INDOSOLAR LIMITED — Annual Report 2019

Feb 19, 2020

CA GULSHAN GABA

TT

	CA GULSHANGABA
	F.C.A
	Insolvency ProfessionalReg. No. IBBI/IPA-001/IP-P00548/2017-18/10978
February 19, 2020
The Secretary	The Secretary
Corporate Relations Department	Corporate Relations Department
BSE Limited	TheNational Stock Exchange of India
P.J. Towers, Dalal Street	Ltd
Mumbai — 400001	ExchangePlaza,Bandra-Kurla
	Complex
	Bandra East, Mumbai - 400059
Dear Sir,
SUB: Outcome of Board Meeting
PursuanttoRegulation33ofRequirements) Regulations, 2015, we furnish herewith the:	SEBI(ListingObligationsandDisclosure
a.AuditedFinancialResultsof the	Companyforthequarter andNinemonths
ended December 31, 2018b.Audited financial	results of the company for the
31" March, 2019 along with the audit report	quarter and the year ended
Themeeting of theat 08:00 p.m.	Board of Directors commenced at 02:00 p.m. and concluded
You are requested to kindly take the above on record.
Thanking You,
Yours truly
For Indosolar Limited
(A Company under corporate insolvency resolution
Process by NCLT order dated 12° April, 2019RCOSgN
JS~,
S Se (GUL:
Gulshan\s,Resolution Professional "©
NewGH-13/882, PaschimRegisteredOffice:Vihar,E-mail: cagulshangaba@yahoo.comMobile:	Delhi-1100879810189050

SUB: Outcome of Board Meeting

• a. Audited Financial Results of the Company for the quarter and Nine months ended December 31, 2018
• b. Audited financial results of the company for the quarter and the year ended 31" March, 2019 along with the audit report

JS ~ , S | Se (GUL: Gulshan . \s, Resolution Professional "©

A.K.G. & ASSOCIATES Chartered Accoudtan ts

Independent Auditor's Review Report on Unaudited Standalone Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

The Resolution Professional, Indosolar Limited,

• 1. We, the Statutory Auditors, of the company have reviewed the accompanying statement of unaudited financial results of Indosolar Limited, company under CIRP ("the company"), for the quarter ended December 31, 2018 (hereinafter referred to as "the Statement") being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, read with SEBI CIR/CFD/CMD1/44/2019 dated March 29, 2019 including relevant circulars issued by SEBI from time to time. The figures related to third quarter only had been reviewed by us.
• 1. The Company had shut down its production facilities w.e.f 15th May 2018.A corporate insolvency resolution process ("CIRP") has been initiated against the company vide an order of Delhi bench of the National Company Law Tribunal (NCLT) dated April 12, 2019 under the provisions of the Insolvency and Bankruptcy Code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended as per Section 17 of the Code and such powers are exercisable by Mr. GulshanGaba, who was appointed as interim resolution professional (IRP) and was consequently continued as Resolution Professional (RP) by the Committee of Creditors (COC).

11-CSC, DDA Market, A-Block, Saraswati Vihar, DELHI-110034 Tal.: 011-27020489, 27016986, 9810046631 E-mail : akgca_1980@yahoo.com akg@akgandassociates.com www.akgandassociates.com Also at KARNAL

• 1. This Statement is responsibility ofthe company's management, since the powers of the Board have been suspended the above statement have not been adopted by Board of Directors. However, the same have been signed by Mr. H.R. Gupta, Managing Director and Mr. Anand Kumar Agarwal,Chief Financial Officer of the Company confirming accuracy and completeness of the results and taken on recordby Mr. GulshanGaba, Resolution Professional.Our responsibility is to issue a report on the statement based on our review.
• We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free from material misstatement. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters and applying analytical and other review procedures to financial data. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• In preparing the financial results, management is responsible for assessing the Company's ability to continue as going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Under section 20 of the Code, it is incumbent upon Resolution Professional to manage the operations of the Company as a going concern and the financials results have been prepared on going concern basis.

Basis for Disclaimer of Opinion

• 1. We were appointed as auditors of the Company after March 31, 2019 and thus could not observe the counting of physical inventories at the beginning and end of the quarter. Inventory records were not provided to us for checking. These were not physically verified by us.Accordingly, we were unable to satisfy ourselves by alternative means concerning the inventory quantities held at December 31, 2018 and valuation thereof.
• 1. Gross block and net block of fixed assets as per books are inconsistent with data provided in Fixed Asset register. As a result of this, we are unable to verify the written down value of fixed assets sold during the year and resultant Profit/Loss.

The impairment loss in Plant & Machinery and CWIP was based on fair value less cost of sales (realizable value) determined by a registered valuer as on 30.09.2018 and for impairment in case of building the registered valuer report as on 29.03.2018 was referred. Further, the company has not done impairment test and not booked resultant impairment loss as on 31.12.2018.

• 1. We were unable to confirm or verify balances of accounts receivable and accounts payables and their resultant effect on Profit and loss account, if any.
• 1. Interest on borrowing in respect of facilities from Corporation bank, Union bank of India and Bank of Baroda has been booked only till September and Interest on loan taken over by ARCIL not booked. Being the company under CIRP, there is difference in total interest/ penal interest / expenses / others of approximately Rs. 84,295 lakhs pertain to this year or earlier years between claims admitted by Resolution Professional and balances in books.
• 1. The Company (being an EOU) has not been able to meet its commitment under the Foreign Trade Policy on the basis of which the Company imported certain raw material, stores and spares and machineries without payment of custom duty. As on 3ist December 2018 the Company's NFE is positive by Rs. 20,387.30 lakh without considering the import value of amortization of Line-C. However, after amortization of value of line C NEF becomes negative by Rs. 12,670.59. The company is not able to achieve positive NFE during the stipulated time,

the company would be liable to duties and penalties payable in accordance with Notification No. 52/2003 Cus. Dated 31.03.2003. Presently. we are unable to assess upon the possible impact if any on the accompanying statement.

