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Notes to Accounts of Inox Wind Ltd.

Mar 31, 2023

(b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of H 10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

(i) The CCPS shall carry a preferential right vis-a-vis equity share of H 10/- each of the Company (âEquity Sharesâ) with respect to payment of dividend and repayment in case of a winding up or repayment of capital;

(ii) The CCPS shall not be redeemable as the same are compulsorily convertible;

(iii) The CCPS shall be non-participating in the surplus funds and in surplus assets and profits, on winding-up which may remain after the entire capital has been repaid;

(iv) The CCPS shall be paid dividend on a non-cumulative basis at the rate of 0.0001%;

(v) The Equity Shares to be issued on conversion of the CCPS shall rank pari-passu in all respects including entitlement to dividend with the existing Equity Shares of the Company;

(vi) The CCPS will not have any voting rights. Only once the CCPS are converted to Equity Shares, the Equity shares will have voting rights in accordance with the provisions of the Companies Act, 2013.

On Novemeber 2, 2021, IWL Committee of the Board of Directors for operations of the Company has alloted 83,33,51,137 number of shares @ 10 each into 0.01% Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares (NCRPS) amounting to H 8333.51 lakhs at par for consideration other than cash in lieu of advance from customer, intercorporate deposit including interest.

Further, On March 9, 2022, IWL Committee of the Board of Directors for operations of the Company has proposed âto vary the terms and nature of 91,83,51,137 (Ninety-One Crore Eighty-Three Lakhs & Fifty-One Thousand One Hundred and Thirty-Seven) 0.01% Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares of the face value of H 10/- each of the Company (âNCPRPSâ) held by Inox Wind Energy Limited and Devansh Trademart LLP, âPromoter/ Promoter Group'' entities, so as to result into 91,83,51,137 (Ninety-One Crore Eighty-Three Lakhs & Fifty-One Thousand One Hundred and Thirty-Seven) 0.0001% Compulsorily Convertible Preference Shares of the face value of H 10/- each of the Company (âCCPSâ)â.

(d) Conversion of CCPS into Equity share

The Company has converted 83,33,51,137 CCPS held by promoter company i.e. Inox Wind Energy Limited) into equity shares of the Company at a price of H 126/- (Rupees One Hundred and Twenty Six only) per Equity Share (including a premium of H 116/-(Rupees One Hundred and Sixteen only) for each CCPS as per the terms and conditions of CCPS.

The Company has converted 8,50,00,000 CCPS held by Devansh Trademart LLP (Eight Crore Fifty Lakhs) into equity shares of the Company at a price of H 126/- (Rupees One Hundred and Twenty Six only) per Equity Share (including a premium of H 116/-(Rupees One Hundred and Sixteen only) for each CCPS as per the terms and conditions of CCPS.

âDuring the Financial Year company had issued share warrant to Sameena Green Ltd. - 90,90,909 nos by the resolution passed on 2505-2022 and Lend lease (India) Limited - 53,03,030 by the resolution passed on 01-06-2022. An amount equivalent to 25% of the warrant price are received at the time of subscription and allotment of each warrant (âWarrant subscription priceâ), and balance 75% of warrant issued price shall be payable by the warrant holder on exercise of the warrant.

After the allotment the warrant are converted as follows.

- Sameena Green Ltd, 89,77,153 nos was converted into equity share, out of 90,90,909 and for balance warrant of 1,13,756 nos was not opted for the conversion by the Sameena Green Ltd., So the application money of H 37,53,948/- received by the company against the allotment of share warrant was forfeited by the company and the forfeited amount was transfered to capital reserve.

- Lend lease (India) Limited, all warrant 53,03,030 are converted in to equity shares.

37 : Employee benefits:

(a) Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of H 190.40 Lakhs (previous year: H 218.68 Lakhs) is recognized as an expense and included in âContribution to provident and other fundsâ in Statement of Profit and Loss.

Contribution to employee state insurance scheme of H 3.04 Lakhs (previous year: H 0.31 Lakhs) is recognized as an expense and included in âContribution to provident and other fundsâ in Statement of Profit and Loss.

(b) Defined Benefit Plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The level of benefits provided depends on the employee''s length of service and salary at retirement age.The Company''s defined benefit plan is unfunded.

There are no other post retirement benefits provided by the Company.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^st March 2023 and 31^st March 2022 by Charan Gupta Consultants Private Limited, Fellow of the Institute of the Actuaries of India. The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

c) Investment risk-since the scheme is unfunded the Company is not exposed to investment risk.

Sensitivity Analysis

Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occuring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The average duration of the defined benefit plan obligation at the end of the reporting period is 11 years.

C. Other short term and long term employment benefits:

Annual leave & short term leave

The liability towards compensated absences (annual and short term leave) for the year ended 31^st March 2023 based on actuarial valuation carried out by using Projected accrued benefit method results increase in liability by H 15.93 lakhs (previous year : decrease in liability by H 72.15 lakhs ), which is included in the employee benefits in the Statement of Profit and Loss.

a) The Company has issue Corporate guarantee of H 16,438.69 lakhs (31^st March 2022 H 19,898.00 lakhs) given to financial institution against loan taken by Nani Virani Wind Energy Private Limited.

b) GFCL has issue guarantee and provide security is respect of borrowing by the Company. The outstanding balances of such borrowings as at 31^st March 2023 H 89557.50 lakhs and 31^st March 2022 H 86,946.67 lakhs.

c) The Company has given security of H 32,500.00 lakhs (31^st March 2022 H Nil ) given to Bank/financial institution against loan taken by Resco Global Wind Services Private Limited

Notes:

(a) Sales, purchases and service transactions with the related parties are exclusive of taxes and made at arm''s length price.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) No expense has been recognised for the year ended 31^st March 2023 and 31^st March 2022 for bad or doubtful trade receivables in respect of amounts owed by related parties.

(d) There have been no gurantees received or provided for any related party receivables or payables.

(e) Due to Corporate restructuring of Inox Green Energy Services Limited, all the EPC related assets and liabilities has been transferred to RESCO Global Wind Services Limited w.e.f. 31^st Decemeber 2021. Outstanding Balances includes the impact of asset and Liabilities transferred.

(f) Due to Corporate restructuring of Wind Four Renergy Limited, all the assets and liabilities pertain to certia project has been transferred to RESCO Global Wind Services Limited w.e.f. 31^st Decemeber 2021. Outstanding Balances includes the impact of asset and Liabilities transferred.

For the purpose of the Company''s capital management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.

The Company'' s capital management objectives are:

â¢ to ensure the Company''s ability to continue as a going concern

â¢ to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.

Investment in subsidiaries are classified as equity investments have been accounted at historical cost. Since these are scope out of Ind As 109 for the purpose of measurement, the same have not been disclosed in the table above.

The carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets.

(ii) Financial risk management

The Company''s corporate finance function provides services to the business, coordinates access to financial market, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The use of financial derivatives is governed by the Company''s policies approved by the Board of Directors of the Company, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and the investment of the excess liquidity. Compliance with policies and exposure limits is reviewed by the Company on a continuous basis. The Company does not enter into or trade financial instruments including derivative financial instruments for speculative purpose.

(iii) Market Risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

(iv) (a) Foreign Currency risk management

The Company is subject to the risk that changes in foreign currency values mainly impact the Company''s cost of imports of materials/capital goods, royalty expenses and borrowings etc.

Foreign exchange transactions are covered with in limits placed on the amount of uncovered exposure, if any, at any point in time. The aim of the Company''s approach to management of currency risk is to leave the Company with minimised residual risk.

(iv) (b) Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar and Euro.

The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes unhedged external loans, receivables and payables in currency other than the functional currency of the Company.

A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.

Interest rate risk refers to the possibility that the fair value or future cash fows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

(v) (b) Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the end of the reporting period. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended 31^st March 2023 would decrease/increase by H 84.78 Lakhs net of tax (for the year ended 31^st March 2022 decrease/ increase by H 84.44 Lakhs net of tax). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

(vi) Other price risks

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have investment in equity instruments, other than investments in subsidiary which are held for strategic rather than trading purposes. The Company does not actively trade these investments. The Company''s investment in mutual funds are in debt funds. Hence the Company''s exposure to equity price risk is minimal.

(vii) Credit risk management

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.

(a) Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. The Company supplies wind turbine equipments to customers which are installed and commissioned generally by a group company and it involves various activities such as civil work, electrical & mechanical work and commissioning activities. The payment terms with customers are fixed as per industry norms. The above activities lead to certain amounts becoming due for payment on completion of related activities and commissioning. The Company considers such amounts as due only on completion of related milestones. However, the group company has also long term operation and maintenance contract with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable as at 31^st March 2023 is H 50,859.81 lakhs (as at 31^st March 2022 is H 53,154.55 lakhs) are due from 5 major customers (4 customers as at 31^st March 2022 ) who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.

b) Loans and other receivables

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the loans given by the Company to the external parties. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.

The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

12 months ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in the Statement

of Profit and Loss under the head âOther expenses''/''other income''. c) Other financial assets

Credit risk arising from investment in debt funds, derivative financial instruments and other balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the various credit rating agencies. There are no collaterals held against such investments.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company, which has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ix) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

The tax rate used for the year ended 31^st March 2023 and 31^st March 2022 in reconciliations above is the corporate tax rate of 34.944% payable by corporate entities in India on taxable profits under the Indian tax law.

Provision for tax in the standalone financial statement for the year ended 31^st March 2023 and year ended 31^st March 2022 are only provisional in the respective years and subject to change at the time of filing of Income Tax Return based on actual addition/deduction as per provisions of Income Tax Act 1961.

42 : Contingent liabilities:

(a) Claims against the Company not acknowledged as debts: claims made by vendors - H 1,704.55 lakhs plus interest thereon if any (as at 31^st March 2022: H 3,147.04 lakhs)

Some of the suppliers have raised claims including interest on account of non payment in terms of the respective contracts. The Company has contended that the suppliers have not adhered to some of the contract terms. At present the matters are pending before the jurisdictional authorities or are under negotiations.

(b) In respect of claims made by customers for operational matters- H 3,832.74 lakhs plus interest thereon if any (as at 31^st March 2022: H 4,982.03 lakhs) (to the extent of oustanding balances). In view of the management, the company may be liable only to the extent of outstanding receivable balance from respective customers and possibility of an outflow of resources for any claims made by customers over and above of outstanding balances are remote.

(c ) Claim against the Company not acknowledged as debts from customers H 314.75 lakhs plus interest thereon if any (as at 31^st March 2022 : H 1,014.75 lakhs)

(d) Claims made by vendors in National Company Law Tribunal (NCLT) for H 4,883.61 lakhs plus interest thereon if any (as at 31^st March 2022 : H 5,875.60 lakhs)

(e) In respect of VAT matters - H 2,550.59 lakhs (as at 31^st March 2022: H 2,550.59 lakhs) plus interest thereon if any

The Company had received orders for the financial years ended 31^st March 2017 , in respect of Andhra Pradesh on account of Entry Tax and CST demand on the issue of non-deposit of Entry Tax and non-submission of Statutory Forms for H 84.25 lakhs and H 659.46 lakhs and penalty of H 84.06 lakhs respectively. The Company had obtained stay from Hon''ble High Court of Tirupati against entry tax and deposited 25% of the demand and filed appeals before the first appellate authority in the matter of CST Addition of H 659.46 Lakhs and also for stay of demand by depositing H 82.45 Lakhs.

