Notes to Accounts of Indosolar Ltd.

Mar 31, 2025

XIV. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive), as a result
of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be
required to settle such an obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (when the effect of the time value
of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be measured reliably.

The Company gives a warranty between 25 to 30 years on solar modules designed, manufactured and
supplied by the Company. In order to meet the expected outflow of resources against future warranty
claims, the Company makes a provision for warranty. This provision for warranty represents the expected
future outflow of resources against claims for performance shortfall on account of manufacturing
deficiencies over the assured warranty life.

XV. Cash and Cash Equivalent

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are readily convertible in an known
amount of cash and subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash and cash equivalent consists of cash and short¬
term deposits, as defined above.

XVI. Earnings per Share

Basic earnings per share is computed by dividing the profit and loss after tax by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue
to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit or loss after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares by weighted average number of equity shares considered for deriving basic
earning per share and weighted average number of equity shares which could have been issued on the
conversion of dilutive potential equity shares.

C. Significant judgements and estimates:

In the course of applying the policies outlined in all notes under section B above, the Company is required
to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimate is revised if the revision affects only that year,
or in the year of the revision and future year, if the revision affects current and future year.

(i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives
are dependent upon an assessment of both the technical lives of the assets, and also their likely economic
lives based on various internal and external factors including relative efficiency, the operating conditions
of the asset, anticipated technological changes, historical trend of plant load factor, historical planned and
scheduled maintenance. This reassessment may result in change in depreciation and amortisation
expected in future periods. It is possible that the estimates made based on existing experience are

different from the actual outcomes and could cause a material adjustment to the carrying amount of
property, plant and equipment. For the relative size of the Company''s property, plant and equipment refer
note 3(a).

(ii) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past events that can reasonably be estimated. The timing of recognition
requires application of judgement to existing facts and circumstances which may be subject to change.
Refer note 18 and 24.

In the normal course of business, contingent liabilities may arise from litigation and other claims against
the Company. Potential liabilities that are possible but not probable of an outflow of resources embodying
economic benefits are treated as contingent liabilities. Such liabilities are disclosed in the notes but are
not recognized. Refer note 38

(iii) Income Taxes

Significant judgements are involved in determining the provision for income taxes, including amount

expected to be paid/recovered for uncertain tax positions. In assessing the realizability of deferred tax
assets arising from unused tax credits, the management considers convincing evidence about availability
of sufficient taxable income against which such unused tax credits can be utilized. The amount of the
deferred income tax assets considered realizable, however, could change if estimates of future taxable
income changes in the future. Refer note 35.

(iv) Defined benefit plans

The cost of defined benefit gratuity plan and other post-employment benefits are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from

actual developments in the future. These include the determination of the discount rate, future salary

increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates. Refer note 37.

(v) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at
arm''s length, for similar assets or observable market prices less incremental costs for disposing of the
asset. The value in use calculation is based on a discounted cash flow model. For the purposes of

assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from the other assets or groups of assets
(cash generating units). The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Company is not yet committed to or significant future investments
that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive
to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and
other intangibles with indefinite useful lives recognised by the Company.

(vi) Expected credit loss

The measurement of expected credit loss on financial assets is based on the evaluation of collectability
and the management''s judgement considering external and internal sources of information. A
considerable amount of judgement is required in assessing the ultimate realization of the loans /

receivables having regard to, the past collection history of each party and ongoing dealings with these
parties, and assessment of their ability to pay the debt on designated dates.

D. Application of new and amended standards:

The company has adopted, with effect from April 1, 2024, the following new and revised standards and
interpretations. Their adoption has not had any significant impact on the amounts reported in the financial
statements.

(i) MCA has issued amendments to IND AS 116 concerning sale and leaseback contracts. The
amendment specifies the requirements for a seller-lessee in measuring the lease liability arising
from a sale and leaseback transaction. It ensures that the seller-lessee does not recognize any
amount of the gain or loss related to the right of use it retains.

a) Capital Reserves

Reserves is created primarily on acquisition as per statutory requirement. This reserve is utilised in accordance with the specific provision of the
Companies Act, 2013.

b) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This can be utilized in accordance
with the provisions of the Companies Act, 2013. There is no movement in securities premium during the reporting period.

c) Retained earnings

Retained earning represents the amount of accumulated earnings of the company, less any distribution to shareholder Movement in retained
earnings is as follows:

Note 37 : Employee Benefit Expenses

a) Defined contribution plan

The Company’s defined contribution plan comprises of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund. The Company has recognised
expense of ? 12.88 lakhs (March 31,2024 : ? 0.50 Lakhs).

b) Defined benefit plan

The Company has the following defined benefit plans.

Gratuity: In accordance with Gratuity Act, 1972, the company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees.
The gratuity plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death,
incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the gratuity plan are determined by
actuarial valuation on the reporting date and the company makes contribution to the gratuity fund administered by life insurance companies under their respective group
gratuity schemes.

Note 40 :Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The
CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Finance Officer of the
Company. The Company operates only in one Business Segment i.e. “Manufacturing & Trading of Solar Photovoltaic Modules”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

(ii) The Company has carried out operations during the year and have revenue from operations in india of ? 32,390.62 lakhs ( March 31, 2024 : Nil). All non-current
assets of the Company are located in India.

(iii) Further, from external customers the Company has revenue of ? 29,163.93 Lakhs (March 31, 2024: ? Nil Lakhs) more than 10% of the total revenue from
operations.

Note 41 : Leases

Effective April 1,2019, the company has adopted Ind AS 116, Leases, using modified restrospective approach. On adoption of the new standard IND AS 116 resulted in
recognition of ''right of use'' assets and a lease liability. The cumulative effect of applying the standard, has been debited to retained earnings. The effect of this adoption is
insignificant on the profit before tax, profit for the period and earnings per share. Ind AS 116 will result in an increase in cash inflows from operating activities and an
increase in cash outflows from financing activities on account of lease payments.

Note 42 : Corporate social responsibility (CSR)

As per Section 135 of the Companies Act, 2013, the Company is required to spend 2% of the average net profits of the Company made during the three immediately
preceding financial years towards Corporate Social Responsibility (CSR) activities.

During the year, the Company did not meet the criteria specified in sub-section (1) of Section 135 and accordingly, is not required to constitute a CSR Committee or
spend any amount on CSR activities as per sub-section (5) of Section 135 of the Act.

Note 43 : Financial instruments - fair values and risk management
A. Accounting classification and fair value

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying
amount is a reasonable approximation of fair value.

The fair value of the financial assets & liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties,other than in a forced or liquidation sale. The management assessed that fair value of cash and cash equivalents, trade
payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

B. Financial Risk Management
B.i. Risk management framework

A wide range of risks may affect the Company''s business and operational / financial performance. The risks that could have significant
influence on the Company are market risk, credit risk and liquidity risk. The Company''s Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the
company''s operational and financial performance.

B.ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances.
To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current
economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of
all the financial instruments covered below is restricted to their respective carrying amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the
credit worthiness of customers to which the group grants credit terms in the normal course of business.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business
environment in which the entity operates. The Group uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit
rating agencies, financial condition, ageing of accounts receivable and the group''s historical experience for customer.

(b) Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances of f 1,709.60 Lakhs as at March 31, 2025 (March 31, 2024: f
504.23 Lakhs). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with
good market standing.

Notes to the financial statements for the year ended March 31, 2025

Note 43 : Financial instruments - Fair values and risk management (continued)

B.iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset.

Liquidity risk is managed by Company through effective fund management of the Company’s short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

B.iv. Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: currency risk, interest rate risk and other price risk.

B.iv.a Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the group is Indian Rupee. Our
exposure are mainly denominated in U.S. dollars (USD) The Company business model incorporates assumptions on currency risks and ensures any
exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a financial
risk management policy to identify the most effective and efficient ways of managing the currency risks.

B.iv.b Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest
rate risk by monitoring the movements in the market interest rates closely.

Exposure to interest rate risk

Company''s interest rate risk arises primarily from borrowings. The interest rate profile of the Company''s interest-bearing financial instruments is as
follows.

B.iv.c Other price risk

The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid
investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the
interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio
in the liquid schemes, these do not pose any significant price risk.

Note 44 : Capital Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders
Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of
the business. The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its
strategic and day to day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders or issue new shares.

Note 45 : Ratios (refer ratios Note)

Note 46 :

In accordance with the approved Resolution Plan, applications were filed by the Company with Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE) on June 21, 2022 and September 05, 2022, respectively for recommencement of trading of Company’s shares. The Company also sought
waiver of the compliance with Minimum Public Sharing (MPS) holding requirement pursuant to Rule 19A of Securities Contracts (Regulation) Rules 1957
and in accordance with the waiver clauses as provided in the Resolution Plan. In response to which several clarifications were sought by BSE and NSE
and the Company duly addressed the same. However, NSE and BSE had till date didn’t remove suspension of the trading which was suspended w.e.f.
June 27, 2022 (i.e., closing hours of trading on June 26, 2022) on account of Capital Reduction pursuant to NCLT Order dated April 21, 2022.

The Company had submitted multiple representations to BSE and NSE for recommencement of trading. On February 21, 2025, the Company received
conditional listing approval from BSE and NSE for listing whereby BSE and NSE have asked company to undertake corporate actions and comply with
certain pending compliances including convening the general meeting of members for approval of various matters. Accordingly, the Company has
convened the meeting of members vide its notice dated April 16, 2025 to regularize and approve matters inter alia appointment of M/s. S G C O & Co. LLP
as statutory auditors of the Company and appointment of directors of the Company to comply with applicable laws who were earlier appointed by Board of
Directors of the Company.

Note 47 : Additional regulatory information

1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for
holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or
other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

3. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read
with the Companies (Restriction on number of layers) Rules, 2017.

4. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 (as amended) or section 560 of
the Companies Act, 1956.

5. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding that the Intermediary shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

6. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

7. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

8. The Company has not traded or invested in crypto currency or virtual currency during the year.

9. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory
period.

10. The Company has not revalued any of its Property, Plant and Equipment during the year.

Note 48 : Change in registered office address

The Company vide Board resolution dated September 28, 2024 have shifted its registered office from C-12, Friends Colony (East), New Delhi - 110065,
India to Unit no. 301, 3rd floor, Building 02, Southern Park, Saket, New Delhi-110017, India.

Note 49 : Disclosures with regards to section 186 of the Companies Act, 2013

The Company has not given any loan or guarantee or provided any security or made any investment under Section 186 of the Companies Act, 2013.

Note 50 : Previous Year''s Figures

The previous year figures have also been reclassified to conform to current year’s classification wherever applicable.

