Notes to Accounts of IndiGrid Infrastructure Trust

Mar 31, 2022

^AThe Trust acquired 49% of paid up equity capital of Gurgaon Palwal Transmission Limited (''GPTL'') with effect from 28 August 2020 from Sterlite Power Grid Ventures Limited (''SPGVL'') (merged with “Sterlite Power Transmission Limited" (SPTL)) and Sterlite Grid 4 Limited (''SGL4''), (together referred as "the Selling Shareholders") pursuant to Share Purchase Agreement dated August 28, 2020 ("SPA"). The Trust has finalised purchase consideration for acquisition of entire stake in GPTL and has entered into a binding agreement with the Selling Shareholders to acquire remaining 51% paid up equity capital in GPTL from the Selling Shareholder The Trust has beneficial interest based on the rights available to it under the SPA. aa The Trust acquired 74% of paid up equity capital of Jhajjar KT Transco Private Limited (''JKTPL'') with effect from 28 September 2020 from Kalpataru Power Transmission Limited, Techno Electric & Engineering Company Limited, (together referred as "the Selling Shareholders") pursuant to Share Purchase Agreement dated 29 May 2020 ("SPA") and acquired the remaining 26% equity stake in JKTPL on October 03, 2020.

## The Trust acquired 74% of paid up equity capital of Parbati Koldam Transmission Company Limited (''PrKTCL'') with effect from January 08, 2021 from Reliance Infrastructure Limited (referred as "the Selling Shareholder") pursuant to Share Purchase Agreement dated November 28, 2020 ("SPA"). The balance 26% share in PrKTCL is held by PowerGrid Corporation of India Limited ("PGCIL").

@@ The Trust also acquired 49% of paid up equity capital of NER II Transmission Limited ("NER") with effect from March 25, 2021 from Sterlite Power Transmission Limited (SPTL)) and Sterlite Grid 4 Limited (''SGL4''), (together referred as "the Selling Shareholders") pursuant to Share Purchase Agreement dated March 05, 2021, as amended on March 25, 2021 ("SPA"). The Trust has finalised purchase consideration for acquisition of entire stake in NER and has entered into a binding agreement with the Selling Shareholders to acquire remaining 51% paid up equity capital in NER from the Selling Shareholders. As of March 31, 2021, the Trust has paid additional consideration equivalent to 25% of the total consideration as an advance which would be adjusted towards payable for acquisition of 25% of equity stake. The Trust has beneficial interest based on rights available to it under SPA

AAAThe Trust also acquired 100% of paid up equity capital of IndiGrid Solar-I (AP) Private Limited (formerly known as FRV Andhra Pradesh Solar Farm-I Private Limited) (''ISPL1'') and IndiGrid Solar-II (AP) Private Limited (formerly FRV India Solar Park-II Private Limited) (''ISPL2'') with effect from July 13, 2021 from FRV Solar Holdings XI B.V. and Fotowatio Renewable Ventures S.L (together referred as ""the Selling Shareholders"") pursuant to Share Purchase Agreement dated December 18,2020 ("SPA").

@@@The letter of intent for development of Kallam Transmission Limited (KTL) is awarded to consortium of IGL1 and IGL2 ("IndiGrid Consortium") by the REC Power Development and Consultancy Limited (formerly known as REC Power Distribution Company Limited) on Novmeber 30, 2021 for a 35-year period from the scheduled commercial operation date, on a Build, Own, Operate and Maintain model. IndiGrid Consortium acquired the project on December 28, 2021 pursuant to Share Purchase Agreement ("SPA"). The project is currently under development with scheduled commissioning on June 27, 2023."

a) The Trust offered an issue of up to 116,695,404 units of India Grid Trust ("Indigrid" and such units, the "units"), for cash at a price of '' 110.00 per unit (the "issue price"), aggregating to '' 12,836.49 Million to the eligible unitholders (as defined in the Letter of Offer) on a rights basis in the ratio of one lot for every five lots (each lot comprising 1,701 units) held by them on the record date, being 30 March 2021 (the "Issue") in accordance with the Securities and Exchange Board of India (Infrastructure Investment Trust) Regulations, 2014 including the rules, circulars and guidelines issued thereunder, including the SEBI Rights Issue Guidelines (the "InvIT Regulations"). The issue opened on 06 April 2021 and closed on 13 April 2021, which was extended to 16 April 2021. The Allotment Committee of the Board of Directors of IndiGrid Investment Managers Limited (formerly Sterlite Investment Managers Limited) (''Investment Manager’), considered and approved allotment of 116,695,404 rights units to the eligible unitholders of IndiGrid on 22 April 2021.

b) Issue expenses of '' 79.03 Million incurred in connection with issue of units have been reduced from the Unitholders capital in accordance with Ind AS 32 Financial Instruments: Presentation.

a. Terms/rights attached to units

The Trust has only one class of units. Each unit represents an undivided beneficial interest in the Trust. Each holder of unit is entitled to one vote per unit. The Unitholders have the right to receive at least 90% of the Net Distributable Cash Flows of the Trust at least once in every six months in each financial year in accordance with the InvIT Regulations. The Investment Manager approves distributions. The distribution will be in proportion to the number of units held by the unitholders. The Trust declares and pays distribution in Indian rupees.

