Swelect Energy Systems Limited — Interim / Quarterly Report 2021

Feb 12, 2021

Stay powerful when sun shines. And thereafter ...

February 12, 2021

BSE Limited Department of Corporate Services Floor 25, P. J. Towers, Dalal Street, Mumbai-400 001.

National Stock Exchange of India Limited Listing Department Registered Office: "Exchange Plaza", C-1, Block G,Bandra - Kurla Complex, Sandra (E),Mumbai - 400 051.

Scrip Code: 532051

Scrip Code: SWELECTES

Dear Sir/ Madam,

Sub: Intimation on the outcome of the Board Meeting held on February 12, 2021 through Video Conferencing and disclosures under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

1. Unaudited Financial Results for the quarter and nine months ended December 31, 2020

Pursuant to the Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 ("LODR"), the Board of Directors at their meeting held today, approved the Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended 31 st December 2020 along with the Limited review report of the Auditors. In terms of Regulation 30 of the Listing Regulations, we enclose herewith the same for your information and record.

Pursuant to Regulation 47 of the LODR and SEBI Circular, we would be publishing an extract of the standalone and consolidated financial results in the prescribed format in English and Tamil Newspapers within the prescribed time. The details of the standalone and consolidated financial results of the Company would be available on the website of the Company www.swelectes.com as well as on the websites of the stock exchanges.

The meeting commenced at 2.30 p.m. and ended at4::..l§:.p.m.

We request you to take the above on record.

T,hanking you, v>urs faithfully, �d�.r SWELECT Energy Systems L�=���� ...

. 'rn/

			Quarter Ended		Nine months ended		(Rs. In Lakhs exceot EPS<br>Year Ended
	S.No. PARTICULARS	30Seot 202031 Dec 2020		31 Dec 2019	31 Dec 2020	31 Dec 2019	31 March 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Income
	Revenue From Operations	3,034.29	1,894.64	3,883 .12	9,782.95	10,832.51	14, 204,04
	Other Income	891.40	773,02	925 .15	2 747,90	2 404,22	3 170,98
1	Total Income	3,925 .69	2.667.66	4,808.27	12,530.85	13,236.73	17,375.02
	Expenses
	a. Cost of Materials Consumed	1,830.14	373.68	3,170.44	3,649.04	8,127.14	9,839.85
	b. Purchase of Stock-in-Trade	384, 78	13.26	6.18	421.66	96.34	111.66
	c. ;~~!:i::)~~~~~~:,e Work-in-progress~	(646.01)	(21.84)	(563.98)	858. 78	(1,767.28)	(1,q4A.71)
	1;ns9t~~~~iln-~~.~~o:i:~I1
	d. Employee Benefits Expense	290,70	253.52	276,85	766.14	897.12	1,194.66
	e. Depreciation and Amortisation expensef. Finance Costs	393.98324.49	368.95296.44	443.00257. 75	1,137.79886,06	1, 278.23752.48	1,659.43
	g. Other Exnenses	797.36	611.85	859 .58	2 297 ,58	3 125, 76	981.154 481.64
2	Total Expenses	3,375.44	1,895.86	4,449.82	10,017.05	12,509.79	16,319.66
3	Profit before Exceptional Jt•m• and Tax ( 1- 2)	550.25	771.80	358.45	2,513.60	726.94	1,055.36
4	Exceptional Items (Refer Note 2)						(2.471.99)
5	Profit/Closs) before Tax (3+4)	550.25	771.80	358.45	2.513.80	726.94	(1,416.63)
6	Tax expense: ( Refer Note 4)
	(i) Current Tax			77,16		184,80	256.53
	(ii) Deferred T.:ix
	Total Tax Expense			77 .16		184.80	256.53
78	Profit/Closs) for the period (5•6)Other Comprehensive Income	550.25	771.80	281.29	2,513.60	542.14	(1,673.16)
	A. i) Items that will not be reclassified to orofit or loss						54,88
	II} Income tax relating to Items that will not be reclassified
	to orofit or loss						(9.59)
	B. i) Items that will be reclassified to profit or loss
	ii) Income tax relating to items that will be reclassified to
	orofit or lossTotal Other Comprehensive Income for the period						45.29
9	Total Comprehensive Income/ (Loss) for the period17+8\	550.25	771.60	281.29	2,513.80	542.14	(1,627.87)
10	Paid up Equity share Capital (Face value of Rs.10/-)	1,515.88	1,515.88	1,515.88	1.515.88	1,515.88	1,515.88
11	Reserves (Other Equity)						64,263.04
12	Earning Per Share (EPS) of Rs. LO/- each (Not Annualised)
	(a) Basic	3,63	5.09	1.86	16.58	3.58	(11.04)
	lb\ Diluted	3.63	5.09	1.86	16.58	3. 58	/11.04\

