NOTE: 1 CORPORATE INFORMATION

inox Wind Limited (the "Company") is engaged in the business of manufacture of Wind Turbine Generators (Rs.WTGs") and also provides Erection, Procurement & Commissioning (Rs.EPC") services for WTGs. The area of operations of the Company is within India. The Company is a subsidiary of Gujarat Fluor chemicals Limited. The Company has made an initial Public Offer during the year and shares of the Company were listed on the Bombay Stock Exchange and the National Stock Exchange of india on 9th April, 2015

NOTE: 2 BASIS OF brPARATION:

These financial statements have been brpared in accordance with the generally accepted accounting principles in india, under the historical cost convention and on accrual basis.These financial statements comply in all material respects with the applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

Figures of the brvious year have been regrouped or reclassified, wherever necessary, to confirm to current year brsentation.

NOTE: 3 SIGNIFICANT  ACCOUNTING  POLICIES

(a) Revenue Recognition:

Revenue from sale of products is recognized when the significant risks and rewards of ownership of goods have passed on to the customers in terms of the respective contracts for supply. Sales are exclusive of sales-tax and net of sales return/cancellation and discounts, income on sale of electricity generated is recognized on the basis of actual units generated and transmitted to the purchaser.

Revenue from Erection, Procurement and Commissioning contracts is recognized on completion of services, in terms of the contract, and is net of taxes.  interest income is recognized on a time proportion basis. Dividend income is recognized when the unconditional right to receive the dividend is established.

(b) Fixed Assets:

Fixed assets are carried at cost as reduced by accumulated debrciation/amortization, except freehold land, which is carried at cost. Cost comprises of cost of acquisition/construction, including any expenses attributable to bring the asset to its working condition for its intended use, and is net of credit for taxes, as applicable, intangible assets are recorded at the cost of acquisition of such assets and are carried at cost less accumulated amortization.

(c) Debrciation and Amortization:

Consequent to Schedule ii of the Companies Act, 2013 becoming effective from 1st April 2014, the debrciation/amortization is provided as under:

I. on tangible assets-Cost of leasehold land is amortized over the period of lease. Debrciation on other fixed assets, excluding freehold land, is provided on straight line method at the rates determined as per the useful lives brscribed in Schedule ii to the Companies Act, 2013.

II. on intangible assets-Cost of technical know-how is amortized equally over a period of ten years. Cost of software is amortized equally over a period of six years.  Up to 31st March 2014,debrciation/amortization was provided as under:

I. on tangible assets-Cost of leasehold land was amortized over the period of lease. Debrciation on other fixed assets, excluding freehold land, was provided on straight line method at the rates and in the manner specified in Schedule XiV to the Companies Act, 1956. Fixed assets costing upto Rs.5,000 each were fully debrciated in the year of acquisition.

II. on intangible assets -

Cost of technical know-how was amortized equally over a period of ten years. Cost of software was amortized @ 16.21% p.a. on straight line method.

(d) Impairment of assets:

Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's assets and impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount.

(e) Investments:

Long term investments are carried at cost. Provision for diminution is made to recognize the decline, other than temporary, in the values of investments. Current investments are carried at lower of the cost and fair value.

(f) Inventories:

inventories are valued at lower of cost and net realizable value. Cost is determined using weighted average method. The cost of finished goods and work-in-progress are inclusive of appropriate overheads.

(g) Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss in the year in which related services are rendered.Company's contribution towards provident and pension fund viz. Defined Contribution Plan, paid / payable during the year is charged to the Statement of Profit and Loss. Post employment benefits in the form of Gratuity and Leave Encashment are recognized as an expense in the Statement of Profit and Loss at the brsent value of the amounts payable, determined on the basis of actuarial valuation techniques, using the projected unit credit method. Actuarial gains and losses are recognized in the Statement of Profit and Loss.

(h) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are recognized as expenses in the statement of Profit & Loss.

(i) Taxes on income:

income tax expense comprises of current tax and deferred tax charge. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Minimum Alternate Tax (MAT) paid on the book profits, which gives rise to future economic benefits in the form of tax credit against future income-tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax within the period brscribed for utilization of such credit.

(j) Foreign Currency Transactions and forward contracts:

Transactions in foreign currency are recorded in rupees by applying the exchange rate at the date of the transaction. At the Balance Sheet date, monetary assets and liabilities in foreign currency are restated by applying the closing rate. Gains or Losses on settlement of the transactions and restatement of monetary assets and liabilities are recognised in the Statement of Profit and Loss, in respect of forward exchange contract entered, the difference between the forward rate and the exchange rate at the date of the transaction is recognized as income or expense over the life of such contract.

(k) Government Grants:

Government Grants are accounted for when it is reasonably certain that the ultimate collection will be made. The grants in the nature of promoters'. contribution are credited to Capital Reserve.

(l) provisions & Contingent Liabilities:

A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. When there is possible obligation or a brsent obligation in respect of which the likelihood of outflow of resource is remote, no provision or disclosure is made.

