reporting period
For the year ended 31st March , For the year ended 31st March ,
2021 2020
Particulars
No. of Shares ₹ in Lakh No. of Shares ₹ in Lakh

Shares outstanding at the beginning of the year 2893,30,000 28,933.00 10,000 1.00
Shares Issued during the year 2603,00,000 26,030.00 2893,20,000 28,932.00
Shares outstanding at the end of the year 5496,30,000 54963.00 2893,30,000 28933.00

2) The Company has only one class of equity shares having a par value of ₹ 10/- per share.

3) The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their shareholding at meetings of the
Shareholders.

4) Shareholders holding more than 5% equity shares of the Company :-

As at 31st March , 2021 As at 31st March , 2020

Particulars
No. of Shares % of holding No. of Shares % of holding
i) Power Grid Corporation of India Limited (Holding Company)* 549630000 100% 289330000 100%
* Out of 549630000 Equity shares (Previous year 289330000 Equity shares) 6 equity shares (Previous year 6 Equity Shares) are held by nominees of M/s Powergrid Corporation Of India
Limited on its behalf .
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 12/Other Equity

(₹ in Lakh)
As at 31st As at 31st
Particulars
March , 2021 March , 2020
Reserve & Surplus
(i) Self Insurance Reserve #
Balance at the Beginning of the Year
Additions During The Year 175.07
Balance at the End of the Year 175.07

Surplus (Balance in statement of Profit and Loss )

As per last balance sheet (0.18) (0.18)
Add: Additions -
Profit after tax as per Statement of Profit & Loss 1,914.71
Less: Appropriations
Transfer to Self Insurance Reserve 175.07
Closing Balance 1739.46 (0.18)

Total 1914.53 (0.18)

Further notes:
# Self Insurance Reserve
“Self-insurance reserve is created @ 0.12% p.a. on Original Gross Block of Property, Plant and Equipment and value of inventory except
ROU assets and assets covered under insurance as at the end of the year by appropriation of current year profit to mitigate future losses
from un-insured risks and for taking care of contingencies in future by procurement of towers and other transmission line materials
including strengthening of towers and equipment of AC substation.”
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 13/Borrowings
(₹ in Lakh)

As at 31st March , As at 31st March

Description
2021 , 2020

Term Loan From Others

Rupee Loans (Unsecured)
Loan From M/s Power Grid Corp. of India Ltd. (Holding Co.) 2,42,369.29 2,11,654.20

Less: Interest accrued on borrowings from

Related Parties - M/s Power Grid Corp. of India Ltd. 5,067.34 3,428.60

Total 2,37,301.95 2,08,225.60

Further Note -
Inter Corporate Loan is provided by the Holding Company on cost to cost basis carrying interest rate ranging from 5.95% To 8.36% and
the loan is repayable generally over a Period of 4 to 14 Year starting from 27-Sep-2022.
Refer note number 33 for related Party transactions.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 14/Other Non Current Financial Liability

(₹ in Lakh)
As at 31st As at 31st March ,
Particulars
March , 2021 2020
Others
Lease Liability ROU Assets 54.29 58.62

Total 54.29 58.62

Further Note -
Disclosure with regard to Micro and Small Enterprises as required under “The Micro, Small and Medium Enterprises Development Act,
2006” is given in Note 32
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 15/Deferred tax liabilities (Net)
(₹ in Lakh)
As at 31st March As at 31st March
Description
2021 2020

Deferred Tax Liability

Difference in book Depreciation and Tax Depreciation 2,838.01 -
Deferred Tax Liability (A) 2,838.01 -

Deferred Tax Assets

Unused Tax Losses (Income Tax Loss) 2,179.14 -
Deferred Tax Assets (B) 2,179.14 -

Net Deferred Tax Liability (Net) ( A-B) 658.87 -

Movements in Deferred Tax Liabilities (₹ in Lakh)

Property,
Plant and Total
Equipment
- -
Charged/(Credited)
- to Profit or Loss 2,838.01 2,838.01
- to Other Comprehensive Income - -
As at 31st March 2021 2,838.01 2,838.01

Movements in Deferred Tax Assets (₹ in Lakh)

Unused Tax
Total
Losses

Charged/(Credited)
- to Profit or Loss (2,179.14) (2,179.14)
As at 31st March 2021 (2,179.14) (2,179.14)

Amount taken to Statement of Profit and Loss

As at 31st March As at 31st March
Particulars
2021 2020
Increase/(Decrease) in Deferred Tax Liabilities 2,838.01 -
(Increase)/Decrease in Deferred Tax Assets (2,179.14)
Net Amount taken to Statement of Profit and Loss 658.87 -
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 16/Other Current Financial Liability

(₹ in Lakh)
As at 31st As at 31st March
Particulars
March 2021 2020
Interest accrued on borrowings from
Related Parties ** - M/s Power Grid Corp. of India Ltd. 5,067.34 3,428.60
5,067.34 3,428.60
Others
Dues for Capital Expenditure 592.54 7,927.70
Deposits/Retention money from contractors and others. 9,273.61 14,219.59
Related parties ** - M/s Power Grid Corp. of India Ltd. 523.41 729.07
Lease Liabilty 4.32 4.31
10,393.88 22,880.67

Total 15,461.22 26,309.27

Further Note -
Disclosure with regard to Micro and Small Enterprises as required under “The Micro, Small and Medium Enterprises Development Act,
2006” is given in Note 32
**Refer note number 33 for related Party transactions.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 17/Other current liabilities

(₹ in Lakh)
As at 31st As at 31st
Particulars
March 2021 March 2020

Statutory Dues 314.25 562.15

Total 314.25 562.15

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 18/REVENUE FROM OPERATIONS

(₹ in Lakh)
For the year For the year
Particulars ended 31st ended 31st
March 2021 March 2020