SWELECT ENERGY SYSTEMS LIMITED Corporate Identity Number: L93090TN1994PLC028578 Registered & Corporate Office: 'SWELECT HOUSE' 5, Sir P.S. Sivasamy Salai, Mylapore, Chennai - 600 004.

Standard 34 "Intef"im Financial Reporting" ("Ind AS 34") as prescribed under Section 133 of the Companies Act, 2013 ("the Act"), which has been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 12 February 2021. The Statutory Auditors of the Company have conducted a "Limited Review" of the above unaudited standalone financial results for the quarter and nine months ended 31 December 2020.

1. The Company has investments (net) aggregating Rs. 7,877.18 lakhs and loans & advances aggregating Rs.4,444.29 lakhs as at 31 December 2020 in two operating subsidiaries of the Company whose net worth is either substantially eroded and/ or revenues have significantly reduced, as per the audited financial statements of those subsidiaries as at 31 March 2020 and unaudited results for the nine months period ended 31st December 2020. During the previous year ended 31 March 2020, the Company had carried out a detailed assessment of the recoverability of its investments and loans & advances duly considering revenue projections of the subsidiaries based on the most recent long-term forecasts, resultant cash flows using an appropriate discount rate as well as significant estimates and judgements involving certain new projects and expected clearances and approvals from relevant authorities. All of these estimates and j udgements have inherent uncertainties and the actual results may differ from that estimated as at the date of the Balance sheet. The estimation of revenue projections is based on the Management's assessment of probability of securing new businesses in the future, duly considering adverse business impact and uncertainties arising on account of the COVID·L9 pandemic to the extent known. The impact of COVID-19 on the Company's financial results is not material as on date.

The Company based on the earlier assessment, made a provision for diminution in the value of investment relating to one of the subsidiaries for Rs.2,471.99 lakhs and disclosed the same as an e)(ceptional item in the standalone financial statements/results of the Company for the quarter and year ended 31 March 2020. The Management has concluded that the carrying value of the investments, net of the above provision, and Loans & Advances are recoverable duty considering the expected future business projections as at 31st December ::rn70, ;:1s thP.re hs hP.P.n no RiiQnifir,ant ;:,dv!:!rse changes in the results of operations during the quarter and nine monlhs t!r1Llt!tl 31st Dt!cmll~r 2020 iS ntl CiSsh flows during the nine months from what was previously estimated.

1. A nationwide lockdown was announced by the Government of India w.e.f. 24 March 2020 as a result of the outbreak of COVID 19 pandemic. Due to the lockdown announced by the Government of India, since 24 March :.:io;,o thP. opP.rations of th Comp,:1ny t:'etme to a temporary-halt, As per MNRE guidelines, SolRr PowP.r Gfmflrntino pl;:1nt~ r.ontiniJAti In Of'lAr"ltlnn with thfl plant stoff -:'lfter obtaining perml!i!ilon from the local Juthoritic:..

Thi'! C:cunpt1ny i'> r1<;-;t>-;-;1nu th~ rt:11:ovf:'rat.1lllty of ret:'elvables, property plant and equipment, other intangible assets and certain investments and comi1dered internal and external lnform.ition up to the dutc of nrrrnvul of the tinonciol rc::>ult::> including credit rcporu and economic forcco!t!. The: Company hei! p!;1 'fv11nie:d e11siU/ily .:111alyb u11 Lin~ assu111µllv11:, u::.tl d11LI I.Jc:i:,t!LI u11 LUt rt!11l l11LIILdlu1:, uf fulu, ~Lu11u111lt.: w11Lllllu11s, the Co111µd11y expects to recover the carrying amount of these assets. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.

