Indian Renewable Energy Development Agency Ltd Auditor Reports

To the Members of

Indian Renewable Energy Development Agency Limited Report on the Audit of the Financial Statements Opinion

We have audited the accompanying Financial Statements of Indian Renewable Energy Development Agency Limited ("the Company"),which comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss (including Other Comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes to the Financial Statements, including a summary of material accounting policies and Other Explanatory information prepared in accordance with the requirement of the Companies Act 2013 (as amended) ("the Act") (hereinafter referred to as "Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and profit including comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on

Auditing specified under section 143(10) of the Act ("SAs"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.

Emphasis of Matter

1. As described in Note 38 (39) to the Financial Statements, the company has classified certain Loans given aggregating to Rs. 87,366.57 Lacs required to be classified as stage III /Non-Performing Assets (NPA) as stage II / Standard in terms of interim order of Honble High Court of Andhra Pradesh. The statutory disclosures have been made accordingly. However, as a matter of prudence, interest income on such accounts becoming NPA in terms of prudential norms of RBI has been recognized on collection basis and allowance for impairment loss has been made in accounts accordingly.

Our opinion is not modified in respect of above matters.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have considered the matters described below to be the Key Audit Matters for incorporation in our Report.

Sr. No.	Key Audit Matters	Auditors Response
1.	Impairment of Loan Assets - Expected Credit loss	Our Audit procedures based on which we arrived at
	Refer Note no. 38 (20 (A) (a) (ii)) to the Financial Statements read with accounting policy No.3(xx)- Financial Instruments)	conclusion regarding reasonableness of the disclosures and accounting for Impairment of Loan Assets - Expected Credit loss includes the following:
	Financing is principal business of the Company and disclosure of Loan assets at fair value considering the provision for loss due to impairment is most significant.	We have obtained an understanding of the guidelines as specified in Ind AS 109 "Financial Instruments", various regulatory updates, guidance of ICAI and internal instructions and procedures of the Company in respect of the ECL and adopted the following audit procedures:
	The Company follows a Board approved methodology wherein assessment for allowance is carried out by an external agency for impairment based on certain criterion / framework classifying the assets into various stages depending upon credit risk and level of evidence of impairment. The measurement of an expected credit loss allowance (ECL) for financial assets measured at amortized cost requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g., likelihood of customers defaulting and resulting losses).	Evaluation and testing of the key internal control mechanisms with respect to the loan assets monitoring, assessment of the loan impairment including testing of relevant data quality, and review of the real data entered.
	The Company makes significant judgments while assessing ECL and the assumptions underlying the ECL are monitored and reviewed on an on-going basis.	Recoveries in the loan assets are verified to ascertain level of stress thereon and impact on impairment allowance in financial statements.
	The proper application of such assumptions is material for statement of the Loan Assets. In view of the materiality of the amount of loan assets in the Financial Statements, the loss due to impairment of loan assets has been considered as Key Audit Matter in our audit.	Verification / review of the documentation, operations / performance, valuation of available securities and monitoring of the loan assets, especially large and stressed loan assets, to ascertain any overdue, unsatisfactory conduct or weakness in any loan asset account.
		The company avails services of third party for evaluation of ECL Components and such party was changed during the year . The calculations in the study for impairment allowance carried out by third party are relied upon by us and test checks are carried out for the same. The data shared with the third party is verified by us for correctness of material components being submitted. Our audit procedure in the same are limited in view of not sharing certain parameters and software used for study of such data being considered confidential by such third party.
		We also compared ECL with the provisioning as required by the applicable directions of the Reserve Bank of India and ensured adequacy of impairment allowance accordingly.

