We have audited the standalone financial statements of Inox Wind
Limited (“the Company”), which comprise the balance sheet as at
31st March 2025, and the statement of Profit and Loss, statement
of changes in equity and statement of cash flows for the year
then ended, and notes to the standalone financial statements,
including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as the Standalone
Financial Statements).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2025, and Profit, total
comprehensive income, changes in equity and its cash flows for
the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities
under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the Standalone
financial statements under the provisions of the Companies Act,
2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for
our opinion on Standalone Financial Statements.
Emphasis of matter
1. We draw attention to Note 42 to the Standalone Financial
Statement regarding pending litigation matters with Court/
Appellate Authorities. Due to the significance of the balance
to the financial statements as a whole and the involvement of
estimates and judgement in the assessment which is being
technical in nature, the management is of the opinion that the
company will succeed in the appeal and there will not be any
material impact on the statements on account of probable
liability vis-a-vis the provisions already created in the books.
2. We draw attention to Note 44 of the Standalone Financial
Statement which describes that the balance confirmation
letters as referred to in the Standard on Auditing (SA) 505
(Revised) 'External Confirmations', were sent to balances
from banks, trade receivables/payables/advances to
vendors and other parties (other than disputed parties)
and certain party's 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.
3. We draw attention to Note 54 of the Standalone Financial
Statement regarding invested funds in 6 SPVs.
4. We draw attention to the fact which describes that
the supply/Commissioning of WTGs/operation and
maintenance services against certain contracts does not
require any material adjustment on account of delays/
machine availability, if any.
5. We draw Attention to Note 27 of the Standalone Financial
Statement which states that the company has written back
the statutory liabilities of custom duties saved on import
against expired EPCG licenses (including interest thereon)
amounting to H 5,012 Lakh based on the extension of
expired EPCG licenses under consideration/granted. Due to
unascertainable outcomes for licenses under consideration
and the significance of the balance to the financial statements
as a whole and the involvement of estimates and judgement
in the assessment, management believes that there will be
no significant impact on the statements.
6. We draw Attention to Note 64 of the Standalone Financial
Statements, which states that the Company has certain
disagreements with one of its customers/clients, its
associates/affiliates for certain pending projects due to
various matters, i.e., Curve Test, PLF, Grid compliances
and delays due to covid -19 pandemic, etc. After various
discussions with the Customer/client, the company has taken
back certain un-commissioned Wind Turbine Generators
(WTG) and entered into a settlement understanding dated
May 06, 2024 to settle all outstanding recoverable balances
and other related matters.
Our report is not modified in respect of the above matters
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be
communicated in our report.
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Key Audit Matters
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How our audit addressed the key audit matter
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Inventory Valuation
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The Company is primarily in the business of manufacturing of
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In view of the significance of the matter we applied the following
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Wind Turbine Generators and the inventory primarily consists
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key audit procedures in this area, among others to obtain sufficient
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of raw materials related to Wind Turbines Generators and WIP
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appropriate audit evidence:
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and Finished goods. Inventories are valued at a lower cost or net
realizable value. There is a risk that inventories may be stated at
values that are not representative of the costs or at values that are
more than their net realizable value (‘NRV’).
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•
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Obtaining an understanding of and assessing the design,
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implementation and operating effectiveness of the
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Company’s key internal controls over the process for valuation
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of inventories.
Comparing the cost of raw materials with supplier invoices,
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We identified the valuation of inventories as a key audit matter
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because the Company held significant inventories at the reporting
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on a sample basis. For work-in-progress and finished goods,
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date and a significant degree of management judgment and
estimation was involved in valuing the inventories.
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challenging, the key assumptions concerning overhead
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allocation by assessing the cost of the items included in
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See Note 12 to the Standalone Financial Statement
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overhead absorption on a sample basis.
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In connection with NRV testing, selecting inventory items, on
a sample basis, at the reporting date and comparing their
carrying value to their subsequent selling prices as indicated in
sales invoices subsequent to the reporting date.
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Revenue Recognition and Impairment of Trade Receivables
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Revenue is recognised when the control of the underlying
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In view of the significance of the matter we applied the following
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products has been transferred to the customer. We have identified
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audit procedures in this area, among others to obtain sufficient
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recognition of revenue as a key audit matter as revenue is a key
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appropriate audit evidence:
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performance indicator. There is presumed fraud risk of revenue
being overstated during the year on account of variation in
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We evaluated the design of key internal financial controls
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the timing of the transfer of control due to pressure to achieve
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and operating effectiveness of the relevant key controls with
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performance targets and meeting external expectations.
