1. We have audited the accompanying standalone financial
statements of GMR Power and Urban Infra Limited ('the
Company'), which comprise the Standalone Balance Sheet
as at 31 March 2026, the Standalone Statement of Profit
and Loss (including Other Comprehensive Income), the
Standalone Statement of Cash Flow and the Standalone
Statement of Changes in Equity for the year then ended,
and notes to the standalone financial statements, including
material accounting policy information and other
explanatory information.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone 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 ('Ind AS')
specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015 and
other accounting principles generally accepted in India, of
the state of affairs of the Company as at 31 March 2026,
and its profit (including other comprehensive income), its
cash flows and the changes in equity for the year ended on
that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards
on Auditing 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
Standalone 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 ('ICAI') together with the ethical
requirements that are relevant to our audit of the standalone
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 Code of Ethics. We believe that the audit evidence we
have is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter
4. We draw attention to Note 33(i) to the standalone financial
statements which describes that the Company has
recognised certain claims in the current year ended 31 March
2026 and preceding years pertaining to Dedicated Freight
Corridor Corporation ('DFCC') project basis evaluation by
the joint venture ('JV') incorporated between the Company
and SEW Infrastructure Limited, of JV's entitlement under
the contract towards recovery of prolonged cost, as further
detailed in the aforesaid note.
Based on the legal opinion and favourable award received
from Dispute Adjudicating Board as stated in the said note,
the management is of the view that the aforesaid claims as
included in unbilled revenue as at 31 March 2026 are fully
recoverable. Our opinion is not modified in respect of this
matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period. These
matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
6. We have determined the matter described below to be the key audit matters to be communicated in our report.
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Key audit matter
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How our audit addressed the key audit matter
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Fair value measurement of investments in subsidiaries, associates and joint ventures (refer Note 2.2.0 for the material
accounting policy and Note 5 for disclosures of the accompanying standalone financial statements)
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The Company has determined the fair value of its
investments in unquoted equity shares including
instruments in the nature of equity of its subsidiaries,
associates and joint ventures as at the year end. Determining
the fair value of such unquoted investments requires use
of valuation techniques which have been performed by
independent valuation experts, applying applicable
valuation methodologies.
The Company has total investment of? 3,968.62 Crore as
at 31 March 2026 which constitutes 65.48% of total assets
of the Company. The aforementioned investments are
carried at their respective fair values as at the reporting
date as per Ind AS 109 - 'Financial Instruments'.
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Our audit procedures to assess the reasonableness of fair
valuation of investments included, but were not limited to the
following:
• Obtained a detailed understanding of the management's
process and controls for determining the fair valuation of
unquoted equity and preference instruments;
• Evaluated the design and tested the operating effectiveness
of key controls implemented for fair valuation of the
investments;
• Obtained the valuation reports of the management's
valuation expert and assessed the expert's professional
competence, objectivity and capabilities in performing the
valuation of the investments;
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Key audit matter
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How our audit addressed the key audit matter
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The determination of carrying value of the Company's
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• Assessed the appropriateness of the valuation methodology
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investments in subsidiaries, associates and joint ventures is
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used for the fair valuation computation;
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dependent on management's estimates of future cash flows
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• Carried out an assessment of forecasts of future cash flows
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and their judgment with respect to final determination of
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prepared by the management across various sectors and
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tariff rates, operational performance of the plants, life
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business of the investee companies which involved,
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extension plans, availability and market prices of coal and
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evaluating the key assumptions including the discount rate
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other fuels, outcome of litigations, etc. in case of
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and comparing the estimates to externally available industry,
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investments in entities in the energy business, number of
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economic and financial data with the support of our auditor's
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smart meters installed, expected date of collection for
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expert and assessed the appropriateness of the aforesaid
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installed meters, etc. in case of investments in entities in
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key assumptions;
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the smart meter business and estimation of vehicle traffic
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and rates and favorable outcomes of litigations etc. in case
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• Engaged in discussions with the management on the
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of investments in expressway business.
