Indian Renewable Energy Development Agency Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the accompanying Standalone Financial Statements of Indian Renewable Energy Development
Agency Limited ("the Company"),which comprise the Standalone Balance Sheet as at March 31, 2025, and the
Standalone Statement of Profit and Loss (including Other Comprehensive income), Standalone Statement of
Changes in Equity and Standalone Statement of Cash Flows for the year then ended, and Notes to the Standalone
Financial Statements, including a summary of material accounting policies and Other Explanatory information
prepared in accordance with the requirement of the Companies Act 2013 ( as amended) ( "the Act")'' (hereinafter
referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information required by the Act in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and the accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and profit
including comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing
specified under section 143(10) of the Act ("SAs"). Our responsibilities under those Standards are further
described in the ''Auditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the
Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe
that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on the
Standalone Financial Statements.

Emphasis of Matter

We draw your attention to the following matters:

1. As described in Note 38 (40) to the Standalone Financial Statements, the company has classified certain
Loans given aggregating to '' 1,202.21 crore required to be classified as stage III /Non-Performing Assets
(NPA) as stage II / Standard in terms of interim order of Hon''ble High Court of Andhra Pradesh and Hon''ble
High Court of Delhi. The statutory disclosures have been made accordingly. However, as a matter of
prudence, interest income on such accounts becoming NPA in terms of prudential norms of RBI has been
recognized on collection basis and allowance for impairment loss has been made in accounts accordingly.

2. As described in Note 48 (B)(a) to the Standalone Financial Statements, As of 31 March 2024,the reported CRAR
of the Company was 20.11% .This calculation was based on a 50% risk weight assigned to commissioned
renewable energy infrastructure project assets financed by the Company that had reached their commercial
operations date (COD) and had been operational for over a year. However as per 31 March 2025, the company
has applied a 100% risk weight to these assets. Accordingly, CRAR of corresponding period as at 31 March
2024 has been restated to 15.51%.

Our opinion is not modified in respect of the above matters.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the Standalone Financial Statements for the current period. These matters were addressed in the context of
our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have considered the matters described below to be the Key Audit
Matters for incorporation in our Report.

Sr. No.	Key Audit Matters	Auditor’s Response
1.	Impairment of Loan Assets - Expected Credit	Our Audit procedures based on which we arrived
	loss	at the conclusion regarding reasonableness of
	Financing is principal business of the Company and disclosure of Loan assets at fair value after considering the provision for loss due to	the disclosures and accounting for Impairment of Loan Assets -Expected Credit loss includes the following:
	impairment is most significant.	We have obtained an understanding of the
	The Company follows a Board approved methodology wherein assessment for allowance is carried out by an external agency for impairment based on certain criterion / framework classifying the assets into various	guidelines as specified in Ind AS 109 "Financial Instruments", various regulatory updates, guidance of ICAI and internal instructions and procedures of the Company in respect of the ECL and adopted the following audit procedures:
	stages depending upon credit risk and level of	Evaluation and testing of the key internal control
	evidence of impairment.	mechanisms with respect to the loan assets
	The measurement of an expected credit loss allowance (ECL) for financial assets measured at amortized cost requires the use of complex	monitoring, assessment of the loan impairment including testing of relevant data quality, and review of the real data entered.
	models and significant assumptions about future	Recoveries in the loan assets are verified to
	economic conditions and credit behaviour (e.g.,	ascertain level of stress thereon and impact on
	likelihood of customers defaulting and resulting	impairment allowance in Standalone Financial
	losses) to estimate the Probabilities of Default	Statements.
	(PD), Loss Given Default (LGD) and Exposure at Default (EAD). These models and assumptions are key driver to measure Impairment loss.	Verification / review of the documentation, operations / performance, valuation of available securities and monitoring of the loan assets,
	The Company makes significant judgments	especially large and stressed loan assets, to
	while assessing ECL and the assumptions	ascertain any overdue, unsatisfactory conduct or
	underlying the ECL are monitored and reviewed	weakness in any loan asset account.
	on periodically basis.	The company avails services of third party for
	The proper application of such assumptions	evaluation of ECL Components. The calculations
	is material for statement of the Loan Assets.	in the study for impairment allowance carried
	In view of the materiality of the amount of loan	out by third party are relied upon by us and test
	assets in the Standalone Financial Statements,	checks are carried out for the same. The data
	the loss due to impairment of loan assets has	shared with the third party is verified by us for
	been considered as Key Audit Matter in our audit.	correctness of material components being
	Refer Note no. 38 (19) (A) (ii) (a) to the Standalone Financial Statements read with material accounting policy No.3(xx)- ''Financial Instruments'')	submitted. Our audit procedure in the same are limited in view of not sharing software access used for study of such data considering the confidentiality by such third party.
		We also compared ECL with the provisioning as required by the applicable directions of the Reserve Bank of India and ensured adequacy of impairment allowance accordingly.