As per our report of even date attached

For S G C O & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Indosolar Limited

Firm Regn No. 112081W/W100184

Sd/- Sd/- Sd/- Sd/- Sd/- Sd/-

Nitesh Musahib Hitesh C Doshi Hitesh P Mehta Amit Paithankar Sonal Shrivastava Akalpita Patel

Partner Chairman and Director Chief Executive Officer Chief Financial Officer Company

Managing Director Secretary

Mem. No. 131146 DIN 00293668 DIN 00207506 ACS - A40528

Place : Mumbai Place:Mumbai

Date: April 17, 2025 Date: April 17, 2025

---

Mar 31, 2024

(xvii) Provisions and contingencies

Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at
the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a
current pre-tax rate that reflects the current market assessments of the time value of money and the risks
specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is
recognised as a finance cost.

Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in the income statement net of any reimbursement.

Contingencies:

Contingent liabilities
A contingent liability is:

• a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company, or

• a present obligation that arises from past events but is not recognized because :

- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or

- the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognized but disclosed unless the contingency is remote.

Contingent assets

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company.

Contingent assets are not recognized but are disclosed when the inflow of economic benefits is probable. When
inflow is virtually certain, an asset is recognized.

(xviii) Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate
resources and assessing performance.

The Company is primarily engaged in manufacture of solar cells and modules. The Company''s Chief Operating
Decision Maker (CODM) is the Managing Director. He evaluates the Company’s performance and allocates
resources based on analysis of various performance indicators by geographical areas only. Accordingly, there is
no operating segment or reportable segment as such.

(xix) Related party

A related party is a person or entity that is related to the reporting entity and it includes:

(a) A person or a close member of that person’s family if that person:

(i) has control or joint control over the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(b) An entity is related to the reporting entity if any of the following conditions apply:

(i) The entity and the reporting entity are members of the same Group.

(ii) One entity is an associate or joint venture of the other entity.

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(v) The entity has a post-employment benefit plan for the benefit of employees of either the reporting entity or
an entity related to the reporting entity.

(vi) The entity is controlled or jointly controlled by a person identified in (a).

(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a Group of which it is a part, provides key management personnel services
to the reporting entity or to the parent of the reporting entity.

Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity including:

(a) that person’s children, spouse or domestic partner, brother, sister, father and mother;

(b) children of that person’s spouse or domestic partner; and

(c) dependants of that person or that person’s spouse or domestic partner.

Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including any director (whether executive or
otherwise) of that entity.

Related party transactions and outstanding balances disclosed in the financial statements are in accordance with
the above definition as per Ind AS 24.

(xx) Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short term
deposits/investments with an original maturity of three months or less from the date of acquisition, which are
subject to an insignificant risk of changes in value. These exclude bank balances (including deposits) held as
margin money or security against borrowings, guarantees etc. being not readily available for use by the
Company.

For the purpose of the Statement of cash flows, cash and cash equivalents consist of cash and short term
deposits and exclude items which are not available for general use as on the date of Balance Sheet, as defined
above, net of bank overdrafts which are repayable on demand where they form an integral part of an entity''s
cash management.

(xxi)Cash Flow Statement

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method as set out in Ind AS 7
''Statement of Cash Flows'', adjusting the net profit for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions of a non¬
cash nature;

(ii) non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and
losses, and

(iii) all other items for which the cash effects are investing or financing cash flows.

(xxii) Earnings per share

The Basic Earnings per equity share (''EPS'') is computed by dividing the net profit or loss after tax before other
comprehensive income for the year attributable to the equity shareholders of the Company by weighted average
number of equity shares outstanding during the year. Ordinary shares that will be issued upon the conversion of
a mandatorily convertible instrument are included in the calculation of basic earnings per share from the date
the contract is entered into. Contingently issuable shares are treated as outstanding and are included in the
calculation of basic earnings per share only from the date when all necessary conditions are satisfied (i.e. the
events have occurred).

Diluted earnings per equity share are computed by dividing the net profit or loss before OCI attributable to
equity holders of the Company by the weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares (including options and warrants). The dilutive potential

equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value.
Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later
date.

Contingently issuable potential ordinary shares (such as contingently issuable convertible instruments) are
included in the diluted earnings per share in accordance with Ind AS 33. The Optionally Convertible
Cumulative Redeemable Preference shares (OCCRPS) issued by the Company to Union Bank of India under
Debt Settlement Agreement where the Bank has a right to convert the preference shares into equity in the event
of default are in fact contingent convertible preference shares and the contingent settlement event is Event of
default by the Company. As the said event has not happened till the end of the reporting period, exercise or
conversion is not assumed for the purpose of calculating diluted earnings per share and accordingly potential
ordinary shares are not included in the calculation of diluted earnings per share. Anti-dilutive effects are
ignored.

(xxiii) Events after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted within the financial statements. Where the events are
indicative of conditions that arose after the reporting period, the amounts are not adjusted, but are disclosed if
those non-adjusting events are material.

(xxiv) Exceptional Items

An item of Income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in
the financial statements.

As per our report of even date attached

For A.K.G & ASSOCIATES For and on behalf of the Board of Directors of

Chartered Accountants Indosolar Limited

ICAI Firm registration number: 002688N

CA. HARVINDER SINGH Hitesh Doshi Hitesh Mehta

Partner Director Director

Membership No.: 087889 (DIN 00293668) (DIN 00207506)

UDIN: 22087889AQYWFL2418

Place: Delhi
Date: 05/09/2022

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Mar 31, 2018

Notes:

1 In Financial year 2016-17 remuneration includes related to Mr. H.R Gupta paid against approval from MCA vide SRN C47011408 Dated 20 March 2015 for Financial Year 2014-15 Rs. 5.04, for Financial Year 2015-16 Rs. 20.16 and to Mr. B.K Gupta paid against approval from MCA vide SRN C47007919 20 March 2015 for Financial Year 2014-15 Rs. 5.04, for Financial Year 2015-16 Rs. 7.59.

2 Valued at year end market price (NSE).

3 As the incremental liabilities of contribution for gratuity and compensated absences are provided on actuarial basis for the Company as a whole, the amounts pertaining to Key Managerial Personnel are not disclosed above.

4 Effect of Ind AS has not been considered. Carrying value Rs. 452.12 (31.03.2017 : Rs 408.24 & 01.04.2016 : Rs.350.81)

36 Employee Benefits Refer note 2.13 for accounting policy on Employee Benefits (a) Defined contribution plans i. Provident Fund/Employees'' Pension Fund ii. Employees'' State Insurance

The Company has recognised following amounts as expense in the Statement of Profit and Loss:

Particulars	For the Year ended	For the Year ended
	March 31, 2018	March 31, 2017
Included in contribution to Provident and Other Funds (refer note 27)
Employer''s contribution to Provident Fund / Employees'' Pension Fund	88.23	97.49
Included In contribution to Provident and Other Funds (refer note 27)
Contribution paid In respect of Employees'' State Insurance Scheme	13.87	9.53

(b) Defined Benefit Plan

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

A. Balance Sheet

The assets, liabilities and surplus/fdeficit) position of the defined benefit plans at the Balance Sheet date were:

Defined Benefit Plan- Gratuity (Funded)
	As at	As at	As at
	31st March, 2018	31st March, 2017	1st April, 2016
Present value of obligation	132.73	126.51	81.11
Fair value of plan assets	131.70	99.71	67.34
(Asset/Liabillty recognised In the Balance Sheet	1.03	26.80	13.77
Net liability-current (Refer Note 17)	1.03	26.80	13.77
Net liability-non-current (Refer Note 17)	-	-	-
	1.03	26.60	13.77
B. Movements in Present Value of Obligation and Fair Value of Plan Assets
	Plan Assets	Plan Obligation	Total
As at 1st April, 2016	67.34	81.11	13.77
Current service cost	-	26.77	26.77
Past service cost	-	-	-
Interest cost	-	6.49	6.49
Interest income	5.39	-	(5.39)
Return on plan assets excluding interest income	1.01	-	(1.01)
Actuarial (gain)/loss arising from	-	-	-
changes in demographic assumptions
Actuarial (gain/loss arising from changes in	-	8.20	8.20
financial assumptions
Actuarial (gain)/loss arising from experience adjustments	-	4.66	4.66
Employer contributions	26.70	-	(26.70)
Employee contributions	-	-	-
Assets acquired/ (settled)	-	-	-
Benefit payments	(0.72)	(0.72)	-
As at 31st March, 2017	99.71	126.51	26.80

As at 1st April, 2017	99.71	126.51	26.80
Current service cost	-	25.09	25.09
Past service cost	-	1.40	1.40
Interest cost	-	9.30	9.30
Interest Income	7.33	-	(7.33)
Return on plan assets excluding interest income	0.26	-	(0.26)
Actuarial (gain)/loss arising from	-	(5.25)	(5.25)
changes in demographic assumptions
Actuarial (gain)/loss arising from	-	(6.04)	(6.04)
changes in financial assumptions
Actuarial (gain)/loss arising from experience adjustments	-	-	-
Employer contributions	42.67	-	(42.67)
Employee contributions	-	-	-
Assets acquired/(settled)*	-	-	-
Benefit payments	(18.27)	(18.27)	-
As at 31st March, 2018	131.70	132.73	1.03

Defined Benefit Plan- Gratuity (Funded)
	Year ended	Year ended
	31st March, 2018	31st March, 2017
Expenses recognised In the Statement of
Profit and Loss for the year
Employee Benefit Expenses :
Current service cost	25.09	26.77
Past service cost	1.40	-
Finance costs :
Interest cost	9.30	6.49
Interest income	(7.33)	(5.39)
Net Impact on profit {before tax)	28.46	27.87

Recognised in other comprehensive income for the year
Remeasurement of the net defined benefit plans:
Actuarial (gain)/loss arising from	-	-
Actuarial (gainj/loss arising from changes in financial assumptions	(5.25)	8.20
Actuarial (gain)/loss arising from experience adjustments	(6.04)	4.66
Return (gain)/loss on plan assets excluding interest income	(0.26)	(1.01)
Net impact on other comprehensive Income (before tax)	(11.55)	11.85

D. Assets

The fair value of plan assets at the Balance Sheet date for the defined benefit plans for each category are as follows:

Defined Benefit Plan- Gratuity (Funded)
	As at	As at	As at
	31st March, 2018	31st March, 2017	1st April, 2016
The major categories of plan assets as a percentage of total Insurer managed funds	100%	100%	100%

The Trustees have taken policy from Life Insurance Corporation of India (LIC) and pays premium. LIC in turn manages the assets which is within the permissible limits prescribed in the insurance regulations. The Company does not forsee any material risk from these investments.