In the matter of Company's claim for eligibility of capital subsidy under SIP scheme of Govt. of India. The uncertainty exists with regard to its quantum and receipt of claim pending its appraisal by Department of Electronics & Information Technology (DEIT). In the absence of the reasonable assurance, the management has not recognized the claim.

Emphasis of Matter

We draw attention to the following matters:

• a) Note No. 1 regarding Corporate Insolvency Resolution Process(CIRP) initiated under Insolvency and Bankruptcy Code, 2016 ('the Code') and the outcome ofthe CIRP is subject to decision ofAPEX Court / NCLT.
• b) The Company has been continuously making losses, consequently its net worth is negative. This indicates the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern, However, in view of the CIRP in respect of the Company, which is in progress, the accounts have been prepared on a going concern basis [Refer Note 5 to financial results]; .
• During the year 2017-18 the Company had received the approval of One Time Settlement (OTS) Scheme from Union Bank of India (Bank) which was accounted for during FY 2017-18. During the year 2018-19, OTS has been revoked vide letter having reference no. IFB:CR: IND:2018-19/2011 dated 12.12.2018, Consequently,

Interest waived amounting to Rs. 17,389.48 lakhs up to 31.03.2017 is to be reversed and (ii) interest for the interest free period i.e. April 2017 to March 2018 (amount not ascertained) is become payable,

(iii) The bank has also withdrawn other concessions i.e. lower rate of interest charged on outstanding amount for the period from April 2018 onwards, consequential interest need to be booked (amount not ascertained) (iv) Preference Shares become due and payable immediately,

• d) Closing Stock of finished goods and raw material has been taken as nil.
• e) As per the code the RP has to receive, collate and reconcile all the claims submitted by the creditors of the company. Such claims can be admitted to the RP during the CIRP, till the approval of a resolution plan by COC. The RP has verified and admitted the claims submitted by the creditors against the company as per the Code. Pending finalization of resolution plan, the impact of such claims if any that may also have not been considered in the preparation of the financial statements.

Conclusion:

Due to the possible effects of the matters described in the Basis of Disclaimer of Opinion Paragraph, we are unable to state whether the accompanying Statements are in accordance with the Indian Accounting Standards and other accounting principles generally accepted in India and have disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015 including relevant circulars issued by SEBI from time to time, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For A.K.G. & ASSOCIATES Chartered Accountants FRN. 002688N ti an: A. : ! a ,

CA. Harvinder Singh Place: New Delhi Partner M. No. 087889 Date: 19-Feb-2020 (UDIN:20087889AAAABM1318)

INDOSOLAR LIMITED

Corporate Identification Number (CIN)- L18101DL2005PLC134879 Regd. Office: C-12, Friends Colony (East), New Dethi- 110065 Statement of Audited Financial Results for the Quarter and Nine months ended 31st December 2018 (Rs. in Lakhs)

				INDOSOLAR LIMITED
			Regd. Office: C-12, Friends Colony (East), New Dethi- 110065Corporate Identification Number (CIN)- L18101DL2005PLC134879
		Statement of Audited Financial Results for the Quarter and Nine mont				hs ended 31st December 2018
	5
	N °.			Quarter Ended			Nine Months Ended	Year Ended
	[	PARTICULARS__		31.12.2018 30.09.2018			31.12.2017 31.12.2018 31.12.2017	31.03.2018
		Revenue from operations	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	If	Other Income	0.16	118.62	5,224.32	1,322.67	26,054.78	31,412.37
	III	Total Income (I+)	6.907.06	18.69	270.18	280.17	412.73	431.15
	IV.	Expenses:		137,31	5,494.50	1,602.84	26,467.51	31,843.52
		a) Cost of Materials consumedb) Purchases of Stock-in-trade	230.11	1.79	4,406.52	1,095.99	17,267.48	21,577.99
		c) Changes in inventories of finished	-70.72	46.1762.23	267.77	143.22	3,543.35	4,401.94
		Boods, work-in-progress and stockn-trade			818.93	515.40	1,986.65	1,910.30
		d) Employee benefits expense
		e) Finance costs	23.91799.22	176.15	373.63	414.23	1,136.20	1,457.67
		f)Depreciationandamortisation	584.34	1,921.88608.05	(1,912.39)690.05	4,809.671,842.92	3,856.76	5,351.94
		expenseg) Other expenses					2,140.10	2,810.58
			(191.84)	718.31	933.96	1,438.63	3,383.16	4,203.34
	V_	Total Expenses (IV) Profit / (Loss)before exceptional	1,516.46	3,534.58	5,578.47	10,260.06	33,313.70}	41,713.76
		tems and tax (IH - IV)	(1,509.40)
	Vi	,		(3,397.27)	(83.97)	(8,657.22)	(6,846.19)	(9,870.24)
		Pxceptional items (refer note 10)Prior Period expenses	"	(42,819.12)	9,289.04	(42,819.12)	9,289.04!	(6,410.96)
	VI	Profit / (Loss) before tax (V - Vi)	(1,509.40)
	VIN	[Tax expense		(46,216.39)		9,205.07 (51,476.34)		2,442.85 (16,281.20)
		a) Current Taxb) Deferred Tax		-		-	-	2,32
		Total Tax Expense	--	--	-	-	-	-
	IX	Net Profit/(Loss) after tax (Vil - Vill)	(1,509.40)	(46,216.39)	-	-9,205.07 (51,476.34)	-	2.32
	X	[OtherComprehensiveIncome(Loss)						2,442.85 (16,283.52)
		tems to be reclassified to profit or	-
		Oss		-	-	-	-	-
		ncome tax relating to items to bereclassified to profit or loss	-	-	-	-	-	-
		tems not to be reclassified to profit	-	2.88
		br loss			(2.96)	5.77	(8.89)	11.55
		ncome tax relating to items not to bereclassified to profit or loss	-	-	-	-	-	-
	X!	TotalComprehensiveIncome	(1,509.40)	(46,213.51)
		ComprisingProfit/(Loss) and other			9,202.11	(51,470.57)	2,433.96	(16,271.97)
		tomprehensive Income (IX + x}
Xl		bsid-upequitysharecapital(FaceValueof Rs.10/- each)	37,206.71	37,206.71	37,206.71	37,206.71	37,206.71	37,206.71
	XII	Other Equity
	XIV	Earnings per equity share (EPS) (Face						(82,859.67)
		valueofRs.10/-each)(notannualized):
		+ Basic (Rs.)	(0.41)	(12.42)
		+ Diluted (Rs.)	(0.41)	(12.42)	2.512.51	(13.84)(13.84)	0.670.67	(4.44)
								(4.44)

