Notes to Accounts of Websol Energy Systems Ltd.

Mar 31, 2018

Note 1. : Corporate information

Websol Energy Systems Limited ("the Company") is a public limited entity incorporated in India and is engaged in the business of manufacturing Solar Photo-Voltaic Cells and Modules.

Its registered office is situated at 48, Pramatha Choudhury Sarani, Plot No 849, Block - P, 2nd Floor, New Alipore, Kolkata (West Bengal). The financial statements for the year ended 31st March, 2018 were approved for issue by the Board of Directors on 11th June, 2018.

Note 2. : Use of estimates and judgements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could 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 the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The 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.

(i) Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in a change in depreciation expense in future periods.

(ii) Fair value measurement

When the fair value of financial 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. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(iii) Provisions and contingent liabilities

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take a number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.

Notes:

1. Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option.

2. Leasehold Land of Falta SEZ unit has been acquired under a lease of 1 5 years with a renewal option.

3. Refer note no. 18 (i) and (ii) for assets hypothecated as security for borrowings.

(d) The Company has only one class of equity shares having a par value of H10/- per Equity share. Each holder of equity shares is entitled to vote one per equity share held. All equity shares rank pari passu with respect to the dividend, voting rights and other terms. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of the liquidation of the company, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of securities:

i) Term loan (Facility A and Facility B) from bank was secured by way of first pari passu charge on the entire property, plant and equipments of the Company situated at the Falta SEZ Unit and second pari passu charge on the entire current assets of the Company and guaranteed by Managing director and corporate guarantee of the promoter company.

ii) Term loan from Invent is primarily secured by way of first pari passu charge on mortgage / hypothecation over 90 MW property, plant and equipment including land of Falta unit measuring 28,576. 84 sq mts. Along with that, the loan is collaterally secured by way of first pari passu on the equitable mortgage of industrial plot at Sector V, Salt lake electronics complex measuring 1.06 acre on pari passu basis.

Nature of securities:

(i) Working capital loan from the bank is secured by way of a first pari passu charge on the entire current assets of the Company and second pari passu charge on the entire property, plant and equipments of the Company situated at Falta SEZ Unit and guaranteed by Managing director and corporate guarantee of the promoter company.

(ii) Machinery purchase loan is secured by way of hypothecation of respective machinery so procured.

(iv) The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals.

(v) The company''s product namely Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

*Company has paid Rs. 55 Lakhs under protest and appeal has been filed against the demand raised by the department

**The Company has paid Rs. 100 Lakhs against this demand in the year 2004-05

3. The company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31 March 2018 as micro, small and medium enterprises. Consequently, the amount due to micro and small enterprises as per requirement of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 is Nil (31st March 2017 - Nil, 1st April 2016 - Nil).

4. Operating segment

The Company is primarily engaged in only one product line i.e., Solar Photo-Voltaic Cells and Modules. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per requirements of Accounting Standard (Ind AS- 108) on operating segment. Further, the Company operates only in India, hence additional information under geographical segments is also not applicable. The Director of the Company has been identified as the Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker also monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

5. Foreign currency convertible bonds (FCCB) of the company was settled with the Bond Holders and the total amount of outstanding FCCB’s for $ 16.8 million plus accrued and penal interest on default made by the Company was settled for $ 12 million. A supplementary trust deed was executed between the Company, Bond holder and the trustees for the bonds on 7th december, 2016. Profits arised out of the settlement on account of the principal amount of loan was transferred to capital reserve and profit arised on account of exchange fluctuation was transferred to Statement of profit and loss.

6. Employee Benefits :

As per Indian Accounting Standard - 19 " Employee Benefits", the disclosures of Employee Benefits is as follows:

Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Corporation are considered as defined contribution plan.

7. Details of Loan, guarantee and Investments covered under section 186 (4) of the Companies Act, 2013 :

All loans and securities as disclosed in respective notes are provided for business purposes. The Company has not given any guarantee during the year.

