sterling wilson renewable energy ltd share price Auditors report

TO THE MEMBERS OF STERLING AND WILSON RENEWABLE ENERGY LIMITED

(Formerly known as Sterling and Wilson Solar Limited]

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of STERLING AND WILSON RENEWABLE ENERGY LIMITED (Formerly known as Sterling and Wilson Solar Limited) ("the Company"), which comprise the Standalone Balance Sheet as at March 31, 202 3, the Standalone Statement of Profit and Loss (including Other Comprehensive Income / Loss], the Standalone Statement of Changes in Equity, the Standalone Statement of Cash Flows for the year then ended and the Notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information, in which are incorporated the returns for the year ended on that date audited by the branch auditors of the Companys branches located at Australia, Argentina, Chile, Dubai, Egypt (2 branches], Indonesia, Jordan (2 branches], Kenya, Mexico, Namibia, Philippines, United Kingdom, Vietnam (3 branches], Tanzania, Mali, New Zealand, and Zambia.

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of branch auditors on financial information of such branches as, were audited by the branch auditors, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, ("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 (India Accounting Standards] Rules, 2015, as amended, (Ind-AS] and with other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its loss, total comprehensive loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs] specified under section 143(10] of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI] together with

the ethical requirements that are relevant to our audit of the standalone 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 we have obtained along with the consideration of audit reports of the branch auditors referred to in paragraph (i] of the "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matters We draw attention to:

i] Note 53 to the standalone financial statement which describes the Indemnity Agreement dated December 29, 2021, entered into by the Company with Shapoorji Pallonji and Company Private Limited, Khurshed Yazdi Daruvala (jointly the "Promoter Selling Shareholders"] and Reliance New Energy Limited (formerly known as Reliance New Energy Solar Limited] pursuant to which, the Promoter Selling Shareholders would indemnify and re-imburse the Company and its subsidiaries / branches for a net amount, on settlement of liquidated damages pertaining to certain identified past and existing projects (as on the date of signing the aforementioned agreement], old receivables, direct and indirect tax litigations as well as certain legal and regulatory matters, if such claims (net of receivables] exceeds Rs 300 crore. Consequently, trade receivables from the customer undergoing a resolution process under the supervision of the National Company Law Tribunal (NCLT] and bank guarantees encashed by certain customers would also be recoverable from the Promoter Selling Shareholders once crystallized, if not recovered from the customers. Since all future crystallized claims beyond Rs 300 crore will be fully charged back and recovered from the Promoter Selling Shareholders, there will be no further impact on the results of the Company.

ii] Note 56 to the standalone financial statements in respect of the managerial remuneration paid by the Company during the year in relation to its Manager exceeding the limit prescribed under Section 197 of the Act, read with Schedule V of the Act by Rs 1.00 crore. The same needs to be ratified by the shareholders by a special resolution in the forthcoming Annual General Meeting of the Company.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No. Key Audit Matters	Principal Audit Procedures performed
1. Revenue recognition of Engineering, Procurement and Commissioning Contracts (EPC Contracts) - Estimated Costs to Complete	Understood the Management controls around estimation process and derivation of the estimated cost (Cost to Complete) thereof.
(Refer Note 30 of the standalone financial statements).	Evaluated and tested the design, implementation and operating effectiveness of controls addressing this risk.
The Company follows a Percentage of Completion
Method for Revenue Recognition of Engineering, Procurement and Commissioning (EPC) Contracts which involves actual cost and estimate / forecast for balance cost.	Reviewed the Companys accounting policies with respect to accounting and revenue recognition relating to EPC Contracts.
Due to significant judgment involved in the estimation of the total revenue, costs to complete and the revenue that should be recognized and significant audit risk of overstatement, we have considered Revenue Recognition - Estimated cost to complete EPC Contracts as a key audit matter.	Obtained the list of all the contracts for which the Company has recognised revenue during the year and selected samples on which we conducted our test of details.
	For selected samples we have
	- Obtained the Job Status Report ("JSR") / Percentage of Completion ("POC") working for EPC Contracts and traced the same to financial statements and general ledgers.
	- Verified the executed version of contracts and its amendments for key terms and milestones to verify the estimated total revenue and costs to complete and / or any changes thereto;
	- Inquired with the project and commercial departments about significant modification to Cost to Complete, evaluated and challenged rationale for modification
	- Evaluated key Management estimates used in determining cost to complete by comparing it with prior periods and past precedents.
	- Verified the approval documents for change in the estimated cost during the year and if there is change in the margin due to addition / deletion of items in Bill of Quantity (Forecast) ("BOQ") / JSR / POC, the approval of the Global Chief Executive Officer is obtained.

