Inox Green Energy Services Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the standalone financial statements of Inox Green
Energy Services Limited (“the Company”), which comprise the
standalone balance sheet as at March 31, 2025, the standalone
statement of Profit and Loss including Other Comprehensive
Income, the standalone statement of changes in equity and the
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.

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 Companies Act,
2013 (the “Act”) in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March
31, 2025, and its profit, total 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 (SAs) specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the Auditor''s Responsibilities
for the Audit of the 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 Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.

Emphasis of matter

1. We draw attention to Note 40 of the Standalone Financial
Statement which describes that the balance confirmation
letters as referred to in the Standard on Auditing (SA) 505
(Revised) ''External Confirmations'', were sent to balances
from banks, trade receivables/payables/advances to
vendors and other parties (other than disputed parties)
and certain party''s balances are subject to confirmation/
reconciliation. Adjustments, if any will be accounted for on

confirmation/reconciliation of the same, which in the opinion
of the management will not have a material impact.

2. We draw attention to Note 42 of the Standalone Financial
Statement regarding pending litigation matters with the
Court/Appellate Authorities.

3. We draw attention to Note 50 of the Standalone financial
statement of the company which describes that operation
& maintenance services against certain contracts do not
require any material adjustment on account of machine
availability, if any.

4. We draw attention to Note 51 of the Standalone Financial
Statements regarding invested funds in 6 SPVs.

5. We draw attention to Note 53 of the Standalone Financial
Statement which states that the Company has the policy to
recognise revenue from operations & maintenance (O&M)
over the period of the contract on a straight-line basis. Certain
O&M services are to be billed by amounting to H12,412.20 Lakh
for which services rendered. On the basis of the contractual
tenability, and progress of negotiations/discussions/arbitration/
litigations, the company''s management expects no material
adjustments in the standalone financial statements on account
of any contractual obligation and taxes & interest thereon, if any.

6. We draw attention to Note 53a of the Standalone Financial
Statements, which states that the Company has certain
disagreements with one of its customer/clients, its
associates/affiliates for certain pending projects due to
various matters i.e. - Curve Test, PLF, Grid compliances
and delays due to Covid -19 pandemic, etc. After various
discussions with the Customer/client, the company has taken
back certain un-commissioned Wind Turbine Generators
(WTG) and entered into a settlement understanding dated
6^th May 2024 to settle all outstanding recoverable balances
and other related matters.

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 the most significance in our audit of the standalone financial
statements of 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.

The Key Audit Matters	How our audit addressed the key audit matter
Litigation Matters
The Company has certain significant pending legal proceedings	•	Assessed the management''s position through discussions
with Judicial/Quasi-Judicial for various complex matters with		with the in-house legal expert and external legal opinions
contractor/transporter, customer and other parties, continuing		obtained by the Company (where considered necessary) on
from earlier years.		both, the probability of success in the aforesaid cases, and the
Further, the company has material uncertain tax positions including		magnitude of any potential loss.
matters under dispute which involve significant judgment to	•	Discussed with the management on the development of these
determine the possible outcome of these disputes.		litigations during the year ended March 31, 2025.
Refer to Note 42 of the Standalone Financial Statements.	•	Rolled out enquiries to the management of the Company and
Due to the complexity involved in these litigation matters, management''s judgement regarding the recognition and		noted the responses received and assessed the same.
measurement of provisions for these legal proceedings is inherently	•	Assessed the objectivity, independence and competence of
uncertain and might change over time as the outcomes of the legal		the Company''s legal counsel (where applicable) involved in the
cases are determined. Accordingly, it has been considered as a key		process and legal experts engaged by the company, if any.
audit matter.	•	Reviewed the disclosures made by the Company in the standalone financial statements in this regard and emphasized the matter in para 2 of our report.
Revenue Recognition
In the Company''s standalone financial statements revenues	•	As part of our audit, we evaluated the appropriateness and
amounting to H20,199.51 Lakhs are reported. Revenues are mainly		effectiveness of the adopted processes and controls of the
attributable to the operation and maintenance services in respect		relevant internal control system over revenue recognition
to wind turbine generators (WTGs).		throughout the financial year.
The timing of revenue recognition from service contracts is	•	We have also assessed the accounting methodology and
recognized over the period of the contract, on a straight-line basis		estimates of the management, especially in relation to the
w.e.f. the signing of the contracts (recognition over time).		timing of revenue recognition. In this context, we have also
Revenue recognition in accordance with Ind AS 115 is to be		reviewed customer contracts, verified the identification of
considered complex and relies on the estimates and assumptions of		performance obligations and concluded if these are satisfied
the management. Against this background, accounting for revenue		over or at a point in time.
was of particular significance in the context of our audit.	•	We have also taken the management-certified list of all customer contracts which are effective throughout the financial year along with the list of new contracts or modifications, and cancellations and also ensure the impact and disclosure in accordance with Ind AS 115.
	•	We are able to satisfy ourselves that the established processes and internal controls are adequate and that the estimates and assumptions of the management are sufficiently documented and substantiated to ensure the appropriate accounting for revenue.
	•	The Company''s disclosures on the accounting for revenue in accordance with Ind AS 115 are contained in Note 3.3 and Note 26 in the section “Notes to the Standalone Financial Statements” and emphasized the matter in para 5 of our report.