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Mar 31, 2016

b. Term and rights attached to shares:

Equity shares

The Company has only one type of equity share having par value of Rs. 10. All shares rank pari passu with respect to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share except, in respect of any shares on which any calls or other sums payable have not been paid. The Company pays and declares dividends in Indian Rupees. The dividend proposed, if any, by the Board of directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

The Company had issued 9,500,000 zero coupon non-convertible, non- cumulative redeemable preference shares having par value of Rs. 10 each per share in the year ended 31 March 2013. During the current year, in its Annual General Meeting, the shareholders approved change in terms of 9,500,000 zero coupon non-convertible, non-cumulative redeemable preference shares to 9,500,000 compulsorily convertible preference shares. “In principle” approval from stock exchanges has been received on 16 October 2015 and on 4 April 2016 from NSE and BSE respectively. Accordingly, subsequent to the year end, on 8 April 2016 the Company changed the terms of preference shares subject to the condition that the mentioned 9,500,000 compulsorily convertible preference shares shall be locked-in for a period of one year from the date of change in terms.

* Include 6,032.788 equity shares of Rs. 10 each issued against conversion of secured loan.

d. For the period of five years immediately preceding the date of Balance sheet no shares were alloted for consideration other than cash. Further no bonus shares have been issued and there has been no buy back of shares during the period of five years immediately preceding the date of balance sheet.

1 Debt Restructuring in the year ended 31 March 2012

i) Background

The Company had set up a green field project for manufacturing Solar Photovoltaic cells with a capacity of 160 MW, comprising two lines of 80 MW each under Phase -I and is in the process of setting up an additional manufacturing facility Line -3 with a 200 MW capacity under Phase - II, at Plot No. 3C/1 Ecotech-II, Udyog Vihar Greater Noida in the State of Uttar Pradesh. The capacity of Phase-I has subsequently enhanced to 200Mw (100Mw each line). The lending banks (‘Lenders’) had, at the request of the Company, sanctioned term loans, deferred payment guarantee facilities and working capital facilities on such terms and conditions as contained in various loan agreements / facility agreements entered into between the Company and the Lenders.

ii) Conditions that lead to restructuring

The Company witnessed significant downturn due to weak demand both globally as well as in the domestic market and incurred significant cash and operating losses. There was a mismatch between cost and selling prices that resulted in the stoppage of plant from September 2011, which severely impacted the cash flow position of the Company prompting the filing of a restructuring package of its loans that existed as on 1 July 2011 with the Corporate Debt Restructuring Cell (‘CDR Cell’). At the request of the Company and in consideration of its commitment to improve its operations, the application filed was referred to the Corporate Debt Restructuring Forum, a non-statutory voluntary mechanism set up under the aegis of the Reserve Bank of India (hereinafter referred to as the “CDR”). Pursuant thereto, the CDR Empowered Group at their meeting held on 30 January 2012 approved a restructuring package in terms of which the loans as of 1 July 2011 were restructured and certain additional financial assistance was proposed to be extended to the Company that was set out in the Letter of Approval dated 7 March 2012 issued by Corporate Debt Restructuring Cell to the Lenders and the Company (hereinafter referred to as the “CDR Package”).

The terms and conditions of the CDR were binding on the Lenders and the Company, effective from the date of the signing of the Master Restructuring Agreement (‘MRA) i.e. 28 March 2012 with each of the Lenders (except for Indian Bank). The Company had accordingly given effect to the CDR scheme w.e.f. from 1 July 2011, in the financial statements for the year ended 31 March 2012. However one of the banks of the consortium group

i.e. Indian Bank had not agreed to the CDR package and had not signed the Master Restructuring Agreement (MRA). The MRA was signed by the concerned bank on 5 July 2012. In connection with obtaining the necessary approvals for restructuring of existing loans, the promoters contributed funds in accordance with sanction letter. As a consequence, the Company received an unsecured loan from its promoters amounting to Rs. 950.00. During the year ended 31 March 2016, Rs.239.04 out of the above unsecured loan from promoters has been adjusted with excess remuneration paid for the year ended 31 March 2015 and 31 March 2016. Also refer note 35.

During the financial year 2013-14, the Company received interest free unsecured loan from a party amounting to Rs. 250.00 towards meeting expenses and also to meet promoters contribution requirement under proposed CDR-2, to be converted into 2,5000,00 zero coupon redeemable non convertible non cumulative preference shares of face value of Rs 10 each after approval from shareholders. However during the previous year, after approval from shareholders the Company had, instead of preference shares, allotted 2,500,000 equity shares of Rs 10 each at par value.

iii) Principal terms of the Master restructuring Agreement (‘MRA’) in accordance with the CDR scheme.

a) Waivers of existing events of default and the consequential effect thereof:

In accordance with the CDR scheme the consortium of lenders had waived the obligation of the Company

to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in

excess of the concessional rates approved under CDR package.

b) Restructuring of the loans existed as at 1 July 2011:

Each of the Lenders and Company agreed that the loans shall be reconstituted as follows:

- Rupee Term Loans of Rs. 34,485.82 together with all interest, charges, costs, expenses and any other amounts accrued was reconstituted into Facility -A;

- Short Term Loan of Rs. 2,200.00 from Andhra Bank outstanding as on 1 July 2011 i.e. the Cut-off date was rescheduled and converted into “Priority Medium Term Loan” as Facility -B;

- Irregularity as on 31 March 2012 in Working Capital Limits comprising cash credit, packing credit, buyer’s credit facility, bill discounting and irregularities due to anticipated devolvement of LCs was converted into WCTL as Facility C;

- Interest accrued/ to be accrued on Secured term loans, Short term loan and WCTL until 30 June 2013 to be funded by way of Funded Interest Term Loan (“FITL”) as Facility- D.

c) Sanction for additional funding

1. Project Loan from Union Bank of India

Union Bank of India (‘UBI’) sanctioned a Project Loan amounting to Rs. 27500 (including Term Loan-

II of Rs. 22,800 for project Line-C and Priority Term Loan of Rs. 4,700).

2. Priority medium term loan

As part of the CDR package the Lenders agreed to provide additional funding in the form of priority medium term loans of Rs. 10,000 for the implementation of 200 MW Plant in the proportion of the outstanding exposure to the Company as on the 1 July 2011.

d) Reset of Interest Rate:

The Lenders along with the approval of CDR EG, shall have a right to reset the rate of interest on the term loans after every three years (or short period as decided by the CDR EG) and working capital interest rate every year.

e) Consequential effect of the CDR Scheme on the interest cost and the classification of the interest accrued on borrowings as loans

As explained in note 6 (iii) (a) above, the Lenders waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the concessional rates approved under the CDR package w.e.f 1 July 2011. Consequently, an interest credit received from the Lenders amounting to Rs 1,201.70 and the balance of interest accrued outstanding as at 31 March 2012 relating to various facilities amounting to Rs 3,502.00 was transferred to FITL.

f) Default in repayment of loan and interest

As per the terms of the first Corporate Debt Restructuring package, principal amount of Rs.29,244.69 is due as on 31 March 2016 (previous year Rs.9,46784) Further, the interest of Rs. 30,199.89 is due as on 31 March 2016 (Previous year Rs. 17054.93).

iv. Second Re-structuring

In light of continuing downturn in the solar industry where margins were under significant stress and the continuing operating and cash losses of the Company, the Company could not achieve the projection submitted under first CDR package. Considering the above, the Company approached its lenders for second CDR package in the financial year ended 31 March 2014. During the year ended 31 March 2016, consortium bankers in their joint lenders meeting has decided that banks’ are not considering second restructuring proposal as of now and exploring the possibility of sale to Asset Restructuring Company and/or to invoke change in management.

*Pursuant to Companies Act, 2013 (‘the Act’) being effective from 01 April 2014, the Company had revised depreciation rates with effect from 1 April 2014, as per the useful life specified in Part ‘C’ of Schedule II of the Act or as per the management’s estimate based on preliminary internal/ external evaluation for all of its assets. As a result of this change, the depreciation charge for the for the year ended 31 March 2015 is lower by Rs.1,436.27 lakhs. In respect of the assets whose useful life is already exhausted as on 01 April 2014, depreciation of Rs. 45.92 lakhs (net of tax impact of Rs. Nil) has been adjusted in Reserves and Surplus in accordance with the requirements of Schedule II of the Act.

* Borrowing cost of Rs. 787.57 (previous year Rs. 1,421.82) and amortized ancillary cost of Rs. 12.36 (previous year Rs. 24.72) have been included in additions to capital work-in-progress. Capital work in progress includes exchange differences amounting to Rs. 398.34 (previous year Rs. 2,327.83) relating to the application of para 46A of AS -11 ‘Accounting for the effects of changes in foreign exchange rates” Capital work in Droaress also includes Rs. 13.77 (Devious year Rs. 8.14) on account of directly attributable expenses.

* The Company has significant unabsorbed depreciation/carry forward losses as per the tax laws. In view of absence of virtual certainty of realization of carried forward tax losses/unabsorbed depreciation in the foreseeable future, deferred tax asset has been recognized only to the extent of deferred tax liability.

3. COMMITMENTS

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. Nil (previous year Rs. 337.73).

b) For commitments relating to lease arrangements (Refer note 27).

c) For commitments relating to net positive foreign exchange earnings (Refer note 33).

4. LEASE TAKEN BY THE COMPANY

The Company has various operating leases under cancellable and non cancellable operating lease arrangements for plant and machinery, accommodation for employees and other assets which are renewable on a periodic basis. Rent expenses for operating leases included in the Statement of Profit and Loss is Rs. 24.87 (previous year: Rs. 35.31).

Previous year figures are given in brackets.

5. The Company has incurred expenses in foreign currency amounting to Rs.137,251.53 lakhs (including amortization of imported machinery) till 31 March 2016. Being an Export Oriented Unit, the Company had imported such machinery and raw material without payment of customs duty, on the basis of an undertaking given to Special Economic Zone that the Company shall be able to earn a positive Net Foreign Exchange (NFE) within ten years from the commencement of its operations (i.e. 16 July 2009). As at 31 March 2016, the Company has a negative Net Foreign Exchange Earnings of Rs. 3,478.40 lakhs.

During the year ended 31 March 2015, the Company had filed an appeal before the relevant authorities to consider the DTA sale of 3,864.89 lakhs made in the earlier years to consider as eligible sale for calculation of NFE under para

6. (f) of Foreign Trade Policy (FTP) in place of para 6.8 of FTP Further it has been noticed that: i) while submitting the APR of 2011-12 and 2012-13, the Company had erroneously considered the domestic purchase of Rs. 331.07 lakhs as imported purchase resulting thereby higher forex outflow ii) while submitting the APR of 2009-10, the Company had considered full year amortization of capital expenditure instead of calculating the same from the date of start of commercial production resulting into higher amortization of Rs.1,409.07 lakhs which was considered as forex outflow in that year. If the appeal is accepted, and the impact of above referred correction is recognized, the NFE as on 31 March 2016 would have been positive by Rs. 2,126.16 lakhs.