Transmission Charges 4,572.00 -

4,572.00 -
Less: Transferred to Expenditure during Construction(Net)-Note 23 - -
Total 4,572.00 -
Refer note 37 for Disclosure as per Ind AS 115 " Revenue from Contracts with Customers".
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 19/Other Income

(₹ in Lakh)
For the year For the year
Particulars ended 31st ended 31st
March 2021 March 2020

Interest from Advances to Contractors 38.38 314.83

Miscellaneous income 0.11 0.03

38.49 314.86
Less: Transferred to Expenditure during Construction(Net)-Note 23 38.49 314.86
Total - -
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 20/Finance Costs

(₹ in Lakh)
For the year For the year
Particulars ended 31st ended 31st March
March 2021 2020

A) i) Interest and finance charges on financial liabilities at amortised cost

Unwinding of discount on financial liabilities

Interest on Loan From Holding Co. (M/s Power Grid Corp. of India Ltd.)* 16,291.72 13,341.50
Interest on Lease liability 4.31 4.31

B) Other Finance charges

Others 0.97 -

16,297.00 13,345.81

Less: Transferred to Expenditure during Construction (Net) - Note 23 15,119.97 13,345.81

Total 1,177.03 -

***Refer note number 33 for related Party transactions.

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 21/Depreciation and amortization expense

(₹ in Lakh)

For the year For the year

Particulars ended 31st ended 31st March
March 2021 2020

Depreciation on Property, Plant & Equipments 675.28 1.21

Amortization of Intangible assets 7.18 -
Depreciation on ROU Assets 46.57 46.63
729.03 47.84

Less: Transferred to Expenditure during Construction (Net) - Note 23 42.16 47.84

Total 686.87 -
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 22/Other expenses

(₹ in Lakh)

For the year For the year

Particulars ended 31st ended 31st
March 2021 March 2020

Other Expenses
Repair and maintenance
Transmission Lines 84.25 -
Sub-Stations 26.05
Power Charges 0.21
Legal Expenses 11.88 319.99
Professional charges 0.66 -
Consultancy expenses 1,460.81 4,955.66
Payments to Statutory Auditors
Audit Fees 0.70 0.82
Tax Audit Fees 0.18 -
Advertisement and Publicity 2.83 -
Cost Audit and Physical verification Fees 0.12 -
CERC Petition Charges 5.00 5.00
Miscellaneous expenses 28.72 0.84
Security Expenses 24.04 -
Rates and taxes 18.97 24.96

1,664.21 5,307.48

Less: Transferred to Expenditure during Construction (Net) - Note 23 1,529.69 5,307.48

Total 134.52 -
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 23/ Expenditure during Construction (Net)

(₹ in Lakh)
For the year For the year
Particulars ended 31st ended 31st March
March 2021 2020
Other Expenses
Power Charges - 0.21
Legal Expenses 11.88 319.99
Professional charges 0.66
Consultancy expenses 1,460.81 4,955.66
Payment to Statutory Auditors
Audit Fees 0.81 0.82
Advertisement and Publicity 2.83
CERC Petition Charges 5.00 5.00
Miscellaneous expenses 28.73 0.84
Rates and taxes 18.97 24.96
Total 1,529.69 5,307.48

Depreciation/Amortisation
Depreciation on Plant,Property & Equipments 42.16 47.84
Total 42.16 47.84

Finance Costs
Indian Banks, Fin Inst. & Coprorations/ Related Party 15,115.78 13,341.50
Interest on Lease Liability 3.22 4.31
Other 0.97 -
Total 15,119.97 13,345.81

Less: Other Income

Miscellaneous income 0.11 0.03
Interest from Advance To Contractors 38.38 314.83
Total 38.49 314.86

Grand Total 16,653.33 18,386.27

POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 24/ Employee Benefit Obligations

The Company does not have any permanent employees. The personnel working for the company are from holding company on secondment basis and are working on time
share basis. The employee cost (including retirement benefits such as Gratuity, Leave encashment, post-retirement benefits etc.) in respect of personnel working for the
company are paid by holding company and holding company is raising the invoice to the Subsidiary company towards Consultancy charges.

Since there are no employees in the company, the obligation as per Ind AS 19 " Employee Benefits" does not arise. Accordingly, no provision is considered necessary for any
retirement benefit like gratuity, leave salary, pension etc., in the books of the company.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 25/ Fair Value Measurements (₹ in Lakh)

31-Mar-21 31-Mar-20
Financial instruments by category
Amortised Cost Amortised cost
Financial Assets
Cash & Cash Equivalents 3.73 3.68

Other Financial Assets

Current 4,580.84 .

Total Financial Assets 4,584.57 3.68

Financial Liabilities
Borrowings 2,42,369.29 2,11,654.20

Other Financial Liabilities

Non Current 54.29 58.62
Current 10,393.88 22,880.67
Total Financial Liabilities 2,52,817.46 2,34,593.49

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured at
amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs
used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting
standard. An explanation of each level follows underneath the table.