The company had obtained VAT demand from GUJ VAT for H 1,304.88 lakhs on account of VAT Assessments due to mismatch of ITC and non-submission of Statutory forms for FY 2014-2015 and 2015-2016 and filed appeal before the joint commissioner, Ahmedabad in this matter.

The company has received VAT demand orders from Kerala VAT on account of probable suppression and omision on purchase of goods in kerala state and levied demand on the enhanced assessment in Kerala and has demand VAT of H 417.94 lakhs and the company had preferred appeal before VAT appellate authority, Kochi and appellate authroity has desposed of the appeal with direction to AO to reassess the caseâ

(f) In respect of Service/central Excise tax matter - H 3,313.83 lakhs plus interest thereon if any (as at 31^st March 2022: H 3,313.83 lakhs)

The Company has received orders for the period September 2011 to March 2016, in respect of Service Tax, levying demand of H 1,401.63 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax. The Company has received adverse order from CESTAT, Allahabad Bench.

The company has preferred an appeal before Hon''ble Bench of Allahabad High Court and the Hon''ble Bench of Allahabad High Court has stayed the proceedings subject to submission of the Security before the Assessing officer.

The Company has estimated the amount of demand which may be ultimately sustained at H 32.19 lakhs and provision for the same is made during the year and carried forward as âDisputed service tax liabilitiesâ in Note 23.

The Company has received order for the period April to March 2017, in respect of Service Tax, levying demand of H 11.19 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax in the month of March, 2021 and has preferred an appeal before Noida Commissioner of Appeals.

The company has received order from central Excise orders from MP and GUJ rejecting the concessional duty claims on steel purchased in MP and Gujrat, not treating the steel as main input material in relation to the final products and had levied demand of H 1,128.70 lakhs and H 772.31 lakhs respectively and filed appeal before the CESTAT, Delhi and Ahmedabad respectively.

(g) In respect of Income tax matters - H 4,742.51 lakhs (31^st March 2022: H 4,742.51 Lakhs) plus interest thereon if any

This includes demand for assessment year 2013-14 of H 272.64 lakhs received in the previous year by the Company, mainly on account of reduction in the amount of tax incentive claimed, against which the company has obtained favourable order from CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June 2020 against the issues on which relief has not been granted.

This includes demand for assessment year 2014-15 of H 4,096.78 lakhs (including interest) received by the Company, mainly on account of Transfer Pricing Adjustment, disallowance of deduction u/s 80IC of from sale of scrap, insurance claim, interest income and interest disallowance u/s 36(i) (iii) etc. The assessee company has filed appeal before CIT (Appeals) Palampur, which is pending for disposal.

This includes demand for assessment year 2013-14 of H 373.09 lakhs received in the current year by the Company, mainly on account of less deduction on payment made to subsidiary company u/s 194C, rather it should have been deducted u/s 194J, in the assessment order passed by the Assessing officer. The Company has preferred an appeal before CIT (Appeals) Palampur and hopeful to get favourable judgement in view of supported Judgement of Hon''ble Punjab and Haryana High Court and CBDT instructions.

(h) In respect of Labour Cess under Building and Other Construction Workers Act, 1966 - H 61.11 lakhs (as at 31^st March 2022: H 61.11 Lakhs)

The Company has received the order for the financial year ended 31^st March 2015, 31^st March 2016 in respect of Labour Cess on construction work at Relwa Khurd MP plant.

(i) Corporate Guarantee of H 16,438.69 lakhs (as at 31^st March 2022: H 19,898.00 lakhs) given to financial institution against loan taken by Subsidiary Company.

(j) In respect of custom duty of H 1,000.00 lakhs (as at 31^st March 2022: H 1,000.00 lakhs) paid to Directorate of Revenue Intelligence.

(k) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations have not been fulfilled within stipulated period H 757.01 lakhs (as at 31^st March 2022: H Nil )

In respect of above matters, no additional provision is considered necessary as the Company expects favourable outcome. Further, it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.

43 : Capital and other Commitments

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is H 3,433.06 lakhs (as at 31^st March 2022: H 3,062.85 lakhs).

b) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations are required to be fulfilled within stipulated period H 632.90 lakhs (as at 31^st March 2022: H 2,143.74 lakhs).

c) Bank guarantees issued by the Company to its customers/Government bodies for H 48,893.55 lakhs (as at 31^st March 2022 : H 46,023.16 lakhs).

(d) Corporate Guarantee of H 2,831.00 lakhs (as at 31^st March 2022: H 8,398.92 lakhs) given to Customer.

44: Balance confirmation

The balance confirmation letters as referred to in the Standard on Auditing (SA) 505 (Revised) âExternal 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.

45 : Segment information

The Company has presented segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 âOperating Segments'', no disclosures related to segments are presented in this standalone financial statements.

Two customers contributed more than 10% of the total Company''s revenue amounting to H 35,403.33 lakhs (as at 31^st March 2022: Four customers amounting to H 32,411.96 lakhs).

(b) Rights, preferences and restrictions attached to 0.01% Non Convertible, Non Cumulative, Participating, Redeemable

Preference Shares of J 10/- each:

(i) NCPRPS shall rank for dividend in priority to the Equity Share of the Company

(ii) The holder of ; NCPRPS will be entitled to receive a participatory dividen in a financial year which the Company pays dividend to its equity shareholders (Participatory) dividenv). Such participatory dividend will be payable at the same rate as the dividend paid on the equity shares;

(iii) NCPRPS shall, in case of winding up, be entitled to rank, as regards repayment of capital and dividend to the Equity Shares and shall also be entitled to participation in profit or assets or surplus funds, on the event of winding-up which may remain after the entire capital has been repaid;

(iv) Holders of NCPRPS shall be paid dividend on a non-cumulative basis;

(v) NCPRPS shall not be convertible into Equity Shares;

(vi) NCPRPS shall not carry any voting rights;

(vi) NCPRPS shall be redeemable at par at the option of either the Preference shareholder or the Company, at any time within a period not exceeding 5(five) years from the date of allotment as per the provision of the Company Act 2013.

(c) The reason of shortfall: The Company''s business experienced abrupt stoppage for around three years due to sectoral issues, related to policy (shifting from feed-in-tariff regime to reverse auction based regime) and grid related delays amongst others. The wind power sector was virtually shut down during this period. This led to mismatch of cash flows in the Company as inventories increased due to drop in sales. The limited funds available were used to complete the pending projects and to meet the day to day expenditures and therefore the Company could not allocate/spend the required CSR expenditure.

(d) The nature of CSR activities undertaken:NA (Figures in brackets pertain to previous year)

54: Inox Green Energy Services Limited (Formerly known as Inox Wind Infrastructure Services Limited) (a subsidiary of the Company) incorporated a wholly-owned subsidiary namely âWind Four Renergy Private Limitedâ (WFRPL) for setting up of wind power project as awarded by Solar Energy Corporation of India (SECI). The Company has invested H 6,123 Lakhs as at March 31, 2023 in the form of Inter Corporate Deposit for the execution of the project. Considering financial support from the company, in view of the management, the Company will be able to realise the money from WFRPL once the project will get commissioned.

55: The subsidiary Company (Inox Green Energy Services Limited) 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 subsidiary company invested funds in SPVs in the form of Inter Corporate deposits for the execution of projects. The subsidiary company had invested amounting to INR 932.10 Lakhs Inter Corporate deposits (ICD) respectively and given bank guarantee amounting to H 5,578.20 Lakhs. In the view of the management, the Company will be able to realise 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 Company''s Board of Directors has decided in its meeting dated February 10, 2023 in case the subsidiary Company is not able to realise the money from SPV in the form of ICD and Bank Guarantee, the same shall be born by the company which is subject to approval from the members of the company being related party transactions.

56: During the year, the company has written off the amount recoverable from Trade receivables as Bad Debts in Financial Statements. The company is in the process of seeking legal opinion for the applicable provisions of the Income Tax Act, 1961 and the company is confident that there will not be any material impact of the said provisions on the statement.

57: During the year, the Company vide Board of Directors resolution dated February 10, 2023 which is subject to approval from the members, decided to bear the losses of the subsidiary company (Inox Green Energy Services Limited) on account of unrecovered ICD amounting to H 1,216 Lakhs and reimbursed âbank guarantee invoked by SECI''/liquidated damages amounting to H 6,816 Lakhs.

Further, During the year, the Company decided to write off ICD amounting to H 1,850 Lakhs on account of unrecovered Investment made by IGESL in its associate i.e. Wind Five Renergy Limited on behalf of the Company.

58: The company has an investment carrying at cost in shares (Quoted/unquoted) in Inox Green Energy Services Limited (IGESL) a subsidiary company. The Company assesses the recoverable amounts of investment after the identification of impairment indicators exist by comparing the fair value (less costs of disposal) and carrying amount of the investment in the subsidiary as on the reporting date. Management obtains fair value/value-in-use of investments from independent valuation experts. Based on the report obtained by the management, management does not expect any impairment loss on the investment in the subsidiary company.

59 : There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

60: Other statutory informations:

(i) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section 560 of the Companies Act 1956 during the year ended March 31, 2023 and March 31, 2022.

(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2023 and March 31, 2022.

(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder during the year ended March 31, 2023 and March 31, 2022.

(vi) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authorities during the year ended March 31, 2023 and March 31, 2022.

(vii) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to 237 of the Companies Act 2013 during the year ended March 31, 2023 and March 31, 2022.

(viii) During the year ended March 31, 2023 and March 31, 2022, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act 1961).

(ix) Except below, During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

a. directly or indirectly land or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

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

61: The company has a system of maintenance of information and documents as required by Goods and Services Act (âGST Actâ) and âchapter-xviiâ of the Income Tax Act, 1961. Due to the pending filling of certain GST/TDS/TCS returns, the necessary reconciliation 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.

62: The Code on Social Security, 2020 (âCode'') relating to employee benefits during employment and post-employment benefits has received Presidential assent on 28^th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

Mar 31, 2021

Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of H 245.09 Lakhs (previous year: H 272.17 Lakhs) is recognized as an expense and included in "Contribution to provident and other funds" in Statement of Profit and Loss.

Defined Benefit Plans:

There are no other post retirement benefits provided by the Company.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31 March 2021 by Charan Gupta Consultants Private Limited, Fellow of the Institute of the Actuaries of India. The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

c) Investment risk-since the scheme is unfunded the Company is not exposed to investment risk.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Guarantee

a) The Company has issued Corporate guarantee of H 10,000.00 lakhs given to financial institution against loan taken by Nani Virani Wind Energy Private Limited.

b) GFCL has issued guarantee and provided security is respect of borrowings taken by the Company. The outstanding balances of such borrowings as at 31 March 2021 is H 55,694.00 lakhs

Notes:

(a) Sales, purchases and service transactions with the related parties are exclusive of taxes and made at arm''s length price.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) No expense has been recognised for the year ended 31 March 2021 and 31 March 2020 for bad or doubtful trade receivables in respect of amounts owed by related parties.

(d) There have been no gurantees received or provided for any related party receivables or payables.

For the purpose of the Company''s capital management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.

The Company'' s capital management objectives are:

â¢ to ensure the Company''s ability to continue as a going concern

â¢ to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

) Market Risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. i (a) Foreign Currency risk management

The Company is subject to the risk that changes in foreign currency values mainly impact the Company''s cost of imports of materials/capital goods, royalty expenses and borrowings etc.