8. Disclosure under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

There are no transactions which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

9. Lease disclosure Finance lease taken

The Company’s significant leasing arrangements is in respect of financial leases for factory in salt lake and falta. Leasehold land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option and Leasehold land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option. The aggregate lease rentals payable are charged as ''Rent’ under note no. 33.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

e) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense has been recognized in current year and previous year for bad or doubtful debts in respect of the amounts owed by related parties.

f) The remuneration of directors is determined by the Nomination & Remuneration Committee having regard to the performance of individuals and market trends.

g) Figures in brackets-( ) represents for year ended 31st March, 2017 and [ ] represents as at 1st April, 2016.

B. Fair value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, loans and other current financial assets, short term borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

Financial assets and financial liabilities measured at fair value on a recurring basis as at 31st March, 2018 Nil (31st March, 2017 : Nil, 1st April, 2016 : Nil).

1. Financial risk management objectives and policies

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company is exposure to credit risk from its operating activities primarily trade receivables with exchanges and from its financing activities including deposits placed with bank and other financial instruments/assets. Credit risk from balances with bank and other financial instrument is managed in accordance with company’s policies.

Credit risk arising from balances with banks and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognized financial institutions with high credit ratings assigned by credit rating agencies.

Loans and other financial assets measured at amortized cost includes loans to related parties, security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per company’s established policy, procedure and control related to credit risk management. Credit quality of the customer is assessed based on his previous track record and funds & securities held by him in his account and individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each balance sheet date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss. The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of financial assets.

The Company assesses and manages credit risk of financial assets on the basis of assumptions, inputs and factors specific to the class of financial assets. The Company provides for expected credit loss on Cash and cash equivalents, other bank balances, investments, loans, trade receivables and other financial assets based on 12 months expected credit loss/life time expected credit loss/ fully provided for. Life time expected credit loss is provided for trade receivables.

Expected credit loss for trade receivables under simplified approach

In respect of trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company’s trade receivables has low credit risk. Further, historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible. Hence, no loss allowances using life time expected credit loss mode is required.

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

The tables below summarize the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

(c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market rate risk comprises of currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

Foreign currency risk

Foreign currency risk is the risk of impact related to fair value of future cash flows if an exposure in foreign currency, which fluctuate due to change in foreign currency rate. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated borrowings and trade payables. The foreign currency risk is unhedged.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rate.

i) Liabilities

The Company’s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company has no variable rate borrowings.

ii) Assets

The company’s fixed deposits and loans are carried at fixed rate. Therefore, these are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Price risk

Price risk is the risk that the fair value of financial instrument will fluctuate due to change in market traded price.

The Company’s exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

10. Capital Management Risk management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share-holders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders and maintain an optimal capital structure to reduce the cost of Capital.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition 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 (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.

* Net debt = non-current borrowings current borrowings current maturities of non-current borrowings interest accrued -cash and cash equivalents.

11. First-time Adoption of Ind AS

(i) These financial statements, for the year ended 31st March, 2018, are the first financial statements, the Company has prepared in accordance with Ind AS.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ended 31st March, 2018, together with the comparative figures for the year ended 31st March, 2017, as described in the summary of significant accounting policies [Refer Note No.2-3].

The Company has prepared the opening Balance Sheet as per Ind AS as of 1st April, 2016 (the transition date) by:

a. recognising all assets and liabilities whose recognition is required by Ind AS,

b. not recognising items of assets or liabilities which are not permitted by Ind AS,

c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and

d. applying Ind AS in measurement of recognized assets and liabilities.

(iii) Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in the financial statements:

a) "Property, plant and equipment and Intangible assets were carried in the Balance Sheet prepared in accordance with previous GAAP as on 31st March, 2016. Under Ind AS, the Company has elected to regard such carrying values as deemed cost at the date of transition.

b) Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

(iv) In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017 are detailed below:

a) Under previous GAAP financial instruments i.e., loan given and borrowings taken which is non-current in nature, were initially recognized at transaction price. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of asset / liability.

b) Under previous GAAP, rent on finance lease is charged to profit and loss account under the head "Other expenses". Under Ind AS, lease obligation is recognized as at transition date is calculated as present value of future minimum lease rentals and difference of lease rent and present value of respective year lease obligation is charged to profit and loss under the head "Finance cost". Further, premium paid for finance lease is amortised over the period of lease.

c) Under previous GAAP loans is carried at cost. Under Ind AS, loan has been carried at fair value considering expected credit losses.

d) Under previous GAAP investments is carried at cost, however, provision can be made on permanent decline in the value of investments. Under Ind AS, non-current investments is carried at fair value.

e) Retained earnings and statement of profit and loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

f) Under Ind AS, there is no impact on cash flow statement.