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performance of the Company's investments as compared
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to previous year in order to evaluate whether the inputs
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Owing to the uncertainties involved in forecasting and
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and assumptions used in the cash flow forecasts were
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discounting future cash flows, significant management's
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suitable;
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judgement and subjectivity involved in estimates and
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underlying key assumptions used in the valuation models
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• Discussed the significant ongoing litigations in the investee
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and the significance of the Company's investments as at
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companies which had a material impact to ascertain the
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31 March 2026 in context of standalone financial statements,
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appropriateness of the outcome considered in the respective
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we have determined this as a key audit matter for current
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valuation models;
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year audit.
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• Tested the arithmetical accuracy of the computations done
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In addition to the above, following disclosures made in the
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in accordance with the valuation models;and
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accompanying standalone financial statements have been
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• Ensured the appropriateness and adequacy of the related
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considered as fundamental to the users' understanding of
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disclosures in the standalone financial statements in
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such financial statements:
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accordance with the accounting standards.
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a. As explained in note 5.2 to the accompanying
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standalone financial statements, the Company has
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invested in GMR Consulting Services Limited ('GCSL'),
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subsidiary of the Company, which has further invested
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in step down subsidiaries. The Company together with
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GCSL has investments in GMR Energy Limited ('GEL'), a
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subsidiary of the Company, amounting to ' 2,820.67
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Crore as at 31 March 2026. GEL has further invested in
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GMR Kamalanga Energy Limited ('GKEL') and GMR
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Warora Energy Limited ('GWEL'), both subsidiary
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companies. The carrying values of investment of the
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Company in GEL is also dependent upon fair values of
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GKEL and GWEL. The aforementioned investments are
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designated at their respective fair values as at the
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reporting date as per Ind AS 109- 'Financial Instruments'.
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The carrying values is based on the respective valuation
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performed by an external expert using the discounted
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future cash flows method and other matters as follows:
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- Note 5.4 to the accompanying standalone financial
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statements which states that the fair value of
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investment in GKEL considered for the purpose of
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determining the carrying value of aforesaid
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investment in GEL is based on the valuation of GKEL
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performed by an external valuation expert using
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the discounted future cash flows method which is
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dependent on the achievement of certain key
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assumptions considered in aforementioned
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valuation such as expansion and optimal utilization
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of existing plant capacity, and timing and amount
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of settlement of disputes with customers, which
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are outstanding as on 31 March 2026 as further
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explained in the said note.
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Key audit matter
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How our audit addressed the key audit matter
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- Note 5.3 to the accompanying standalone financial
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statements which states that the fair value of
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investment in GWEL considered for the purpose of
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determining the carrying value of aforesaid
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investment in GEL, is based on the valuation of
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GWEL performed by an external valuation expert
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using the discounted future cash flows method
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which is dependent upon recoverability of claims
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relating to transmission charges from Maharashtra
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State Electricity Distribution Company Limited
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('MSEDCL') as explained below, which are under
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dispute and pending settlement/ realization as on
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31 March 2026, capacity utilization of plant in future
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years and certain other key assumptions as
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considered in the aforementioned valuation
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performed by an external valuation expert.
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The claims pertain to recovery of transmission
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charges from MSEDCL by GWEL. GWEL has
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disputed the contention of MSEDCL that the cost
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of transmission charges is to be paid by GWEL.
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However, based on the order of the Appellate
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Tribunal for Electricity ('APTEL') ('the Order') dated
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8 May 2015, currently contested by MSEDCL in the
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Hon'ble Supreme Court and pending conclusion,
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GWEL had accounted for reimbursement of such
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transmission charges in the Statement of Profit and
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Loss amounting to ' 616.33 Crore for the period
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from 17 March 2014 to 30 November 2020 and
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accordingly, GWEL has disclosed the aforesaid
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transmission charges and those invoiced directly
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to MSEDCL, a customer of GWEL, by Power Grid
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Corporation Limited for the period from 01
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December 2020 to 31 March 2026 as contingent
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liability, as further described in aforesaid note.
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The management of the Company, based on its
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internal assessment, legal opinion, certain interim
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favourable regulatory orders and valuation
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assessment made by an external expert, is of the
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view that the carrying value of the aforesaid
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investment of the Company in GEL, taking into
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account the matter described above in relation to
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the investment made by GEL in GWEL and GKEL, is
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appropriate and accordingly, no adjustments to the
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aforesaid balance have been made in the
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accompanying standalone financial statements for
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the year ended 31 March 2026.