2. Litigated Overdue Receivables
(Refer Note 12, 17, 42, 53 and 54 of the standalone financial statements).	- Understood the processes and controls around estimation process of recoverability and provision thereof.
We considered this as key audit matter on account of risk associated with litigated overdue receivables, the Companys assessment of the recoverability of these receivables and consequent determination of provision which requires significant Management estimates and judgments.	- Verified the completeness and accuracy of data considered for ageing analysis and assessment of recoverability of receivables in respect of receivables not covered under indemnity and determination of the provision.
	- Wherever required, obtained the legal opinions for evaluating the case position and assessing the potential outcome.

Sr. No. Key Audit Matters	Principal Audit Procedures performed
3. Assessment of Impairment of Investments made in, loans given to and other receivables from the subsidiaries of the Company.	Understood the processes and controls around Managements impairment assessment of exposure in its subsidiaries in the nature of investments made, loans given and other receivables from its subsidiaries.
(Refer Note 6, 15 and 17 of the standalone financial statements). Due to operating losses, the net-worth of certain subsidiaries / step down subsidiaries have become negative as on March 31, 2023. The Companys exposure is reflected in the standalone financial statements in the form of investments in, loans given to and other receivables from those subsidiaries.	Assessed the reasonability of Managements assumptions used to project the future cashflows for the purposes of analysing the recoverability of investments made, loans given and other receivables from its subsidiaries.
The Management has prepared projected cashflows for its subsidiaries for the next financial year. The determination of the recoverable amount from its subsidiaries involves Management estimates and judgment which may affect the outcome.
Since, there is an inherent risk in the valuation of investment / recoverability of loans and other receivables, due to the use of estimates and judgements mentioned above and accordingly, the assessment of impairment of investment / loans in subsidiary company has been determined as a key audit matter.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the Management Discussion and Analysis, Boards Report including Annexures to Boards Report and Report on Corporate Governance but does not include the standalone financial statements and our auditors report thereon.

Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information identified above and compare with the financial statements of the branches audited by the branch auditors, to the extent it relates to these branches, and in doing so, place reliance on the work of the branch auditors and consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone 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 standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and the 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, Management is responsible for assessing the 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 Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the 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 Companys ability 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 standalone financial

statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its branches to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial information of such branches included in the standalone financial statements of which we are the independent auditors. For the other branches included in the standalone financial statements, which have been audited by branch auditors, such branch auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (i) of the section titled "Other Matters" in this audit report.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the 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 standalone financial statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current year 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.

Other Matters

i) We did not audit the annual financial statements of 16 branches included in the standalone financial statement of the Company, whose annual financial statements reflect total assets (before consolidation adjustments) of Rs 767.57 crore as at March 31, 2023, total revenues (before consolidation adjustments) of Rs 856.42 crore, total net loss after tax (before consolidation adjustments) of Rs 229.56 crore, and total comprehensive loss (before consolidation adjustments) of Rs 229.56 crore for the year ended on March 31, 2023, and net cash outflows of Rs 56.07 crore for the year ended on that date as considered in the standalone financial statements of the Company.

The annual financial statements of these branches have been audited by the respective branch auditors whose reports have been furnished to us and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors and the procedures performed by us as stated in Auditors Responsibilities section above.

ii) The branches referred to above are located outside India whose annual financial statements have been prepared in accordance with the accounting principles generally accepted in their respective countries and which have been audited by the respective branch auditors under generally accepted auditing standards applicable in their respective countries. The Companys Management has converted the financial statements of such branches located outside India from the accounting principles generally accepted in their respective countries to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the Companys Management.

Our opinion in so far as it relates to the amounts and disclosures included in respect of these branches located outside India is based on the report of such branch auditors and the conversion adjustments prepared by the Management of the Company and audited by us.

iii) Attention is drawn to the fact that the figures in the standalone financial statements for the financial year ended March 31, 2022, were audited by one of us, whose audit report expressed an unmodified opinion with an Emphasis of Matters paragraph.

Our opinion is not modified in respect of these matters.

Report 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 Section 143(11) 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 the extent applicable.