12. Standards issued but not yet effective:

The standard issued, but not yet effective up to the date of issuance of the Company financial statements is disclosed below. The Company intends to adopt this standard when it becomes effective.

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued in February 2015 and establishes a five step model to account for revenue arising from contracts with customer. Under Ind AS 115 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after 1st April 2018. The Company will adopt the new standard on the required effective date. During the current year, the Company performed a preliminary assessment of Ind AS 115, which is subject to changes arising from a more detailed ongoing analysis.

13. The previous year’s including figures as at the date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2016

b. Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of Rs 10/- per Equity Share. Each holder of equity shares is entitled to one vote per equity share held. All equity shares ranks pari passu with respect to the dividend, voting rights and other terms. The Dividend proposed, if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding .

c. 60,69,422 (27.62%) No. of Equity Shares of the company are held by promoter and the promoter group as on 31st March 2016

e. 99,86,533 nos. of Equitiy Shares of Rs.10/- each fully paid issued by way of Bonus Shares in financial year 2009-10

Notes :

1. Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option.

2. Leasehold Land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option.

3 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the five Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has been assigned to an ARC(Invent Assets and Reconstruction Co Pvt Ltd) being intimated to the company vide their letter dated 17.02.2016 and Dena Bank has assigned its credit facilities in favour of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank and Allahabad Bank have been transferred in the name of ARCIL and Invent Assets and Reconstruction Co Pvt Ltd.

4 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to inability of the company to make payment for the same.

5 Terms of repayment of term loans from Banks is as follows : Due to adverse financial position of the Company could not meet its repayment obligation, now the Company is in process of settling all the dues of banks.

6 The Company has completed the process of netting off of its imports and exports with the same party to the extent of 230.82 Lacs USD. The balance amount of approximately 79.70 Lacs USD is in process for applying to the AD banker for netting off.

7 Capital Contracts not provided for Rs.1593.60 Lacs stands unexecuted and cancelled by the company (Previous period Rs.1593.60 Lacs). Total Advances paid there against Rs 457.10 Lacs including Rs.346.15 Lacs in foreign currency (Previous period Rs.553.03 Lacs including Rs.345.75 Lacs in Foreign Currency) are still lying with the creditors and company is in the process of recovery of these amounts.

8 Contingent Liabilities -

(a) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(b) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

9 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

10 (a) As the Company has incurred losses in the current year, both as per statement of Profit & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

11 Amounts paid / payable to Statutory Auditors -

(a) Audit fees Rs.3.15 Lacs (Previous period Rs.2.85 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.0.55 Lacs (Previous period Rs.0.50 Lacs) plus the applicable service tax.

12 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confirmation and reconciliation with respective parties.

13 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

14 A Creditor has filed a suit against the company before honourable high court at Kolkata for recovery of '' 20 lacs. The company is fighting the case and if it goes against the company, the company will be liable to pay the said amount of Rs.20.00 lacs and other charges as may be determined by the court.

15 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2015

1 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the fi ve Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has taken symbolic possession of the Salt Lake land which was given as collateral security against the Working Capital loans. Further Dena Bank has assigned its credit facilities in favor of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank fund have been transferred in the name of ARCIL.

2 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to the stipulation of the Working Capital Lenders in this regard, under the scheme of OTS.

3 The Company has recognized diminution in the value of certain fi xed assets pertaining to the erstwhile factory situated at Salt Lake and also installed at falta plant and as such discarded the obsolete / unusable fi xed assets having the cost of Rs..5759.10 Lacs and accumulated Depreciation of Rs. 1988.07 Lacs.

4 The Company is in the process of making third party adjustments / netting off on account of certain imports and exports from a same party. A part of netting off is complete to the extent of $ 9661825.97 of exports and $ 9666691.90 of imports and therefore debtors and creditors amounting $ 9666691.90 has been netted off in balance sheet as on 31.03.15. As such, there are balance amounts on account of same Sundry Debtors & Sundry Creditors which shall be adjusted against each other subject to the receipt of pending approval by the company in this regard from the concerned authorities.