(₹ in Lakh)
Assets and liabilities which are
At 31 March
measured at amortised cost for which Level At 31 March 2020
2021
fair values are disclosed

Financial Assets - -
Total Financial Assets - -
Financial Liabilities
Borrowings 2 2,41,593.33 2,09,154.63
Deposits/Retention money from
2 - -
contractors and others.
Total Financial Liabilities 2,41,593.33 2,09,154.63

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity which are traded in the stock
exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives)
is determined using valuation techniques which maximise the use of observable market data and rely aslittle as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level3. This is the case for
unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.The company’s policy is to recognise transfers into and transfers out of fair value
hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:
•the fair value of the financial instruments is determined using discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2

(iii) Fair Value of Financial Assets and Liabilities measured at Amortised Cost (₹ in Lakh)
31-Mar-21 31-Mar-20
Carrying Carrying
Fair value Fair value
amount amount

Financial Assets - - - -
Total Financial Assets - - - -
Financial Liabilities
Borrowings 2,42,369.29 2,41,593.33 2,11,654.20 2,09,154.63
Total Financial Liabilities 2,42,369.29 2,41,593.33 2,11,654.20 2,09,154.63

The carrying amounts of cash and cash equivalents, other current Financial Assets and other current financial liabilities are considered to be the
same as their fair values, due to their short-term nature.The fair values of non-current borrowings are based on discounted cash flows using a
current borrowing rate. They are classified as level 2 fair values in the fair value hierarchy since significant inputs required to fair value an
instrument are observableFor financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 26/ Earnings Per Share

(in ₹)

(a) Basic earnings per share attributable to the equity holders of the company 31-Mar-2021 31-Mar-2020

Total Basic and Diluted earnings per share attributable to the equity holders of
0.51 -
the company from Continuing Operations

(₹ in Lakh)
(b) Reconciliation of earnings used as numerator in calculating earnings per
31-Mar-2021 31-Mar-2020
share
Total Earnings attributable to the equity holders of the company 1,914.71 -

(No. of Shares)
(c)Weighted average number of shares used as the denominator 31-Mar-2021 31-Mar-2020
Weighted average number of equity shares used as the denominator in
376335342 131813443
calculating basic earnings per share
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 27/ Capital Management

Risk Management
The company’s objectives when managing capital are to
• maximize the Shareholder Value
• safeguard its ability to continue as a going concern
• maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the company’s capital management, equity capital includes issued equity capital, and all other equity reserves attributable to
the equity holders of the company. The company manages its capital structure and makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, regulate investments in
new projects, return capital to shareholders or issue new shares.

The debt - equity ratio of the Company was as follows :

(₹ in Lakh)
Particulars 31-Mar-2021 31-Mar-2020
Long Term Debt 2,37,301.95 2,11,654.20
Equity 56,877.53 28,932.82
Long Term Debt to Equity Ratio 81:19 88:12

B) Dividend
Dividend not recognised at the end of reporting period
The Board of Directors on 01st June 2021 recommended the payment of Final Dividendof Rs. 0.30 per fully paid equity share. The Proposed
Dividend is subject to approval of shareholders in the ensuing Annual General Meeting.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD

Note 28/ Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings denominated in Indian rupees, and other payables. The main purpose
of these financial liabilities is to finance the Company’s capital investments and operations.

The Company’s activities expose it to the following financial risks, namely,

a) Credit risk,
b) Liquidity risk,
c) Market risk.
This note presents information regarding the company’s exposure, objectives, policies and processes for measuring and managing these risks.

The management of financial risks by the Company is summarized below: -

(A) Credit Risk

Credit risk arises from cash and cash equivalents carried at amortised cost.

(i) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

A default on a financial asset is when the counterparty fails to make contractual payments within 3 years of when they fall due. This definition of
default is determined considering the business environment in which the Company operates and other macro-economic factors.

Assets are written-off when there is no reasonable expectation of recovery, such as debtor declaring bankruptcy or failing to engage in a repayment
plan with the company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to
recover the receivable due. Where recoveries are made, these are recognized in the statement of profit and loss.

(i) Trade Receivables and Unbilled Revenue

The Company primarily provides transmission facilities to inter-state transmission service customers (DICs) comprising mainly state utilities
owned by State Governments. CERC tariff regulations allows payment against monthly bills towards transmission charges within a period of 45
days from the date of the bill and levy of charge on delayed payment beyond 45 days. A graded rebate is provided by the company for payment
made within 45 days.
Unbilled revenue primarily relates to companies right to consideration for work completed but not billed at the reporting date and have
substantially same risk characteristics as the trade receivables for the same type of contract.

Other Financial Assets

Cash and cash equivalents

The Company held cash and cash equivalents as on 31st March, 2021 of ₹ 3.73/- Lakh (Previous year: ₹ 3.68/- Lakh). The cash and cash
equivalents are held with public sector banks and high rated private sector banks and do not have any significant credit risk.

(i)Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

Rs in Lakh

Particulars 31st March, 2021 31st March, 2020

Financial assets for which loss allowance is measured using 12

months Expected Credit Losses (ECL)

Cash and cash equivalents 3.73 368

Total 3.73 368

Financial assets for which loss allowance is measured using Life
time Expected Credit Losses (ECL)

Unbilled Revenue 4572.00 0.00

Total 4572.00 0.00

(ii) Provision for Expected Credit Losses
(a) Financial assets for which loss allowance is measured using 12 month expected credit losses
The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. At
initial recognition, financial assets (excluding trade receivables and unbilled revenue) are considered as having negligible credit risk and the risk
has not increased from initial recognition. Therefore, expected credit loss provision is not required.

(b) Financial assets for which loss allowance is measured using life time expected credit losses
The Company has customers most of whom are state goverment utilities with capacity to meet the obligations and therefore the risk of default is
negligible. Further management belives that the unimpaired amounts that are 30 days past due date are still collectible in full, based on the
payment security mechanism in place and historical payment behaviour.

Considering the above factors and the prevalent regulations, the trade receivables and unbilled revenue continue to have a negligible credit risk on
initial recognition and thereafter on each reporting date.

(B) Liquidity Risk

Liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due. The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company has
entered into an agreement with the holding company for providing funds for the completion of the project

Management monitors rolling forecasts of the Company’s liquidity position comprising the undrawn borrowing facilities below and cash and cash
equivalents on the basis of expected cash flows.

