INDOSOLAR LIMITED — Interim / Quarterly Report 2019

Aug 31, 2020

INDOSOLARLIMITED

Regd. Office: C-12 Friends Colony (East), New Delhi-110065, India CIN- L18101DL2005PLC134879 Website-www.indosolar.co.in

August 31, 2020

BSE Limited	The National Stock Exchange of India Ltd
The Secretary	The Secretary
Corporate Relations Department	Corporate Relations Department
P.J. Towers, Dalal Street	Exchange Plaza, Bandra-Kurla Complex
Mumbai –400001	Bandra East, Mumbai –400059
ScripCode: 533257	Scrip Code: INDOSOLAR

Sub: Submission of Unaudited Standalone Financial Results along with Limited Review Report for the following periods-

• a. Unaudited Financial Results for the quarter ended 30th June, 2019;
• b. Unaudited Financial Results for the quarter and half year ended 30th September, 2019 and
• c. Unaudited Financial Results for the quarter and nine months ended 31st December, 2019

Dear Sir/Madam,

Pursuant to Regulation 30 read with Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 we wish to inform you that a meeting held today i.e. Monday, 31st August, 2020 has inter-alia approved, considered and took note of the following businesses:

• a) Unaudited Financial Results along with Limited Review Report for the quarter ended 30 th June, 2019;
• b) Unaudited Financial Results along with Limited Review Report for the quarter and half year ended 30th September, 2019 and
• c) Unaudited Financial Results along with Limited Review Report for the quarter and nine months ended 31st December, 2019

In view of the above, please find enclosed herewith the Standalone Un-Audited Financial Results of the Company for the captioned periods along with Limited Review Report thereon.

The aforesaid Results shall also be hosted on Company's website at www.indosolar.co.in

The meeting commenced at 11:30 AM and concluded at 4:05 P.M.

You are requested to kindly take the same on your records and oblige.

Thanking You

Yours faithfully,

For Indolsolar Limited

(Sonam Prasad) Company Secretary Issued with approval of Mr. Gulshan Gaba Resolution Professional for Indosolar Limited

(Indosolar Limited is under Corporate Insolvency Resolution Process pursuant to the provisions of the Insolvency and Bankruptcy Code 2016. Its affairs, business and assets are being managed by Mr. Gulshan Gaba Resolution Professional appointed by Hon'ble National Company Law Tribunal vide order dated 12/04/2019)

Encl: As above

A.K.G. & ASSOCIATES Chartered Accountants

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

To, The Resolution Professional of, Indosolar Limited,

• We, the Statutory Auditors, of the company have reviewed the accompanying statement of unaudited financial results of Indosolar Limited, company under CIRP f'the companyf, for the quafter ended June 30, 2019 (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/CMDU44l20l9 dated March 29, 2019 including relevant circulars issued by SEBI from time to time.
• The Company had shut down its production facilities w.e.f 15th May 2018.4 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 L2,20L9 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. Gulshan Gaba, who was appointed as interim resolution professional (IRP) and was consequently continued as Resolution Professional (RP) by the Committee of Creditors (COC). 2.

Further vide an Order dated October 09, 2019, Hon'ble NCLT has extended the CIRP period for a period of 90 days beyond the initial a statutory period of 180 days and subsequently vide pursuant to an Order dated January 09, 202O passed by the Hon'ble

?age Il6

11-CSC, DDA Market, A-Block, Saraswati Vihar, DELHI-I10034 Tel.: 01 1 -27 O2O489, 2701 6986, 981 0046631 E-mail : akgca_1 98O@yahoo.com akg@akgandassociates.com www.akgandassociates.com Also at KARNAL

NCLT the GIRP period was futther extended by a period of 60 (ays treyond the period of 270days and by an order dated March 72, 2Q20. The NCLT had extended the cIRp period by further 15 days in terms of the amended provisions of the code,

• This statement which is the responsibility of the company,s management, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, tnterim Financial Reporting (IND As 34) prescribed under section 133 of [he companies Act, 2013c'the ActJ , sEBI circular GIR/GFD/FA C/62/2016 dated SthJuly 2016(herein referred to as the sEBI circular") and other accounting principles generally acceptable in India, 3.
• Since the powers of the Eoard have been suspended the above statements have not been adopted by Board of Direstors. However, the same have been signed by 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, Resolutiorr professional, our responsibility is to lssue a report on the statement based on our review.
• 5' 'we conducted our review of the Statement in accordance with the Standard on Review lingagements (SRE) 2410 "Review of Interim Financial Information performed by the Jtndependent Auditor of the Entity,,, issued by the Institute of Clrartered Accountants of l'ndia' 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 inforrnation consists of making inquiries, primarily of the Company,s prersonnel responsible for financial and accounting matters and applying analytical and crther revie| procedures to financial data. A review ls substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 1a3(10) cf the Companies Att, 2013 and consequently, does not enable us to obtain assurance thatwe would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit gpinion,
• $' 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, 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 June 30, 2019 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.

As per "Ind 45-36" which talks about impairment of asset, if the carrying amount of the asset is more than recoverable amount then asset needs to be impaired and as "Ind AS-109" on financial instruments which also contain provision of impairment of financial asset through expected credit loss method basis, these provisions were required to seek for any impairment obligation from management but since the corporate debtor is still under the CIRP Process and resolution professional and CoC are in process of Finalization of successful resolution applicant and the management has not determined the value in use thus impairment of Fixed asset including Capital WIP, which are standing in the books of account before initiation of CIRP Process. Consequently, we are unable to determine whether any adjustment to the carrying value are necessary and consequential impact on the fi nancial statement.

• 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 had not been booked in the books of account as it is in moratorium period. Being the company under CIRP, there is difference in total interest/ penal interest / expenses / others of approximately Rs. 101028.27 lakh pertain to this year or earlier years between claims admitted by Resolution Professional and balances in book as on ?aAe 316

16'n April 2019.So we're unable to comment on the financial impact of the same on loss for the year.