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar and Euro.

(v) (a) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

Interest rate sensitivity analysis

Out of total borrowings outstanding as at the end of reporting period, floating rate liabilities are H 40,585.87 Lakhs (for the year ended 31 March 2020 : H 38,078.85 Lakhs). If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended 31 March 2021 would decrease/increase by H 132.90 Lakhs net of tax (for the year ended 31 March 2020 decrease/increase by H 123.86 Lakhs net of tax). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

(vi) Other price risks

(vii) Credit risk management

(a) Trade receivables

long term operation and maintenance contract with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable as at 31 March 2021 is H 69,383.78 lakhs (as at 31 March 2020 of H 82,136.35 lakhs) are due from 5 major customers (5 customers as at 31 March 2020 ) who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period is as follows and during the year the Company has changed the provision matrix considering the long term outstanding and credit risk.

Loans and other receivables

b) Loans and other receivables (Contd..)

ECL impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in the Statement of Profit and Loss under the head ''Other expenses''/''other income''.

c) Other financial assets

Liquidity Risk Management

41 : Contingent liabilities:

(a) Claims against the Company not acknowledged as debts: claims made by vendors - H 2,91719 lakhs (as at 31 March 2020: H 658.35 lakhs)

(b) In respect of claims made by four (previous year : four ) customers for non-commissioning of WTGs, the amount is not ascertainable.

(c) Claim against the Company not acknowledged as debts from customers H 1,000 lakhs (as at 31 March 2020 : H 4,050 lakhs)

(d) Claims made by vendors in National Company Law Tribunal (NCLT) for H 526.00 lakhs (as at 31 March 2020 : H 396.00 lakhs)

(e) In respect of VAT matters - H 1,298.80 lakhs (as at 31 March 2020: H 59.09 lakhs)

The Company had received orders for the financial years ended 31 March 2013 and 31 March 2014, in respect of Himachal Pradesh VAT, levying penalty of H 112.87 lakhs for delayed payment of VAT against which the Company had filed appeals. These appeals were remanded back to the Assessing Officer for reassessment. However, the Company has estimated the amount of penalty which may be utimately sustained at H 53.78 lakhs and provision for the same was made during the year ended 31 March 2015. After adjusting

the amount of H 23.35 lakhs paid against the demands, the balance amount of H 30.43 lakhs is carried forward as âDisputed sales tax liabilites (net of payments)â in Note 21.

Further during the FY 2020-21, the Company has filed application under Legacy Cases Resolution Scheme 2019 for settlement of pending cases for FY 2013-14 to FY 2016-17 and deposited H 496 Lakhs as a full and final settlment amount towards pending cases. The Company is hopeful that the Legacy Applications will be accepted and no further demand will arise on account of above said matters.

The Company had received demand for the financial year ended 31 March 2017, from Andhra Pradesh VAT on account of Entry Tax and CST demand on the issue of non-deposit of Entry Tax and non-submission of Statutory Forms for H 84.25 lakhs and H 659.46 lakhs respectively. The Company has obtained stay from Hon''ble High Court of Tirupati against entry tax and deposited H 21.06 lakhs as per Stay order. The Company has also filed appeal before the first appellate authority in the matter of CST demand and got stay of demand by depositing H 82.45 Lakhs.

(f) In respect of Service tax matter - H 1,380.63 lakhs (as at 31 March 2020: H 1,401.63 lakhs)

(g) In respect of Income tax matters - H 4,358.06 lakhs (31 March 2020: H 4,014.44 Lakhs)

This includes demand for assessment year 2013-14 of H 272.64 lakhs received in the current year by the Company, mainly on account of reduction in the amount of tax incentive claimed, against which the company has obtained favourable order from CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June 2020 against the issues on which relief has not been granted.

This includes demand for assessment year 2014-15 of H 3,712.33 lakhs received by the Company, mainly on account of Transfer Pricing Adjustment, disallowance of deduction u/s 80IC from sale of scrap, insurance claim, interest income and interest disallowance u/s 36(i) (iii) etc. The assessee company has filed appeal before CIT (Appeals) Palampur, which is pending for disposal.

(h) In respect of Labour Cess under Building and Other Construction Workers Act, 1966 - H 61.11 lakhs (as at 31 March 2020: H 61.11 Lakhs)

The Company has received the order for the financial year ended 31 March 2015, 31 March 2016 in respect of Labour Cess on construction work at Relwa Khurd MP plant.

41 : Contingent liabilities: (Contd..)

(i) Corporate Guarantee of H 10,000.00 lakhs given to financial institution against loan taken by Subsidiary Company.

Further, the company may be liable to pay damages/ interest for specific non- performance of contractual obligation. The actual liability on account of these may differ from the provisions already created in the books of accounts and disclosed as contingent liability.

42 : Capital and other Commitments

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is H 645.52 lakhs (as at 31 March 2020: H 1,194.59 lakhs).

b) Amount of customs duty exemption availed by the Company under EPCG Scheme amounting to H 2,651.54 lakhs (as at 31 March 2020 H 2,651.54 lakhs) for which export obligations are required to be fulfilled within stipulated period. The Company has recognised deferred grant income under EPCG scheme upto the Financial year ending 31 March 2021 amounting to H 1,789.95 lakhs (previous year H 1,465.80 lakhs) against which export obligation is yet to be fulfilled by the Company.

c) Bank guarantees issued by the Company to its customers and others for H 39,840 lakhs (as at 31 March 2020 : H 51,276 lakhs).

43 : Outbreak of COVID-19

Due to outbreak of COVID-19 globally and in India, the Company''s management has made initial assessment of impact on business and financial risks on account of COVID-19. Considering that the company is in the business of Manufacturing of Wind Turbine Generator which fall under the Renewable Energy sector being the priority sector, the management believes that the impact of this outbreak on the business and financial position of the company will not be significant as at the date of approval of these financial results. The management does not see any risks in the company''s ability to continue as a going concern and meeting its liabilities as and when they fall due. The company has used the principles of prudence in applying judgements, estimates and assumptions and based on the current estimates, the company expects to recover the carrying amount of trade receivables including unbilled receivables, advances, investments, inventories and other assets. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial statements. Due to the nature of the pandemic, the Company will continue to monitor developments to identify significant uncertainties in future periods, if any.

44 : Balance confirmation

The Company has a system of obtaining periodic confirmation of balances from banks, trade receivables/payables/advances to vendors and other parties (other than disputed parties). The balance confirmation letters as referred in the Standard on Auditing (SA) 505 (Revised) âExternal Confirmations'', were sent to banks and parties and 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.

45 : Note on Advance received from customers

a. During the Financial year ended 31 March 2020, the Company has signed supply contracts for 125.4 MW Wind power projects of 38 Nos of 3300 KW WTG (Model WT3000DF) in the State of Gujarat with Gujarat Fluorochemicals Limited (GFCL). The Company has received the interest bearing advance of H 71,031.02 lakhs against the contracts. The Company is in process of fulfilment of the terms and conditions of the contracts.

b. During the Financial year ended 31 March 2020, the Company has signed supply contracts for 250 MW Wind power project of 125 Nos of 2000 KW WTG (model DF/2000/113) with continuum Power Trading (TN) Private Limited. The Company has received the advance of H 3,650.00 lakhs against the contracts. The Company is in process of fulfilment of the terms and conditions of the contracts.

46 : Segment information

Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and segment performance focuses on single business segment of manufacturing of Wind Turbine Generators (WTG''s) comprising of Erection, Procurement & Commissioning (âEPCâ), Operations & Maintenance (âO&Mâ) and Common Infrastructure Facilities services for WTGs and hence there is only one reportable business segment in terms of Ind AS 108: Operating Segment.

Two extenal customers contributed 10% or more of the total Company''s revenue amounting to H 42,271.43 lakhs (as at 31 March 2020: three customers amounting to H 37,026.82 lakhs).

47 : Revenue from contracts with customers as per Ind AS 115

(A) Disaggregated revenue information

In the following table, revenue from contracts with customers is disaggregated by primary major products and service lines Since the Company has only one reportable business segment, no reconciliation of the disaggregated revenue is required:

48 :Leases

Company as a lessee

(a) The Company''s significant leasing arrangements are in respect of leasehold lands. The Company has also taken certain commercial premises on lease.

Effective 01 April 2019, the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on 01 April 2019 using the modified retrospective method. Consequently, the Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date of transition and has measured right of use asset an amount equal to lease liability. The Company is not required restate the comparative information.

(b) On transition to Ind AS 116, the opening balances in ''Prepayment - leasehold lands'' are reclassified as right-to-use assets.

The following is the summary of practical expedients elected on initial application:

1) Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

2) Applied the exemption not to recognize right-of-use assets and liabilities for leases expiring within 12 months of lease term on the date of initial application.

3) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

4) Applied the practical expedient to apply Ind AS 116 to the contracts that were previously identified as leases applying Ind AS 17: Leases and hence not reassessed whether a contract is, or contains, a lease at the date of the initial application.

The weighted average incremental borrowing rate applied to lease liabilities as at 01 April 2019 is 12% p.a.

The difference between the operating lease commitments disclosed applying Ind AS 17 as at 31 March 2019, discounted to the present value at the date of initial application of Ind AS 116, and the value of the lease liability as at 01 April 2019, is on account of exclusion of short term leases.

The effect of adoption of Ind AS 116 on the line items in the financial statements, profit before tax, profit for the period and earnings per share is not significant. Ind AS 116 has resulted in an increase in cash inflows from operating activities and an increase in cash outflows from financing activities on account of lease payments.

53 : Events after the reporting period

During the subsequent period, the Company''s subsidiary Inox Wind Infrastructure Services Limited (IWISL) has passed resolution through 18th Extra Ordinary General Meeting dated 24 June 2021 for issuance of 7,44,04,762 fully paid-up equity shares on preferential basis to the Company for consideration other than cash in lieu of the repayment of existing Inter-Corporate Deposits/unsecured loans along with interest and liability on account of providing material/services etc. from time to time aggregating to H 60,000.00 lakhs in such manner and on such other term and conditions, as the board may, in its absolute discretion thinks fit.

There are no other events observed after the reported period which have a material impact on the company operations.

54 : The Hon''ble National Company Law Tribunal, Ahmedabad Bench (âNCLTâ) vide its order dated 25 January 2021 has approved a Composite Scheme of Arrangement (the âSchemeâ) between GFL Limited, Inox Renewables Limited and Inox Wind Energy Limited (wholly owned subsidiaries of GFL Limited) as detailed below:

a) Part A - Amalgamation of lnox Renewables Limited into GFL Limited w.e.f. 01 April 2020 and

b) Part B - Demerger of the Renewable Energy Business (as more particularly defined in the Scheme) and strategic investment of GFL Limited in Inox Wind Limited and other assets and liabilities pertaining to the said business into lnox Wind Energy Limited, a newly incorporated company for the purpose of vesting of the Renewable Energy Business w.e.f. 01 July 2020.

The aforesaid Scheme become effective from 09 February 2021. Upon the said Scheme becoming effective, Inox Wind Limited has become the subsidiary company of Inox Wind Energy Limited w.e.f. 01 July 2020.