( oe ( poe [>

1. Corporate Insolvency Resolution Process:

As per order of Hon'ble NCLT New Delhi dated 12 April 2019 under the provisions of Insolvency and Bankruptcy Code, the company is under Corporate Insolvency Resolution Process (CIRP). Its affairs, business and assets are being managed by the Resolution Professional. As per the code the RP has to receive, collate and reconcile all the claims submitted by the creditors of the company. Such claims can be admitted by the RP during the CIRP, till the approval of a resolution plan by the CoC. The RP has verified and admitted the claims submitted by the creditors against the company as per the Code. The summary of claims filled by financial creditor, operational creditors and employees and admitted by resolution professional as on 11 December 2019 are as follows: a) Financial Creditors: Rs. 2,13,791.49

(including Bank of Baroda: Rs. 25918.78, Corporation Bank: Rs. 39576.49, ARCIL: Rs. 49974.13, Union Bank of India: Rs. 98322.09)

b) Operational Creditors: Rs. 4,360.36

c) Employees*: Rs. 256.81

* A litigation has been filed by 49 employees of the company for a claim of Rs. 399.49 with the Labour Court at Noida (UP). However, most of the said employees has also filed their claim with Resolution Professional (RP) which was admitted by RP on merits and details of which are available on website of company.

Pending finalization of resolution plan, the impact of such claims if any have not been considered in the preparation of the financial statement.

Since the creditors are shown at their carrying value and uncertainty relating to their payable amount, no further MSME interest has been provided during the year.

The Company had shut down its production facilities W.E.F 15th May,2018. As a result majority of employees gradually left the Organization. Due to lack of human resources and insufficient information, provisions and contingencies cannot be completely ascertained and provided in the books. Statutory payments made to authorities (ESI, PF, etc.) during the year 2018-19 are inconsistent with the salary amount booked for the year.

Further, the Company has continued to incur significant losses in the current quarter resulting in erosion of its net worth.

Nm As the powers of the Board of Directors have been suspended, the above statement has not been adopted by the Board of Directors. However, the same have been signed by Mr. H.R. Gupta, Managing Director and Mr. Anand Kumar Agarwal, Chief Financial Officer of the Company confirming accuracy and completeness of the results and taken on record by Mr. Gulshan Gaba, Resolution Professional.

A C4

• 1. The operation of company relates to single segment i.e, manufacturer of Solar Photovoltaic Cells.
• 1. Scheme During the year 2017-18 the Company had received the approval of One Time Settlement (OTS) 2018-19, from Union Bank of India (Bank) which was accounted for during FY 2017-18. During the year installment the Company has defaulted in payment of interest due from 31.07.2018 onwards and vide due from 30th September 2018 and onwards. Due to such default, OTS has been revoked letter having reference no. IFB:CR: IND:2018-19/2011 waived dated 12.12.2018. Consequently, Interest interest amounting to Rs. 17,389.48 lakh upto 31.03.2017 is to be reversed and (ii) interest for the bank free period i.e. April 2017 to March 2018 (amount not ascertained) is become payable, (iii) The for the has also withdrawn other concessions i.e. lower rate of interest charged on outstanding amount period from April 2018 onwards etc, (iv) the entire principal amount has become payable.

5. Going Concern:

The Company has continued to incur significant losses in the current year resulting in further erosion of its net worth. The Company's term loan payable to various lender banks become non-performing conditions/factors assets. Futher, OTS scheme approved by Union Bank of India has been revocked. These raise significant doubt about the Company's ability to continue as a going concern.

The company is under Corporate Insolvency Resolution Bankruptcy Process (CIRP) under Insolvency and 03.07.2019 Code. Invitation for expression of interest has been issued by Resolution Professional on as a result of which two Resolution Plans has been received by him which are under consideration.

Considering the above and in expectation of the successful outcome of the above proposals. The management believes and has concluded that it is appropriate to prepare the accounts on going concern basis.

The financial statements do not include any adjustments relating to the recoverability and classification of carrying amounts of the assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

• 1. In the matter of Company's claim for eligibility of capital subsidy under SIP scheme of Govt. of India, Department of Electronics & information Technology (DEIT) has since initiated the process of appraisal of the subsidy claim of the company. In the absence of the reasonable assurance, pending appraisal, the claim has not been recognized.
• 1. present The value of inventory of finished goods and raw material has been taken as nil as it is expired and its market value is zero except immaterial scrap value which cannot be determined as on date.
• 1. Policy The Company (being an EOU) has not been able to meet its commitment under the Foreign Trade machineries on the basis of which the Company imported certain raw material, stores and spares and positive without payment of custom duty. As on 31st December, 2018 the Company's NEE is by Rs. 20,387.30 lakhs without considering the import value of amortization of Line-C, However, after amortization of value of line C NEF becomes negative by Rs. 12,670.59. The company is not able to achieve positive NEE during the stipulated time, the company would be liable to duties and penalties payable in accordance with Notification No. 52/2003 Cus. Dated 31.03.2003.
• 1. Previous period figures have been regrouped/rearranged whenever considered necessary to make them comparable with current period.

