Auditor Report of Hitachi Energy India Ltd.

Mar 31, 2025

We have audited the accompanying financial statements
of Hitachi Energy India Limited (âthe Companyâ), which
comprise the Balance sheet as at March 31, 2025, the
Statement of Profit and Loss, including the statement of
Other Comprehensive Income / (Loss), the Cash Flow
Statement and the Statement of Changes in Equity for the
year then ended, and notes to the financial statements,
including a summary of material 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
financial statements give the information required by
the Companies Act, 2013, as amended (âthe Actâ) 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 March 31, 2025, its profit including other
comprehensive income / (loss), its cash flows and the
changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the financial statements
in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further
described in the âAuditor''s Responsibilities for the Audit
of the Financial Statements'' section of our report.

We are independent of the Company in accordance
with the âCode of Ethics'' issued by the Institute of
Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of
the financial statements under the provisions of the
Act and the Rules thereunder, 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 audit opinion on
the financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements for the financial year
ended March 31, 2025. These matters were addressed
in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. For
each matter below, our description of how our audit
addressed the matter is provided in that context.

We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor''s responsibilities for the audit of the financial
statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures,
including the procedures performed to address the
matters below, provide the basis for our audit opinion
on the accompanying financial statements.

Key audit matters	How our audit addressed the key audit matter
Revenue recognition for long term projects and contract estimates
(as described in Note 2.3.1(d), 2.6, 15, 23 and Note 38 of the accompanying financial statements)
A significant portion of the Company''s business comprises of	In	view of the significance of the matter we applied the
long-term fixed price projects. Revenue from these contracts	following audit procedures in this area, among others to obtain
is recognized in accordance with the principles laid down in	sufficient appropriate audit evidence:
Ind AS 115, Revenue from Contracts with Customers and as detailed in âmaterial accounting policiesâ of the financial	_â¢	We assessed the revenue recognition accounting policies
statements.		by comparing with applicable accounting standards.
In accordance with Ind AS 115, the Company classifies its	_â¢	We tested key controls (both design and operating
various contracts with customers and determines whether		effectiveness) with respect to revenue recognition and
revenue should be recognized at âpoint in timeâ or âover the		related cost estimations.
timeâ basis.	_â¢	We carried out analytical procedures on revenue recognized
There are various areas involving complexities, judgements		during the year ended to identify unusual variances.
and estimates involved in accounting for revenue recognized	_â¢	We performed substantive testing by selecting samples of
on âover the timeâ basis, including:		revenue transactions, recorded during the year ended by
â¢ Estimation of total contract costs at inception and		testing the underlying documents using statistical sampling.
remaining costs to completion, which is a critical factor in	_â¢	We evaluated management''s estimates (contract costs and
measuring progress of a contract and amounts of revenue		risk provisions) by performing analytical procedures on
to be recognized; and		such estimates.