• 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 paymentof custom duty. As on 30thJune 2019 tlte Company's NFE is positive by Rs. 77893.46lakh without considering the import value of amortization of Line-C. However, after amortization of value of line C NFE becomes negative by Rs. L7602,67 Lakh, 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. 5212003 Cus.Dated 31.03.2003. Presently we are unable to assess upon the possible impact if any on the accompanying statement. 5.
• In the matter of Company's claim for eligibility of capital subsidy under SIP scheme of Govt. of India. The uncertainty exists with regards 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.
• Non-compliance of TDS provisions observed in following cases, the expenses of which incurred before commencement of CIRP: 7.
  • a) TDS on listing fee of NSE and BSE as on 01.04.2019 amounting to Rs 59500 and Rs 45000 respectively had not been deducted.
  • b) TDS on payment of Rs 125000 made to MS Yadav on 03.04.2019 for the legal & professional expense had not been deducted.
• 1. The financial records do not reconcile with the GST Returns and provisions of GST related to return filing, deposit of GST has not been complied with.

Emphasis of Matter

We driaw attention to the following matters:

a) Note No. 1 regarding Corporate Insolvenry Resolution Process (CIRP) initiated under Insolvency and Bankruptcy Code, 2016 ('the Code') and the outcome of the CIRP is subject to decision of APEX Court / NCLT.

Ilage 416

b) Note no. 4 of the financial statement, regarding preparation of financial statement on going concern basis, which states that the company has incurred losses, ib liabilities exceeded total assets and its net worth has been eroded as on 3Oth June 2019.Since the CIRP is currently in progress, as per the code, it is required that the company be managed as a going concern during CIRP. The financial statement is continued to be prepared on going concern basis, However there exists material uncertainty about the company's ability to continue as a going concern since the same is dependent upon the resolution plan to be approved by NCLT. The appropriateness of preparation of financial statement on going concern basis is critically dependent upon CIRP as specified in the code. Our opinion is not modified in respect of this matter.

In wake of COVID-19 outbreak, there is a potential risk although the resolution plan has been approved in CoC meeting.

• c) Closing Stock of finished goods and raw material has been taken as nil.
• d) 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.

No accounting impact in the books of accounts has been made in respect of excess, short or non -receipts of claims for financial and operational creditors. Hence, consequential impact, if any, is currently not asceftainable and we are unable to comment on possible financial imoact of the same.

?age 516

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 ASSC FRN. 002688N

CA. Harvinder Singh

$(UDIN:) 20087889AAAA029808$

Partner

M. No. 087889

DEL HI

Place: New Delhi Date: 31.08.2020

INDOSOLAR LIMITED

Regd. Office: C-12, Friends Colony (East), New Delhi- 110065 Co rporate ldentificatio n N u m ber (Ct N )- 118101 D 12005 pLC 13487 g :itatement of Unaudited Financial Results for the quarter ended 30th June. 2019

					(Rs. in takhl
5.			Year Ended
Nlo.	PARTICUTARS	30.5.2019	31.3.2019	30.6.2018	31.3.2019
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
I	Reven ue from operations		(0.31)	r,203.99	r,322.36
tl	Other Incorne	8.42	10.32	254.58	290.49
ill	Total Income (l+ ll)	8.42	10.01	t,459.47	1,612.85
	Expenses:
	(a) Cost of lr'laterials consumed		46.03	864,09	I,742.02
	(b) Purchas,es of Stock-in-trade			97.05	92.98
	(c) Changes in inventories of finished goods, work-inprogress and stock-in-trade			382.45	515.39
	(d) Employere benefits expense	4.66	41.76	2t4.r7	4s5.99
	(e) Finance costs		283.38	2,O88.57	5,093.04
	(f) Depreciation and amortisation expense	L99.32	570.77	5s0.53	2,413.69
	(g) Other expenses	L3.92	93.04	9t2.L6	t,58L.92
	Total Expenrses (lV)	2r7.90	1,034.98	5,2O9.O2	11,295.03
V	Profit/(toss) before exceptional items and tax (1il -
	tv)	(20s.48)	t,o24.971	(3,750.55)	(9,682.18)
VI	Exceptional items (refer note 10)				(42,879.12)
	Prior Period expenses
vtl	Profit (Loss) before tax (V - Vt)	(20e.48)	(L,024.971	(3,750.55)	(52,501.30)
	Tax expenser
	(a) Current'lax
	(b) Deferrecl Tax
vtl	Total Tax Expense
IX	Net Profit/(Loss) after tax (Vll - Vlll)	(20s.48)	(t,o24.971	(3,750.55)	(52,501.30)
X	Other Comprrehensive Income /(Loss)
	Items to be reclassified to profit or loss
	Income tax relating to items to be reclassified to
	profit or loss
	Items not to be reclassified to profit or loss			2.89	5.71
	Income tax relating to items not to be reclassified to
	profit or lossTotal Comprrehensive Income (Comprising
XI	Profit/(toss) and other comprehensive Income (lX +	(20s.48)		(3,747.661	(52,495.53)
	x)		11,024.971
X	Paid-up equity share capital (Face value of Rs. 10/-each)	37,206.71	37,206.71,	37,206.7L	37,206.71.
X	Other Equity
XV	Earnings per equity share (EPS) (Face value of Rs. 10/-each) (not arrnualised):
	- Basic (Rs.)	(0.05)	(0.28)	(1.01)	(r4.7rl
	- Diluted (tts.)	(0.06)	(0.28)	(1.01)	(14.1L)

1. Corporate lnsolvency Resolution process:

As per order of Hon'ble NCLT, New Delhi dated 1-2th April ,2019 under the provisions of Insolvency and Bankruptcy Code 2016, the company is under Corporate Insolvency Resolution process (ClRp). lts affairs, business and assets are being managed by the Resolution Professional (RP). 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 period, till the approval of a resolution plan by the CoC. The RP has verified, reconciled and admitted the claims filed by the creditors of the company based on the information available with him. The summary of claims filled by financial creditor, operation;rl creditors and employees of the company and admitted by resolution professional as on O6th Marchr 2020 are as follows:

S. No.	Particulars	Claim Received	Claim
			Admitted*
		(lNR in Lakh)	(lNR in takh)
L	Financial Creditors	2,L3,826.52	2,L3,79I.49**
2	Operational Creditors	9,372.42	4,712.08
3	Employees***	737.78	261,.90

*The procerss for submission, reconciliation and admission of claims is an on-going process tillthe time resolution plan is approved by the member of Committee of Creditor. No accounting impact in the books of accounts have been made in respect of excess, short or non -receipts of claims from financial creditor,operational creditors and employees as resolution plan was not approved by the members of Committee of Creditor till 30th June 20L9

** lt includes claim of Bank of Baroda amounting to Rs.25918.78 lakh, Corporation Bank Rs 39576.491akh, AIRCL- Rs 49974.13|akh and Union Bank of India- Rs 98322.091akh.