55 : There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

56 : The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits has received Presidential assent on 28th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

Mar 31, 2018

1. COMPANY INFORMATION

Inox wind Limited (âthe Companyâ) is a public limited company incorporated in India. The Company is engaged in the business of manufacture and sale of Wind Turbine Generators (âWTGsâ). It also provides Erection, Procurement & Commissioning (âEPCâ), Operations & Maintenance (âO&M) and Common Infrastructure Facilities services for WTGs and wind farm development services. The area of operations of the Company is within India. The Companyâs parent company is Gujarat Fluorochemicals Limited and its ultimate holding company is Inox Leasing and Finance Limited. The shares of the Company are listed on the Bombay Stock Exchange and the National Stock Exchange of India.

The Companyâs registered office is located at Plot No.1, Khasra No.264-267 Industrial Area, Near Power house Village Basal Dist. Una, Himachal Pradesh, India and the particulars of its other offices and plants are disclosed in the annual report.

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION AND PRESENTATION

2.1 STATEMENT OF COMPLIANCE

These financial statements are the separate financial statements of the Company (also called standalone financial statements) and comply in all material aspects with the Indian Accounting Standards (âInd ASâ) notified under section 133 of the Companies Act, 2013 (âthe Actâ) and other relevant provisions of the Act.

2.2 BASIS OF MEASUREMENT

These financial statements are presented in Indian Rupees (INR), which is also the Companyâs functional currency. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

These financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the significant accounting policies.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

2.3 BASIS OF PREPARATION AND PRESENTATION

Effective 1 April 2016, the Company has adopted all the Ind AS Standards and the adoption was carried out in accordance with Ind AS 101 âFirst time adoption of Indian Accounting Standardsâ, with 1 April 2015 as the transition date. The transition was carried out from the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) which was the previous GAAP

Accounting Policies have been consistently applied except where a newly issued accounting standards initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

The financial statements have been prepared on accrual and going concern basis. .

Any asset or liability is classified as current if it satisfies any of the following conditions:

- the asset/liability is expected to be realized/settled in the Companyâs normal operating cycle;

- the asset is intended for sale or consumption;

- the asset/liability is held primarily for the purpose of trading;

- the asset/liability is expected to be realized/settled within twelve months after the reporting period

- the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;

- in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of products and services and the time between the acquisition of assets or inventories for processing and their realisation in cash and cash equivalents.

These financial statements were authorized for issue by the Companyâs Board of Directors on 18 May 2018.

3 CRITICAL ACCOUNTING JUDGEMENTS AND USE OF ESTIMATES

In application of Companyâs accounting policies, which are described in Note 3, the directors of the Company are required to make judgements, estimations and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

3.1 Following are the critical judgements that have the most significant effects on the amounts recognised in these financial statements:

a) Leasehold land

Considering the terms and conditions of the leases in respect of leasehold land, particularly the transfer of the significant risks and rewards, it is concluded that they are in the nature of operating leases.

3.2 Following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

a) Useful lives of Property, Plant & Equipment (PPE) and intangible assets (other than goodwill):

The Company has adopted useful lives of PPE and intangible assets (other than goodwill) as described in Note 3.8 above. The Company reviews the estimated useful lives of PPE at the end of each reporting period.

b) Fair value measurements and valuation processes

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period and discloses the same.

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions. Where necessary, the Company engages third party qualified valuers to perform the valuation.

Information about the valuation techniques and inputs used in determining the fair values of various assets and liabilities are disclosed in Note 38.

c) Other assumptions and estimation uncertainties, included in respective notes are as under:

- Estimation of current tax expense and payable, recognition of deferred tax assets and possibility of utilizing available tax credits - see Note 39

- Measurement of defined benefit obligations and other long-term employee benefits: - see Note 36

- Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources - see Note 20 and Note 40

- Impairment of financial assets - see Note 38

(b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of Rs.10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments designated as cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or loss when the hedged transaction affects the profit or loss, included as a basis adjustment to the non -financial hedged item, or when it becomes ineffective.

The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and is subject to levy of dividend distribution tax, if any. Thus, the amounts reported above may not be distributable in entirety.

4. EMPLOYEE BENEFITS:

(a) Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of Rs.225.29 Lakhs (31 March 2017: Rs.249.91 Lakhs) is recognized as an expense and included in âContribution to provident and other fundsâ in Statement of Profit and Loss .

(b) Defined Benefit Plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The level of benefits provided depends on the employeeâs length of service and salary at retirement age.The Companyâs defined benefit plan is unfunded.

There are no other post retirement benefits provided by the Company.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31 March 2018 by Mr. G. N. Agarwal, Fellow of the Institute of the Actuaries of India. The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

Sensitivity Analysis

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The average duration of the defined benefit plan obligation at the end of the reporting period is 14.30 years.

(c) Other short term and long term employment benefits:

Annual leave & short term leave

The liability towards compensated absences (annual and short term leave) for the year ended 31 March 2018 based on actuarial valuation carried out by using Projected accrued benefit method resulted in decrease in liability by Rs.11.08 lakhs (31 March 2017: increase in liability by Rs.100.09 lakhs ), which is included in the employee benefits in the Statement of Profit and Loss.

5. RELATED PARTY DISCLOSURES:

(i) Where control exists :

Gujarat Fluorochemicals Limited (GFL) - holding company

Inox Leasing and Finance Limited - ultimate holding company

Inox Wind Infrastructure Services Limited (IWISL) - subsidiary company

Subsidiaries of IWISL -

1. Marut Shakti Energy India Limited

2. Satviki Energy Private Limited

3. Sarayu Wind Power (Tallimadugula) Private Limited

4. Vinirrmaa Energy Generation Private Limited

5. Sarayu Wind Power (Kondapuram) Private Limited

6. RBRK Investments Limited -(incorporated on 30 August 2016)

7. Wind One Renergy Private Limited (incorporated on 26 April 2017)

8. Wind Three Renergy Private Limited (incorporated on 20 April 2017)

9. Suswind Power Private Limited (incorporated on 27 April 2017)

10. Vasuprada Renewables Private Limited (incorporated on 27 April 2017)

11. Ripudaman Urja Private Limited (incorporated on 28 April 2017)

12. Haroda Wind Energy Private Limited (incorporated on 16 November 2017)

13. Vigodi Wind Energy Private Limited (incorporated on 20 November 2017)

14. Vibhav Energy Private Limited (incorporated on 10 July 2017)

15. Vuelta Wind Energy Private Limited (incorporated on 17 January 2018)

16. Tempest Wind Energy Private Limited (incorporated on 17 January 2018)

17. Aliento Wind Energy Private Limited (incorporated on 17 January 2018)

18. Flutter Wind Energy Private Limited (incorporated on 18 January 2018)

19. Flurry Wind Energy Private Limited (incorporated on 18 January 2018)

(ii) Other related parties with whom there are transactions during the year

Key Management Personnel (KMP)

Mr. Devansh Jain - Whole-time director

Mr. Rajeev Gupta - Whole-time director

Mr. Kailash Lal Tarachandani-Chief Executive Officer

Ms. Bindu Saxena - Non Executive Director

Mr. V. Sankaranarayanan - Non Executive Director - w.e.f. 2 September 2016

Mr. Chandra Prakash Jain - Non Executive Director Mr. Deepak Asher - Non Executive Director Mr. Shanti Prasad Jain - Non Executive Director Mr. Siddharth Jain - Non Executive Director

Fellow Subsidiaries

Inox Renewables Limited (IRL) - Subsidiary of GFL Inox Renewables (Jaisalmer) Limited - Subsidiary of IRL Inox Leisure Limited (ILL) - Subsidiary of GFL

Enterprises over which KMP or their relatives have significant influence

Inox FMCG Private Limited

6. FINANCIAL INSTRUMENTS

(i) Capital management

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 18 and 23 offset by cash and bank balances excluding bank deposites kept as lien) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements. However, under the terms of the major borrowings, the Company is required to keep the debt to equity gearing ratio of not more than 300% and the ratio of debt to EBITDA must not be more than 300%. The Company has complied with these covenants during the year ended 31 March 2017. During the current year, the Company could not comply with the covenant in respect of EBITDA ratio on account of losses incurred during the year.

The Companyâs management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.

The carrying amount reflected above represents the Companyâs maximum exposure to credit risk for such financial assets.

(iii) Financial risk management

The Companyâs corporate finance function provides services to the business, coordinates access to financial market, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Companyâs policies approved by the Board of Directors of the Company, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and the investment of the excess liquidity. Compliance with policies and exposure limits is reviewed by the Company on a continuous basis. The Company does not enter into or trade financial instruments including derivative financial instruments for speculative purpose.

(iv) Market Risk

The Companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into the variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk including:

1. Interest rate swaps to mitigate the risk of rising interest rates.

2. Principal only swaps, Currency Swaps, Options and forwards contracts to mitigate foreign currency risk of foreign currency borrowings and payables foreign currency.

(v) (a) Foreign Currency risk management

The Company is subject to the risk that changes in foreign currency values mainly impact the Companyâs cost of imports of materials/capital goods, royalty expenses and borrowings etc. Exchange rate exposures are managed within approved policy parameters by entering into foreign currency forward contracts, options and swaps.

Foreign exchange transactions are covered with in limits placed on the amount of uncovered exposure, if any, at any point in time. The aim of the Companyâs approach to management of currency risk is to leave the Compnay with minimised residual risk.

The Company does not have any foreign currency monetary assets .

(v) (b) Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar and Euro.

The following table details the Companyâs sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes unhedged external loans, receivables and payables in currency other than the functional currency of the Company.

(vi) (a) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a fnancial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

As per the Companyâs risk management policy to minimize the interest rate cash flow risk on foreign currency long term borrowings, interest rate swaps are taken for most of the borrowings to convert the variable interest rate risk into rupee fixed interest rate. Thus, There is no major interest rate risks associated with foreign currency long term borrowings. In respect of foreign currency short term borrowings and rupee loans the Company does not have any borrowings at variable rate of interest.

Interest rate senstivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the end of the reporting period. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Companyâs profit for the year ended 31 March 2018 would decrease/increase by INR 22.98 Lakhs net of tax (for the year ended 31 March 2017 decrease/increase by INR 19.49 Lakhs). This is mainly attributable to the Companyâs exposure to interest rates on its variable rate borrowings.

(vi) (b) Interest rate swap contract

Under interest rate swap contracts, the Company agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Company to mitigate the risk of changing interest rates. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period and the credit risk inherent in the contract, and is disclosed below. The average interest rate is based on the outstanding balances at the end of the reporting period.

The interest rate swaps settle on quarterly basis. The floating rate on the interest rate swaps is the local interbank rate of India.

All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Companyâs cash flow exposures resulting from variable interest rates on borrowing. The interest rate swaps and the interest payments on the loan occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that floating rate interest payments on debt affect profit or loss.

The line-items in the Standalone balance sheet that include the above hedging instruments are âOther financial assetsâand âOther financial liabilitiesâ.

(vii) Other price risks

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have investment in equity instruments, other than investments in subsidiary which are held for strategic rather than trading purposes. The Company does not actively trade these investments. The Companyâs investment in mutual funds are in debt funds. Hence the Companyâs exposure to equity price risk is minimal.