7. Related party disclosures List of related parties

a) Related parties where control exists:

i) Key managerial personnel controlling the Company

Mr. H.R Gupta Managing Director

Mr. B.K Gupta Chairman & Whole Time Director (till 17 August 2015)

ii) Other key managerial personnel

Mr. A. K. Agarwal Chief Financial Officer

b) Other related party relationships where transactions have taken place:

i) Relative of key managerial personnel

Priya Desh Gupta Relative of Director

Abha Gupta Relative of Director

Roshini Gupta Relative of Director

Pranav Gupta Relative of Director

ii) Party holding significant influence over the enterprise Greenlite Lighting Corporation

*The Company has accrued/paid managerial remuneration which was in excess of the limits specified in Schedule V read with Section 197 of the Companies Act, 2013. The Company had filed applications with the Central Government for regularizing the payments of managerial remuneration. Subsequent to the year end, the Company received letters from Central Government rejecting such applications. Accordingly, the Company has recovered the managerial remuneration paid in current year of Rs. 184.99 lakhs and in previous year of Rs. 14784 lakhs by adjusting the payable balances of directors. The recovered amount has been netted off from employee benefit expenses for the year ended 31 March 2016.

8. EMPLOYEES BENEFIT

Disclosure in respect of employee benefits under Accounting Standard 15 “Employee Benefits”:

a) Defined Contribution Plans: The Company has recognized Rs. 69.12 (Previous year Rs. 6720) related t employers’ contribution to Provident Fund Scheme in the Statement of Profit and Loss.

b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 10.00.

9. SEGMENT INFORMATION

(a) Information about primary business segment

In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 “Segment Reporting.

(b) Information on secondary/ geographical segment

The Company sells its products to various customers within the country and also exports to other customers. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

During the year 2013-14, the Company has received a show cause notice from the Office of the Commissioner, Customs, Central, Excise & Service Tax Commissioner ate (Authority), Noida, whereby the authority has asked the Company to explain why custom duty of Rs. 9,430.19 lakhs along with interest and penalty thereon should not be levied on the Company in respect of import of duty free capital goods, as the Company could not install the machinery within the stipulated time period. The Company has filed its reply with the authority citing the delays in installation primarily due to financial constraint arising out of the downturn in the solar industry. The case has been heard on 28th April 2015 and accordingly, the Commissioner Central Excise has passed an order in favour of the Company.

** During the current year, the Company has received a demand cum show cause notice from the Office of the Principal Commissioner, Service Tax Commissioner ate (Authority), Noida, whereby the authority has asked the Company to explain why service tax of Rs. 218.28 lakhs including cess should not be demanded and recovered from the Company under the proviso to Section 73(1) of Finance Act 1994. Subsequent to the year end, the Company has paid service tax amounting to Rs. 11.61 lakhs under protest.

10 The Company’s claim to its being eligible for certain capital incentives has been ordered in favour of the Company by the High Court of Delhi directing the concerned authorities to recalculate the threshold limit within four weeks from the date of the order (i.e. 3 July 2015). In the absence of timely response by the department, the Company filed contempt petition in High Court of Delhi and the court again directed the department to comply with the order dated 3 July 2015 within a period of six weeks from 11 May 2016 and fixed next date of hearing on 5 August 2016. Concerned authorities had also moved an appeal to the Double Bench of High Court of Delhi against the order dated 3 July 2015 of High Court of Delhi for which next date of hearing is 14 July 2016.

11 The Company had been awarded a turnkey contract by MP Urja Vikas Nigam Limited (MP Urja) for setting up of 3MW (in aggregate) SPV Power Plants. In accordance with the stipulated terms of the contract, the Company has deposited earnest money deposit (EMD) amounting to Rs. 60.10 lakhs. Out of the total contract, work orders aggregating to 1.6 MW amounting to Rs. 2,914.13 lakhs was raised on the Company that was required to be executed till 30 June 2013. The Company has raised the bills for having completed 0.1 MW (5 sites) until 31 March 2014 and the dues outstanding in relation to the executed portion amounts to Rs. 177.23 lakhs. The Company had also filed an application seeking extension with MP Urja for completion of the unexecuted work. Company received a final notice from MP Urja rejecting the extension plea and deciding to cancel the work order (other than the 3 sites considered completed by MP Urja) given to the Company along with the forfeiture of EMD and imposition of penalty due to the non-compliance by the Company. The Company is contesting the MP Urja claims citing logistical issues, delay in handing over the sites and delays in issuing site completion reports by MP Urja and has requested to recall the notice for cancellation of work orders and has further requested to allow the Company to complete the pending work allocated. The Company is under final negotiation with the department and believes that the matter will be resolved within financial year 2016-17 and outstanding amount will be realized after adjusting some amount of penalties which is not yet ascertained. As a consequence, the impact of the (a) loss or damage due to the action that MP Urja may take; (b) the outcome of the final notice issued, that may include forfeiture of EMD, adjusting the dues against any loss or damage and levy of penalty, and (c) the Company’s inability to complete the order within the stipulated time period, is uncertain and the same shall crystallize only on the conclusion of discussion and the actions that the authorities may take against the Company.”

12. Previous period figures have been re-grouped/re-classified to conform to current year classification.

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Mar 31, 2015

1. DEBT RESTRUCTURING IN THE YEAR ENDED 31ST MARCH 2012

i) Background

The Company had set up a green field project for manufacturing Solar Photovoltaic cells with a capacity of 160 MW, comprising two lines of 80 MW each under Phase –I and are in the process of setting up an additional manufacturing facility Line -3 with a 200 MW capacity under Phase – II, at Plot No. 3C/1 Ecotech-II, Udyog Vihar Greater Noida in the State of Uttar Pradesh. The lending banks ('Lenders') had, at the request of the Company, sanctioned term loans, deferred payment guarantee facilities and working capital facilities on such terms and conditions as contained in various loan agreements / facility agreements entered into between the Company and the Lenders.

ii) Conditions that lead to restructuring

The Company witnessed significant downturn due to weak demand both globally as well as in the domestic market and incurred significant cash and operating losses in the previous years. There was a mismatch between cost and selling prices that resulted in the stoppage of plant from September 2011, which severely impacted the cash flow position of the Company prompting the filing of a restructuring package of its loans that existed as on 1 July 2011 with the Corporate Debt Restructuring Cell ('CDR Cell'). At the request of the Company and in consideration of its commitment to improve its operations, the application filed was referred to the Corporate Debt Restructuring Forum, a non-statutory voluntary mechanism set up under the aegis of the Reserve Bank of India (hereinafter referred to as the "CDR"). Pursuant thereto, the CDR Empowered Group at their meeting held on 30 January 2012 approved a restructuring package in terms of which the loans as of 1 July 2011 were restructured and certain additional financial assistance was proposed to be extended to the Company that was set out in the Letter of Approval dated 7 March 2012 issued by Corporate Debt Restructuring Cell to the Lenders and the Company (hereinafter referred to as the "CDR Package").

The terms and conditions of the CDR were binding on the Lenders and the Company, effective from the date of the signing of the Master Restructuring Agreement ('MRA') i.e. 28 March 2012 with each of the Lenders (except for Indian Bank). The Company had accordingly given effect to the CDR scheme w.e.f. from 1 July 2011, in the financial statements for the year ended 31 March 2012. However one of the banks of the consortium group i.e. Indian Bank had not agreed to the CDR package and had not signed the Master Restructuring Agreement (MRA). The MRA was signed by the concerned bank on 5 July 2012. In connection with obtaining the necessary approvals for restructuring of existing loans, the promoters contributed funds in accordance with sanction letter. As a consequence, the Company received an unsecured loan from its promoters amounting to Rs. 950.00.

During the previous year, the Company has received interest free unsecured loan from a party amounting to Rs. 250.00 towards meeting expenses for CDR-2 to be converted into 2,5000,00 zero coupon redeemable non convertible non cumulative preference shares of face value of Rs 10 each on approval from shareholders. However during the current year, on approval from shareholders the Company has, instead of prefrence shares, allotted 2,500,000 equity shares of Rs 10 each at par value.

iii) Principal terms of the Master restructuring Agreement ('MRA') in accordance with the CDR scheme.

a) Waivers of existing events of default and the consequential effect thereof:The Company in accordance with the terms and conditions of the MRA agreed to the reconstitution of the Existing Loans due to the Lenders pursuant to the CDR Package. As part of the restructuring arrangement, the Lenders waived any existing Events of Default in connection with the Existing loans and any rights, remedies or powers that had arisen in connection therewith. Also, each of the Lenders waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the interest rates specified in the existing documents for financing and security of such Lender as they existed prior to 1 July 2011, without considering any increase in such rates on account of the occurrence of any default under such documents, together with compound interest, penalties or any other charges thereon under those documents of such Lender during the period commencing on 1 July 2011 and ending on 30 June 2013.

In accordance with the CDR scheme the consortium of lenders had waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the concessional rates approved under CDR package.

b) Restructuring of the loans existed as at 1 July 2011:

- Each of the Lenders and Company agreed that the loans shall be reconstituted as follows:

- Rupee Term Loans of Rs. 34,485.82 together with all interest, charges, costs, expenses and any other amounts accrued was reconstituted into Facility -A;

- Short Term Loan of Rs. 2,200.00 from Andhra Bank outstanding as on 1 July 2011 i.e. the Cut–off date was rescheduled and converted into "Priority Medium Term Loan" as Facility -B;

- Irregularity as on 31 March 2012 in Working Capital Limits comprising cash credit, packing credit, buyer's credit facility, bill discounting and irregularities due to anticipated devolvement of LCs was converted into WCTL as Facility C;

- Interest accrued/ to be accrued on Secured term loans, Short term loan and WCTL until 30 June 2013 to be funded by way of Funded Interest Term Loan ("FITL") as Facility- D.

c) Sanction for additional funding

1. Project Loan from Union Bank of India

Union Bank of India ('UBI') sanctioned a Project Loan amounting to Rs. 27,500 (including Priority Term Loan of Rs. 4,700). The Project Loan by UBI was sanctioned in the following manner:

a) The Company was sanctioned Rs. 22,800 Letter of Credit (LC) opened in favour of M/s. Schmid Technology Systems GmbH ('Schmid') through UBI, for a period of 35 months from the date of shipment out of the project loan sanctioned. In accordance with the said arrangement, the letter of credit shall be converted into Term Loan in February 2014. Schmid discounted the said Letter of Credit with their bankers (counterparty bank). UBI in consultation with the Company entered into a deferred payment credit facility with the counterparty bank wherein, a sum of Rs. 22,142.26 was paid by the counterparty bank to M/s. Schmid towards imported capital goods until 31 March 2012.

UBI is paying the interest in relation to such financing to the counterparty bank, which is being charged to the Company. In accordance with the terms of the deferred payment facility, there is no obligation to pay to Schmid as the same was discharged by the counterparty bank. As a consequence, UBI has an obligation towards the counterparty bank to repay the loan in accordance with the terms agreed at the end of the Letter of credit term i.e. 35 months from the date of shipment. Such amount payable under the deferred payment mechanism was therefore classified as long term borrowings. During the curent year the deferred payment mechanism was paid out of term loan facility reffered as 5(e). The balance as at 31 March 2015 and 31 March 2014 amount to Rs. Nil and Rs. 26,754.78 respectively.

b) Rs. 4,700 out of the said project loan representing priority medium term loan shall be disbursed by UBI to the Company towards capital expenditure. In the current year, the Company has drawn a sum of Rs. Nil (previous year Rs. 300.00) out of the sanctioned limit.