 

Sr. No.	Key Audit Matters	Auditors Response
2.	Fair valuation of Derivative Financial Instruments	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for derivatives include the following:
	(Refer Note No. 38 (28) to the Financial Statement read with accounting policy No. 3(xx).	Discussing and understanding managements perception and studying policy of the company for risk management. Verification of fair value of derivative in terms of Ind AS 109, testing the accuracy and completeness of derivative transactions.
	To mitigate the Companys exposure to foreign currency risk and interest rate, non-Rupee cash flows are monitored and derivative contracts are entered for hedging purpose. The derivatives are measured at fair value as per Ind AS 109.	Evaluation of managements key internal controls over classification, valuation, and valuation models of derivative instruments.
	To qualify for hedge accounting, the hedging relationship must meet certain specified requirements as per Ind AS. Hedge accounting results in significant impact on financial statements together with complexity of its accounting/assumptions and numerous parameters therein for establishing hedge relationship. Gain/Loss on these derivatives is recognised in other comprehensive income or profit and loss as provided by Ind AS. The magnitude of such transactions is significant as per the operations of the company.	Obtained details of various financial derivatives contracts as outstanding/pending for settlement as on 31st March, 2024.
	In view of facts of the matter we have identified it as a key audit matter.	Verification of underlying assumptions in estimating the fair valuation arrived at for those financial derivative contracts.
		Appropriateness of the valuation methodologies applied and testing the same on sample basis for the derivative instruments.
		Additionally, we verified the accounting of gain/loss on derivatives in the other comprehensive income or Profit & Loss Account.
		Reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 109.

 

3.	Liability for Taxation including Income Tax	Our Audit procedures based on which we arrived at conclusion regarding reasonableness of the disclosures and accounting for Liability for Income Tax include the following:
	Refer note 38 (17 a) The company has material uncertain tax demands in respect of matters under dispute which involves significant judgement to determine the possible outcome of these disputes.	Our audit procedure includes review of various orders passed by Honble High Court and CIT ( Appeals) / Assessing Officer on the subject matter in dispute with Department of Income Tax. We undertook procedure to evaluate management position on these uncertain tax positions.
	During the year, Honble High Court of Delhi decided the Writ Petitions relating to income tax cases for Financial Year (FY) 1997-1998 to FY 2008-2009 and for FY 2009-10 to 2017-18 ( except FY 2013-14) appeals orders were passed by the CIT(Appeals). Orders were received for other Financial years also. Appropriate provision and disclosure of consequential liabilities is material to the presentation of financial statements.	For other tax matters, the facts and the legal pronouncements were analyzed and reviewed.
	Service Tax and Goods & Service Tax (GST) Authorities have also raised certain issues and raised demands for several past periods, which are being contested. Possible outcome of these demands is substantial. In view of this we have identified it as a key audit matter.	We reviewed the appropriateness and adequacy of disclosures by the management as required in terms of Ind AS 37 "Provisions, Contingent Liabilities and Contingent Assets " as well as Ind AS 12 "Income Taxes"

Information Other than the Ind AS Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Boards Report including Annexures to Directors Report, Management Discussion and Analysis Report, but does not include the financial statements and our auditors report thereon. The other information as stated above is expected to be made available to us after the date of this auditors report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available, and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. When we read the other information as stated above and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe necessary actions required as per applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the state of affairs (financial position), Profit or Loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for

preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors of the company is responsible for assessing the companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standard on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the

financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,

and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls;

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

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, make it probable that economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Reports on other legal and regulatory requirements

1. As required by the Companies (Auditors Report) Order, 2020 (the Order), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure-A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to extent applicable and in terms of subsection (5) of section 143 of the Act, we give in the "Annexure-B" information in respect of the directions issued by Comptroller and Auditor-General of India in respect of the company .

2. As required by section 143(3) of the act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

c) The balance sheet, the Statement of Profit & Loss including Other Comprehensive Income, Statement of Changes in Equity and the statement of Cash Flows dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) In terms of Notification no. G.S.R. 463 (E) dated 5^th June 2015 issued by the Ministry of Corporate Affairs, provisions of Section 164(2) of the Act regarding disqualifications of the Directors, are not applicable as it is a government Company;

f) As per notification number G.S.R. 463 (E) dated 5^th June, 2015 issued by Ministry of Corporate Affairs, section 197 of the Act as regards the managerial remuneration is not applicable to the Company, since it is a Government Company.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure-C".

h) With respect to the other matters to be included in the Auditors report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 ( Audit Rules) , in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 38 (17) to Financial Statements.

ii. The Company has made due provision as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts: - Refer note 38(20)(C)(II)(c) to the financial statements.

