WindForce : Annual Report for the year ended 31 March 2024

WINDFORCE PLC

ANNUAL REPORT 2023/24

LIGHT TO

LIFE

While the nation sought cleaner and greener ways

to develop power, we sought out the opportunities to be the most e昀케cient provider of these needs with the advent of progressive legislation. While

concentrating on our energy projects in the year

under review we looked at actively developing new infrastructure in the form of a 100 MegaWatt

solar power plant and more, in meeting the demands of the years ahead. As we work together

in order to achieve sustainable and organic goals, ones that will enhance and empower the future, we will continue this impetus of progression,

propelled by our values and intrepid nature, and guided by the principles of environmental, social, and corporate governance. From light to life,

we continue to invest in succeeding generations through the regenerative and renewable power of nature.

AT WINDFORCE PLC, WE DEVELOP STATE-OF-THE ART RENEWABLE ENERGY PLANTS THAT MEET INTERNATIONAL STANDARDS. WITH OUR COMMITMENT TO SUSTAINABILITY, WE PROVIDE ECO FRIENDLY ENERGY THAT BENEFITS OUR INVESTORS AND SATISFIES THE EVER-INCREASING NEED FOR ENERGY.

We manage the complete lifecycle of renewable energy projects, including feasibility studies, design, construction, commissioning, operation and maintenance. The ultimate goal is to provide

a sustainable future for generations to come, by producing

a昀昀ordable, dependable, emission-free electricity that powers

homes and businesses, whilst supporting the national energy policy and strategy.

CONTENTS

Organisation Overview

About Us 4

• Report Pro昀椀le 6
  Group Structure 8
• Our Presence in the Value Chain 10

Our Social and Economic Impact 11

Plants/Projects 12

Milestones 32

Financial Highlights 34

Non-Financial Highlights 36

Leadership

Chairman's Message 38

Managing Director's Message 40

Board of Directors 44

Corporate Management 48

The Strategic Report Our Business Model 52 Responding to Our Stakeholders 54 Operating Environment 57

Our Strategy 60

Integrating Sustainability 62 Materiality 65

Review of Business Operations

Wind 70

Solar 72

Hydro 74

Automobile 75

The Capital Reports

Financial Capital 77

Social and Relationship Capital 82

Human Capital 91

Intellectual Capital 101

Manufactured Capital 106

Natural Capital 110

Stewardship

Corporate Governance 118

Risk Management 141

Annual Report of the Board of Directors on the A昀昀airs of the Company 144

Board of Directors' Statement on Internal Controls 148Statement of Directors' Responsibility on

Financial Reporting 149

Report of the Audit Committee 150

Report of the Remuneration Committee 151Report of the Related Party Transactions Review Committee 152

Managing Director's, Chief Executive O昀케cer's and Chief Financial O昀케cer's Responsibility Statement 153

Financial Reports Financial Calendar 154 Independent Auditors' Report 155 Statement of Pro昀椀t or Loss 158 Statement of Comprehensive Income 159 Statement of Financial Position 160 Statement of Changes in Equity 162 Statement of Cash Flows 163

Notes to the Financial Statements 164

Supplementary Information

Five Year Summary 221

Investor Information 222

GRI Content Index 225

SASB Indices 234

Corporate Information 235

Notice of Annual General Meeting 236

Notes 238

Form of Proxy 239

CHAIRMAN'S	OPERATING	CORPORATE
38 MESSAGE	57ENVIRONMENT	118GOVERNANCE
	INDEPENDENT
RISK	AUDITOR'S	FIVE YEAR
141MANAGEMENT	155REPORT	221SUMMARY

WindForce Website

WindForce Instagram

WindForce Facebook

WindForce LinkedIn

ABOUT US

WindForce PLC

Annual Report 2023/24

4

GRI 2-1

Established in July 2010, WindForce PLC was formed to spearhead and oversee all facets of renewable energy production. Through our strategic investments in renewable energy initiatives, we have become the largest renewable energy power producer in Sri Lanka with a global presence. Our expertise spans every stage of the life cycle of a power project. We excel in conducting feasibility studies,

overseeing design and engineering processes, managing procurement, construction, commissioning, as well as ensuring the seamless operation and maintenance of power plants. This comprehensive approach enables us to be involved throughout the entire life cycle of a power project.