*t<x A Litigation has been filed by 49 employees of the company for a claim of Rs. 399.49 lakh with the Labour Court at Noida (UP) before initiation of CIRP. However, most of the said employees have also filed their r:laim with Resolution Professional (RP) which have been admitted by RP on merits. Details of claim received and admitted by RP are available on the website of company.

Since the r:reditors have been shown at their carrying value and there is uncertainty relating to amount pa'yable to them, no further MSME interest has been provided during the quarter.

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

Further, virle an Order dated October 09, 2019, Hon'ble NCLT has extended the CIRP period for a period of 90 days beyond the initial a statutory period of 180 days and subsequently vide pursuant to an Order dated January 09,2020 passed by the Hon'ble NCLT. The CIRP period was further extended

by a pericrd of 60 days beyond the period of 270 days and by an order dated March 12, 2o2O the Hon'ble NCLT had extended the clRP period byfurther 15 days in terms of the amended provisions of the Code.

• 1. As the poM/ers of the Board of Directors have been suspended, the above statement have not been adopted Lry the Board of Directors. However, the same have been signed by Mr. Anand Kumar Agarwal, Clhief Financial Officer of the Company confirming accuracy and completeness of the results and taken on record by Mr. Gulshan Gaba, Resolution Professional. The same have also been subjected to Limited Review by the Statutory Auditor.
• 1. The operation of company relates to single segment i.e, manufacturer of Solar photovoltaic Cells. However, no manufacturing activities have been carried out by the company during the quarter ending 30t1 June 2019.

4. Going Conrcern:

The Compiany has continued to incur losses, its liabilities exceeds total asset and its net worth has been eroded as at 3Oth June 201-9.

No busines;s activities have been carried out by the company during the period ended 30thJune, 2019. The company is under Corporate Insolvency Resolution Process (CIRP)and has received two resolution plans from the prospective resolution applicants out of which the Committee of Creditors (CoC) has approved the resolution Plan of "Waaree Energies Limited". Although the same has not been physically s;ubmitted with Hon'ble NCLT till date.

Waree Energies Limited vide its letterdated t3/O7/2020 has informed the resolution professionalthat they are withdrawing the resolution plan due to various reasons and further requested to refund the bid bond amount of Rs 1-,00,00,000/-. The letter was submitted before CoC. After detailed discussion among the members of the CoC, legal counsel of the CoC and chairman it was decided that RP should request the Hon'ble NCLT for early hearing of application filed for approval of resolution plan, subsidy application and request the Hon'ble NCLT to direct the resolution applicant to honour its commitment and execute the plan.

Considering the 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.

1. The company is eligible for capital subsidy under SIP scheme of Govt. of India. Department of Electronics & Information Technology (DEIT) has initiated the process of appraisal of the subsidy claim of the conlpany. In the absence of the reasonable assurance, pending appraisal, the claim has not been recognized. The RP has also filed an application before Hon'ble NCLT for early release of capital subsidy vide its application dated 02.0L.2020 having diary number 0710L02000292020.

• 1. The value of inventory of finished goods and raw material has been taken as nil, as it is expired and its present market value is negligible.
• 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 machineric's without payment of custom duty. As on 3OthJune,2}tg the Company,s NFE is positive by Rs' 17893,46 lakh without considering the import value of amortization of Line-C. However, after considerin,g the amortization of value of line-C NFE becomes negative by Rs. 17602.67 lakh. 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.
• 1. Considering the ongoing Corporate Insolvency Resolution Process, the uncertainty as to the realisation of unused tax losses cannot be ascertained at this stage. Consequently, adjustment to Deferred Tax (Net) have not been given effect to.
• 1. Figures for the quarter ending 31.03.2019 are the balancing figures between audited figures in respect of the full financial year ended 3L.03.2019 and the unaudited published year to date figures upto 3L.L2.20I81which was subjected to limited review report.
• 1. Previous period figures have been regrouped/rearranged whenever considered necessary to make them comparable with current period.

Place: New Delhi Dated: 31.08.2020

Taken on Record Gulshan Gaba

Resolution hofessiona I Reg n no : I B B l/ I PA-00 t I tP -P 0O5 48 | 2Ot7 -LSl 109 78

rnde;pendent Auditor's Review Repoft on unaudited standalone Qua rly Financial sults and Year to Date Results of the company pursuant to the Regulation 33 of the sEBr (Listing obrigations and Discrosure Requirements) Reguration, 2015.

To, The Resolution professional of, 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 september 30, 2019 (hereinafter referred to as ,,the statement,,) being submitted by the company pursuant to the requi ment of Regulation 33 of the SEBI (Listing obligations and Disclosure Requirements) Regulations , 2ols, as amended, read with SEBI cIR/cFDlclvlDV44l2org dated March 29, zolg including relevant circulars issued by SEBI from time to time.
• 2' -fhe company had shut down its production facilities w.e.f 15th May 201g.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 Aprit 12, 2o1g 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. Gulshan Gaba, who was appointed as interim resolution professional (IRP) and' was consequenly continued as Resolution Professionat (Rp) by the Committee of Creditors (COC).

Further vide an order dated october 09,2079, Hon'ble NCLT has extended the cIRp period for a period of 90 days beyond the initial a statutory period of 1g0 days and

Pag,e Il6

11-CSC, DDA Market, A-Block, Saraswati Vihar, DELHI-I10034 Tel.: 01 1-27 020489, 2701 6986, 9E1 0046631 E-mail : akgca_1 980@yahoo.com akg@akgandassociates.com www.akgandassociates, com Also at KARNAL

subsequently vide pursuant to an 0rder dated JanuaV 09, 2020 passed by the Hon'ble NCLT the CIRP period was futher extended by a period of 60 days beyond the period of 270 days and by an order dated March 12,2020. The NCLT had extended the CIRp period by fufther 15 days in terms of the amended provisions of the Code.