(viii) Credit risk management

(a) Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Companyâs established policy, procedures and control relating to customer credit risk management. The Company supplies wind turbine equipments to customers which are installed and commissioned generally by a group company and it involves various activities such as civil work, electrical & mechanical work and commissioning activities. The payment terms with customers are fixed as per industry norms. The above activities lead to certain amounts becoming due for payment on completion of related activities and commissioning. The Company considers such amounts as due only on completion of related milestones. However, the group company has also long term operation and maintenance contract with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable as at 31 March 2018 is Rs.54,461.18 lakhs (as at 31 March 2017 of Rs.94,511.05 lakh) are due from 6 major customers (7 customers as at 31 March 2017 ) who are reputed parties. All trade receivables are reviewed and assessed for default on a quarterly basis.

b) Loans and other receivables

12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in the Statement of Profit and Loss under the head âOther expensesâ/âother incomeâ.

c) Other financial assets

Credit risk arising from investment in debt funds, derivative financial instruments and other balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the various credit rating agencies.There are no collaterals held against such investments.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company, which has established an appropriate liquidity risk management framework for the management of the Companyâs short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

The above liabilities will be met by the Company from internal accruals, realization of current and non-current financial assets (other than strategic investments). Further, the Company also has unutilised financing facilities.

(ix) Forward Foreign Exchange Contracts

The Company enters into call spread option contract and Cross Currency Swap agreement to hedge the foreign currency risk and interest rate risk.

(xi) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a resonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

The tax rate used for the year ended 31 March 2018 and 31 March 2017 in reconciliations above is the corporate tax rate of 34.608% payable by corporate entities in India on taxable profits under the Indian tax law.

The increase in corporate tax rate applicable to the company from 34.608% to 34.944% on account of increase in cess was substatially enocted before 31st March 2018 and will be effective from 1 April 2018. As a result, the deferred tax balance have been remeasured and the effect of the same is reflected in the above reconcillation.

7. CONTINGENT LIABILITIES:

(a) Claims against the Company not acknowledged as debts: claims made by contractors - Rs.679.77 lakhs (as at 31 March 2017: Rs.488.40 lakhs)

(b) In respect of claims made by four (previous year three ) customers for non-commissioning of WTGs, the amount is not ascertainable.

(d) In respect of VAT matters - Rs.59.09 lakhs (31 March 2017: Rs.59.09 lakhs)

The Company had received orders for the financial years ended 31 March 2013 and 31 March 2014, in respect of Himachal Pradesh VAT, levying penalty of Rs.112.87 lakhs for delayed payment of VAT. The Company had filed appeals before the first appellate authority. During the year ended 31 March 2015, the company had received appellate order for the year ended 31 March 2014 confiriming the levy of penalty and the Company has filed further appeal against the said order. However, the Company has estimated the amount of penalty which may be utimately sustained at Rs.53.78 lakhs and provision for the same was made during the year ended 31 March 2015. After adjusting the amount of Rs.23.35 lakhs paid against the demands, the balance amount of Rs.30.43 lakhs is carried forward as âDisputed sales tax liabilites (net of payments)â in Note 21.

(e) In respect of Service tax matter- Rs.1,401.63 lakhs (31 March 2017 Rs.1,401.63 lakhs)

The Company has received orders for the period September 2011 to March 2016, in respect of Service Tax, levying demand of Rs.1,401.63 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax. The Company has filed appeals before the first applellate authority. The Company has estimated the amount of demand which may be ultimately sustained at Rs.32.19 lakhs and provision for the same is made during the year and carried forward as âDisputed service tax liabilitiesâ in Note 21.

(f) In respect of Income tax matters - Rs.3,984.97 lakhs (31 March 2017: Rs.95.02 Lakhs)

This includes demand for assessment year 2013-14 received in the current year by the holding company, mainly on account of reduction in the amount of tax incentive claimed, which is being contested before the first appellate authority.

8. COMMITMENTS FOR EXPENDITURE

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs.4,313.22 lakhs, (31 March 2017: Rs.9,721.19 lakhs,).

b) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations are required to be fulfilled within stipulated period - Rs.2,983.84 lakhs (31 March 2017 Rs.2,983.84 lakhs).

9. OPERATING LEASE ARRANGEMENTS

a) Leasing arrangements in respect of operating lease for office premises / residential premises:

The Companyâs significant lease agreements are for a period of 11/60 months and are cancellable. The aggregate lease rentals are charged as âRentâ in the Sandalone Statement of Profit and Loss.

b) Interest in land taken on lease and classified as operating lease:

The leasehold land are generally taken for the period of 30 to 99 years. The entire lease premium is already paid and future rentals are nominal. Amortisation of such lease payments is included in âRentâ in the Standalone statement of Profit and Loss and the balance remaining amount to be amortised is included in the Standalone Balance Sheet as Prepayments- Leasehold land .

10. SEGMENT INFORMATION

Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and segment performance focuses on single business segment of manufacturing of Wind Turbine Generators (WTGâs) comprising of Erection, Procurement & Commissioning (âEPCâ), Operations & Maintenance (âO&Mâ) and Common Infrastructure Facilities services for WTGs and hence there is only one reportable business segment in terms of Ind AS 108: Operating Segment.

Revenue is net of returns and is reduced for rebates, trade discounts, refunds and other similar allowances. Of the above total revenue, nine external customers contributed more than 10% of the total Companyâs revenue amounting to Rs.52,171.70 lakhs (31 March 2017: three customers amounting to Rs.106,415.31 lakhs).

11 INITIAL PUBLIC OFFER

The Company had made an Initial Public Offer (IPO) during the year ended 31 March 2015, for 31,918,226 equity shares of Rs.10 each, comprising of 21,918,226 fresh issue of equity shares by the Company and 10,000,000 equity shares offered for sale by Gujarat Fluorochemicals Limited (GFL), the Companyâs holding company. The equity shares were issued at a price of Rs.325 per share (including premium of Rs.315 per share), subject to a discount of Rs.15 per share for eligible employees of the Company and retail investors. Out of the total proceeds from the IPO of Rs.102,053 lakhs, the Companyâs share was Rs.70,000 lakhs from the fresh issue of 21,918,226 equity shares. The total expenses in connection with the IPO are shared between the Company and GFL in proporation of the amount received from the IPO proceeds. Accordingly amount of Rs.3,222.15 lakhs, being share of the Company in the IPO expenses, is adjusted against the securities premium account. Fresh equity shares were allotted by the Company on 30 March 2015 and the shares of the Company were listed on the stock exchanges on 9 April 2015.

Subsequently, the members of the Company have passed a special resolution for variations in terms of the Objects of the Issue through postal ballot on 5 September 2017.

12. CORPORATE SOCIAL RESPONSIBILITY (CSR)

(a) The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) is Rs.964.52 Lakhs (31 March 2017 Rs.832.02 Lakhs).

(b) Amount spent during the year ended 31 March 2018:

Mar 31, 2017

A] Financial assets

a) Initial recognition and measurement:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial asset is recognized at fair value, in case of financial assets which are recognized at fair value through profit and loss (FVTPL), its transaction costs are recognized in the Statement of Profit and Loss. In other cases, the transaction costs are attributed to the acquisition value of the financial asset.

b) Effective interest method:

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognized in profit or loss and is included in the "Other income" line item.

c) Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company''s business model for managing the financial asset and

ii. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

i. Financial assets measured at amortized cost:

A financial asset is measured at the amortized cost if both the following conditions are met:

a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows, and

b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method.

The amortized cost of a financial asset is also adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the following conditions are met:

a) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All investments in equity instruments classified under financial assets are initially measured at fair value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVTOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument are recognized as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVTOCI.

This category does not apply to any of the financial assets of the Company other than the derivative instrument for the cash flow hedges.

iii. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above.

This is a residual category applied to all other investments of the Company. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognized as ''other income'' in the Statement of Profit and Loss.

d) Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognized in profit or loss except for those which are designated as hedging instruments in a hedging relationship.

e) Derecognition:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s Balance Sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset;

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows without material delay to one or more recipients under a ''pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognizes an associated liability.

The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On derecognition of a financial asset, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

f) Impairment of financial assets:

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized cost (other than trade receivables)

iii. Financial assets measured at fair value through other comprehensive income (FVTOCI)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance.

In case of other assets (listed as ii and iii above), the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined

by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss under the head ''Other expenses''.

B] Financial liabilities and equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

i. Equity instruments:-

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

ii. Financial Liabilities:-

a) Initial recognition and measurement:

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at fair value.

b) Subsequent measurement:

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies.

The Company has not designated any financial liability as at FVTPL other than derivative instrument. Further the Company does not have any commitments to provide a loan at a below market interest rate.

c) Foreign exchange gains and losses:

For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments and are recognized in profit or loss.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the closing rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognized in profit or loss.

d) Derecognition of financial liabilities:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in the Statement of Profit and Loss.

3.14 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING

The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in Note 39.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently premeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship and the nature of the hedged item.

The Company designates certain hedging instruments, which include derivatives, as either fair value hedges, or cash flow hedges.

At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

The hedge relationship so designated as fair value is accounted for in accordance with the accounting principles prescribed for hedge accounting under Ind AS 109, ''Financial Instruments''.

a) Fair value hedge:

Hedging instrument is initially recognized at fair value on the date on which a derivative contract is entered into and is subsequently measured at fair value at each reporting date. Gain or loss arising from changes in the fair value of hedging instrument is recognized in the Statement of Profit and Loss. Hedging instrument is recognized as a financial asset in the Balance Sheet if its fair value as at reporting date is positive as compared to carrying value and as a financial liability if its fair value as at reporting date is negative as compared to carrying value.

Hedged item is initially recognized at fair value on the date of entering into contractual obligation and is subsequently measured at amortized cost. The gain or loss on the hedged item is adjusted to the carrying value of the hedged item and the corresponding effect is recognized in the Statement of Profit and Loss.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting.

Note 39 sets out details of the fair values of the derivative instruments used for hedging purposes.

b) Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

Amounts previously recognized in other comprehensive income and accumulated in equity relating to (effective portion as described above) are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, such gains and losses are transferred from equity (but not as a reclassification adjustment) and included in the initial measurement of the cost of the non-financial asset or non-financial liability.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting.

Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

1. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows''. The amendment is applicable to the Company from 1 April 2017.

The amendment to Ind AS 7 Statement of Cash Flows requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The effect on the financial statements is being evaluated by the Company.

3. FIRST-TIME ADOPTION - MANDATORY EXCEPTIONS AND OPTIONAL EXEMPTIONS

Overall principle

The Company has prepared the opening standalone balance sheet as per Ind AS as of 1 April 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities.

However, this principle is subject to the certain mandatory exceptions and optional exemptions allowed by Ind AS 101 First-time Adoption of Indian Accounting Standards and availed by the Company as detailed below.

I. Optional exemptions from retrospective application:

a) Deemed cost for property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as of 1 April 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

b) Investment in subsidiary

The Company has opted to measure the investments in all its subsidiaries at deemed cost of such investment which is previous GAAP carrying amount on the date of transition.

II. Mandatory exceptions from retrospective application:

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101:

a) Estimates:

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

b) Classification and measurement of financial assets:

The classification of financial assets to be measured at amortized cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

c) Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 Financial Instruments retrospectively; however, as permitted by Ind AS 101 First-time Adoption of Indian Accounting Standards, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

d) Derecognition of financial assets and financial liabilities:

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2015 (the transition date).

