SJVN : Statement of Financial Position FY - 2024-25 - SJVN Green Energy Limited

D.L.DUGGAL & CO

Chartered Accountants

llevised Independent Auditor's Keport

To The Members

M/S SJVN Green Energy Limited

Report on the Audit of the Standalone Financial Statements

This report is in super session to our earlier Report dated May 22, 2025. The report is revised based on the audit observations raised by C&AG Audit during the course of supplementary Audit. There is no change in opinion as given in our earlier report dated May 22, 2025 Opinion

A c have audited the accompanying Standalone financial statements of M/s SJVN €ireen Energy Limited ("the Company"), which comprise the balance sheet as at 31 March 2025. anal the statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flovrs for the year then ended, and notes to the Standalone financial statements, including a summary of material accounting policies and other explanator} information.

In our opinion and to the best of our information and accorcling to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("Act') in the manner so required and give a true and fair view in conformity w•ith the accounting princi}a1es generally acceptecJ in India and Indian Accounting Standards

F°e"cribed under section 1.33 of the Act reac4 with conipaiues(Incit.an Accounting Sfand.ords)

Rules 2015,as amenc5ed, (Ind AS) and other accounting principles generally accepted in India

of the state of affairs financial position) of the company as at March 31, 202a and its profit and

loss ( financial performance including other' comprehensive income),change in equity dnd its

Basis for Opinion

We conducted our audit of the standalone financial statements in accorcJance

of

with the Standarcts on ng sp

14.?{10) the Companies .Act,

201?. Our responsibilities under those Standards ai'e further describecl in the

our report. We are indepencâent 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 auclit of the stanclalone financial statements under the provisions of the Act anlt the Pxules made there under, anal w e have fulfilled our other ethical responsibilities in accordance with these requirements anal the ICAI's Code of Ethics. We believe that the audit evidence we leave

HEAD OFFICF:- FLAT NO . 401, MYST A APARTMENT , NEAR SECTOR -3 BUS S"FAND . SECTOR -3 NEW SHPM LA , H.P. t71009 Moh: - 981 10283 T9, 981503 J 297

BRANCH OFFICE :- 204, EXPRESS ARCAOE H -10, NETA JI SUBASH PLACE, PITA 1 -110034

oL›toined 1s sufficient ‹rind a Fropriofe to provide o banis for our opinion on the standalone financial statements.

Emphasis of Matter:

Ye di'aw attention to the following matters:

Note No.2.37 , As per lnd AS 36 and in the opinion Of the management, an assessment of impairment of' assets was carried out and based on such assessment , the company has recognized impainrent losses of Rs. 14346 Lakh (PY:N IL) in respect of tollowing renewable projects during the year:

1. In respect of Parasan SPP 75 MW impairment loss of Rs.5129 Lakh (PY:NIL) has been recognised under the depreciation , amortisation and impairment expenses in the statement of profit and loss. The reco›•erable amount of Cash Generating Units (CGU is ›°alue in use 3nd has been assessed at Rs.29814 Lakh. The carrying amount of the CGU is Rs.34f?4o Lakh.

2. In respect of Giirhah SPP 75 M W impairment loss ot' Rs.5307 Lakh (PY:NIL) has been recognised under the depi eciation , amortisation and impairment expenses in the statement of profit and loss. The recovei'able amount of Cash Generattng 1.1ii its(VG U) is ›-a1iie in use and has been assessed at Rs.34 72a L.tkh. The curi} ing ‹amount of' the Clit? is ks.40032 Lakh.

3. In resPect ot" Grijiai SPP 50 MW imPairinent loss of Rs.3320 Lakh (PY:N1L) has been recognised under the depreciation . amortisation and irripai rmeni expenses in the stateiiieni of profit and loss. The recov erablc aiiiount of ('ash £lenerating L nits (CGL) is vat ue in use

and has been assessed at Rs.23944 Lakh. The cary'ing amount of the CC U is Rs.27264 I.al‹h.

i») In respect ot" Ragiianesda SPP 100 MW in pairnl ent loss of Rs.590 1.11a (PY:NIL) has been recognised under the depreciation , amortisation and impairment expenses in the statement o1" profit and loss. The recoverable amount of Cash Generating Units (CG L ) is value in use and has been assessed at Rs.57867 Lakh. The carry ing amount ot" the C(iL is Rs. 58457 Lakh.