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

iv. (a) The management has represented (Refer note

38(26)) that to the best of its knowledge and belief , no funds have been advanced or loaned or invested ( either from borrowed funds or share premium or any other sources or kind of funds ) by the company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented (( Refer note 38(26)) that to the best of its knowledge and belief , no funds have been received by the company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedure performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (a) and (b) contain any material mis-statement.

v. No dividend has been declared or paid during the year by the company.

vi. Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account for the financial year

st

ended 31 March 2024, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with and the management has represented that the audit trail feature cannot be disabled. As proviso to Rule 3(1) of the Companies ( Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules,2014 on preservation of Audit trail as per the statutory requirements for records retention is not applicable

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for the Financial Year ended 31 March 2024.

For DSP & ASSOCIATES

Chartered Accountants

Firms Registration Number: 006791N

Sd/-

(Atul Jain )

Partner

Membership No. 091431

Date: 19^th April 2024

Place: New Delhi

UDIN: 24091431BKFKGN1586

Annexure-A to the Independent Auditors Report of Even Date

Annexure "A" Report under Companies (Auditors Report) Order, 2020 (the Order) referred to in paragraph 1 of "Report on Other Legal and Regulatory Requirements" of Independent Auditors Report to the members of the Company on the Financial Statements for the year ended March 31, 2024

(i) (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment;

(B) The company is maintaining proper records showing full particulars of intangible assets;

(b) As per the information and explanations given to us and on the basis of our examination of the records of the Company, the Property, Plant and Equipment, have been physically verified by the management annually, which in our opinion is reasonable. Having regard to the size of Company and nature of its business the discrepancies noticed on physical verification and consequential adjustments are carried out in books of accounts. According to information and explanations given by the management and in our opinion, the same is not material and properly dealt with in books of accounts;

(c) According to the information and explanations given to us, the records examined by us and based on the Title deeds provided to us, we report that, the title deeds of all the immovable properties, (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company except as stated below: -

Sr. No.	Description of property {Nature}	Gross carrying value (Rs. In Lakhs)	Held in name of	Whether promoter, director or their relative or employee	Period held - indicate range, where appropriate	Reason for not being held in name of company
1	Office premises- India Habitat Centre Complex (IHC) {Right of use Assets}	172.34	Occupied on basis of Allotment letter by IHC	No	Allotment letter dt. 12.04.1993	The execution of Tripartite Conveyance Deed /Agreement by India Habitat Centre (IHC) [between Land & Development Office (L&DO), IHC and allottee institutions] is pending in respect of all allottee institutions at IHC including IREDA. IHC is following with L&DO for execution of lease deed. Draft of lease deed has been cleared by L&DO.
2	Office Premises at August Kranti Bhawan (AKB) {Right of use Assets}	2110.10	Occupied on the basis of perpetual lease deed by HUDCO	No	Allotment letter dt. 04.12.2006	The transfer of property rights is being followed with Housing Urban Development Corporation Limited (HUDCO).
3.	Residential flat at Jangpura Delhi (held as Investment Property)	8.75	Occupied on the basis of Agreement to sell by HPL	No	23.06.1994	The transfer of property is being followed by Hindustan Prefab Limited (HPL) with L&DO. Thereafter, the execution of Deed will take place.
4.	Office premises- NBCC Kidwai Nagar ( Right of Use Property)	13291.71	Lease execution under process	No	Allotment letter dt. 04.09.2015	The final draft lease deed was forwarded by the company to NBCC for execution of Lease deed between the President of India, acting through Dy. L&DO-IV, Land & Development Office, Ministry of Housing & Urban Affairs ( MOHUA) and the company. The matter has been taken up further with NBCC w.r.t date of possession and start date of lease for the aforesaid properties before execution of the same.
5.	Residential Flats -NBCC Kidwai Nagar ( Right of Use Property)	660.85	Lease execution under process	No	Allotment letter dt 14.11.2018	The final draft lease deed was forwarded by the company to NBCC for execution of Lease deed between the President of India, acting through Dy. L&DO - IV, Land & Development Office, MOHUA and the company. The matter has been taken up further with NBCC w.r.t date of possession and start date of lease for the aforesaid properties before execution of the same. The flat has been lying in Inter-pool exchange of houses with MOHUA and the action to take it back in company is under process.