A unitholder has no equitable or proprietary interest in the projects of IndiGrid and is not entitled to any share in the transfer of the projects (or any part thereof) or any interest in the projects (or any part thereof) of IndiGrid. A unitholder’s right is limited to the right to require due administration of IndiGrid in accordance with the provisions of the Trust Deed and the Investment Management Agreement.

(i) The above items represent new secured non-convertible debentures that have been issued by the Trust during the year ended March 31,2021.

(ii) During the year ended March 31, 2022 the Trust has taken new Indian rupee loan from banks of '' 27,600 Million (March 31,2021: '' 24,900 Million.)

(A) Secured Non-convertible debentures referred above to the extent of:

(i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realised from those loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs;

(ii) First pari-passu charge on Escrow account of the Trust;

(iii) Pledge over 51% of the share capital of specified SPVs. "

(B) Secured market linked non-convertible debentures referred above to the extent of:

(i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realised from those loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs;

(ii) First pari-passu charge on Escrow account of the Trust;

(iii) Pledge over 51% of the share capital of specified SPVs. During the year, the Trust has prepaid the market linked non-convertible debentures.

C) Secured non-convertible debentures referred above to the extent of:

(i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realised from those loans and advances

extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs;

(ii) First pari-passu charge on Escrow account of the Trust

(iii) First pari-passu charge on the ISRA and DSRA accounts.

(iv) Pledge over 51% of the share capital of specified SPVs

(D) Secured Listed non-convertible debentures referred

above to the extent of:

(i) First pari passu charge on entire current assets including loans and advances, any receivables accrued/realised from those loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs;

(ii) First pari-passu charge on Escrow account of the Trust

(iii) First pari-passu charge on the ISRA and DSRA accounts.

(iv) Pledge over 51% of the share capital of specified SPVs

(D) Term loan from bank

The Indian rupee term loan from bank carries interest at the rate of 7.40% to 8.25% payable monthly. Loan amount installments shall be repayable as per the payment schedule over 5 and 15 years from the date of disbursement. The term loan is secured by (i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realised from those loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs; (ii) First pari-passu charge on Escrow account of the Trust.

Financial covenants

Loans from bank, financial institution contain certain debt covenants relating to limitation on interest service coverage ratio, debt service coverage ratio, Net Debt to AUM, Net Debt to EBITDA etc. The financial covenants are reviewed on availability of audited accounts of the respective borrower periodically. For the financial year ended March 31,2022, the Trust has satisfied all debt covenants prescribed in the terms of loan from bank and financial institutions, where applicable. The Trust has not defaulted on any loans payable.

NOTE 24: EARNINGS PER UNIT (EPU)

Basic EPU amounts are calculated by dividing the profit for the year attributable to unit holders by the weighted average number of units outstanding during the year.

Diluted EPU amounts are calculated by dividing the profit for the year attributable to unit holders by the weighted average number of units outstanding during the year plus the weighted average number of units that would be issued on conversion of all the dilutive potential units into unit capital.

NOTE 25: SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Trust’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Trust’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements.

(a) Classification of Unitholders'' funds

Under the provisions of the InvIT Regulations, IndiGrid is required to distribute to unitholders not less than ninety percent of the net distributable cash flows of IndiGrid for each financial year. Accordingly, a portion of the unitholders’ funds contains a contractual obligation of the Trust to pay to its unitholders cash distributions. The unitholders’ funds could therefore have been classified as compound financial instrument which contain both equity and liability components in accordance with Ind AS 32 - Financial Instruments: Presentation. However, in accordance with SEBI Circulars (No. CIR/IMD/ DF/114/2016 dated 20-Oct-2016 and No. CIR/IMD/ DF/127/2016 dated 29 November 2016) issued under the InvIT Regulations, the unitholders’ funds have been classified as equity in order to comply with the mandatory requirements of Section H of Annexure A to the SEBI Circular dated 20 October 2016 dealing with the minimum disclosures for key financial statements. In line with the above, the distribution payable to unit holders is recognised as liability when the same is approved by the Investment Manager.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to

the carrying amounts of assets and liabilities or fair value disclosures within the next financial year, are described below. The Trust based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Trust. Such changes are reflected in the assumptions when they occur.

(a) Fair valuation and disclosures

SEBI Circulars issued under the InvIT Regulations require disclosures relating to net assets at fair value and total returns at fair value (refer note 26A and 26B). In estimating the fair value of investments in subsidiaries (which constitute substantial portion of the net assets), the Trust engages independent qualified external valuers to perform the valuation. The management works closely with the valuers to establish the appropriate valuation techniques and inputs to the model. The management reports the valuation report and findings to the Board of the Investment Manager quarterly to explain the cause of fluctuations in the fair value of the transmission projects. The inputs to the valuation models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such

as WACC, Tax rates, Inflation rates, etc. Changes in assumptions about these factors could affect the fair value.

(b) Impairment of non-financial assets

Non-financial assets of the Trust primarily comprise of investments in subsidiaries.

