3.12 Provisions and Contingencies
The Company recognizes provisions when a present
obligation (legal or constructive) as a result of a past event
exists and it is probable that an outflow of resources
embodying economic benefits will be required to settle
such obligation and the amount of such obligation can be
reliably estimated.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. If the
effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation
or a present obligation in respect of which the likelihood of
the outflow of resources embodying economic benefits is
remote, no provision or disclosure is made.
Contingent liabilities acquired in a business combination
are initially measured at fair value at the acquisition date. At
the end of the subsequent period, such contingent liabilities
are measured at the higher of the amounts that would
be recognised in accordance with Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets and the amount
initially recognised less cumulative amortisation recognised
in accordance with Ind AS 18 Revenue, if any.
3.13 Financial instruments
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the instruments. Financial assets and financial liabilities
are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs are directly attributable to
the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in
profit or loss.
A] Financial assets
a) Initial recognition and measurement:
Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument. On initial recognition,
a financial asset is recognised at fair value, in the
case of financial assets which are recognised
at fair value through profit and loss (FVTPL), its
transaction costs are recognised in the Statement
of Profit and Loss. In other cases, the transaction
costs are attributed to the acquisition value of the
financial asset.
b) Effective interest method:
The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount on
initial recognition.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in profit or loss and is included in the
“Other income” line item.
c) Subsequent measurement:
For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:
i. The Company’s business model for
managing the financial asset and
ii. The contractual cash flow characteristics of
the financial asset.
Based on the above criteria, the Company
classifies its financial assets into the
following categories:
i. Financial assets measured at amortized
cost:
A financial asset is measured at the
amortized cost if both the following
conditions are met:
a) The Company’s business model
objective for managing the financial
asset is to hold financial assets in order
to collect contractual cash flows, and
b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.
This category applies to cash and bank
balances, trade receivables, loans other
financial assets and certain investments
of the Company. Such financial assets are
subsequently measured at amortized cost
using the effective interest method.
The amortized cost of a financial asset is
also adjusted for loss allowance, if any.
ii. Financial assets measured at FVTOCI:
A financial asset is measured at FVTOCI if
both of the following conditions are met:
a) The Company’s business model
objective for managing the financial
asset is achieved both by collecting
contractual cash flows and selling the
financial assets, and
b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.
Investments in equity instruments classified
under financial assets are initially measured
at fair value. The Company may, on initial
recognition, irrevocably elect to measure
the same either at FVTOCI or FVTPL.
The Company makes such election on
an instrument-by-instrument basis. Fair
value changes on an equity instrument
are recognised as other income in the
Statement of Profit and Loss unless the
Company has elected to measure such
instrument at FVTOCI.
This category does not apply to any of
the financial assets of the Company other
than the derivative instrument for the cash
flow hedges.
Hi. Financial assets measured at FVTPL:
A financial asset is measured at FVTPL
unless it is measured at amortized cost or
FVTOCI as explained above.
This is a residual category applied to all
other investments of the Company. Such
financial assets are subsequently measured
at fair value at each reporting date. Fair value
changes are recognized in the Statement
of Profit and Loss. Dividend income on
the investments in equity instruments
is recognised as ‘other income’ in the
Statement of Profit and Loss.
d) Foreign exchange gains and losses
The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the spot rate at the
end of each reporting period.
For foreign currency-denominated financial
assets measured at amortised cost and FVTPL,
the exchange differences are recognised in profit
or loss except for those which are designated as
hedging instruments in a hedging relationship.
e) Derecognition:
A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is derecognized (i.e. removed
from the Company’s Balance Sheet) when any of
the following occurs:
i. The contractual rights to cash flows from
the financial asset expires;
ii. The Company transfers its contractual
rights to receive cash flows of the financial
asset and has substantially transferred all
the risks and rewards of ownership of the
financial asset;
iii. The Company retains the contractual
rights to receive cash flows but assumes
a contractual obligation to pay the cash
flows without material delay to one or
more recipients under a ‘pass-through’
arrangement (thereby substantially
transferring all the risks and rewards of
ownership of the financial asset);
iv. The Company neither transfers nor
retains substantially all risk and rewards of
ownership and does not retain control over
the financial asset.
In cases where the Company has neither
transferred nor retained substantially all of
the risks and rewards of the financial asset,
but retains control of the financial asset, the
Company continues to recognize such financial
asset to the extent of its continuing involvement
in the financial asset. In that case, the Company
also recognizes an associated liability.
The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.
On derecognition of a financial asset, the
difference between the asset’s carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that
had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.
f) Impairment of financial assets:
The Company applies the expected credit losses
(ECL) model for measurement and recognition of
loss allowance on the following:
i. Trade receivables
ii. Financial assets measured at amortized
cost (other than trade receivables)
iii. Financial assets measured at fair value through
other comprehensive income (FVTOCI)
In the case of trade receivables, the Company
follows a simplified approach wherein an amount
equal to lifetime ECL is measured and recognized
as a loss allowance.