a8 4 o + Pree we ' ts soe 2 pe | ORM ae - H. R. Gupta Place: Anatid:Kdmar Agarwal New Delhi Managing Director Dated: Chief Financial Officer 19-Feb-2020 DIN NO. 00297722 NI

INDEPENDENT AUDITOR'S REPORT

To the Insolvency resolution professional of Indosolar Limited (Company under CIRP)

Report on the Audit of the Financial Statements

Disclaimer of Opinion

We were engaged to audit the accompanying financial statements of Indosolar Limited, company under CIRP ("the Company"), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss (including other comprehensive income), the Statement of cash flows and the statement of changes in equity for the year then ended, and notes to accounts, including a summary of significant accounting policies and other explanatory information (herein after referred to as "Financial Statements"),

We do not express an opinion on the Financial Statements. Because of the significance of the matters described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit Opinion,

Basis for Disclaimer of Opinion

. We were appointed as auditors of the Company after March 31, 2019 and thus could not observe the counting of physical inventories at the beginning and end of the year.

Inventory records were not provided to us for checking. These were not physically verified by us.

There is a difference of Rs. 283.80 lakh in the value of closing stock as stated in audited balance sheet for the year ended 31° March 2018 and books of accounts produced before us with a corresponding difference in value of net fixed assets.

Accordingly, we were unable to satisfy ourselves by alternative means concerning the inventory quantities held at March 31, 2018 and March 31,2019 and valuation thereof,

• Gross block and net block of fixed assets as per books are inconsistent with data provided in Fixed Asset register. As a result of this, we are unable to verify the written down value of fixed assets sold during the year and resultant Profit/Loss.

There is a difference of Rs. 283.80 lakh in net fixed assets in the audited balance sheet for the year ended 31% March 2018 and books of accounts produced before us with a corresponding difference in value of closing stock.

11-CSC, DDA Market, A-Block, Saraswati Vihar, DELHI-110034 . fi Tel.: 011-27020489, 27016986, 9810046637 7 E-mail : akgca_1980@yahoo.com akg@akgandassociates.com www.akgandassociates.com Also at KARNAL

The Company has a net carrying value of Plant & Machinery of Rs. 8075.61 lakh, (ii) CWIP of Plant & Machinery Rs. 8,298.65 lakh and (iii) Buildings Rs. 4944.77 lakh as at March 31, 2019. The management had recognized an impairment loss of Rs. 42,819.12 lakh during the year based on value in use as on 30.09.2018.

The impairment loss in Plant & Machinery and CWIP was based on fair value less cost of sales (realizable value) determined by a registered valuer as on 30.09.2018 and for impairment in case of building the registered valuer report as on 29.03.2018 was referred. Further, the company has not done impairment test and not booked resultant impairment loss as on 31.03.2019,

Thus we are unable to comment on the adequacy of the impairment loss recognized during the year ended March 31, 2019 and the consequential impact, if any, on the accompanying statement.

. The Company has plant and machinery under installation, disclosed under CWIP, aggregating to Rs. 26,354.8 lakh in respect of which management has recognized an impairment loss of Rs. 18,056.14 lakh during the year ended 31st March, 2019 based on recoverable value of the assets as on 30% September determined using value in use method and is therefore dependent on the various factors considered in making projections by the management. In the absence of sufficient and appropriate audit evidence with respect to the uncertainty underlying the assumptions particularly the timing of expected imposition of anti/safeguard duty and installation of Line -C and commencement of its commercial production, used in the long term projections, we are unable to comment on adequacy of the impairment loss recognized during the year ended 31st March, 2019 and the consequential impact, if any, on the accompanying statement.

Further, the company has not done impairment test and not booked resultant impairment loss as on 31.03.2019.

• . We were unable to confirm or verify balances of accounts receivable and accounts payables included in the Balance Sheet of total amount of Rs.14.53 lakh and Rs.8570.75 lakh respectively as at March 31, 2019,
• . Balances of UBI, Bank of Baroda, Corporation Bank and ARCIL are not reconciling with the statement provided. Interest on borrowing in respect of facilities from Corporation bank, Union bank of India and Bank of Baroda has been booked only till September and Interest on loan taken over by ARCIL not booked, Being the company under CIRP, there is difference in total interest/ penal interest / expenses / others of approximately Rs. 92187 lakhs pertains to this year or earlier years between claims admitted by Resolution Professional and balances in books. ce
• . Input tax credit claimed under GST are not reconciling with books of accounts.
• . The Company (being an EOU) has not been able to meet its commitment under the Foreign Trade Policy on the basis of which the Company imported certain raw material, stores and spares and machineries without Payment of custom duty. As on 31st March,

value 2019the Company's NEE is positive by Rs. 19,140.38 lakh without considering the import becomes of amortization of Line-C. However, after amortisation of value of line C NEF during negative by Rs. 29,624.58. The company is not able to achieve positive NFE in accordance the stipulated time; the company would be liable to duties and penalties payable unable with Notification No. 52/2003 Cus. Dated 31.03.2003. Presently we are to assess upon the possible impact if any on the accompanying statement.

• Govt. In the matter of Company's claim for eligibility of capital subsidy under SIP scheme of pending of India. The uncertainty exists with regard to its quantum and receipt of claim the absence its appraisal by Department of Electronics & Information Technology (DEIT). In of the reasonable assurance, the management has not recognized the claim. Most of the vouchers and other supporting documents are not made available to us for verification.
• 1. Audit Company has not complied with companies act with respect to Secretarial Audit, cost comment and Listing Agreement. Further, in the absence of Secretarial Audit we cannot on detailed compliances of Companies Act provisions.
• 11
• . Company is under CIRP as explained in Note 45 of Notes to the Financial Statements. 12. The non adherence of IND AS as explained in Note 46 of Notes to the Financial Statements.