2. Priority medium term loan

As part of the CDR package the Lenders agreed to provide additional funding in the form of priority medium term loans of Rs. 10,000 for the implementation of 200 MW Plant in the proportion of the outstanding exposure to the Company as on the 1 July 2011. Such funding priority shall be in the form of deferred letter of credit for 35 months which shall be funded by the Priority loans. In the current year, the Company has drawn a sum of Rs. 1,150.00 (previous year Rs. 21.76) (net of repayment) out of the sanctioned limit.

d) Reset of Interest Rate:

The Lenders who are part of the consortium of banks, alongwith the approval of CDR EG, shall have a right to reset the rate of interest on the term loans after every three years (or short period as decided by the CDR EG) and working capital interest rate every year.

e) Consequential effect of the CDR Scheme on the interest cost and the classification of the interest accrued on borrowings as loans

As explained in note 6 (iii) (a) above, the Lenders waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the concessional rates approved under the CDR package w.e.f 1 July 2011. Consequently, an interest credit received from the Lenders amounting to Rs 1,201.70 and the balance of interest accrued outstanding as at 31 March 2012 relating to various facilities amounting to Rs 3,502.00 was transferred to FITL.

f) Default in repayment of loan and interest

As per the terms of the first Corporate Debt Restructuring package, 10% of principal amount aggregating to Rs. 6,717.08 and 5% of principle amount aggregating to Rs. 459.78 became due during the current year ended 31 March 2015 and 3% of principal amount aggregating to Rs. 2,439.29 became due during the previous year ended 31 March 2014. Further, the interest outstanding on the term loans as at 31 March 2015 amounts to Rs. 16,968.59 (Previous year Rs. 6,030.46).

3. 2nd Re-structuring

In light of continuing downturn in the solar industry where margins were under significant stress and the continuing operating and cash losses of the Company, the Company could not achieve the projection submitted under first CDR package. Considering the above, the Company has approached for second CDR package in the financial year ended March 31, 2014 which is under consideration with banks.

4. COMMITMENTS

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 337.73 (previous year Rs. 8,268.18).

b) For commitments relating to lease arrangements (Refer note 29).

c) For commitments relating to net positive foreign exchange earnings (Refer note 35).

5. LEASE TAKEN BY THE COMPANY

The Company has various operating leases under cancellable and non cancellable operating lease arrangements for plant and machinery, office premises, accommodation for employees and other assets which are renewable on a periodic basis. Rent expenses for operating leases included in the Statement of Profit and Loss is Rs. 21.12 (previous year: Rs. 55.14).

6. The Company has incurred expenses in foreign currency (including amortisation of imported machinery) amounting to Rs. 115,937.53 lakhs till 31 March 2015. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a positive Net Foreign Exchange within ten years from the commencement of its operation. At current quarter end (i.e. after five years of commencement of its operations), the Company's earnings is a negative Net Foreign Exchange Earnings of Rs. 6,585.79 lakhs (previous quarter Rs. 18,557.22 lakhs). On a 5 year block basis the company had achieved the negative NFE of Rs. 26,102.08 lakhs upto 31 March 2014. In the next block of five years starting from 1 April 2014 till end of current quarter, the Company could achieve positive NFE of Rs. 19,516.29 lakhs. As explained in Note 2 above, the ability of the Company to meet its export obligations over the next 5 years is dependent on various factors which have created multiple uncertainties, the effect of which , is not ascertainable at present.

7. Related party disclosures List of related parties

a) Parties where control exists :

i) Key managerial personnel controlling the Company*

Mr. H.R Gupta

Mr. B.K Gupta

b) Other related party relationships where transactions have taken place:

i) Party holding significant influence over the enterprise Greenlite Lighting Corporation

8. Employees benefit

Disclosure in respect of employee benefits under Accounting Standard 15 "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules 2006:

a) Defined Contribution Plans: The Company has recognised Rs. 67.20 (Previous year Rs. 25.87) related to employers' contribution to Provident Fund Scheme in the Statement of Profit and Loss.

b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 10.00.

9. Segment Information

(a) Information about primary business segment

In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 "Segment Reporting", prescribed by the Companies (Accounting Standards) Rules, 2006.

(b) Information on secondary/ geographical segment

The Company sells its products to various customers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

10. Shareholders had passed ordinary resolution through postal ballot on 31st January, 2011 to empower and authorise the Board of Directors to vary terms and contracts mentioned in the prospectus dated 18th September, 2010, vary/ amend/ alter the utilisation of net proceeds inter se one or other of the purposes for their utilisation, described in the said prospectus on even date and utilise any part of the net proceeds for a purpose or purposes other than those described in the said prospectus. The funds raised and utilised by the Company are as under:

11. The Company had been awarded a turnkey contract by MP Urja Vikas Nigam Limited (MP Urja) for setting up of 3MW (in aggregate) SPV Power Plants with a capacity ranging between 10-50 KW per plant, vide letter of intent dated 12 September 2012, through a tender process during the quarter ended 31 December 2012. The contract included design, engineering, supply, installation and commissioning and interfacing of Solar Photovoltaic Power Plants (SPVPP) with 5 years Warranty Cum Comprehensive Maintenance Contract (CMC). In accordance with the stipulated terms of the contract, the Company has deposited earnest money deposit (EMD) amounting to Rs. 60.10 lakhs. Out of the total contract, work orders aggregating to 1.6 MW amounting to Rs. 2,914.13 lakhs was raised on the Company that was required to be executed till 30 June 2013. The Company has raised the bills for having completed 0.1 MW (5 sites) until 31 March 2014 and the dues outstanding in relation to the executed portion amounts to Rs. 177.23 lakhs. The Company had also filed an application seeking extension with MP Urja for completion of the unexecuted work.

During the previous year, the Company had received a final notice from MP Urja rejecting the extension plea and deciding to cancel the work order (other than the 3 sites considered completed by MP Urja) given to the Company along with the forfeiture of EMD and imposition of penalty due to the non compliance by the Company. MP Urja had also stated in the notice that it shall take action against the Company on account of breach of terms and conditions of the agreement. The contract stipulates a penalty if there is a delay in completing the work order that can extend to a maximum of 10 % of the order value and MP Urja will be free to purchase the balance goods from elsewhere without notice to the Company and carry out the unexecuted work, at Company's cost and risk. Also, any loss or damage that MP Urja may sustain due to such failure MP Urja shall have a right to recover any loss or damage, if any, from any sum payable to the Company. Further, if recovery is not possible from the Company on account of the Company's failure to pay the losses or damages within one month from the claim, the recovery shall be made under Madhya Pradesh Public Demand Recovery Act or any other law applicable under these circumstances.

The Company is contesting the MP Urja claims citing logistical issues, delay in handing over the sites and delays in issuing site completion reports by MP Urja and has requested to recall the notice for cancellation of work orders and has further requested to allow the Company to complete the pending work allocated. The response of MP Urja is still waited. However, the management is under final negotiation with the department and hope the matter will be resolved in the next 2 quarter of the next financial year and outstanding amount will be realised after adjusting sum amount of penalties which is not yet ascertained. As a consequence, the impact of the loss or damage due to the action that MP Urja may take and the outcome of the final notice issued, that may include forfeiture of EMD, adjusting the dues against any loss or damage and levy of penalty, in the light of the Company expressing its inability to complete the order within the stipulated time period, is uncertain and the same shall crystallise only on the conclusion of discussion and the actions that the authorities may take against the Company.

12. During the current year, one of the consortium lender banks of the Company has given the credit of Rs. 296.72 lakhs (previous year Rs. 223.82 lakhs) in the loan account of the Company with the realisations on sale of shares pledged by the one of the promoter, Greenlite Lighting Corporation, Canada (a promoter group company). The Company has recorded the same as interest free unsecured loan from Geenlite Lighting corporation, Canada and the same is repayable after 31 March 2016.

13. Previous period figures have been re-grouped/re-classified/re-arranged wherever necessary to make them comparable.

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Mar 31, 2014

1. Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 8,268.18 (previous year Rs. 8,653.13).

b) For commitments relating to lease arrangements (Refer note 29).

c) For commitments relating to net positive foreign exchange earnings (Refer note 35).

2. The Company has incurred expenses in foreign currency (including amortisation of imported machinery) amounting to Rs. 106,746.62 lakhs till 31 March 2014. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a positive Net Foreign Exchange within ten years from the commencement of its operation. At current year end (i.e. after five years of commencement of its operations), the Company''s earnings is a negative Net Foreign Exchange Earnings of Rs. 26,120.04 lakhs. As explained in Note 1, the ability of the Company to meet its export obligations over the next 5 years is dependent on various factors which have created multiple uncertainties, the effect of which, is not ascertainable at present.

3. Contingent liabilities

Particulars As at As at 31st March, 2014 31st March, 2013

Excise duty demand - 76.76 pending settlement

Service tax demand - 1,903.71 pending settlement

Custom duty demand 9,430.19 - pending settlement*

Total 9,430.19 1,980.47

* During the current year, the Company has received a show cause notice from the Office of the Commissioner, Customs, Central, Excise & Service Tax Commissionerate (''Authority), Noida, whereby the authority has asked the Company to explain why custom duty of Rs. 9,430.19 lakhs along with interest and penalty thereon should not be levied on the Company in respect of import of duty free capital goods, as the Company could not install the machinery within the stipulated time period. The Company has filed a reply with the authority citing the delays in installation primarily due to financial constraint arising out of the downturn in the solar industry. Response of the department on the same is still awaited.

4. The Company had been awarded a turnkey contract by MP Urja Vikas Nigam Limited (MP Urja) for setting up of 3MW (in aggregate) SPV Power Plants with a capacity ranging between 10-50 KW per plant, vide letter of intent dated 12 September 2012, through a tender process during the quarter ended 31 December 2012. The contract included design, engineering, supply, installation and commissioning and interfacing of Solar Photovoltaic Power Plants (SPVPP) with 5 years Warranty Cum Comprehensive Maintenance Contract (CMC). In accordance with the stipulated terms of the contract, the Company has deposited earnest money deposit (EMD) amounting to Rs. 60.10 lakhs. Out of the total contract, work orders aggregating to 1.6 MW amounting to Rs. 2,914.13 lakhs was raised on the Company that was required to be executed till 30 June 2013. The Company has raised the bills for having completed 0.1 MW (5 sites) until 31 March 2014 and the dues outstanding in relation to the executed portion amounts to Rs. 177.23 lakhs. The Company had also filed an application seeking extension with MP Urja for completion of the unexecuted work till 30 June 2014.