The Company depends on both internal and external sources of liquidity to provide working capital and to fund capital expenditure.

(i) Financing Arrangements

The company had access to the borrowing facilities with the Parent Company as per Agreement at the end of the reporting period.

(ii) Maturities of Financial Liabilities

The tables below analyse The company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-
derivative financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows.

(₹ in Lakh)
Contractual Maturities of Financial Between 1 and 2 Between 2 and 5
Within 1 Year Beyond 5 Years Total
Liabilities: years years
31-Mar-21
Non-Derivatives
Borrowings 21,898.13 45,676.65 1,27,761.87 1,71,757.47 3,67,094.12
Other Financial Liabilities 10,389.56 - - - 10,389.56
Total Non-Derivative Liabilities 32,287.69 45,676.65 1,27,761.87 1,71,757.47 3,77,483.68

31-Mar-20
Non-derivatives
Borrowings 15,785.64 16,008.22 94,151.60 2,17,276.99 3,43,222.45
Other Financial Liabilities 22,876.36 - - - 22,876.36
Total Non-Derivative Liabilities 38,662.00 16,008.22 94,151.60 2,17,276.99 3,66,098.81

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risk comprises following types of risk:

i. Currency risk
ii.Interest rate risk

i) Currency risk
As on Reporting date the Company does not have any exposure to currency risk in respect of foreign currency denominated loans and borrowings.
The company is exposed to currency risk mainly due to procurement of goods and services.

ii) Interest rate risk

The company has taken borrowings from Parent Company on cost to cost basis. The Company is exposed to interest rate risk because the cash
flows associated with floating rate borrowings. The various sources of loans being extended to the company by parent company are Fixed interest
and floating interest rate which get reset periodically. The Company manages the interest rate risks by maintaining a debt portfolio of fixed and
floating rate borrowings.
POWERGRID MEDINIPUR JEERAT TRANSMISSION LTD
Note 29/Income Tax Expense
This Note provides an analysis of the Company’s Income Tax Expense, and how the Tax Expense is affected by

(a) Income Tax Expense (₹ in Lakh)

For the Year ended For the Year ended
Particulars 31st March 2021 31st March 2020

Deferred Tax
Origination and reversal of temporary differences 658.87 -

Total Deferred Tax Expense/(Benefit) 658.87 -

Income Tax Expense 658.87 -

(b) Reconciliation of Tax Expense and the Accounting Profit multiplied by India’s Domestic Tax Rate:
(₹ in Lakh)
For the Year ended For the Year ended
Particulars 31st March 2021 31st March 2020

Profit Before Tax 2,573.58 -

Tax using company's domestic Tax Rate i.e. 25.168% - -

Tax Effect of :
Deferred Tax 658.87 -

Tax Expenses recognise in statement of Profit & Loss 658.87 -

- -
Note 30.

Balances of Advances for Capital Expenditure Shown under Other Non-Current Assets (Note-8) &
Dues for Capital Expenditure Shown under Other Current Financial Liabilities (Note-16) include
balances subject to confirmation/reconciliation and consequential adjustments if any. However
reconciliations are carried out on ongoing basis and Balance Confirmation are carried out on
balances as on 31stMarch 2021.

Note 31.
Borrowing Cost of ₹ 15119.97/-Lakh (Previous Year ₹13345.81/- Lakh) has been adjusted in the
Property Plant & Equipment (PPE) / Capital Work in Progress (CWIP) as per Ind AS 23-
“Borrowing Costs”.

Note 32.

Based on information available with the company, there are No Suppliers/Service providers who are
registered as Micro, Small or Medium Enterprise under The Micro, Small and Medium Enterprises
Development Act,2006 (MSMED Act, 2006). Information in respect of Micro, Small or Medium
Enterprise as required by MSMED Act, 2006 is given as under:

Sr. Current Previous

Particulars
No. Year Year

Principal amount and interest due thereon remaining unpaid to

1 any supplier as at end of each accounting year:
Nil Nil
Principal
Nil Nil
Interest

The amount of Interest paid by the buyer in terms of section 16 of

2 the MSMED Act, 2006 along with the amount of the payment
Nil Nil
made to the supplier beyond the appointed day during each
accounting year
The amount of interest due and payable for the period of delay in
3 making payment (which have been paid but beyond the
Nil Nil
appointed day during the year) but without adding the interest
specified under MSMED Act, 2006
4 The amount of interest accrued and remaining unpaid at the end
Nil Nil
of each accounting year.
The amount of further interest remaining due and payable even
in the succeeding years, until such date when the interest dues as
5
above are actually paid to the small enterprise for the purpose of Nil Nil
disallowance as a deductible expenditure under section 23 of the
MSMED Act 2006
Note 33: Related Party Transactions
a) Holding Co.

Proportion of Ownership
Interest
Place of 31st March,
31st March,
Name of entity business/country of 2020
2021
incorporation
Power Grid Corporation of India Limited India 100% 100%

b) List of Fellow Subsidiaries Co. (Subsidiary Co. of Holding Co.)