As a result of above matters, we were unable to determine whether any adjustments might have been found necessary in respect of assets and liabilities in the Balance Sheet, and the corresponding elements making up the Statement of Profit and Loss and Cash Flow Statement.

Emphasis of Matter

We draw attention to

• Settlement Note No. 15(1)( c ) of the financial statements regarding revocation of One Time (OTS) Scheme from Union Bank of India (Bank).Consequently, waived Interest interest amounting for to Rs. 17,389.48 lakh upto 31.03.2017 is to be reversed and (ii) ascertained) the interest free period i.e. April 2017 to March 2018 (amount not lower rate is become payable, (iii) The bank has also withdrawn other concessions i.e, onwards, of interest charged on outstanding amount for the period from April 2018 Preference consequential interest need to be booked (amount not ascertained) (iv) Shares become due and payable immediately,
• goods Note No. 9 of the financial statements regarding inventories. Closing Stock of finished and raw material has been taken as nil.
• resolution Note No. 45 regarding verification and admission of claims by RP. Pending finalization of in plan, the impact of such claims if any that may also have not been considered the preparation of the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. whole, These matters were addressed in the context ofour audit of the financial statements as a and in forming our opinion thereon, and we do not providea separate opinion on these matters.

Except for the matters described in the Basis for disclaimer of opinion and Material uncertainty related to going concern, we could not determine whether there are otherkey audit matters to communicate in our report.

Material Uncertainty related to Going Concern

• We draw attention to Note No. 44 A (iv) of notes to the financial statements relating to Going Concern. . Note No. 45 relation to Corporate Insolvency Resolution Process

In view of above uncertainties we are also unable to comment on the ability of the Company to continue as a going concern and consequential classification and adjustment to the accompanying financial statements, if any that might have been necessary had the financial Statements being prepared under liquidation basis. The extent of the effect on the resultant adjustments to the accumulated losses, assets and liabilities as at 315t March 2019 is presently not ascertainable.

Information other than financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the other information. We have not obtained the other information comprises of the financial or non-financial information (other than financial statements and the auditor's report thereon) included in an entity's annual report.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, are required to report that fact. We have nothing to report in this regard.

Management and Those Charged with Governance's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Companies (Accounts) Rules, 2015.

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

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

Auditor's Responsibility

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

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

• procedures Obtain an understanding of internal control relevant to the audit in order to design audit we are that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, also responsible for explaining our opinion on whether the Company has adequate
• accounting Evaluate the appropriateness of accounting policies used and the reasonableness of estimates and related disclosures made by management.
• accounting Conclude on the appropriateness of management's use of the going concern basis of and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists,
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

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

Report on Other Legal and Regulatory Requirements

As Central required Government by the Companies of India (Auditor's Report) Order, 2016 ("the Order") issued by the give in the Annexure a statement in terms of sub-section (11) of section143 of the Act, we Order. on the matters specified in paragraphs 3 and 4 of the

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

• to As obtain described all the in the Basis for Disclaimer of Opinion paragraph, we sought but were unable belief were necessary information and explanations which to the best of our knowledge and for the purpose of our audit;
• b) Paragraph, Due to the possible we effects of the matter described in the Basis for Disclaimer of Opinion have been kept are by unable to state whether proper books of account as required by law the Company so far as appears from our examination of those books;
• Paragraph, Due to the possible we effects of the matter described in the Basis for Disclaimer of Opinion Loss and Cash Flow are unable to state whether the Balance Sheet, Statement of Profit and of account; Statement dealt with by this Report are in agreement with the books
• qd) Paragraph, Due to the possible we effects of the matter described in the Basis for Disclaimer of Opinion with the Accounting are unable to state whether the aforesaid financial statements comply issued there under; Standards under Section 133 of the Act read with the relevant rules
• opinion, The matter may described in the Basis for Disclaimer of Opinion paragraph above, in our have an adverse effect on the functioning of the Company.
• the As informed directors by the management, neither written representations has been received from regarding as on March 31, 2019, and nor taken on record by the Board of Directors disqualification director in terms of directors as on March 31, 2019, from being appointed as a of section 164(2) of the Act. So we are unable to comment upon this. Statutory
• g) inconsistent payments made to authorities (ESI and PF) during the year 2018-19 are with the salary amount booked for the year.
• h) TDS not paid/collected not deducted on salaries and professional fees amounting to Rs. 71.3 lakhs and TCS on scrap sale of Rs. 2.7 lakhs.
• The Securities company has not complied with the following provisions of Companies Act 2013 and Requirements) and Exchange Board Of India (Listing Obligations And Disclosure Regulations, 2015
  • i. Appointment of qualified Company Secretary as the compliance officer as per Regulation 6.

rene

li. | Submission of Annual Secretarial Compliance Report.

• iii. Submission of Certificate of PCS (Regulation 40(10)).
• iv. the Submission quarter ended of unaudited quarterly financial result along for limited review report for December and March 2019.( Regulation 33)
• v. resignations. Filling of BEN -2, MSME Form-1, Active INC — 22A and Forms for directors
• vi. Appointment of internal auditor (Sec 138 of the Companies Act, 2013). vii.
• Act, Holding 2013.) of minimum number of meetings of board. (Sec 173(1) of the Companies
• viii. | Stakeholders Constitution of Audit Committee, Nomination and Remuneration Committee, transfer Committee. Relationship Committee, Risk management Committee and Share 19, 20, (Sec 177 and 178 of the Companies Act, 2013 and Regulation 21 and 40 of SEBI(LODR).
• ix. Companies Secretarial audit for the year 2018-19 (Regulation 24A and Sec 204 of the Act, 2013.) ,
• X. Application for CIRP filed on 23 October, 2018 and thereafter 3 independent submitted directors namely Mr, Vidyut Vora, Ms.Vinati Dev and Mr. Gautam Singh Kuthari has directors their resignation to company on 26" November 2018. However such form have not filed form DIR 11 with MCA and company have also not filed board DIR 12. Consequently the company has left with one director only and no approved meeting have been called or held thereafter. Further financial statements are and signed by only one director Mr. H. R. Gupta.
• xi. Cost Audit for the year 2018-19 (Sec 148 of the companies Act, 2013)

Further, in the absence of Secretarial Audit we cannot comment on detailed compliances of Companies Act provisions and Regulations of Securities and Exchange Board of India. The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Disclaimer of Opinion paragraph above.