4. CRITICAL ACCOUNTING JUDGEMENTS AND USE OF ESTIMATES

In application of Company''s accounting policies, which are described in Note 3, the directors of the Company are required to make judgments, estimations and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

5 Following are the critical judgments that have the most significant effects on the amounts recognized in these financial statements:

a) Leasehold land

6. Following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

a) Useful lives of Property, Plant & Equipment (PPE):

The Company has adopted useful lives of PPE as described in Note 3.8 above. The Company reviews the estimated useful lives of PPE at the end of each reporting period.

b) Fair value measurements and valuation processes

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above.

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgments and assumptions. Where necessary, the Company engages third party qualified values to perform the valuation.

Information about the valuation techniques and inputs used in determining the fair values of various assets and liabilities are disclosed in Note 39.

c) Other assumptions and estimation uncertainties, included in respective notes are as under:

- The Company''s tax jurisdiction is India. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax claims.

- Recognition of deferred tax assets, availability of future taxable profits against which tax losses carried forward can be used, possibility of utilizing available tax credits - refer Note 22

- Measurement of defined benefit obligations and other long-term employee benefits: key actuarial assumptions - refer Note 37

- Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources - refer Note 21 and Note 41

- Impairment of financial assets - refer Note 39

(b) Defined Benefit Plans:

There are no other post retirement benefits provided by the Company.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31 March 2017 by Mr.G. N. Agarwal, Fellow of the Institute of the Actuaries of India. The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interst risk: a decrease in the bond interest rate will increase the plan liability.

Sensitivity Analysis

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

(c) Other short term and long term employment benefits:

Annual leave & Short term leave

The liability towards compensated absences (annual and short term leave) for the year ended 31 March 2017 based on actuarial valuation carried out by using Projected accrued benefit method resulted in increase in liability by Rs, 100.09 lakhs (31 March 2016: Rs, 110.75 lakhs), which is included in the employee benefits in the Statement of Profit and Loss.

7. RELATED PARTY DISCLOSURES:

(i) Where control exists :

Gujarat Fluorochemicals Limited (GFL) - holding company Inox Leasing & Finance Limited - ultimate holding company Inox Wind Infrastructure Services Limited (IWISL) - subsidiary company Marut Shakti Energy India Limited- subsidiary of IWISL

Satviki Energy Private Limited- subsidiary of IWISL (w.e.f on 11 November 2015)

Sarayu Wind Power (Tallimadugula) Private Limited- subsidiary of IWISL (w.e.f on 9 December 2015) Vinirrmaa Energy Generation Private Limited - subsidiary of IWISL (w.e.f on 23 January 2016)

Sarayu Wind Power (Kondapuram) Private Limited - subsidiary of IWISL (w.e.f on 25 March 2016) RBRK Investments Limited - subsidiary of IWISL (w.e.f on 30 August 2016)

(ii) Other related parties with whom there are transactions during the year

Key Management Personnel (KMP)

Mr. Devansh Jain - whole-time director

Mr. Rajeev Gupta - whole-time director

Mr. Kailash Lal Tarachandani-Chief Executive Officer

Dr. S Rama Iyer - Non Executive Director - upto 31 March 2016

Ms. Bindu Saxena - Non Executive Director

Mr. Chandra Prakash Jain - Non Executive Director

Mr. Deepak Asher - Non Executive Director

Mr. Shanti Prasad Jain - Non Executive Director

Mr. Siddharth Jain - Non Executive Director

Mr.V.Sankaranarayanan - Non Executive Director - w.e.f. 2 September 2016 Fellow Subsidiaries

Inox Renewables Limited (IRL) - Subsidiary of GFL Inox Renewables (Jaisalmer) Limited - Subsidiary of IRL Inox Leisure Limited (ILL) - Subsidiary of GFL

Enterprises over which KMP or their relatives have significant influence

Inox FMCG Private Limited

8. FINANCIAL INSTRUMENTS

(i) Capital management

The capital structure of the Company consists of net debt (borrowings as detailed in notes 19 and 24 offset by cash and bank balances) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements. However, under the terms of the major borrowings, the Company is required to keep the gearing ratio of debt to equity not more than 350% and the ratio of debt to EBITDA must not be more than 350%. The Company has complied with these covenants throughtout the period. As at 31 March 2017, the ratio of debt to EBITDA is 275% (31 March 2016 was 183%)."

The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.

The Carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets.

(iii) Financial risk management objectives

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the Board of Directors of the Company, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and the investment of the excess liquidity. Compliance with policies and exposure limits is reviewed by the Company on a continuous basis. The Company does not enter into or trade financial instruments including derivative financial instruments for speculative purpose.

(iv) Market Risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into the variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk including:

1. Interest rate swaps to mitigate the risk of rising interest rates.

2. Principal only swaps, Currency Swaps, Options and forwards contracts to mitigate foreign currency risk of foreign currency borrowings and payables foreign currency.

(v)(a) Foreign Currency risk management

The Company is subject to the risk that changes in foreign currency values mainly impact the Company''s cost of imports of materials/capital goods, royalty expenses and borrowings etc. Exchange rate exposures are managed within approved policy parameters by entering in to foreign currency forward contracts, options and swaps.

There are no foreign currency monetary assets during the year.

(v)(b) Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar and Euro .

(vi)(a) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

As per the Company''s risk management policy to minimize the interest rate cash flow risk on foreign currency long term borrowings, interest rate swaps are taken for most of the borrowings to convert the variable interest rate risk into rupee fxed interest rate. Thus, There is no major interest rate risks associated with foreign currency long term borrowings. In respect of foreign currency short term borrowings and rupee loans the Company does not have any borrowings at variable rate of interest.

Interest rate sensitivity analysis

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended 31 March 2017 would decrease/increase by INR 19.49 Lakhs net of tax (for the year ended 31 March 2016 decrease/increase by INR Nil). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

(vi)(b) Interest rate swap contract

The interest rate swaps settle on quarterly basis. The floating rate on the interest rate swaps is the local interbank rate of India.

All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Company''s cash flow exposures resulting from variable interest rates on borrowing. The interest rate swaps and the interest payments on the loan occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that floating rate interest payments on debt affect profit or loss.

The line-items in the Standalone balance sheet that include the above hedging instruments are "Other financial assets âand "Other financial liabilities".

(vii) Other price risks

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have investment in equity instruments. Equity investments in subsidiaries are held for strategic rather than trading purposes. The Company does not actively trade these investments. The Company''s investment in mutual funds are in debt funds. Hence the Company''s exposure to equity price risk is minimal.

(viii) Credit risk management

(a) Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. The Company supplies wind turbine equipments to customers which are installed and commissioned generally by a group company and it involves various activities such as civil work, electrical & mechanical work and commissioning activities. The payment terms with customers are fixed as per industry norms. The above activities lead to certain amounts becoming due for payment on completion of related activities and commissioning. The Company considers such amounts as due only on completion of related milestones. However, the group company has also long term operation and maintenance contract with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable as at 31 March 2017 is Rs, 94,511.05 lakhs (as at 31 March 2016 of Rs, 123,502.69 lakhs and as at 1 April 2015 of Rs, 96,394.47 lakhs) are due from 7 major customers (6 customers as at 31 March 2016 and 1 April 2015) who are reputed parties. All trade receivables are reviewed and assessed for default on a quarterly basis. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period is as follows:

b) Loans and Other Receivables

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/expense in the Statement of Profit and Loss under the head ''Other expenses''.

c) Other financial assets

Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognized financial institutions with high credit ratings assigned by the various credit rating agencies and investment in mutual funds are debt fund only.

Liquidity Risk Management

(ix) Forward Foreign Exchange Contracts

The Company enters into call spread option contract and Cross Currency Swap agreement to hedge the foreign currency risk and interest rate risk.

During the period, there were no transfers between Level 1 and level 2

(xi) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are a reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

The tax rate used for the years ended 31 March 2017 and 31 March 2016 in reconciliations above is the corporate tax rate of 34.608% payable by corporate entities in India on taxable profits under the Indian tax law.

9. CONTINGENT LIABILITIES:

(a) Claims against the Company not acknowledged as debts: claims made by contractors - Rs, 488.40 lakhs (as at 31 March 2016: Rs, 81.52 lakhs, as at 1 April 2015: Nil)

Some of the suppliers have raised claims including interest on account of nonpayment in terms of the respective contracts. The Company has contended that the suppliers have not adhered to some of the contract terms. At present the matters are pending before the jurisdictional authorities or are under negotiations.

(b) In respect of claims made by three customers for non-commissioning of WTGs, the amount is not ascertainable.

(c) In respect of VAT matters - Rs, 59.09 lakhs (31 March 2016: Rs, 59.09 lakhs, 1 April 2015: Rs, 59.09 lakhs)

The Company had received orders for the financial years ended 31 March 2013 and 31 March 2014, in respect of Himachal Pradesh VAT, levying penalty of Rs, 112.87 lakhs for delayed payment of VAT. The Company had filed appeals before the first appellate authority. During the year ended 31 March 2015, the company had received appellate order for the year ended 31 March 2014 confirming the levy of penalty and the Company has filed further appeal against the said order. However, the Company has estimated the amount of penalty which may be ultimately sustained at Rs, 53.78 lakhs and provision for the same was made during the year ended 31 March 2015. After adjusting the amount of Rs, 23.35 lakhs paid against the demands, the balance amount of Rs, 30.43 lakhs is carried forward as "Disputed sales tax liabilities (net of payments)" in note 21

(d) In respect of Service tax matter- Rs, 1401.63 lakhs (31 March 2016: Nil, 1 April 2015: Nil)

The Company has received orders for the period September 2011 to March 2016, in respect of Service Tax, levying demand of Rs, 1401.63 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax. The Company has filed appeals before the first applellate authority. The Company has estimated the amount of demand which may be ultimately sustained at Rs, 32.19 lakhs and provision for the same is made during the year and carried forward as "Disputed service tax liabilities" in note 21

(e) In respect of Income tax matter - Rs, 95.02 lakhs (31 March 2016: Nil, 1 April 2015: Nil)

During the year, the Company has received income tax order for financial year 2012-13, levying demand of Rs, 95.02 Lakh on account of mismatch of Tax deducted at source (TDS). The Company has filed appeals before the first applellate authority.

In respect of above matters, no additional provision is considered necessary as the Company expects favorable outcome. Further, it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.

10. COMMITMENTS FOR EXPENDITURE

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs, 9,721.19 lakhs, (31 March 2016: Rs, 16,851.84 lakhs, 1 April 2015: Rs, 9,486.70 lakhs).

b) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations are required to be fulfilled within stipulated period - Rs, 2,983.84 Lakh (31 March 2016 Rs, 1,997.83 Lakhs, 1 April 2015: 1,997.83 Lakhs).

43. OPERATING LEASE ARRANGEMENTS

a) Leasing arrangements in respect of operating lease for office premises / residential premises:

The Company''s significant lease agreements are for a period of 11/60 months and are cancellable. The aggregate lease rentals are charged as "Rent" in the Sandalone Statement of Profit and Loss.

b) Interest in land taken on lease and classified as operating lease:

The leasehold land are generally taken for the period of 30 to 99 years. The entire lease premium is already paid and future rentals are nominal. Amortization of such lease payments is included in "Rent" in the Standalone statement of Profit and Loss and the balance remaining amount to be amortized is included in the Standalone Balance Sheet as Prepayments- Leasehold land .