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respect to revenue recognition.
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Trade receivables are mainly comprised of receivables from state
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Obtained an understanding of the systems, processes and
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government-owned enterprises and private dealers. We have
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controls implemented by the Company for measurement of
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identified the impairment of trade receivables as a significant
audit matter on account of the significant judgment and estimate
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impairment of Trade Receivable.
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involved. These factors include the customer’s ability and
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Evaluated the Company’s revenue recognition and
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willingness to pay the outstanding amounts, past due receivables,
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measurement of impairment of trade receivable
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and financial and economic difficulties of customers.
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accounting policies by comparing with applicable Indian
accounting standards.
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(Refer Note 40 (vii) of the standalone financial statements)
This assessment is done for each customer resulting from
possible defaults over the expected life of the receivables. Based
on this assessment, the credit loss rate is determined in the
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Performed substantive testing (including year-end cut-off
testing) by selecting statistical samples of revenue transactions
recorded during the year, and verifying the underlying
documents i.e. Contracts, Sales Order, Sales invoices and
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provision matrix. The credit loss rate is based on the experience of
actual credit losses over past years adjusted to reflect the current
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shipping documents, customer acceptance etc.
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economic conditions and forecasts of future economic conditions.
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Tested manual journals posted to revenue and trade receivable
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Based on such credit loss rate, the company recorded expected
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during the year to identify unusual items.
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credit loss (ECL) allowance for trade receivable.
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Scrutinized sales returns/reversals/credit notes recorded
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In view of this, we have considered the measurement of ECL on
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in the general ledger subsequent to year-end to identify any
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trade receivables as a key audit matter.
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significant unusual items.
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Performed analytical procedures on sales such as trend
analysis to identify any unusual fluctuations.
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Obtaining an understanding of how the Company establishes
an allowance for doubtful debts and impairment represents its
estimate of incurred losses in respect of trade receivable.
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Key Audit Matters
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How our audit addressed the key audit matter
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We have evaluated the historical accuracy of impairment for
trade receivables on a sample basis by examining the actual
write-offs, the reversal of previously recorded allowance and
new allowances recorded in the current year.
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We have verified the Expected credit loss (ECL) provision
working for trade receivable. Verified the Trend Analysis
for trade receivable and checked the percentage applied
for ECL provision.
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We have checked the ageing analysis (including testing
of information produced by entity), on a sample basis and
subsequent receipt of the trade receivables, to the source
documents, including bank statements.
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Assessed the adequacy of the related disclosures in
the Standalone Financial Statement with reference to
revenue recognition and trade receivable as per relevant
accounting standards.
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Litigation Matter
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The Company has certain significant pending legal proceedings
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Assessed the management’s position through discussions
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with Judicial/Quasi-Judicial for various complex matters with
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with the in-house legal expert and external legal opinions
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contractor/transporter, customer and other parties, continuing
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obtained by the Company (where considered necessary) on
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from earlier years.
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both, the probability of success in the aforesaid cases, and the
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Further, the company has material uncertain tax positions including
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magnitude of any potential loss.
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matters under dispute which involve significant judgment to
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Discussed with the management on the development of these
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determine the possible outcome of these disputes.
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litigations during the year ended March 31, 2025.
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Refer to Note 42 of the Standalone Financial Statement.
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Rolled out enquiries to the management of the Company and
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Due to the complexity involved in these litigation matters,
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noted the responses received and assessed the same.
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management’s judgement regarding the recognition and
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Assessed the objectivity, independence and competence of
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measurement of provisions for these legal proceedings is
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the Company’s legal counsel (where applicable) involved in the
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inherently uncertain and might change over time as the outcomes
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process and legal experts engaged by the company, if any.
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of the legal cases are determined. Accordingly, it has been
considered as a key audit matter.
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Reviewed the disclosures made by the Company in the
Standalone Financial Statement in this regard and emphasized
the matter in para 1 of our report.
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Information Other than the Standalone Financial
Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Management Discussion and Analysis, Board’s
Report including Annexures to Board’s Report, Corporate
Governance and Shareholder’s Information (hereinafter referred
as “the Reports”), but does not include the Standalone Financial
Statements and our auditor’s report thereon. The Reports
are expected to be made available to us after the date of this
auditor’s report.