In the case of other assets (listed as ii and iii
above), the Company determines if there has
been a significant increase in the 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 a loss allowance. However, if
credit risk has increased significantly, an amount
equal to lifetime ECL is measured and recognized
as loss allowance.
Subsequently, if the credit quality of the financial
asset improves such that there is no longer a
significant increase in credit risk since initial
recognition, the Company reverts to recognizing
impairment loss allowance based on a
12-month ECL.
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
entity expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.
12-month ECL is a portion of the lifetime ECL
which results 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 is 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.
As a practical expedient, the Company uses a
provision matrix to measure lifetime ECL on its
portfolio of trade receivables. The provision matrix
is prepared based on historically observed default
rates over the expected life of trade receivables
and is adjusted for forward-looking estimates.
At each reporting date, the historically observed
default rates and changes in the forward-looking
estimates are updated.
ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
expense/income in the Statement of Profit and Loss
under the head ‘Other expenses’/’other income’.
B] Financial liabilities and equity instruments
Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.
i. Equity instruments:-
An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of
direct issue costs.
Repurchase of the Company’s own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of
the Company’s own equity instruments.
ii. Financial Liabilities:-
a) Initial recognition and measurement:
Financial liabilities are recognised when
the Company becomes a party to the
contractual provisions of the instrument.
Financial liabilities are initially measured
at fair value.
b) Subsequent measurement:
Financial liabilities are subsequently
measured at amortised cost using the
effective interest rate method. Financial
liabilities carried at fair value through profit
or loss is measured at fair value with all
changes in fair value recognised in the
Statement of Profit and Loss.
The Company has not designated any
financial liability at FVTPL other than the
derivative instrument.
c) Foreign exchange gains and losses:
For financial liabilities that are denominated
in a foreign currency and are measured at
amortised cost at the end of each reporting
period, the foreign exchange gains and
losses are determined based on the
amortised cost of the instruments and are
recognised in profit or loss.
The fair value of financial liabilities
denominated in a foreign currency is
determined in that foreign currency and
translated at the closing rate at the end of
the reporting period. For financial liabilities
that are measured as at FVTPL, the foreign
exchange component forms part of the fair
value gains or losses and is recognised in
profit or loss.
d) Derecognition of financial liabilities:
A financial liability is derecognized when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the derecognition
of the original liability and the recognition
of a new liability. The difference between
the carrying amount of the financial liability
derecognized and the consideration paid is
recognized in the Statement of Profit and Loss.
3.14 Derivative financial instruments and hedge
accounting
The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risks, including foreign exchange
forward contracts, interest rate swaps and cross currency
swaps. Further details of derivative financial instruments are
disclosed in Note 40.
Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently
re-measured to their fair value at the end of each reporting
period. The resulting gain or loss is recognised in profit or
loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing
of the recognition in profit or loss depends on the nature of
the hedging relationship and the nature of the hedged item.
The Company designates certain hedging instruments,
which include derivatives, as either fair value hedges, or
cash flow hedges.
At the inception of the hedge relationship, the Company
documents the relationship between the hedging instrument
and the hedged item, along with its risk management
objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and
on an ongoing basis, the Company documents whether the
hedging instrument is highly effective in offsetting changes
in fair values or cash flows of the hedged item attributable to
the hedged risk.
The hedge relationship so designated as fair value is
accounted for in accordance with the accounting principles
prescribed for hedge accounting under Ind AS 109,
‘Financial Instruments’.
a) Fair value hedge:
The hedging instrument is initially recognized at fair
value on the date on which a derivative contract is
entered into and is subsequently measured at fair
value at each reporting date. Gain or loss arising from
changes in the fair value of the hedging instrument
is recognized in the Statement of Profit and Loss. A
hedging instrument is recognized as a financial asset
in the Balance Sheet if its fair value as at reporting date
is positive as compared to carrying value and as a
financial liability if its fair value as at reporting date is
negative as compared to carrying value.
Hedged item is initially recognized at fair value on
the date of entering into contractual obligation and is
subsequently measured at amortized cost. The gain
or loss on the hedged item is adjusted to the carrying
value of the hedged item and the corresponding effect
is recognized in the Statement of Profit and Loss.
Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting.
Note 40 sets out details of the fair values of the
derivative instruments used for hedging purposes.
b) Cash flow hedges
The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
flow hedges is recognised in other comprehensive
income and accumulated under the heading of cash
flow hedging reserve. The gain or loss relating to
the ineffective portion is recognised immediately in
profit or loss.
Amounts previously recognised in other
comprehensive income and accumulated in equity
relating to (effective portion as described above) are
reclassified to profit or loss in the periods when the
hedged item affects profit or loss, in the same line
as the recognised hedged item. However, when the
hedged forecast transaction results in the recognition
of a non-financial asset or a non-financial liability, such
gains and losses are transferred from equity (but not
as a reclassification adjustment) and included in the
initial measurement of the cost of the non-financial
asset or non-financial liability.
Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting.
Any gain or loss recognised in other comprehensive
income and accumulated in equity at that time
remains in equity and is recognised when the forecast
transaction is ultimately recognised in profit or loss.
When a forecast transaction is no longer expected
to occur, the gain or loss accumulated in equity is
recognised immediately in profit or loss.
3.15 Earnings Per Share
Basic earnings per share is computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity
shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the
net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive
potential equity shares.
3.16 Recent Pronouncement
17. Recent accounting pronouncements:
Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. During the year ended March 31, 2025, MCA has notified
Ind AS 117 - Insurance Contracts and amendments to Ind As
116 - Leases, relating to sale and lease back transactions,
applicable from April 1, 2024. The Company has assessed
that there is no significant impact on its financial statements.
On May 7, 2025, MCA notifies the amendments to Ind AS
21 - Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing
currency exchangeability and estimating exchange
rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning on
or after April 1, 2025. The Company has assessed that there
is no significant impact on its financial statements.
4 Critical accounting judgements and use of
estimates
In application of Company’s accounting policies, which
are described in Note 3, the directors of the Company are
required to make judgements, estimations and assumptions
about the carrying value of assets and liabilities that are not
readily apparent from other sources. The estimates and
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period or in the period of
revision or future periods if the revision affects both current
and future periods.
4.1 Following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
a) Useful lives of Property, Plant & Equipment (PPE)
and intangible assets (other than goodwill):
The Company has adopted useful lives of PPE and
intangible assets (other than goodwill) as described in
Note 3.8 above. The Company reviews the estimated
useful lives of PPE at the end of each reporting period.
b) Fair value measurements and valuation processes
The Company measures financial instruments at
fair value in accordance with the accounting policies
mentioned above.
For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting
period and discloses the same.
When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques,
including the discounted cash flow model, which
involves various judgements and assumptions. Where
necessary, the Company engages third-party qualified
valuers to perform the valuation.
Information about the valuation techniques and inputs
used in determining the fair values of various assets
and liabilities are disclosed in Note 40.
c) Other assumptions and estimation uncertainties,
included in respective notes are as under:
• Recognition of deferred tax assets is based
on estimates of taxable profits in future years.
The Company prepares detailed cash flow and
profitability projections, which are reviewed by
the board of directors of the Company. Estimation
of current tax expense and payable, recognition
of deferred tax assets and the possibility of
utilizing available tax credits - see Note 10
and Note 41
• Measurement of defined benefit obligations and
other long-term employee benefits: - see Note 37
• Assessment of the status of various legal cases/
claims and other disputes where the Company
does not expect any material outflow of resources
and hence these are reflected as contingent
liabilities Recognition and measurement of
provisions and contingencies: key assumptions
about the likelihood and magnitude of an outflow
of resources - see Note 23 and Note 42
• Impairment of financial assets - see Note 40
• The Company follows the standard costing/
pre-defined Bill of Materials (BOM) method for
the consumption of inventory related to WTG
manufacturing, project development, erection &
commissioning work and Common infrastructure
facilities. Standard costs are determined based
on technical assessments, historical cost trends,
and management estimates. Management
reviews the standard rates at regular intervals
and revises them, where necessary, to reflect
the most current and realistic cost estimates.
The determination of standard cost involves
the use of significant management judgment
and estimates, particularly in relation to material
consumption patterns, wastage norms, and
market price fluctuations.
37 : 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 279.11 Lakhs (previous year: H 208.19 Lakhs) is recognized as an expense and included in
“Contribution to provident and other funds” in Statement of Profit and Loss.
Contribution to employee state insurance scheme of H 5.42 Lakhs (previous year: H 1.43 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 most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31st March 2025 and 31st
March 2024 by Charan Gupta Consultants Private Limited, 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.
c) Investment risk-since the scheme is unfunded the Company is not exposed to investment risk.
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 occuring at
the end of the reporting period, while holding all other assumptions constant.
b) The Company has issued Corporate guarantee 31st March 2025 H 18,945.72 lakhs (31st March 2024 NIL) given to Bank against loan
taken by Inox Clean Energy Limited (formerly Inox Clean Energy Private Limited and Nani Virani Wind Energy Private Limited).
c) GFCL has issued guarantee and provide security is respect of borrowing by the Company. The outstanding balances of such
borrowings as at 31st March 2025 NIL and 31st March 2024 H 94,016.43 lakhs.
d) The Company has given guarantee H 2,097.34lakhs (31st March 2024 H 2,983 lakhs) to Bank/financial institution against facility
taken by Inox Green Energy Services Limited
Notes:
(a) Sales, purchases and service transactions with the related parties are exclusive of taxes and made at arm's length price.
(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.