(d) The company has not revalued its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year;

(e) No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) and rules made thereunder.

(ii) (a) The Company does not hold any inventories hence reporting under clause 3(ii)(a) of Order is not applicable to

the Company.

(b) The company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of certain current assets and the quarterly returns or statements filed by the company with such banks are in agreement with the books of account of the Company.

(iii) According to the information and explanations given to us, in respect of its transactions during the year, the Company has not made any investments in but, being a Non-Banking Financial Company (NBFC), provided guarantee and security, granted loans and advances in the nature of loans, secured/ unsecured, to companies, firms, Limited Liability Partnerships and other parties. In this regard, we report as under -

(a) The Company being an NBFC whose principal business is to give loans, this clause for reporting on loans or any advances in the nature of loans, or standing as guarantor, or provision of security, is not applicable. In view of this reporting required under clause 3(iii) (a) (A) & (B) of the Order is not applicable;

(b) In our opinion and based on audit procedures performed by us, the guarantees provided, security given and terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are, prima facie, not prejudicial to the interest of the company;

(c) Based on audit procedures performed by us, in respect of loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated and the repayments are generally regular as per stipulations except in case of credit impaired assets, and certain cases disclosed as Stage 1 and not disclosed as Non-Performing Assets (NPA) in view of orders of the court [Refer Note 38(47) O & 38(39) respectively to Financial Statements];

(d) Based on the audit procedures performed by us and as disclosed in Note 38 (47) (O) of financial statements, the total amount overdue for more than ninety days is Rs. 1,41,085.32 Lakhs. In our opinion, the steps taken by the company being an NBFC, for recovery of the principal and interest are generally in accordance with policies framed by it and are reasonable;

(e) The company being an NBFC whose principal business is to give loans, this clause 3(iii) (e ) for reporting on loans etc. falling due during the year and renewed or extended or fresh loans granted to settle the over dues of existing loans given, is not applicable to the Company;

(f) Based on the audit procedures performed by us, the Company, during the year, has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment. In view of this, the other reporting requirements regarding loans to related parties as per this clause 3(iii)(f) are not applicable;

(iv) According to information and explanations given to us and based on audit procedures performed, the company has complied with the provisions of sections 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and securities provided by the Company as specified under sections 185 and 186 of the Companies Act, 2013. Therefore, further reporting required as per clause 3 (iv) of the Order is not applicable.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the

public, hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules thereunder are not applicable to the company. In view of this, the reporting required regarding contravention of such provisions or any order passed by the authorities / Tribunal as per clause (v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 (1) of the Act in respect of business of the company to which the said rules are made applicable and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us, during the year, the Company has generally been

regular in depositing undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with the appropriate authorities. There were no undisputed amounts payable in respect of any statutory dues in arrear as at the year-end for a period of more than six months from the date they become payable;

(b) According to the information and explanations given to us, the details of above mentioned statutory dues which have not been deposited on account of any dispute, as at year end are as follows :

Name of statute	Nature of taxes	Amount in dispute (Rs in Lacs)	For Financial Year	Amount Deposited+	Forum at which matter is pending
Income Tax Act 1961	Income Tax	1344.16*	2009-10	1344.16	#
Income Tax Act 1961	Income Tax	1496.52*	2010-11	1496.52	#
Income Tax Act 1961	Income Tax	1519.54*	2011-12	1519.54	#
Income Tax Act 1961	Income Tax	2216.55*	2012-13	2216.55	#
Income Tax Act 1961	Income Tax	1547.05	2013-14	1547.05	CIT (Appeals)
Income Tax Act 1961	Income Tax	2310.96*	2014-15	2310.96	#
Income Tax Act 1961	Income Tax	2761.20*	2015-16	2761.20	#
Income Tax Act 1961	Income Tax	5337.19*	2016-17	2,299.06	#
Income Tax Act 1961	Income Tax	2678.78*	2017-18	1,732.07	#
Income Tax Act 1961	Income Tax	427.01*	2019-20	149.86	#
Finance Act (FA)1994, FA 2004, FA 2015	Service Tax & penalty	11709.10	2012-13 to 2015 -16	786.35	CESTAT, New Delhi
Finance Act (FA)1994, FA 2004, FA 2015	Service Tax & penalty	4145.78	2016- 17 & 2017- 18	388.34	CESTAT, Mumbai
CGST Act 2017 & Delhi Goods & Service Tax Act, 2017	GST & penalty	3050.66	2017- 18 & 2018- 19	1,525.08	#
The Companies Act,2013	Penalty	2.62	2021-22 & 2022-23	-	Appeal filed with Regional Director ( NR), Delhi