1. The Company has opted for the concessional rate of tax as per the Taxation Laws (Amendment) Ordinance, 2019 and considering the eligible carry forward losses, no tax provision has been made for the quarter and nine rnomhs ended 31 December 2020.

s The business of the Company falls under a single primary segment i.e., "Solar and other related activities" for the purpose of Ind AS 108.

6 The Indian Parllament has approved the Code on Social Security, 2020 which would impact contributions by the Company towards Provident Fund and Gratuity. The Company will assess the Impact of these Codes and give effect in the financial results when the Rules/Schemes thereunder are notified.

!he standalone unaudited tinancla l results are also available on the websites of the Company and on the Stock Exchange websites www.bselndla.com and www.nseindia.com.

Pond on behalf of the Board Place : Chennai R. Ch\t.n - Date: 12 February 2021Managing Director /4G'I SYs

1

	STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ANO NINE MONTHS ENDED 31 DECEMBER 2020
		Quarter ended			Nine months ended	(Rs. in Lakhs exceot EPSlYear ended
S.No	PARTICULARS	31 December	30 September			31 December 2019 31 December 2020 31 December 2019 31 March 2020
		2020Unaudited	2020Unaudited	Unaudited	Unaudited	Unaudited	Audited
	IncomeRevenue from Operations	5,860.58	5,213.35		17,398.41	18,915.82	25,221.82
	Other Income	921.28	658.97	6,300.65766.74	2,634.91	2,147,24	2,759.30
1	Total Income	6,781.86	5,872.32	7,067.39	20,033.32	21,063.06	27,981.12
	Expenses
	a. Cost of materials consumedb , Purchase of Stock-in-Trade	2,740.00381.78	396.3161.67	4,146.0565.74	6,289.62577.01	10,431.641,263.01	13,212.881.382.47
	C. Increase)/ Decrease in Inventories of Finished goods, Work-In-	(661.78)	1,378.88	(750.36)	616.82	(2,069. 76)	(2,250.28)
	progress and Stock-in -Traded. Employee benefits expense	608.23	590. 10	599.91	1,645.69	1,874.21	2,415.12
	e. Depreciation and amortisation expense	707.05	684.67	782.71	2,086.39	2,210.42	2,985. 25
	f. Finance Costsg. Other exoenses	477.471,629.96	433.941,319.38	403 .641,425.32	1,318.984,404 .80	1,264.355,330.04	1.725.907 689.39
2	Total expenses	5,882.71	4,864.96	6,673.01	16,939.31	20,303.91	27,160.73
3	Profit before Exceptional Item and Tax( 1- 2)	899.15	1,007.37	394.38	3,094.01	759.15	820.39
4	Exceptional Item						(1.522.61)
5	Profit before Tax Expense (3+4)	899.1 5	1,007.37	394.38	3,094.01	759,15	(702,221
6	Tax expense:(f) Current Tax	18.06	33.70	179.27	90.08	288.28	410.81
	(II) Deferred Tax Including MAT	(9.6 1)	(42 .36)		(47.30)		(96.15)
	Total Tax Expense	8.45	(8.66)	179.27	42.78	288.28	314.66
7	Net Profit after Tax Expense (SM6)Other Comprehensive Income	890,70	1,016.03	215.11	3,051.23	470.87	(1,016.88)
8	A i) Items that will not be reclassified to profit or loss						54.88
	II) Income tax relating to Items that will not be
	reclassified to profit or loss						(9.77)
	BI) Items that will be reclassified to profit or loss	(128.41)	139.15	31.08	24.91	182.35	866.52
	II) Income tax relating to items that will bereclassified to profit or loss
	Total Other Comprehensive Income for the period	(128.41)	139.15	31 .08	24.91	182.35	911.63
9	Total Comprehensive Income for the period (7+8)	762.29	1,155.18	246.19	3,076.14	653.22	(105.25)
	10 Paid up Equity share Capital (Face value of Rs.10/·)	1,515.88	1,515.88	1,515.88	1,515.88	1,515.88	1,515.88
	11 Reserves (Other Equity)						70,432 .75
	12 Earnings Per Share (EPS) of Rs.10/ M each (notannualised)
	(a)Basic	5.88	6.70	1.42	20.13	3.11	(6.7 1)
	lb\ DIiuted	5.88	6.70	1.42	20.13	3.11	(6.71'
