We have audited the accompanying standalone financialstatements of GE Power India Limited (the "Company”), whichcomprise the Balance Sheet as at 31st March 2025, and theStatement of Profit and Loss (including Other ComprehensiveLoss), the Statement of Cash Flows and the Statement ofChanges in Equity for the year ended on that date, and notesto the financial statements, including a summary of materialaccounting policies and other explanatory information.
In our opinion and to the best of our information and accordingto the explanations given to us, the aforesaid standalonefinancial statements give the information required by theCompanies Act, 2013 (the "Act”) in the manner so requiredand give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of theAct, ("Ind AS”) and other accounting principles generallyaccepted in India, of the state of affairs of the Company as at31st March 2025, and its profit, total comprehensive income,its cash flows and the changes in equity for the year endedon that date.
Basis for Opinion
We conducted our audit of the standalone financial statementsin accordance with the Standards on Auditing ("SA"s)specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone FinancialStatements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant toour audit of the standalone financial statements under theprovisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficientand appropriate to provide a basis for our audit opinion on thestandalone financial statements.
Emphasis of Matter
i. Attention is drawn to Notes 47(i) of the StandaloneFinancial Statements, which explains the accountingtreatment for the Slump Sale of the Gas businessundertaking ('Undertaking') with a carrying value its netliability of ? 144.8 million to a fellow subsidiary effectivefrom 30 September 2024. This transaction has resultedin a gain of ? 583.4 million, which has been recognized inthe Statement of Profit and Loss as an Exceptional Itemfor the year ended 31st March 2025.
ii. Attention is drawn to Note 47(ii) of the StandaloneFinancial Statements, which explains the accountingtreatment for the Slump Sale of the Hydro businessundertaking ('Undertaking') to a fellow subsidiary basedon the approval of the Board of Directors of the Companyand its shareholder as the transaction price was higherthan fair value. As explained in the said note, the gainof ? 2,369.8 million on disposal of the Undertaking hasbeen credited to the Statement of Profit and Loss as anExceptional Item for the year ended 31st March 2025.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements of the current period. Thesematters were addressed in the context of our audit of thestandalone financial statements as a whole, and in formingour opinion thereon, and we do not provide a separate opinionon these matters. We have determined the matters describedbelow to be the key audit matters to be communicated inour report.
Sr.
No.
Key Audit Matter
Auditor's Response
1
Revenue Recognition
A significant portion of the Company's businesscomprise of long-term projects, including engineering,procurement and construction contracts. Contract pric¬es are fixed/subject to price variance clauses.
Principal audit procedures performed:
a) Evaluated the design and tested operating effectivenessof key internal financial controls, including those relatedto review and approval of estimated project cost.
Key Audit MatterNo.
Revenue from these contracts is recognized in accord-
b) For selected contracts tested the following:
ance with accounting policies detailed in "material ac¬counting policies” in the standalone financial statements.
i. Obtained the percentage of completion calculations,agreed key contractual terms to signed contracts,
There are judgements and estimates involved in ac-
tested the mathematical accuracy of the cost to
counting for revenue recognized on "Over the Time"
complete calculations and re-performed the calcula-
basis w.r.t:
tion of revenue recognized during the year based on
a. Total estimated cost at inception; and
the percentage of completion;
b. Total estimated cost to complete at each reportingdate to determine the appropriate percentage of
ii. Identified and evaluated the key assumptions used inestimation of cost to complete;
completion.
iii. Obtained the breakdown of the total estimated costs
We considered the estimation of cost to complete asa key audit matter given the involvement of significantmanagement judgement which has consequential im-
to complete for contracts in progress during the yearand compared with the actual costs incurred and esti¬mates of cost to be incurred at the reporting date; and
pact on revenue recognition.
iv. In respect of contracts with significant changes in
In the view of above, we determined this area to be anarea involving significant risk and an area of audit focus,and accordingly, a key audit matter.
margins during the year, read the "Project Manage¬ment Review" documents (as evidence of projectreviews), wherever available. Discussed with theproject controllers; the reasons for such changes inrevenue/costs.