+ Deposited under protest / prepaid taxes

# Second appeal to be filed with higher authorities within statutory period

*Represents tax demand to be finally reduced by way of appeal effect pursuant to favourable order by CIT(Appeal)

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, during the year, there are no transactions which have been surrendered or disclosed as income in tax assessments under the Income Tax Act, 1961 (43 of 1961). In view of this, there are no transactions of previously unrecorded income in terms of clause 3 (viii) of the Order.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of

the Company, the Company has not defaulted in repayment of any loans or other borrowings or in the payment of interest thereon to any lender. In view of this, other reporting required under clause 3(ix) (a) of the Order is not applicable.

(b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the company has not been declared wilful defaulter by any bank, financial institution or other lender.

(c) According to the information and explanations given to us and the procedures performed by us on the basis of our examination of the records of the Company, Term loans were applied for the purpose for which the loans were obtained. In view of this the reporting required under clause 3(ix)(c ) of the Order is not applicable.

(d) According to the information and explanations given to us, the procedures performed by us, and on an overall examination of the financial statements of the company, prima-facie, no funds raised on short-term basis have been used for long-term purposes by the company. In view of this the reporting required under clause 3(ix)(d) of the Order is not applicable.

(e) During the year, the company has no subsidiaries, joint ventures or associates. In view of this the reporting required under clause 3(ix)(e) & 3(ix)(f) is not applicable.

(x) (a) The company has utilised the money raised by way of initial public offer for the purpose for which they were

raised. Money raised by the Company by way of debt instruments (public offer or otherwise) during the year was applied for the purposes for which those were raised.

(b) The company has not made any preferential allotment or any private placement of shares or convertible debentures during the year.

(xi) (a) Based on our audit procedures and as per the information and explanations given to us by the management,

during the year, we have not come across any instance of any material fraud by the Company or on the Company.

(b) During the year, no report was required to be filed by the auditors with the Central Government under subsection (12) of section 143 of the Companies Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014.

(c) According to the information and explanations given to us and based on our examination of the records of the Company, the company has not received any whistle-blower complaints during the year.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xiii) (a), (b) or (c) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of Companies Act where applicable and necessary disclosures have been made in the Financial Statements as required by the applicable accounting standards;

(xiv) (a) In our opinion and based on our examination, the company has an internal audit system Commensurate with the

size and nature of its business.

(b) We have considered the reports of internal auditors of the company issued till date, for the period under audit in determining the nature, timing and extent of our audit procedures .

(xv) According to the information and explanations given to us, in our opinion during the year the company has not

entered into any non-cash transactions with its directors or persons connected with its directors. In view of this the

reporting required under clause 3(xv) of the Order is not applicable.

(xvi) (a) The company is required and is registered under section 45-IA of the Reserve Bank of India Act,1934(2 of 1934) for conducting Non-Banking Financial activities.

(b) The Non-Banking Financial activities carried by the company are under a valid Certificate of Registration.

(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, the reporting required under clause 3(xvi) (c) and (d) of the Order is not applicable;

(xvii) The company has neither incurred cash losses in this financial year nor in the immediately preceding financial year;

(xviii) There has been no resignation of the statutory auditors during the year and accordingly the reporting required under this clause is not applicable;

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We further state that our reporting is based on facts upto the date of our audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date will get discharged by the Company as and when they fall due;

(xx) (a) Based on our audit procedures and as per the information and explanations given to us by the management, in

respect of other than ongoing projects, the company is not required to transfer any unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act. However, an unspent amount of Rs 8.43 lacs pertaining prior to financial year 2019-2020 is being transferred to the Fund specified in Schedule VII of the Companies Act voluntarily. ; [Refer note No. 38(37) to financial statements]

(b) Based on our audit procedures and as per the information and explanations given to us by the management, amount remaining unspent pursuant to any ongoing project amounting to Rs 1112.90 Lacs is to be transferred to a special account in compliance of the provisions of sub-section (6) of section 135 of the Companies Act,2013 [Refer note No. 38(37) to financial statements ]

(xxi) The company is not required to prepare consolidated financial statements under section 129(3) of the Companies Act, 2013. Accordingly, clause 3(xxi) of the Order is not applicable.