11. SEGMENT INFORMATION

Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and segment performance focuses on single business segment of manufacturing of Wind Turbine Generators (WTG''s) comprising of Erection, Procurement & Commissioning ("EPC"), Operations & Maintenance ("O&M") and Common Infrastructure Facilities services for WTGs and hence there is only one reportable business segment in terms of Ind AS 108: Operating Segment.

Of the above total revenue, three customers contributed more than 10% of the total Company''s revenue amounting to Rs, 106,415.31 lakhs (31 March 2016: two customers amounting to Rs, 93,685.92 lakhs).

Footnotes for IGAAP to Ind AS reconciliation a) Reclassification of leasehold land:

Under previous GAAP, all leasehold lands were classified as property, plant and equipment. Under Ind AS, leasehold land is to be recognized as an operating or a finance lease as per the definition and classification criteria under Ind AS 17. Accordingly deemed cost of the leasehold lands are reclassified from property, plant and equipment and disclosed as operating leases prepayments under non-financial assets.

Consequent to this change, amount of Rs, 3525.46 lakhs is transferred from property, plant and equipment to "prepayments - leasehold lands" as at 31^st March 2016 (Rs, 338.46 lakhs as at 1^st April 2015)

The above changes do not affect total equity as at date of transition to Ind AS and as at 31^st March 2016 and the profit for the year ended 31^st March 2016.

b) Non-Current Investments:

In the financial statements prepared under previous GAAP, non-current investments of the Company were measured at cost less provision for diminution (other than temporary). Under Ind AS, the Company has recognized such investments as follows:

- Optionally convertible debenture (acquired during the year ended 31^st March 2016) - at fair value

- Equity shares of subsidiary - at cost

On the date of transition, there is no change in the carrying value of investments.

Consequent to this change, the fair value loss of Rs, 273.83 lakhs is charged to the Statement of Profit and Loss.

c) Current Investments:

In the financial statements prepared under previous GAAP, current investments of the Company were measured at lower of cost and fair value. Under Ind AS, these investments have been classified as FVTPL. The fair value changes are recognized in the Statement of Profit and Loss.

The Company did not have any current investments on the date of transition to Ind AS. As at 31^st March 2016, the difference between the fair value of current investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs, 65.72 lakhs.

During the year ended 31^st March 2016, net gain amounting to Rs, 65.72 lakhs on such fair valuation is recognized in the Statement of Profit and Loss as other income.

d) Expected credit loss:

Under previous GAAP, the Company used to create provision for impairment of receivables only in respect of specific amount for doubtful receivables. Under Ind AS, additional impairment allowance has been determined based on Expected Credit Loss model (ECL).

Consequent to this change, on the date of transition to Ind AS, allowance for ECL of Rs, 222.49 lakhs is recognized with corresponding reduction in the retained earnings. The amount of allowance for ECL recognized as at 31^st March 2016 is Rs, 453.72 lakhs.

The profit before tax for the year ended 31^st March 2016 is decreased by Rs, 231.23 lakhs on account of allowance for ECL.

e) Derivative Financial Instruments

Under the previous GAAP, forward contracts were accounted as per AS 11. However, these are now classified as financial assets or financial liabilities as per Ind AS 109 and measured at fair value. The Group has reversed the impact of AS 11 on the date of transition and has restated those contracts at fair value on the date of transition and the gain or loss on the same has been adjusted in the Retained Earnings.

The Company''s certain foreign currency borrowings are fully hedged, both as to the principal and interest (cross currency swap), and hence were recorded in fixed rupee terms under previous GAAP. Consequently, the corresponding derivative assets/liabilities were also not recorded.

Under Ind AS, the foreign currency borrowings are translated using the closing rates and the difference is recognized in profit or loss as foreign exchange fluctuation gain/loss. Further, the corresponding derivative assets/liabilities are recorded at fair value.

Under previous GAAP, premium on forward contracts was amortized over the period of contract. Under Ind AS, the same is measured and recognized at fair value at reporting date.

Consequent to above changes:

- the amount of foreign currency borrowings on the transition date is reduced by Rs, 484.83 lakhs (as at 31 March 2016 - Rs, 1130.60 lakhs)

- as on the date of transition, the unamortised premium on forward contract as per previous GAAP of Rs, 324.35 lakhs is reversed (as at 31 March 2016 - Rs, 1139.40 lakhs)

- derivative liability of Rs, 549.21 lakhs is recognized on the date of transition. Further, as at 31 March 2016, derivative liability of Rs, 656.22 lakhs and derivative asset of Rs, 395.22 lakhs is recognized.

Net impact on the date of transition of Rs, 388.73 lakhs is adjusted in the opening retained earnings and profit before tax for the year ended 31^st March 2016 is higher by Rs, 220.68 lakhs.

f) Government Grants

Under Ind AS, the Group has recognized following Government grants:

- Exemption from payment of customs duty on import of capital goods

- Purchase of rights in leasehold lands at a concessional rate

Accordingly, the amount of Government grant is recognized as ''Government grant - deferred income'' with a corresponding increase in the carrying amount of related assets and the same is subsequently transferred to profit or loss as other income on a systematic and rational basis.

Consequent to this change, on the date of transition to Ind AS, an amount of '' 1313.80 lakhs is recognized as deferred income in the balance sheet with the corresponding increase in carrying amount of plant and equipment.

During the year ended 31 March 2016, the additional amount of deferred income recognized in respect of rights in leasehold land is '' 117.61 lakhs.

This change does not affect total equity as at date of transition to Ind AS and as at 31^st March 2016.

g) Prior period items

Prior period expenditure of Rs, 27.20 Lakhs is adjusted in the opening retained earnings as at 1 April 2015 with corresponding effect in Rs,other current assetsRs,. Profit for the year ended 31^st March 2016 is lower by Rs, 344.24 lakhs on account of prior period expenditure with corresponding effect in the carrying amount of trade payables, other current assets and other non-current liabilities (refer Note 49).

h) Remeasurement of defined benefit plan

In the financial statements prepared under previous GAAP, remeasurement of defined benefit plans and assets (gratuity), arising due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans and assets is recognized in OCI as per the requirements of Ind AS 19 - Employee benefits. Consequently, the related tax effect of the same has also been recognized in OCI.

For the year ended 31^st March 2016, remeasurement of gratuity liability resulted in net benefit of Rs, 6.70 lakhs which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognized separately in OCI.

The above changes do not affect total equity as at date of transition to Ind AS and as at 31^st March 2016.

i) Other Comprehensive income:

Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other Comprehensive income.

This change does not affect total equity as at date of transition to Ind AS and as at 31^st March 2016.

j) Deferred tax:

In the financial statements prepared under previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/liability on timing differences between taxable profit and accounting profit. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/liability on temporary differences between the carrying amount of an asset/liability in the Balance Sheet and its corresponding tax base.

The transitional adjustments as described in the preceding paragraphs have led to temporary differences and creation of deferred tax thereon.

This has resulted in creation of net deferred tax asset of Rs, 211.53 lakhs as at date of transition to Ind AS with a corresponding decrease in retained earnings and reduction in the amount of deferred tax asset in the Balance Sheet.

For the year ended 31^st March 2016, it has resulted in decrease in deferred tax expense by Rs, 73.40 lakhs in the Statement of Profit and Loss and increase in deferred tax expense of Rs, 2.28 lakhs in OCI.

Mar 31, 2016

1. INITIAL PUBLIC OFFER

The Company had made an Initial Public Offer (IPO) during the year ended 31.03.2015 for 3,19,18,226 equity shares of '' 10 each, comprising of 2,19,18,226 fresh issue of equity shares by the Company and 1,00,00,000 equity shares offered for sale by Gujarat Fluor chemicals Limited (GFL), the Company''s holding company. The equity shares were issued at a price of '' 325 per share (including premium of '' 315 per share), subject to a discount of '' 15 per share for eligible employees of the Company and retail investors. Out of the total proceeds from the IPO of '' 102,053 Lakh, the Company''s share was '' 70,000.00 Lakh from the fresh issue of 2,19,18,226 equity shares. The total expenses in connection with the IPO are shared between the Company and GFL in the proportion of the amount received from the IPO proceeds. Accordingly amount of '' 3,222.15 Lakh, being share of the Company in the IPO expenses, is adjusted against the securities premium account. Fresh equity shares were allotted by the Company on 30^th March, 2015 and the shares of the Company were listed on the stock exchanges on 9^th April 2015.

2. Change in the estimate of useful life of fixed assets

The Company has adopted the useful lives of various fixed assets as specified in Schedule II of the Companies Act, 2013 with effect from April 1, 2014, as against the useful lives adopted earlier as per Schedule XIV to the Companies Act, 1956. The carrying amount of fixed assets, where the remaining useful life as at 1st April 2014 as per Schedule II is Nil, aggregating to '' 8.61 Lakh (net of deferred tax credit of '' 3.15 Lakh), was recognized in the opening balance of retained earnings.

3. In March 2014 a fire broke out in the Company''s factory at Rohika, Gujarat. The Company had lodged a claim with the insurance company towards the loss on account of fire. The claim lodged with the insurance company included, inter-alia, claim towards loss of materials and fixed assets, expenditure on carrying out repairs and loss of profit. During the year ended 31st March 2014, the cost of materials and written down value of fixed assets destroyed in fire was estimated at '' 2,023.01 Lakh by the management. Pending the settlement of claim, amount of '' 83.68 Lakh, being estimated amount of reduction in the claim, was charged to the Statement of Profit and Loss as "loss by fire" and the balance amount of '' 1,939.33 Lakh was included in ''Insurance claims lodged'' in Other current assets. During the previous year ended 31^st March, 2015, after considering the expenditure incurred on repairs to plant and equipment of '' 648.57 Lakh, repairs to buildings of '' 455.75 Lakh and other expenses, net of realization from sale of scrap, the amount on account of fire loss stood at '' 3,021.76 lakh. The Company has received final settlement claim amount of '' 2,987.09 Lakh, excluding the claim on account of loss of profit and the loss of '' 34.67 Lakh on final settlement of the claim was charged to the Statement of Profit and Loss as "loss by fire" for the previous year ended 31^st March, 2015.

4. Earnings in foreign Exchange - '' Nil (previous year - '' Nil)

5. The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (''''MSMED Act")

6. CONTINGENT LIABILITIES

a) Claims against the Company not acknowledged as debts: Claims made by contractors - '' 81.52 Lakh (previous year '' Nil).

b) In respect of claims made by two customers for non-commissioning of WTGs, the amount is not ascertainable.

c) In respect of VAT matters - '' 59.09 Lakh (previous year '' 59.09 Lakh)

The Company had received orders for the financial years 2012-13 and 2013-14, in respect of Himachal Pradesh VAT, levying penalty of '' 112.87 Lakh for delayed payment of VAT. The Company had filed appeals before the first appellate authority. During the previous year, the Company had received appellate order for the year 2013-14 confirming the levy of penalty and the Company has filed further appeal against the said order. However, the Company has estimated the amount of penalty which may be ultimately sustained at '' 53.78 Lakh and provision for the same is made during the previous year. After adjusting the amount of '' 23.35 Lakh paid against the demands, the balance amount of '' 30.43 Lakh is carried forward as "Provision for disputed sales tax liabilities" in note no. 13.