5 Capital contracts not provided for Rs. 1593.60 Lacs stands unexecuted and cancelled by the company (Previous period Rs. 1593.60 Lacs). Total Advances paid there against Rs. 457.10 Lacs including Rs. 346.15 Lacs in foreign currency (Previous period Rs. 553.03 Lacs including Rs. 345.75 Lacs in Foreign Currency) are still lying wih the creditors and company is in the process of recovery of these amounts.

6 Contingent Liabilities –

(a) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. T e same shall be accounted for as and when any claim occurs.

(b) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

(c) Demand of Rs. 8.96 Lacs against Interest and other payments on TDS by Income Tax Department.

7 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

8 (a) As the Company has incurred losses in the current year, both as per statement of Profi t & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that suffi cient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

9 Amounts paid / payable to Statutory Auditors –

(a) Audit fees Rs. 2.85 Lacs (Previous period Rs. 2.65 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certifi cation work Rs. 0.50 Lacs (Previous period Rs. 0.50 Lacs) plus the applicable service tax.

10 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confi rmation and reconciliation with respective parties.

11 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

12 Since the accounting year of the Company is from 01st April, 2014 to 31st March, 2015 these accounts are for a period of twelve months and the figures thereof are comparable with those of previous period which was also for twelve months i.e., 01st April, 2013 to 31st March, 2014.

13 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2014

A. Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per Equity Share. Each holder of equity shares is entitled to one vote per equity share held. All equity shares ranks pari passu with respect to the dividend, voting rights and other terms.The Dividend proposed, if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

B. 60,69,422 (27.62%) No. of Equity Shares of the company are held by promoter and the promoter group as on 31st March 2014

C. 99,86,533 nos. of Equitiy Shares of Rs.10/- each fully paid issued by way of Bonus Shares in financial year 2009-10.

2 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the five Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has taken symbolic possession of the Salt Lake land which was given as collateral security against the Working Capital loans. Further Dena Bank has assigned its credit facilities in favor of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank fund have been transferred in the name of ARCIL.

3 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to the stipulation of the Working Capital Lenders in this regard, under the scheme of restructuring.

4 The Company has procured certain additional production equipments during the year from M/s Renesola Singapore Pte. Ltd. under the instalment purchase scheme. The said machines are hypothecated to Renesola Singapore Pte. Ltd. vide an agreement executed between the two Companies.

5 The Company has recognized diminution in the value of certain fixed assets pertaining to the erstwhile factory situated at Salt Lake and as such discarded the obsolete / unusable fixed assets having the cost of Rs. 415.61 Lacs and accumulated Depreciation of Rs. 232.70 Lacs.

6 The Company is in the process of making third party adjustments / nettng off on account of certain imports and exports. As such, there are certain amounts on account of Sundry Debtors & Sundry Creditors which shall be adjusted against each other subject to the receipt of necessary approval by the company in this regard from the concerned authorities.

7 (a) Estimated amounts of Capital Contracts as at 31st March, 2014 and not provided for Rs.1593.60 Lacs (Previous period Rs. 1330.96 Lacs). Total Advances paid there against Rs.553.03 Lacs including Rs.345.75 Lacs in foreign currency (Previous period Rs.694.91 Lacs including Rs.345.75 Lacs in Foreign Currency).

(b) Certain Advances, included above, amounting to Rs.542.62 Lacs (previous period Rs.542.62 Lacs) are lying unmoved for a considerable period.

8 Contingent Liabilities -

(a) Outstanding Bank Guarantees Rs.10.00 Lacs (Previous period Rs.46.27 Lacs)

(b) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(c) Demands against the company not acknowledged as debts Rs.939.61 Lacs (Previous period Rs.1029.95 Lacs)

(d) Outstanding Capex Letter of Credits Rs.Nil (Previous period Rs. 4169.47 Lacs) for import of Capital Goods, since crystallized and debited to CC Account.

(e) Demand against the legal expenses and interest by HDFC Bank against their Outstanding Working Capital Loan.