For DSP & ASSOCIATES

Chartered Accountants

Firms Registration Number: 006791N

Sd/-

(Atul Jain)

Partner

Membership No. 091431

Date: 19^lh April 2024

Place: New Delhi

UDIN: 24091431BKFKGN1586

Annexure-B to the Independent Auditors Report

Directions under section 143(5) of the Companies Act, 2013 issued by the Comptroller & Auditor General of India.

1. Whether the Company has system in place to process all the accounting transactions through IT System? If yes, the implications of processing of accounting transactions outside IT System on the integrity of accounts along with the financial implications, if any, may be stated.

Answer:

According to the information and explanations given to us and based on our audit, all accounting transactions are routed through IT system implemented by the Company. Period end Financial Statements are compiled offline based on balances and transactions generated from the IT system. We have neither been informed nor have we come across during the course of our audit any accounting transactions having impact on the integrity of the accounts along with the financial implications which have been processed outside the IT system.

2. Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/interest etc., made by a lender to the Company due to the Companys inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (In case lender is a government company, then this direction is also applicable for statutory auditor of Lender Company.

Answer:

i. According to information and explanations given to us and based on our audit, there is no case of restructuring of an existing loan or cases of waiver/ write off of debts/ loans/ interest etc. made by any lender to the Company.

ii. In respect of operations of the company as a lender, being a Government Company, the company has properly accounted for such cases where existing loans given are restructured or cases of waiver/write off of debts /loans/interest etc. and there is no material financial impact of such cases.

3. Whether the funds received/ receivable for specific schemes form Central/State agencies were properly accounted for/ utilized as per its terms and conditions? List the cases of deviation.

Answer:

According to information and explanations given to us and based on our audit, the Company has accounted for and utilized the funds received for specific schemes from Central/ State agencies as per the terms and conditions of the schemes.

For DSP & ASSOCIATES

Chartered Accountants

Firms Registration Number: 006791N

Sd/-

(Atul Jain)

Partner

Membership No. 091431

Date: 19^lh April 2024

Place: New Delhi

UDIN: 24091431BKFKGN1586

Annexure-C to the Independent Auditors Report

Report on the Internal Financial Controls Over Financial Reporting under Clause (1) of Sub-Section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the internal financial controls over financial reporting of Indian Renewable Energy Development Agency Limited, (the Company) as March 31, 2024 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting record, and timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note) and the Standards on Auditing, both issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the ICAI. Those Standards and the Guidance Note required that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial control over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting includes obtaining an understanding of internal financial controls over financial report, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and procedures that:

1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected, also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an internal financial controls system over financial reporting and such financial controls system over financial reporting were operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI. Further, certain areas of accounting records including Asset Liability Management (ALM) are in process of automation for better control.

Our opinion is not modified in respect of above matters.

For DSP & ASSOCIATES

Chartered Accountants

Firms Registration Number: 006791N

Sd/-

(Atul Jain)

Partner

Membership No. 091431

Date: 19^lh April 2024

Place: New Delhi

UDIN: 24091431BKFKGN1586

Non-Banking Financial Companies Auditors Report

The Board of Directors,

Indian Renewable Energy Development Agency Limited New Delhi

We have audited the accompanying Financial Statements of Indian Renewable Energy Development Agency Limited ("the Company"),which comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss (including Other Comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes to the Financial Statements, including a summary of significant accounting policies and Other Explanatory information prepared in accordance with the requirement of the Companies Act 2013 ( as amended) ( "the Act") (hereinafter referred to as "Financial Statements").