The provision for impairment/(reversal) of impairment of investments in subsidiaries is made based on the difference between the carrying amounts and the recoverable amounts. The recoverable amount of the investments in subsidiaries has been computed by external independent valuation experts based on value in use calculation for the underlying projects (based on discounted cash flow model). On a periodic basis, according to the recoverable amounts of individual portfolio assets computed by the valuation experts, the Trust tests impairment on the amounts invested in the respective subsidiary companies. Based on the valuation exercise so carried out, there is a net impairment of '' 1,672.75 Million for the year ended March 31, 2022 (year ended March 31, 2021: impairment reversal of '' 3,497.47 Million) which is primarily on account of maturity of the SPV assets. The key assumptions used to determine the recoverable amount for the underlying projects are disclosed and further explained in Note 26A.

Firm in which director of sponsor is partner:

Cyril Amarchand Mangaldas (till 02 February 2021)

* During the year 2019-20, Electron IM Pte. Ltd. purchased 40% stake in Indigrid Investment Managers Limited (formerly Sterlite Investment Managers Limited) (IIML) from Sterlite Power Transmission Limited post which Electron IM Pte. Ltd. holds 60% of stake in IIML.

On July 02, 2021 and January 14, 2022, Sterlite Power Transmission Limited has further transferred a stake of 14% and then 26% to Electron IM Pte. Ltd. post which Electron IM Pte. Ltd. holds 100% of stake in IIML."

^A Sterlite Power Grid Ventures Limited (''SPGVL'') has been merged with Sterlite Power Transmission Limited (''SPTL'') wef November 15, 2020.

aa Sterlite Grid 4 Limited (SGL4) has been merged with Sterlite Power Transmission Limited (''SPTL'') wef 17 February 2022.

(B) Material conditions or obligations in relation to the transactions:

Acquisition of Gurgaon Palwal Transmission Limited (GPTL):

Pursuantto the share purchase agreements dated August 28, 2020 ("SPA") executed among Sterlite Power Grid Ventures Limited*, Sterlite Grid 4 Limited, Axis Trustee Services Limited, Indigrid Investment Managers Limited (formerly Sterlite Investment Managers Limited) and Gurgaon Palwal Transmission Limited (''GPTL'') for acquisition of equity stake in GPTL, Indigrid has acquired 49% of paid up equity capital of GPTL with effect from August 28, 2020.

Under the Agreements, the Trust has the following rights:

a. Right to nominate the majority of the directors on the Board of Directors of GPTL.

b. The Selling Shareholders are required to vote according in AGM/EGM or any other meeting of shareholders of GPTL in a manner favourable for the interests of IndiaGrid Trust.

c. Irrevocable and unconditional right to acquire the remaining 51% of the equity stake of GPTL at a later date (on expiry of the respective mandatory shareholding period).

d. Pledge on the remaining 51% equity stake in GPTL, of which 2% is pledged to lenders of GPTL.

e. Non-disposal undertaking from the Selling Shareholders for the remaining 51% equity stake in GPTL.

The acquisition of equity shares of GPTL was financed by money raised through Qualified Institutional Placement (QIP) of '' 25,140 Million by IndiGrid. No fees or commission were received/to be received by any associate of the related party in relation to the transaction.

Acquisition of NERII Transmission Limited (NER):

Pursuant to the share purchase agreements dated March 05, 2021 ("SPA") executed among Sterlite Power Transmission Limited, Sterlite Grid 4 Limited, Axis Trustee Services Limited, Indigrid Investment Managers Limited (formerly Sterlite Investment Managers Limited) and NER II Transmission Limited (''NER'') for acquisition of equity stake in NER, Indigrid

has acquired 49% of paid up equity capital of NER with effect from March 25, 2021. As of March 31, 2021, the Trust has paid additional consideration equivalent to 25% of the total consideration which would be adjusted towards payable for acquisition of 25% of equity stake. Under the Agreements, the Trust has the following rights:

a. Right to nominate the majority of the directors on the Board of Directors of NER.

b. The Selling Shareholders are required to vote according in AGM/EGM or any other meeting of shareholders of NER in a manner favourable for the interests of IndiaGrid Trust.

c. Irrevocable and unconditional right to acquire the remaining 51% of the equity stake of NER at a later date (on expiry of the respective mandatory shareholding period).

d. Pledge on the remaining 51% equity stake in NER.

e. Non-disposal undertaking from the Selling Shareholders for the remaining 51% equity stake in NER.

The acquisition of equity shares of NER was financed by money raised through Qualified Institutional Placement (QIP) of '' 25,140 Million by IndiGrid. No fees or commission were received/to be received by any associate of the related party in relation to the transaction.

NOTE 28: CAPITAL AND OTHER COMMITMENTS

(a) The Trust has entered into a Framework agreement on April 30, 2019 with Sterlite Grid Ventures Limited (''SPGVL'')* for acquisition of Khargone Transmission Limited (''KTL'').

* Sterlite Power Grid Ventures Limited (''SPGVL'') has been merged with Sterlite Power Transmission Limited (''SPTL'') w.e.f November 15, 2020"

NOTE 29: CONTINGENT LIABILITY

The Trust has no contingent liability to be reported.