Information Other than the 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 Business Responsibility and Sustainability Report, Management
Discussion and Analysis, Board''s Report including Annexures to
Board''s Report, Corporate Governance and Shareholder''s Information
(herein referred to as “the Reports”) but does not include the financial
statements and our auditor''s report thereon. The report is expected
to be made available to us after the date of this auditor''s report.

Our opinion on the financial statements does not cover the
other information and we will 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 in the audit, or otherwise
appears to be materially misstated.

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

The Company''s Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and fair
view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows
of the Company in accordance with the accounting principles
generally accepted in India, including the 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
implementation and maintenance of 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 statement that
gives a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the standalone 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.

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

As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism 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 an adequate internal financial controls system
in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s
report to the related disclosures in the 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 standalone
financial statements that, individually or in the aggregate,
makes it probable that the 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 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.

Report 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 Act, we give
in the “Annexure A” statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.

2. With respect to the other matters to be included in the
Auditor''s Report in accordance with the requirements of
section 197(16) of the Act, as amended:

In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.

3. As required by Section 143(3) of the Act, we report that:

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

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

(c) The Balance Sheet, the Statement of Profit and Loss
(including the other comprehensive income), the
Statement of Changes in equity and the Cash Flow
Statement dealt with by this Report are in agreement
with the books of the account.

(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.

(e) On the basis of the written representations received
from the directors as on March 31, 2025 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31, 2025 from being appointed
as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial
controls over the financial reporting of the Company
and the operating effectiveness of such controls, refer
to our separate Report in “Annexure B”.

(g) 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, in
our opinion and to the best of our information and
according to the explanations given to us:

i. The Company does not have any pending
litigations which would impact its financial position
other than those disclosed in the Standalone
Financial Statements (Refer to Note 42 of the
Standalone Financial Statements).

ii. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.

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

iv. (a) The management has represented that, to the

best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds (which are material either individually
or in aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other sources
or kind of funds) by the company to or in
any other person(s) or entity (ies), including
foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, 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, that, to
the best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds (which are material either individually
or in aggregate) have been received by the
company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”),
with the understanding, whether recorded in
writing or otherwise, that the company shall,
whether, 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 the audit procedures 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 (i) and (ii) of Rule 11(e) contain any
material misstatement.

v. There is no dividend declared or paid during the
year by the company.

vi. Based on our examination, which included test
checks, the Company has used accounting
software to maintain its books of account. This
software has a feature that records audit trail (edit
log) facility, which has been operated throughout
the year for all relevant transactions recorded in
the respective software.

However, the feature of recording audit trail (Audit
Log) Facility was not enabled at the transaction
level and database layer to log any direct data
changes for all software other than the accounting
software used for financial information.