• j)

• k) the With company respect to the adequacy of the internal financial controls over financial reporting of and the operating effectiveness of such controls, refer to our separate the report in "Annexure B". Our report expresses a disclaimer opinion on the adequacy and operating effectiveness of the company's internal financial controls over financial reporting, and internal audit has also not been taken placed by company.

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

  • i. Opinion Due to the possible effects of the matter described in the Basis for Disclaimer of paragraph, we are unable to state whether the Company has disclosed the impact of pending litigations on its financial position in its financial statements;

• Opinion Due to the possible effects of the matter described j Daragraph, Provision, we are unable to state whet as required under the applicable law or acc foreseeable losses, if any, on long term contracts inclu

• iti. There is no amount required to be transferred, Protection tc Fund by the Company. » the Investor Education and

For A.K.G. & ASSOCIATES Chartered Accountants FRN 002688N

ii : La, SR RR gg va My

Place: Delhi Date: 19-Feb-2020 UDIN: 20087889AAAABK6053

CA. HARVINDER SINGH Partner M. No. 087889

Annexure A to the Independent Auditor's Report

information On the basis and ofsuch explanationsgiven checks aS we considered appropriate and according to the to us during the course of our audit, we report that:

• 1. In respect of its fixed assets
  • (a) examination According to of the books information and explanation given to us and on the basis of however the same and records, the company has not maintained the records, situation of fixed assets, was not showing full particulars including quantitative details and are inconsistent with Also,Gross block and net block of fixed assets as per books data provided in Fixed Asset register
  • (b) There is no document is not sufficient on record staff to carry out physical verification of fixed assets and there to reflect the physical verification done of fixed assets.
• (c) According examination to of the the information and explanations given to us and on the basis of our immovable properties records of the company, the company does not have any balance sheet date. which are freehold and held in the name of company as at the improvements have In respect of immovable properties taken on lease, Lease hold lease agreement are been disclosed as fixed assets in the financial statements, the agreement as mentioned in the name of the company. However supplement lease in lease deed are not on record.
• 1. Inventory records have not been provided to us for verification.
• 1. company In our opinion has not and granted according to the information and explanations given to us, the any loans secured or unsecured to the companies/firms, liability Partnership or other limited parties listed in the register maintained under section 189 of the companies Act, 2013. .
• 1. company In our opinion has not and given according to the information and explanations given to us, the to comply with the section loans, guarantees, security or made any investments which need 185 and 186 of Companies Act, 2013.
• 1. According to the information and explanations accepted any deposit during given to us, the Company has not relevant provisions of the year within the meaning of section 73 to 76 or any other the Companies Act, 2013.
• 1. Central The Company Government is required under to maintain cost records which have been specified by the However, no cost records sub-section (1) of section 148 of companies act, 2013. have been provided to us for verification. Cost audit was not

1. (a)According to the records of the company, the company is generally not regular in depositing undisputed Statutory dues including Goods and service tax, Excise Duty, Provident Fund, ESI and other statutory dues applicable over the company.

The company has not deposited ESI & PF on salary of Rs. 62,38,544 paid after September 2018.

(b)According to the information given to us and as per the books of accounts produced before us, the company has following dues relating to Goods and service tax, sales tax, income tax, custom tax, excise duty, cess as at 31st March,2019 that have not been deposited on account of dispute:

(a)Accordingtotherecords of the company,the companydepositingundisputedStatutoryduesincludingGoodsProvident Fund, ESI and other statutory dues applicable over the company.	is generally notregularandservicetax,Excise
ThecompanyhasnotdepositedESI&PFonsalarySeptember 2018.	ofRs.62,38,544paid
(b)According to the information given to us and as per the books of accounts producedbefore us, the company has following dues relating to Goods and service tax, sales tax,income tax,customtax,excise duty,cess as at 31stdepositedon account of dispute:	March,2019 that have not been
PARTICULAR	As at March 31,2019(Rs. In lakhs)
Duty forgone demand of customs pending settlement	1,193.43
Vat (A.Y. 2014-15)	4.35
Total	1197.78

Further, in the matter of Company's claim for eligibility of capital subsidy under SIP scheme of Govt. of India. The uncertainty exists with regard to its quantum and receipt of claim pending its appraisal by Department of Electronics & Information Technology (DEIT).

• Based on our audit procedures and according to the information and explanations given to us, the Company has defaulted in repayment of dues to a financial institution or bank or debenture holders. (Refer Note 45 of notes to the financial statements)
• The company has not raised any money by way of initial public deposit offer, further public offer, debt instrument or term loans during the year.
• 1. According to the information and explanations given to us, based upon the audit procedures performed and representations made by the management, we report that no fraud on or by the Company has been noticed or reported during course of our audit
• 11, In our opinion and according to information and explanation given to us, the company haspaid/ provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
• 1. The company is not a Nidhi company and hence this clause is not applicable,
• 1. In our opinion and according to information and explanation given to us, all transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and are disclosed in the financial statements as required by the applicable accounting standards.

| wis

• 14, Company has not made any preferential allotment or private placement of shares or fully or partly convertible or debentures during the year.
• 1. Based on the representation given by the management, the company has not entered into any non-cash transactions with the directors or other persons connected to directors and hence the provision of section 192 of the companies act is not applicable.
• 1. The company is not required to be registered under section 45-IA of Reserve Bank of India, 1934.