Sr. No.	Key Audit Matters	Auditor’s Response
2	Fair valuation of Derivative Financial Instruments To mitigate the Company''s exposure to foreign currency risk and interest rate, non-Rupee cash flows are monitored and derivative contracts are entered for hedging purpose. The derivatives are measured at fair value as per Ind AS 109. To qualify for hedge accounting, the hedging relationship must meet certain specified requirements as per Ind AS. Hedge accounting results in significant impact on Standalone Financial Statements together with complexity of its accounting/assumptions and numerous parameters therein for establishing hedge relationship. Gain/Loss on these derivatives is recognised in other comprehensive income or profit and loss as provided by Ind AS. The magnitude of such transactions is significant as per the operations of the company. In view of facts of the matter we have identified it as a key audit matter. (Refer Note No. 38 (29) to the Standalone Financial Statement read with material accounting policy No. 3(xx).	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for derivatives include the following: -Verification of fair value of derivative in terms of Ind AS 109, testing the accuracy and completeness of derivative transactions. -Evaluation of management''s key internal controls over classification, valuation, and valuation models of derivative instruments. -Obtaining details of various financial derivatives contracts as outstanding/pending for settlement as on 31st March, 2025. -Discussing and understanding management''s perception and studying policy of the company for risk management. -Verification of Mark To Market valuation report for outstanding derivatives deal as on 31st March 2025 obtained by the company from external valuer. -Verification of underlying assumptions in estimating the fair valuation arrived at for those financial derivative contracts. -Appropriateness of the valuation methodologies applied and testing the same on sample basis for the derivative instruments. Additionally, we verified the accounting of gain/ loss on derivatives in the other comprehensive income or Profit & Loss Account. Reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 109.
3	Liability for Taxation The company has material uncertain tax demands in respect of matters under dispute which involves significant judgement to determine the possible outcome of these disputes. Service Tax and Goods & Service Tax (GST) Authorities have raised certain issues and raised demands for several past periods, which are being contested by company at various forums. Income Tax cases for FY 2013-14 and FY 2019-20 are pending before the CIT (Appeals). Appropriate provision and disclosure of consequential liabilities is material to the presentation of Standalone Financial Statements.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for Liability for Taxation include the following: Our audit procedure includes review of various orders passed by Assessing Officer on the subject matter in dispute with Department of Income Tax. We undertook procedure to evaluate management position on these uncertain tax positions. For other tax matters, the facts and the legal pronouncements were analyzed and reviewed. We reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 37 "Provisions, Contingent Liabilities and Contingent Assets".

Sr. No.	Key Audit Matters	Auditor’s Response
	Possible outcome of these demands may be substantial. In view of this we have identified it as a key audit matter. Refer note 38 (16) (a) of the Standalone Financial Statements.

Information Other than the Ind AS Standalone Financial Statements and Auditor’s Report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the
information included in the Board''s Report including Annexures to Directors'' Report, Management Discussion
and Analysis Report, but does not include the Standalone Financial Statements and our auditors'' report thereon.
The other information as stated above is expected to be made available to us after the date of this auditors'' report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other
information identified above when it becomes available, and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial Statements, or our knowledge obtained during the course
of our audit or otherwise appears to be materially misstated. When we read the other information as stated above
and if we conclude that there is a material misstatement therein, we are required to communicate the matter to
those charged with governance and describe necessary actions required as per applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect
to the preparation of these Standalone Financial Statements that give a true and fair view of the state of affairs
(financial position), Profit or Loss (financial performance including other comprehensive income), changes in
equity and cash flows of the Company in accordance with the accounting principles generally accepted in India,
including the Indian accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, the Board of Directors of the company is responsible for
assessing the company''s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate
the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also
responsible for overseeing the company''s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone
Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3](i] of the Act, we are also responsible for
expressing our opinion on whether the Company has adequate internal financial controls system with
reference to Standalone Financial Statements in place and the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures
in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our audit report. However, future
events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including
the disclosures, and whether the Standalone Financial Statements represent the underlying transactions
and events in a manner that achieves fair presentation.

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

We communicate with those charged with governance of the Company regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal financial control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the Standalone Financial Statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

Other Matters

i. As per past practice, in respect of loan assets, the Company has provided Expected Credit Loss (ECL) as
required under Ind AS 109 based on the ECL report submitted by an independent expert appointed by the
Company, which inter alia includes assumptions based on technical parameters / certain aspects.

ii. The audit of financial statements for the year ended March 31, 2024 was conducted by the predecessor
statutory auditor of company, who had expressed unqualified opinion on those financial statements vide
their report dated April 19, 2024.