NOTE 30: Segment Reporting

The Trust’s activities comprise of owning and investing in transmission and solar SPVs to generate cash flows for distribution to unitholders. Based on the guiding principles given in Ind AS - 108 "Operating Segments", this activity falls within a single operating segment and accordingly the disclosures of Ind AS -108 have not separately been given.

NOTE 31: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Trust''s principal financial liabilities comprise of borrowings and other financial liabilities. The main purpose of these financial liabilities is to finance the Trust''s operations. The Trust''s principal financial assets include investments, loans, cash and bank balances and other financial assets that derive directly from its operations.

The Trust may be exposed to market risk, credit risk and liquidity risk. The Investment Manager oversees the management of these risks. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Trust’s policy that no trading in derivatives for speculative purposes may be undertaken. The management reviews and agrees policies for managing each of these risks, which are summarised below.

The Risk Management policies of the Trust are established to identify and analyse the risks faced by the Trust, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Trust’s activities.

Management has overall responsibility for the establishment and oversight of the Trust’s risk management framework.

(A) 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 three types of risk: interest rate risk, currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings and investments.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Trust''s borrowings are at fixed rate, hence the Trust is not exposed to Interest rate risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Trust did not have any exposure in foreign currency as at March 31, 2022 and March 31,2021.

Equity price risk

The Trust’s investments in equity shares of subsidiaries are susceptible to market price risk

arising from uncertainties about future values of those investments. Reports on the equity portfolio are submitted to the senior management on a regular basis. The Board of Directors of the Investment Manager reviews and approves all equity investment decisions. At the reporting date, the exposure to equity investments in subsidiary at carrying value was '' 42,734.91 Million (March 31,2021: '' 37,193.07 Million). Sensitivity analyses of significant unobservable inputs used in the fair value measurement are disclosed in Note 26A.

(B) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Trust is exposed to credit risk from its investing activities including loans to subsidiaries, deposits with banks and other financial instruments. As at March 31, 2022 and March 31, 2021, the credit risk is considered

low since substantial transactions of the Trust are with its subsidiaries.

(C) Liquidity risk

Liquidity risk is the risk that the Trust may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Trust’s objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral obligations. The Trust requires funds both for short term operational needs as well as for long term investment programs mainly in transmission projects. The Trust closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents and liquid investments will provide liquidity.

NOTE 32: CAPITAL MANAGEMENT

For the purpose of the Trust’s capital management, capital includes issued unit capital and all other reserves attributable to the unit holders of the Trust. The primary objective of the Trust’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise unit holder value.

The Trust manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Trust may adjust the distribution to unitholders (subject to the provisions of InvIT regulations which require distribution of at least 90% of the net distributable cash flows of the Trust to unit holders), return capital to unitholders or issue new units. The Trust monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Trust’s policy is to keep the gearing ratio optimum. The Trust includes within net debt, interest bearing loans and borrowings and other payables less cash and cash equivalents, other bank balances and short term investments.

Financial Covenants

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interestbearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2022 and March 31,2021.

NOTE 33: SUBSEQUENT EVENT

On May 20, 2022, the Board of directors of the Investment Manager approved a distribution of '' 3.1875 per unit for the period January 01,2022 to March 31,2022 to be paid on or before 15 days from the date of declaration.

NOTE 34: IMPACT OF COVID-19

The ongoing spread of COVID-19 has impacted business in various countries including India and there have been disruptions to regular business operations due to COVID response measures undertaken in certain geographies. The management has assessed impact on business and financial risks on account of COVID-19 on the financial statements of the Trust. Considering that the subsidiaries of the Trust are engaged in the business of transmission of

electricity which is considered as an "Essential Service", the management believes that the impact of COVID-19 is not significant. The management does not see any risks in the Trust’s ability to continue as a going concern and meeting its liabilities as and when they fall due.

Further, the management will continue to monitor and assess impact of economic conditions arising due to COVID-19. The impact of COVID-19 may differ from that expected at the date of approval of the financial statements.

NOTE 35: OTHER INFORMATION

(i) The Trust does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Trust does not have any transactions with Companies struck off.

(iii) The Trust have not traded or invested in Cryptocurrency or Virtual Currency during the financial year.

(iv) The Trust does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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Mar 31, 2018

1. Trust information

India Grid Trust (“the Trust” or “ndiGrid”) is an irrevocable trust settled by Sterlite Power Grid Ventures Limited (the “Sponsor”) on October 21, 2016 pursuant to the Trust Deed under the provisions of the Indian Trusts Act, 1882 and registered with Securities Exchange Board of India (“SEBI”) under the SEBI (Infrastructure Investment Trust) Regulations, 2014 as an Infrastructure Investment Trust on November 28, 2016 having registration number IN/InvIT/16-17/0005. The Trustee of IndiGrid is Axis Trustee Services Limited (the “Trustee”). The Investment manager for IndiGrid is Sterlite Investment Managers Limited (the “nvestment Manager” or the “Management”).

The objectives of IndiGrid are to undertake activities as an infrastructure investment trust in accordance with the provisions of the InvIT Regulations and the Trust Deed. The principal activity of IndiGrid is to own and invest in power transmission assets in India with the objective of producing stable and sustainable distributions to unitholders.