For A.K.G. & ASSOCIATES Chartered Accountants FRN. 002688N

bo gh foe :

Place: Delhi CA. Harvinder Singh Date: 19-Feb-2020 Partner M. No. 087889

Annexure B to the Independent Auditor's Report

(Referred to in our report of even date)

of Report the on the Internal Financial Control under Clause (i) of Sub-section 3 of section 143 Companies Act, 2013 ("the Act")

We Limited, have audited the internal financial controls over financial reporting of Indosolar company under CIRP ("the Company") as on 31° March 2019 in conjunction date. with our audit of the financial statements of the company for the year ended on that

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established Guidance by the Company considering the essential components of internal control stated in the Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI").

These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls. and, both issued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included

assessing obtaining an understanding of internal financial controls over financial reporting, and the risk that a material weakness exists, and testing and evaluating the design procedures operating effectiveness of internal control based on the assessed risk. The risks selected depend on the auditor's judgment, including the assessment of the of material misstatement of the Ind AS financial statements, whether due to fraud or error.

We provide believe that the audit evidence we have obtained is sufficient and appropriate to a basis for our audit opinion on the Company's internal financial controls systern over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

Acompany's internal financial control over financial reporting is a process designed to Preparation provide reasonable assurance regarding the reliability of financial reporting and the of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.

Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

Due to insufficient staff and availability of relevant records, in our opinion, the Company does not has an adequate internal financial controls system over. financial reporting and such internal financial controls over financial reporting were not operating effectively as at 31% March, 2019. We have not been provided with the internal contro! over financial

internal reporting control criteria stated established by the Company considering the essential components of Financial Reporting in the Guidance Note on Audit of Internal Financial Controls over issued by the Institute of Chartered Accountants of India.

For A.K.G. & ASSOCIATES Chartered Accountants FRN. 002688N

CA. Harvinder Singh Date: 19-Feb-2020 M. No. 087889

Indosolar Limited
Balance Sheet as at 31 March, 2019{Allamounts in Rupees in lakh, unless otherwise stated)
Particulars	Notes	As at 31 March 2019	As at 31 March 2018
Assets1 Non-current assets{a} Property, Plant & Equipment
(b) Capital work-in-progress(c) Other intangible assets	A(a)4(b)A(c)	15,430.988,298.6512.79	42,636.8925,747.97
(d) Financial assets(i) Loans(ii} Other financial assets	56	157.69	17.26403.90
{e) Deferred tax assets (Net){f) Other non-current assetsTotal non current assets	78	--36.04	87.27-1,051.02
2 Current assets(a) Inventories		23,936.15	69,944.31
{b) Financial assets(i) Trade receivables	910	537.3414.53	2,665.61
(ii) Cash and cash equivalents(iii) Bank balances (other than cash & cash equivalents)(iv) Loans	1112	67.02405.11	291.30292.46352.40
(v) Other financial assets(c) Other current assetsTotal current assets	568	-55.84869.44	4.77-821.02
TOTAL ASSETS		1,949.2825,885.43	4,427.56
Equity and LiabilitiesEquity			74,371.87
(a) Equity share capital(b) Instruments entirely equity in nature(b) Other equity	13(a)(b)13(b)	37,206.71-	37,206.71
Total EquityLiabilities	14	(135,355.20)(98,148.49)	-(82,859.67)(45,652.96)
1 Non-current liabilities		584.32	30,443.02
(a) Financial liabilitiesBorrowings(b) Provisions	15 and 1617
Total non current liabilities2 Current liabilities		48.79633.11	48.7930,491.81
{a) Financial liabilities(i) Borrowings	18	3,557.02
(ii) Trade payables(iii) Other financial liabilities(b) Other current liabilities	192021	8,570.75110,561.10	3,546.206,237.0679,524.20
(c) ProvisionsTotal current liabilities	17	693.7018.25123,400.81	206.6818.8789,533.02
TOTAL EQUITY AND LIABILITIES		25,885.43	74,371.87 _

Summary of significant accounting policies 2&3 Note 1 to 48 form an integral part of the balance sheet of the company. AS per our report attached

For A.K.G & ASSOCIATES

Membership No.: 087889

Place: Delhi Date : 19-Feb-2020

Chartered Accountants For and on behalf of the Board of Directors of Indosolar Limited ICAI Firm registration number: 002688N ' ys \ _ Wer Wa ee ™— tek Shwe if _ H.R. Gupta \ wt

|Gulshan Gaba Af AG fs OCC SC be Anand (Kumar Agarwat——-——— Resolution Professional Chief Financial Officer Regn no: IBBI/IPA-001/IP- NG P00548/2017-18/10978