Proportion of
Ownership Interest
Name of entity Place of 31st 31st
business/country March, March,
of incorporation 2021 2020
PowergridVizag Transmission Limited India N.A N.A
Powergrid NM Transmission Limited India N.A N.A
PowergridUnchahar Transmission Limited India N.A N.A
Powergrid Kala Amb Transmission Limited India N.A N.A
Powergrid Jabalpur Transmission Limited India N.A N.A
PowergridWarora Transmission Limited India N.A N.A
PowergridParli Transmission Limited India N.A N.A
Powergrid Southern Interconnector Transmission System N.A N.A
India
Limited
PowergridVemagiri Transmission Limited India N.A N.A
PowergridMithilanchal Transmission Limited (erstwhile N.A N.A
India
ERSS XXI Transmission Limited)
Powergrid Varanasi Transmission System N.A N.A
India
Limited(erstwhile WR-NR Power Transmission Limited )
PowergridJawaharpur Firozabad Transmission Limited N.A N.A
India
(erstwhile JawaharpurFirozabad Transmission Limited)
PowergridKhetri Transmission System Limited (Erstwhile N.A N.A
India
Khetri Transco Limited)
Powergrid Bhuj Transmission Limited (Erstwhile Bhuj-II N.A N.A
India
Transmission Limited)
Powergrid BhindGuna Transmission Limited (Erstwhile N.A N.A
India
BhindGuna Transmission Limited)
Powergrid Ajmer Phagi Transmission Limited (Erstwhile N.A N.A
India
Ajmer Phagi Transco Limited)
Powergrid Fatehgarh Transmission Limited (Erstwhile N.A N.A
India
Fatehgarh-II Transco Limited)
Powergrid Rampur Sambhal Transmission Limited N.A N.A
India
(Erstwhile Rampur Sambhal Transco Limited)
Powergrid Meerut Simbhavali Transmission Limited N.A N.A
India
(Erstwhile Meerut-Simbhavali Transmission Limited)
Central Transmission Utility of India Limited 1 India N.A N.A
Powergrid Ramgarh Transmission Limited (Erstwhile N.A N.A
India
Ramgarh New Transmission Limited) 2
Jaypee Powergrid Limited 3 India N.A N.A
Bikaner-II Bhiwadi Transco Limited 4 India N.A N.A
1 Incorporated on 28.12.2020.
2 100% equity acquired from REC Power Distribution Company Limited on 09.03.2021.
3 Wholly owned subsidiary from 25.03.2021 (Joint venture till 24.03.2021).
4 100% equity acquired from PFC Consulting Limited on 25.03.2021.
c) List of Fellow Joint Ventures (JVs of Holding Co.)

Proportion of
Ownership Interest
Name of entity Place of 31st 31st
business/coun March, March,
try of 2021 2020
incorporation
Powerlinks Transmission Limited India N.A N.A
Torrent Power Grid Limited India N.A N.A
Jaypee Powergrid Limited 1 India N.A N.A
Parbati Koldam Transmission Company Limited India N.A N.A
Teestavalley Power Transmission Limited 2 India N.A N.A
North East Transmission Company Limited India N.A N.A
National High Power Test Laboratory Private Limited India N.A N.A
Bihar Grid Company Limited India N.A N.A
KalingaVidyutPrasaran Nigam Private Limited 3 India N.A N.A
Cross Border Power Transmission Company Limited India N.A N.A
RINL Powergrid TLT Private Limited 4 India N.A N.A
Power Transmission Company Nepal Ltd Nepal N.A N.A
1 Joint venture till 24.03.2021 (Wholly owned subsidiary from 25.03.2021).
2 POWERGRID & Teesta Urja Ltd are the Joint venture partners in Teestavalley Power Transmission Limited & holds 26% & 74 % equity,
respectively as per Shareholding agreement. On call of additional equity by Teestavalley Power Transmission limited, POWERGRID
contributed their share while the other JV partner has not yet contributed their share of money. Consequently, the holding of POWERGRID
increased to 30.92% against 26% provided in shareholding agreement.
3 The present status of the Company (M/s KBPNL) as per MCA website is "Strike Off”.
4 POWERGRID’s Board of Directors in its meeting held on 01.05.2018 accorded in principle approval to close RINL Powergrid TLT Private
Limited (RPTPL) and seek consent of other JV Partner Rashtriya Ispat Nigam Limited (RINL). RINL's Board of Directors in its meeting held
on 01.03.2019 has agreed in principle for winding up proceedings of RPTPL & to seek the approval from Ministry of Steel, Government of
India, for closure of RPTPL. RINL's Board of Directors in its meeting held on 05.11.2019 has advised to put up the closure proposal again to
Ministry of steel for onward submission to NITI Ayog. The Approval from Government is awaited.

d) List of Key Management Personnel

Name Designation Date of Appointment

Shri R.K. Chauhan Chairman & Director 22.01.2019 to 31.10.2020

Shri K.S.R Murty Director 15.03.2018 to 31.07.2020

Shri Abhay Choudhary Director w.e.f 07.05.2018 and Continuing

Shri Abhay Choudhary Chairman & Director w.e.f 28.12.2020 and Continuing

Shri Rajesh Kumar Director w.e.f 30.12.2019 and Continuing

Shri A.K. Maiti Director w.e.f 19.02.2020 and Continuing

Shri Seema Gupta Director w.e.f 22.05.2020 and Continuing

Shri B. Dash Director w.e.f 10.08.2020 and Continuing

Shri N.L. Dhar CFO w.e.f 30.12.2019 and continuing

Shri Mrinal Shrivastava Company Secretary w.e.f 04.01.2020 and Continuing

(e) Transactions with related parties

The following transactions occurred with related parties:

(₹ in Lakh)
As on 31st As on 31st
Particulars
March 2021 March, 2020
Power Grid Corporation of India Ltd. (Holding
Company)
Consultancy Charges & O&M maintenance (excluding
1331.44 4199.71
Taxes)
Loan received during the year 29076.35 81248.08
Investments Received during the year (Equity) 26030.00 28932.00
Interest on Loan 16291.72 13341.50
Reimbursement of BG extension charges (excluding 24.34 -
taxes)

(f) Outstanding balances arising from sales/purchases of goods and services

The following balances are outstanding at the end of the reporting period in relation to transactions
with related parties:

(₹ in Lakh)

As on 31st March As on 31st March,

Particulars
2021 2020
Power Grid Corporation of India Ltd. (Holding
Company)