(f) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

(g) Demand of Rs.8.96 Lacs against Interest and other payments on TDS by Income Tax Department.

9 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

10 (a) As the Company has incurred losses in the current year, both as per statement of Profit & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

10 Amounts paid / payable to Statutory Auditors -

(a) Audit fees Rs.2.65 Lacs (Previous period Rs.2.00 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.0.50 Lacs (Previous period Rs.0.36 Lacs) plus the applicable service tax.

11 Miscellaneous Expense includes an amount of Rs.53.14 Lacs as Tolling Charges of Modules, invoices for which were raised by the party during the preceding period.

12 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confirmation and reconciliation with respective parties.

13 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

14 Since the accounting year of the Company is from 01st April, 2013 to 31st March, 2014 these accounts are for a period of twelve months and the figures thereof are not comparable with those of previous period to that extent which was for nine months i.e., 01st July, 2012 to 31st March, 2013.

15 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2013

1. The Company has incurred losses during the current financial period as well as the last financial period due to significant decline in the global prices of the raw materials and finished goods. As a consequence the working capital as well as the term loan credit facilities of the Company were restructured by a majority of the lenders on bilateral basis during the last financial period. Three working capital lenders ie. Standard Chartered Bank, Dena Bank and HDFC Bank did not consent to restructure the working capital facilities even as on the date of Balance Sheet under review. As on the date of the Balance Sheet all the working capital lenders viz. Allahabad Bank, The Federal Bank, Standard Chartered Bank, Dena Bank and HDFC Bank to the Company have classified the Company''s borrowings accounts with them as Non Performing Assets (NPA).

2. WCTL/FITL of Working Capital Lenders was considered as Long Term Borrowing in preceding period and the same is now considered as Short Term Borrowings for the current financial period.

3. During the period under review the Company had filed a reference with the Board for Industrial & Financial Reconstruction (BIFR) in view of the complete erosion of Net Worth as on the date of last Balance Sheet. The said reference has been registered by BIFR during the period under review.

4. Estimated amounts of Capital Contracts as at 31st March, 2013 and not provided for Rs. 1330.96 Lacs (Previous period Rs. 2013.93 Lacs). Total Advances paid there against Rs. 694.91 Lacs including Rs. 345.75 Lacs in foreign currency (Previous period Rs. 639.93 Lacs including Rs. 345.20 Lacs in Foreign Currency)

5. Contingent Liabilities –

(a) Outstanding Bank Guarantees Rs. 46.27 Lacs (Previous period Rs. 184.32 Lacs)

(b) Outstanding Letter of Credit Rs. Nil Lacs (Previous period Rs. 70.00 Lacs)

(c) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(d) Demands against the company not acknowledged as debts Rs. 1029.95 Lacs (Previous period Rs.1029.95 Lacs)

(e) Outstanding Capex Letter of Credits Rs. 4169.47 Lacs (Previous period Rs. 4,667.08 Lacs) for import of Capital Goods

6. Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the period under reporting.

7. Since there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset, which may be realized, has not been considered in these accounts.

8. Amounts paid / payable to Auditors –

(a) Audit fees Rs. 2,00,000/- (Previous period Rs. 3,12,500/- ), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs. 36,000/- (Previous period Rs. 62,500/) plus the applicable service tax.

(c) For Audit under section 44AB of the Income Tax Act, 1961 to other firm of Chartered Accountants Rs. 60,000/- (Previous period Rs.93,750/-), plus the applicable service tax.

9. Balances of Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation with respective parties.

10. Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

11. Since the accounting year of the Company is from 01st July 2012 to 31st March 2013, these accounts are for a period of nine months and the figures thereof are not comparable with those of previous period to that extent which was for fifteen months i.e., 01st April 2011 to 30th June 2012.

12. Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current period figures.

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Jun 30, 2012

A.Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of 10/- per Share. Each holder of equity shares is entitled to one vote per share held. All shares ranks pari passu with respect to the dividend, voting rights and other terms.The Dividend Proposed, if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding .

b. 80,69,422 (36.72%) No. of Equity Shares of the company are held by promoter and the promoter group as on 30th June 2012

Notes:

1: Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option. 2: Leasehold Land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option.

