We have audited the accompanying Standalone Financial
Statements of Power Finance Corporation Limited ('the
Company'), which comprise the Balance Sheet as at
31^st March 2025, the Statement of Profit and Loss (including
Other Comprehensive Income), Statement of Changes in
Equity and the Statement of Cash Flows for the year then
ended and Notes to the Standalone Financial Statements,
including a summary of Material Accounting Policies and
other explanatory information (hereinafter referred to as
"the Standalone Financial Statements").

I n 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
prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended, ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the
Company as at 31^st March 2025, and its profit (including
Other Comprehensive Income), changes in equity and its
cash flows for the year ended on that date.

2. BASIS FOR OPINION

We conducted our audit 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 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 made 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 Standalone Financial Statements.

3. KEY AUDIT MATTERS

Key audit matters ("KAM") are those matters that, in our
professional judgement, were of most significance in
our audit of the Standalone Financial Statements of the
current year. 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.

We have determined the matters described below to be
the key audit matters to be communicated in our report. For
eachmatterbelow,descriptionofhowourauditaddressedthe
matter is provided in that context:

4. INFORMATION OTHER THAN THE
STANDALONE FINANCIAL STATEMENTS AND
AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for
the preparation of the other information. The other
information comprises the information included in the
Director's Report including Annexures to Director's
Report, Management Discussion and Analysis, Business
Responsibility Report and Sustainability Report and
Report on Corporate Governance (collectively referred
to as "other information") but does not include the
Standalone Financial Statements and our auditors' report
thereon. The above-referred information 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 identified above when it became available
and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial
Statements or our knowledge obtained during the course
of audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we concluded
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.

5. RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR
THE STANDALONE 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 Standalone Financial

Statements that give a true and fair view of the financial
position, financial performance (including comprehensive
income), changes in equity and cash flows of the Company
in accordance with the Ind AS 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 judgements 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 Standalone Financial
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

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 management 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.

6. AUDITOR'S RESPONSIBILITIES FOR THE
AUDIT OF THE STANDALONE FINANCIAL
STATEMENTS

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 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 Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise
professional judgement 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 Companies Act, 2013, we are also
responsible for expressing our opinion on whether
the Company has adequate internal financial controls
system 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 management's
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.

• 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.

Materiality is the magnitude of misstatement in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the Financial
Statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) Planning the
scope of our audit work and in evaluating the results of
our work: and (ii) to evaluate the effect of any identified
misstatements in the Financial Statements.

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.

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 year 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.

7. OTHER MATTERS

The comparative data for the year ended 31^st March, 2024
included in the Standalone Financial Statements have been
audited by the other joint statutory auditors; whose audit
report dated 15^th May, 2024 expressed unmodified opinion
on the comparative Standalone Financial Statements. Our
opinion is not modified in respect of this matter.

8. REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

I. 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 Companies Act, 2013 and on the
basis of such examination of the books and records
of the Company as we considered appropriate and
according to information and explanation given to
us, we give in "Annexure-A" a statement on the
matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.

II. The Comptroller and Auditor General of India has
issued the directions indicating the areas to be
examined in term of Sub-section 5 of Section 143
of the Act, the compliance of which is set out in
"Annexure B".

III. As required by Section 143(3) of the Act, we
report 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;

c. The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of Changes in Equity and Standalone
Statement of Cash flows, dealt with by this
Report are in agreement with the books
of account;

d. In our opinion and to the best of our information
and explanation given to us, the aforesaid
Standalone Financial Statements comply with
the Ind AS specified under Section 133 of the
Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended;

e. As per notification number G.S.R. 463(E)
dated 5^th June, 2015 issued by Ministry of
Corporate Affairs, Section 164(2) of the Act
regarding the disqualifications of Directors
is not applicable to the Company, since it is a
Government Company;

f. With respect to the adequacy of the internal
financial controls over financial reporting of
the Company and the operating effectiveness
of such controls, refer to our separate report in
"Annexure C";

g. As per notification number G.S.R. 463 (E) dated
5^th June, 2015 issued by Ministry of Corporate
Affairs, Section 197 of the Act regarding
remuneration to Directors is not applicable
to the Company, since it is a Government
Company; and

h. With respect to the other matters to be included
in the Auditors' 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 as at 31^st March, 2025
on its financial position in its Standalone
Financial Statements - Refer Note No.46
to the Standalone Financial Statements;

ii. The Company has made provision, as
required under the applicable law or
accounting standards, for material
foreseeable losses, on long-term contracts
including derivative contracts.

iii. There has been no delay in transferring
amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company.

iv. (a) The Management has represented

(refer Note No.11.3) that, to the
best of its knowledge and belief,
no funds (which are material either
individually or in the aggregate)
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

v. As stated in Note No.24.2(iii) to the Standalone
Financial Statements:

(a) The final dividend proposed for the previous
year, declared and paid by the Company during
the year is in accordance with Section 123 of the
Companies Act, 2013, as applicable.

(b) The interim dividend declared and paid by the
Company during the year and until the date of
this report is in compliance with Section 123 of
the Companies Act, 2013.

(c) The Board of Directors of the Company has
proposed final dividend for the year which is
subject to the approval of the members at the
ensuing Annual General Meeting. The amount
of dividend proposed is in accordance with
Section 123 of the Act, as applicable.

vi. Based on our examination which included test
checks, the Company has used accounting software
for maintaining its books of account for the 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 software systems.
Further, during the course of our audit we did not
come across any instance of the audit trail feature
being tampered with and the audit trail has been
preserved, from the date it was enabled, by the
Company as per the statutory requirements for
record retention.

For Thakur, Vaidyanath Aiyar & Co. For Mehra Goel &Co.

Chartered Accountants Chartered Accountants

Firm's Registration No.: 000038N Firm's Registration No.: 000517N

Sd/- Sd/-

(Anil K. Thakur) (CA Vaibhav Jain)

Partner Partner

Membership No. 088722 Membership No.515700

UDIN : 25088722BMUJGK8734 UDIN:25515700BMLABX2701

Place: Mumbai
Date: 21.05.2025