Reports on other legal and regulatory requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (''the Order''), issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure-A”,
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable and in

terms of sub-section (5) of section 143 of the Act, we give in the "Annexure-B” information in respect of the
directions issued by Comptroller and Auditor-General of India in respect of the company .

2. As required by section 143(3) of the act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as
it appears from our examination of those books and proper returns adequate for the purposes of our
audit have been received from branches not visited by us;

c) The Standalone Balance sheet, the Standalone Statement of Profit & Loss including Other
Comprehensive Income, Standalone Statement of Changes in Equity and the standalone statement of
Cash Flows dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid Standalone Financial Statements comply with the accounting standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) In terms of Notification no. G.S.R. 463 (E) dated 05th June 2015 issued by the Ministry of Corporate
Affairs, provisions of Section 164(2) of the Act regarding disqualifications of the Directors, are not
applicable as it is a Government Company;

f) As per notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs,

section 197 of the Act as regards the managerial remuneration is not applicable to the Company, since
it is a Government Company.

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

h) With respect to the other matters to be included in the Auditor''s report in accordance with rule 11 of
the Companies (Audit and Auditors) Rules, 2014 ( ''Audit Rules'') , in our opinion and to the best of our
information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its
Standalone Financial Statements - Refer Note 38 (16) to Standalone Financial Statements.

ii. The Company has made due provision as required under the applicable law or Indian Accounting
Standards, for material foreseeable losses, if any, on long term contracts including derivatives
contracts: - Refer note 38(19)(C) (II) (c) to the Standalone Financial Statements.

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

iv. (a) The management has represented (Refer note 38(27)) that to the best of its knowledge and

belief , no funds have been advanced or loaned or invested ( either from borrowed funds or
share premium or any other sources or kind of funds ) by the company to or in any other person
or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

(b) The management has represented (( Refer note 38(27)) that to the best of its knowledge and
belief , no funds have been received by the company from any person or entity, including foreign
entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise,
that the company shall, directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedure performed that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub clause (a) and (b) contain any material misstatement.

v. No dividend has been declared or paid during the year by the company.

vi. Based on our examination which included test checks, the company has used an accounting
software for maintaining its books of account for the financial year ended 31st March 2025, which
has a feature of recording audit trail (edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the software. Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered with and
the management has represented that the audit trail feature cannot be disabled. Company has
preserved the Audit trail as per the statutory requirements for records retention.

For Shiv & Associates

Chartered Accountants

Firm''s Registration Number: 009989N

Sd/-

CA Shiv Prakash Chaturvedi

Partner

Membership No. 085084

UDIN: 25085084BMMBWD6474

Date: 15.04.2025

Place: New Delhi

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Mar 31, 2024

We have audited the accompanying Financial Statements of Indian Renewable Energy Development Agency Limited ("the Company”),which comprise the ''Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss (including Other Comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes to the Financial Statements, including a summary of material accounting policies and Other Explanatory information prepared in accordance with the requirement of the Companies Act 2013 (as amended) ("the Act”)'' (hereinafter referred to as "Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS”) and the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and profit including comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on

Auditing specified under section 143(10) of the Act ("SAs”). Our responsibilities under those Standards are further described in the ''Auditor''s Responsibilities for the Audit of the Financial Statements'' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI”) together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.

Emphasis of Matter

1. As described in Note 38 (39) to the Financial Statements, the company has classified certain Loans given aggregating to Rs. 87,366.57 Lacs required to be classified as stage III /Non-Performing Assets (NPA) as stage II / Standard in terms of interim order of Hon''ble High Court of Andhra Pradesh. The statutory disclosures have been made accordingly. However, as a matter of prudence, interest income on such accounts becoming NPA in terms of prudential norms of RBI has been recognized on collection basis and allowance for impairment loss has been made in accounts accordingly.

Our opinion is not modified in respect of above matters.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,

and we do not provide a separate opinion on these matters. We have considered the matters described below to be the Key Audit Matters for incorporation in our Report.