During the year, the Company had received a final notice from MP Urja rejecting the extension plea and deciding to cancel the work order (other than the 3 sites considered completed by MP Urja) given to the Company alongwith the forfeiture of EMD and imposition of penalty due to the non compliance by the Company. MP Urja has also provided in the notice that it shall take action against the Company on account of breach of terms and conditions of the agreement. The contract stipulates a penalty if there is a delay in completing the work order that can extend to a maximum of 10 % of the order value and MP Urja will be free to purchase the balance goods from elsewhere without notice to the Company and carry out the unexecuted work, at Company''s cost and risk. Also, any loss or damage that MP Urja may sustain due to such failure MP Urja shall have a right to recover any loss or damage, if any, from any sum payable to the Company. Further, if recovery is not possible from the Company on account of the Company''s failure to pay the losses or damages within one month from the claim, the recovery shall be made under Madhya Pradesh Public Demand Recovery Act or any other law applicable under these circumstances. Management is contesting the aforesaid claims citing logistical issues, delay in handing over the sites and delays to issue site completion reports on part of MP Urja and has requested to recall the notice for cancellation of work orders and has further requested to allow the Company to complete the pending work allocated. The response of MP Urja is still waited. As a consequence, the impact of the loss or damage due to the action that MP Urja may take and the outcome of the final notice issued, that may include forfeiture of EMD, adjusting the dues against any loss or damage and levy of penalty, in the light of the Company expressing its inability to complete the order within the stipulated time period, is uncertain and the same shall crystallise only on the conclusion of discussion and the actions that the authorities may take against the Company.

5. During the year, on 24 March 2014 the Company has received a letter from National Stock Exchange with reference to the recommendations of Qualified Audit Review Committee advising the Company to rectify the qualification in respect of i) Treatment of demurrage charges amounting to Rs. 1,254.51 lakhs that were paid at the time of removal of machinery which was lying at the bonded warehouse for a significant period of time and formed part of the cost of acquisition of an asset and were inappropriately capitalised under capital work-in-progress; ii) Multiple uncertainties due to various factors impacting going concern.

In response to the observations, the Company has rectified the treatment of demurrage charges and in respect of the uncertainties impacting going concern, the Company has filed a reply with the stock exchange explaining that the factors impacting going concern are not wholly within the control of the Company and therefore cannot be rectified. Accordingly, the financial statements includes demurrage/ detention charges aggregating to Rs. 1.308.36 lakhs (including Rs. 53.85 lakhs emanating from reconciliations with the vendor) and have been included in other expenses.

6. During the current year, one of the consortium lender banks of the Company has given the credit of Rs. 223.82 lakhs in the loan account of the Company with the realisations on sale of shares pledged by the one of the promoter, Greenlite Lighting Corporation, Canada (a promoter group company). The Company has recorded the same as interest free unsecured loan from Lighting corporation, Canada and the same is repayable after 31 March 2015.

7. Previous period figures have been re-grouped/re-classified/re-arranged wherever necessary to make them comparable.

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Mar 31, 2013

1 Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 8,653.13 (previous year Rs. 2,674.30).

b) For commitments relating to lease arrangements (Refer note 29).

c) For commitments relating to net positive foreign exchange earnings (Refer note 35).

2 Lease taken by the Company

The Company has various operating leases under cancellable and non cancellable operating lease arrangements for plant and machinery, office premises, accommodation for employees and other assets which are renewable on a periodic basis. Rent expenses for operating leases included in the Statement of Profit and Loss is Rs. 316.29 (previous year: Rs. 266.35).

3 The Company has incurred expenses in foreign currency (including amortisation of imported machinery) amounting to Rs. 101,211.69 till 31st March 2013. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a Net Positive Foreign Exchange within ten years from the commencement of its operation. At the year end (i.e. after three years of commencement of its operations), the Company''s earnings is a Negative Net Foreign Exchange Earnings of Rs. 22,124.03. As explained in Note 1 above, the ability of the Company to meet its export obligations over the next 6 years is dependent on various factors which have created multiple uncertainties, the effect of which if any is not ascertainable.

4 Related party disclosures List of related parties

a) Parties where control exists :

i) Key managerial personnel controlling the Company Mr. H.R Gupta Mr. B.K Gupta

b) Other related party relationships where transactions have taken place during the year

i) Other key managerial personnel Mr. A.K Agarwal

5 Employees benefit

Disclosure in respect of employee benefits under Accounting Standard 15 "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006:

a ) Defined Contribution Plans: The Company has recognised Rs. 69.36 (Previous year Rs. 72.42) related to employers'' contribution to Provident Fund Scheme in the Statement of Profit and Loss.

b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 10.00.

6 Segment Information

(a) Information about primary business segment

In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 "Segment Reporting", prescribed by the Companies (Accounting Standards) Rules, 2006.

(b) Information on secondary/ geographical segment

The Company sells its products to various customers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

7 Shareholders had passed ordinary resolution through postal ballot on 31st January, 2011 to empower and authorise the Board of Directors to vary terms and conditions mentioned in the prospectus dated 18th September, 2010, vary/ amend/ alter the utilisation of net proceeds inter se one or other of the purposes for their utilisation, described in the said prospectus on even date and utilise any part of the net proceeds for a purpose or purposes other than those described in the said prospectus. The funds raised and utilised by the Company are as under:

8 Contingent liabilities

Particulars As at As at 31st March, 2013 31st March, 2012

Excise duty demand pending settlement 76.76 -

Service tax demand pending settlement 1,903.71 -

Total 1,980.47 -

9 The Company had been awarded a turnkey contract by MP Urja Vikas Nigam Limited (MP Urja) for setting up of 3MW (in aggregate) SPV Power Plants with a capacity ranging between 10-50 KW per plant, vide letter of intent dated 12th September 2012, through a tender process during the year. The contract included design, engineering, supply, installation and commissioning and interfacing of Solar Photovoltaic Power Plants (SPVPP) with 5 years Warranty Cum Comprehensive Maintenance Contract (CMC). Out of the total contract, 1.6 MW was required to be executed till 30th June 2013. The contract remained unexecuted as at 31st March 2013. However, the Company is in the process of executing 100 KW subsequent to 31st March 2013. Also, the Company has filed an application seeking extension with MP Urja for completion of work. The contract stipulates a penalty if there is a delay in completing the work order that can extend to a maximum of 10 % of the order value and in the event of delay beyond 10 weeks, MP Urja has the authority to cancel the contract. The likely impact of the loss or damage due to inability or delay to complete the orders by the Company is not quantifiable as the final outcome thereof, is uncertain and the same shall crystallise only after the completion of discussion and necessary clearances from the necessary authorities.

10 Previous period figures have been re-grouped/re-classified/re-arranged wherever necessary to make them comparable.

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Mar 31, 2012

A. Term and rights attached to Equity shares

The Company has only one type of equity shares having par value of Rs. 10 each per share. All shares rank pari passu with respect to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share except, in respect of any shares on which any calls or other sums payable have not been paid. The Company pays and declares dividends in Indian Rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b. Aggregate number of equity shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding 31st March, 2012

(i) 185,000 equity shares (in '000) of Rs. 10 each, fully paid and 15,000 equity shares (in '000) of Rs. 0.50 each partly paid were issued to the shareholders of erstwhile Indosolar Limited in the year ended 31st March, 2009 in accordance with the scheme of amalgamation. Such partly paid equity shares were made fully paid prior to the effective date of scheme of amalgamation i.e. 24th September, 2009.

(ii) No shares have been bought back during the five-year period ended 31st March, 2012 (31st March, 2011). guarantees given by the Directors of the Company i.e. Mr. B. K. Gupta and Mr. H.R. Gupta.

1 DEBT RESTRUCTURING

i) Background

The Company had set up a green field project for manufacturing Solar Photovoltaic cells with a capacity of 160 MW, comprising two lines of 80 MW each under Phase -I and are in the process of setting up an additional manufacturing facility Line -3 with a 200 MW capacity under Phase - II, at Plot No. 3C/1 Ecotech-II, Udyog Vihar Greater Noida in the State of Uttar Pradesh. The existing lending banks ('Lenders') had, at the request of the Company, sanctioned Term loans, deferred payment guarantee facilities and working capital facilities on such terms and conditions as contained in various loan agreements / facility agreements entered into between the Company and the Lenders.

ii) Conditions leading to restructuring

The Company witnessed significant downturn due to weak demand both globally as well as in the domestic market and incurred significant cash and operating losses during the year. Also, the current mismatch between cost and selling prices resulted in the stoppage of plant from September, 2011, which severely impacted the cash flow position of the Company that prompted the filing of a restructuring package of its existing loans with the Corporate Debt Restructuring Cell ('CDR Cell'). At the request of the Company and in consideration of its commitment to improve its operations, the application so filed was referred to the Corporate Debt Restructuring Forum, a non-statutory voluntary mechanism set up under the aegis of the Reserve Bank of India (hereinafter referred to as the "CDR"). Pursuant thereto, the CDR Empowered Group at their meeting held on 30th January, 2012 approved a restructuring package in terms of which the existing loans were restructured and certain additional financial assistance was proposed to be extended to the Company as set out in the Letter of Approval dated 7th March, 2012 issued by Corporate Debt Restructuring Cell to the Lenders and the Company (hereinafter referred to as the "CDR Package")

The terms and conditions of the CDR are binding on the Lenders and the Company, effective from the date of the signing of the Master Restructuring Agreement ('MRA') i.e. 28th March, 2012 (except in case of Indian Bank wherein the ('MRA') is yet to be signed) with each of the Lenders. Under the CDR package, the Company is entitled to the reliefs and concessions granted by the Lenders pursuant to the Approved CDR Package, with effect from 1st July, 2011 ('the Relevant Date'). In connection with obtaining the necessary approvals for restructuring of existing loans, the promotors were required to contribute funds in accordance with sanction letter. As a consequence, the Company received an unsecured loan from its promotors amounting to Rs. 950.00.

iii) Principal terms of the Master restructuring Agreement ('MRA') in accordance with the CDR scheme.

a) Waivers of existing events of default and the consequential effect thereof:

The Company in accordance with the terms and conditions of the MRA agreed to the reconstitution of the Existing Loans due to the Lenders pursuant to the CDR Package. As part of the restructuring arrangement, the Lenders waived any existing Events of Default in connection with the Existing loans and any rights, remedies or powers that had arisen in connection therewith. Also, each of the Lenders waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the interest rates specified in the existing documents for financing and security of such Lender as they existed prior to 1st July, 2011, without considering any increase in such rates on account of the occurrence of any default under such documents, together with compound interest, penalties or any other charges thereon under those documents of such Lender during the period commencing on 1st July, 2011 and ending on 30th June, 2013.

b) Restructuring of the Existing loans:

- Each of the Lenders and Company agreed that the Existing Loans shall be reconstituted as follows:

