We have audited the accompanying financial statements of
Schneider Electric Infrastructure Limited (“the Company”),
which comprise the Balance Sheet as at March 31,2025, the
Statement of Profit and Loss (including Other Comprehensive
Income), 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, 2025, 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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Sl.
No.
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The key audit matter
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How the matter was 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
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procedures were applied in this area, amongst others to
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recognized when control of the goods or services
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obtain sufficient and appropriate audit evidence:
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are transferred to the customer at an amount that
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• We assessed the appropriateness of the revenue
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reflects the consideration to which the Company
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recognition accounting policies and its compliance
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expects to be entitled in exchange for those goods
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in terms of Ind AS 115 ‘Revenue from contracts with
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or services.
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customers'.
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The Company has concluded that as principal,
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• We obtained an understanding of management's
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it typically controls the goods or services before
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internal controls over the revenue recognition process
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transferring them to the customers. There is an
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and evaluated the design and tested the operating
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inherent risk and presumed fraud risk around the
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effectiveness of key controls.
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accuracy and existence of revenue recognised.
Further, revenue is an important element of how the
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• We carried out analytical procedures on revenue
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Company measures its performance. The Company
focuses on revenue as a key performance measure,
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recognised during the year to identify unusual variances
and discussed with designated management personnel.
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which could create an incentive for revenue to
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• We performed substantive procedures by testing the
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be recognized before the controls have been
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underlying documents on samples selected based
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transferred.
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on a representative sampling of revenue transactions
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Accordingly, due to the significant risk associated
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recorded during the year.
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with revenue recognition in accordance with
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• We performed cut-off testing on sales transactions
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terms of Ind AS 115 ‘Revenue from contracts with
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made near the year-end on sample basis by obtaining
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customers', it has been determined a key audit
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supporting documentation including customer
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matter in our audit of the financial statements.
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confirmation of receipt of goods to establish that sales
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In view of the above and given the Company and its
stakeholders focus on revenue as a key performance
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and corresponding trade receivables are properly
recorded in the correct period.
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indicator, we determined this to be a key audit
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We tested the relevant disclosures made in the financial
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matter.
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statements.
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Sl.
No.
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The key audit matter
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How the matter was 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
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procedures were applied in this area, amongst others to
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customers, amounted to ' 66,705 Lakh at year-end,
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obtain sufficient and appropriate audit evidence:
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which is significant part of the total assets of the
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• Obtained an understanding of the processes
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Company. Impairment loss on trade receivables is
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implemented to estimate impairment provision against
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recognized in accordance with accounting policies
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trade receivables.
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as detailed in “material accounting policies” in the
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• Tested key controls (both design and operating
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financial statements.
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effectiveness) over estimation of impairment loss.
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The Company is required to assess the recoverability
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• In respect of significant provisions made for specific
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of its trade receivables on a regular basis. It makes
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trade receivables, we obtained and evaluated specific
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an impairment allowance for specific customers on
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assessment from the Company and examined related
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case-to-case analysis. It further makes an estimate
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available information such as correspondences with
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of impairment allowance for balance receivables
on the basis of lifetime expected credit loss method
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customers and publicly available information.
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based on provision matrix in accordance with Ind AS
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• Evaluated the “expected credit loss” model adopted
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109, Financial Instruments.
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to estimate the impairment allowance and tested the
related assumptions and computations.
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In assessing the recoverability of trade receivables,
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• Obtained and tested the base data used in the above-
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management also exercised significant judgements
to evaluate the collectability from individual
customers after considering their creditworthiness,
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mentioned model such as trade receivables ageing,
historical billing and collection data.
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whether they have financial difficulties, experience
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• Evaluated the various assumptions and judgements
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of default or delinquency in payments and ageing
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applied such as discount rate, period of delays of
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analysis. The judgements applied by management
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receipts from customers, etc.
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have a significant impact on the level of provision
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• Circulated the balance confirmation letter to the
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required for trade receivables.
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customers and analysed the responses in balance
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In view of above, we determined this area to an area
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confirmation letter obtained from the customers.
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of audit focus, and accordingly, a key audit matter.
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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
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procedures were applied in this area, amongst others to
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complexities arising from applicability of various
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obtain sufficient and appropriate audit evidence:
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laws and regulations with respect to positions on
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• We obtained an understanding of the process of
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matters relating to income tax, sales tax, goods and
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identification of tax litigations, related contingent
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services tax, service tax, excise, customs etc. (either
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liabilities and the key uncertain tax positions.
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past or present). Provision for taxes is recognized
or contingent liabilities are disclosed in accordance
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• Obtained the list of ongoing litigations of the Company
and discussed the same with the management to
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with accounting policies as detailed in “material
accounting policies” in the financial statements.
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understand the details of the underlying matters.
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Due to complexity of cases, significant amount
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• Tested key controls (both design and operating
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involved and timescales for resolution, significant
judgment and estimations are required in assessing
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effectiveness) over the estimate of provisions for various
taxes.
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the range of possible outcomes for some of these
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• We analysed the Company's judgment regarding
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matters. These judgments could change over time
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the eventual resolution of matters with various tax
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as each of the matter progresses depending on
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authorities. In this regard, we understood how the
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experience on actual assessment proceedings
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Company has considered past experience, where
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by tax and other authorities and other judicial
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available, with the authorities in the respective
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precedents.
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jurisdictions.
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The Company makes an assessment to determine
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• We obtained representations from relevant consultants
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the outcome of these tax positions and decides
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and legal counsels. We also evaluated the objectivity,
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to make an accrual or consider it to be a possible
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competence, and relevant experience of those
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contingent liability. This affects the measurement
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consultants / legal counsels.
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and accuracy of provision for taxes.
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• Involved specialists to evaluate estimates on the basis
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In view of the above-mentioned factors, we have
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of the facts of each case, internal evaluations, legal
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determined this to be a key audit matter.
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precedence, assumptions made and external legal
opinions.
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,
total 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 system 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 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 also provide those charged with governance 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;
(ii) the daily backup of certain items of books
of account maintained in electronic mode in
the primary accounting software, which has
not been kept in servers physically located in
India during the period April 1,2024 to March
16, 2025;
(iii) 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 31,2025.
(c) The Balance Sheet, the Statement of Profit and
Loss (including Other Comprehensive Income),
Statement of Changes in Equity and the Statement
of Cash Flow 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 31,2025
taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,
2025 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 its knowledge and
belief, as disclosed in the note 45(ii) to
the financial statement, 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 or entity, 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 its knowledge and
belief, as disclosed in the note 45(ii) to
the financial statement, no funds have
been received by the Company from
any person or entity, 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) 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 31,2025, 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, the audit trail to the
extent it was enabled and operated
as stated above, 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 No.: 25509590BMNWCN7264
Place: Gurugram
Date: May 26, 2025
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