Key audit matters	How our audit addressed the key audit matter
â¢ Assessment of various risks emanating from operational	â¢ We performed a retrospective review for contracts
delays, contract terms, changes in estimations and scope,	completed during the current year by comparing the final
accounting for onerous obligations, technical, legal,	outcome of the contracts with previous estimates made for
external environment etc. This requires the Company	those contracts to assess the reliability of the management''s
to estimate various costs to capture such risks, including liquidated damages and warranties.	estimation process. â¢ We performed tests for completeness and appropriateness
In view of the above and because the Company and its external	of actual cost booked in the correct period, by testing the
stakeholders focus on revenue as a key performance indicator,	underlying documents for samples selected using statistical
we determined this area to be an area involving significant risk, an area of audit focus, and accordingly a key audit matter.	sampling. â¢ We assessed the disclosures made in the financial statements.
Trade receivables (including unbilled revenue) and contract assets
(as described in Note 2.3.1(i), 12, 15 and 38 of the accompanying financial statements)
Trade receivables including unbilled revenue and retention	In view of the significance of the matter we applied the
money with customers and contract assets forms a significant	following audit procedures in this area, among others to obtain
part of the financial statements. Customer contracts typically involve time consuming and complex conditions around	sufficient appropriate audit evidence:
closure of contracts, including technical acceptances. This	â¢ We obtained an understanding of the processes
generally leads to longer and significant time for realization of	implemented by management over the recognition and the
receivables. As a result of the above, management''s assessment	recoverability of the trade receivables (including unbilled
of recoverability of trade receivables (including unbilled	revenue) and contract assets.
revenue) and contract assets, involves critical evaluation of all	â¢ We tested key controls (both design and operating
factors impacting recoverability, including impact of external	effectiveness) over the recognition and the recoverability
environment, capability of customers to pay, historical payment	of the trade receivables (including unbilled revenue) and
records, evaluation of litigations, etc.	contract assets.
Management makes an impairment allowance for trade	â¢ We obtained and tested the ageing of aforesaid receivables
receivables (including unbilled revenue) and contract assets on the basis of it''s assessment of recoverability of specific	/ assets on a sample basis.
customers and on the basis of expected credit loss model for the	â¢ We performed test of details and tested relevant contracts
remaining customers in accordance with Ind AS 109, Financial	and documents for material trade receivable balances
Instruments. For the purposes of impairment assessment,	(including unbilled revenue) and amounts included in
significant judgements and assumptions are made, including	contract assets.
assessing credit risk, timing and amount of realization, etc.	â¢ We evaluated the model adopted by management to
In view of above, we determined this area to be an area of audit	estimate the expected credit loss. We enquired the
focus, and accordingly a key audit matter.	management in respect of the various judgements and estimates made relating to impairment provision against trade receivable (including unbilled revenue) and contract assets. â¢ We obtained and discussed management assessment of impairment for specific customer balances and understood reasons for the determination. â¢ We have circulated direct confirmations on a sample basis using statistical sampling. In case of non- receipt of such confirmations, alternate test procedures such as testing subsequent receipts and underlying documents have been performed. â¢ We assessed the disclosures made in the financial statements.

INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR''S REPORT THEREON

The Company''s Board of Directors is responsible for the
other information. The other information comprises the
information included in the Annual report, but does not
include the financial statements and our auditor''s report
thereon. The Annual report is expected to be made
available to us after the date of this auditor''s report.

Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above when it becomes available and, in
doing so, consider whether such other information is
materially inconsistent with the financial statements
or our knowledge obtained in the audit or otherwise
appears to be materially misstated.

When we read the Annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance and take necessary actions as applicable
under the applicable laws and regulations.

RESPONSIBILITIES OF THE MANAGEMENT FOR
THE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect
to the preparation of these financial statements that give
a true and fair view of the financial position, financial
performance including other comprehensive income /
(loss), cash flows and changes in equity of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of
the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the Act
for safeguarding of 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 the 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 financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

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

Those Board of Directors are also responsible for
overseeing the Company''s financial reporting process.

AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF
THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor''s report that includes our opinion.
Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these financial statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:

â¢ Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

â¢ Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to financial statements in place and the operating
effectiveness of such controls.

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

â¢ Conclude on the appropriateness of management''s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company''s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor''s report
to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor''s
report. However, future events or conditions may
cause the Company to cease to continue as a
going concern.

â¢ Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

therefore the key audit matters. We describe these
matters in our auditor''s report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by the Companies (Auditor''s Report)
Order, 2020 (âthe Orderâ), issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the âAnnexure 1â
a statement on the matters specified in paragraphs
3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report
to the extent applicable, 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) I n 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 except that the backup of the
books of account and other books and papers
maintained in electronic mode has not been
maintained on server physically located in
India on daily basis as detailed in note 44 of
the financial statements and as detailed in note
45 of the financial statements for the matters
stated in the paragraph (f) and paragraph (i)
(vi)) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014,
as amended;

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

(d) In our opinion, the aforesaid financial statements
comply with the Accounting Standards
specified under Section 133 of the Act, read
with Companies (Indian Accounting Standards)
Rules, 2015, as amended;

(e) On the basis of the written representations
received from the directors as on March 31,
2025 taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2025 from being appointed as a director in
terms of Section 164 (2) of the Act;

(f) The modification relating to the maintenance
of accounts and other matters connected
therewith are as stated in the paragraph (b)
above on reporting under Section 143(3)
(b) and paragraph (i(vi)) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 as amended;

(g) With respect to the adequacy of the internal
financial controls with reference to these
financial statements and the operating
effectiveness of such controls, refer to our
separate Report in âAnnexure 2â to this report;

(h) In our opinion, the managerial remuneration for
the year ended March 31, 2025 has been paid
/ provided by the Company to its directors in
accordance with the provisions of section 197
read with Schedule V to the Act.