CA. HARVINDER SINGH Managing Director He aac DIN:00297722 Partner " a Record

CIN: L18101DL2005PLC134879Statement of Profit and Loss for the year ended 31 March, 2019(All amounts in Rupees in lakh, unless otherwise stated)
Particulars	Not ores	For the year ended 31March 2019	For the year ended 31
Income			March 2018
Revenue from operations
Other income	22	1,322.36
Total Income (A)	23	290.49	31,412.37
		1,612.85	431.15
Expenses			31,843.52
Cost of material consumed
Purchase of stock in trade	24	1,142.02	21,577.99
Change in inventories of finished goods,	25	92.98	4,401.94
stock in trade and workEmployee benefits expense	26	515.39	1,910.30
Finance costs	27	455.99	1,457.67
Depreciation and amortisation expense	28	5,093.04	5,351.94
Other expenses	29	2,413.69	2,810.58
	30	1,581.92	4,203.34
Total Expenses (B)
		11,295.03	41,713.76
Profit/(Loss) for the period before finance costs,		(9,682.18)	(9,870.24)
Profit/(Loss) before exceptional items and tax (A-B)
Exceptional items [Profit/(Loss)] (refernote 42)		(9,682.18)	(9,870.24)
Profit/(Loss) before tax		(42,819.12)	(6,410.96)
		(52,501.30)	(16,281.20)
Tax expense
Current Tax	31
Deferred Tax		-	2.32
Profit/(Loss) after tax (net)		(52,501.30)	-(16,283.52)
Other Comprehensive Income/({loss)
A(i) Items that will not be reclassified to profit or loss-Remeasurements of net defined benefit plans
(ii) Income tax relating to items		5.77	11.55
that will not be reclassified toB(i) Items that will be reclassified		-	-
to profit or loss{ii) Income tax relating to items that		-	-
will be reclassified to profitOther Comprehensive Income/(loss}		-	-
		5.77	11.55
Total Comprehensive Income/(loss)		(52,495.53)
			(16,271.97
Earning per equity share (EPS) in Rs.- Basic	32
- Diluted		(14.11)	(4.44)
		(14.11)	(4.44)

Summary of significant accounting policies 2&3

Note 1 to 48 form an integral part of the balance sheet of the company.

AS per our report attached

For A.K.G & ASSOCIATES Chartered Accountants ICAI Firm registration number: 002688N

i bey" Ce Vy.

CA. HARVINDER SINGH Partner Membership No.: 087889

Place: Delhi Date: 19-Feb-2020 For and on behalf of the Board of Directors of Indosolar Limited

a Vo bo hen H.R. Gupta

Managing Director DIN:00297722 Chief Fi ancial Officer

\

Taker ecord Gulshan Gaba

Resolution Professional Regn no: IBBI/IPA-O01/1P-P00548/2017-18/10978

Indosolar Limited Cash Flow Statement for the year ended 31 March, 2019 (All amounts in Rupees in lakh, uniess otherwise stated)

	For the year ended
A.Cash flow from operating activities	31 March 2019	For the year ended
Loss before tax as per Statement of Profit and Loss		31 March 2018
Adjustments for:	(52,501.30)	(16,281.20)
Depreciation and Amortisation Expense
Interest Expenses	2,413.69	2,810.58
Interest income	5,093.04
Provision for doubtful debts written back	(52.39)	5,221.13
Provision for doubtful debts	-	{179.26}
Provision for service tax not recoverable written back	799.61	(13.47}
Service tax not recoverable written off
Exceptional Items	21.60	(112.80)
-Waiver of Interest on loans
-Impairment Losses of Property, Plant & Equipment	42,819.12	(15,211.12)
~Gain on modification of loan due to fair valuation of 1% CCCRPSBad debts written off		30,700.00
Demurrage/detention charges	60.18	(9,077.92)
		13.21
Unrealized Foreign Exchange Rate Difference (Gain) / Loss (Net)	3.66	64.07
(Gain) / Loss on Sale of Property, Plant and Equipment (net)	10.39
Provisions/Liabilities no longer required written back	(248.49)	-
Amortised ancillary cost of arranging the borrowings	-
Operating profit before working capital changes		32.84
	(1,580.89)	(2,033.94)
Movements in Working Capital :
(Increase)/decrease in Trade Receivables
(Increase)/decrease in Inventories	(586.68)	&30.12
(Increase)/decrease in Other financial assets and Other assets	2,128.27	998.07
Increase/(decrease) in Trade payables	180.94	869.19
Increase/(decrease) in Other liabilities and Provisions	2,333.69	3,432.99
	769.36	(1,167.65)
Cash used from operations
Direct taxes (paid)/refund received	3,244.69	2,928.78
	-
Net cash generated from operating activities	3,244.69	(6.10)2,922.67
B.Cash flow from investing activities
Capital expenditure on Property, Plant and Equipment, including capital work in	(2,337.86)
Imapirment Losses of CWIP		(1,204.75)
Proceeds from sale of Property, Plant and Equipment
Movement in Fixed Deposits with Banks	23.33 (2.71)
Interest received	33.82	242.00
Net cash used in investing activities	(2,283.42)	162.28
C.Cash flow from financing activities		(800.47)
Proceeds from issue of share capital
Proceeds from/ (repayment of) Long term borrowings
	(197.85)	(457.30)
Proceeds from/ (repayment of) Short term borrowingsInterest paid	10.82	(1,716.75)
	(999.68)	(320.23)
Net cash used in financing activities	(1,186.71)
Net increase in cash and cash equivalents		(2,494.27)
Opening Balance of Cash and Cash Equivalents	(225.46)	(372.07)
	292.46	664.53
Add: Exchange ioss/(gain) on foreign currency in hand
Closing Balance of Cash and Cash Equivalents	67.01
		292.46
Cash and cash equivalent comprises:
Cash in hand
Balances with scheduled banks	0.12	2.30
	66.89	290.16
Notes:	67.01	292.46

Notes:

(a) The above cash flow statement has been prepared under the "Indirect Method" Flow Statements specified under Section 133 of the Companies Act, 2013. (b) Note 1 to 48 form an integral part cf the balance sheet of the company. as set out in the Indian Accounting Standard - 7 Cash

As per our report attached

For A.K.G & ASSOCIATES

Chartered Accountants ICAI Firm registration number: 002688N 4h "oe A . i Jo ra

CA. HARVINDER SINGH , Partner

Membership No.: 087889

Place: Dethi Date : 19-Feb-2020 For and on behalf of the Board of Directors of Indosolar Limited

ey as ~ ' \ | Ceo \ , LN H.R. Gupta Managing Director \ —

Takerrea Record Gulshan Gaba

Resolution Professiona! Regn no: IBBI/IPA-CO1/IP-P00548/201 7-18/10978 XN