2. As required by section 143(3) of the Act, based on our audit and on the consideration of the reports of the branch auditors on the separate financial information of the branches and referred to in the Other Matters section above we report, to the extent applicable 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 the branches not visited by us, except for maintaining backup on a daily basis of such books of account maintained by certain branches in electronic mode, in a server physically located in India.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

d) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income/Loss), the Standalone Cash Flows Statement and the Standalone Statement of Changes in Equity, dealt with by this Report are in agreement with the relevant books of account and with the returns received from the branches not visited by us.

e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder.

f) On the basis of the written representations received from the Directors of the Company as on March 31, 2023, taken on record by the Board of Directors, none of the Directors of the Company are disqualified as on March 31, 2023, from being appointed as a Director in terms of Section 164 (2) of the Act.

g) The observation relating to the maintenance of accounts and other matters connected therewith, are as stated in the paragraph (b) above.

h) With respect to the adequacy of the internal financial controls over financial reporting with reference to the standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on

the adequacy and operating effectiveness of the Companys internal financial controls with reference to the standalone financial statements.

i) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, as referred in paragraph (ii) of the Emphasis of Matters, the managerial remuneration paid to its Manager by the Company during the year exceeds the limit prescribed under Section 197 of the Act read with Schedule V of the Act by Rs 1.00 crore. The same needs to be ratified by the shareholders in the forthcoming General meeting of the Company.

j) 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, as amended, 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 standalone financial position. - Refer Note 42 to the standalone financial statements.

ii) The Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long-term contracts - Refer Note 28 to the standalone financial statements. The Company does not have any long-term derivative contract.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

iv) The Management has represented that:

a) to the best of its knowledge and belief, no funds (which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share

premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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) to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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;

Based on the audit procedures performed by us which is 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 (i) and (ii) of Rule 11(e) as provided under (a) and (b) contain any material misstatement.

v) As per information and explanation provided by Management and based on the records of the Company, no dividend has been declared or paid or proposed during the year by the Company. Hence the compliance with Section 12 3 of the Act is not applicable.

Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

For KALYANIWALLA & MISTRY LLP	For DELOITTE HASKINS & SELLS LLP
CHARTERED ACCOUNTANTS	CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166	Firm Regn. No.: 117366W-W-100018
Daraius Z. Fraser	Mohammed Bengali
PARTNER	PARTNER
M. No.: 42454	M. No.: 105828
UDIN: 2 3042454BGXFQC2883	UDIN: 2 3105828BGWPIE702 3
Mumbai: April 20, 2023.	Mumbai: April 20, 2023.

Annexure A to the Independent Auditors Report

The Annexure referred to in paragraph 1 Report on Other Legal and Regulatory RequirementsRs In our Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended March 31, 2023:

Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditors Report) Order, 2020:

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:

i) In respect of Companys Property Plant and Equipment, Intangible Assets and Right of use assets:

a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of Right of Use Assets.

(B) The Company has maintained proper records showing full particulars of intangible assets.

b) The Company has a program of physical verification of Property, Plant and Equipment and Right of Use assets so as to cover all the assets over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, the Company has physically verified certain property, plant and equipment during the year and no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company does not have any immovable properties. Accordingly, paragraph 3 (i)(c) of the Order is not applicable to the Company.

d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year.

e) According to the information and explanations given to us, and basis representation obtained from Management and on the basis of our examination of

the records of the Company, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2023, for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii) Inventory

a) The Management has conducted physical verification of inventories (stores and spare parts and construction materials) and site visits by the Management of project land at reasonable intervals. In our opinion and according to the information and explanations given to us, the coverage and procedure of such physical verification is reasonable having regard to the size of the Company and the nature of its operations and discrepancies of 10% or more in the aggregate for each class of inventories noticed on such physical verification of inventories when compared with books of account, have been properly dealt with in the books of account.

b) According to the information and explanations given to us by the Management and books and records maintained, the Company has been sanctioned working capital limits in excess of Rs 5 crore, in aggregate, at various points of time during the year, from banks and financial institutions on the basis of security of current assets of the Company. In our opinion and according to the information and explanations given to us, the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters.

iii) Loans, Investments, etc.

The Company has neither made any investments in, nor provided any securities or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year.

a) The Company has provided guarantees and granted unsecured loans to subsidiaries during the year as detailed in Note 45 to the standalone financial statements.

A. The details as under:
		(Rs in Crore)
Particulars	Guarantees	Loans
Aggregate amount granted / provided during the year
- Subsidiaries	242.05	1,172.12
Balance outstanding as at balance sheet date in respect of above cases*
- Subsidiaries	1,704.69	1,260.24

* The amounts reported are at gross amounts, without considering provisions made.