• 1. This Statement which is the responsibility of the company's management, has peen prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting (IND AS 34) prescribed under section 133 of the Companies Act, 2013['the Act'), SEBI Circular CIR/CFD/FAC1621ZOI6 dated Shluly 2016 (herein referred to as the SEBI Circular'J and other accounting principles generally acceptable in India.
• 1. Since the powers of the Board have been suspended the above statements have not been adopted by Board of Directors. However, the same have been signed by Mr, Anand Kumar Agarwal, Chief Financial Officer of the Company confirming accuracy and completeness of the resulG and taken on record by Mr. Gulshan Gaba, Resolution Professional. Our responsibility is to issue a report on the statement based on our review.
• 1. We conducted our review of the Statement in accordance with the litandard 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 signiflcant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

6' In preparing the financial results, management is responsible for assessing the company,s ability to continue as going concern, disclosrng, as appricable, 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 Deen prepared on going concern basis.

Basis lbr Disclaimer of Opinion

• 1' Inventory records were not provided to us for checking. These were not physically verified Dy us' Accordingly, we were unable to satisfy ourselves by alternative means concerning the inventory quantities held at september 30, z0rg and vatuation thereof.
• 2' 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 veriff the written down value of fixed assets sord during the year and resurtant profit/Loss.

l\s per "Ind 45-36" which talks about impairment of asset, if the carrying amount of the etsset is more than recoverable amount then asset needs to be impaired and as ,,Ind AS-109" on financial instruments which also contain provision of impairment of financial asset through expected credit loss method basis, these provisions were required to seek for any impairment obligation from management but since the corporate debtor is still under the GIRP Process and resolution professional and coC are in process of Finalization o[ successful resolution applicant and the management has not determined the value in use thus impairment of Fixed asset including capital wlp ,which are standing in the books o1' account before initiation of GIRP Process. consequentty, we are unable to determine whether any adjustment to the carrying value are necessary and consequential impact on th e fi nancial statements.

3' we were unable to confirm or verify balances of accounts receivable and accounts p.yables and their resultant effect on profit and loss account, if any.

Tage 316

• 4' Interest on borrowing in respect of facilities from corporation bank, Union bank of India and Bank of Baroda had not been booked in the books of account as it is in moratorium period' Being the company under GIRP, there is difference in total interesV penal interest / expenses / others of approximately Rs. ro7o2}.27 lakh peftain to this year or earlier years between claims admitted by Resolution Professional and balances in books as on 16Lr' April 2019'so we're unable to comment on the financial impact of the same on loss for the year.
• 5' The company (being an EoU) has not been able to meet its commitment under the Foreiqn 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 30rh september 2019 the company's NFE is positive by Rs. r76g3.23lakh without considering l:he import value of amortization of Line-c. However, after amortization of value of line c l\FE becomes negative by Rs. rgo22'02lakh. The company is not able to achieve positive ttJFE during the stipulated time, the company would be liable to duties and penalties pavable in accordance with Notification No. 5212003 cus. Dated 31.03.2003. presenuy we ;tre unable to assess upon the possible impact if any on the accompanying statement
• 6' In the matter of company's claim for eligibility of capital subsidy under slp scheme of ciovt' 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.
• 7' Non compliance of rDS provisions observed in following cases, the expenses of which irrcurred before commencement of CIRp;
  • a) TDS on listing fee of NSE and BSE as on 07.04.2019 amounting to Rs 59500 and Rs 45000 respectively had not been deducted,
  • b) TDS on payment of Rs 125000 made to MS Yadav on 03.04,201g for the legal & professional expense had not been deducted.
• 8' Tire financial records do not reconcile with the GST Returns and provisions of GST related to return filing, deposit of GST has not been complied with.

?ag.e 416

Emphasis of Matter

We draw attention to the following matters:

• a) Note No. 1 regarding corporate Insorvency Resorution process (crRp) Insorvency and Bankruptcy code, 2016 (,the code,) and the outcome sub.lect to decision of ApEX Court / NCLT. initiated under of the CIRP is
• b) Note no' 4 of the financial statement, regarding preparation of financial statement on golng concern basis, which states that the company has incurred losses, its liabilities exceeded total assets and its net worth has been eroded as on 30rn sept 2019.since the CIRP is currenfly in progress, as per the code, it is required that the company be managed as a going concern during CIRP, The financial statement is continued to be prepared on going concern basis. However there exists materiat unceftainty about the company's ability to continue as a going concern since the same is dependent upon the resolution plan to be approved by NCLT. The appropriateness of preparation of financial rstatement on going concern basis is critically dependent upon cIRp as specified in the code Our opinion is not modified in respect of this matter.

ln wake of coVID-19 outbreak, there is a potential risk although the resolution plan has Deen approved in CoC meetinq.

• c) closing Stock of finished goods and raw material has been taken as nil.
• d) A's per the code the RP has to receive, collate and reconcile all the claims submitted by tlre 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.

Nrr accounting impact in the books of accounts has been made in respect of excess, short or non -receipts of claims for financial and operational creditors. Hence, consequential

Tage 516

impact, if any, is currently not ascertainable and we are unable to comment on possible financial impact of the same.

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.