For the periods where the audit trail facility was
enabled and operated throughout the year for the
accounting software, we did not find any instances
of tampering with the audit trail feature. The audit
trail has been preserved by the Company as per
the statutory requirements for record retention.

For Dewan P N Chopra & Co
Chartered Accountants

Firm Regn. No. 000472N

Sandeep Dahiya
Partner

Membership No. 505371
UDIN: 25505371BMHZFJ3538

Date: May 30, 2025
Place: Noida

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Mar 31, 2024

Inox Green Energy Services Limited

(Formerly known as Inox Wind Infrastructure Services Limited)

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Inox Green Energy Services Limited (“the Company”), which comprise the balance sheet as at March 31, 2024, the statement of Profit and Loss including Other Comprehensive Income, the statement of changes in equity and the 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.

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 Companies Act, 2013 (the “Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its profit, total 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 (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the 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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Emphasis of matter

1. We draw attention to Note 40 of the standalone financial statement which describes that the balance confirmation letters as referred to in the Standard on Auditing (SA) 505 (Revised) ''External Confirmations'', were sent to balances from banks, trade receivables/payables/advances to vendors and other parties (other than disputed parties) and certain party''s balances are subject to confirmation/ reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

2. We draw attention to Note 50 of the Standalone financial statement of the company which describes that operation & maintenance services against certain contracts do not require any material adjustment on account of machine availability, if any.

3. We draw attention to Note 51 to Standalone financial statement regarding the Company incorporated 6 wholly-owned subsidiaries (hereafter referred to as SPVs), through a request for selection (Rfs) process under the Solar Energy Corporation of India (SECI) to set up wind farm projects. The company invested funds in the SPVs through Inter-Corporate deposits for project execution, amounting to H 1,003.57 Lakh, and also provided bank guarantees of H 5,578.20 Lakh. The management believes that once the projects are commissioned and subject to pending regulatory matters and operational performance improvement, the company will be able to recover the funds from the SPVs and release the bank guarantees. However, as at March 31, 2024, the SPVs'' project completion date had expired and applications for extensions are pending with regulators. In the annual general meeting held on September 29, 2023 & September 29, 2023 of the Company and holding company respectively approves that if the group is unable to recover the funds provided as Inter-Corporate deposits and Bank Guarantee from the SPVs, the holding company will bear the costs.

4. We draw attention to Note 52 to the Standalone financial statement regarding the company that During the year, Inox

Wind Limited (the holding company) as decided vide Board of

Directors resolution dated February 10, 2023 and as approved by shareholders in an annual general meeting held on September 29, 2023 being related party transactions, has borne the losses of investment in subsidiary amounting to H2,591.40 Lakh.

5. We draw attention to Note 54 of the Standalone financial statement regarding pending litigation matters with Court/ Appellate Authorities. Due to the significance of the balance to the financial statements as a whole and the involvement of estimates and judgement in the assessment which is being technical in nature, the management is of the opinion that the company will succeed in the appeal and there will not be any material impact on the statements on account of probable liability vis-a-vis the provisions already created in the books.

6. We draw attention to Note 55 of the Standalone financials Statement which states that the Company has the policy to recognize revenue from operations & maintenance (O&M) over the period of the contract on a straight-line basis. Certain O&M services are to be billed by amounting to H12,379.38 Lakh for which services have been rendered. On the basis of the contractual tenability, and progress of negotiations/

discussions/arbitration/litigations, the company''s management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes & interest thereon, if any.

7. We draw attention to Note 62 of the Standalone financial statement of the company, which states that the company

has a system of maintenance of information and documents

as required by the Goods and Services Act ("GST Act") and "chapter-xvii" of the Income Tax Act, 1961. Due to the pending filling of certain GST/TDS/TCS returns, the necessary reconciliation related to statutory balances is pending to determine whether all transactions have been duly recorded/ reported with the statutory authorities. Adjustments, if any,

arising while filing the GST/TDS Return shall be accounted for as and when the return is filed for the current financial year. However, the management is of the opinion that the aforesaid return filing will not have any material impact on the financial statements.

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 the most significance in our audit of the standalone financial statements of 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.