1	NOTES:The unaudited consolidated flnanclal results for the quarter and nine months ended 31 December 2020 have been prepared In accordance wlth the recognition and measurement principles laiddown In Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") which has been reviewed by the Audit Committee and approved by the Board of Directors at Its meeting held on12 February 202 1. The Statutory Auditors of the Company have conducted a "Umited Review" of the above unaudited consolidated financial results for the quarter and nine months 31 December2020.
2	The consolidated results for the quarter ended 30 September 2020, Quarter and Nine months ended 31 December 2020, 3 1 December 2019 and year ended 31 March 2020 include the results ofthe Group's wholly owned subsidiaries/ step down subsidiaries :a) Amex Alloys Private Limitedb) Swelect Green Energy Solutions Private Limitedc) Swelect Energy Systems Pte. Limitedd) Swelect Power Systems Private Limitede) Swelect Solar Energy Private Limitedf) KJ Solar Systems Private Limitedg) Noel Media & Advertising Private Umltedh) Swelect Inc.,USAI) Swelect Energy Systems LLC, USA (Dissolved effective 31 December 2019)j) SWEES Employees Welfare Trust
	*During the period ended 31 December 2020, Swelect Sun Energy Private Limited has been incorporated as a wholly owned subsidiary of Swelect Energy Systems Limited. However, there hasbeen no infusion of capita! and the operations of the entity ls yet to be commenced s of 31st December 2020 and hence the same was not consolidated.
3	The Group carries property, plant and equipment (net) and other intangibles assets aggregating Rs. 9,286.73 lakhs as at 31 December 2020, relating to two operating subsidiaries of the Groupwhose net worth is either substantially eroded and/or revenues have signlflcantly reduced, as per the audited standalone financial statements of those subsidiaries as at 31 March 2020 andunaudited results for the nine months ended December 2020. The Group had, as at 31 March 2020, assessed the recoverability of its property, plant and equipment duly considering revenueprojections of the subsidiaries based on the most recent long-term forecasts, resultant cash flows using an appropriate discount rate as well as significant estimates and judgements involvingcertain new projects, expected clearances and approvals from relevant authorities. All of these estimates and judgements have Inherent uncertainties and the actual results may differ from thatestimated as at the date of the Balance Sheet. The estimation of revenue projections Is based on the Management's assessment of probability of securing new businesses in the future, dulyconsidering adverse business Impact and uncertainties arising on account of the COVID-19 pandemic to the extent known. The Impact of COVID-19 on the Group's financial results may differ fromthat estimated as at the date of approval of these financial results dependent on circumstances that evolve In the future.
	Based on the assessment, the Group had made a provision for Impairment of property plant and equipment In Its consolldated financfal statements for the quarter and year ended 31 March 2020to the ex tent of Rs. 1,522.61 Lakhs, which is disclosed in the consolidated flnanclal statements/results as an exceptlonal item. The Management has concluded that the carrying value of theproperty, plant and equipment and Intangible assets are recoverable duly considering the expected future recoverable value as at 31 December 2020, as there has been no significant adversechanges in the results of operations during the quarter and nine months ended 31 December 2020 and cash flows during the nine months from what was prevlously estimated.

