Power Grid Corporation of India Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2022

Notes to Standalone financial results:

1. (a) In exercise of powers u/s 178 of the Electricity Act 2003, Central Electricity Regulatory Commission (CERC) has notified “CERC (Terms and Conditions of Tariff) Regulations, 2019” vide order dated 07 March 2019 for the determination of transmission tariff for the block period 2019-24.

(b) The company has recognised Transmission income during the quarter and half year ended 30 September 2022 as per the following:

(i) Rs 7,887.89 Crore for the quarter (corresponding previous quarter Rs 4,200.42 Crore) and Rs 13,855.34 Crore for the half year (corresponding previous half year ended Rs 7,168.67 Crore) as per final tariff orders issued by CERC for the tariff period 2019-24.

(ii) Rs 2,190.78 Crore for the quarter (corresponding previous quarter Rs 5,305.32 Crore) and Rs 6,071.98 Crore for the half year (corresponding previous the half year Rs 11,554.13 Crore) provisionally as per CERC Tariff Regulations for the block period 2019-24 and other orders in similar cases, in respect of transmission assets for which final tariff orders are yet to be issued.

(c) Consequent to the final order issued by CERC, transmission income includes Rs 417.11 crore (increase) for the quarter (corresponding previous quarter Rs 190.44 Crore (increase)) and Rs 768.36 crore(increase) for the half year (corresponding previous half year Rs 331.86 Crore(increase)) pertaining to earlier years.

2. The Company, in its 33rd Annual General Meeting held on 29 August 2022, has declared and subsequently paid final dividend of Rs 2.25 per share (face value of Rs 10/- each) in addition to interim dividend of Rs 12.50 per share paid earlier, totalling to Rs 14.75 per share for the financial year 2021-22. The Company, in its Board Meeting held on 05 November 2022, has declared interim dividend of Rs 5.00 per share for financial year 2022-23.

3. The Company has considered various internal and external information available up to the date of approval of financial results in assessing the impact of COVID-19 pandemic on the financial results for the quarter and half year ended 30 September 2022 & there has been no material impact on the operations or profitability of the company during the quarter and half year ended 30 September 2022. The Company will continue to monitor any material changes to future economic conditions.

4. During the previous year ended 31 March 2022, the Company has monetised five (05) of its Subsidiaries through POWERGRID Infrastructure Investment Trust (‘PGInvIT/ Trust’). The 74% shares in the above five SPVs was transferred to PGInvIT in May 2021 and balance 26% shares of PVTL was transferred in March 2022. The balance 26% of remaining SPVs will be transferred in line with Transmission Service Agreement (TSA) & the same has been classified as "Assets Classified as Held for Sale" as on 30 September 2022. The Profit on said transactions (net of related expenses) has been disclosed under “Exceptional items” in previous periods.

5. Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 was notified by Ministry of Power on 03 June 2022, provides that at the option of the Distribution licensees, the outstanding dues including late payment surcharge (LPSC) upto the date of the said notification shall be rescheduled upto a maximum period of 48 months in the manner prescribed in the said Rules and no further LPSC shall be charged on those dues. Pursuant to the above, some of the distribution licensees have opted for rescheduling of their dues with Central Transmission Utility. The company’s portion of dues have been presented at their fair value under Trade Receivables (Non- current/Current) considering the requirements of applicable Indian Accounting Standards. Consequently, the fair value difference amounting to Rs 127.09 crore has been charged as expense in statement of profit or loss for the quarter and six months ended 30 September 2022.

6. Provision for taxes, employee benefits and other provisions for contingencies have been considered on estimated basis.

7. The above statement of Standalone financial results has been reviewed by the Audit Committee and has been approved by the Board of Directors in their respective meetings held on 05 November 2022.

8. As required under regulation 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended to the extent applicable, the Statutory Auditors have conducted a limited review of the Standalone financial results for the quarter and half year ended 30 September 2022.

9. Previous period figures have been regrouped / rearranged wherever considered necessary.


Notes for Balance sheet :

1. Other non-current liabilities also includes Deferred Revenue of Rs 10462.13 crore as on 30.09.2022

2. Trade Payables includes total outstanding dues of micro enterprises and small enterprises of Rs 34.46 crore as on 30.09.2022.

3. Non-current assets classified as held for sale includes current assets classified as held for sale of Rs 201.86 crore as on 30.09.2022.

4. Other non-current financial liabilities includes Lease Liabilities (Non-current) of Rs 27.30 crore and Other current financial liabilities includes Lease Liability (current) of Rs 3.64 crore as on 30.09.2022.



Notes for Cash Flow Statement

1. Cash and cash equivalents at the end of current period includes Rs 812.82 crore held in designated accounts which is not available for use by the Company.