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Inox Wind Energy Ltd.

BSE: 543297 Sector: Infrastructure
NSE: IWEL ISIN Code: INE0FLR01028
BSE 00:00 | 06 Oct 1056.95 50.25
(4.99%)
OPEN

1029.90

HIGH

1057.00

LOW

1006.00

NSE 00:00 | 06 Oct 1053.30 50.10
(4.99%)
OPEN

1048.00

HIGH

1053.35

LOW

1025.00

OPEN 1029.90
PREVIOUS CLOSE 1006.70
VOLUME 24767
52-Week high 1057.00
52-Week low 442.95
P/E 11.71
Mkt Cap.(Rs cr) 1,162
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1029.90
CLOSE 1006.70
VOLUME 24767
52-Week high 1057.00
52-Week low 442.95
P/E 11.71
Mkt Cap.(Rs cr) 1,162
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Inox Wind Energy Ltd. (IWEL) - Auditors Report

Company auditors report

To

the Members of

Inox Wind Energy Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Inox Wind Energy Limited("the Company") which comprise the balance sheet as at 31 March 2021 and thestatement of Profit and Loss statement of changes in equity and statement of cash flowsfor the period from 06 March 2020 to 31 March 2021 and notes to the financial statementsincluding 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2021 and its loss changes in equity and its cash flows for the period ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of theStandalone Financial Statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on theStandalone Financial Statements.

Emphasis of Matter

We draw attention to Note No. 48 of the standalone financial statement which describesthe management's assessment of the impact of the outbreak of Covid-19 on property plant& equipment revenue trade receivables advances investments and other assets. Themanagement believes that no adjustments are required in the financial statements as thereis no impact in the current financial year. However in view of highly uncertain economicenvironment and its likely effect on future revenues due to Covid-19 a definitiveassessment of the impact on the subsequent years is dependent upon circumstances as theyevolve.

Our report is not modified in respect of above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance 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 FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

The Key audit Matters How our audit addressed the key audit matter
Alternate Audit Procedure carried out in light Covid-19 outbreaks
Due to the outbreak of COVID-19 pandemic the consequent lockdown/curfew and travel restrictions imposed by the Government/local administration during the audit period the audit processes could not be carried out physically at the Company's premises. As a part of alternative audit procedure the Company has made available the following information/ records/ documents/ explanations to us through e-mail and remote secure network of the Company: -
The statutory audit was conducted via making arrangements to provide requisite documents/ information through electronic medium as an alternative audit procedure. • 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
We have identified such alternative audit procedure as a key audit matter. • By way of enquiries through video conferencing dialogues and discussions over 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 nothing has come to our knowledge that make us believe that such alternate audit procedure would not be adequate.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information (hereinafter referred as "theReports") but does not include the Standalone Financial Statements and our auditor'sreport thereon. The Reports is expected to be made available to us after the date of thisauditor's report.

Our opinion on the Standalone Financial Statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibility of Management for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the  StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

The Company was incorporated on 06 March 2020 and the appointed date of demerger ofrenewal business as approved by NCLT is 01 July 2020. The demerger stated in the Part B ofthe Scheme is accounted in accordance with Appendix C of Ind AS 103: Business Combinationbeing common control business combination. Accordingly effect of demerger is required tobe taken place since incorporation of the company i.e. 06 March 2020. However thecompany has taken effect of demerger with effect from 01 April 2020 because of betterpresentation and practical expedient.

Our report is not modified in respect of above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified 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 inaccordance 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 explanationsgiven to us the company has not paid any managerial remuneration during the period.

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 bestof 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 theCompany 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 equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition other than disclosed in the Standalone Financial Statements (Refer Note No. 39 ofthe Standalone Financial Statements) ;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Annexure – A to the Independent Auditors' Report

(Referred to in paragraph - 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date.)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given by the management and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that::-

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipments.

(b) The management has physically verified the property plant and equipments atreasonable intervals and no material discrepancies were noticed on such verification.

(c) Following immovable properties are transferred and vested with the company ondemerger as per the scheme of arrangement as described in Note No. 38 and are in theprocess of being registered in the name of the company:

(Rs In Lakhs)

Particulars No of case Original Cost Carrying Amount
Freehold Land 6 90.75 90.75

(ii) The Company does not have any Inventories and hence the provisions of paragraph3(ii) of the Order are not applicable to the Company.

(iii) The Company has granted unsecured loan to companies covered in the registermaintained under section 189 of the Companies Act 2013.

a) In our opinion the rate of interest and other terms and conditions of such loansare not prima facie prejudicial to the company's interest.

b) Based on information provided by the management the loans are repayable on demandand there is no stipulation of schedule of repayment of principal and repayment ofinterest accordingly we unable to make specific comment on the regularity of repayment ofprincipal and interest.

c) Based on information provided by the management the loans are repayable on demandand hence this paragraph is not applicable

(iv) In our opinion in respect of loans investments guarantees and securityprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.

(v) The company has not accepted any deposits hence the paragraph 3(v) of the order isnot applicable.

(vi) To the best of our knowledge the company is not required to maintain cost recordsunder Companies (Cost Records and Audit) Rules 2014 as amended and prescribed by theCentral Government under sub section (1) of section 148 of the Companies Act 2013.Therefore paragraph 3(vi) of the order is not applicable.

(vii) (a) On the basis of our examination of the records of the company amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms GST duty of excise value added tax cess and any other statutory dues havegenerally been regularly deposited during the period by the company with the appropriateauthorities though there has been a slight delay in a few cases to the extent applicableto it.

In our opinion no undisputed amounts payable in respect of provident fund income taxsales tax value added tax duty of customs GST service tax cess and other materialstatutory dues were in arrears as at 31 March 2021 for a period of more than six monthsfrom the date they became payable.

(b) On the basis of our examination of the books of accounts and records the detailsof dues of income tax or goods and services tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax or cess which have not been deposited onaccount of any dispute are as under:

Name of the Statute Nature of dues Amount (Rs In Lakhs) Period to which the amount relates Forum where dispute is pending
5.09 AY 2013-14
Income Tax Act1961 Income Tax 243.83 AY 2014-15 Commissioner of Income Tax (Appeal)
137.92 AY 2015-16

(viii) The Company does not have any loans or borrowings from a financial institutionbank government and no dues are payable to the debenture holders hence the paragraph 3(viii) of the order is not applicable.

(ix) In our opinion the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) or term loans hence the paragraph3(ix) of the order is not applicable.

(x) In our opinion no material fraud by the company or on the Company by its officersor employees has been noticed or reported during the course of our audit.

(xi) The company has not paid/provided for managerial remuneration during the periodand hence paragraph 3(xi) of the Order is not applicable.

(xii) In our opinion the Company is not a nidhi company. Hence paragraph 3(xii) ofthe Order is not applicable.

(xiii) Based on our examination of the records of the Company and in our opiniontransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable Indian Accounting Standards.

(xiv) Based on our examination of the records of the Company the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the period.

(xv) Based on our examination of the records of the Company the Company has notentered into non-cash transactions with directors or persons connected with him.

(xvi) Based on our examination of the records of the Company the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

Annexure – B to the Independent Auditor's Report of even date on theFinancial Statements of Inox Wind Energy Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Inox WindEnergy Limited ("the Company") as of 31 March 2021 in conjunction with our auditof the financial statements of the Company for the period ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Dewan P. N. Chopra & Co.
Chartered Accountants
Firm Regn. No. 000472N
Sandeep Dahiya
Partner
Place: New Delhi Membership No. 505371
Date: 25 June 2021 UDIN: 21505371AAAAOI6891

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