Place: New Delhi Date: 31.08.2020

For A.K.G. & ASSOCIATES Chartered Accountants ASS( FRN. 002688N DF CA. Harvinder Singh Partner

M. No. 087889 $(UDIN:) 20087889$ AAAAEA3162

INDOSOLAR LIMITED

Regd. Office: C-12, Friends Colony (East), New Delhi_ 110065 corporate ldentification Number (clN)- 118101D12005p1c134g79

Statement of Unaudited Financial Results for the Quarter and Half year ended 30th Septem ber,2ot9

s.Quarter EndedHalf Year EndedYear EndedPARTICUTARSNo.30.09.201930.06.201930.9.201830.09.201930.9.2018(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)Revenue from operationsI7,322.57Other Incometl38.8547.27273.27290.49illTotal lncome (l r. ll)38.8547.271,595.79L,6L2.85Expenses:IV(a) Cost of Materials consumedr,r42.02865.88(b) Purchases of lStock-in-trade92.981.43.22(c) Changes in inventories of finished444.68515.39goods, work-in-progress, and stockin-trade(d) Employee benefits expense7.394.6672.05390.32455.99(e) Finance costs0.450.454,070.45s,093.04(f) Depreciation arnd amortisation190.70199.32.390.021,259.592,4L3.69exoense(g) Other expenses40.8413.9254.76r,630.471,58I.92Total Expenses (lV)239.382I7.90457.288,743.60LL,295.03Profit / (Loss) belfore exceptionalV(200.s3)(20e.48)(410.01)l7,L47.82t-items and tax (lll - lV)Exceptional items;VI(42,879.12)(42,81e.r2)(42,8L9.12)Prior Period exoensesvtlProlit (Loss) belfore tax (V - Vt)(200.s3)(20e.48)(410.01)(49,966.94)(52,501.30)146,2t6.39l.villTax expense(a) Current Tax(b) Deferred TaxTotal Tax ExpensetNet Profit/(toss) after tax (Vll - Vttt)(200.s3)(20e.48)IX(410.01)(46,2L6.39l(49,966.941Other Comprehensive Income /(Loss)XItems to be reclas;sified to profit ortossIncome tax relating to items to be							(Rs. in lakh
							3103.2019
							(Audited)
							I,322.36
							(9,682.18)
							(52,501.30)
	reclassified to profit or loss
2.88Items not to be reclassified to profit5.775.77 or ross
Income tax relating to items not to bereclassified to prc,fit or loss
Total Comprehensive lncome(46,2L3.srl(200.s3)(20s.48)(410.01)XI(49,96L.L71(Comprising Profit/(toss) and othercomprehensive Income (tX + X)							(52,495.53)
Paid-up equity share capital (Facexrl37206.7r37206.7r37,206.7737,206.7r37,206.7737,206.71value of Rs. 10/- erach)
xillOther Equity
Earnings per equilty share (EPS) (FaceXIVvalue of Rs. 10/- erach) (notannualised):
- Basic (Rs.)(0.0s)(0.06)(12.42l,(0.11)(13.43)(74.1.11
- Diluted (Rs.)(0.0s)(0.06)(72.421(0.11)(13.43)(1,4.771

1. Corporate Insolvency Resolution process:

As per order of Hon'ble NCLT, New Delhi dated 12th April ,2019 under the provisions of Insolvency and Bankruptcy Code 20L6, the company is under Corporate Insolvency Resolution process (ClRp). lts affairs, business and assets are being managed bythe Resolution Professional (Rp). As perthe 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 period, till the approval of a resolution plan by the CoC. The llP has verified, reconciled, and admitted the claims filed by the creditors of the company based on the information available with him. The summary of claims filled by financial creditor, operation;rl creditors and employees of the company and admitted by resolution professional as on 06th Marcl"r 2O2O are as follows:

S.No	Particulars	Claim Received	Claim
			Admitted*
		(lNR in Lakh)	(lNR in Lakh)
1	FinancialCreditors	2,L3,826.52	2,\3,79L.49**
2	Operational Creditors	9,372.42	4,7L2.O8
3	Employees***	737.78	26I.90

+The proc,ess for submission, reconciliation and admission of claims is an on-going process tillthe time resolution plan is approved by the member of Committee of Creditor. No accounting impact in the books of ar:counts have been made in respect of excess, short or non -receipts of claims from financial creditor ,o;rerational creditors and employees as resolution plan was not approved by the members of Committee of Creditor till 30th September 2019.

** lt includes claim of Bank of Baroda amounting to Rs.25918.78 lakh, Corporation Bank Rs 39576.491akh, AIRCL- Rs 49974.131akh and Union Bank of India- Rs 98322.091akh.

*x* A Litigation has been filed by49 employees of the companyfor a claim of Rs.399.49 lakh with the Labour Court at Noida (UP) before initiation of CIRP. However, most of the said employees have also filed their claim with Resolution Professional (RP) which have been admitted by RP on merits. Details of claim recei'ued and admitted by RP are available on the website of company.

Since the cneditors have been shown at their carrying value and there is uncertainty relating to amount payable to them, nofurther MSME interest has been provided duringthe quarter.

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

Further, vidle an Order dated October 09,2OL9, Hon'ble NCLT has extended the CIRP period for a period of 90 days beyond the initial a statutory period of 180 days and subsequently vide pursuant to an Order dated Januirry 09,2O2O passed by the Hon'ble NCLT. The CIRP period was further extended by a period

of 60days beyond the period of 270 daysand byan orderdated March 12,2o2othe Hon,ble NCLThad extended the CIRP period by further 15 days in terms of the amended provisions of the code.

• 1. As the por/vers of the Board of Directors have been suspended, the above statement have not been adopted by the Board of Directors. However, the same have been signed by Mr. Anand Kumar Agarwal, Chief Finarrcial officer of the Company confirming accuracy and completeness of the results and taken on record by Mr. Gulshan Gaba, Resolution Professional. The same have also been subjected to Limited Review by the Statutory Auditor.
• The operation of company relates to single segment i,e, manufacturer of Solar photovoltaic cells. However, no manufacturing activities have been carried out by the company during the quarter ending 30th September 20L9. 3.

Going Conrcern: 4.

The Company has continued to incur losses, its liabilities exceeds total asset and its net worth has been eroded as iat 3Oth Sept 2019.

No busines;s activities have been carried out by the company during the period ended 30th Sept 2019. The company is under Corporate lnsolvency Resolution Process (CIRP) and has received two resolution plans from the prospective resolution applicants out of which the Committee of Creditors (CoC) has approved the resolution Plan of "Waaree Energies Limited". Although the same has not been physically submitted with Hon'ble NCLT till date.