SWELECT ENERGY SYSTEMS LIMITED

The business of the group has been segregated Into segments for the purpose of Ind AS 108, details of which are given below :Unaudited Consolidated Segment wise Revenue, Results and Capital Employed
PARTICULARS		Quarter ended			Nine months ended
	31 December2020	30 September2020			31 December 2019 31 December 2020 31 December 2019 31 March 2020
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
SEGMENT REVENUE:
Solar Energy Systems / Services	3,115.09	2,706.38	4,366,56	10,753,12	12,747.96	17,053.90
Foundry	2,856.13	2,614.65	2,021.61	6,891.20	6,674.53	9,010,99
Less: Inter segment Revenue	( 11 0 .64)	(107 .68)	(87.52)	(245.91)	(506.67)	(843.07)
Total Revenue from Operations	5 860,58	5 213,35	6 300.65	17 398,41	18 915.82	25 221.82
SEGMENT RESULTS:
Solar Energy Systems / Services	5.72	4 54.50	151.49	1,121.74	155.93	(175. 77)
Foundry	449,62	327.84	(120.21)	656.34	(279.67)	(37.24)
Total Segment Results	455,34	782.34	31,28	1,778,08	(123,74)	(213,01)
Add/ (Less) ,
Other Income	921.28	658.97	766.74	2,634.9 1	2, 147 .24	2,759.30
Interest and other flnanclal charges	(477.47)	(433.94)	(403.64)	(1,318.98)	(1, 264.35)	(1,725.90)
Profit before tax	899,15	1,007,37	394,38	3,094.01	759,15	820.39
Exceptional itemIncome Taxes						(1,522.61 )
Profit after tax	8.45890,70	(8.66)1 016.03	179.27215.11	42.783 051,23	288,28470,87	314.66(1 016,88)
SEGMENT ASSETS,
Solar Energy Systems / ServicesFoundry	60, 134.859,821.20	53,336.559,619.39	61,216.499,976.40	60,134.859,821.20	61,216.499,976.40	52,097.299,582.97
unallocable #	37 671.84	45 160,32	32 464.03	37 671.84	32 464.03	43 016.54
Total	1 07 627,89	108116.26	1 03 656,92	1 07 627,89	1 03 656,92	1 04 696,80
SEGMENT LIABILITIES:
Solar Energy Systems/ Services	5,779,63	5,917.27	4,912 .26	5,779.63	4,912.26	6,003.96
Foundry	3,387.70	3,601.02	3,436.47	3,387.70	3,436.47	4,051. 17
unallocable #	23 553.52	24 452. 17	22,085.42	23 553.52	22 085.42	22 693.05
Total	32 720.85	33 970.46	30 434.15	32 720.85	30 434,15	32 748.18
SEGMENT CAPITAL EMPLOYED:
(SEGMENT ASSETS-SEGMENT LIABILITIES)
Solar Energy Systems / ServicesFoundry	54,355.226,433.50	47,419.286,018.37	56,304.236,539.94	54,355.226,433,50	56,304.236,539.94	46,093.335,531.80
unallocable #	14 118.32	20 708.15	10 378.60	14 118.32	10 378,60	20 323.49
Total	74 907.04	74 145,80	73 222.77	74 907.04	73 222,77	71 948,62
# Unallocable assets and llabllltles include all tax assets and llabllitles (including deferred tax) and such balances, being Investments, Investment Property, Cash and Bank balances andborrowings, which are used Interchangeably between segments/unallocable.5 The Parent Company and one subsidiary has opted for the concessional rate of tax as per the Taxation Laws (Amendment) Ordinance, 2019 and considering the elfglble carry forward losses, no taxprovision has been made for the quarter and nine months ended 31 December 2020.6 The Indian Parliament has approved the Code on Social Security, 2020 which would impact contributions by the Group towards Provident Fund and Gratuity. The Group will assess the impact of
these Codes and give effect in the financial results when the Rules/Schemes thereunder are notified.7 The previous period's figures have been regrouped / reclassified wherever necessary to correspond with the current period's classlflcatlon / disclosure.
8 The Consolidated unaudited financial results are also avai lable on the website of the Company and on the Stock Exchange websites www.bseindia.com and www.nselndia.com.
,·t·"-,_,,Sw feetLimitedEnergySystems
Place:Chennai			R,cljan

~'f; * "',p 'I' -

Chartered Accountants ASV N Ramana Tower 52, Venkatnarayana Road T. Nagar Chennai – 600 017 Tamil Nadu, India

Tel: +91 44 6688 5000 Fax: +91 44 6688 5050

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SWELECT ENERGY SYSTEMS LIMITED

• 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of SWELECT ENERGY SYSTEMS LIMITED ("the Company"), for the quarter and nine months ended 31 December 2020 ("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.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion 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 (ICAI). 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. 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.
• 1. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

1. We draw attention to Note 2 of the standalone unaudited financial results, which describes the Management's assessment of impairment in two operating subsidiaries and its assessment of the carrying value of investments and loans & advances given to two subsidiaries, either on account of erosion of networth and/or significant reduction in revenues in those subsidiaries.