1. Dtn ing F.Y. 2024-25. the company has car ried out impairment of' Generating Plant & Machinery in respect of the above projects.

2. 3"he impairment has been carried out due to -

   1. underperfoi mance of Generating Plant & Machines' in ielation to its anticipated performance.

   2. Comparison o1" › alue in use vis-a-vis the carr; inc value ot' the cash generating unit as pcr the applicable fNDAS.

Our opinion is not modified) in respect of these matters.

Key Audit Matters

Ke}' ambit matters ni'e these matters ham, in c›ui' {Professional judgment, were of most Significance in our audit of the Standalone financial Statements of the current period. These matters were addressecl in the context of c›ur audit of the Standalone FinancialStatements as a whole, and in forming our opinion thereon and we do not pro ids a separate opinion on these

for each matter me-four, d£•sCNption of hovr our audit addressed the matter is provided in that context. be have tletermined the matters described below to be the key audit matter's to be communicatec4 in our report. The below mentionec4 ke} auciit matters pei'toins to Hol‹ting Company, ‹us other auditor of the units ( w'hose teport is furnishec5 to us by the management have not given any key audit matter' in his report.

S. No.	Key Audit Matter How our audit addressed the Key Audit Matter
	Contingent Liabilities and provisions: litigation pending against the company and the management's judgement is rec(uired for estimating the omoiiiat tt› be disclosed is contingent liability and for creating the adec(uate amount of provision, wherever i'equii"ecL We identified this as a key audit matter lrecause the estimates on which these amr›iints are leased involve a significant clegree of management jucigemetit in inter refjng the cases and it mdy be subject to management bias. (Refer Note No. 2.31 to the Standalone Financial Statements, read with the Xlaterial Accounting Policies Yo. 1. IG)	\'e have c›bta inert an unclerstanding r›f the compan}'s internaJ instri cti ons anal {procedures in respect of estimation and clisclosure cf contingent liabilities arch adopted the lollpw ink audit pi'ocectures:- un‹5e•rstooc4 ance testec5 the design and) operating effectiveness of confi ols as establishecl by the management for obtaining a)J relevant information for pending litigation cases; cliscussecJ with the management an) material vievelopmeiats and latest st.itus of Mega) matter s; examined management's JUdgeinents arcl assessments whether prt›v isions are rec{uirev4; considerecl the management assessments of those matter's that are not ‹tiscJosed as the probability of material outflow is considered to be reinr›te; reviewed the adec(uacy anal completeness c›f clisclosui es; Basest on the above proceclurcs