- Existing Rupee Term Loans of Rs. 34,485.82 together with all interest, charges, costs, expenses and any other amounts accrued and outstanding on 1st July, 2011 has been reconstituted into Facility -A;

- The existing Short Term Loan of Rs. 2,200.00 from Andhra Bank outstanding as on 1st July, 2011 i.e. the Cut-off date shall be rescheduled and converted into "Priority Medium Term Loan" as Facility -B;

- The estimated amount of irregularity as on 31st March, 2012 in Working Capital Limits previously consisting of cash credit, packing credit, buyer's credit facility and bill discounting on the basis of prevailing exchange rates, prevailing realisable value of inventory etc. including irregularities due to anticipated devolvement of LCs upto 31st March, 2012, subject to reconciliation at the time of implementation, shall stand converted into WCTL as Facility - C;

- The outstanding amount on account of interest on Secured term loans, interest on Short term loan, interest on WCTL and interest on existing Working Capital from cut-off date till 30th June, 2013, not exceeding Rs. 9,845.00 shall stand funded by way of Funded Interest Term Loan ("FITL") as Facility - D

c) Sanction for additional funding

1. Project Loan from Union Bank of India

Union Bank of India ('UBI') sanctioned a Project Loan amounting to Rs. 27,500 (including Priority Term Loan of Rs. 4,700). The Project Loan by UBI has been sanctioned in the following manner:

a) The Company has been sanctioned Rs. 22,800 Letter of Credit (LC) opened in favour of M/s. Schmid Technology Systems GmbH ('Schmid') by UBI, for a period of 35 months from the date of shipment out of term loan disbursement. In accordance with the said arrangement, the same shall be converted into Term Loan in February, 2014. Schmid discounted the said Letter of Credit with their bankers (counterparty bank) and UBI in consultation with the Company and Schmid, entered into a Deferred payment credit facility with the counterparty bank wherein, a sum of Rs. 22,142.26 has been paid by the counterparty bank to M/s. Schmid towards imported capital goods . UBI is paying the interest in respect relating to such financing to the counterparty bank, which is being charged to the Company. In accordance with the terms of the agreement with Schmid and the Deferred payment facility, there is no obligation to pay to Schmid as the same has been discharged by the counterparty bank. As a consequence, UBI has an obligation towards the counterparty bank to repay the loan in accordance with the terms agreed at the end of the Letter of credit term i.e. 35 months from the date of shipment. Such amount payable under the Deferred payment mechanism has therefore been classified as Long term borrowings.

b) Rs. 4,700 out of the said Project Loan shall be disbursed by UBI to the Company towards capital expenditure.

2. Medium term loan

As part of the CDR package the Lenders have agreed to provide additional funding in the form of medium term loans of Rs.10,000 for the implementation of 200 MW Plant in the proportion of the outstanding exposure to the Company as on the 1st July, 2011. Such funding shall be in the form of deferred letter of credit for 35 months which shall be funded by the Priority loans.

d) Reset of Interest Rate:

The Lenders who are part of the consortium of banks, alongwith the approval of CDR EG, shall have a right to reset the rate of interest on the term loans after every three years (or short period as decided by the CDR EG) and working capital interest rate every year.

e) Consequential effect of the CDR Scheme on the interest cost and the classification of the interest accrued on borrowings as loans

As explained in note 6 (iii) (a) above, the Lenders waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest / further interest charged by the Lenders in excess of the concessional rates approved under the CDR package from 1st July, 2011, the consequential effect has been that there has been a credit received from the Lenders amounting to Rs 1,201.70 and the balance of interest accrued outstanding as at 31st March, 2012 relating to various facilities amounting to Rs 3,502.00 transferred to FITL.

f) Balances outstanding in relation to facilities availed from Indian Bank pending finalisation and approval

As explained in note (ii) above, one of the consortium banks i.e. Indian Bank is yet to sign the Master Restructuring Agreement. However, management believes that as per RBI guidelines the CDR package has been approved by super majority of the consortium of banks. Accordingly, the owings to this particular bank have been reclassified and interest has been recalculated in accordance with the CDR package. The short term borrowings comprising cash credit amounting to Rs 1,223.92 and devolved Letter of Credit amounting to Rs. 511.57 have been reclassified as Long term borrowing (Rs. 1,402.43) and Short term borrowings (Rs. 333.06) as at 31st March, 2012. The existing term loan of Rs. 5,996.79 has been disclosed as long term borrowing with Nil current maturities. The interest due w.e.f 1st July, 2011 till 31st March, 2012 at revised rates amounting to Rs. 549.73 has been reclassified as a Funded Interest Term Loan. The above reclassifications and interest calculations are subject to reconciliation and approval by this particular bank.

** Details of dues to micro and small enterprises defined under the MSMED Act, 2006

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26th August, 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with their customers the Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no amounts payable to Micro and Small Enterprises as at 31st March, 2012. Based on the information presently available with the Company, there are no dues outstanding to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006.

* Fixed deposits includes Rs. 413.08 (previous year Rs. 1,190.00 ) as margin money against guarantees issued by bank.

# Fixed deposits includes Rs. 2,375.30 (previous year Rs. 2,595.30 ) as margin money against guarantees issued by bank. Rs. 2,375.00 (previous year Rs. 2,375.00) have been funded from monies received from initial public issue. Also, refer note 41.

3 The Global Photovoltaic sector remains in a structural oversupply in 2012 with an estimated capacity likely to be in the region of 50GW with the operating capacity being lower than that. Correspondingly, the demand would be approximately 35GW. It is expected that China, USA, Japan and India shall be the main demand growth drivers in 2012.

The Indian Solar Energy Market has developed over the last few years mainly due to the National Solar Mission ('NSM') and the State Solar programs. Annual installed capacities/projections are as under:

The market size estimates in some of the expert reports (Deustche Bank and McKinsey) suggest that the annual capacity may be much higher compared to the above projections. The most recently conducted bidding process by NTPC Vidyut Vyapar Nigam Limited ('NVVN') under National Solar Mission (NSM) led to a sharper than expected reduction in the Project Costs Assumptions due to aggressive bidding. As a consequence, this has impacted the

price points for Solar cells and Modules, thus making the economics challenging at this point in time. Project developers are also facing difficulties in obtaining Financial Closure from Banks for their Projects, which is further delaying the finalization of orders for Solar cells and Modules.

The current mismatch between cost and selling prices has resulted in the stoppage of plant from September, 2011, which severely impacted the cash flow position of the Company that prompted the filing of a restructuring package with the Corporate Debt Restructuring Cell. In connection therewith, the Company prepared Cash Flow projections after taking into account the current business realities and such cash flows have been incorporated in the CDR package which has been approved by the consortium of banks. Management has simultaneously implemented operational improvement actions and new initiatives as part of the compensating actions to protect the margins in the context of the current price erosion. The cash flow projections have been prepared with an assumption that the project developers shall be able to achieve financial closures and that the Company shall be able to garner a reasonable share of demand both under NSM and State Solar Missions with sustainable and reasonable gross margins despite low selling prices. The Company's cash flow projections are largely dependent upon the achievement of all these factors.

Management believes that the sector requires significant government support and policy intervention to support the viability of the sector. A few such policy initiatives under active discussion and the outcome of which is awaited at this point in time relate to:

- The Imposition of Anti Dumping Duty on goods from China, Taiwan, Malaysia & USA as per the petition filed by The Solar Manufacturers Association of India on 18th January, 2012;

- The continuance and increasing scope of Local Content Requirement ['LCR'] for the PV cells in Phase II of NSM [2013 to 2017]; and

- Commitment of the government to the National Solar Mission and State Solar Missions.

As a result of the above significant uncertainties and possible changes in the business dynamics mentioned above, the outcome of which including consequential impact on the Company's cash flows will be known only in the ensuing period, the cash flows that were prepared by management and as approved by the CDR cell have been considered for impairment assessment. Based on such analysis, the cash flow projections do not indicate impairment as at 31st March, 2012 .

4 Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 2,674.30 (previous year Rs. 26,903.16).

b) For commitments relating to lease arrangements (refer note 30)

c) For commitments relating to net positive foreign exchange earnings (refer note 36).

5 Lease taken by the Company

The Company has various operating leases under cancellable and non cancellable operating lease arrangements for plant and machinery, office premises, accommodation for employees and other assets which are renewable on a periodic basis. Rent expenses for operating leases included in the Statement of Profit and Loss is Rs. 266.35 (Previous year: Rs. 372.55).

6 The Company had imported machinery, raw material and incurred other expenses in foreign currency amounting to Rs. 124,066.77 (previous year Rs. 113,705.52) till 31st March, 2012. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a net positive Net Foreign Exchange within ten years from the commencement of its operation. At year end (i.e. after three years of commencement of its operations), the Company's earnings is a negative Net Foreign Exchange Earnings of Rs. 16,123.90 (previous year Rs. 9,018.29). Management is confident that they would be able to achieve a positive net foreign exchange during the unexpired period. Also, refer note 29.

7 Related party disclosures List of related parties

a) Parties where control exists :

i) Key managerial personnel controlling the Company Mr. H.R Gupta Mr. B.K Gupta

b) Other related party relationships where transactions have taken place during the year

i) Relatives of key managerial personnel controlling the Company Mrs. Priya Desh Gupta

ii) Other key managerial personnel Mr. A.K Agarwal

8 Employees benefit

Disclosure in respect of employee benefits under Accounting Standard 15 "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006:

a) Defined Contribution Plans: The Company has recognised Rs. 77.50 (Previous year Rs. 75.53) related to employers' contribution to Provident Fund and Employees State Insurance Scheme in the Statement of Profit and Loss.

b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 10.00 .

9 Segment Information

(a) Information about primary business segment

In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 "Segment Reporting", prescribed by the Companies (Accounting Standards) Rules, 2006.

(b) Information on secondary/ geographical segment

The Company sells its products to various customers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

10 During the previous year ended 31st March 2011, the Company incurred significant losses on account of delay in stabilization of one of its lines that had become operational in March, 2010. As a consequence, the Company claimed compensation for operational losses incurred during the period April, 2010 to September, 2010 from its vendor. In lieu of such claim, the Company received cash compensation amounting to Euro 50.00 lakhs (equivalent to Rs. 3,167.65) from its supplier of machinery. Such claim had been disclosed as an exceptional item in the Statement of Profit and Loss.

