(a) Property, Plant & Equipment pledged as security
For details of PPE pledged are given in Note 20(a).
(a) Additionally PPE has been pledged for loan taken by Resco Global Wind Service Private Limited (as fellow subsidiaries) loan outstanding as on 31st March 2024 H Nil (Previous year H 285,00 Lakhs).
(b) The title deeds of all the immovable properties held by the company (other than properties where the company executed in favour of the lessee) are held in the name of the company.
(c) The Company has not revalued its PPE (including ROU) as at the balance sheet date.
(i) Previous year the company had acquired 51% equity shares of I-Fox Windtechnik India Private Limited, an Independent O&M Wind Service Provider, on February 24, 2023. Accordingly, I-Fox Windtechnik India Private Limited has become a subsidiary of the Company with effect from 24th February, 2023.
(ii) During the year the company has acquired 51% equity shares of Resowi Energy Private Limited, an Independent O&M Wind Service Provider, on February 07, 2024. Accordingly, Resowi Energy Private Limited has become a subsidiary of the Company with effect from 7th February, 2024.
(iii) Investment in Equity shares and CCD in Nani Virani Wind Energy Private Limited (Subsidiary company) has been pledged as security to Power Finance Corporation Limited against loan taken by the subsidiary company (Nani Virani Wind Energy Private Limited).
(iv) Value of investment for H Nil (as at 31st March 2023 H 6,623.82 Lakhs) includes value of deemed equity as per Ind AS 109 is H Nil (as at 31st March 2023 H 3232.89 Lakhs).
The Company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed long term operation & maintenance contracts with the customers. Revenue in respect of such contracts will get recognised in future years as per the accounting policy of the Company. Based on these contracts , the Company has reasonable certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realize such assets in the near future. Accordingly, the Company has created deferred tax assets on its carried forward unabsorbed depreciation and business losses.
The Company has only one class of equity shares having par value of H 10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.
(e) Allotment of Equity Shares in lieu of other than Cash Consideration
i) During the previous year ended 31st March 2022, the company has issued 3,29,99,043 number of shares at a price of H 80.64/ per share, for a consideration other than cash in lieu of the debt/liability/provisions owed to the allottees on account of receipt of material / services / others / interest etc. from time to time.
ii) During the year ended 31st March 2024, the company has issued 16,66,666 number of shares at a price of H 48/ per share, for a consideration other than cash in lieu of investment of subsidiary namly I-Fox Windtechnik India Private Limited.
The CCPS shall carry a preferential right vis-a-vis equity share of H 10/- each of the Company (“Equity Shares”) with respect to payment of dividend and repayment in case of a winding up or repayment of capital. The CCPS shall not be redeemable as the same are compulsorily to be convertible into Equity Shares of the Company. Holder of the CCPS shall have the right to seek conversion of the CCPS into Equity Shares of the Company within 18 months from the date of allotment (“Tenure”). CCPS holder shall have an option to convert CCPS into Equity Shares during the Tenure by sending prior notice of its intention of such conversion. The Company shall convert the unexercised portion, if any, of allotted CCPS into the Equity Shares of the Company on the last day of the Tenure even if the Proposed Allottee does not exercise the conversion option. The CCPS shall be non-participating in the surplus funds and in surplus assets and profits, on winding-up which may remain after the entire capital has been repaid. All the 20,00,00,000 (Twenty Crore) CCPS allotted on variation of the terms of NCPRPS shall be converted into upto 4,16,66,666 (Four Crore Sixteen Lakh Sixty Six Thousand Six Hundred Sixty Six) fully paid up equity shares of face value of H 10/- each of the Company (“Equity Shares”), at a price of H 48/- (Rupees Forty Eight only) per Equity Share (including a premium of H 38/- (Rupees Thirty Eight only) for each CCPS (“Conversion Price”), from time to time, in one or more tranches and this Conversion Price has been determined based on the Valuation Report. The number of equity shares that each CCPS converts into and the price per equity share upon conversion of each CCPS shall be appropriately adjusted for splits or sub-divisions, reclassification, consolidation, exchange, or substitution of shares and for any capital reorganisation including bonus issues by the Company.