The Key Audit Matters	How our audit addressed the key audit matter
Litigation Matters
The Company has certain significant pending legal proceedings with	•	Assessed the management’s position through discussions
Judicial/Quasi-Judicial for various complex matters with contractor/		with the in-house legal expert and external legal opinions
transporter, customer and other parties, continuing from earlier years.		obtained by the Company (where considered necessary) on
Further, the company has material uncertain tax positions including matters under dispute which involve significant judgment to		both, the probability of success in the aforesaid cases, and the magnitude of any potential loss.
determine the possible outcome of these disputes.	•	Discussed with the management on the development of
Refer to Note 42 of the Standalone Financial Statements.		these litigations during the year ended March 31, 2024.
Due to the complexity involved in these litigation matters, management’s judgement regarding the recognition and	•	Rolled out enquiries to the management of the Company and noted the responses received and assessed the same.
measurement of provisions for these legal proceedings is inherently	•	Assessed the objectivity, independence and competence of
uncertain and might change over time as the outcomes of the legal		the Company’s legal counsel (where applicable) involved in
cases are determined. Accordingly, it has been considered as a key		the process and legal experts engaged by the company, if any.
audit matter.	•	Reviewed the disclosures made by the Company in the standalone financial statements in this regard and emphasized the matter in para 2 of our report.
Revenue Recognition
In the Company’s standalone financial statements revenues	•	As part of our audit, we evaluated the appropriateness and
amounting to H20,199.51 Lakhs are reported. Revenues are mainly		effectiveness of the adopted processes and controls of the
attributable to the operation and maintenance services in respect to		relevant internal control system over revenue recognition
wind turbine generators (WTGs).		throughout the financial year.
The timing of revenue recognition from service contracts is	•	We have also assessed the accounting methodology and
recognized over the period of the contract, on a straight-line basis		estimates of the management, especially in relation to the
w.e.f. the signing of the contracts (recognition over time).		timing of revenue recognition. In this context, we have also
Revenue recognition in accordance with Ind AS 115 is to be considered complex and relies on the estimates and assumptions of the management. Against this background, accounting for revenue		reviewed customer contracts, verified the identification of performance obligations and concluded if these are satisfied over or at a point in time.
was of particular significance in the context of our audit.	•	We have also taken the management-certified list of all customer contracts which are effective throughout the financial year along with the list of new contracts or modifications, and cancellations and also ensure the impact and disclosure in accordance with Ind AS 115.
	•	We are able to satisfy ourselves that the established processes and internal controls are adequate and that the estimates and assumptions of the management are sufficiently documented and substantiated to ensure the appropriate accounting for revenue.
	•	The Company’s disclosures on the accounting for revenue in accordance with Ind AS 115 are contained in Note 3.3 and Note 26 in the section “Notes to the Standalone Financial Statements” and emphasized the matter in para 4 of our report.

Information Other than the 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 Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information (herein referred to as “the Reports”) but does not include the financial statements and our auditor''s report thereon. The report is expected to be made available to us after the date of this auditor''s report.

Our opinion on the financial statements does not cover the other information and we will 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 in the audit, or otherwise appears to be materially misstated.

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

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the 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 implementation and maintenance of 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 statement that gives a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone 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.

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

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism 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 an adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the 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 standalone financial statements that, individually or in the aggregate, makes it probable that the 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 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.

Report 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 Act, we give in the “Annexure A” statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

3. As required by Section 143(3) of the Act, we report that:

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

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

(c) The Balance Sheet, the Statement of Profit and Loss (including the other comprehensive income), the Statement of Changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of the account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over the financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

(g) 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, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position other than those disclosed in the Standalone Financial Statements (Refer to Note 42 of the Standalone Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

iv. (a) The management has represented that,

to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds (which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity (ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds (which are material either individually or in aggregate) have been received by the company from any person(s) or entity(ies), including foreign entities (“Funding Parties”),

with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 the audit procedures 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 (i) and (ii) of Rule 11(e) contain any material misstatement.

v. There is no dividend declared or paid during the year by the company.

vi. Based on our examination which included test checks, except for the instances mentioned below, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software:

(1) Based on the examination, the feature of the recording audit trail (Audit Log) Facility was not enabled at the transaction level and database layer to log any direct data changes for all the software other than accounting software used for maintaining the financial information.