		performed, the estimation and disclosures of contingent liabilities and creation of pi ovisions are considereci to be adequate and reasonable wherever necessary.
2	Property, Plant & Equipment:	We assessed the contreble in place over the fixec4 asset cycle, evaluated the appropriateness of capitalization prt›cess Pcrfr›rmed tests of cietails on costs capitalised, the timeliness and accurac} of the capitalisation t f the assets and the cfc-recognition criteria for assets retired from active use. In performing these procedures, we reviewed the judgements macie l^s• management including the nature of underlving costs capitalise); determination of realizable value of the assets i'etired from active use; the a[opropriafeness o/ asset lives appliecJ in the calculation of depreciation; the useful lives of assets prescribed in schei3 ale II r›f the Companies Act, 2013 and the useful lives of certain assets as per the technical assessrrhrnt of flue management. A'e have observed that the management has regttlarl} review ed the .aforesaid juc4gernents anci there are no material deficiencies in measurement recognition of } rc›jaexty plant and equipment.
	There are areas where management
	judgc•iiienf impacts the car ryjng i o)iic ct
	property plant and equipment ance their
	respective depreciation rates. These
	include the c5ecisit›ii to capitalize or
	expense coSt9; the aruaual asset life
	review; the timeliness of the
	capitalisation of assets and the use ‹at
	management assumptions and estimates
	for the cietermination c›r the
	measurement and recognition criteria
	for assets retired front active use. Due to
	the materiality in the context of the
	balance sheet of the company and the level of judgement and <•stimates
	required, w e consirler this to be as area
	of significance,
	(Refer Note No. 2.1 to the Stic4alone
	Financial Statements. react with the
	Material Accounting Policies No. 1.?)
	Capital work-in-progress {CWIP):	We performed an understanding and evaluation of the system of internal coiitrt›l r»'ei' the capitol woi'k-in-prc›gress, with reference to ic4entifico tion and testing of ke cr›nti ols. Vhen it is ready for the intendecl use, we assessed the progress of the project and the intention and abili of the management to carr} forward and bring the asset to its state of intendeci use.
	The company is invol› ed in various
	capital works like construction of new'
	powder projects, installation of new plant
	ance machinery, ci •il n'orks elf. 3 hese
	projects/ works take a substantial period of time to get rcacly' for' iiitencled use er 2
	due tta their materiality in the context of
	the balance sheet of the company, this is
	considererl to be on area which had the
	significant effect on the overall arc4it
	strategy anal allocation of resources in
	¿Planning and completing our audit.
	(Refer Note No. 2.2 to the Stanctalone

	Financial Statements, react with the Material Accounting Policies ño. 1.4)	tY'e assesseci the timeliness and accuracy of capita lisahon of assets when it is ready for the intended use.
4	Recoverability of carrying value of property plant arid equipment: As at 31st March 2025, the Company had significant amounts of property, plant and equipment, and capital vVork in progress under deve1o{ament which mere carriec3 at historical c‹est less depreciation. Ve focused out efforts on the Cash Generating Unit ( CGV " ) at (a) Parasan Solar Power Plant; (b) Gur‹lh S›olar l'oiver Plant;(c) G ujrai Scalar Power Plant;f‹l) Raghanesda 104 1vIV is it had identified impairment (charge) / reversal inviica tors. Recoverabilit• of property plant and equipment anc4 capib‹ll h*CR'k iN progress being carried at cost has been identifJe‹5 as a key audit matter due to: The significance of the carrying value of assets being assessed. The fact that the assessment of the recoverable amount of the Company " s SGU involves significant judgements about the future cash flow forecas ts, scarf AnIe of the plant and the discount rate float is ‹applied. Refer' Note No. 2.1 & 2.2 to the Standalone Financial Statements, read with the fi4aterial Accounting Policy No. I.3 & 4.4 )	Our anti it prc›cedu res included the O§OMlR@: + Ot›tained and read the Company 's policies, Jriocesses and procedures in respect or ic5entification of impairment inc4ic‹afors, recording anal discI‹asure of im¿›airment charge/ (reversal) and identified r 1S. For selectec4 'o ;trOl' » Assesses) through an analysis of internal end external factors impacting the Company, whether there were any indicators of impairment in line with Inch AS 36. + In relation to the BGU a) Parasan Solar Power Plant; (la) Gurah Solar Power Plant;(c) Gujrai Solar Power Plant; d) Our ah Solar Ppwer Plant; e) Raghanesda 100 S(!N SPP «there impairment (charge) / revei'sa1 obtairieci nn‹I evaluated) the valuation nickels met) to determine the recoverable a umum by assessing the key assumptions ascot by management, which Evaluated the valuation methodology adopte‹J be the mean.agement i.e, determination of V'alue-in-Use in lighf of the facts and circumstances of the matter. Assessed management's forecasting accuracy by comparing prior year fc›recasfs to actual results ance assessec1 the poieni5al