Waree Energies Limited vide its letter dated L3/O7/2O2O has informed the resolution professional that they are withdrawing the resolution plan due to various reasons and further requested to refund the bid bond amount of Rs 1-,00,00,000/-. The letter was submitted before CoC. After detailed discussion among the members of the CoC, legal counsel of the CoC and chairman it was decided that RP should request the Hon'ble NCLT for early hearing of application filed for approval of resolution plan, subsidy application and request the Hon'ble NCLT to direct the resolution applicant to honour its commitment and execute the plan.

Considering the 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 comp;rny is eligible for capital subsidy under SIP scheme of Govt. of India. Department of Electronics & Information Technology (DEIT) has 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. The RP has also filed an application before Hon'ble NCLT for early release of capital subsidy vide its application dated o2.oL.2o2o having diary numb er o7loLo2oooz92o2o. 5.

• The value of inventory of finished goods and raw material has been taken as nil, as it is expired, and its present market value is negligible. 6.

• 7' 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 30th September 2019 the Company's NFE is positive by Rs. 17'693.23 lakh without considering the import value of amortization of Line-C. However, after considering the amortization of value of line-C NFE becomes negative by Rs. Lg,O22.o2lakh. 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.

• 1. Considering the ongoing Corporate Insolvency Resolution Process, the uncertainty as to the realisation of unused tax losses cannot be ascertained at this stage. Consequently, adjustment to Deferred Tax (Net) have not been given effect to.
• 1. Previous period figures have been regrouped/rearranged whenever considered necessary to make them comparable with current period.

Place: New Delhi Dated: 31.08.2020

Taken on Record Gulshan Gaba

Re gn n o : I B B t/ | pA-00 L I tp -poo548 | 2ot7 -L8 | t097 I Resolution sional

INDOSOLAR LIMITED Regd. Office: C-12, Friends Colony (East), New Delhi- ltOOGs Corporate ldentification Number (CtNl- L181O1DL2OOSptC134879

STATEMENIT OF ASSETS AND TIABITITIES		(Rs. in Lakh
	As at	As at
Particulars	30.09.2019	31.03.2019
	(Unaudited)	(Auditedl
A.ASSETS
Non - Current Assets
a) Property, Plant and Equipment	15,o43.79	15,430.98
b) Capital work in progress	8,298.65	8,298.6s
c) Other intangible assets	10.55	L2,79
d) Financial Assets
i) Loans	f ) /.ov	t57.69
ii) Other Financial Assets
e) Non current tax assets (net)
f) Other non-current assets	36.04	36.04
Total Non-Current Assets	23,546.L2	23,936.1!
Current Assets
a) Inventories	537.34	537.34
b) Financial Assets
i) Trade receivables	t4.44	14.53
ii) Cash & Cash Equivalents	59.50	67.O2
iii) Bank balances (other than cash and cash equivalents)	405.rI	405.r7
iv) Loans
v) Other Financial assets	66.77	55.84
c) other current assets	843.t7	869.44
Total Current Assets	L,936.43	L,949.21
TOTAT - AS!;ETS	25,442.55	25,885.43
EQUITY AND TIABITITIESB.
tEqurw
a) Equity Share Capital	37,206.77	37,206.7t
b) Instruments entirely equity in
c) Other Equity	(L,3s,76s.22l	(1,3s,3ss.20)
Total Equity	(98,ss8.s11	(98,148.491
TIABILITIES
Non - Current Liabilities
a) Financial Liabilities
i) Borrowings	584.32	s84.32
b) Provisions	48.79	48.79
Total l\on-Current Liabilities	633.11	633.11
Current Liabilities
a) Financial Liabilities
i) Borrowings	3,558.2i	3,557.01
ii) Trade Payables	8,s43.3t	8,570.7!
iii) Other financial liabilities	t,70,567.21	1,10,561.1(
b) Other current liabilities	720.81	693.7(
c) ProvisionsTotal Current tiabilities	L8.2!	t8.25L,23,400.4l
	1,2?,407.95
IOTAL. EQUIry AND LIASITITIES	25,482.55	5.43

Place: Delhi Date: 31.0{1.2020

A.K.G. & ASSOCIATES countants

Independent Auditor's Review Repoft on Unaudited Standalone euafterty Financiat R'esults and Year to Date results of the Company Pursuant to the Regulation 33 of the sEBr (lListing obligations and Disclosure Requirements) Regulation, 20ts.

To, The Resolution Professional of, Indosolar Limited,

• We, the Statutory Auditors, of the company have reviewed the accompanying statement <lf unaudited financial results of Indosolar Limited, company under CIRP f'the companyJ, fbr the quafter ended December 3I, 20L9 (hereinafter referred to as "the Statement") being submitted by the Company pursuant to the requirement of Regulation 33 of the !iEBI (Listing Obligations and Disclosure Requirements) Regulations , 20L5, as amended, read with SEBI CIR/CFDICMDtl44l20L9 dated March 29, 2OL9 including relevant circulars issued by SEBI from time to time.
• 1-he Company had shut down its production facilities w,e.f 15th May 2018.4 corporate insolvency resolution process C'CIRP') has been initiated against the company vide an crrder of Delhi bench of the National Company Law Tribunal (NCLT) dated April L2,zOLg 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 Clode and such powers are exercisable by Mr. Gulshan Gaba, who was appointed as interim resolution professional (IRP) and was consequently continued as Resolution P'rofessional (RP) by the Committee of Creditors (COC). 2.

Further vide an Order dated October 09, 2019, Hon'ble NCLT has extended the CIRP period for a period of 90 days beyond the initial a statutory period of 180 days and

Fage 116

subsequently vide pursuant to an Order dated January 09, 2020 passed by the Hon'ble NCLT the CIRP period was further extended by a period of 60 days beyond the period of 270 days and by an order dated March 12, 2020. The NCLT had extended the CIRP period by further 15 days in terms of the amended provisions of the Code.

• 1. This Statement which is the responsibility of the company's management, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting (IND AS 34) prescribed under section 133of the Companies Act, 2013("the Act"), SEBI Circular CIR/CFD/FAC/62/2016 dated 5July 2016 (herein referred to as the SEBI Circular") and other accounting principles generally acceptable in India.
• 1. Since the powers of the Board have been suspended the above statements have not been adopted by Board of Directors. However, the same have been signed by Mr. Anand Kumar Agarwal, Chief Financial Officer of the Company confirming accuracy and completeness of the results and taken on record by Mr. Guishan Gaba, Resolution Professional. Our responsibility is to issue a report on the statement based on our review.
• 1. 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.