(c) Expense has been recognised for the year ended 31st March 2025 of 1346.00 Lakhs (31st March 2024 H 5092.27 lakhs) for
doubtful inter-corporate deposit in respect of amounts owed by related parties.
(d) There have been no gurantees received or provided for any related party receivables or payables.
(e) Compensation of Key management personnel:
in I nU'hQ^
The remuneration of directors and Key Management Personnel (KMP) is determined by the Nomination and Remuneration
Committee having regard to the performance of individuals and market trends. Contribution to provident fund (defined contribution
plan) is H 16.06 lakhs (previous year H 16.06 lakhs) included in the amount of remuneration reported above.
39 : 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.
Investment in subsidiaries are classified as equity investments have been accounted at historical cost. Since these are scope out
of Ind As 109 for the purpose of measurement, the same have not been disclosed in the table above.
The carrying amount reflected above represents the Company's maximum exposure to credit risk for such
financial assets.
(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.
The use of financial derivatives is governed by the Company's policies approved by the Board of Directors of the Company, which
provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative
financial instruments and the investment of the excess liquidity. Compliance with policies and exposure limits is reviewed by the
Company on a continuous basis. The Company does not enter into or trade financial instruments including derivative financial
instruments for speculative purpose.
(iii) Market Risk
The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
(iv) (a) Foreign Currency risk management
The Company is subject to the risk that changes in foreign currency values mainly impact the Company's cost of imports of
materials/capital goods, royalty expenses and borrowings etc.
Foreign exchange transactions are covered with in limits placed on the amount of uncovered exposure, if any, at any point in
time. The aim of the Company’s approach to management of currency risk is to leave the Company with minimised residual risk.
(iv) (b) Foreign Currency sensitivity analysis
The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US
Dollar and Euro.
The following table details the Company's sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign
currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and
represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis
includes unhedged external loans, receivables and payables in currency other than the functional currency of the Company.
A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to
additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an
equal but opposite effect.
(v) (a) 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. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the
most cost-effective hedging strategies are applied.
(v) (b) 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 reporting period. 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 31 March 2025 would decrease/increase by H 142.16 Lakhs net of tax (for the year ended 31st March 2024
decrease/increase by H 95.25 Lakhs net of tax). This is mainly attributable to the Company’s exposure to interest rates on its
variable rate borrowings.
(vi) Other price risks
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other
price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have
investment in equity instruments, other than investments in subsidiary which are held for strategic rather than trading purposes.
The Company does not actively trade these investments. The Company's investment in mutual funds are in debt funds. Hence the
Company's exposure to equity price risk is minimal.
(vii) 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, investment in mutual funds, derivative financial instruments,
other balances with banks, loans and other receivables.
(a) 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 supplies wind turbine equipments to customers which
are installed and commissioned generally by a group company and it involves various activities such as civil work, electrical
& mechanical work and commissioning activities. The payment terms with customers are fixed as per industry norms. The
above activities lead to certain amounts becoming due for payment on completion of related activities and commissioning.
The Company considers such amounts as due only on completion of related milestones. However, the group company has
also long term operation and maintenance contract 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 as at 31st March 2025 is
H 2,05,252.01 lakhs (as at 31st March 2024 is H 88,745.14 lakhs) are due from 5 major customers (6 customers as at 31st March
2024) who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.
For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables from PSU-
Non disputed and others and is adjusted for forward-looking estimates. 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 for PSU-non disputed and others.
b) 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 months 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 period is recognized as expense/income in the Statement
of Profit and Loss under the head ‘Other expenses’/'other income'.
c) Other financial assets
Credit risk arising from investment in debt funds, derivative financial instruments and other balances with banks is limited
because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the various
credit rating agencies. There are no collaterals held against such investments.
Liquidity Risk Management
Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the 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 and interest risk tables
The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows.
The tax rate used for the year ended 31st March 2025 and 31st March 2024 in reconciliations above is the corporate tax rate of 25.17%
(previous year 34.94%) payable by corporate entities in India on taxable profits under the Indian tax law.
Provision for tax in the standalone financial statement for the year ended 31st March 2025 and year ended 31st March 2024 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.
42 : Contingent liabilities:
(a) Claims against the Company not acknowledged as debts: claims made by vendors - H 1,510.41 lakhs plus interest thereon if any (as
at 31st March 2024: H 1,441.09 lakhs)
Some of the suppliers have raised claims including interest on account of non payment in terms of the respective contracts. The
Company has contended that the suppliers have not adhered to some of the contract terms. At present the matters are pending
before the jurisdictional authorities or are under negotiations.
(b) In respect of claims made by customers for operational matters- H 11,817.67 lakhs plus interest thereon if any (as at 31st March 2024:
H 4,138.24 lakhs) (to the extent of oustanding balances). In view of the management, the company may be liable only to the extent
of outstanding receivable balance from respective customers and possibility of an outflow of resources for any claims made by
customers over and above of outstanding balances are remote.