(m) Use of estimates :

The brparation of financial statements in conformity with indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent liabilities, at the end of the accounting year and reported amounts of revenue and expenses during the year. Although these estimates are based on the managements knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods

NOTE 1: INITIAL  PUBLIC  OFFER

During the year, the Company has made an initial Public Offer (iPO) for 3,19,18,226 equity shares of Rs.10 each, comprising of 2,19,18,226 fresh issue of equity shares by the Company and 1,00,00,000 equity shares offered for sale by Gujarat Fluoro chemicals Limited (GFL), the holding company. The equity shares were issued at a price of Rs.325 per share (including brmium of Rs.315 per share) subject to discount of Rs.15 per share to the eligible employees of the Company and retail investors. Out of the total proceeds from the iPO of Rs.102,053.45 Lakh, the Company's share is Rs.70,000 Lakh from the fresh issue of 2,19,18,226 equity shares. The total expenses in connection with the iPO are shared between the Company and GFL in the proportion of the amount received from the iPO proceeds. Accordingly amount of Rs.3,222.15 Lakh, being share of the Company in the iPO expenses, is adjusted against the securities brmium account.

Fresh equity shares were allotted by the Company on 30th March 2015 and these shares rank pari-passu with the existing shares. The shares of the Company were listed on the stock exchanges on 9th April 2015.

NOTE 2: CHANGE IN THE ESTIMATE OF USEFUL LIFE OF FIXED ASSETS

a) Company has adopted the useful lives of various fixed assets as specified in Schedule ii of the Companies Act, 2013, with effect from April 1,2014,as against the useful lives adopted earlier as per Schedule XiV to the Companies Act, 1956.The carrying amount of fixed assets, where the remaining useful life as at 1st April 2014 as per Schedule ii is Nil, aggregating to Rs.8.61 Lakh (net of deferred tax credit of Rs.3.15 Lakh), is recognized in the opening balance of retained earnings. Further, the carrying amount of fixed assets as at 1st April 2014 is being debrciated over the revised remaining useful life of the assets. Consequently, debrciation charge for the year is higher by Rs.542.62 Lakh.

(b) in accordance with Accounting Standard (AS) 22:Taxes on income, the deferred tax liability on account of timing difference in debrciation, to the extent reversing during the tax holiday period, is not recognized. Consequent to the above change in the estimated useful life of fixed assets, such timing difference reversing during the tax holiday period is recomputed. Consequently, there is reduction in the deferred tax liability of Rs.130.17 Lakh and the same is included in the amount of deferred tax credit in the Statement of Profit and Loss for the year ended 31st March 2015.

NOTE 3.: In March 2014 a fire broke out in the Company's factory at Rohika, Gujarat The Company had lodged a claim with the insurance company towards the loss on account of fire. The claim lodged with the insurance company included, inter-alia, claim towards loss of materials and fixed assets, expenditure on carrying out repairs and loss of profit During the year ended 31st March 2014, the cost of materials and written down value of fixed assets destroyed in fire was estimated at Rs.2,023.01 Lakh by the management. Pending the settlement of claim, amount of Rs.83.68 Lakh, being estimated amount of reduction in the claim, was charged to the statement of profit and loss as "loss by fire" and the balance amount of Rs.1,939.33 Lakh was included in Rs.insurance claims lodged. in Other current assets. During the current year, after considering the expenditure incurred on repairs to plant and equipment of Rs.648.57 Lakh, repairs to buildings of Rs.455.75 Lakh and other expenses, net of realization from sale of scrap, the amount on account of fire loss stood at Rs.3,021.76 lakhs. The Company has received final settlement claim amount of Rs.2,987.09 Lakh, excluding the claim on account of loss of profit. The loss of Rs.34.67 Lakh on final settlement of the claim is charged to the statement of profit and loss as "loss by fire".

NOTE 4: CONTINGENT LIABILITIES

in respect of VAT matters - Rs.59.09 Lakh (brvious year Rs.93.39 Lakh)  The Company had received Himachal Pradesh VAT orders for the financial years 2012-13 and 2013-14 levying penalty for delayed payment of VAT aggregating to Rs.112.87 Lakh. The Company had filed appeals before the first appellate authority. During the current year, the Company has received appellate order for the year 2013-14 confirming the levy of penalty and the Company is in the process of filing further appeal against the said order. However, the Company has estimated the amount of penalty which may be ultimately sustained at Rs.53.78 and provision for the same is made during the current year. After adjusting the amount of Rs.23.35 Lakh paid against the demands, the balance amount of Rs.30.43 Lakh is carried forward as "Provision for sales tax dispute" in note no. 13.

NOTE 5: COMMITMENTS

(a) Estimated amounts of contracts remaining to be executed on capital account, net of advances - Rs.9,486.70 Lakh (brvious year Rs.1,078.81 Lakh)

(b) Amount of customs duty exemption availed under EPCG Scheme for which export obligations are required to be fulfilled within stipulated period - Rs.1,997.83 Lakh (brvious year Rs.1,212.64 Lakh)

NOTE 6.During the brvious year, the income-tax authorities have carried out survey proceedings u/s 133A of the income-tax Act, 1961 at the CompanyRs.s corporate office and factory brmises.The Company had made detailed submissions on various issues raised during the course of survey proceedings and does not expect any material demand in this connection.

NOTE 7. The Company .s significant leasing arrangements are in respect of operating lease for office / residential brmises. The lease agreements are for a period of 11 to 60 months.The aggregate lease rentals are charged as "Rent"in the Statement of Profit and Loss.

NOTE 8.: The Company is engaged in the business of manufacture of Wind Turbine Generators (Rs.WTGs") and also provides related erection & commissioning services, which is considered as a single business segment. Further, all the activities of the company are in india and hence there is a single geographical segment.

As per our report of even date attached

For patankar & Associates

Chartered Accountants

S S Agrawal

Partner

For Inox Wind Limited

Director

Director

Chief Financial Officer

Company Secretary

Place: Noida

Date. 15th May. 2015