Page 114 - Index

Notes
to the Consolidated Financial Statements for the year ended 31 March 2022
1. GROUP INFORMATION:
2. SIGNIFICANT ACCOUNTING POLICIES
POWERGRID Infrastructure Investment Trust (“PGInvIT”/”Trust”) was set up on 14 September 2020 as
an irrevocable trust, pursuant to the Trust Deed, under
the provisions of the Indian Trusts Act, 1882. The Trust was registered with SEBI on 7 January 2021 as an infrastructure investment trust under Regulation 3(1) of the SEBI
InvIT Regulations having registration number IN/ InvIT/20-21/0016. 2.1
Power Grid Corporation of India Limited (“POWERGRID”) is the Sponsor to the Trust. IDBI Trusteeship Services Limited is the Trustee to the Trust. POWERGRID Unchahar Transmission Limited (“PUTL”) is appointed as the investment manager and POWERGRID is appointed as the project manager to the Trust.
The investment objectives of the Trust are to carry on the activities of and to make investments as an infrastructure investment trust as permissible in terms of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 read with circulars and guidelines, notifications and amendments issued thereunder (collectively the “InvIT Regulations”)and in accordance with the Trust Deed. The investment of the Trust shall be in any manner permissible under, and in accordance with the InvIT Regulations and applicable law including in holding companies and/or special purpose vehicles and/or infrastructure projects and/or securities in India.
PGInvIT is holding special purpose vehicle (“SPV”) / subsidiaries which are infrastructure projects engaged in the power transmission business in India. Details of the same as on 31 March 2022 are as follows:
Name of the SPV Equity Holding
1. POWERGRID Vizag Transmission 100% Limited (“PVTL”)
2. POWERGRID Kala Amb Transmission 74% Limited (“PKATL”)
3. POWERGRID Parli Transmission 74% Limited (“PPTL”)
4. POWERGRID Warora Transmission 74% Limited (“PWTL”)
5. POWERGRID Jabalpur Transmission 74% Limited (“PJTL”)
The consolidated financial statements, comprise financial statement of PGInvIT and its subsidiaries (collectively, “the Group”) for the year ended 31 March 2022, were approved by the Board of Directors of Investment manager on 26 May 2022.
112 Annual Report 2021-22
A summary of the significant accounting policies applied in the preparation of the consolidated financial statements are as given below. These accounting policies have been applied consistently to all periods presented in the consolidated financial statements. The Consolidated financial statements of the group are consisting of the Trust and its subsidiaries.
Basis of Preparation
i) Compliance with Ind AS and InvIT Regulations
The consolidated financial statements comprise of the Consolidated Balance Sheet as at 31 March 2022, the Consolidated Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Consolidated Statement of Cash Flow and the Consolidated Statement of Changes in Unit Holders’ Equity for the year then ended and the Consolidated Statement of Net Assets at fair value as at 31 March 2022 and the Consolidated Statement of Total Returns at fair value and the Statement of Net Distributable Cash Flows (‘NDCFs’) of the Trust and each of its subsidiaries for the year then ended and a summary of significant accounting policies and other explanatory notes prepared in compliance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015 and InvIT Regulations, in each case, to the extent applicable and as amended thereafter.
ii) Basis of Measurement
The consolidated financial statements have been prepared on accrual basis and under the historical cost convention except following which have been measured at fair value:
Certain financial assets and liabilities measured at fair value (refer Note no. 2.15 for accounting policy regarding financial instruments).
iii) Functional and presentation currency
The consolidated financial statements are presented in Indian Rupees (Rupees or ₹), which is the Group’s functional and presentation currency and all amounts are rounded to the nearest million and two decimals thereof, except as stated otherwise.
iv) Use of estimates
The preparation of consolidated financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period.