The Company has also taken into consideration the adverse business impact and uncertainties arising from COVID 19 pandemic. Such estimates are based on current facts and circumstances and may not necessarily reflect the future uncertainties and events arising from the full impact of the COVID 19 pandemic.

Our opinion is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

C Manish Muralidhar (Partner) (Membership No. 213649) Place: Hyderabad (UDIN: 21213649AAAAAU9671)

Date: 12 February 2021 MM/MS/GR/2021/13

Chartered Accountants ASV N Ramana Tower 52, Venkatnarayana Road T. Nagar Chennai – 600 017 Tamil Nadu, India

Tel: +91 44 6688 5000 Fax: +91 44 6688 5050

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SWELECT ENERGY SYSTEMS LIMITED

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of SWELECT ENERGY SYSTEMS LIMITED ("the Parent" or "the Company") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter and nine months ended 31 December 2020 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. 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.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

1. The Statement includes the results of the following entities:

Parent:

Swelect Energy Systems Limited

Subsidiaries:

• i. Amex Alloys Private Limited (subsidiary of the Company)
• ii. Swelect Energy Systems Pte. Limited (subsidiary of the Company)
• iii. Swelect Green Energy Solutions Private Limited(subsidiary of the Company)
• iv. Swelect Power Systems Private Limited(subsidiary of the Company)
• v. Swelect Solar Energy Private Limited(subsidiary of the Company)
• vi. KJ Solar Systems Private Limited(subsidiary of (v) above)
• vii. Noel Media & Advertising Private Limited(subsidiary of (v) above)
• viii. Swelect Inc., USA(subsidiary of the Company)
• ix. Swelect Energy Systems LLC, USA (subsidiary of (viii) above)[Dissolved effective 31 December 2019]
• x. SWEES Employees Welfare Trust
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We draw attention to Note 3 of the unaudited consolidated financial results, which describes the Management's assessment of impairment of property, plant and equipment and other intangible assets in two operating subsidiaries, either on account of erosion of networth and/or significant reduction in revenues in those subsidiaries.

The Group has also taken into consideration the adverse business impact and uncertainties arising from COVID 19 pandemic. Such estimates are based on current facts and circumstances and may not necessarily reflect the future uncertainties and events arising from the full impact of the COVID 19 pandemic.

Our opinion is not modified in respect of this matter.

1. We did not review the interim financial results of 3 subsidiaries included in the consolidated unaudited financial results, whose interim unaudited financial information reflect, total revenues of Rs. 6,380.41 lakhs, total profit after tax of Rs. 307.69 lakhs and total comprehensive income of Rs. 307.69 lakhs for the nine months ended 31 December 2020, and total revenues of Rs. 2,346.76 lakhs, total profit after tax of Rs. 124.90 lakhs and total comprehensive income of Rs. 124.90 lakhs for the three months ended 31 December 2020 as considered in the Statement. These interim unaudited financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.

Our conclusion on the Statement is not modified in respect of these matters.

1. The consolidated unaudited financial results includes the interim unaudited financial information of 6 subsidiaries which includes 3 step down subsidiaries which have not been reviewed by their auditors, whose interim unaudited financial information reflect total revenues of Rs.334.29 lakhs, total profit after tax of Rs.55.61 lakhs and total comprehensive income of Rs. 55.61 lakhs for the nine months ended 31 December 2020, total revenues of Rs.100.25 lakhs, total profit after tax of Rs.18.89 lakhs and total comprehensive loss of Rs. 18.89 lakhs for the three months ended 31 December 2020 as considered in the Statement. According to the information and explanations given to us by the Management, these interim unaudited financial information are not material to the Group.

Our Conclusion on the Statement is not modified in respect of our reliance on the interim unaudited financial information certified by the Management.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

C Manish Muralidhar (Partner) (Membership No. 213649) (UDIN: 21213649AAAAAV1160)

Place: Hyderabad Date: 12 February 2021 MM/MS/GR/2021/14