Some of the customer have raised claims including interest on account of non compliance of terms of the respective contracts. At
present the matters are pending before the jurisdictional authorities or are under negotiations.
(c) Claim against the Company not acknowledged as debts from customers H Nil (as at 31st March 2024 : H 5,116.25 lakhs)
(d) Claims made by vendors in National Company Law Tribunal (NCLT) for H 460.50 lakhs plus interest thereon if any (as at 31st March
2024 : H 4,518.76 lakhs)
(e) In respect of Litigation with one of the state electricity distribution board as at 31st March 2025 H 435.00 lakhs (as at 31 March
2024 : H 870.00 lakhs)
(f) During the year SECI has been invoked Bank Gurantee of H 5,544.00 Lakhs the matter is under appellate authority (CERC)
and same is pending with regulators and disclosed as a contigent liability.
(g) In respect of VAT matters - H 324.31 lakhs (as at 31st March 2024: H 324.31 lakhs) plus interest thereon if any.
The Company had received orders for the financial years ended 31st March 2017 , in respect of Andhra Pradesh on account of
Entry Tax and CST demand on the issue of non-deposit of Entry Tax and non-submission of Statutory Forms for H 84.25 lakhs
and H 343.56 lakhs and penalty of H84.06 lakhs has been recovered from Input tax Credit (ITC). The Company had obtained
stay from Hon’ble High Court of Tirupati against entry tax and deposited 25% of the demand and filed appeals before the first
appellate authority in the matter of CST Addition of H 343.56 Lakhs and also for stay of demand by depositing H 82.45 Lakhs
and a refund of H 315.89 Lakhs has been appropriated towards demand of H 659.46 Lakhs.
The company had obtained VAT demand from GUJ VAT for H 1,304.88 lakhs on account of VAT Assessments due to mismatch
of ITC and non-submission of Statutory forms for FY 2014-2015 and 2015-2016 and filed appeal before the joint commissioner,
Ahmedabad in this matter and the appeal has been decided in our favour.
The company has received VAT demand orders from Kerala VAT on account of probable suppression and omision on
purchase of goods in kerala state and levied demand on the enhanced assessment in Kerala and has demand VAT of H 417.94
lakhs and the company had preferred appeal before VAT appellate authority, Kochi and appellate authroity has desposed of
the appeal with direction to AO to reassess the case and the case has been completed with Nil demand.
(h) In respect of Service/central Excise tax matter - H 3,959.60 lakhs plus interest thereon if any (as at 31st March 2024:
H 3,959.60 lakhs)
The Company has received orders for the period September 2011 to March 2016, in respect of Service Tax, levying demand of
H 1,401.63 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax. The
Company has received adverse order from CESTAT, Allahabad Bench.
The company has preferred an appeal before Hon’ble Bench of Allahabad High Court and the Hon’ble Bench of Allahabad
High Court has stayed the proceedings subject to submission of the Security before the Assessing officer.
The Company has estimated the amount of demand which may be ultimately sustained at H 32.19 lakhs and provision for the
same is made during the year and carried forward as “Disputed service tax liabilities” in Note 23.
The Company has received order for the period April to March 2017, in respect of Service Tax, levying demand of H 11.19 lakhs
on account of disallowance of exemption of Research & Development cess from payment of service tax in the month of
March, 2021 and has preferred an appeal before Noida Commissioner of Appeals.
The company has received order from central Excise orders from MP and GUJ rejecting the concessional duty claims on steel
purchased in MP and Gujrat, not treating the steel as main input material in relation to the final products and had levied demand
of H 1,128.70 lakhs and H 772.31 lakhs respectively and filed appeal before the CESTAT, Delhi and Ahmedabad respectively.
The Company has received Service tax demand order of H 645.77 Lakh from central GST commissionerate (Noida) dated 29th
March 2023 including the penalty of H 322.83 lakh.
(i) In respect of Income tax matters - H 5,822.87 lakhs (31st March 2024: H 6,878.93 Lakhs) plus interest thereon if any
This includes demand for assessment year 2013-14 of H 641.96 lakhs received by the Company, mainly on account of
disallowance of deduction u/s 80IC of sale of scrap and other interest Income against which the company has obtained
favourable order from CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June
2020 against the issues on which relief has not been granted.
This includes demand for assessment year 2013-14 of H 272.64 lakhs received in the previous year by the Company, mainly
on account of reduction in the amount of tax incentive claimed, against which the company has obtained favourable order
from CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June 2020 against the
issues on which relief has not been granted.
