Schneider Electric Infrastructure Limited Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Schneider Electric Infrastructure Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive I ncome), the Statement of Changes in Equity and the Statement of Cash Flows 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 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, and its profit and total comprehensive income, changes in equity and its cash flows 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) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) 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 ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 of the current period. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matters
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How the matters were addressed in our audit
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1
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Revenue Recognition
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In view of the significance of the matter, following audit
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Revenue from contracts with customers is recognized when control of the goods or services are transferred to
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procedures were applied in this area, amongst others to obtain sufficient and appropriate audit evidence:
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the customer at an amount that reflects the consideration
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• We assessed the appropriateness of the revenue recognition
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to which the Company expects to be entitled in exchange
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accounting policies and its compliance in terms of Ind AS
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for those goods or services.
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115 ‘Revenue from contracts with customers’.
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The Company has concluded that as principal, it typically
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• We obtained an understanding of management’s internal
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controls the goods or services before transferring them
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controls over the revenue recognition process and evaluated
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to the customers. There is an inherent risk and presumed
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the design and tested the operating effectiveness of key
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fraud risk around the accuracy and existence of revenue
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controls.
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recognised. Further, revenue is an important element of how the Company measures its performance. The Company focuses on revenue as a key performance measure, which could create an incentive for revenue to
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• We carried out analytical procedures on revenue recognised during the year to identify unusual variances and discussed with designated management personnel.
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be recognized before the controls have been transferred.
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• We performed substantive procedures by testing the
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Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers’, it has been
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underlying documents on samples selected based on a representative sampling of revenue transactions recorded during the year.
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determined a key audit matter in our audit of the financial
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• We performed cut-off testing on sales transactions made
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statements.
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near the year-end on sample basis by obtaining supporting
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In view of the above and given the Company and its stakeholders focus on revenue as a key performance indicator, we determined this to be a key audit matter.
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documentation including customer confirmation of receipt of goods to establish that sales and corresponding trade receivables are properly recorded in the correct period.
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We tested the relevant disclosures made in the financial statements.
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Key audit matters
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How the matters were addressed in our audit
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2
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Trade Receivables
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In view of the significance of the matter, following audit
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Trade receivables, including retention money with customers, amounted to ' 81,268 Lakh at year-end, which
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procedures were applied in this area, amongst others to obtain sufficient and appropriate audit evidence:
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is significant part of the total assets of the Company.
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• Obtained an understanding of the processes implemented to
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Impairment loss on trade receivables is recognized
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estimate impairment provision against trade receivables.
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in accordance with accounting policies as detailed in “material accounting policies” in the financial statements.
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• Tested key controls (both design and operating effectiveness) over estimation of impairment loss.
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The Company is required to assess the recoverability of its trade receivables on a regular basis. It makes an impairment allowance for specific customers on case-to-case analysis. It further makes an estimate of impairment allowance for balance receivables on the basis of lifetime expected credit loss method based on provision matrix in
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• In respect of significant provisions made for specific trade receivables, we obtained and evaluated specific assessment from the Company and examined related available information such as correspondences with customers and publicly available information.
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accordance with Ind AS 109, Financial Instruments.
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• Evaluated the “expected credit loss” model adopted to
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In assessing the recoverability of trade receivables, management also exercised significant judgements to
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estimate the impairment allowance and tested the related assumptions and computations.
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evaluate the collectability from individual customers after
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• Obtained and tested the base data used in the above-
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considering their creditworthiness, whether they have
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mentioned model such as trade receivables ageing, historical
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financial difficulties, experience of default or delinquency
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billing and collection data.
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in payments and ageing analysis. The judgements applied by management have a significant impact on the level of provision required for trade receivables.
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• Evaluated the various assumptions and judgements applied such as discount rate, period of delays of receipts from customers, etc.
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In view of above, we determined this area to an area of audit focus, and accordingly, a key audit matter.
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• Circulated the balance confirmation letter to the customers and analysed the responses in balance confirmation letter obtained from the customers.
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We tested the relevant disclosures made in the financial statements.