2. The Company has incurred substantial losses during the period under report due to significant downturn in the global solar market, abrupt and unprecedented decline in the inventory prices and the high volatility in the foreign exchange rates. This severely impacted the cash flow position of the company and prompted the company to approach the lenders for restructuring of its debts. At the request of the Company the lead Bank of the Company i.e., Allahabad Bank, approved and sanctioned the restructuring scheme, under bilateral restructuring, on 27th March, 2012. Under the debt restructuring scheme, the existing Term Loans have been restructured whereby the term of repayment has been extended till 31st December, 2020 and rates of interest have been linked to the Base Rates of the Banks. The existing irregularity in the working capital facilities have been carved out and converted into working capital term loans with the repayment commencing from 31st October, 2013. In addition, the interest on such facilities w.e.f. 01st October 2011 till 30th September 2013 shall be funded by way of Funded Interest Term Loan which is repayable from 31st October 2013. As on the Balance Sheet date three working capital provider Banks viz., Standard Chartered Bank, Dena Bank and HDFC Bank and one term lender viz., EXIM Bank have not restructured the credit facilities.

3. Estimated amounts of Capital Contracts as at 30th June, 2012 and not provided for Rs. 2013.93 Lacs (Previous period Rs. 5508.73 Lacs). Total Advances paid there against Rs.639.93 Lacs including Rs.345.20 Lacs in foreign currency (Previous period Rs.952.73 Lacs including Rs.313.63 Lacs in Foreign Currency)

4. Contingent Liabilities -

(a) Outstanding Bank Guarantees 184.32 Lacs (Previous period Rs. 97.55 Lacs)

(b) Outstanding Letter of Credit Rs.70.00 Lacs (Previous period Rs.271.02 Lacs)

(c) Outstanding Bills Discounted with Banks Rs. Nil Lacs (Previous period Rs. 2,343.91 Lacs)

(d) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(e) Demands against the company not acknowledged as debts 1029.95 Lacs (Previous period Rs. 763.60 Lacs)

(f) Outstanding Capex Letter of Credits Rs.4667.08 Lacs (Previous period Rs. 4,327.50 Lacs) for import of Capital Goods

5. Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts due to them as at the end of the period under reporting.

6. Since there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset, which may be realised, has not been considered in these accounts.

7. The cash flows prepared by the management and approved by the Banks as per the restructuring scheme were based on the current prices and have been considered for impairment assessment. Based on such analysis, the cash flow projections do not indicate impairment as at the Balance Sheet date.

8. Amounts paid / payable to Auditors -

(a) Audit fees Rs.3,12,500/- (Previous period Rs. 1,50,000/-), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.62,500/- (Previous period Rs.37,500/) plus the applicable service tax.

(c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.93,750/- (Previous period Rs.50,000/-), plus the applicable service tax.

9. Balances of Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation with respective parties

10. Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

11. Since the accounting year of the Company is from 01st April 2011 to 30th June 2012, these accounts are for a period of fifteen months and the figures thereof are not comparable with those of previous period to that extent which was for nine months (i.e., 01st July 2010 to 31st March 2011)

12. The financial statements for the nine months ended 31st March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statement for fifteen months period ended 30th June 2012 are prepared as per Revised Schedule VI. Accordingly, the previous period figures have also been reclassified to conform to this period's classification. The adoption of Revised Schedule VI for previous period figures does not impact recognition and measurement.

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Mar 31, 2011

Estimated amounts of Capital Contracts as at 31st March, 2011 and not provided for Rs.5508.73 Lacs (Previous period Rs.4269.14 Lacs). Total Advances paid there against Rs.952.73 Lacs including Rs.313.63 in foreign currency (Previous period ^425.85 Lacs in Foreign Currency)

Contigent Liablities

a) Outstanding Bank Guarantees Rs.97.55 Lacs (Previous period Rs.217.92 Lacs).

b) Outstanding letters of Credit Rs.271.02 Lacs (Previous period Rs.2,336.44 Lacs).

c) Outstanding Bills Discounted with banks Rs.2,343.91 Lacs (Previous period Rs.3,323.10 Lacs).

d) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

e) Demands against the company not acknowledged as debts Rs.763.60 lacs (Previous period Rs.739.70 Lacs).

f) Outstanding Capex Letter of Credits Rs.4,327.50 Lacs (Previous period Rs. NIL) for import of Capital Goods.