During the year ended March 31, 2018, IndiGrid has acquired the following projects from the Sponsor which are transmission infrastructure projects developed on Build Own Operate and Maintain (‘BOOM’) basis:

1. Bhopal Dhule Transmission Limited (‘BDTCL’)

2. Jabalpur Transmission Company Limited (‘JTCL’)

3. RAPP Transmission Company Limited (‘RTCL’)

4. Purulia & Kharagpur Transmission Company Limited (‘PKTCL’)

5. Maheshwaram Transmission Limited (‘MTL’)

These SPVs have executed Transmission Services Agreements (“TSAs”) with Long term transmission customers under which the SPVs have to maintain the transmission infrastructure for 35 years post commissioning.

The address of the registered office of the Investment Manager is Malco Industries Limited, Sipcot Industrial Complex, Madurai Bye Pass road, Tuticorin, Thoothukudi, Tamil Nadu 628 002. The financial statements were authorised for issue in accordance with resolution passed by the Board of Directors of the Investment Manager on April 24, 2018.

2. Significant Accounting Policies

2.1 Basis of preparation

These financial statements are the separate financial statements of the Trust and comprise of the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss including the statement of Other Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in Unit Holders’ Equity for the year then ended and the Statement of Net Assets at fair value as at March 31, 2018 and the Statement of Total Returns at fair value and the Statement of Net Distributable Cash Flows (‘NDCFs’) for the year then ended and a summary of significant accounting policies and other explanatory notes in accordance with Indian Accounting Standards as defined in Rule 2(1)(a) of the Companies (Indian Accounting Standards) Rules, 2015, as amended, prescribed under Section 133 of the Companies Act, 2013 (“nd AS”) read with SEBI (Infrastructure Investment Trusts) Regulations, 2014, as amended and the circulars issued thereunder (“nvIT Regulations”).

The financial statements have been prepared on a historical cost basis, except for the following assets which have been measured at fair value:

- Certain financial assets measured at fair value (refer accounting policy regarding financial instruments).

The financial statements are presented in Indian Rupees Millions, except when otherwise indicated.

2.2 Standards issued but not yet effective:

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Trust’s financial statements are disclosed below. The Trust intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standards:

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was notified on 28 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Ind AS 115 is effective for the Trust from April 1, 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented in accordance with Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors, with the option to elect certain practical expedients as defined within Ind AS 115 (the full retrospective method); or (ii) retrospectively with the cumulative effect of initially applying Ind AS 115 recognized at the date of initial application (1 April 2018) and providing certain additional disclosures as defined in Ind AS 115 (the modified retrospective method).

The Trust has income primarily from interest/dividends from subsidiaries, interest on bank deposits and dividends from liquid mutual funds. The management believes that application of Ind AS 115 is not expected to have material impact on the financial statements, however a reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation has been completed.

Other Amendments to standards, issued but not effective, which are not applicable to the Trust:

a) Amendments to Ind 112 Disclosure of Interests in Other Entities:

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.

b) Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

c) Transfers of Investment Property - Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

d) Ind AS 28 Investments in Associates and Joint Ventures The amendments clarify that:

- An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss.

- If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent.

e) Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

“ Includes amount of INR 525.10 million towards equity component of Non- Convertible Debentures issued by Sterlite Grid 1 Limited and INR 579.50 million towards payable to SPGVL in respect of acquisition of BDTCL. Refer note 4 and 16 for details.

* The OCRPS are either convertible into equity shares of SGL-1 in the ratio of 1:1 or redeemable solely at the option of SGL-1 within a period of 7 years from the date of issue.

* Pursuant to the share purchase agreements and shareholders’ agreements dated February 14, 2018 executed for the acquisition of RTCL and MTL, the Trust (through SGL-1) owns voting rights in the remaining 51% stake in these entities which effectively gives it the beneficial interest over the remaining 51% stake as well.

# Non Convertible debenture (NCD) of Face value of INR10 each are issued by Sterlite Grid 1 Limited. The NCD would be redeemable at the option of the NCD holder anytime after July 22, 2019. If the NCD holders do not exercise their right of redeeming the NCDs, the NCDs shall be due for repayment at the end of July 2021. Since the interest rate for the NCD is below market rate, an amount of INR 525.10 million has been re-classified as equity contribution in subsidiary disclosed under investment in subsidiary.

“ pertains to remittances received from subsidiaries in respect of interest/principal repayments of loans for the month of March 2018.

Loans are non-derivative financial assets which are repayable by subsidiaries upon expiry of period of their respective Transmission Services Agreement. Further, the subsidiaries are entitled to prepay all or any portion of the outstanding principal with a prior notice. The loans to subsidiaries carry interest @ 15% p.a.

Terms/rights attached to units

The Trust has only one class of units. Each Unit represents an undivided beneficial interest in the Trust. Each holder of unit is entitled to one vote per unit. The Unitholders have the right to receive at least 90% of the Net Distributable Cash Flows of the Trust at least once in every six months in each financial year in accordance with the InvIT Regulations. The Investment Manager approves dividend distributions. The distribution will be in proportion to the number of units held by the unitholders. The Trust declares and pays dividends in Indian rupees.