Our opinion on the Standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
Responsibilities of Management and Those Charged
with Governance for the Standalone Financial
Statement
The Company’s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 (“the Act”)
with respect to the preparation of these Standalone financial
statements that give a true and fair view of the financial position,
financial performance (including other comprehensive income),
changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India,
including the Indian accounting Standards specified under section
133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection
and application of appropriate implementation and maintenance
of accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the Standalone financial statement that give a true
and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the Standalone financial statements, management is
responsible for assessing the Company’s ability to continue as a
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.
Those Board of Directors are also responsible for overseeing the
company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether
the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has
adequate internal financial controls system with reference
to the Standalone Financial Statements in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the
related disclosures in the standalone financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures,
and whether the standalone financial statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements may
be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matter
The statutory audit was conducted via making arrangements to
provide requisite documents/ information through an electronic
medium. The Company has made available the following
information/ records/ documents/ explanations to us through
e-mail and remote secure network of the Company: -
a) Scanned copies of necessary records/documents deeds,
certificates and the related records made available
electronically through e-mail or remote secure network of
the Company; and
b) By way of enquiries through video conferencing, dialogues
and discussions over the phone, e-mails and similar
communication channels.
It has also been represented by the management that the data
and information provided electronically for the purpose of our
audit are correct, complete, reliable and are directly generated
from the accounting system of the Company, extracted from the
records and files, without any further manual modifications so as
to maintain its integrity, authenticity, readability and completeness.
In addition, based on our review of the various internal audit
reports/inspection reports/other reports (as applicable), nothing
has come to our knowledge that makes us believe that such an
audit procedure would not be adequate.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020
(“the Order”), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the “Annexure A” statement on the
matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
2. With respect to the other matters to be included in the
Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in
accordance with the provisions of Section 197 of the Act.
Our opinion is not modified in respect of this matter.
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss,
statement of changes in equity (including the Other
Comprehensive Income) and the Cash Flow Statement
dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid Standalone financial
statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received
from the directors as on 31st March, 2025 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2025 from
being appointed as a director in terms of Section 164
(2) of the Act.
(f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to
our separate Report in “Annexure B”.
(g) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending
litigations which would impact its financial
position other than disclosed in the standalone
financial statement (Refer Note No. 42 of the
standalone financial statement);
ii. The Company had made provision, as required
under the applicable law or Indian accounting
standard, for material foreseeable losses on long¬
term contracts including derivative contracts
(Refer Note No. 43) of the standalone financial
statement); and
iii. There is no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company.
iv. (a) The management has represented that,
to the best of its knowledge and belief,
other than as disclosed in the notes to the
accounts, no funds have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the company
to or in any other person(s) or entity (ies),
including foreign entities (“Intermediaries”),
with the understanding, whether recorded
in writing or otherwise, that the Intermediary
shall, whether, 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
on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that,
to the best of its knowledge and belief,
other than as disclosed in the notes to the
accounts, no funds have been received
by the company from any person(s)
or entity(ies), including foreign entities
(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise,
that the company shall, whether, 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; and
(c) Based on the audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause iv (a) and iv(b) contain any
material mis-statement.
v. There is no dividend declared or paid during the
year by the company.
vi. Based on our examination which included test
checks, except for the instances mentioned
below, the Company has used accounting
software for maintaining its books of account,
which have a feature of recording audit trail (edit
log) facility and the same has been operated
throughout the year for all relevant transactions
recorded in the respective software:
- Based on the examination, the feature of the
recording audit trail (Audit Log) Facility was not
enabled at the transaction level and database
layer to log any direct data changes for all the
software other than accounting software used
for maintaining the financial information.
Further, for the periods where audit trail (edit log)
facility was enabled and operated throughout the
year for the respective accounting software, we
did not come across any instance of the audit trail
feature being tampered with and the audit trail
has been preserved by the Company as per the
statutory requirements for record retention.
For Dewan P N Chopra & Co
Chartered Accountants
Firm Regn. No. 000472N
Sandeep Dahiya
Partner
Membership No. 505371
UDIN: 25505371BMHZFF7097
Date: 30th May, 2025
Place: Noida
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