2. The Company has called back a substantial part of the investment made in the erstwhile Joint Venture named Micro Power Trading Co. Pte Ltd during the period.

3. The amount remaining in the Investment in the Equity Share Capital of Micro Power Trading Co. Pte Ltd, the erstwhile Joint Venture Company based at Singapore, being non-monetary item, no exchange fluctuation has been provided there-for as at the period end.

4. The outstanding Unsecured Loans of US$ 10.582 mn paid to Micro Power Trading Co. Pte Ltd, Singapore against the silicon wafer supply contract has been converted into trade advances during the period which will be adjusted against the monthly supplies of raw materials.

5. The Company has issued convertible warrants amounting to Rs.3000.00 Lacs during the last accounting period to Promoter Group Company and Strategic Investor. The Company has in the last accounting period received upfront application money for warrants from the Promoter Group Company and in the reporting period has received there-against the balance amount against which Equity Shares amounting to Rs.750.00 Lacs (including securities premium) were allotted upon conversion to the said Promoter Group Company.

6. Application money amounting to T282.00 lacs received from the strategic investor against convertible warrants and remaining un-allotted upon their non exercise of the option to convert the said warrants into Equity Shares within a period of 18 months from the date of allotment of warrants has been forfeited.

7. During the period under review, the Company has started the commercial production of its 30MW unit situated at Falta SEZ by the up-gradatlon of its earlier 10MW unit by adding new machines. Now the total annualised production capacity of the Company stands at 60MW.

8. The Company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006. To the extent identified, there are no Micro, Small and Medium concerns whose payments have been outstanding for a period exceeding the prescribed time as per the said Act. Further the Company has no information from the other suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

9. Provision for Deferred Tax Liabilities has been made as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India. According thereto, the Company has no deferred tax assets at the period end. The deferred tax liability at the period end is on account of difference of carrying amount of fixed assets in the financial statements and the income tax computation.

10. Impairment in the carrying value of the fixed assets as at the Balance Sheet date has not been ascertained pending detailed review and technical evaluation in this respect. The Company intends to get the said review carried by independent valuer/ consultant and adjustment, if any, will then be made in the accounts.

Sundry Debtors over six months includes Rs.69.18 lacs (Previous year T69.46 lacs) outstanding from certain buyers for a considerable period. In the opinion of the management these will be recovered in due course and as such no provision is considered necessary in this respect.

Miscellaneous Expenditure comprises of expenditure incurred on raising long term funds for the Company and is being written off in five egual annual installments in the books of account.

a) Audit fees Rs.1,50,000/- (Previous year Rs.2,50,000/-), plus the applicable service tax.

b) In other capacity in respect of certification work Rs.37,500/- (Previous year Rs.62,500/) plus the applicable service tax.

c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.50,000/- (Previous year Rs.50,000/-), plus the applicable service tax.

Balances of Debtors, Creditors, certain Bank balances, Loans and Advances etc are subject to confirmation and reconciliation with respect to parties.

Information pursuant to the Provisions of Paragraphs 3, 4(c) & 4(d) of part II of the Schedule VI of the Companies Act, 1956.

Since the Company is dealing in only one product i.e., Solar PV Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

Since the accounting year of the Company was from 01st July 2010 to 31st March 2011, these accounts have been prepared for a period of nine months and the figures thereof are not comparable with those of previous year to that extent.

The expenses relating to the previous period amounting to Rs.44.53 lacs have been debited to the respective expenditure account heads during the period under review.

