Page 51 - Index

02-40 CORPORATE OVERVIEW 41-59 STATUTORY REPORTS 60-147 FINANCIAL STATEMENTS Mandatory Disclosures
• Details of issue and buyback of units during the year, if any
Pursuant to the IPO of the PGInvIT, 909,999,200 units were issued to the unitholders.
Buyback of Units:
During the period under review there was no buy back of any securities by the Trust.
• Brief details of material and price sensitive information
Except otherwise specified or disclosed to the Exchange from time to time, during the period under review, there were no material changes, events or material and price sensitive information to be disclosed for the Trust.
• Brief details of material litigations and regulatory actions-
Except otherwise specified in this report or its Annexures, there are no material litigation and actions by regulatory authorities currently pending against the Trust, the Sponsor and the Project Manager, the Investment Manager, or any of their Associates and the Trustee. For the Trust, Investment Manager and for Sponsor or Project Manager, outstanding cases and/or regulatory action which involve an amount exceeding ` 621.71million, ` 12.51million and ` 21,348.95million (being 5% of the total consolidated revenue or consolidated networth of the respective entity, whichever is lower) have been considered material, respectively for the review period.
Regulatory - Except otherwise specified, during the period under review, there were no regulatory changes that has impacted or may impact the underlying projects.
• Explanation of variation, if any, in the use of proceeds from the objects stated in the offer document and any other variation between projected utilization of funds and actual utilization made by the InvIT in the offer document.
The proceeds of the initial public offer (IPO) of units of POWERGRID Infrastructure Investment Trust (PGInvIT) have been fully utilized in line with the objects stated in the Final Offer Document dated May 6, 2021, without any deviations or variations in the stated use of proceeds.
• Risk factors
The Trust constantly monitor the risks associated with its business and adequate steps are taken to mitigate these risks.
Major risks are as follows:
A. Financial health of Customer
Delay in payment of billed transmission charges by customers to the CTU under sharing regulations may affect the cash flows and results of operations.
B. Ability to operate and maintain target availability
Inability of Project Manager to ensure operate and maintain our power transmission projects to achieve prescribed availability may adversely impact the cash flows.
C. Distributions to our Unitholders
Inability to make distributions as per investor expectations or anticipation could materially and adversely affect the market price of our Units
D. Increase in Costs
The transmission charges under TSAs are largely fixed. Increase in O&M costs due to factors beyond our control could adversely impact profitability.
E. Growth
Highly competitive environment of power transmission sector and increased competitive pressure could adversely affect the ability of the Investment Manager to execute the growth strategy.
F. Unforeseen Events
Any force majeure event rendering our project inoperable and not covered by insurance or TSA can adversely impact the results of operations and cash flows.
G. Insurance
We have taken Industrial All Risk Insurance Policy for our assets. If our losses significantly exceed our insurance coverage or cannot be recovered through insurance for any reason whatsoever, our results of operations and cash flows could be materially and adversely affected.
H. Control of Government of India
There is no assurance that the Investment Manager Board will at all times be in compliance with the requirements for board constitution under the InvIT Regulations.
I. Novel Coronavirus (‘COVID-19’)
We cannot predict the effect any event like epidemics, pandemics such as Covid-19, weather conditions, natural disasters, etc. will have on our business, prospects, financial condition, results of operations, cash flows, future operations and performance.
Note: Detailed risk factors are provided in the Final Offer Document.
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