A Unitholder has no equitable or proprietary interest in the projects of IndiGrid and is not entitled to any share in the transfer of the projects (or any part thereof) or any interest in the projects (or any part thereof) of IndiGrid. A Unitholder’s right is limited to the right to require due administration of IndiGrid in accordance with the provisions of the Trust Deed and the Investment Management Agreement.

The Indian rupee term loan from bank carries interest at the rate of 8.25% p.a. payable monthly. Entire loan amount shall be repayable as a bullet repayment at the end of 10 years from the date of disbursement. The term loan is secured by (i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/ realised from those loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs; (ii) negative lien on immovable assets, movable assets, current assets and cash flows of project SPVs to be provided upfront; (iii) First pari-passu charge on Escrow account of the Trust

Basic EPU amounts are calculated by dividing the profit for the year attributable to Unit holders by the weighted average number of units outstanding during the year.

Diluted EPU amounts are calculated by dividing the profit attributable to unit holders by the weighted average number of units outstanding during the year plus the weighted average number of units that would be issued on conversion of all the dilutive potential units into unit capital.

The following reflects the profit and unit data used in the basic and diluted EPU computation

* units issuable pursuant to the Project Implementation and Management Agreement dated November 10, 2016 as amended, towards the additional transmission charges as may be approved by CERC for the additional expenditure incurred by BDTCL. The petition for such tariff increase is currently pending with CERC.

Notes to the Statement of Net Distributable Cash Flows

1. Excludes INR 1,395.39 million of debt repayment by JTCL to IndiGrid out of the proceeds of total external debt of INR 4,230 million raised by JTCL during the year

2. Includes amount of INR 207.95 million towards creation of interest service reserve account in respect of the external debt raised during the year

3. The Net Distributable Cash Flows (“NDCF”) as above is for the year ended March 31, 2018. Out of above NDCF, an amount of INR 1,850.94 million has already been distributed as dividends to unit holders.

Note 3: Related Party Transactions

I. List of related parties as per the requirements of Ind AS 24 - Related Party Disclosures

A. Related parties where control exists Subsidiaries

Sterlite Grid 1 Limited (SGL-1)

Bhopal Dhule Transmission Company Limited (BDTCL)

Jabalpur Transmission Company Limited (JTCL)

RAPP Transmission Company Limited (RTCL)

Purulia & Kharagpur Transmission Company Limited (PKTCL)

Maheshwaram Transmission Limited (MTL)

B. Other related parties under Ind AS-24 with whom transactions have taken place during the year Entity with significant influence over the Trust

Sterlite Power Grid Ventures Limited (SPGVL)

II. List of additional related parties as per Regulation 2(1)(zv) of the InvIT Regulations

A. Parties to IndiGrid

Sterlite Power Grid Ventures Limited (SPGVL) - Sponsor and Project Manager of IndiGrid Sterlite Investment Managers Limited (SIML) - Investment Manager of IndiGrid Axis Trustee Services Limited (ATSL) - Trustee of IndiGrid

B. Promoters of the parties to IndiGrid specified in (A) above

Sterlite Power Transmission Limited - Promoter of SPGVL and SIML Axis Bank Limited - Promoter of ATSL

C. Directors of the parties to IndiGrid specified in (A) above (i) Directors of SPGVL:

Pravin Agarwal

Pratik Agarwal

A. R. Narayanaswamy

Avaantika Kakkar

Ved Mani Tiwari

Anand Agarwal (till 10.10.2017)

Udai Dhawan (till 22.01.2018)

(ii) Directors of SIML:

Pratik Agarwal Kuldip Kumar Kaura Tarun Kataria Shashikant Bhojani Rahul Asthana Harsh Shah

(iii) Directors of ATSL:

Srinivasan Varadarajan Ram Bharoseylal Vaish Sidharth Rath Rajaraman Viswanathan Raghuraman Mahalingam

** IndiGrid acquired NCDs and Equity Shares of SGL-1 in exchange of its units amounting to INR 5,880.36 million. Since the nominal value of NCDs was INR 6,658.24 million. Hence the entire consideration was allocated to NCDs.

# Includes amount of INR 525.10 million towards equity component of Non- Convertible Debentures issued by Sterlite Grid 1 Limited and INR 579.50 million towards payable to SPGVL in respect of acquisition of BDTCL. Refer note 4 and 16 for details.

Details in respect of related party transactions involving acquisition of InvIT assets as required by Para 4.4(b)(iv) of Section A of Annexure A to SEBI Circular dated October 20, 2016 are as follows:

(B) Material conditions or obligations in relation to the transactions:

Acquisition of BDTCL and JTCL (through acquisition of SGL-1):

Pursuant to the Project Implementation and Management Agreement dated November 10, 2016 as amended on April 25, 2017 (“PIMA”) executed among SIML, ATSL, SPGVL, SGL-1, BDTCL and JTCL, IndiGrid would issue additional units to SPGVL in the event CERC approves additional tariff for BDTCL and/or JTCL in respect of cost escalations in those projects for which petitions were filed with CERC. The units to be issued to SPGVL shall be equivalent to 80% of the Cost Escalation for each of BDTCL and JTCL as approved by CERC.

SPGVL will be entitled to additional units only if the cost escalation and the resultant revision in levelised transmission charges is received during the period commencing from the date of the PIMA and until the date which is 18 months of listing of units of IndiGrid (being the date of receipt of final listing and trading approvals for the units).