B. The Company has not provided guarantees, securities or granted loans and advances in the nature of loans to any other parties.

b) In our opinion, guarantees provided and the terms and conditions of the grant of all the above-mentioned loans and guarantees provided, during the year, are prima facie, not prejudicial to the interest of the Company.

c) According to the information and explanations given to us and based on the audit procedures performed by us, unsecured loans granted to subsidiaries along with the interest thereon are repayable on demand. A subsidiary company has been regular in payment of principal and interest as demanded. Having regard to the fact that the repayment of principal or payment of interest has not been demanded by the Company from three other subsidiary companies, in our opinion the repayments of principal amounts and receipts of interest are regular. (Refer reporting under clause (iii)(f) below).

d) According to the information and explanations given to us and based on the audit procedures performed by us and having regard to the terms of repayment of unsecured to the subsidiaries loans and interest thereon being on demand, there are no overdue amounts at the balance sheet date in respect of repayments demanded thereof.

e) No loans granted by the Company which have fallen due during the year or being demanded, have been renewed or extended or fresh loans granted to settle the over-dues of existing loans given to the same parties.

f) The Company has granted loans repayable on demand or without specifying any terms or period of repayment to Promoters and related parties as defined in clause (76) of section 2 of the Act whose details are as under:

		(Rs in Crore)
	Promoters	Related Parties
Aggregate amount of loans		1,260.24
- Repayable on demand (A)	-	-
- Agreement does not specify any terms or period of repayment (B)
Total (A+B)	-	1,260.24
Percentage of loans to the total loans	-	100%

iv) Section 185 and 186

In our opinion and according to the information and explanations given to us and based on the audit procedures performed by us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans granted, investments made and guarantees provided as applicable. The Company has not provided any security in connection with a loan to any other body corporate or person and accordingly, compliance under Sections 185 and 186 of the Act in respect of providing securities is not applicable to the Company.

v) Public Deposits

The Company has not accepted any deposit or amounts which are deemed to be deposits during the year. Hence, reporting under clause 3(v) of the Order is not applicable. According to the information and explanations given to us and representation obtained from Management, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal against the Company in this regard.

vi) Cost Records

Having regard to the nature of the Companys business / activities, reporting under clause (vi) of the Order is not applicable.

vii) Statutory Dues

a) According to the information and explanations given to us and on the basis of the records examined by us, the Company have generally been regular in depositing with the appropriate authorities, though there have been slight delays in a few cases in respect of undisputed statutory dues, including Goods and Service tax, Provident Fund, Employees State Insurance, Income-tax, duty of Custom and other material applicable statutory dues during the year. The provisions relating to sales tax, duty of excise, value added tax and cess are not applicable to the Company. There were no undisputed amounts payable in respect of Goods and Service tax, Employees State Insurance, Income-tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, cess and other material applicable statutory dues in arrears as at March 31, 2023, for a period of more than six months from the date they became payable except for Provident Fund for Rs 0.17 crore.

b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2023, on account of disputes are given below:

Name of Statute	Nature of Dues	Amount* (Rs in Crore)	Period to which the amount relates	Forum where dispute is pending
Central Goods and Services	CGST, interest and penalty	41.02	2017-18	Andhra Pradesh High Court
Tax Act, 2017		42.31	2017-18	Gujarat High Court
		88.49	2018-19	Rajasthan High Court
The Andhra Pradesh Goods and Services Tax Act, 2017.	SGST, interest and penalty	40.57	2017-18	Andhra Pradesh High Court
Rajasthan Goods and Services Tax Act, 2017.	SGST, interest and penalty	88.49	2018-19	Rajasthan High Court
Gujarat Goods and Services Tax Act, 2017	SGST, interest and penalty	42.31	2017-18	Gujarat High Court
Egypt Value Added Tax	VAT interest and penalty	30.95	2017-2020	Egypt VAT office
Income Tax Act, 1961.	Income-tax and interest	14.14	2018-19 2020-21	CIT Appeals

* net of Rs 1.85 crore paid under protest.

viii) Undisclosed Income

According to the information and explanations given to us and on the basis of the records examined by us, there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

ix) Borrowings:

a) In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in repayment of loans or other borrowings or payment of interest thereon to any lender.

b) In our opinion and according to the information and explanations given to us and representation obtained from Management, the Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority.

c) In our opinion and according to the information and explanations given to us and to the best of our knowledge and belief, term loans availed by the Company were, applied by the Company during the year for the purposes for which the loans were obtained.

d) In our opinion and according to the information and explanations given to us and representation obtained from Management, on an overall examination of the standalone financial statements of the Company, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.

e] In our opinion and according to the information and explanations given to us, representation obtained from Management, and on an overall examination of the standalone financial statements of the Company, the Company has taken funds from following entities on account of or to meet the obligations of its subsidiaries as per details below:

Nature of funds taken	Name of lender	On account of or to meet the obligations of subsidiary
		Amount Involved (Rs in Crore)	Name of the Subsidiary	Relation	Nature of transaction for which funds utilized
Working capital loans and Term Loans	Banks and Financial Institutions	1,101.09	Sterling and Wilson International Solar FZCO	Subsidiary	Working capital

f) The Company has not raised any loans during the year on the pledge of securities held in its subsidiaries and hence reporting on clause 3(ix)(f) of the Order is not applicable.