(i) With respect to the other matters to be included
in the Auditor''s Report in accordance with Rule
11 of the Companies (Audit and Auditors)
Rules, 2014, as amended in our opinion and
to the best of our information and according to
the explanations given to us:

i. The Company has disclosed the impact, if
any, of pending litigations on its financial
position in its financial statements -
Refer Note 35 to the accompanying
financial statements;

ii. The Company has made provision,
as required under the applicable law
or accounting standards, for material
foreseeable losses, if any, on longÂ¬
term contracts including derivative
contracts - Refer Notes 18 and 22 to the
accompanying financial statements;

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

iv. a) The management has represented

that, to the best of its knowledge
and belief, as disclosed in the note
43 to the accompanying financial
statements, no funds have been
advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the Company to or in any
other persons or entities, including
foreign entities (âIntermediariesâ),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in

other persons or entities identified
in any manner whatsoever by or on
behalf of the Company (âUltimate
Beneficiariesâ) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

b) The management has represented
that, to the best of its knowledge and
belief, as disclosed in the note 43 to the
accompanying financial statements,
no funds have been received by the
Company from any persons or entities,
including foreign entities (âFunding
Partiesâ), with the understanding,
whether recorded in writing or
otherwise, that the Company shall,
whether, directly or indirectly, lend
or invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding
Party (âUltimate Beneficiariesâ) or
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries; and

c) Based on the audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come
to our notice that has caused us to
believe that the representations under
sub-clause (a) and (b) of Rule 11(e)
contain any material misstatement.

v. The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the
Act to the extent it applies to payment
of dividend.

As stated in note 16 to the accompanying
financial statements, the Board of Directors
of the Company have proposed final
dividend for the year which is subject to the
approval of the members at the ensuing
Annual General Meeting. The dividend
declared is in accordance with section
123 of the Act to the extent it applies to
declaration of dividend.

vi. Based on our examination which included
test checks and as described in note

45 to the Ind AS financial statements,
the Company has used an accounting
software, for maintaining its books of
account which has a feature of recording
audit trail (edit log) facility and the same
has operated throughout the year for
all relevant transactions recorded in the
software except that, audit trail feature is
not enabled for certain changes made, if
any, using privileged/ administrative access
rights. Further, during the course of our
audit we did not come across any instance
of audit trail feature being tampered with,
in respect of accounting software where
the audit trail has been enabled.

Further, based on our examination which
included test checks and as explained in
note 45 to the financial statements, the
Company, has used certain accounting
softwares, which are operated by third-
party software service providers for
maintaining its books of account and
in the absence of reports of the Service
Organization confirming compliance
with requirement of audit trail, we are
unable to comment on whether audit
trail feature of the said softwares were
enabled and operated throughout the
year for all relevant transactions recorded
in the softwares or whether there were
any instances of the audit trail feature
being tampered with, in respect to an
accounting software.

Additionally, the audit trail of relevant prior
year has been preserved by the company
as per the statutory requirements for record
retention, to the extent it was enabled and
recorded in those respective year, as stated
in Note 45 to the financial statements.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Sandeep Karnani

Partner

Membership Number: 061207

UDIN: 25061207BMNTVQ1448

Place: Bengaluru

Date: May 14, 2025

Mar 31, 2024

Hitachi Energy India Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Hitachi Energy India Limited (âthe Companyâ), which comprise the Balance sheet as at March 31 2024, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of material 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 financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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 March 31, 2024, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Financial Statements'' section of our report. We are independent of the Company in accordance with the âCode of