(2) Based on the examination, in the absence of coverage of audit trail (edit log) with respect to database level in the independent auditor''s report in relation to controls at the service organization for payroll processing, which is operated by third-party software service provider, we are unable to comment whether the audit trail feature of the database level of the said software was enabled and operated throughout the year for all relevant transactions recorded in the software.

Further, for the periods where the audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting software, we did not come across any instance of the audit trail feature being tampered with. Section 128(5) of the Act requires books of account to be preserved for a minimum period of 8 years and hence the Company would need to retain an audit trail for a minimum period of 8 years. This would be relevant from the 2 year i.e. FY 2024-2025.

For Dewan P. N. Chopra & Co.

Chartered Accountants

Firm Regn. No. 000472N

Sandeep Dahiya

Partner

Membership No. 505371 UDIN: 24505371BKAPKI6113

Date: May 03, 2024 Place: Noida

---

Mar 31, 2023

Independent Auditor’s Report

Report on the Audit of the Standalone Financial
Statements

Opinion

We have audited the standalone financial statements of Inox
Green Energy Services Limited (“the Company”), which comprise
the balance sheet as at March 31, 2023, the statement of Profit
and Loss including Other Comprehensive Income, the statement
of changes in equity and the 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.

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 Companies Act,
2013 (the “Act”) in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2023, and its loss, total 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 (SAs) specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in 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 Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the standalone financial statements.

Emphasis of matter

1. We draw attention to Note 40 of the standalone financial
statement which describes that the balance confirmation
letters as referred to in the Standard on Auditing (SA) 505
(Revised) ''External Confirmations'', were sent to balances
from banks, trade receivables/payables/advances to
vendors and other parties (other than disputed parties)
and certain party''s balances are subject to confirmation/
reconciliation. Adjustments, if any will be accounted for on
confirmation/reconciliation of the same, which in the opinion
of the management will not have a material impact.

2. We draw attention to Note 48 of the standalone financial
statement which states that the Company has the policy to
recognize revenue from operations & maintenance (O&M)
over the period of the contract on a straight-line basis. Certain
O&M services are to be billed for which services have been
rendered. On the basis of the contractual tenability, and
progress of negotiations/discussions/arbitration/litigations,
the company''s management expects no material adjustments
in the standalone financial statements on account of any
contractual obligation and taxes & interest thereon, if any.

3. We draw attention to Note 49 to the standalone financial
statement which describe that commissioning of WTGs and
operation & maintenance services against certain contract
does not require any material adjustment on account of
delays/machine availability, if any.

4. We draw attention to Note 50 to standalone financial
statement regarding company incorporated 6 wholly owned
subsidiaries (hereafter called as SPVs) under RfS (request
for selection) for setting up wind farm projects as awarded
by Solar Energy Corporation of India (SECI). Thereafter,
the company has invested funds in SPVs in the form of
Inter Corporate deposits for the execution of projects, The
company had invested amounting to INR 932.10 Lakh
Inter Corporate deposits respectively and given bank
guarantee amounting to Rs.5,578.20 Lakh. In the view of the
management, the Company will be able to realize the money
from SPVs and release of Bank Guarantees once the project
will commission subject to the outcome of the pending
matters with the regulators and improvement in its future
operational performance. As on March 31, 2023, the project
completion date had expired in these SPVs and applications
for extension are pending before regulators. The Board of
Directors of Inox Wind Limited (the holding company) has
decided in its meeting dated February 10, 2023, in case the
company is not able to realize the money from SPV in the
form of ICD and Bank Guarantee, the same shall be borne
by the holding company which is subject to approval from
the members of the holding company being related party
transactions.