Previous years figures are regrouped / rearranged wherever necessary,

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Jun 30, 2010

1. Estimated amounts of Capital Contracts as at 30th June, 2010 and not provided for Rs.4269.14 Lacs (Previous year Rs.732.74 Lacs). Total Advances paid there against Rs.425.85 Lacs in foreign currency (Previous year Rs.483.23 Lacs, including Foreign Currency Rs.472.93 Lacs)

2. Contingent Liabilities –

a) Outstanding Bank Guarantees Rs.217.92 Lacs (Previous year Rs.192.92 Lacs)

b) Outstanding letters of Credit Rs.2,336.44 Lacs (Previous year Rs.1,861.84 Lacs)

c) Bills Discounted with banks Rs.3,323.10 Lacs (Previous year Rs.3,538.49 Lacs)

d) The Companys product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs. e) Demands against the not acknowledged as debts Rs.739.70 lacs (Previous year Rs.467.76)

3. A Joint Venture with M/s Micro Power Trading Co. Pte Ltd, Singapore formed during the year 2008 for sourcing of Silicon Ingots/ Wafers has since been withdrawn and the Company has initiated steps to call back the investment made in the Joint Venture.

4. A three year contract was entered into with the said M/s Micro Power Trading Co. Pte Ltd, Singapore for supply of Silicon Wafers against which an amount of Rs.1,040.73 Lacs (Previous Year Rs.5,197.03 Lacs) is lying as advance deposit with them and will be adjusted in due course.

5. Investment in the Equity Share Capital of Micro Power Trading Co. Pte Ltd, the erstwhile Joint Venture Company based at Singapore, being non-monetary item, no exchange fluctuation has been provided therefore as at the year end.

6. The Company has issued convertible warrants amounting to Rs.3000.00 Lacs during the year to Promoter Group Company and Strategic Investor. It has received there-against an amount of Rs.1591.50 Lacs out of which Equity Shares amounting to Rs.1122.00 Lacs (including securities premium) were allotted upon conversion.

7. Application money received against convertible warrants allotted during the period and remaining outstanding as at the Balance Sheet date has been shown under the head Reserves and Surplus.

8. The Company has issued fresh equity shares by way of Qualified Institutional Placement ("QIP") amounting to Rs.4540.00 Lacs during the period and 20,00,000 Equity Shares there-against have been issued to the Qualified Institutional Buyers.

9. The proceeds of Qualified Institutional Placement ("QIP") have been used by the Company for for augmenting its working capital.

10. The Company has issued Bonus Shares in the ratio of 1:1 during the period.

11. During the period under review, the Company has started the commercial production of its 30MW unit situated at Falta SEZ. However a major break-down happened during the month of March and April 2010 thereby affecting revenues of the last two quarters.

12. The Company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006. To the extent identified, the Company has no information from the suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

13. Provision for Deferred Tax Liabilities up to last year was made as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India. According thereto, the Company has no deferred tax assets at the year end. The deferred tax liability at the year end is on account of difference of carrying amount of fixed assets in the financial statements and the income tax computation up to last year. Since the Companys unit is situated at Falta SEZ, the provision for deferred tax liability has not been made for the current year. The existing provision shall be adjusted at appropriate time.

14. Impairment in the carrying value of the fixed assets as at the Balance Sheet date has not been ascertained pending detailed review and technical evaluation in this respect. The Company intends to get the said review carried by independent valuer / consultant and adjustment, if any, will then be made in the accounts.

15. Sundry Debtors over six months includes Rs.69.46 lacs (previous year Rs.134.44 lacs) outstanding from certain buyers for a considerable period. In the opinion of the management these will be recovered in due course and as such no provision is considered necessary in this respect.

16. Miscellaneous Expenditure comprises of expenditure incurred on raising long term funds for the Company and is being written off in five equal annual installments in the books of account.

17. Amounts paid / payable to Auditors –

a) Audit fees Rs.2,50,000/- (Previous year Rs.1,00,000/-), plus the applicable service tax.

b) In other capacity in respect of certification work Rs.62,500/- (Previous year Rs.25,000/-) plus the applicable service tax.

c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.50,000/- (Previous year Rs.25,000/-), plus the applicable service tax.

18. Balances of Debtors, Creditors, certain Bank balances, Loans and Advances etc are subject to confirmation and reconciliation with respect to parties.

19. Since the Company is dealing in only one product i.e., Solar PV Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

20. Since the accounting year of the Company has been extended to end on 30th June 2010, these accounts have been prepared for a period of fifteen months and the figures thereof are not comparable with those of previous year to that extent.

21. Previous years figures are regrouped / rearranged wherever necessary.