Sr. No.	Key Audit Matters	Auditor''s Response
1.	Impairment of Loan Assets - Expected Credit loss	Our Audit procedures based on which we arrived at
	Refer Note no. 38 (20 (A) (a) (ii)) to the Financial Statements read with accounting policy No.3(xx)- ''Financial Instruments'')	conclusion regarding reasonableness of the disclosures and accounting for Impairment of Loan Assets - Expected Credit loss includes the following:
	Financing is principal business of the Company and disclosure of Loan assets at fair value considering the provision for loss due to impairment is most significant.	We have obtained an understanding of the guidelines as specified in Ind AS 109 "Financial Instruments”, various regulatory updates, guidance of ICAI and internal instructions and procedures of the Company in respect of
	The Company follows a Board approved methodology	the ECL and adopted the following audit procedures:
	wherein assessment for allowance is carried out by an external agency for impairment based on certain criterion / framework classifying the assets into various stages depending upon credit risk and level of evidence of impairment. The measurement of an expected credit loss	Evaluation and testing of the key internal control mechanisms with respect to the loan assets monitoring, assessment of the loan impairment including testing of relevant data quality, and review of the real data entered.
	allowance (ECL) for financial assets measured at	Recoveries in the loan assets are verified to ascertain
	amortized cost requires the use of complex models and	level of stress thereon and impact on impairment
	significant assumptions about future economic	allowance in financial statements.
	conditions and credit behaviour (e.g., likelihood of customers defaulting and resulting losses).	Verification / review of the documentation, operations / performance, valuation of available securities and
	The Company makes significant judgments while	monitoring of the loan assets, especially large and
	assessing ECL and the assumptions underlying the ECL are	stressed loan assets, to ascertain any overdue,
	monitored and reviewed on an on-going basis.	unsatisfactory conduct or weakness in any loan asset
	The proper application of such assumptions is material for	account.
	statement of the Loan Assets. In view of the materiality of	The company avails services of third party for evaluation
	the amount of loan assets in the Financial Statements, the	of ECL Components and such party was changed during
	loss due to impairment of loan assets has been considered	the year . The calculations in the study for impairment
	as Key Audit Matter in our audit.	allowance carried out by third party are relied upon by us and test checks are carried out for the same. The data shared with the third party is verified by us for correctness of material components being submitted. Our audit procedure in the same are limited in view of not sharing certain parameters and software used for study of such data being considered confidential by such third party.
		We also compared ECL with the provisioning as required by the applicable directions of the Reserve Bank of India and ensured adequacy of impairment allowance accordingly.

Sr. No.	Key Audit Matters	Auditor''s Response
2.	Fair valuation of Derivative Financial Instruments (Refer Note No. 38 (28) to the Financial Statement read with accounting policy No. 3(xx). To mitigate the Company''s exposure to foreign currency risk and interest rate, non-Rupee cash flows are monitored and derivative contracts are entered for hedging purpose. The derivatives are measured at fair value as per Ind AS 109. To qualify for hedge accounting, the hedging relationship must meet certain specified requirements as per Ind AS. Hedge accounting results in significant impact on financial statements together with complexity of its accounting/assumptions and numerous parameters therein for establishing hedge relationship. Gain/Loss on these derivatives is recognised in other comprehensive income or profit and loss as provided by Ind AS. The magnitude of such transactions is significant as per the operations of the company. In view of facts of the matter we have identified it as a key audit matter.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for derivatives include the following: Discussing and understanding management''s perception and studying policy of the company for risk management. Verification of fair value of derivative in terms of Ind AS 109, testing the accuracy and completeness of derivative transactions. Evaluation of management''s key internal controls over classification, valuation, and valuation models of derivative instruments. Obtained details of various financial derivatives contracts as outstanding/pending for settlement as on 31st March, 2024. Verification of underlying assumptions in estimating the fair valuation arrived at for those financial derivative contracts. Appropriateness of the valuation methodologies applied and testing the same on sample basis for the derivative instruments. Additionally, we verified the accounting of gain/loss on derivatives in the other comprehensive income or Profit & Loss Account. Reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 109.
3.	Liability for Taxation including Income Tax Refer note 38 (17 a) The company has material uncertain tax demands in respect of matters under dispute which involves significant judgement to determine the possible outcome of these disputes. During the year, Hon''ble High Court of Delhi decided the Writ Petitions relating to income tax cases for Financial Year (FY) 1997-1998 to FY 2008-2009 and for FY 2009-10 to 2017-18 ( except FY 2013-14) appeals orders were passed by the CIT(Appeals). Orders were received for other Financial years also. Appropriate provision and disclosure of consequential liabilities is material to the presentation of financial statements.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for Liability for Income Tax include the following: Our audit procedure includes review of various orders passed by Hon''ble High Court and CIT ( Appeals) / Assessing Officer on the subject matter in dispute with Department of Income Tax. We undertook procedure to evaluate management position on these uncertain tax positions. For other tax matters, the facts and the legal pronouncements were analyzed and reviewed.