a) Retained earnings
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013 and also subject to levy of dividend distribution tax, if any. Thus, the amounts reported above may not be distributable in entirety.
b) Securities Premium
Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013.
c) General reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend or a portion of net profit kept separately for future purpose is disclosed as general reserve.
d) Debentures (unsecured):-
750 non convertible redeemable debentures of H 10 Lakhs each fully paid up, are issued at par, and carry interest @ 9.60% p.a. payable annually. Redemption of debenture on maturity i.e. after 24 Months from Deemed date of allotment i.e. 20 September 2022 and secured by an unconditional corporate guarantee from "Gujarat Fluorochemicals Ltd” upto H 4550 Lakhs.
*Cash credit H983.31 Lakhs taken from Yes bank carries interest @ MCLR Plus 1.5% against corporate guarantee of Inox Wind Limited and Inox Wind Energy Limited Limited. First Pari Passu charge on Current assets & second pari passu charges on Existing & Future movable fixed assets of the Company and Resco Global Wind Services Limited.
#Rupee term loans during the period amounting to H 2,000 Lakhs (Previous year H 2,400 Lakhs) carries interest @ MCLR plus 2.00% (Previous year MCLR Plus 2.00%) against corporate guarantee of Inox Wind Energy Limited and Inox Wind Limited and Security of First Pari Passu charge on Current assets & Existing & Future current assets of the Company and Resco Global Wind Services Limited.
#Inter-corporate deposit from holding and subsidiary company are unsecured, repayable on demand and carries interest @ 12%pa.
(b) Rights, preferences and restrictions attached to 0.01% Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares:
The Company has only one class of preference shares having par value of H 10 per share. These preference shares are bearing coupon rate @0.01% and are Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares (NCPRPS), fully paid-up, at par. These preference shares shall be redeemed at any time within a period of 5 years from the date of allotment and subscriber to these NCPRPS also has right to demand the redemption at any time within a period of 5 years from the date of allotment. These NCPRPS shall rank for dividend in priority to the Equity Shares of the Company and the holders of NCPRPS will be entitled to receive a participatory dividend in a financial year in which the Company pays dividend to its equity shareholders (Participatory dividend). Such participatory dividend will be payable at the same rate as the dividend paid on the equity shares. NCPRPS shall, in case of winding up, be entitled to rank, as regards repayment of capital and dividend (if declared by the Company), up to the commencement of the winding up, in priority to the equity Shares and shall also be entitled to participation in profits or assets or surplus funds, on the event of winding-up which may remain after the entire capital has been repaid. Holders of NCPRPS shall be paid dividend on a noncumulative basis. NCPRPS shall not be convertible into Equity Shares, shall not carry any voting rights, shall be redeemable at par at any time within a period not exceeding 5 (five) years from the date of allotment as per the provisions of the Companies Act, 2013.
The tax rate used for the year ended 31st March 2024 and year ended 31st March 2023, in reconciliations above is the corporate tax rate of 29.12% payable by corporate entities in India on taxable profits under the Indian tax laws.
Provision for tax in the standalone financial statement for the year ended 31st March 2024 and ear ended 31st March 2023 are only provisional in the respective years and subject to change at the time of filing of Income Tax Return based on actual addition/deduction as per provisions of Income Tax Act 1961.
36 : Capital Management
For the purpose of the Company's capital Management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.
The Company' s capital Management objectives are:
• to ensure the Company's ability to continue as a going concern
• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.
The carrying amount reflected above represents the Company's maximum exposure to credit risk for such financial assets. Investment in subsidiaries are classified as equity investment have been accounted as at historic cost. Since these are scope out of Ind AS 109 for the purpose of measurement, the same have not been disclosed in the above table.