This includes demand for assessment year 2014-15 of H 4,096.78 lakhs (including interest) received by the Company, mainly
on account of Transfer Pricing Adjustment, disallowance of deduction u/s 80IC of from sale of scrap, insurance claim, interest
income and interest disallowance u/s 36(i) (iii) etc. The assessee company has filed appeal before CIT (Appeals) Palampur,
which is pending for disposal. The AO has rectified the demand to nil vide rectification order passed in this regard and the AO
has passed a penalty order of H 798 lakhs vide order dated 29/03/2024 and we have filed writ petition before Hon’ble High
Court, Shimla and Hon’ble High Court has stayed the proceedings.
This includes demand for assessment year 2013-14 of H 373.09 lakhs received in the current year by the Company, mainly
on account of less deduction on payment made to subsidiary company u/s 194C, rather it should have been deducted u/s
194J, in the assessment order passed by the Assessing officer. The Company has preferred an appeal before CIT (Appeals)
Palampur and hopeful to get favourable judgement in view of supported Judgement of Hon’ble Punjab and Haryana High
Court and CBDT instructions.
Income tax demand in respect of assessment year 2018-19 is being quesh by hon’ble high court of Gujarat in favour of
assessee on letter dated 31/01/2023 for the liability amount H 39,777.33 lakhs.
The Company has received Notice u/s 143(3) for Income Tax matters for AY. 2013-14, 2014-15 and 2015-16 amounted 483.24
lakh. The comany has deposited 20% of demand and filled appeal before the CIT appeals. The matter is still pending.
The Company has received Notice u/s 147 for Income Tax matters for AY. 2013-14, 2014-15, 2016-17 and 2018-19 for 1772.61 lakh.
The matter is pending for hearing before CIT Appeals Ahmedabad. Rectification application has been filled by the company.
The Company has received Notice u/s 143(3) in previous year for Income Tax matters for AY. 2015-16 and 2016-17 for
748.85 lakh. The matter is pending for hearing before CIT Appeals Ahmedabad. Rectification application has been filled by
the company. During the year Company has received favorable order from CIT - Appeals in January 2025 for A.Y. 2015-16
amounted to 257.63 Lakhs and filled an application for appeallate effect with the Jurisdictional appeal.The demand dis likely
to be reduced to NIL.
The Company has received Notice u/s 143(3) in previous year for Income Tax matters for AY. 2021-22 for 2430.03 lakh
and the matter is pending for hearing before CIT Appeals Ahmedabad.Writ petition filed with Hon’ble HC, Ahmedabad.
Hon’ble HC, Ahmedabad has quashed the judgement and directed the assessing officer to decide the case afresh within a
period of 12 weeks.
(j) In respect of GST matters - H 5,828.84 lakhs (31st March 2024: H 2,448.73 lakhs) plus interest thereon if any
This includes demand for assessment year 2018-19 of H 947.62 lakhs received by the Company, mainly on account of excess
Claim of ITC in GSTR 3B vs Details filled in GSTR 1 & GSTR 2A. Company has filled its oberservation and a final order for Interest
& penalty has been received by the company on 9th November 2023 of H 1.31 Lakhs.
This includes demand order received by the Company for non payment of Interest on delayed payment of GST amounting
of H 11.57 lakhs and late payment of GST in cash against taxable supplies of H 218.54 lakhs for the period Dec 2017, Feb 2018,
March 2018 which has already been deposited by the company and penalty of H 240.39 lakhs read with section 73 of the
CGST Act. Appeal against the peanalty order has been filled before Commissioner Appeal Jaipur.
An audit has been carried for which observation report has been issued u/s 65(6) leving penalty of H 69.67 lakhs. The Company
has filled appeal with Commissioner GST in Vijayapura.
This Includes Show Cause notice received by the company pertaining to A.Y. 2019-20 of H 1,997.48 Lakhs on account ITC availed
on Invoices pertaining to Previous Period. Company has filled reply to the show cause notice and a final order u/s 73 has been
recevied by the company for H 641.24 Lakhs. The Company has filled further appeal with Commissioner GST in Vijayapura
This Includes Demand order received by the company pertaining to A.Y. 2019-20 of H 38.05 Lakhs on account short payment
of taxes.The Company has filled further appeal with Appellate Authority
This Includes Demand order received by the company on 20th Dec 2024 of H 1,271.18 Lakhs on account short payment of
taxe on supply of goods & services.Reply has been filled by the company on 22 Nov 2024 for which final order is received in
December 2024. The company has filled further appeal agaist the order.
This Includes Demand order received by the company on 30th April 2024 of H 762.48 Lakhs for A.Y. 2019-20. Appeal has been
filled by the company against the said order.
This Includes Demand order received by the company on 29th April 2024 of H 41.86 Lakhs for AY. 2019-20 on account of
Incorrect determination of time and value of supply of goods or services.The company has filled further appeal agaist the
order on 25th July 2024.
This Includes Demand order received by the company on 22th August 2024 of H 315.24 Lakhs for AY. 2020-21 on account of
Incorrect determination of time and value of supply of goods or services and incorrect determination of liability to pay taxes.
The company has filled further appeal agaist the order on 7th December 2024.