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Information other than the Standalone Financial Statements
and Auditor's Report thereon
7. The Company's Board of Directors are responsible for the
other information. The other information comprises the
information included in the Annual Report, but does not
include the standalone financial statements and our auditor's
report thereon. The Annual Report is expected to be made
available to us after the date of this auditor's report.
Our opinion on the standalone 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 standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there
is a material misstatement therein, we are required to report
that matter to those charged with governance.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
8. The accompanying standalone financial statements have
been approved by the Company's Board of Directors. The
Company's Board of Directors are responsible for the matters
stated in section 134(5) of the Act with respect to the
preparation and presentation ofthese standalone 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 Ind AS specified
under section 133 of the Act and other accounting principles
generally accepted in India. 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.
9. In preparing the standalone financial statements, the Board
of Directors is 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.
10. The Board of Directors is also responsible for overseeing
the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
11. Our objectives are to obtain reasonable assurance about
whether the standalone 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 Standards on Auditing 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
ofthese standalone financial statements.
12. As part of an audit in accordance with Standards on Auditing,
specified under section 143(10) of the Act we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone 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 control 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 management;
• Conclude on the appropriateness of 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 standalone 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;and
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
13. 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 control that we identify
during our audit.
14. 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.
15. From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone 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 ofsuch communication.
Report on Other Legal and Regulatory Requirements
16. As required by the Companies (Auditor's Report) Order, 2020
('the Order') issued by the Central Government of India in
terms of section 143(11) of the Act we give in the Annexure
A, a statement on the matters specified in paragraphs 3 and
4 ofthe Order, to the extent applicable.
17. As required by section 197(16) of the Act, based on our
audit, we report that the Company has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read
with Schedule V to the Act.
18. Further to our comments in Annexure A, as required by
section 143(3) of the Act based on our audit, 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 purpose of our audit of
the accompanying standalone financial statements;
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 ofthose books;
c) The standalone financial statements dealt with by this
report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under section
133 of the Act;
e) On the basis of the written representations received
from the directors and taken on record by the Board of
Directors, none ofthe directors is disqualified as on 31
March 2026 from being appointed as a director in terms
ofsection 164(2) ofthe Act;
f) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company as on 31 March 2026 and the operating
effectiveness of such controls, refer to our separate
report in Annexure B wherein we have expressed an
unmodified opinion;and
g) 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, as detailed in note 34(11) to the
standalone financial statements, has disclosed the
impact of pending litigations on its financial
position as at 31 March 2026;
ii. The Company, as detailed in note 33(h) to the
standalone financial statements, has made
provision as at 31 March 2026, as required under
the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term
contracts including derivative contracts;
iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company during the year
ended 31 March 2026;
iv. a. The management has represented that, to the
best of its knowledge and belief, other than
as disclosed in note 50(iv) to the standalone
financial statements, no funds have been
advanced or loaned or invested (either from
borrowed funds or securities premium or any
other sources or kind of funds) by the
Company to or in any person(s) or entities,
including foreign entities ('the
intermediaries'), with the understanding,
whether recorded in writing or otherwise, that
the intermediary shall, whether, directly or
indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ('the Ultimate
Beneficiaries') or provide any guarantee,
security or the like on behalf the Ultimate
Beneficiaries;
b. The management has represented that, to the
best of its knowledge and belief, as disclosed
in note 50(v) to the standalone financial
statements, no funds have been received by
the Company from any person(s) or entities,
including foreign entities ('the Funding
Parties'), with the understanding, whether
recorded in writing or otherwise, that the
Company shall, whether 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;and
c. Based on such audit procedures performed
as considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
management representations under sub¬
clauses (a) and (b) above contain any material
misstatement.
v. The Company has not declared or paid any
dividend during the year ended 31 March 2026;
and
vi. As stated in note 45 to the standalone financial statements and based on our examination which included test checks,
the Company, in respect of financial year commencing on 1 April 2025, has used an accounting software(s) for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been
operated throughout the year for all relevant transactions recorded in the software(s). Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered with. Furthermore, the audit trail
has been preserved by the Company as per the statutory requirements for record retention.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Anamitra Das
Partner
Place: New Delhi Membership No.: 062191
Date: 21 May 2026 UDIN: 26062191MJTFGY8055
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