LEADING		245 MW		60%
Leading Renewable Energy Producer		Installed Capacity		of Our Installed Capcity is Based in Sri Lanka
Engineers Accredited by the				Manage the Entire
	RS. 16.58 (USD CENTS 5.43)		O&M
RISO CAMPUS OF DTU		Our Average Selling Price to CEB
		of the Plants

5.85 Bn.	Rs. 38 Bn.
Revenue	Assets

190	30	408,209 MT
Employees	Power Plants	CO2 Emission Saved

1.75 Bn.

PAT

VISION

To pioneer and spearhead the growth of renewable energy in Sri Lanka and progress into overseas markets with the use of cutting-edge technology and energy-e昀케cient

renewable energy plants that are socially, 昀椀nancially and legally sustainable to our investors in the long run.

MISSION

To hold our position as the largest contributor to Sri Lanka's renewable energy by investing in viable, eco-friendly and state-of-the-art renewable energy power

plants and to venture beyond our shores

and become prominent players in the global market.

WindForce PLC

Annual Report 2023/24

5

OUR PRESENCE

As the largest renewable energy developer in Sri Lanka with a global presence, our portfolio comprises 8 wind power plants, 12 solar power plants, and 10 mini hydropower plants in Sri Lanka and overseas as indicated below.

Ukraine

9 MW

Pakistan

68 MW

Uganda
10 MW
10.3 MW	Sri Lanka
	84.2 MW
	47.6 MW
	16 MW

Solar Power Plants

Wind Power Plants

Hydro Power Plants

WIND

SOLAR

HYDRO

~ Pioneer & Leading Wind Power	~ Pioneer of Agrivoltaic Plants in
Producer in Sri Lanka	Sri Lanka
~ 8 Wind Power Plants in Operation	~ 12 Solar Power Plants across the
~ Annual CO2 Emission Saving -	Globe
157,866 MT	~ Saved 171,066 MT of
	CO2 Emissions

• 10 Small Hydro Power Plants
• Saved an Estimated 79,277 MT of CO2 Emission

ABOUT US CONTD.	WindForce PLC
	Annual Report 2023/24
GRI 2-3	6
REPORT PROFILE

This is the fourth Annual Integrated Report of WindForce PLC which provides a balanced account of the performance during the financial year ending 31 March 2024. In preparing this report

we have substantiated our statements

with evidence where necessary, drawing from reliable sources of information. Our ongoing commitment to improving readability is evident in our exploration of enhancements, highlighting material matters, and building on the Annual Integrated Report for the year ending

31 March 2024 which is the most recent report preceding the publication of this report.

Improvements to Our Report

~ The SASB Standard on Electric Utilities

& Power Generators has been adopted.

~ All GRI and SASB requirements

were tagged for easy search and

identification.

~ The process for determining

materiality matters was modified to

cover material topics from GRI and

SASB standards and our business

priorities.

Standards and Frameworks

The following reporting requirements

were launched during the year under review:

• A new Listing Rule #9 of Corporate Governance was issued in August 2023 by the Colombo Stock Exchange
• Launch of Code of Best Practice on Corporate Governance by the Institute of Chartered Accountants of Sri Lanka in December 2023.
  We have complied with the provisions of the Listing Rule 9 that needed to be complied with as of 1 April 2024. Compliance with the Code is given on pages 126 to 137 of the report.

Risk and Governance Reporting

• Colombo Stock Exchange Listing Rules
• Code of Best Practice on Corporate Governance issued jointly by the Institute of Chartered Accountants of Sri Lanka (ICASL) and Securities and Exchange Commission of Sri Lanka (SEC)

Integrating ESG to Facilitate

Integrated Thinking

Taking on the challenge of GRI reporting four years ago, our organisation processes have evolved to integrate non-financial information into the reports used for monitoring performance at every

level, from the factory to the Board. These are affirmed by certifications on

environmental and social responsibility which serve to enhance management of these topics whilst also facilitating access to markets. All these services embed ESG principles into our organisational

processes, providing deeper insights

into our impacts on society and the environment and stakeholder concerns. These insights facilitate holistic decision-

making through integrated thinking, optimising the efficient allocation of finite resources. This information also feeds

into our risk management processes enabling evaluation of potential threats

and opportunities which are critical for resource allocation decisions to

deliver progress on strategic goals and strengthen the resilience of the Group.

~ Currently in the process of refining our

ESG disclosures to align with the new

reporting guidelines introduced since

our last report.

