Correction

ACME Solar's clarification in response to the report, 'Fund crunch shadow over firm with biggest solar projects' published on November 21

In response to the report, "Fund crunch shadow over firm with biggest solar projects" published on November 21, ACME Solar has clarified it is not facing any funds crunch as mentioned in the report, as it has Rs 5.45 billion of cash as on March 3, 2018. Also, ACME Solar’s parent company, ACME Cleantech (ACSPL) is not making loss and has been profitable for the last six years with a PAT of around Rs 5 billion in the last three years.
 
ACME Solar says it has no “loan repayment looming” as it has taken a sanction of a flexible working capital line of around $100 million for four-year duration in FY 18. As with all working capital lines, this is securitised against due cash flows which will accrue through business and will be settled through operating cash flows during duration of line.

 
The company’s operational solar plants generate Rs 6 billion surplus cash a year for its funding requirement and its debt/EBITDA of operational plants is around 5x, which is on the lower percentile among all renewable entities in India thus giving significant room for securitisation through refinancing in dollar bond market or domestic market. More than 50 per cent of the company’s loan book carries a fixed interest rate for more than three years.
 
Besides, the Rs 20 billion long-term debt mentioned in the report refers to CCD (compulsorily convertible debentures) from ACSPL, of which Rs 13.6 billion was converted to equity during FY 18 and the balance will be converted into equity this year. There is no external debt on the balance sheet of ACME Solar as of March 2017. The installed capacity is 2.1GWp for solar (as on date), and not 650 Mwp as mentioned. The company has also clarified that it has not fired staff due to cash flow issues. We regret the errors in the report.