x) Issue of Securities

a) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause (x)(b) of the Order is not applicable to the Company.

xi) Fraud

a) To the best of our knowledge, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

b) To the best of our knowledge, no report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report.

c) As represented to us by the Management, there are no whistle blower complaints received by the Company during the year and upto the date of this report.

xii) Nidhi Company

The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.

xiii) Related Parties

According to the information and explanations given to us and based on our examination of the records of the Company, in our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

xiv) Internal Audit

a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and covering the period upto March 21, 2023, in determining the nature, timing and extent of our audit procedures.

xv) Non-cash transactions

According to the information and explanations given to us and based on our examination of the records of the Company, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors and hence provisions of section 192 of the Act are not applicable to the Company.

xvi) In respect of registration u/s 45-IA

a) In our opinion, according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and has also not conducted any Non-Banking Financial or Housing Finance activities. Hence, reporting under clause 3(xvi)(a) and (b) of the Order are not applicable.

b) The Company and any other company in the Group is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Hence, reporting under clause 3(xvi)(c) and (d) of the Order are not applicable.

xvii) Cash Loss

The Company has incurred cash losses amounting to Rs 419.54 crore during the financial year covered by our audit and Rs 10.68 crore in the immediately preceding financial year.

xviii) Resignation of Statutory Auditors

During the year, there has been no resignation of the statutory auditor of the Company.

xix) Ability to Pay Liabilities

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 standalone financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not 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, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and representation from Management. Our report neither gives 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) Corporate Social Responsibility

a) There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects that require to be transferred to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.

b) In respect of ongoing projects, the Company has transferred the unspent Corporate Social Responsibility (CSR) amount as at the Balance Sheet date out of the amounts that was required to be spent during the year, to a Special Account in compliance with the provision of sub-section (6) of section 135 of the Act till the date of our report.

For KALYANIWALLA & MISTRY LLP	For DELOITTE HASKINS & SELLS LLP
CHARTERED ACCOUNTANTS	CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166	Firm Regn. No.: 117366W-W-100018
Daraius Z. Fraser	Mohammed Bengali
PARTNER	PARTNER
M. No.: 42454	M. No.: 105828
UDIN: 2 3042454BGXFQC2883	UDIN: 23105828BGWPIE7023
Mumbai: April 20, 2023.	Mumbai: April 20, 2023.

Annexure B to the Independent Auditors Report

(Referred to in paragraph 2 (h) under Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls with reference to standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the standalone financial statements of STERLING AND WILSON RENEWABLE ENERGY LIMITED (Formerly known as Sterling and Wilson Solar Limited) (hereinafter referred to as the the Company), as of March 31, 2023, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date which includes internal financial controls with reference to financial reporting of the Companys branches.

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 (the "Guidance Note") issued by the Institute of Chartered Accountants of India (the "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 records and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (the "Act" or the "Companies Act").

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements 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 with reference to the standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to the standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, 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 risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, and the audit evidence obtained by the branch auditors in terms of their report referred to in the Other Matters paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financial statements

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

i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company.

ii) 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

iii) 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 with reference to standalone financial statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial statements 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, to the best of our information and according to the explanations given to us and based on the consideration of the reports of branch auditors on internal controls with reference to the financial information of such branches as were audited by the branch auditors, the Company has in all material respects, an adequate internal financial controls system with reference to the standalone financial statements and such

internal financial controls were operating effectively as at March 31, 2023, based on the internal controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.

Other Matters

We did not audit the internal financial controls with reference to financial information / statements of 16 branches (in Australia, Argentina, Chile, Dubai, Egypt, Indonesia, Jordan, Kenya, Mexico, Namibia, Philippines, Vietnam, Tanzania, Mali, New Zealand and Zambia) of the Company. The internal financial controls with reference to financial information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the internal financial controls with reference to financial information included in respect of these branches, is based solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

For KALYANIWALLA & MISTRY LLP	For DELOITTE HASKINS & SELLS LLP
CHARTERED ACCOUNTANTS	CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166	Firm Regn. No.: 117366W-W-100018
Daraius Z. Fraser	Mohammed Bengali
PARTNER	PARTNER
M. No.: 42454	M. No.: 105828
UDIN: 2 3042454BGXFQC2883	UDIN: 23105828BGWPIE7023
Mumbai: April 20, 2023.	Mumbai: April 20, 2023.