The Company during the previous year has received show casue notice for Indirect tax matter u/s 73 for 2,448.73 lakhs dated
31st Jan 2024 for AY 2019-20. Reply has been filed against the Notice and the matter is pending before Commissioner GST
appeals. During the year company has pre-deposit 10% demand by utilizing IGST.
The Company during the year has received demand order for Indirect Tax Matter for excess ITC availed/utilized on B2B
supplies for 784.12 lakhs which has been dropped by order dated 03rd August 2024 with liability of H 33,024 only.
(k) In respect of Labour Cess under Building and Other Construction Workers Act, 1966 - H 61.11 lakhs (as at 31 March
2024: H 61.11 Lakhs)
The Company has received the order for the financial year ended 31st March 2015, 31st March 2016 in respect of Labour Cess
on construction work at Relwa Khurd MP plant.
(l) Corporate Guarantee of H 31,445.72 lakhs (as at 31st March 2024: H 20,199.11 lakhs) given to financial institution and Bank
against loan taken by Subsidiary Companies.
(m) In respect of custom duty of H 1,000.00 lakhs (as at 31st March 2024: H 1,000.00 lakhs) paid to Directorate of Revenue Intelligence.
(n) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations have not been
fulfilled within stipulated period H Nil (as at 31st March 2024: H 757.01 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.
43 : Capital and other Commitments
a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is H 9,390.04
lakhs (as at 31st March 2024: H 3,946.34 lakhs).
b) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations are required to be
fulfilled within stipulated period H Nil (as at 31st March 2024: H 632.90 lakhs).
c) Bank guarantees issued by the Company to its customers/Government bodies for H 1,04,413 lakhs (as at 31st March 2024 :
H 69,719.86 lakhs).
(d) Corporate Guarantee of H Nil (as at 31st March 2024: H 1,799.11 lakhs) given to Customer.
44: Balance confirmation
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.
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.
54: The Company incorporated 6 wholly-owned step down subsidiaries (hereafter referred to as SPVs) through its subsidiary
company (IGESL) , 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 Inter-Corporate deposits and also provided bank guarantees
of H 5,578 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 June 30th, 2024, the SPVs' project completion date had expired and applications for extensions has
been rejected on 02.09.2024 and Bank Guarantee has been invoked and IGESL further filed the appeal before appellate authority
(CERC) and same is pending with regulators. In annual general meeting held on September 29th, 2023 & September 29th, 2023 of
the Company and subsidiary company respectively approves that if the IGESL is unable to recover the funds provided as Inter¬
Corporate deposits and Bank Guarantee from the SPVs, Inox Wind Limited will bear the costs. Further during the year investment
in shareholding of 3 SPV has been sold by the IGESL.
55: During the previous year, pursuant to the resolution passed by the Board of Directors on February 10, 2023 and the approval
granted by shareholders at the Annual General Meeting held on September 29, 2023, the company entered into related party
transactions.
56. In accordance with the above approvals as mentioned in note 55, the company has borne the losses amounting to H 2,591 lakhs
arising from its investment in the subsidiary.
57 : There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.
58: Other statutory informations:
(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 March 31st, 2025 and March 31st, 2024.
(ii) There are no charges or satisfaction which are to be registered with the registrar of companies during the year ended March 31st,
2025 and March 31, 2024 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 31st, 2025 and March 31st, 2024.
(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2025 and
March 31st, 2024.
(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, 2025 and March 31st, 2024.
(vi) During the year ended March 31st, 2025 and March 31st, 2024, 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).
Xi. The Company has not been declared a wilfull defaulter by any bank or financial institution or government or any government
authorities during the year ened March 31st, 2025 and March 31st, 2024
59: The company has a system of maintenance of information and documents as required by Goods and Services Act (“GST Act”) and
"chapter-xvii" of the Income Tax Act, 1961. Due to the pending filling of certain GST/TDS/TCS returns, the necessary reconciliation is
pending to determine whether all transactions have been duly recorded/reported with the statutory authorities. Adjustments, if any,
arising while filing the GST/TDS Return shall be accounted for as and when the return is filed for the current financial year. However,
the management is of the opinion that the aforesaid return filing will not have any material impact on the financial statements.
60: 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.
61. Business Combination
The company via its Board Meeting dated 12th June 2023 approved the scheme of amalgamation of Inox Wind Energy Limited into
Inox Wind Limited and petition is allowed by NCLT, Chandigarh vide order dated May 23rd, 2025 and the Company is in process of
implementation the scheme/order with due statutory compliances. Pursuant to merger of Inox Wind Energy Limited {‘Transferor
Company’) and Inox Wind Limited (‘Company’ or ‘Transferee Company’), as per the Scheme, the merger of Transferor Company into
Company has been accounted to comply with the accounting treatment prescribed in the Scheme in accordance with appendix C of
Ind AS 103 under common control. The share capital of Transferor Company and its investment at face value in the Transferee Company
is cancelled and the Company is required to issue 76,14,06,614 equity shares of INR 10 each fully paid-up to the shareholders of the
Transferor Company. The equity shares of the Company were listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Being a common control business combination, Ind AS 103 Business Combinations requires the Company to account for business
combination from the combination date (i.e., the date on which control has been transferred) or the earliest date presented in the financial
statements, whichever is later.