Page 2 | 6

1. 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. 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, 2019 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.

As per "Ind AS-36" which talks about impairment of asset, if the carrying amount of the asset is more than recoverable amount then asset needs to be impaired and as "Ind AS-109" on financial instruments which also contain provision of impairment of financial asset through expected credit loss method basis, these provisions were required to seek for any impairment obligation from management but since the corporate debtor is still under the CIRP Process and resolution professional and CoC are in process of Finalization of successful resolution applicant and the management has not determined the value in use thus impairment of Fixed asset including Capital WIP, which are standing in the books of account before initiation of CIRP Process. Consequently, we are unable to determine whether any adjustment to the carrying value are necessary and consequential impact on the financial statement.

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.

Page $3|6$

• 1. Interest on borrowing in respect of facilities from Corporation bank, Union bank of India and Bank of Baroda had not been booked in the books of account as it is in moratorium period. Being the company under CIRP, there is difference in total interest/ penal interest / expenses / others of approximately Rs. 101028.27 lakh pertain to this year or earlier years between claims admitted by Resolution Professional and balances in books as on 16th April 2019.So we're unable to comment on the financial impact of the same on loss for the year.
• 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 31st December 2019 the Company's NFE is positive by Rs. 17,693.23 lakh without considering the import value of amortization of Line-C. However, after amortization of value of line C NFE becomes negative by Rs. 20,241.14. 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.
• 1. 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.
• 1. Non-compliance of TDS provisions observed in following cases, the expenses of which incurred before commencement of CIRP:
  • a) TDS on listing fee of NSE and BSE as on 01.04.2019 amounting to Rs 59500 and Rs 45000 respectively had not been deducted.
  • b) TDS on payment of Rs 125000 made to MS Yadav on 03.04.2019 for the legal & professional expense had not been deducted.
• 1. The financial records do not reconcile with the GST Returns and provisions of GST related to return filing, deposit of GST has not been complied with.

Page $4|6$

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 of the CIRP is subject to decision of APEX Court / NCLT.
• b) Note no. 4 of the financial statement, regarding preparation of financial statement on going concern basis, which states that the company has incurred losses, its liabilities exceeded total assets and its net worth has been eroded as on 31st Dec 2019. Since the CIRP is currently in progress, as per the code, it is required that the company be managed as a going concern during CIRP. The financial statement is continued to be prepared on going concern basis. However there exists material uncertainty about the company's ability to continue as a going concern since the same is dependent upon the resolution plan to be approved by NCLT. The appropriateness of preparation of financial statement on going concern basis is critically dependent upon CIRP as specified in the code. Our opinion is not modified in respect of this matter.

In wake of COVID-19 outbreak, there is a potential risk although the resolution plan has been approved in CoC meeting.

• c) Closing Stock of finished goods and raw material has been taken as nil.
• d) 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.

No accounting impact in the books of accounts has been made in respect of excess, short or non -receipts of claims for financial and operational creditors. Hence, consequential

Page $5|6$

impact, if any, is currently not ascertainable and we are unable to comment on possible financial impact of the same.

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 ASS/ FRN. 002688N

CA. Harvinder Singh Partner M. No. 087889

Place: New Delhi Date: 31.08.2020

(UDIN:) 20087889 AAAA E B2064

INDOSOLAR LIMITED

Regd. Office: C-12, Friends Colony (East), New Delhi-110065 Corporate Identification Number (CIN)-L18101DL2005PLC134879 Statement of Unaudited Financial Results for the Quarter and Nine months ended 31st December, 2019

$\label{eq:3.1} g_{\rm f} = -\frac{3}{2} \qquad \qquad \frac{1}{2}$

	(Rs. in Lakh)
S.		Quarter Ended			Nine Months Ended	Year Ended
No.	PARTICULARS	31.12.2019	30.09.2019	31.12.2018	31.12.2019	31.12.2018	31.3.2019
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
T	Revenue from operations			0.16		1,322.67	1,322.36
$\mathbf{II}$	Other Income	3.06	38.85	6.90	50.33	280.17	290.49
$\mathbf{III}$	Total Income $(I + II)$	3.06	38.85	7.06	50.33	1,602.84	1,612.85
	Expenses:
	(a) Cost of Materials consumed			230.11		1,095.99	1,142.02
	(b) Purchases of Stock-in-trade					143.22	92.98
	(c) Changes in inventories of finished
	goods, work-in-progress and stock-in-			70.72		515.40	515.39
${\sf IV}$	trade
	(d) Employee benefits expense	9.58	7.39	23.91	21.63	414.23	455.99
	(e) Finance costs	0.02	0.45	799.22	0.47	4,809.67	5,093.04
	(f) Depreciation and amortisation	190.56	190.70	584.34	580.58	1,842.92	2,413.69
	expense
	(g) Other expenses	45.42	40.84	(191.84)	100.18	1,438.63	1,581.92
	Total Expenses (IV)	245.58	239.38	1,516.46	702.86	10,260.06	11,295.03
$\mathbf v$	Profit / (Loss) before exceptionalitems and tax (III - IV)	(242.52)	(200.53)	(1,509.40)	(652.53)	(8,657.22)	(9,682.18)
VI							(42, 819.12)
	Exceptional items (refer note 10)					(42, 819.12)
	Prior Period expenses
VII	Profit / (Loss) before tax (V - VI)	(242.52)	(200.53)	(1,509.40)	(652.53)	(51, 476.34)	(52, 501.30)
	Tax expense
VIII	(a) Current Tax(b) Deferred Tax
	Total Tax Expense
IX	Net Profit/(Loss) after tax (VII - VIII)	(242.52)	(200.53)	(1,509.40)	(652.53)	(51, 476.34)	(52,501.30)
X	Other Comprehensive Income /(Loss)
	Items to be reclassified to profit or
	lossIncome tax relating to items to be
	reclassified to profit or loss
	Items not to be reclassified to profit
	or loss					5.77	5.77
	Income tax relating to items not to be
	reclassified to profit or loss	$\sim$
	Total Comprehensive Income
XI	(Comprising Profit/(Loss) and other	(242.52)	(200.53)	(1,509.40)	(652.53)	(51, 470.57)	(52, 495.53)
	comprehensive Income $(IX + X)$
XII	Paid-up equity share capital (Face	37,206.71	37,206.71	37,206.71	37,206.71	37,206.71	37,206.71
	value of Rs. 10/- each)
XIII	Other Equity
	Earnings per equity share (EPS)
XIV	(Face value of Rs. 10/- each) (not
	annualised):
	- Basic (Rs.)	(0.07)	(0.05)	(0.41)	(0.18)	(13.84)	(14.11)
	- Diluted (Rs.)	(0.07)	(0.05)	(0.41)	(0.18)	(13.84)	(14.11)