Purchases of goods and services – O&M Maintenance

/ Consultancy 523.41 729.07

Loans from Holding Company 237301.95 208225.60

Interest Accrued on Loan 5067.34 3428.60

Amount recoverable from Holding company (payment
received on 02.04.2021) 8.84 -

Note 34.Segment Information

Business Segment

The Board of Directors is the company's Chief operating decision maker who monitors the operating
results of its business segments separately for the purpose of making decisions about resource allocation
and performance assessment. The Company has Single Reportable Segment i.e. Transmission, identified
on the basis of product/services.
The operations of the company are mainly carried out within the country and therefore there is no
reportable geographical segment.
Note 35.Capital and other Commitments

(₹ in Lakh)
Particulars As at 31 March, 2021 As at 31 March, 2020

Estimated amount of contracts remaining to be

executed on capital account and not provided for
9544.39 33095.72
(Net of Advances)

Note 36.Contingent Liabilities and Contingent Assets

Contingent Liabilities:

Claims against the Company not acknowledged as debts in respect of:

The contingent liabilities for land compensation of ₹250.00 Lakh (previous year ₹250.00 Lakh) has been
estimated.

Note 37. Disclosure on Ind AS 115 “Revenue from Contracts with Customers

(a) The following table discloses the movement in unbilled revenue during the period ended 31st
March, 2021 and 31st March 2020.
(₹ in Lakh)

For the Year

For the year ended
Particulars ended 31st March,
31st March, 2021
2020

Balance at the beginning - -

Add: Revenue recognised during the period 4572.00 -

Less: Invoiced during the period - -

Less: Impairment/reversal during the period - -

Add: Translation gain/(Loss) - -

Balance at the end 4572.00 -

(b) The Company does not have any contract liability during the period ended 31st March, 2021
and 31st March 2020.

(c) The entity determines transaction price based on expected value method considering its past
experiences of refunds or significant reversals in amount of revenue. In estimating significant
financing component, management considers the financing element inbuilt in the transaction
 price based on imputed rate of return. Reconciliation of revenue recognized vis-a-vis revenue
recognized in profit or loss statement is as follows :

(₹ in Lakh)

For the year For the Year

Particulars ended 31st ended 31st
March, 2021 March, 2020

Contracted price 4460.00 -

Add/ (Less)- Discounts/ rebates provided to

- -
customer

Add/ (Less)- Performance bonus 112.00 -

Add/ (Less)- Adjustment for significant financing

- -
component

Add/ (Less)- Other adjustments - -

Revenue recognized in profit or loss statement 4572.00 -

Note 38.Ind AS 116 – Leases

a) As a Lessee:-
The company only has Lease hold land which has been assessed and accounted as per the
requirements of Ind AS 116 – “Leases” and required disclosures as per the said Ind AS are as follows:

(i) ROU Assets:

Additions, termination/disposal and depreciation charge on right of use assets for the year and
carrying amount of the same as at the end of the financial year by class of underlying asset is been
disclosed in note no 4 as a separate line item.

(ii) Lease Liabilities:

Interest expense on lease liabilities for the year is shown under note no 20 and total cash outflow for
leases for the year has been disclosed in statement of cash flow under financing activities as separate
line item and maturity analysis of lease liabilities has been disclosed in note no 14.

(iii) Short term leases and Low value leases:

The company does not have any short term and low value leases.

b) As a Lessor:-
The company does not have any lease arrangements as a lessor

Note 39. Auditors Remuneration (Including Taxes)

(₹ in Lakh)
For the year ended For the year ended
S. No. Particulars
31st March, 2021 31st March, 2020
 1 Audit Fees 0.70 0.82

2 Tax Audit 0.18 -

Total 0.88 0.82

Note 40. Disclosure of material impact of Covid-19 pandemic

A) Disclosure on Covid-19 Impact
The company is mainly engaged in the business of transmission of electricity and the tariffs for the
transmission services are regulated in terms of the CERC Tariff Regulations which provide for recovery
of the annual transmission charges based on system availability. As per the Government of India
guidelines, transmission units and services fall under the category of essential services and exempted
from lockdown.
The company has considered various internal and external information available up to the date of
approval of Financial Results and there has been no material impact on the operations of the company for
the year ended 31st March 2021. The company will continue to monitor any material changes to future
economic conditions.

B) Recent Pronouncements
The Ministry of Corporate Affairs ("MCA") through a notification dated March 24, 2021, has amended
Division II of Schedule III of the Companies Act, 2013 w.e.f. April 1, 2021. The Company will assess and
implement the amendments to Division II in FY 2021-22, as applicable.

Note 41. Previous Year Figures

(a) The Previous Year’s Figures have been reclassified/re-grouped wherever necessary

(b) Figures have been rounded off to nearest rupees in Lakh upto two decimal.

As per our report of even date For and on behalf of Board Of Directors
For Jain Seth & Company
Chartered Accountants
FRN-002069W

Ramaka Digitally signed

by Ramakant Abhay Digitally signed Digitally signed
Ravisank by Ravisankar
by Abhay
nt Sureka
Date: 2021.06.01 Choudha Choudhary ar Ganesan
Date:
Sureka 20:32:36 +05'30'
ry
Date: 2021.06.01
18:11:22 +05'30' Ganesan 2021.06.01
18:08:00 +05'30'

Ramakant Sureka Abhay Choudhary G. Ravisankar

Partner Chairman Director
M.No. 056451 DIN: 07388432 DIN: 08816101
Place: Gurgaon Place: Gurgaon
SUDHANSH Digitally signed by
SUDHANSHU KUMAR MRINAL Digitally signed by
MRINAL
U KUMAR MISHRA SHRIVASTA SHRIVASTAVA
Date: 2021.06.01 Date: 2021.06.01
MISHRA 18:03:19 +05'30' VA 18:05:27 +05'30'

(Sudhanshu Kumar Mishra) (Mrinal Shrivastava)

CFO Company Secretary
Place: Kolkata Place: Gurgaon

Place: Kolkata
Date: 01.06.2021 Date: 01.06.2021
 Compliance Certificate

We have conducted the audit of annual stand-alone accounts of M/s POWERGRID

MEDINIPUR JEERAT TRANSMISSION LIMITED for the year ended 31st March 2021 in
accordance with the directions / sub – directions issued by the C&AG of India under
section 143(5) of the Companies Act, 2013 and certify that we have complied with all the
direction/Sub-directions issued to us.