As required by the Non-Banking Financial Companies Auditors Report (Reserve Bank) Directions, 2016 issued by the Reserve Bank of India ("RBI") on the matters specified therein to the extent applicable to the company, we report that:

1. The company is engaged in the business of non-banking financial institution, having a valid certificate of Registration (COR) vide no. 14.000012 dated 13^th March, 2023 as an Infrastructure Finance Company (IFC) issued in lieu of the earlier certificates of Registration vide no. 14.000012 dated 23^rd January, 2008 as an Investment Credit Company (ICC) and earlier registered vide Certificate no. 14.000012 dated 10th February 1998, pursuant to the companys application for registration as per provisions of Section 45-IA of the Reserve Bank of India Act, 1934.

2. The company is entitled to continue to hold such COR in terms of its Principle Business Criteria (Financial Asset/ Income pattern) as on March 31, 2024.

3. The company being an NBFC Infrastructure Finance Company ("NBFC - IFC") , is meeting the requirement of net owned fund applicable to such companies as laid down in Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated 19^th October 2023 ( as amended) ( hereinafter referred as "MD 2023") The Master Directions - Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Master Direction -Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 ( hereinafter referred as "MD 2016") have since been repealed by MD 2023.

4. The Board of Directors have resolved on April 25, 2023 that the company will not accept public deposit during the financial year 2023-24 without prior approval of the Reserve Bank of India.

5. The company has not accepted any public deposits during the financial year 2023-24.

6. The financial statements of the Company for the financial year 2023-24 have been prepared in accordance with the recognition and measurement principles of Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act 2013 read with relevant rules issued there under and MD 2023 issued by RBI. Accordingly, the Company is following Board approved methodology for computation of Impairment Allowance towards provisioning for its loan assets and classification thereof. In view of regulatory compliance of Companies Act 2013 for adoption of a mechanism for preparation of financial statements, the Company is required to make provision of impairment loss as per Ind AS 109 and not required to follow the Prudential norms relating to income recognition, asset classification and provisioning (IRACP norms) for Bad and Doubtful debts in terms of MD 2016. However in this regard, in compliance of MD 2023 the company has calculated provision required under IRACP Norms (including standard assets provisions) and company is not required to appropriate any amount to "Impairment Reserve"

7. The company is a NBFC Middle layer (NBFC-ML) as defined in MD 2023. Accordingly :

i) The capital adequacy ratio as disclosed in the quarterly return styled DNBS - 3 submitted to the Bank, has been correctly arrived at and such ratio is in compliance with the minimum CRAR prescribed by the Bank. The submission of Return in Form NBS -7 has since been discontinued by the Reserve Bank of India (RBI).

ii) The company has furnished to the RBI, the quarterly statement of capital funds, risk assets/ exposures and risk asset ratio in

DNBS - 3 for the quarter ended 30^th June 2023, 30^th September 2023 & 31^st December 2023 within the stipulated period based on provisional financial statements and DNBS-3 for the quarter ended 31^st March 2024 is yet to be filed within stipulated period. The submission of Return in Form NBS -7 has since been discontinued by the Reserve Bank of India (RBI).

8. The company is not a NBFC Micro Finance Institution ( NBFC-MFI) as defined by MD- 2023. The MD 2016 has since been repealed by MD - 2023

For DSP & ASSOCIATES

Chartered Accountants

Firms Registration Number: 006791N

Sd/-

(Atul Jain )

Partner

Membership No. 091431

Date: 19^th April 2024 Place: New Delhi

UDIN: 24091431BKFKGO9203

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY FOR THE YEAR ENDED 31 MARCH 2024.

The preparation of financial statements of Indian Renewable Energy Development Agency for the year ended 31 March 2024 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 139 (5) of the Act is responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143 (10) of the Act. This is stated to have been done by them vide their Audit Report dated 19.04.2024.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of Indian Renewable Energy Development Agency for the year ended 31 March 2024 under section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors report under section 143(6)(b) of the Act.

	For and on behalf of the Comptroller & Auditor General of India
	Sd/- Gurveen Sidhu Director General of Audit Central Expenditure (Environment & Scientific Department)
Place : New Delhi Date : 28.05.2024