CERC vide Order dated May 8, 2017 approved cost escalation of INR. 1,699.90 million for JTCL. Accordingly, IndiGrid issued additional units of INR 1,359.92 million (being 80% of the cost escalation approved by CERC) to SPGVL. The petition for cost escalation for BDTCL is currently pending with CERC.

(C) No external financing has been obtained for the acquisition of BDTCL and JTCL and no fees or commission were received/to be received by any associate of the related party in relation to the transaction.

Note 4: Significant accounting judgements, estimates and assumptions

The preparation of the Trust’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Trust’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements.

Classification of Unitholders’ funds

Under the provisions of the InvIT Regulations, IndiGrid is required to distribute to Unitholders not less than ninety percent of the net distributable cash flows of IndiGrid for each financial year. Accordingly, a portion of the unitholders’ funds contains a contractual obligation of the Trust to pay to its Unitholders cash distributions. The Unitholders’ funds could therefore have been classified as compound financial instrument which contain both equity and liability components in accordance with Ind AS 32 - Financial Instruments: Presentation. However, in accordance with SEBI Circulars (No. CIR/IMD/DF/114/2016 dated 20-0ct-2016 and No. CIR/IMD/DF/127/2016 dated 29-Nov-2016) issued under the InvIT Regulations, the unitholders’ funds have been classified as equity in order to comply with the mandatory requirements of Section H of Annexure A to the SEBI Circular dated 20-0ct-2016 dealing with the minimum disclosures for key financial statements. In line with the above, the dividend payable to unit holders is recognised as liability when the same is approved by the Investment Manager

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities or fair value disclosures within the next financial year, are described below. The Trust based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Trust. Such changes are reflected in the assumptions when they occur

Payable for project acquisition

BDTCL had filed petition dated October 15, 2016 with CERC for grant of incremental tariff to compensate for additional expenditure incurred on BDTCL project. Pursuant to the Project Implementation and Management Agreement dated November 10, 2016 as amended (“PIMA”), the Trust will issue additional units to Sterlite Power Grid Ventures Limited (“SPGVL”) in case any additional tariff is approved by CERC. The units that will be issued would be to the extent of 80% of the additional capital expenditure as approved by CERC in respect of the pending petition. Accordingly, the Trust has estimated and recorded an amount of INR 579.50 million towards the units issuable to SPGVL in accordance with PIMA as payable for asset acquisition. The consideration would be discharged in the form of units of the Trust. The number of units that will be issued is variable since the pricing of the units will be based on Regulation 76 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended, hence the same has been classified as financial liability. Since the management expects to receive the CERC Order within 12 months, there is no material change in the fair value of the contingent consideration as at March 31, 2018.

Fair valuation and disclosures

SEBI Circulars issued under the InvIT Regulations require disclosures relating to net assets at fair value and total returns at fair value (refer Note 17 and 18). In estimating the fair value of investments in subsidiaries (which constitute substantial portion of the net assets), the Trust engages independent qualified external valuers to perform the valuation. The management works closely with the valuers to establish the appropriate valuation techniques and inputs to the model. The management reports the valuation report and findings to the Board of the Investment Manager half yearly to explain the cause of fluctuations in the fair value of the transmission projects. The inputs to the valuation models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as WACC, Tax rates, Inflation rates, etc. Changes in assumptions about these factors could affect the fair value. (refer Note 17 for details).

Impairment of non-financial assets

Non-financial assets of the Trust primarily comprise of investments in subsidiaries. Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The recoverable amounts for the investments in subsidiaries are based on the fair values less costs of disposal/value in use of the underlying projects. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budgets/forecasts over the life of the projects. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash flows. As at March 31, 2018, an amount of INR 496.03 million has been provided as impairment on investment in subsidiary. The recoverable amount of the investment in subsidiary has been computed based on value in use calculation for the underlying projects. The discount rate (WACC) used for the valuation of the underlying projects is in the range of 7.86% to 8.08%.

Note 5: Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Trust’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

* The management assessed that cash and cash equivalents, other financial assets and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The management has further assessed that investment in NCDs of subsidiary, borrowings availed and loans given approximate their carrying amounts largely due to movements in interest rates from the recognition of such financial instrument till period end not being material.

The Trust is required to present the Statement of total assets at fair value and Statement of total returns at fair value as per SEBI Circular No. CIR/IMD/DF/114/2016 dated October 20, 2016 as a part of these financial statements - Refer Statement of Net assets at fair value and Statement of Total Returns at fair value.

The inputs to the valuation models for computation of fair value of assets for the above mentioned statements are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as WACC, Tax rates, Inflation rates, etc.

The significant unobservable inputs used in the fair value measurement required for disclosures as above categorised within Level 3 of the fair value hierarchy as above together with a quantitative sensitivity analysis as at 31 March 2018 are as shown below

The following table provides the fair value measurement hierarchy of the Trust’s assets and liabilities: Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2018:

There have been no transfers between Level 1 and Level 2 during the year ended 31 March 2018. There were no assets/liabilities as at 31 March 2017. Hence disclosures for previous year have not been given. Refer Note 25.