(ii) Financial risk management
The Company's corporate finance function provides services to the business, coordinates access to financial market, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. The Company does not have any foreign currency exposure, hence is not subject to foreign currency risks. Further, the Company does not have any investments other than strategic investments in subsidiaries, so the company is not subject to other price risks. Market risk comprise of interest rate risk and other price risk.
b) Interest rate risk management
Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
Interest rate sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the end of the year. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's profit for the year ended 31st March 2024 would decrease/increase by H 15.65 Lakhs net of tax (for the year ended 31st March 2023 would decrease/increase by H 51.25 Lakhs net of tax). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings.
c) Other price risks
The Company's non listed equity securities as susceptible to market price risk arising from uncertainties about future values of the investment securities. Management monitors the investment closely to mitigate its impact on profit and cash flows.
d) Credit risk management
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables. The provision matrix at the end of the reporting period is as follows and during the year the Company has changed the provision matrix considering the long term outstanding and credit risk.
Trade receivables
Credit risk arising from trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management. The Company is providing O&M services and is having long term contracts with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable for the year ended 31st March, 2024 is H 4,776.38 lakhs (for the year ended 31st March 2023 is H 4,374.64 Lakhs from 6 major customers) are due from 5 major customers who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.
Loans and Other Receivables
The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the loans given by the Company to the external parties. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.
The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.
12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.
ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.
ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the Statement of Profit and Loss under the head Other Income/Other expenses respectively.
Other financial assets
Credit risk arising from other balances with banks is limited because the counterparties are banks.
e) Liquidity Risk Management
Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company and its holding company, which has established an appropriate liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity risk tables
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.
38 : Employee benefits:
(a) Defined Contribution Plans
The Company contributes to the Government managed provident and pension fund for all qualifying employees.
Contribution to provident fund of H 65.91 Lakhs (31st March 2023 : H 78.87 Lakhs ) is recognized as an expense and included in “Contribution to provident and other funds” in Statement of Profit and Loss.
(b) Defined Benefit Plans:
The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The level of benefits provided depends on the employee's length of service and salary at retirement age. The Company's defined benefit plan is unfunded.
There are no other post retirement benefits provided by the Company.
The actuarial valuation of the present value of the defined benefit obligation were carried out as at 31st March 2024 by M/s Charan Gupta Consultants Pvt Ltd, Fellow of the Institute of the Actuaries of India (for 31st March 2023 by M/s Charan Gupta Consultants Pvt Ltd, Fellow of the Institute of the Actuaries of India). The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.
Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk. a) Interest risk: a decrease in the bond interest rate will increase the plan liability.
b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.
Sensitivity analysis
Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The average duration of the defined benefit plan obligation at the end of period ended 31st March 2024 reporting period is 14.04 years (31st March 2023 : 14.14 years).
(c) Other long term employment benefits:
Annual leave & Short term leave
The liability towards compensated absences (annual and short term leave) for the period ended 31st March 2024 based on actuarial valuation carried out by using projected accrued benefit method resulted in decrease in liability by H 5.04 lakhs (31st March 2023: increase in liability by H 2.89 lakhs), which is included in the employee benefits in the Statement of Profit and Loss.
C) Guarantees/Securities
Inox Wind Energy Limited ("IWEL") and Inox Wind Limited has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31st March 2024 is H 983.31 Lakh (Previous Year H Nil).
Inox Wind Limited ("IWL") has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31st March 2024 is H 2,000 Lakh (Previous Year H Nil).
Gujarat Fluorochemicals Limited ("GFCL")(earlier known as Inox Fluorochemicals Limited), the fellow subsidiaries company, has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31st March 2024 is H 4,550 Lakhs (Previous Year H 10,459 Lakhs). Further GFCL has issued performance Bank Guarantee as at 31.03.2024 is H Nil Lakhs (Previous Year H 3,601 Lakhs)
The Company has issued Performance Bank Guarantee to 6 (Previous year 6) subsidiaries of H 5,578.20 Lakhs (Previous year H 5,578.20 Lakhs).