11 Shareholders had passed ordinary resolution through postal ballot on 31st January, 2011 to empower and authorise the Board of Directors to vary terms and contracts mentioned in the prospectus dated 18th September, 2010, vary/ amend/ alter the utilisation of net proceeds inter se one or other of the purposes for their utilisation, described in the said prospectus on even date and utilise any part of the net proceeds for a purpose or purposes other than those described in the said prospectus. The funds raised and utilised by the Company are as under:

12 During the year, the Company received a loan amounting to Rs. 531.38 from a foreign company to satisfy one of the stipulation of CDR package [also refer to note 6(ii)]. Such loan is categorised as External Commercial Borrowings in respect of which certain regulatory formalities were to be complied with and clearances were to be obtained prior to the receipt of such loan. Management has compiled the necessary documentation and have filed the application with the Reserve Bank of India on 22nd May, 2012 for condonation of non compliance with such regulatory requirements

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Mar 31, 2011

1. Deferred tax

The Company has significant unabsorbed depreciation/ carry forward losses as per the tax laws. In view of absence of virtual certainty of realisation of carried forward tax losses/unabsorbed depreciation in the foreseeable future, deferred tax asset has been recognised only to the extent of deferred tax liability.

2. Contingent liabilities:

(a) Bills discounted with banks outstanding as at 31st March 2011 Rs. Nil (previous year: Rs. 115,161,283). Also refer to note 20 of this schedule.

(b) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 2,690,315,927 (Previous year Rs. 11,529,269).

3. The Company has imported machinery, raw material and incurred other expenses in foreign currency amounting to Rs.11,370,552,000 till 31st March, 2011. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a net positive Net Foreign Exchange within five years from the commencement of its operation. At year end (i.e. after two years of commencement of its operations), the Company's earnings is a negative Net Foreign Exchange Earnings of Rs.901,829,000. Management is confident that they would be able to achieve a positive net foreign exchange during the unexpired period.

4. Related party

a) Parties where control exists:

i) Key managerial personnel controlling the Company

Mr. H.R. Gupta

Mr. B.K. Gupta

b) Other related party relationships where transactions have taken place during current year:

i) Relatives of key managerial personnel controlling the Company Mrs. Priya Desh Gupta

ii) Other key managerial personnel Mr. A.K. Agarwal

5. Employee benefit

Disclosure in respect of employee benefits under Accounting Standard 15 "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006:

(a) Defined Contribution Plans: The Company has recognised Rs.7,552,551 (Previous year Rs.7,090,093) related to employers' contribution to Provident Fund and Employees State Insurance Scheme in the Profit and Loss Account.

(b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 1,000,000.

6. Segment reporting

Business segment: In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 "Segment Reporting", prescribed by the Companies (Accounting Standards) Rules, 2006.

Geographical segment: The Company sells its products to various customers within the country and also exports to other countries. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

7. During the year, the Company has recognised bills discounted with recourse and outstanding at year end as part of working capital loan in Schedule 4 and the corresponding recoverable under sundry debtors following the principle of gross presentation. In the previous year, outstanding bills discounted amounting to Rs. 114,240,581 were adjusted against sundry debtors.

8. During the year the Company received a credit note from principal supplier of machinery amounting to Euro 1,500,000 (equivalent to Rs. 90,551,100 ) to compensate for the delay in the supply of machinery in accordance with the terms of the contract. The amount of credit note has been adjusted to the cost of plant and machinery and the depreciation has been accordingly, recomputed with retrospective effect, resulting in a downward adjustment to depreciation charge by Rs.6,767,243 in the year ended 31st March, 2011.

9. During the year ended 31st March, 2011, the Company incurred significant losses on account of delay in stabilization of one of its lines that had become operational in March, 2010. As a consequence, the Company claimed compensation for operational losses incurred during the period April, 2010 to September, 2010 from its vendor. In lieu of such claim, the Company received cash compensation amounting to Euro 5,000,000 (equivalent to Rs. 316,764,500) from its supplier of machinery. Such claim has been disclosed as an exceptional item in the Profit and Loss Account.

10. Previous year figures have been regrouped / recast wherever necessary to confirm to current year's classification.

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Mar 31, 2010

1. Scheme of amalgamation

i. Scheme

As per the scheme of amalgamation approved by the Board of directors of Indosolar Limited (formerly known as Robin Solar Private Limited) (Robin) or (the Company) on 16 March 2009 and sanctioned by the High Court of Judicature at Delhi vide order dated 16 September 2009, erstwhile Indosolar Limited (Transferor Company) amalgamated into the Company (Transferee Company) w.e.f. the appointed date, i.e. 1 January 2009. The scheme as approved by the High Court was filed with the regional offices concerned of the Registrar of Companies. The Scheme became effective from 24 September 2009 after the approved scheme was filed with the Registrar of Companies.

Robin has been incorporated with the objective of setting up an Export Oriented Unit for solar energy.

ii. Salient features of the Scheme

The salient features of the scheme are as follows:

a) All assets, debts, liabilities, duties and obligations comprising the undertaking of the Transferor company stood transferred or deemed to have been transferred to Robin with effect from

1 January 2009. All such assets, liabilities and reserves of the Transferor Company were taken over at book values at the opening of the business on 1 January 2009.

b) The shareholders of Robin were paid Rs. 227,350,000 in proportion to their shareholding in the Company as on 1 January 2009. Further, as per the scheme this amount of Rs. 227,350,000 was to be adjusted against the debit balance of the shareholders of Robin appearing in the books of Robin/ Transferor company. (Also refer to note 2(iv)(e) of schedule 19).

c) All shares of the Company, i.e. 10,000 equity shares of Rs. 10 each fully paid up were to be reduced and the paid up value to the shareholders entitled thereto were to be paid in cash, as part of the Scheme. Consequent to such payment, these shareholders ceased to have any continuing stake in the Company.

d) The Authorised Share Capital of Transferred Company was increased to the extent of the Authorised Share Capital of the Transferor Company from the effective date without any further act or deed.

e) The name of the Transferor Company was changed to "Indosolar Limited", and the Memorandum and Articles of Association of the Transferee Company were substituted by the Memorandum and Articles of Association of the Transferor Company and the Transferee Companys constitution changed from Private to Public, without any further act or deed, upon the Scheme coming into effect.

iii. Consideration

In consideration of transfer and vesting of the undertaking of the Transferor company, in terms of the Scheme, 185,000,000 equity shares of Rs. 10 each and 15,000,000 equity shares of Rs. 0.5 each partly paid were allotted to shareholders of the Transferor Company in the same proportion of their holdings in the Transferor Company (the paid up capital of the Transferor Company is same as the shares allotted).

The Transferor Company called and received Rs. 9.50 against 15,000,000 equity shares subsequent to the appointed date. As per the approved scheme the same shall continue in the Transferee Company on the same terms and conditions as if the same had been issued and allotted by the Transferee Company.

iv. Accounting treatment

The amalgamation was in the nature of merger and had been accounted for in accordance with the approved scheme of amalgamation and as prescribed by Accounting Standard 14 – "Accounting for Amalgamation":

b. The debit balance of the Profit and Loss Account aggregating Rs. 55,503,765 of the Transferor Company had been recognised in the same form and at the same amount as in the books of Transferor Company at the appointed date in the year ended 31 March 2009.

c. The shares pending issue to shareholders of Transferor Company, amounting to Rs. 1,857,500,000 was disclosed as Equity shares to be issued pursuant to the scheme of amalgamation as at 31 March 2009. After the scheme became effective from 26 September 2009, such shares were allotted as fully paid on the effective date. (Also refer to note 2(iv)(e) of schedule 19).

d. The amount of Rs. 100,000 on account of reduction of share capital has been paid to the shareholders of Robin, as per the scheme. (Also refer to note 2(iv)(e) of schedule 19).

e. In the year ended 31 March 2009, the amount of Rs. 227,350,000 payable to the shareholders of Robin, as per the scheme, was adjusted against the advance receivable aggregating Rs. 205,450,000 existing in the books of erstwhile Indosolar Limited and the balance of Rs. 21,900,000 was included in sundry creditors. The amount of Rs. 227,350,000 in respect of payments to be made to the shareholders was adjusted against revaluation reserve existing in Robins books as at 31 December 2008 as per the scheme.

f. The Company changed its name from Robin Solar Private Limited to Robin Solar Limited on 12 October 2009 and further to Indosolar Limited on 30 October 2009 to give effect to the terms of the scheme.

2. Deferred tax

The Company has significant unabsorbed depreciation/ carry forward losses as per the tax laws. In view of absence of virtual certainty of realisation of carried forward tax losses/unabsorbed depreciation in the foreseeable future, deferred tax asset has been recognised only to the extent of deferred tax liability.

3. a) Contingent liabilities:

Bills discounted with banks outstanding as at 31 March 2010 Rs. 115,161,283 (previous year:Rs. Nil)

b) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 11,529,269 (Previous year Rs. 1,623,789,784).

4. Related party:

a) Parties where control exists:

i) Key managerial personnel controlling the Company Mr. H.R. Gupta

Mr. B.K. Gupta (w.e.f 1 July 2008

b) Other related party relationships where transactions have taken place during current year:

i) Relatives of key managerial personnel controlling the Company Mrs. Priya Desh Gupta

ii) Other key managerial personnel Mr. A.K. Agarwal

iii) Enterprise over which key managerial personnel controlling the Company Erstwhile Indosolar Limited have significant influence ("Indo") (w.e.f 15 January 2008 till 31 December 2008)

5. Employee benefit

Disclosure in respect of employee benefits under Accounting Standard 15 "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006:

a) Defined Contribution Plans: The Company has recognised Rs.7,090,093 related to employers contribution to Provident Fund in the Profit and Loss Account.

b) Post employment benefit plan in the form of gratuity:

The Company has a post employment benefit in the form of gratuity wherein the last drawn salary plus dearness allowance is used to compute gratuity as per the provisions of the Payment of Gratuity Act, 1972. A period of 5 years has been considered as vesting and the maximum benefit that can be availed under the scheme is Rs. 350,000.

6 Managerial remuneration in excess of limits prescribed by section 309

Pursuant to the scheme of amalgamation that was filed with the Registrar of Companies on 24 September 2009, the Company got converted from Private Company to Public Company with effect from that date.

The Managing Director and other Whole-time Directors have been appointed with effect from 26 September 2009, with a remuneration in excess of the limits prescribed by the Companies Act, 1956 (the Act) as the Company has incurred losses in the year ended 31 March 2010 The remuneration amounting to Rs. 24,353,250 paid/ accrued during the period 26 September to 31 March 2010, in excess of the limits prescribed under Schedule XIII of the Act, is held in trust by such managerial personnel until such Central Government approval.

The Company has filed necessary applications for obtaining approval from the Central Government, which is awaited, for the appointment and remuneration paid to the managerial personnel for such period.

7 Segment reporting Business segment

In the opinion of the management, there is only one reportable segment i.e. manufacturing of solar cells, as envisaged by Accounting Standard 17 "Segment Reporting", prescribed by the Companies (Accounting Standards) Rules, 2006.

Geographical segment

The Company sells its products to various customers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as different geographical segments.

8. The Company had sought confirmation from its vendors on their status under Micro, Small and Medium Enterprises Development Act, 2006.Based on the information available till date, there are no amounts due to any micro or small enterprise under the Micro, Small and Medium Enterprises Development Act, 2006.

9. Previous year figures have been regrouped / recast wherever necessary to conform to current years classification.