Note 6: Financial risk management objectives and policies

The Trust’s principal financial liabilities comprise of borrowings and other financial liabilities. The main purpose of these financial liabilities is to finance the Trust’s operations. The Trust’s principal financial assets include investments, loans, cash and bank balances and other financial assets that derive directly from its operations.

The Trust may be exposed to market risk, credit risk and liquidity risk. The Investment Manager oversees the management of these risks. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Trust’s policy that no trading in derivatives for speculative purposes may be undertaken. The management reviews and agrees policies for managing each of these risks, which are summarised below.

The Risk Management policies of the Trust are established to identify and analyse the risks faced by the Trust, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Trust’s activities.

Management has overall responsibility for the establishment and oversight of the Trust’s risk management framework.

(A) 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 three types of risk: interest rate risk, currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings and investments.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Trust’s borrowings are at fixed rate, hence the Trust is not exposed to Interest rate risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Trust did not have any exposure in foreign currency as at March 31, 2018.

Equity price risk

The Trust’s investments in equity shares of subsidiaries are susceptible to market price risk arising from uncertainties about future values of those investments. Reports on the equity port folio are submitted to the senior management on a regular basis. The Board of Directors of the Investment Manager reviews and approves all equity investment decisions. At the reporting date, the exposure to equity investments in subsidiary at carrying value was INR 1,628.53 million (31 March 2017: Nil). Sensitivity analyses of significant unobservable inputs used in the fair value measurement are disclosed in Note 18.

(B) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Trust is exposed to credit risk from its investing activities including loans to subsidiaries, deposits with banks and other financial instruments. As at March 31, 2018, the credit risk is considered low since substantial transactions of the Trust are with its subsidiaries.

(C) Liquidity risk

Liquidity risk is the risk that the Trust may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Trust’s objective is to, at all times times, maintain optimum levels of liquidity to meet its cash and collateral obligations. The Trust requires funds both for short term operational needs as well as for long term investment programs mainly in transmission projects. The Trust closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents, liquid investments and sufficient committed fund facilities, will provide liquidity.

The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The other financial liabilities are with short term durations. The table below summarises the maturity profile of the Trust’s financial liabilities based on contractual undiscounted payments:

For the purpose of the Trust’s capital management, capital includes issued unit capital and all other reserves attributable to the unit holders of the Trust. The primary objective of the Trust’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise unit holder value.

The Trust manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Trust may adjust the dividend payment to unitholders (subject to the provisions of InvIT regulations which require distribution of at least 90% of the net distributable cash flows of the Trust to unit holders), return capital to unitholders or issue new units. The Trust monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Trust’s policy is to keep the gearing ratio optimum. The Trust includes within net debt, interest bearing loans and borrowings, trade and other payables less cash and cash equivalents, other bank balances and short term investments.

During the year, IndiGrid acquired 100% of the equity share capital of SGL-1, which in turn holds 100% of the equity share capital of BDTCL and JTCL pursuant to the Securities Purchase Agreement dated May 8, 2017, including 665,824,156 non-convertible debentures of face value INR 10 each of SGL-1 from SPGVL in exchange of 45,203,627 units issued by IndiGrid to SPGVL.

IndiGrid raised funds of INR 22,500 million through Initial Public Offering. These funds were utilised to provide loans to BDTCL and JTCL pursuant to the facility agreements dated May 5, 2017, entered into between the Trustee (on behalf of IndiGrid), the Investment Manager, and each of BDTCL and JTCL, respectively

IndiGrid further issued 13,599,200 units to SPGVL pursuant to Project Implementation and Management Agreement dated November 10, 2016 as amended (“PIMA”) towards the additional transmission charges for JTCL as approved by CERC vide its order dated May 8, 2017 for the additional expenditure incurred by JTCL. The additional units were issued at INR 100 per unit to the extent of 80% of the additional capital expenditure approved by CERC which is INR 1,359.92 million.

Note 7: Subsequent event

On April 24, 2018, the Board of directors of the Investment Manager approved a dividend of INR 3 per unit for the period January 1 , 2018 to March 31, 2018 to be paid on or before 15 days from the date of declaration.

Note 8: Commitments

The Trust has entered into Share Purchase Agreement on February 19, 2018 with Techno Power Grid Company Limited, Techno Electric and Engineering Company Limited and Patran Transmission Company Limited (‘PTCL’) pursuant to which the Trust has agreed to purchase entire share capital of PTCL at cost of approx. INR 2,320 million based on the valuation report obtained by the management. The transaction is expected to complete in the first quarter of financial year 2018-19.

Note 9: Segment reporting

The Trust’s activities comprise of owning and investing in transmission SPVs to generate cash flows for distribution to uniholders. Based on the guiding principles given in Ind AS - 108 “Operating Segments”, this activity falls within a single operating segment and accordingly the disclosures of Ind AS -108 have not separately been given

Note 10: Previous year figures

IndiGrid was registered as an irrevocable trust under the Indian Trusts Act, 1882 on October 21, 2016 and registered as an Infrastructure Investment Trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 on November 28, 2016. However, there were no transactions during the period October 21, 2016 to March 31, 2017. Hence, corresponding figures for previous period have not been presented.