The Company has issued Corporate Guarantee and provided security as at 31st March 2024 is H Nil (Previous Year H 2,500.00 Lakhs), against term loan taken from financial Institution taken by Resco Global Wind Service Private Limited (fellow subsidiaries Company).
The Company has given security of H Nil (Previous Year is H 32,500 Lakhs) to Bank/financial institution against loan taken by Resco Global Wind Services Private Limited.
The Company has given security of H 19,215.79 Lakhs (Previous year is H 19,898 Lakhs ) to Bank/financial institution against loan taken by Nani Virani Wind Energy Private Limited.
Notes:
(a) Sales, purchases and service transactions with related parties are made at arm's length price.
(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.
(c) No expense has been recognised for the year ended 31st March 2024 and 31st March 2023 for bad or doubtful trade receivables in respect of amounts owed by related parties.
(d) There have been no other guarantees/security received or provided for any related party receivables or payables.
(e) Compensation of Key management personnel
40 : Balance Confirmation
The Company has a system of obtaining periodic confirmation of balances from banks, trade receivables/payables, advance to vendor and other parties. The balance confirmation letters as referred in the Standard on Auditing (SA) 505 (Revised) ‘External Confirmations', were sent to banks and parties and certain parties' balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.
|
42 : Contingent liabilities to the extend not provided for;
|
|
(H in Lakh)
|
|
Particulars
|
2023-24
|
2022-23
|
|
Claims against the Company not acknowledged as debt [Refer footnote (i)]
|
14,656.08
|
15,881.63
|
|
Guarantees Outstanding [Refer footnote (ii)]
|
7,281.20
|
10,562.60
|
|
Security provided on the behalf of third party [Refer footnote (iii)]
|
19,215.79
|
52,398.00
|
|
Total
|
41,153.07
|
78,842.23
|
Footnote i: Details of claims against the Company not acknowledged as debt
a) Claims against the company not acknowledged as debts: claims made by customers H 13,915.59 lakhs (Previous year H 12,102.07 lakhs).
b) Claims made by vendors in National Company Law Tribunal (NCLT) for H Nil (Previous year H 1,088.11).
c) In respect of VAT/GST matters H 491.31 lakhs (Previous year H 2,466.26 Lakhs)
The Company had received assessment orders for the financial years ended 31st March 2017 for demand of H 185.38 lakhs, in respect of Andhra Pradesh on account of VAT and CST demand on the issue of mismatch in ITC and non submission of statutory forms.
The Company has filed appeals before the first appellate authority in the matter of CST and VAT demands. The company has received entry tax demand order from Rajasthan VAT department for H Nil (Previous year H 697.31 lakhs).
The Company has also received tax demand from kerela GST Department for H 246.85 Lakhs. (Previous year H 251.13 Lakhs).
The Company has received show couse notice of H Nil (Previous year H 1,332.43 Lakhs) from GST Vadodara on account of input tax credit utilization and reply of same has been filed.
The Company has received show couse notice of H 59.08 Lakh (Previous year H Nil) from GST jaipur on account of input tax credit utilization.
d) In respect of labour cess under Building and Other Construction Workers Act, 1996 - H 239.99 lakhs (Previous year H 216.00 lakhs).
In respect of above matters, no additional provision is considered necessary as the Company expects favourable outcome. Further, it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.
Due to unascertainable outcome for pending litigation matters with Court/Appellate Authorities, the management expects no material adjustments on the standalone financial statements.
e) In respect of Income Tax matters H 9.19 (Previous year H 9.19 lakhs) in respect to under reporting of Income of A.Y. 2016-17.