For M/s Jain Seth & Company,

Chartered Accountants
Firm Regn.No-002069W
Digitally signed
Ramakan by Ramakant
Sureka
t Sureka Date: 2021.06.01
19:50:44 +05'30'

Ramakant Sureka
Partner
M. No.:-056451

Dated: - 01.06.2021
Place: - Kolkata
 INDEPENDENT AUDITOR’S REPORT

To the Members of M/s POWERGRID MEDINIPUR JEERAT TRANSMISSION LIMITED

Report on the Ind-AS Financial Statements

Opinion
We have audited the accompanying Ind AS Financial Statements of M/s POWERGRID
MEDINIPUR JEERAT TRANSMISSION LIMITED (“the Company”), which comprise the Balance
Sheet as at 31st March 2021, and the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended,
and a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Ind AS financial statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the company as at 31st March 2021, statement of Profit &
Loss A/c (including other comprehensive income), its changes in equity and its cash flows for the
year ended on that date.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our report.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant to our audit

Ramakan Digitally signed by

Ramakant Sureka 1
t Sureka Date: 2021.06.01
19:52:11 +05'30'
of the financial statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these Ind AS 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”) prescribed under Section 133 of the Act, read with relevant rules issued there under.
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
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and the
Rules made there under and the Order issued under section 143 (11) of the Act.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the Ind AS financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the Ind AS financial

2
Ramakan Digitally signed by
Ramakant Sureka

t Sureka Date: 2021.06.01

19:59:14 +05'30'
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company’s preparation of the Ind AS financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the Company’s Directors, as well as
evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the
Central Government of India in terms of Section 143(11) of the Act, we give in “Annexure “A”
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.

2. In terms of sub section (5) of section 143 of the Companies Act, 2013, we give in the Annexure
“B”a statement on the directions issued under the aforesaid section by the Comptroller and
Auditor General of India.

3. As required by Section 143 (3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.

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

Digitally signed

3 Ramakan by Ramakant
Sureka
t Sureka Date: 2021.06.01
19:54:06 +05'30'
 d. In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act, read with the relevant
rules issued thereunder.

e. Being a Subsidiary of a Government Company, Section 164(2) of the Act pertaining to

disqualification of Directors are not applicable to the Company.

f. With respect to the adequacy of the Internal Financial Controls over Financial
Reporting of the Company and the Operating Effectiveness of such Controls, refer to
our separate report in Annexure “C”.

g. 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, 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 Ind AS financial statements – Refer Note No. 36 to the Ind AS
financial statements;
ii. The Company did not have any Long-Term Contracts including Derivative
Contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.

For Jain Seth & Company,

Chartered Accountants
Firm Regn. No. 002069W
Ramakan Digitally signed by
Ramakant Sureka

t Sureka 19:54:46 +05'30'

Date: 2021.06.01

Ramakant Sureka
Partner
Mem. No. 056451
UDIN: 21056451AAAACH6609
Place: Kolkata
Date: 01.06.2021

4
 Annexure – “A”

As referred to in our Independent Auditors’ Report to the members of the M/s POWERGRID
MEDINIPUR JEERAT TRANSMISSION LIMITED (‘the Company’) on the Financial
Statements for the Year Ended 31st March, 2021, we report that:

(i) (a) The Company has maintained records, showing full particulars including quantitative details
and situation of Fixed Assets.

(b) Land , Buildings, Road & Bridges, Plant & Equipment Furniture and fixtures and Office
equipment are the only Fixed Asset. Physical Verification of Fixed Assets are conducted during the
year.

(c) The Company is having leasehold land of 33.59 hectares valuing Rs. 14.25 Crore for which the
lease deed is already executed.

(d) The Company is having freehold land of 33.20 hectares valuing Rs. 62.74 Crore for which the
title deed is executed but mutation in revenue records is pending.

(ii) The company does not hold any inventories as on 31.03.21 hence clause (ii) of paragraph 3 of
the order is not applicable.

(iii) The Company has not granted any Loans secured or unsecured to companies, firms or other
parties Covered in the Register maintained under section 189 of the Companies Act, 2013.

(iv) According to the information and explanations given to us, the Company has not given any
loans, investments guarantees and securities. Accordingly clause 3(iv) of the Order is not
applicable.

(v) The company has not accepted any deposits from Public and hence the directives issued by the
Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the
act and the Companies (Acceptance of Deposits ) Rules, 2015 with regard to the deposits accepted
from the public are not applicable.

(vi) There is no such Cost Records specified by Central Government u/s 148 of the Companies Act,
2013.

(vii) (a) According to the information and explanations given to us, the Company is regular in
depositing undisputed statutory dues with appropriate authorities including Income 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 31st
March, 2021 for a period of more than six months from the date they became payable.

(b) Based on our audit and explanations given to us, there are no disputed dues of Duty of
Customs or Duty of Excise of Sales Tax which have not been deposited.