Information Other than the Financial Statements andAuditor's Report Thereon
• The Company's Board of Directors is responsible forthe other information. The other information comprisesthe information included in the Director's report, butdoes not include the consolidated financial statements,standalone financial statements and our auditor's reportthereon. The Director report is expected to be madeavailable to us after the date of auditor's report.
• Our opinion on the standalone financial statements doesnot cover the other information and will not express anyform of assurance conclusion thereon.
• In connection with our audit of the standalonefinancial statements, our responsibility is to read theother information identified above when it becomesavailable and, in doing so, consider whether the otherinformation is materially inconsistent with the standalonefinancial statements or our knowledge obtained duringthe course of our audit or otherwise appears to bematerially misstated.
Responsibilities of Management and Board ofDirectors for the Standalone Financial Statements
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect tothe preparation of these standalone financial statements thatgive a true and fair view of the financial position, financial
performance including other comprehensive loss, cashflows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India,including Ind AS specified under section 133 of the Act.This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies;making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance ofadequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completenessof the accounting records, relevant to the preparation andpresentation of the financial statements that give a true andfair view and are free from material misstatement, whetherdue to fraud or error.
In preparing the standalone financial statements, managementand Board of Directors are responsible for assessing theCompany's ability to continue as a going concern, disclosing,as applicable, matters related to going concern and usingthe going concern basis of accounting unless the Board ofDirectors either intend to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Company's Board of Directors is also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibility for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a wholeare free from material misstatement, whether due to fraudor error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurancebut is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatementof the standalone financial statements, whether dueto fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, orthe override of internal control.
• Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Undersection 143(3)(i) of the Act, we are also responsiblefor expressing our opinion on whether the Companyhas adequate internal financial controls with referenceto standalone financial statements in place and theoperating effectiveness of such controls.
• Evaluate the appropriateness of accounting policiesused and the reasonableness of accounting estimatesand related disclosures made by the management.
• Conclude on the appropriateness of management's useof the going concern basis of accounting and, basedon the audit evidence obtained, whether a materialuncertainty exists related to events or conditions thatmay cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to drawattention in our auditor's report to the related disclosuresin the standalone financial statements or, if suchdisclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtainedup to the date of our auditor's report. However, futureevents or conditions may cause the Company to ceaseto continue as a going concern.
• Evaluate the overall presentation, structure and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regardingthe financial information of the Company to express anopinion on the standalone financial statements.
Materiality is the magnitude of misstatements in thestandalone financial statements that, individually or inaggregate, makes it probable that the economic decisions ofa reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements inthe standalone financial statements.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal financial controls thatwe identify during our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.We describe these matters in our auditor's report unless lawor regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that amatter should not be communicated in our report becausethe adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on ouraudit we report that:
a) We have sought and obtained all the information andexplanations which to the best of our knowledgeand belief were necessary for the purposes of ouraudit.
b) In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Lossincluding Other Comprehensive Loss, the Statementof Cash Flows and Statement of Changes in Equitydealt with by this Report are in agreement with therelevant books of account.
d) In our opinion, the aforesaid standalone financialstatements comply with the Ind AS specified underSection 133 of the Act.
e) On the basis of the written representations receivedfrom the directors as on 31st March 2025 takenon record by the Board of Directors, none of thedirectors is disqualified as on 31st March 2025 frombeing appointed as a director in terms of Section164(2) of the Act.
f) With respect to the adequacy of the internal financialcontrols with reference to standalone financialstatements of the Company and the operatingeffectiveness of such controls, refer to our separateReport in "Annexure A". Our report expresses anunmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financialcontrols with reference to standalone financialstatements.
g) With respect to the other matters to be includedin the Auditor's Report in accordance with therequirements of section 197(16) of the Act, asamended, in our opinion and to the best of ourinformation and according to the explanations givento us, the remuneration paid by the Company to itsdirectors during the year is in accordance with theprovisions of section 197 of the Act.
h) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014,as amended in our opinion and to the best of ourinformation and according to the explanations givento us:
i. The Company has disclosed the impact ofpending litigations on its financial position in itsstandalone financial statements (Refer Note 39to Financial Statements).
ii. The Company has made provision, as requiredunder the applicable law or accountingstandards, for material foreseeable losses,if any, on long-term contracts includingderivative contracts (Refer Note 45 to FinancialStatements).
iii. Due to extended technology problems onthe Ministry of Corporate Affairs (MCA)portal, duly communicated by the Company,the Company deposited the IEPF amount of
? 0.91 million on October 16, 2024 (due dateSeptember 29, 2024). There has been noother delay in transferring amounts, requiredto be transferred, to the Investor Education andProtection Fund by the Company. (Refer Note53 to the standalone financial statements)
iv. (a) The Management has represented that,
to the best of its knowledge and belief,other than as disclosed in the note 56 tothe financial statements no funds havebeen advanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kindof funds) by the Company to or in anyother person(s) or entity(ies), includingforeign entities ("Intermediaries”), withthe understanding, whether recorded inwriting or otherwise, that the Intermediaryshall, directly or indirectly lend or invest inother persons or entities identified in anymanner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries") orprovide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that,to the best of its knowledge and belief,other than as disclosed in the note 56 tothe financial statements, no funds havebeen received by the Company fromany person(s) or entity(ies), includingforeign entities ("Funding Parties"), withthe understanding, whether recorded inwriting or otherwise, that the Companyshall, directly or indirectly, lend or invest inother persons or entities identified in anymanner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") orprovide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performedthat have been considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has caused usto believe that the representations undersub-clause (i) and (ii) of Rule 11(e), asprovided under (a) and (b) above, containany material misstatement.
v. The company has not declared or paid anydividend during the year and has not proposedfinal dividend for the year.
vi. Based on or examination, which included testchecks, the Company has used accounting softwarefor maintaining its books of account wherein:
• One accounting software has a featureof recording audit trail (edit log) facilityat the application level and the same hasoperated during the year, however, theaudit trail feature at database level wasenabled from February 2025 and same hasnot been operated throughout the year;
• For another accounting software has afeature of recording audit trail (edit log)facility at the application level and the samehas operated during the year, however, theaudit trail feature was not enabled at thedatabase level;
• in respect of software operated by a thirdparty service provider, for maintainingpayroll records, based on an independentauditor's System and Organization controlsreport which covers the requirementsof audit trail, has a feature of recordingaudit trail (edit log) facility and the samehas operated throughout the year forall relevant transactions recorded inthe software and
• in respect of software operated by a thirdparty service provider for maintainingemployee database, in the absence of
an independent auditor's System andOrganisation Controls report covering theaudit trail requirement, we are unable tocomment whether audit trail feature of thesaid software was enabled and operatedthroughout the year for all relevanttransactions recorded in the software andwhether there were any instances of theaudit trail feature been tampered with.
• Further, during the course of our audit, wedid not come across any instance of theaudit trail feature being tampered with inrespect of the said accounting software forthe period for which the audit trail featurewas operating and log was maintained.Additionally, the audit trail that was enabledand operated for the year ended 31stMarch 2024, has been preserved by theCompany as per the statutory requirementsfor record retention, as stated in Note 55 tothe standalone financial statements.
2. As required by the Companies (Auditor's Report) Order,2020 ("the Order") issued by the Central Government interms of Section 143(11) of the Act, we give in "AnnexureB" a statement on the matters specified in paragraphs 3and 4 of the Order.
For Deloitte Haskins & Sells
Chartered Accountants(Firm's Registration No. 015125N)
SignatureVikas Khurana
(Partner)
Place: Noida (Membership No. 503760)
Date: May 29, 2025 (UDIN 25503760BMOEIU6585)