Ethics'' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, 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 audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Key audit matters	How our audit addressed the key audit matter
Revenue recognition for long term projects and contract estimates (as described in Note 2.3.1(d), 2.6, 15, 23 and Note 38 of the accompanying financial statements)
A significant portion of the Companyâs business comprises of long-term fixed price projects. Revenue from these contracts is recognized in accordance with the principles laid down in Ind AS 115, Revenue from Contracts with Customers and as detailed in âmaterial accounting policiesâ of the financial statements. In accordance with Ind AS 115, the Company classifies its various contracts with customers and determines whether revenue should be recognized at âpoint in timeâ or âover the timeâ basis. There are various areas involving complexities, judgements and estimates involved in accounting for revenue recognized on âover the timeâ basis, including: â¢ Estimation of total contract costs at inception and remaining costs to completion, which is a critical factor in measuring progress of a contract and amounts of revenue to be recognized; and â¢ Assessment of various risks emanating from operational delays, contract terms, changes in estimations and scope, accounting for onerous obligations, technical, legal, external environment etc. This requires the Company to estimate various costs to capture such risks, including liquidated damages and warranties. In view of the above and because the Company and its external stakeholders focus on revenue as a key performance indicator, we determined this area to be an area involving significant risk, an area of audit focus, and accordingly a key audit matter.	In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: â¢ We assessed the revenue recognition accounting policies by comparing with applicable accounting standards. â¢ We tested key controls (both design and operating effectiveness) with respect to revenue recognition and related cost estimations. â¢ We carried out analytical procedures on revenue recognized during the year ended to identify unusual variances. â¢ We performed substantive testing by selecting samples of revenue transactions, recorded during the year ended by testing the underlying documents using statistical sampling. â¢ We evaluated managementâs estimates (contract costs and risk provisions) by performing analytical procedures on such estimates. â¢ We performed a retrospective review for contracts completed during the current year by comparing the final outcome of the contracts with previous estimates made for those contracts to assess the reliability of the managementâs estimation process. â¢ We performed tests for completeness and appropriateness of actual cost booked in the correct period, by testing the underlying documents for samples selected using statistical sampling.
	_â¢	We assessed the disclosures made in the financial statements.

Trade receivables (including unbilled revenue) and contract assets (as described in Note 2.3.1(i), 12, 15 and 38 of the accompanying financial statements)
Trade receivables including unbilled revenue and retention money with	In view of the significance of the matter we applied the following
customers and contract assets forms a significant part of the financial	audit procedures in this area, among others to obtain sufficient
statements. Customer contracts typically involve time consuming and complex	appropriate audit evidence:
conditions around closure of contracts, including technical acceptances. This	â¢ We obtained an understanding of the processes implemented by
generally leads to longer and significant time for realization of receivables. As a result of the above, managementâs assessment of recoverability of trade	management over the recognition and the recoverability of the
receivables (including unbilled revenue) and contract assets, involves critical	trade receivables (including unbilled revenue) and contract assets.
evaluation of all factors impacting recoverability, including impact of external	â¢ We tested key controls (both design and operating effectiveness)
environment, capability of customers to pay, historical payment records,	over the recognition and the recoverability of the trade receivables
evaluation of litigations, etc.	(including unbilled revenue) and contract assets.
Management makes an impairment allowance for trade receivables (including	â¢ We obtained and tested the ageing of aforesaid receivables /
unbilled revenue) and contract assets on the basis of itâs assessment of recoverability of specific customers and on the basis of expected credit loss	assets on a sample basis.
model for the remaining customers in accordance with Ind AS 109, Financial	â¢ We performed test of details and tested relevant contracts and
Instruments. For the purposes of impairment assessment, significant	documents for material trade receivable balances (including
judgements and assumptions are made, including assessing credit risk,	unbilled revenue) and amounts included in contract assets.
timing and amount of realization, etc.	â¢ We evaluated the model adopted by management to estimate the
In view of above, we determined this area to be an area of audit focus, and	expected credit loss. We enquired the management in respect
accordingly a key audit matter.	of the various judgements and estimates made relating to impairment provision against trade receivable (including unbilled revenue) and contract assets. â¢ We obtained and discussed management assessment of impairment for specific customer balances and understood reasons for the determination. â¢ We have circulated direct confirmations on a sample basis using statistical sampling. In case of non- receipt of such confirmations, alternate test procedures such as testing subsequent receipts and underlying documents have been performed. â¢ We assessed the disclosures made in the financial statements.