5. We draw attention to Note 51 to the standalone financial
statement regarding the complete erosion of the net worth
of Wind Four Renergy Private Limited ("WFRPL"), a wholly
owned subsidiary in which the company has investment
amounting to Rs.2,591.40 Lakh in Equity Share Capital as on
March 31, 2023. For the reasons stated by the management
in the note, recoverability of investment is dependent on the
performance of WFRPL over the foreseeable future and
improvement in its operational performance and financial
support from the company.

6. We draw attention to Note 52 to standalone financial statement
regarding Inox Wind Limited (the holding company) has vide
Board of Directors resolution dated February 10, 2023 subject
to members approval being related party transactions,
decided to bear the losses of unrecovered ICD amounting
to Rs.1,216 Lakh and reimbursed ''bank guarantee invoked by
SECI''/liquidated damages amounting to Rs.6,816 Lakh.

7. We draw attention to Note 53 to the standalone financial
statement regarding pending litigation matters with Court/
Appellate Authorities. Due to the significance of the balance
to the financial statements as a whole and the involvement of
estimates and judgement in, the assessment, which is being
technical in nature, the management is of the opinion that the

company will succeed in the appeal and there will not be any
material impact on the statements on account of probable
liability vis-A-vis the provisions already created in the books.

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 the most significance in our audit of the
standalone financial statements of 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.

Information Other than the 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 Management Discussion and Analysis, Board''s
Report including Annexures to Board''s Report, Corporate
Governance and Shareholder''s Information (herein referred to as
“the Reports”) but does not include the financial statements and
our auditor''s report thereon. The report is expected to be made
available to us after the date of this auditor''s report.

Our opinion on the financial statements does not cover the other
information and we will 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 in the audit, or otherwise
appears to be materially misstated.

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

The Company''s Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and fair
view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows
of the Company in accordance with the accounting principles
generally accepted in India, including the 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
implementation and maintenance of 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 statement
that gives a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone 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.

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

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
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 an adequate internal financial
controls system in place and the operating effectiveness of
such controls.

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

• Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s
report to the related disclosures in the 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 standalone
financial statements that, individually or in the aggregate,
makes it probable that the 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
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.

Report 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 Act, we
give in the ‘Annexure A” statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.

2. With respect to the other matters to be included in the
Auditor''s Report in accordance with the requirements of
section 197(16) of the Act, as amended:

In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.

3. As required by Section 143(3) of the Act, we report that:

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

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

(c) The Balance Sheet, the Statement of Profit and Loss
(including the other comprehensive income), the
Statement of Changes in equity and the Cash Flow
Statement dealt with by this Report are in agreement
with the books of the account.

(e) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.

(f) On the basis of the written representations received
from the directors as on March 31, 2023 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023 from being appointed
as a director in terms of Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial
controls over the financial reporting of the Company
and the operating effectiveness of such controls, refer
to our separate Report in ‘Annexure B”.

(j) 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, in our
opinion and to the best of our information and according
to the explanations given to us:

i. The Company does not have any pending
litigations which would impact its financial position
other than disclosed in the Standalone Financial
Statements (Refer Note 42 of the Standalone
Financial Statements.

ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.

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

iv. (a) The management has represented that, to the

best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds (which are material either individually
or in aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other sources
or kind of funds) by the company to or in
any other person(s) or entity (ies), including
foreign entities (‘ Intermediaries”), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, 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, that, to the
best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds (which are material either individually
or in aggregate) have been received by the
company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”),
with the understanding, whether recorded in

writing or otherwise, that the company shall,
whether, 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 the audit procedures 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 (i) and (ii) of Rule 11(e) contain any
material misstatement.

v. There is no dividend declared or paid during the
year by the company.

vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 for maintaining books of account

using accounting software which has a feature of
recording audit trail (edit log) facility is applicable
to the Company with effect from April 1, 2023,
and accordingly, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014 is not
applicable for the financial year ended March 31,
2023.

For Dewan P. N. Chopra & Co.

Chartered Accountants
Firm Regn. No. 000472N

Sandeep Dahiya
Partner

Membership No. 505371
UDIN: 23505371BGRTXC9131

Date: May 26, 2023
Place: Noida