Scope and Boundary

GRI 2-2

The boundaries for reporting financial and non-financial information have been aligned and refer to information regarding the WindForce Group unless specifically stated otherwise. The report outlines our core business as a producer of renewable energy and covers the Group's operations in Sri Lanka, Pakistan, Uganda and Ukraine. The non-financial information of equity-accounted investees has been aggregated in total. Please refer to the group structure on page 8.

Reporting Principles

• Framework 2021 issued by the International Integrated Reporting Council
• GRI Standards issued by the Global Reporting Initiative in 2021
• The Companies Act No. 7 of 2007
• Sri Lanka Accounting Standards issued by the Institute of Chartered Accountants of Sri Lanka

Sustainability Reporting

• Global Reporting Initiative (GRI) Standards
• UN Sustainable Development Goals
• Sustainability Accounting Standrds Board (SASB)

Assurance

GRI 2-5

Assurance on Financial Statements has been provided by Messrs Ernst & Young and their report is set out on page 155.

WindForce PLC

Annual Report 2023/24

7

Connectivity of Information

The connectivity of information has been improved by the use of the following icons throughout the report.

The Capitals

Financial Capital

Human Capital

Intellectual Capital

Natural Capital

Social & Relationship Capital

Manufactured Capital

Stakeholders

Customers

Employees

Business Partners

Government & Regulators

Communities

Investors

Strategy

Progressive Growth

A Great Place to Work

Contribution to the National Development Agenda

Operational Excellence

Significant Changes During the Year & Restatements

GRI 2-4

There were no significant changes requiring restatements of financial or sustainability information during the reporting period.

Forward-Looking Statements

The report contains forward-looking statements derived from current perceptions, opinions, and both external and internal information available to us. These statements are provided

to facilitate the assessment of the future performance of the Group, yet

they inherently carry varying degrees of uncertainty. The accuracy of these

statements can be ascertained only in hindsight, as they relate to future events,

outcomes and impacts which are beyond our control. Sri Lanka's economic

recovery is underway amid ongoing high geopolitical risks. Therefore, the external operating environment remains

unpredictable, prompting readers to use the latest information to assess forward- looking statements and to exercise their own judgment. This information is

provided without recourse or any liability whatsoever to the Board or other preparers of the Annual Report owing to the inherent high levels of uncertainty surrounding the information presented.

Feedback & Inquiries

GRI 2-3

We welcome any questions, clarifications, and feedback on this report: For Inquiries, contact:

[e-mail] (Chief Executive Officer)

Acknowledgement

The Annual Report has been prepared by the Senior Management of the Group on behalf of the Board of Directors. Senior Management has used internal and external resources in compiling this report to enhance the presentation and readability of the report.

The Annual Report of the Board of Directors includes an acknowledgement of the Directors' responsibilities with regard to the Annual Report. The Board of Directors acknowledge their responsibility to ensure the integrity of the Integrated Report and are of the opinion that the Integrated Annual Report of WindForce PLC for the financial year ending 31 March 2024 is presented in accordance with the Framework 2022.

Ranil Pathirana	Dilshan Hettiaratchi	Lasith Wimalasena
Chairman	Chairman	Chief Executive Officer
Board of Directors	Audit Committee	WindForce PLC
This report is available online at	This report is available
www.windforce.lk		online at www.cse.lk

ABOUT US CONTD.

GROUP STRUCTURE

Subsidiaries

WindForce PLC Annual Report 2023/24

8

100%

100%

100%

100%

Renewgen

Seguwantivu Wind Power

Vidatamunai Wind Power

Powergen Lanka (Pvt)

(Pvt) Limited

(Pvt) Limited

(Pvt) Limited

Limited

95.83%		100%		90%		90%
Daily Life Renewable Energy		Hiruras Power		Sunny Clime Lanka		Seruwawila Photovoltaic
(Pvt) Ltd		(Pvt) Ltd		(Pvt) Ltd.		(Pvt) Ltd.

66%		88%		88.50%		100%
Hirujanani		Suryadhanavi		Kebitigollewa Solar Power		SKY Solar
(Pvt) Ltd'		(Pvt) Ltd		(Private) Ltd		(Pvt) Ltd

80%		100%		80%		90%
Tororo Pv Power		Energy Reclamation		Satva Automotive		BlueSky EV
(Pvt) Ltd.		(Pvt) Limited		(Pvt) Ltd.		(Pvt) Ltd.

Holding Company