Information Other than the Financial Statements and Auditorâs Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the financial statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of this report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as applicable under the applicable laws and regulations.

Responsibilities of Management for the Financial Statements

the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditorâs Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

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

â¢ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be

thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2024 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report, to the extent applicable, 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) I n 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 except, as detailed in note 44 of the financial statements, for the matters stated in the paragraph (h) and (i (vi)) below on reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014, as amended;

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

(d) I n our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2024 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;

(g) I n our opinion, the managerial remuneration for the year ended March 31, 2024 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;

(h) The observation relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph (b) above on reporting under Section 143(3)(b) and paragraph (i(vi)) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended.

(i) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 35 to the accompanying financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts - Refer Notes 18 and 22 to the accompanying financial statements;

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

iv. a) The management has represented that,

to the best of its knowledge and belief, and as disclosed in the note 43 to the accompanying financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, and as disclosed in the note 43 to the accompanying financial statements, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest

in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in note 16 to the accompanying financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination which included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is not enabled for direct changes to data when using certain access rights, as described in note 44 to the financial statements. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with in respect of the aforesaid accounting software where audit trail has been enabled.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Sandeep Karnani

Partner

Membership Number: 061207

UDIN: 24061207BKBJWO2660

Place: Bengaluru

Date: May 21, 2024

Mar 31, 2023

To the Members of Hitachi Energy India Limited (formerly known as ABB Power Products and Systems India Limited)

Report on the Audit of the Financial StatementsOpinion

We have audited the accompanying financial statements of Hitachi Energy India Limited (formerly known as ABB Power Products and Systems India Limited) (âthe Companyâ), which comprise the Balance sheet as at March 31, 2023, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us , the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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 March 31, 2023, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Financial Statementsâ

section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, 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 audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Key audit matters	How our audit addressed the key audit matter
Revenue recognition for long term projects and contract estimates
(as described in Note 38 of the accompanying financial statements)
A significant portion of the Companyâs business comprises of long-term fixed price projects. Revenue from these contracts is recognized in accordance with the principles laid down in Ind AS 115, Revenue from Contracts with Customers and as detailed in âsignificant accounting policiesâ of the financial statements. In accordance with Ind AS 115, the Company classifies its various contracts with customers and determines whether revenue should be recognized at âpoint in timeâ or âover the timeâ basis.	In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: â¢ We assessed the revenue recognition accounting policies by comparing with applicable accounting standards. â¢ We tested key controls (both design and operating effectiveness) with respect to revenue recognition and related cost estimations.