Sr. No.	Key Audit Matters	Auditor''s Response
	Service Tax and Goods & Service Tax (GST) Authorities	We reviewed the appropriateness and adequacy of
	have also raised certain issues and raised demands for	disclosures by the management as required in terms of Ind
	several past periods, which are being contested. Possible	AS 37 "Provisions, Contingent Liabilities and Contingent
	outcome of these demands is substantial.	Assets " as well as Ind AS 12 "Income Taxes”
	In view of this we have identified it as a key audit matter.

Information Other than the Ind AS Financial Statements and Auditor''s Report thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Board''s Report including Annexures to Directors'' Report, Management Discussion and Analysis Report, but does not include the financial statements and our auditors'' report thereon. The other information as stated above is expected to be made available to us after the date of this auditors'' report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available, and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. When we read the other information as stated above and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe necessary actions required as per applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the state of affairs (financial position), Profit or Loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for

preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors of the company is responsible for assessing the company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the

financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,

and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal financial control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Reports on other legal and regulatory requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (''the Order''), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure-A”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to extent applicable and in terms of subsection (5) of section 143 of the Act, we give in the "Annexure-B” information in respect of the directions issued by Comptroller and Auditor-General of India in respect of the company .

2. As required by section 143(3) of the act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

c) The balance sheet, the Statement of Profit & Loss including Other Comprehensive Income, Statement of Changes in Equity and the statement of Cash Flows dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) In terms of Notification no. G.S.R. 463 (E) dated 5^th June 2015 issued by the Ministry of Corporate Affairs, provisions of Section 164(2) of the Act regarding disqualifications of the Directors, are not applicable as it is a government Company;

f) As per notification number G.S.R. 463 (E) dated 5^th June, 2015 issued by Ministry of Corporate Affairs, section 197 of the Act as regards the managerial remuneration is not applicable to the Company, since it is a Government Company.

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

h) With respect to the other matters to be included in the Auditor''s report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 ( ''Audit Rules'') , in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 38 (17) to Financial Statements.

ii. The Company has made due provision as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts: - Refer note 38(20)(C)(II)(c) to the financial statements.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented (Refer note

38(26)) that to the best of its knowledge and belief , no funds have been advanced or loaned or invested ( either from borrowed funds or share premium or any other sources or kind of funds ) by the company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented (( Refer note 38(26)) that to the best of its knowledge and belief , no funds have been received by the company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedure performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (a) and (b) contain any material mis-statement.

v. No dividend has been declared or paid during the year by the company.

vi. Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account for the financial year

st

ended 31 March 2024, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with and the management has represented that the audit trail feature cannot be disabled. As proviso to Rule 3(1) of the Companies ( Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules,2014 on preservation of Audit trail as per the statutory requirements for records retention is not applicable

st

for the Financial Year ended 31 March 2024.

For DSP & ASSOCIATES

Chartered Accountants

Firm''s Registration Number: 006791N

Sd/-

(Atul Jain )

Partner

Membership No. 091431

Date: 19^th April 2024

Place: New Delhi

UDIN: 24091431BKFKGN1586

---

Mar 31, 2023

Indian Renewable Energy Development Agency Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of Indian Renewable Energy Development Agency Limited (“the Company”),which comprise the Balance Sheet as at March 31,2023, and the Statement of Profit and Loss (including Other Comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes to the Financial Statements, including a summary of significant accounting policies and Other Explanatory information prepared in accordance with the requirement of ‘the Companies Act 2013 ( as amended) ( the Act) (hereinafter referred to as “Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and profit and the total comprehensive income changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the

Standards on Auditing (SAs) specified under section 143(10) of the Act (“SAs”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Companies Act, 2013 (the Act) and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on Financial Statements.

Emphasis of Matter

1. As described in Note 38 (42) to the Financial Statements, the company has classified certain accounts required to be classified as stage III /Non-Performing Assets (NPA) as stage II / Standard aggregating to Rs. 89312.93 Lacs in terms of interim order of Hon’ble High Court of Andhra Pradesh. The statutory disclosures have been made accordingly. However, as a matter of prudence, interest income on such accounts becoming NPA in terms of prudential norms of Reserve Bank of India (“RBI”) has been recognized on collection basis and allowance for impairment loss has been made in accounts accordingly.

2. As described in Note 38 (40) to the Financial Statements, the company has considered possible effects from COVID-19 pandemic on Company’s financial performance including the recoverability of carrying amounts of financial and non- financial assets.

Our opinion is not modified in respect of above matters. Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have considered the matters described below to be the Key Audit Matters for incorporation in our Report.