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3
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Tax Litigations
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In view of the significance of the matter, following audit
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The Company’s operations are subject to complexities arising from applicability of various laws and regulations
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procedures were applied in this area, amongst others to obtain sufficient and appropriate audit evidence:
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with respect to positions on matters relating to income
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• We obtained an understanding of the process of identification
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tax, sales tax, goods and services tax, service tax, excise,
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of tax litigations, related contingent liabilities and the key
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customs etc. (either past or present). Provision for taxes
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uncertain tax positions.
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is recognized or contingent liabilities are disclosed in accordance with accounting policies as detailed in “material accounting policies” in the financial statements.
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• Obtained the list of ongoing litigations of the Company and discussed the same with the management to understand the details of the underlying matters.
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Due to complexity of cases, significant amount involved and timescales for resolution, significant judgment and estimations are required in assessing the range of
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• Tested key controls (both design and operating effectiveness) over the estimate of provisions for various taxes.
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possible outcomes for some of these matters. These
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• We analysed the Company’s judgment regarding the eventual
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judgments could change over time as each of the
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resolution of matters with various tax authorities. In this
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matter progresses depending on experience on actual
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regard, we understood how the Company has considered
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assessment proceedings by tax and other authorities and
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past experience, where available, with the authorities in the
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other judicial precedents.
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respective jurisdictions.
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The Company makes an assessment to determine the
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• We obtained representations from relevant consultants and
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outcome of these tax positions and decides to make an
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legal counsels. We also evaluated the objectivity, competence,
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accrual or consider it to be a possible contingent liability.
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and relevant experience of those consultants / legal counsels.
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This affects the measurement and accuracy of provision for taxes.
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• Involved specialists to evaluate estimates on the basis of the facts of each case, internal evaluations, legal precedence,
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In view of the above-mentioned factors, we have
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assumptions made and external legal opinions.
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determined this to be a key audit matter.
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We tested the relevant disclosures made in the financial statements.
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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.
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 the other information is materially inconsistent with the financial statements, or our knowledge obtained during our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance 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), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. 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 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, the Management and Board of Directors are 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is 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:
• 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.
• Obtain an understanding of internal financial controls 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
• Conclude on the appropriateness of the Management and Board of Directors 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.
• 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 financial controls that we identify during our audit.
We a lso provide those cha rged with governa nce 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 of the current period 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 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the ‘Annexure A' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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) 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 except for:
(i) the matter stated in the paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014; and
(ii) the daily backup of certain items of books of account maintained in electronic mode in one non-primary accounting software, which has not been kept in servers physically located in India during the year ended March 31, 2026.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(b) above on reporting under section 143(3)(b) of the Act and paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure B'.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of 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 of pending litigations on its financial position in its financial statements - Refer Note 34 to the financial statements.
ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts - Refer Note 16(ii) (d) to the financial statements. The Company did not have any material foreseeable losses on derivative contracts.
iii. There were no amounts which were 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 it’s knowledge and belief, as disclosed in the note 45(ii) to the 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 (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that,
to the best of it’s knowledge and belief, as disclosed in the note 45(ii) to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
(v) The Company has not declared or paid any dividend during the year and has not proposed final dividend during the year.
(vi) Based on our examination, which included tests checks, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2026, which have a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the respective software, except that,
a) For the primary accounting software used for maintaining the books of account, the feature of recording audit trail (edit log) facility was not enabled at application level for changes through certain tables and changes made by certain privileged users with specific access rights due to software’s inherent functionalities.
b) The database of primary accounting software and one non-primary accounting software used by the Company, have been hosted by the third-party service provider. However, in the absence of independent auditor’s report for full reporting period in relation to controls at the third-party service providers, we are unable to comment if the audit trail (edit log) facility was enabled at the database level.
During the course of performing our audit procedures, except for the aforementioned instances of audit trail not maintained, where the question of our commenting on whether the audit trail feature has been tampered with does not arise, we did not come across any instance of the audit trail feature being tampered with.
Additionally, for the periods where the audit trail (edit log) facility was enabled and operated, audit trail has been preserved by the Company as per the statutory requirements for record retention.
For S N Dhawan & CO LLP
Chartered Accountants Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590 UDIN: 26509590QTFDQQ7184
Place: Gurugram Date: May 28, 2026
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