Page 143 - Index

02-40 CORPORATE OVERVIEW 41-59 STATUTORY REPORTS 60-147 FINANCIAL STATEMENTS Consolidated
Notes
to the Consolidated Financial Statements for the year ended 31 March 2022
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.
iii) In respect of claims made by various State/ Central Government Departments/Authorities towards building permission fees, penalty on diversion of agriculture land to non-agriculture use, Nala tax, water royalty etc. and by others, contingent liability of ₹ 5.89 million has been estimated
iv) In respect of land acquired for the projects, the land losers have claimed higher compensation before various authorities/courts which are yet to be settled. In such cases, contingent liability of ₹ 0.01 Million (Previous Year 0.01 Millions) has been estimated
b) Other contingent liabilities amount to ₹ 105.77 million related to arbitration cases/RoW cases & land compensation cases have been estimated.
44. FINANCIAL RISK MANAGEMENT
The Group’s principal financial liabilities comprises of borrowings denominated in Indian rupees, trade payables and other payables. The main purpose of these financial liabilities is to finance the Group’s investments and operations.
The Group’s principal financial assets include trade receivables, cash and cash equivalents and other financial assets that are generated from its operations.
The Group’s activities expose it to the following financial risks, namely,
(A) Credit risk
(B) Liquidity risk
(C) Market risk
This note presents information regarding the Group’s exposure, objectives and processes for measuring and managing these risks.
The management of financial risks by the Group is summarized below: -
(A) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The group is exposed to credit risk from its operating activities on account of trade receivables, deposits with banks and other financial instruments.
42. CAPITAL AND OTHER COMMITMENTS
Particulars
₹ in million
As at 31 March 2022
102.11
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
The Group has entered into separate Share Purchase agreements with POWERGRID for acquisition of balance 26% equity stake in each of the subsidiary i.e. PKATL, PPTL, PWTL and PJTL.
The Group has entered into transmission services agreement (TSA) with long term transmission customers pursuant to which the Group has to ensure minimum availability of transmission line over the period of the TSA. The TSA contains provision for disincentives and penalties.
Other commitments related to services to be rendered / procurements made in the normal course of business are not disclosed to avoid excessive details.
43. CONTINGENT LIABILITY
a) Claims against the Group not acknowledged as debts in respect of Disputed Income Tax/Sales Tax/ Excise/Municipal Tax/Entry Tax Matters
i) Disputed Entry Tax Matters amounting to ` 96.28 million contested before the Appellant Deputy Commissioner.
In this regard, the ADC vide order dt.26.07.2018 in ADC Order No.777 had granted a conditional stay upon the Company depositing 35% of the disputed tax, i.e., ₹ 33.70 million. In hearing of the case, ADC (CT) has dismissed the appeal vide order dated 17.06.2020. The company filed writ petition with Hon’ble High Court of the state of Telengana on 17.08.2020 and Hon’ble High Court grant stay for all further proceedings against the ADC order dated 17.06.2020. The Company is confident that this matter will be disposed off in favour of the Company.
ii) Intimation from Income Tax Department Under Section 143(1a) amounting ₹ 3.11 Million (For the Assessment Year 2019-20) against the Income Tax Return Filed for FY 2018-19. Appeal has been made to IT Department against the same.
POWERGRID Infrastructure Investment Trust 141