Sr. No.	Key Audit Matters	Auditor’s Response
1.	Impairment of Loan Assets - Expected Credit loss Refer Note no. 38 (37 (A) (a) (ii)) to the Financial Statements read with accounting policy No.5(ii)- ‘Financial Instruments’) Financing is principal business of the Company and disclosure of Loan assets at fair value considering the provision for loss due to impairment is most significant. The Company follows a Board approved methodology wherein assessment for allowance is carried out by an external agency for impairment based on certain criterion / framework classifying the assets into various stages depending upon credit risk and level of evidence of impairment. The measurement of an expected credit loss allowance (ECL) for financial assets measured at amortized cost requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g., likelihood of customers defaulting and resulting losses). The Company makes significant judgments while assessing ECL and the assumptions underlying the ECL are monitored and reviewed on an on-going basis. The proper application of such assumptions is material for statement of the Loan Assets. In view of the significance of the amount of loan assets in the Financial Statements, the loss due to impairment of loan assets has been considered as Key Audit Matter in our audit.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for Impairment of Loan Assets - Expected Credit loss include the following: We have obtained an understanding of the guidelines as specified in Ind AS 109 “Financial Instruments”, various regulatory updates, guidance of ICAI and internal instructions and procedures of the Company in respect of the ECL and adopted the following audit procedures: Evaluation and testing of the key internal control mechanisms with respect to the loan assets monitoring, assessment of the loan impairment including testing of relevant data quality, and review of the real data entered. Recoveries in the loan assets are verified to ascertain level of stress thereon and impact on impairment allowance in financial statements. Verification / review of the documentation, operations / performance, valuation of available securities and monitoring of the loan assets, especially large and stressed loan assets, to ascertain any overdue, unsatisfactory conduct or weakness in any loan asset account. The company avails services of third party for evaluation of ECL Components. The calculations in the study for impairment allowance carried out by third party are relied upon by us and test checks are carried out for the same. The data shared with the third party is verified by us for correctness of material components being submitted. Our audit procedure in the same are limited in view of not sharing certain parameters and software used for study of such data being considered confidential by such third party.

		We also compared ECL with the provisioning as required by the applicable directions of the Reserve Bank of India and ensured adequacy of impairment allowance accordingly.
2.	Fair valuation of Derivative Financial Instruments (Refer Note No. 38 (36) to the Financial Statement read with accounting policy No. 5 (ii). To mitigate the Company’s exposure to foreign currency risk and interest rate, non-Rupee cash flows are monitored and derivative contracts are entered for hedging purpose. The derivatives are measured at fair value as per Ind AS 109. To qualify for hedge accounting. The hedging relationship must meet certain specified requirements as per Ind As. Hedge accounting results in significant impact on financial statements together with complexity of its accounting/assumptions and numerous parameters therein for establishing hedge relationship. Gain/Loss on these derivatives is recognised in other comprehensive income or profit and loss as provided by Ind AS. The magnitude of such transactions is significant as per the operation of the company. In view of facts of the matter we have identified it as a key audit matter.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for derivatives include the following: Discussing and understanding management’s perception and studying policy of the company for risk management. Verification of fair value of derivative in terms of Ind AS 109, testing the accuracy and completeness of derivative transactions. Evaluation of management’s key internal controls over classification, valuation, and valuation models of derivative instruments. Obtained details of various financial derivatives contracts as outstanding/pending for settlement as on 31st March, 2023. Verification of underlying assumptions in estimating the fair valuation arrived at for those financial derivative contracts. Appropriateness of the valuation methodologies applied and testing the same on sample basis for the derivative instruments. Additionally, we verified the accounting of gain/loss on derivatives in the other comprehensive income or Profit & Loss Account. Reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 109.
3.	Liability for Taxation including Income Tax Refer note 38 (3 a) The company has material uncertain tax demands in respect of matters under dispute which involves significant judgement to determine the possible outcome of these disputes. The income tax cases for Financial Year (FY) 1997-1998 to FY 2008-2009 were referred back on direction of Hon’ble High Court / ITAT and	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for Liability for Income Tax include the following: Our audit procedure includes review of various orders passed by Hon’ble High Court and Hon’ble ITAT on the subject matter in dispute with Department of Income Tax. We undertook procedure to evaluate management position on these uncertain tax positions.