$\frac{14.11}{10}$

1. Corporate Insolvency Resolution Process:

As per order of Hon'ble NCLT, New Delhi dated 12th April , 2019 under the provisions of Insolvency and Bankruptcy Code 2016, the company is under Corporate Insolvency Resolution Process (CIRP). Its affairs, business and assets are being managed by the Resolution Professional (RP). 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 period, till the approval of a resolution plan by the CoC. The RP has verified, reconciled and admitted the claims filed by the creditors of the company based on the information available with him. The summary of claims filled by financial creditor, operational creditors and employees of the company and admitted by resolution professional as on 06th March 2020 are as follows:

S.No	ParticularsClaim Received		Claim
			Admitted*
		(INR in Lakh)	(INR in Lakh)
	Financial Creditors	2,13,826.52	2, 13, 791. 49**
	Operational Creditors	9,372.42	4,712.08
	Employees***	737.78	261.90

* The process for submission, reconciliation and admission of claims is an on-going process till the time resolution plan is approved by the member of Committee of Creditor. No accounting impact in the books of accounts have been made in respect of excess, short or non -receipts of claims from financial creditor , operational creditors and employees as resolution plan was not approved by the members of Committee of Creditor till 31st December 2019.

** It includes claim of Bank of Baroda amounting to Rs.25918.78 lakh, Corporation Bank Rs 39576.49lakh, AIRCL- Rs 49974.13lakh and Union Bank of India- Rs 98322.09lakh.

*** A Litigation has been filed by 49 employees of the company for a claim of Rs. 399.49 lakh with the Labour Court at Noida (UP) before initiation of CIRP. However, most of the said employees have also filed their claim with Resolution Professional (RP) which have been admitted by RP on merits. Details of claim received and admitted by RP are available on the website of company.

Since the creditors have been shown at their carrying value and there is uncertainty relating to amount payable to them, no further MSME interest has been provided during the quarter.

The Company had shut down its production facilities w.e.f 15th May 2018. As a result, majority of employees gradually left the organisation. Due to lack of human resources and insufficient information, provisions and contingencies cannot be completely ascertained and provided in the books.

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

Further, vide an Order dated October 09, 2019, Hon'ble NCLT has extended the CIRP period for a period of 90 days beyond the initial a statutory period of 180 days and subsequently vide pursuant to an Order dated January 09, 2020 passed by the Hon'ble NCLT. The CIRP period was further extended by a period of 60 days beyond the period of 270 days and by an order dated March 12, 2020 the Hon'ble NCLT had extended the CIRP period by further 15 days in terms of the amended provisions of the Code.

• 1. As the powers of the Board of Directors have been suspended, the above statement have not been adopted by the Board of Directors. However, the same have been signed by Mr. Anand Kumar Agarwal, Chief Financial Officer of the Company confirming accuracy and completeness of the results and taken record by Mr. Gulshan Gaba, Resolution Professional. The same have also been subjected to Limited Review by the Statutory Auditor.
• 1. The operation of company relates to single segment i.e, manufacturer of Solar Photovoltaic Cells. However, no manufacturing activities have been carried out by the company during the quarter ending 31st December 2019.

4. Going Concern:

$\boldsymbol{z}$

The Company has continued to incur losses, its liabilities exceeds total asset and its net worth has been eroded as at 31st Dec, 2019.

No business activities have been carried out by the company during the period ended $31st$ Dec, 2019. The company is under Corporate Insolvency Resolution Process (CIRP) and has received two resolution plans from the prospective resolution applicants out of which the Committee of Creditors (CoC) has approved the resolution Plan of "Waaree Energies Limited". Although the same has not been physically submitted with Hon'ble NCLT till date.

Waree Energies Limited vide its letter dated 13/07/2020 has informed the resolution professional that they are withdrawing the resolution plan due to various reasons and further requested to refund the bid bond amount of Rs 1,00,00,000/-. The letter was submitted before CoC. After detailed discussion among the members of the CoC, legal counsel of the CoC and chairman it was decided that RP should request the Hon'ble NCLT for early hearing of application filed for approval of resolution plan, subsidy application and request the Hon'ble NCLT to direct the resolution applicant to honour its commitment and execute the plan.

Considering the 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.

1. The company is eligible for capital subsidy under SIP scheme of Govt. of India. Department of Electronics & Information Technology (DEIT) has 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. The RP has also filed an application before Hon'ble NCLT for early release of capital subsidy vide its application dated 02.01.2020 having diary number 0710102000292020.

• 1. The value of inventory of finished goods and raw material has been taken as nil, as it is expired, and its present market value is negligible.
• 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 31st December 2019 the Company's NFE is positive by Rs. 17,693.23 lakh without considering the import value of amortization of Line-C. However, after amortization of value of line C NFE becomes negative by Rs. 20,241.14 lakh. 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.
• 1. Considering the ongoing Corporate Insolvency Resolution Process, the uncertainty as to the realisation of unused tax losses cannot be ascertained at this stage. Consequently, adjustment to Deferred Tax (Net) have not been given effect to.
• 1. Previous period figures have been regrouped/rearranged whenever considered necessary to make them comparable with current period.

d Kumar Agarwal Chief Financial Officer

Taken on Record By Gulshan Gaba

$\sim$ Resolution Professional Regn no: IBBI/IPA-001/IP-P00548/2017-18/10978

Place: New Delhi Dated: 31.08.2020