Digitally signed
Ramakan by Ramakant
Sureka Page 1 of 2
t Sureka Date: 2021.06.01
19:55:15 +05'30'
 (viii) According to the information and explanations given to us, the company has not taken any
loan from any financial institution or bank or debenture holders, hence clause (viii) of paragraph 3
of the order is not applicable.

(ix) The company has not raised Money by way of IPO & FPO including debt instruments.
However, Loan from holding Company are applied for the purposes for which they are raised.

(x) Based on our audit Procedures performed and the information and explanations given by the
management, we report that no fraud by the company or on the company by its officers or
employees has been noticed or reported during the year.

(xi) Based on our audit Procedures performed and the information and explanations given by the
management, Managerial Remuneration & Other Payments relating to Staff are made from Holding
Co. Henc eclause (xi) of paragraph 3 of the order is Not Applicable.

(xii) The company is not an Nidhi company as prescribed U/s 406 of the act. Accordingly clause
(xii) of paragraph 3 of the order is not applicable.

(xiii) All transactions with the “Related Parties” in compliance with sections 177 and 188 of the
Companies Act, 2013 are disclosed.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully
or partly convertible debentures during the year under review.

(xv) Based on our audit Procedures performed and the information and explanations given by the
management, the company has not entered into any non-cash transactions with directors or persons
connected with him.

(xvi) The Co. is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934 as the Co. is not a NBFC.

For Jain Seth & Company,

Chartered Accountants
Firm Regn. No. 002069W
Ramakan Digitally signed by
Ramakant Sureka

t Sureka 19:55:56 +05'30'

Date: 2021.06.01

Ramakant Sureka
Partner
Mem. No. 056451
Place: Kolkata
Date: 01.06.2021

Page 2 of 2
 Annexure – “B”
As referred to in our Independent Auditors’ Report to the Members of the M/s POWERGRID MEDINIPUR JEERAT
TRANSMISSION LIMITED (‘The Company’), on the Financial Statements for the Year Ended 31st March 2021 issued by the
Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013, we report that:
Impact on
S.
Directions Auditors Comments Action Taken By Management Financial
No.
Statements
All accounting transaction of the Company
Whether the Company has system in place to
are processed through the ERP (SAP System)
process all the accounting transactions through
that has been implemented by the Company.
IT system? If yes, the implications of processing
1. No Accounting transaction is being recorded N/A Nil
of accounting transactions outside IT system on
/ processed otherwise than through the ERP
The integrity of the accounts along with the
system in place. Hence no further disclosure
financial implications, if any, may be stated.
is required in this regards.
Whether there is any restructuring of an
existing loan or cases of waiver/write off of
debts/loans/interest etc. made by a lender to There are no cases of restructuring of
2. N/A Nil
the company due to the company’s inability to existing loan or cases of waiver / write off of
repay the loan? If yes, the financial impact may debts / loans / interest etc.
be stated.

Whether funds received/receivable for specific

No fund has been received from
schemes from Central/State agencies were
3. Central/State agencies. N/A Nil
properly accounted for/utilized as per its term
and conditions? List the cases of deviation.

For Jain Seth & Company,

Chartered Accountants
Firm Regn. No. 002069W
Ramakant Digitally signed by
Ramakant Sureka

Sureka Date: 2021.06.01

19:56:25 +05'30'

Ramakant Sureka
Partner
Mem. No. 056451
Place: Kolkata
Date: 01.06.2021
 ANNEXURE – “C”

As referred to in our Independent Auditors’ Report to the members of the M/s

POWERGRID MEDINIPUR JEERAT TRANSMISSION LIMITED (“the Company”), on
the Financial Statements for the year ended 31st March 2021

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

We have audited the Internal Financial Controls over Financial Reporting of the company as at
31stMarch 2021 in conjunction with our audit of the Financial Statements of the Company for the
year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining Internal Financial
Control based on “the Internal Control over Financial Reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
Chartered Accountants of India (ICAI)”. These responsibilities include the Design,
Implementation and Maintenance of Adequate Internal Financial Controls that were Operating
Effectively for ensuring the orderly and efficient conduct of business, including adherence to
Company’s 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 Company’s Internal Financial Controls over
Financial Reporting 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, both 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 was
established and maintained and if such controls operated effectively in all material respects.

Ramakan Digitally signed by

Ramakant Sureka

t Sureka 19:57:10 +05'30'

Date: 2021.06.01
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
Internal Financial Controls System over Financial Reporting and their Operating Effectiveness.
Our audit of Internal Financial Controls over Financial Reporting included obtaining an
understanding of Internal Financial Controls over Financial Reporting, assessing the risk that a
material weakness exists and testing and evaluating the design and operating effectiveness of
Internal Control based on the assessed risk. The procedures selected depend on the Auditor’s
Judgement, including the Assessment of the Risks of Material Misstatement of the Financial
Statements, whether due to Fraud or Error.

We believe that the Audit Evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company’s Internal Financial Controls System over Financial
Reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s Internal Financial Control over Financial Reporting 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 company’s Internal Financial Control over Financial Reporting 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 disposition of the Company’s Assets that could have a material effect on the
Financial Statements.

Digitally signed
Ramakan by Ramakant
Sureka
t Sureka Date: 2021.06.01
19:57:44 +05'30'
Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects, an adequate Internal Financial
Controls System over Financial Reporting and such Internal Financial Controls over Financial
Reporting were operating effectively as at 31st March 2021, based on “the Internal Financial
Controls over Financial Reporting criteria established by the Company considering the essential
components of Internal Control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.”

For Jain Seth & Company,

Chartered Accountants
Firm Regn. No. 002069W
Digitally signed
Ramakan by Ramakant
Sureka
t Sureka Date: 2021.06.01
19:58:21 +05'30'

Ramakant Sureka
Partner
Mem. No. 056451
Place: Kolkata
Date: 01.06.2021