	for FY 2009-10 to 2017-18 are pending with Appellate authorities. For FY 2020-21& 202122 substantial demands have been made by way of additions which are apparent mistakes and are yet to be rectified. Appropriate provision and disclosure of such liabilities is material to the presentation of financial statements. Service Tax and Goods & Service Tax (GST) Authorities have also raised certain issues and recently raised demands for several past periods, which are being contested. Possible outcome of these demands is substantial. In view of this we have identified it as a key audit matter.	For other tax matters, the facts and the legal pronouncements were analyzed and reviewed. We reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets “
4.	Accounting of Grants and subsidies for Renewable Energy The company is being engaged by the Indian Government and other organizations as well as International Agencies for implementing and monitoring various programs in the field of renewable energy. This involves accounting of such transactions separately from regular business transactions, Revenue Recognition and evaluation of tax implication under Indian Tax laws. The frequency and quantum of such transactions is increasing in view of which, we have identified it as Key Audit Matter.	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for grants and subsidies include the following: Understanding the terms of reference for various such programs and their implications in accounting. Analysing the tax implications and accounting in terms of Ind AS 20- Accounting for Government Grant and Disclosure of Government Assistance

Information Other than the Ind AS Financial Statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Board’s Report including Annexures to Directors’ Report, Management Discussion and Analysis Report, but does not include the financial statements and our auditors’ report thereon. The other information as stated above is expected to be made available to us after the date of this auditors’ report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available, and, in doing so, consider whether the other information is

materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. When we read the other information as stated above and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe necessary actions required as per applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the state of affairs (financial position), Profit or Loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in

India, including the Indian accounting Standards specified under section 133 ofthe Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standard on Auditing (SAs) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Reports on other legal and regulatory requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (‘the Order’), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the “Annexure-A”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to extent applicable and in terms of sub-section (5) of section 143 of the Act, we give in the “Annexure-B” information in respect of the directions issued by Comptroller and Auditor-General of India in respect of the company.

2. As required by section 143(3) of the act, we report

that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

c) The balance sheet, the Statement of Profit & Loss including Other Comprehensive Income, Statement of Change in Equity and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the accounting standards specified under section 133 of the

Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) In terms of Notification no. G.S.R. 463 (E) dated 05th June 2015 issued by the Ministry of Corporate Affairs, provisions of Section 164(2) of the Act regarding disqualifications of the Directors, are not applicable as it is a government Company;

f) As per notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 197 of the Act as regards the managerial remuneration is not applicable to the Company, since it is a Government Company.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure-C”.

h) With respect to the other matters to be included in the Auditor’s report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 ( ‘Audit Rules’) , in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 38 (3) to Financial Statements.

ii. The Company has made due provision as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts: - Refer note 38(37)(C) (II) (c) to the financial statements.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented (Refer

note 38(53)) that to the best of its knowledge and belief , no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of

funds ) by the company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented (Refer note 38(53)) that to the best of its knowledge and belief , no funds have been received by the company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedure performed that have been considered reasonable and

appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (a) and (b) contain any material mis-statement.

v. No dividend has been declared or paid during the year by the company.

vi. During the year, the company was not required to use a software for maintaining books of accounts having feature of recording Audit Trail (edit log) in terms of Companies (Accounts) Rules 2014 (as amended), in view of this we are unable to report on the same under clause 11(g) of Audit Rules.

For DSP & ASSOCIATES

Chartered Accountants

Firm’s Registration Number: 006791N

Sd/-

CA SANJAY JAIN

(Partner)

Membership No 084906

Place: New Delhi

Date: 25^th April 2023

UDIN: 23084906BGWRRB6185

---

Mar 31, 2010

We have audited the attached Balance Sheet of Indian Renewable Energy Development Agency Limited, as at 31st March, 2010, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, the evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003 read with the Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

Further to our comments in the annexure referred to above, we report that:-

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account, as required by law have been kept by the Company so far, as appears from our examination of the books;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement referred to in this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act,1956 in so far as these are applicable to the Company;

e) The provision of Section 274(1) (g) of the Companies Act, 1956 are not applicable to the Company in view of the Notification no. GSR 829 (e) dated 21/10/2003 issued by Government of India;

f) The Company is carrying a provision of Rs.6.98 crores in respect of Standard Assets and Provision for Bad and doubtful debts of Rs.284.64 crores in respect of Sub-standard, Doubtful, and Loss Assets in its books of account which exceeds the provision that the company is required to make in accordance with the prudential norms framed by the Board by an amount of Rs.149.30 crores. The excess amount of provision has not been shown as ''Reserve'' as required by Part III of Schedule VI to the Companies Act, 1956. Had the said amount been shown as a ''Reserve'' as against the amount being presently shown as a ''Provision'', the figure of Reserves and Surplus would have been Rs.570.26 crores as against the reported figure of Rs.420.96 crores, the figure of provision for standard assets and bad and doubtful debts would have been Rs.142.32 crores as against the reported figure of Rs.291.62 crores.