Footnote ii: Guarantees Outstanding
a) Bank Guarantee issued by the Company to Central Transmission Utility of India Limited / Power System Operation Corporation Ltd H 1,600.00 Lakhs (Previous Year: H 1,910.00 lakhs).
b) Bank Guarantee issued by the Company to customer for H 103 Lakhs (Previous year H 574.40 Lakhs).
c) Company has issued Performance Bank Guarantee to Solar Energy Corporation of India is H 5,578.20 Lakhs (Previous year H 5,578.20 Lakh).
d) The Company has issued Corporate Guarantee and provided security as at 31st March 2024 is H Nil (Previous Year H 2,500.00 Lakhs), against term loan taken from financial Institution taken by Resco Global Wind Service Private Limited (fellow subsidiaries Company).
Footnote iii:Security Outstanding
The Company has given security of H Nil (Previous Year is H 32,500 Lakhs) to Bank/financial institution against loan taken by Resco Global Wind Services Private Limited.
The Company has given security of H 19,215.79 Lakhs (Previous year is H 19,898 Lakhs ) to Bank/financial institution against loan taken by Nani Virani Wind Energy Private Limited.
43 : Other Commitments Capital Commitments
Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is Nil (Previous year is Nil).
44 :Leases
The Company has adopted Ind AS 116 "Leases" effective from 01st April 2019 and considered all material leases contracts existing on 01st April 2019. The Company neither have any existing material lease contract as on 01st April 2019 nor executed during the year. The adoption of the standard dose not have any impact on the financial statement of the company. Following are the details of lease contracts which are short term in nature:
45 : Segment Information
The Company has presented segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments', no disclosures related to segments are presented in this standalone financial statements.
There is no any customers contributed more than 10% of the total Company's revenue amounting to H Nil (Previous year: Two customers amounting to H 7,940.27 lakhs).
46 : Revenue from contracts with customers as per Ind AS 115 (A) Disaggregated revenue information
In the following table, revenue from contracts with customers is disaggregated by primary major products and service lines Since the Company has only one reportable business segment, no reconciliation of the disaggregated revenue is required:
(B) Contract balances
All the Trade Receivables and Contract Liabilities have been separately presented in notes to accounts.
47 : Discontinued Operations / Asset held for sale
The company has decided to sale its Subsidiary company viz Nani Virani Wind Energy Private Limited vide its shareholders approval in Extra ordinary General Meeting resolution to IGREL Renewables Limited at gross consideration of H 29,000 Lakhs. The company is also transferring its related borrowing amounting to H 19,142 Lakhs. During the quarter the company has received H 4,900 Lakhs as part of the consideration.
48 : The Company has policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a straightline basis. O&M agreement of 126 WTGs (Previous year Nil WTGs) has been cancelled/modified with different customers and also services amounting to H 7,067 (31st March 2023 H Nil) are yet to be billed for which services have been rendered. The company's management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes & interest thereon, if any.
49 : Cost of material consumed has been computed by adding purchase to the opening stock and deducting closing stock.
50 : Commissioning of WTGs and operation & maintenance services against certain contract does not require any material adjustment on account of delays/machine availability, if any.
51 : The Company incorporated 6 wholly-owned subsidiaries (hereafter referred to as SPVs), through a request for selection (Rfs) process under the Solar Energy Corporation of India (SECI) to set up wind farm projects. The company invested funds in the SPVs through InterCorporate deposits for project execution, amounting to H 1,003.57 Lakh, and also provided bank guarantees of H 5,578.20 Lakh. The management believes that once the projects are commissioned and subject to pending regulatory matters and operational performance improvement, the company will be able to recover the funds from the SPVs and release the bank guarantees. However, as at March 31, 2024, the SPVs' project completion date had expired and applications for extensions are pending with regulators. In annual general meeting held on September 29, 2023 & September 29, 2023 of the Company and holding company respectively approves that if the group is unable to recover the funds provided as Inter-Corporate deposits and Bank Guarantee from the SPVs, the holding company will bear the costs.