No further provision is considered necessary in respect of these matters as the Company expects favorable outcome. It is not possible for the Company to estimate the timing of further cash outflows, if any, in respect of these matters.

7. COMMITMENTS

a) Estimated amounts of contracts remaining to be executed on capital account, net of advances - '' 16,851.84 Lakh (previous year '' 9,486.70 Lakh).

b) Amount of customs duty exemption availed under EPCG Scheme for which export obligations are required to be fulfilled within stipulated period - '' 1,997.83 Lakh (previous year '' 1,997.83 Lakh).

8. The Company''s significant leasing arrangements are in respect of operating lease for office / residential premises. The lease agreements are for a period of 11 to 60 months. The aggregate lease rentals are charged as "Rent" in the Statement of Profit and Loss.

9. The Company is engaged in the business of manufacture of Wind Turbine Generators ("WTGs") and also provides related Erection, Procurement & Commissioning ("EPC"), Operations & Maintenance ("O&M") and Common Infrastructure Facilities services for WTGs, which is considered as a single business segment. Hence, there is only one reportable business segment as envisaged in Accounting Standard 17: ''Segment Reporting''. Further, all the activities of the Company are in India and hence there is a single geographical segment.

10. Amount of expenditure capitalized represents cost of one prototype WTG manufactured and capitalized as fixed assets.

11. Prior period items, included under respective heads of expenses/income:

12. EMPLOYEE BENEFITS:

(a) Defined Contribution Plans: Contribution to Provident fund of '' 185.55 Lakh (Previous year 126.62 Lakh) is recognized as an expense and included in ''Contribution to provident & other funds'' in the Statement of Profit and Loss.

(b) Defined Benefit Plans: The amounts recognized in respect of Gratuity and Leave Benefits - as per Actuarial valuation as on 31^st March, 2016

13. related party disclosures:

(i) Where control exists :

Gujarat Fluor chemicals Limited (GFL) - holding company Inox Leasing & Finance Limited - ultimate holding company Inox Wind Infrastructure Services Limited (IWISL) - subsidiary company Marut Shakti Energy India Limited- subsidiary of IWISL

Satviki Energy Private Limited- subsidiary of IWISL (w.e.f on 11^th November, 2015)

Sarayu Wind Power (Tallimadugula) Private Limited- subsidiary of IWISL (w.e.f on 9^th December, 2015) Vinirrmaa Energy Generation Private Limited - subsidiary of IWISL (w.e.f on 23^rd January, 2016)

Sarayu Wind Power (Kondapuram) Private Limited - subsidiary of IWISL (w.e.f on 25^th March, 2016)

(ii) Other related parties with whom there are transactions during the year Key Management Personnel (KMP)-

Mr. Devansh Jain - whole-time director Mr. Rajeev Gupta - whole-time director

Fellow Subsidiaries

Inox Renewable Limited (IRL) - subsidiary of GFL Inox Renewable (Jaisalmer) Limited - subsidiary of IRL Inox Leisure Limited (ILL) - subsidiary of GFL

Satyam Cineplexâs Limited - subsidiary of ILL (now amalgamated with ILL w.e.f. 4^th August 2014)

14. corporate social RESPONSIBILITY (CSR)

(a) The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) is '' 487.63 Lakh (previous year '' 276.28 Lakh.

Officer for the interim period from 13^th October, 2015 till the appointment of Ms. Shubha Singh as Compliance Officer w.e.f. 26^th October, 2015.

Mar 31, 2015

1. CORPORATE INFORMATION

Inox Wind Limited (the "Company") is engaged in the business of manufacture of Wind Turbine Generators ("'WTGs") and also provides Erection, Procurement & Commissioning ("EPC") services for WTGs.The area of operations of the Company is within India. The Company is a subsidiary of Gujarat Fluorochemicals Limited. The Company has made an Initial Public Offer during the year and shares of the Company were listed on the Bombay Stock Exchange and the National Stock Exchange of India on 9th April, 2015

2. BASIS OF PREPARATION:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India, under the historical cost convention and on accrual basis. These financial statements comply in all material respects with the applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

Figures of the previous year have been regrouped or reclassified, wherever necessary, to confirm to current year presentation.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

Pursuant to the Initial Public Offer, some of the equity shares of the Company are locked in from the date of allotment of fresh shares in the IPO viz.from 30th March 2015, as under:

(a) 14,56,16,354 shares held by the promoter and promoter group, for a period of one year.

(b) 4,43,83,646 shares held by the holding company, for a period of three years.

(c) 94,25,467 equity shares alloted to anchor investors as part of IPO, for a period of thirty days.

e) During the year ended 31st March 2014, the Company has allotted 16,00,00,000 fully paid equity shares as bonus shares in the ratio of 4:1 by utilisation of surplus in the statement of Profit and Loss.

4. : INITIAL PUBLIC OFFER

During the year, the Company has made an Initial Public Offer (IPO) for 3,19,18,226 equity shares of Rs. 10 each, comprising of 2,19,18,226 fresh issue of equity shares by the Company and 1,00,00,000 equity shares offered for sale by Gujarat Fluorochemicals Limited (GFL), the holding company. The equity shares were issued at a price of Rs. 325 per share (including premium of Rs. 315 per share) subject to discount of Rs. 15 per share to the eligible employees of the Company and retail investors. Out of the total proceeds from the IPO of Rs. 102,053.45 Lakh, the Company's share is Rs. 70,000 Lakh from the fresh issue of 2,19,18,226 equity shares. The total expenses in connection with the IPO are shared between the Company and GFL in the proportion of the amount received from the IPO proceeds. Accordingly amount of Rs. 3,222.15 Lakh, being share of the Company in the IPO expenses, is adjusted against the securities premium account.

Fresh equity shares were allotted by the Company on 30th March 2015 and these shares rank pari-passu with the existing shares. The shares of the Company were listed on the stock exchanges on 9th April 2015.

5. CHANGE IN THE ESTIMATE OF USEFUL LIFE OF FIXED ASSETS

a) Company has adopted the useful lives of various fixed assets as specified in Schedule II of the Companies Act, 2013, with effect from April 1,2014, as against the useful lives adopted earlier as per Schedule XIV to the Companies Act, 1956. The carrying amount of fxed assets, where the remaining useful life as at 1st April 2014 as per Schedule II is Nil, aggregating to Rs. 8.61 Lakh (net of deferred tax credit of Rs. 3.15 Lakh), is recognized in the opening balance of retained earnings. Further, the carrying amount of fxed assets as at 1st April 2014 is being depreciated over the revised remaining useful life of the assets. Consequently, depreciation charge for the year is higher by Rs. 542.62 Lakh.

(b) In accordance with Accounting Standard (AS) 22:Taxes on Income, the deferred tax liability on account of timing difference in depreciation, to the extent reversing during the tax holiday period, is not recognized. Consequent to the above change in the estimated useful life of fxed assets, such timing difference reversing during the tax holiday period is recomputed. Consequently, there is reduction in the deferred tax liability of Rs. 130.17 Lakh and the same is included in the amount of deferred tax credit in the Statement of Proft and Loss for the year ended 31st March 2015.

6. In March 2014 a fre broke out in the Company's factory at Rohika, Gujarat. The Company had lodged a claim with the insurance company towards the loss on account of fre. The claim lodged with the insurance company included, inter-alia, claim towards loss of materials and fxed assets, expenditure on carrying out repairs and loss of proft. During the year ended 31st March 2014, the cost of materials and written down value of fxed assets destroyed in fre was estimated at Rs. 2,023.01 Lakh by the management. Pending the settlement of claim, amount of Rs. 83.68 Lakh, being estimated amount of reduction in the claim, was charged to the statement of proft and loss as "loss by fre" and the balance amount of Rs. 1939.33 Lakh was included in 'Insurance claims lodged' in Other current assets. During the current year, after considering the expenditure incurred on repairs to plant and equipment of Rs. 648.57 Lakh, repairs to buildings of Rs. 455.75 Lakh and other expenses, net of realization from sale of scrap, the amount on account of fre loss stood at Rs. 3,021.76 lakhs. The Company has received fnal settlement claim amount of Rs. 2,987.09 Lakh, excluding the claim on account of loss of proft. The loss of Rs. 34.67 Lakh on fnal settlement of the claim is charged to the statement of proft and loss as "loss by fre'.'

7. Earnings in foreign Exchange - Rs. Nil (previous year - Rs. Nil)

8. GONTINGENT LiABiLiTIES

In respect of VAT matters - Rs. 59.09 Lakh (previous year Rs. 93.39 Lakh)

The Company had received Himachal Pradesh VAT orders for the financial years 2012-13 and 2013-14 levying penalty for delayed payment of VAT aggregating to Rs. 112.87 Lakh. The Company had filed appeals before the first appellate authority During the current year, the Company has received appellate order for the year 2013-14 confirming the levy of penalty and the Company is in the process of filing further appeal against the said order. However, the Company has estimated the amount of penalty which may be ultimately sustained at Rs. 53.78 and provision for the same is made during the current year. After adjusting the amount of Rs. 23.35 Lakh paid against the demands, the balance amount of Rs. 30.43 Lakh is carried forward as "Provision for sales tax dispute" in note no. 13.

9. COMMITMENTS

(a) Estimated amounts of contracts remaining to be executed on capital account, net of advances - Rs. 9,486.70 Lakh (previous year Rs. 1,078.81 Lakh)

(b) Amount of customs duty exemption availed under EPCG Scheme for which export obligations are reguired to be fulfilled within stipulated period - Rs. 1,997.83 Lakh (previous year Rs. 1,212.64 Lakh)

10. During the previous year, the Income-tax authorities have carried out survey proceedings u/s 133A of the Income-tax Act, 1961 at the Company's corporate office and factory premises. The Company had made detailed submissions on various issues raised during the course of survey proceedings and does not expect any material demand in this connection.

11. The Company's significant leasing arrangements are in respect of operating lease for office / residential premises. The lease agreements are for a period of 11 to 60 months. The aggregate lease rentals are charged as "Rent" in the Statement of Profit and Loss.

12. The Company is engaged in the business of manufacture of Wind Turbine Generators ("WTGs") and also provides related erection & commissioning services, which is considered as a single business segment. Further, all the activities of the company are in India and hence there is a single geographical segment.

13. EMPLOYEE BENEFITS

a) Defined Contribution Plans: Contribution to Provident fund & Other funds of Rs. 126.62 Lacs (Previous year 111.37 Lacs) is recognized as an expense and included in 'Contribution to Provident & Other Funds' in the Statement of Profit and Loss.

14. RELATED PARTY DiSGLOSURES

(i) Where control exists :

Gujarat Fluorochemicals Limited (GFL) - Holding Company Inox Leasing & Finance Limited - Ultimate Holding Company Inox Wind Infrastructure Services Limited(IWISL) - Subsidiary Company Marut Shakti Energy India Limited- Subsidiary of IWISL (w.e.f. 13/09/2013)

(ii) other Related parties with whom there are transactions during the year

Key Management personnel (KMp)

Mr. Devansh Jain - Whole-time director

Mr. Rajeev Gupta - Whole-time director

Fellow Subsidiaries

Inox Renewables Limited (IRL) - subsidiary of GFL Inox Renewables (Jaisalmer) Limited- subsidiary of IRL Inox Leisure Limited(ILL) - subsidiary of GFL Satyam Cineplexes Limited- subsidiary of ILL

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