Subject to the above, in our opinion and to the best of our information and according to explanations given to us, the said accounts, read together with the Significant Accounting Policies and Notes on Accounts (As per Schedule - P) give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. In the case of the Balance Sheet, of the state of affairs of Company as at 31st March, 2010;

b. In the case of the Profit and Loss Account, of the profit for the year ended on that date; and

c. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure referred in paragraph 3 of our report to the members of Indian Renewable Energy Development Agency Limited, on accounts for the financial year ended 31st March 2010.

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed.

c) According to the information and explanations given to us, the Company has not disposed off substantial part of its fixed assets during the year.

ii) Provisions of Paragraph 4(ii) (a) to 4(ii) (c) of the Order are not applicable to the Company.

iii) a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to any companies, firms or parties covered in the register maintained under Section 301 of the Companies Act,1956.

b) As the Company has not granted any loans, secured or unsecured, to any companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956, the provisions of Paragraph 4 (iii) (b), (iii) (c) and (iii) (d) of the Order are not applicable to the Company.

c) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured, from any companies, firms or parties covered in the register maintained under Section 301 of the Companies Act, 1956.

d) As the Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956, the provisions of Paragraph 4 (iii) (f) and (iii) (g) of the Order are not applicable to the Company.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for purchase of fixed assets and for rendering of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system. Further, the provisions of Paragraph 4 (iv) with respect to sale of goods and purchase of inventory are not applicable to the Company.

v) a) According to the information and explanations given to us, there are no particulars of contracts or arrangement during the year which are required to be entered in the register maintained pursuant to Section 301 of the Companies Act, 1956.

b) Paragraph 4 (v) (b) of the Order is not applicable, as there are no such transactions during the year.

vi) According to the information and explanations given to us the Company has not accepted any deposits from the public. Therefore, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and relevant rules framed there under are not applicable to the Company.

vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.

viii) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956.

ix) a) The company is generally regular in depositing all undisputed statutory dues including Provident Fund, Income Tax, Service tax and other statutory dues with appropriate authorities. We are informed that the provisions of Investor Education and Protection Fund, Employees'' State Insurance, Sales Tax, Wealth Tax, Customs Duty, Excise Duty and Cess are not applicable to the Company.

b) According to records of the Company, the disputed statutory dues aggregating to Rs.2431 lakhs have not been deposited and the matter is being contested before the Appellate Authorities. The status of theLi pending matters is stated below:

Name of statute Nature of Dues Amount Period to Forum where dispute (Rs. in which it is pending Lakhs) relates

The Income-Tax Additional Demand on 517 Assessment Income Tax Appellate Act, 1961 account of dis allowances by Year 2004-05 Tribunal the Ld. Assessing Officer

The Income-Tax Additional Demand on 661 Assessment Commissioner of Act, 1961 account of dis allowances by Year 2005-06 Income-Tax (Appeals) the Ld. Assessing Officer

The Income-Tax Additional Demand on 1253 Assessment Commissioner of Act, 1961 account of dis allowances by Year 2007-08 Income-Tax (Appeals) the Ld. Assessing Officer

2431

According to the information and explanations given to us, there are no disputed statutory dues pending in respect of sales tax, service tax, custom duty, wealth tax, excise duty and cess.

x) In our opinion, the Company does not have accumulated losses and has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders.

xii) In our opinion, adequate documents and records are maintained in cases where the Company has granted loans and advances on the basis of security by way of pledge and other securities.

xiii) The Company is not a chit fund Company or nidhi /mutual benefit fund/society. Therefore, the provisions of Paragraph 4 (xiii), First part and Second part; sub clauses (a) to (d) of the said Order are not applicable to the Company.

xiv) The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore the provisions of paragraph 4(xiv) of the said Order are not applicable to the Company.

xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) According to the information and explanations given to us and on the basis of the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we report that the term loans raised have been utilized for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investments by the Company.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year to parties and Companies covered in register maintained under Section 301 of the Companies Act,1956.

xix) According to the information and explanations given to us the Company has issued tax free bonds and taxable bonds in the nature of debentures which are secured by negative lien on the assets of the Company. This is as per the agreement entered with the Trustees.

xx) According to the information and explanations given to us, the Company has not raised any money by public issue during the year. Therefore, the provisions of paragraph 4 (xx) of the said Order are not applicable to the Company.

xxi) According to the information and explanations given to us, no fraud on or by the Company, has been noticed or reported during the year.

For S.C. Vasudeva & Co.

Chartered Accountants

Firm Reg. No. 000235N

(R.C. Luthra)

Place: New Delhi Partner

Date: 23.07.2010 M. No. 81052