52 : During the year, Inox Wind Limited (the holding company) as decided vide Board of Directors resolution dated February 10, 2023 and as approved by shareholders in annual general meeting held on 29th September, 2023 being related party transactions, has bear the losses of investment in subsidiary amounting to H 2,591.40 Lakh.
53 : During the previous year, Inox Wind Limited (the holding company) has vide Board of Directors resolution dated February 10, 2023 subject to members approval being related party transactions, decided to bear the losses of unrecovered ICD amounting to H 1,215.82 Lakh and reimbursed ‘bank guarantee invoked by SECI'/liquidated damages amounting to H 6,816.00 Lakhs. Further, During the year, the holding company also decided to bear the losses amounting to H 1,850 Lakh on account of unrecovered Investment made by IGESL in its associate i.e. Wind Five Renergy Limited on behalf of the holding company.
54 : Due to unascertainable outcomes for pending litigation matters with Court/Appellate Authorities, the Company's management expects no material adjustments on the Standalone Financial Statements.
55 : The Company has the policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a straight-line basis. Certain O&M services are to be billed by amounting to H 12,379.38 Lakh for which services have been rendered. On the basis of the contractual tenability, and progress of negotiations/discussions/arbitration/litigations, the company's management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes & interest thereon, if any.
(a) During the financial year ended March 31, 2023 the company has recognised the deferred tax @ 34.944% instead of prevailing rate of 29.120% (companies having turnover less than 400 Crore in previous financial year). The Impact of the changes has been recognised retrospectively.
57 : Corporate Social Responsibilities (CSR)
(a) The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility is Nil (previous year: Nil).
58 : Other statutory information's:
(i) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section 560 of the Companies Act 1956 during the year ended 31st March 2024 and 31st March 2023.
(ii) There are no charges or satisfaction which are to be registered with the registrar of companies during the year ended 31st March 2024 and 31st March 2023 except below:
(iii) The Company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2024 and March 31, 2023.
(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2024 and March 31, 2023.
(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder during the year ended March 31, 2024 and March 31, 2023.
(vi) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authorities during the year ended March 31, 2024 and March 31, 2023.
(vii) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to 237 of the Companies Act 2013 during the year ended March 31, 2024 and March 31, 2023.
(viii) During the year ended March 31,2024 and March 31,2023, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act 1961).
(ix) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) except shown below with the understanding (whether recorded in writing or otherwise) that the company shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
In respect of above transaction, the company has complied relevant provisions of the Foreign Exchange Management Act, 1999, Companies Act 2013 and Prevention of Money-Laundering Act, 2002 to the extent applicable.
(x) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
59 : The Code on Social Security, 2020 (‘Code') relating to employee benefits during employment and post-employment benefits has received Presidential assent on 28th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.
60 : There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.
61 : The Previous year Figures have been regrouped, wherever necessary to confirm the current year Presentation which is not material to the Company.
62 : The company adheres to the requirements of the Goods and Services Act ("GST Act") and "chapter- xvii of the Income Tax Act, 1961 by maintaining proper documentation and information. However, the company, currently, has certain pending compliances including certain reconciliation. Management believes that there will be no significant impact on the statements.
63 : During the previous year ended 31st March 2023, the Company has completed its Initial Public Offer (IPO) of 11,38,46,152 equity shares of face value of 10 each at an issue price of H 65 per share (including a share premium of H 55 per share). The issue comprised of a fresh issue of 5,69,23,076 equity shares and offer for sale of 5,69,23,076 equity shares by selling shareholders. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 23rd November, 2022. The total offer expenses are estimated to be H 5,298.97 lakhs which are proportionately allocated between the Company and the selling shareholders as per respective offer size. The Company's share of expenses of H 3,033.58 lakhs has been adjusted to securities premium.
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