Key audit matters	How our audit addressed the key audit matter
There are various areas involving complexities, judgements and	_â¢	We carried out analytical procedures on revenue recognized
estimates involved in accounting for revenue recognized on âover the timeâ basis, including:		during the year ended to identify unusual variances.
	_â¢	We performed substantive testing by selecting samples of
â¢ Estimation of total contract costs at inception and remaining		revenue transactions, recorded during the year ended by
costs to completion, which is a critical factor in measuring		testing the underlying documents using statistical sampling.
progress of a contract and amounts of revenue to be recognized; and	_â¢	We evaluated managementâs estimates (contract costs and risk provisions) by performing analytical procedures on such
â¢ Assessment of various risks emanating from operational		estimates.
delays, contract terms, changes in estimations and scope, accounting for onerous obligations, technical, legal, external	_â¢	We performed a retrospective review for contracts completed
environment etc. This requires the Company to estimate		during the current year by comparing the final outcome of the
various costs to capture such risks, including liquidated		contracts with previous estimates made for those contracts to
damages and warranties.		assess the reliability of the managementâs estimation process.
In view of the above and because the Company and its external	_â¢	We performed tests for completeness and appropriateness
stakeholders focus on revenue as a key performance indicator,		of actual cost booked in the correct period, by testing the
we determined this area to be an area involving significant risk,		underlying documents for samples selected using statistical
an area of audit focus, and accordingly a key audit matter.		sampling.
	_â¢	We assessed the disclosures made in the financial statements.
Trade receivables (including unbilled revenue) and contract assets
(as described in Note 38 of the accompanying financial statements)
Trade receivables including unbilled revenue and retention money	In view of the significance of the matter we applied the following
with customers and contract assets forms a significant part of the	audit procedures in this area, among others to obtain sufficient
financial statements. Customer contracts typically involve time	appropriate audit evidence:
consuming and complex conditions around closure of contracts, including technical acceptances. This generally leads to longer	_â¢	We obtained an understanding of the processes implemented
and significant time for realization of receivables. As a result of		by management over the recognition and the recoverability
the above, managementâs assessment of recoverability of trade		of the trade receivables (including unbilled revenue) and
receivables (including unbilled revenue) and contract assets, involves critical evaluation of all factors impacting recoverability,		contract assets.
including impact of external environment, capability of customers	_â¢	We tested key controls (both design and operating effectiveness)
to pay, historical payment records, evaluation of litigations,		over the recognition and the recoverability of the trade receivables
etc. including the possible effect from the pandemic relating to COVID-19.		(including unbilled revenue) and contract assets.
	_â¢	We obtained and tested the ageing of aforesaid receivables /
Management makes an impairment allowance for trade receivables (including unbilled revenue) and contract assets on the basis of itâs assessment of recoverability of specific customers and on the basis of expected credit loss model for the remaining customers	_â¢	assets on a sample basis. We performed test of details and tested relevant contracts and
in accordance with Ind AS 109, Financial Instruments. For the purposes of impairment assessment, significant judgements and assumptions are made, including assessing credit risk, timing and amount of realization, etc.	_â¢	documents for material trade receivable balances (including unbilled revenue) and amounts included in contract assets. We evaluated the model adopted by management to estimate
	_â¢	the expected credit loss including the possible effect from the
In view of above, we determined this area to be an area of audit focus, and accordingly a key audit matter.		pandemic relating to COVID-19. We enquired the management in respect of the various judgements and estimates made relating to impairment provision against trade receivable (including unbilled revenue) and contract assets.
	_â¢	We obtained and discussed management assessment of impairment for specific customer balances and understood reasons for the determination.
	_â¢	We have circulated direct confirmations on a sample basis using statistical sampling. In case of non- receipt of such confirmations, alternate test procedures such as testing subsequent receipts and underlying documents have been performed.
	_â¢	We assessed the disclosures made in the financial statements.

Information Other than the Financial Statements and Auditorâs Report Thereon

The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the financial statements and our auditorâs report thereon. The Annual report is expected to be made available to us after the date of this auditorâs report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

When we read the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as applicable under the applicable laws and regulations.

Responsibilities of Management for the Financial Statements

The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.

Auditorâs Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

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

â¢ Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and

whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. 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;

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31,2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023 from being appointed as a director in terms of Section 164 (2) of the Act;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 35 to the accompanying financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts -Refer Notes 18 and 22 to the accompanying financial statements;

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

iv. a) The management has represented that,

to the best of its knowledge and belief, and as disclosed in the note 45 to the accompanying financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ)

or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, and as disclosed in the note 45 to the accompanying financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

v. The final dividend paid by the Company during

the year in respect of the same declared

for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in note 16 to the accompanying financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1,2023, reporting under this clause is not applicable.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Sandeep Karnani

Partner

Membership Number: 061207

UDIN: 23061207BGYKVA1541

Place: Bengaluru

Date: May 24, 2023

Mar 31, 2022

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Hitachi Energy India Limited (formerly known as ABB Power Products and Systems India Limited) (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the period January 01, 2021 to March 31, 2022 (âfifteen month periodâ) and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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 March 31, 2022, its profit including other comprehensive income, its cash flows and the changes in equity for the fifteen month period ended on that date.

Basis for Opinion

Responsibilities for the Audit of the Financial Statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, 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 audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the fifteen month period ended March 31,2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

Key audit matters

How our audit addressed the key audit matter

Revenue recognition for long term projects and contract estimates

(as described in Note 38 of the financial statements)

A significant portion of the Companyâs business comprises of long-term fixed price projects. Revenue from these contracts is recognized in accordance with the principles laid down in Ind AS 115, Revenue from Contracts with Customers and as detailed in âsignificant accounting policiesâ of the financial statements.

In accordance with Ind AS 115, the Company classifies its various contracts with customers and determines whether revenue should be recognized at âpoint in timeâ or âover the timeâ basis.