Subsequent to the period end, SEBI granted the relaxation to the Company on from the applicability of Rule 19 (2)(b) of Securities Contract
(Regulation) Rule 1957 for the listing of the shares on stock exchanges.
The impact of the scheme in these Ind AS financial statements is given below:
(a) All assets, liabilities and reserves of the transferor company have been recorded in the books of account of the Company at their
existing carrying amounts and in the same form
(b) To the extent that there are inter-company loans, advances, deposits, balances or other obligations as between the transferor
Company and the Company, have been eliminated.
62. Employees' stock option plan
The Company has ESOP Schemes namely "Inox Wind - Employee Stock option Scheme 2024". ("Scheme").
The shareholders of the Group approved Inox Wind- Employee Stock Option Scheme 2024” ('Scheme')" at the Extraordinary General
Meeting held on May 05th, 2024 to grant a maximum of not exceeding 1% of the equity share capital of the Company to specified
categories of employees of the Company. Each option granted and vested under Scheme shall entitle the holder to acquire one equity
share of face value of H 10 each of the Company.
The options granted under Scheme shall vest uniformly over the period of four year commencing one year after the date of grant as per
terms and conditions specified in option grant letters.
The Company accordingly granted 37,90,284 options at an exercise price of H 86 per option and 72,750 options at an exercise price of H
172 per option to eligible employees till date.
The Nomination and Remuneration committee ("Committee") of the Group formulated and approved "Inox Wind - Employee Stock Option
Scheme 2024 ("Scheme") at its meeting held on November 11th, 2024 which is also approved by the board of director of the Group at its
meeting held on August 09th, 2024. Under this scheme, the maximum number of options that can be granted to any eligible employee
during one year shall not be equal to or exceed 1% of the issued equity share capital of the Group at the time of grant. The committee
decide to grant such number of options equal to or exceeding 1% of the issued equity share capital to any eligible employee as the case
may be, subject to the separate approval of the shareholders in a general meeting.
The fair value of the share options is estimated at the grant date using the Black- Scholes option pricing model, taking into account the
terms and conditions upon which the share options were granted. However, the above performance condition is only considered in
determining the number of instruments that will ultimately vest.
a) The management has reviewed the carrying amount of inter-corporate deposits given to the subsidiary. After considering the
position of losses of the subsidiary, provision is made for impairment in the value of inter-corporate deposits.
b) During the Previous Year, the Company has bear the losses of Investment in subsidiary amounting to H 2,591.40 Lakh as decided
and approved by the management. (Refer Note 56)
c) During the Previous Year, the Company has recognised ECL amounting to H 10,240 Lakhs due to change in Expected credit loss
policy on certain category of customer and same has been considered as an exceptional expense in the financial statement.
d) During the Previous Year, the Company has recognised expenses amounting to H 3,600 Lakhs as an exceptional item on account
of settlement of dispute/litigation matters.
64. The Company had certain disagreements with one of its customer, its associates/affiliates for certain pending projects due to
various matters and due to covid -19 pandemic etc. After various discussions with the customer, the company has taken back
certain un-commissioned Wind Turbine Generators (WTGs) and entered into settlement dated 6th May 2024 to settle all outstanding
recoverable balances and other related matters.
65: During the Previous year, the company has recognised revenue from the sale of a 3 MW Power Booster Model 3.3 MW, amounting
to H 39,030 Lakh. This recognition is based on a provisional type certificate issued by the Ministry of New and Renewable Energy
(MNRE), Government of India, which is valid until May 20th, 2024.
66. As per RBI Guidelines, remittance against import should be completed not later than six months. As at March 31st, 2025 certain party
balances of imports are outstanding for more than six months. Considering that the balances are for more than six months, the
Company is in process of payments/statutory approval, as applicable for such payments.
67. The Previous year figures have been regrouped, wherever necessary to confirm the respective year presentation. The figures have
been rounded off to the nearest rupee and any discrepancies in any note between the total and sums of the amounts are due to
rounding off.
As per our report of even date attached
For Dewan P N Chopra & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No 000472N Devansh Jain Manoj Dixit
Whole-time Director Whole-time Director
DIN: 01819331 DIN: 06709232
Sandeep Dahiya Kailash Lal Tarachandani Shivam Tandon
Partner Chief Executive Officer Chief Financial Officer
Membership No 505371
Deepak Banga
Company Secretary
Membership No.: ACS12716
Place : Noida Place : Noida
Date : 30th May 2025 Date : 30th May 2025
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