In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:

â¢ We assessed the revenue recognition accounting policies by comparing with applicable accounting standards.

â¢ We tested key controls (both design and operating effectiveness) with respect to revenue recognition and related cost estimations.

Key audit matters	How our audit addressed the key audit matter
Revenue recognition for long term projects and contract estimates
(as described in Note 38 of the financial statements)
There are various areas involving complexities, judgements and	_â¢	We carried out analytical procedures on revenue recognized
estimates involved in accounting for revenue recognized on âover the timeâ basis, including:		during the fifteen month period to identify unusual variances.
	_â¢	We performed substantive testing by selecting samples of
â¢ Estimation of total contract costs at inception and remaining		revenue transactions, recorded during the fifteen month period
costs to completion, which is a critical factor in measuring		by testing the underlying documents using statistical sampling.
progress of a contract and amounts of revenue to be recognized; and	_â¢	We evaluated managementâs estimates (contract costs and risk provisions) by performing analytical procedures on such
â¢ Assessment of various risks emanating from operational		estimates.
delays, contract terms, changes in estimations and scope, accounting for onerous obligations, technical, legal, external	_â¢	We performed a retrospective review for contracts completed
environment etc. This requires the Company to estimate		during the current period by comparing the final outcome of the
various costs to capture such risks, including liquidated		contracts with previous estimates made for those contracts to
damages and warranties.		assess the reliability of the managementâs estimation process.
In view of the above and because the Company and its external	_â¢	We performed tests for completeness and appropriateness
stakeholders focus on revenue as a key performance indicator, we		of actual cost booked in the correct period, by testing the
determined this area to be an area involving significant risk, an		underlying documents for samples selected using statistical
area of audit focus, and accordingly a key audit matter.		sampling.
	â¢	We assessed the disclosures made in the financial statements.
Trade receivables, unbilled revenue and contract assets (as described in Note 38 of the Ind AS financial statements)
Trade receivables, including retention money with customers,	In	view of the significance of the matter we applied the following
unbilled revenue and contract assets forms a significant part of	audit procedures in this area, among others to obtain sufficient
the financial statements. Customer contracts typically involve time	appropriate audit evidence:
consuming and complex conditions around closure of contracts, including technical acceptances. This generally leads to longer	_â¢	We obtained an understanding of the processes implemented
and significant time for realization of receivables. As a result of		by management over the recognition and the recoverability of
the above, managementâs assessment of recoverability of trade receivables, unbilled revenue and contract assets, involves critical		the trade receivables, unbilled revenue and contract assets.
evaluation of all factors impacting recoverability, including impact of external environment, capability of customers to pay, historical	_â¢	We tested key controls (both design and operating
payment records, evaluation of litigations, etc. including the		effectiveness) over the recognition and the recoverability of
possible effect from the pandemic relating to COVID-19.		the trade receivables, unbilled revenue and contract assets.
Management makes an impairment allowance for trade	_â¢	We obtained and tested the ageing of aforesaid receivables /
receivables, unbilled revenue and contract assets on the basis of		assets on a sample basis.
itâs assessment of recoverability of specific customers and on the basis of expected credit loss model for the remaining customers	_â¢	We performed test of details and tested relevant contracts and documents for material trade receivable balances, unbilled
in accordance with Ind AS 109, Financial Instruments. For the		revenue and amounts included in contract assets.
purposes of impairment assessment, significant judgements and assumptions are made, including assessing credit risk, timing and	_â¢	We evaluated the model adopted by management to estimate
amount of realization, etc.		the expected credit loss including the possible effect from the
In view of above, we determined this area to be an area of audit focus, and accordingly a key audit matter.		pandemic relating to COVID-19. We enquired the management in respect of the various judgements and estimates made relating to impairment provision against trade receivable, unbilled revenue and contract assets.
	_â¢	We obtained and discussed management assessment of impairment for specific customer balances and understood reasons for the determination.
	_â¢	We have circulated direct confirmations on a sample basis using statistical sampling. In case of non- receipt of such confirmations, alternate test procedures such as testing subsequent receipts and underlying documents have been performed.
	_â¢	We assessed the disclosures made in the financial statements.