INTERIM UNAUDITED FINANCIAL REPORT AS ON 31st MARCH 2024 (Amount in INR million) 7A Sources IBRD Loan 35,241.29 - 35,241.29 CTF Loan 6,911.37 - 6,911.37 CTF Grant (total upon achievement of all DLI's) 333.89 - 333.89 GEF Grant I- Reserve Fund I Drawdown 717.00 - 717.00 GEF Grant Il - TA Draw dow n 557.96 - -557.96 Uses (i) disbursement of loans according to the criteria set 2,131.83 3.51 31,830.95 out in this OM # (ii) PlU 32.47 5.95 0.00 38.42 (iii) Program advertisement costs, including outreach to aggregators inside and 7.86 - 7.86 outside India (iv) SBICAPS fee for advisory services provided to the Program, including out of pocket expenses up 235.77 - - 235.77 to a level consistent with market norms (v) training and capacity building of all key 0,07 -- 0.07 stakeholders ( CTF GRANT) (v) a. training and capacity building of all key 482.40 482.0 stakeholders ( GEF GRANT) c- (vi) engagement of key staff required to operate the Program, various consultancies, dissemination materials, and operating costs (vii) capitalization of a loss- offsetting fund (also referred to interchangeably as "guarantee facility for non-performing loans") (viii) audit fee, legal fee and independent verification 7.36 0.52 0.73 8.61 agent (lVA) charges (ix) incentive to staff 8.52 - 8.52 Balances at the end of Balance as on 30.09.2023 Balance as on 31.03.2024 semester IBRD loan - "WB Fund - Amount to be disbursed account" 14,745.23 10,321.72 CTF loan - "WB Fund - Amount to be disbursed account" CTF Grant- GRPV WB- Expenditure 35.37 34.64 GEF Grant I-GRPV WB- Reserve Fund 717.00 717.00 GEF Grant I1 - GRPV'WB- TA 75.56 75.56 Notes to IUFR: 1. The PDO is to increase installed capacity of GRPV and to strengthen the capacity of relevant institutions for GRPV. The Program Environmental Objective (PEO) is to achieve reduction in GHG emission through the displacement of thermal energy with solar energy. 2. The overall legal framework for the project is provided in the Loan Agreements 8611-IN, TFOA2401 and Grant no. TF0A3753 dated June 30, 2016 and Grant no. A2023 dated January 19, 2017 and Operations Manual (OM) of the GRID CONNECTED ROOFTOP SOLAR PROGRAM. &DIA C~ 3. The project results areas include: 1 - Strengthening Institutional Capacity for GC- RSPV, 2 - Market Development of GC-RSPV, 3 - Expanding GC-RSPV generation with the program expenditure covering (i) disbursement of loans according to the criteria set out in this OM; (ii) Program establishment and operating costs including PIU costs; (iii) Program advertisement costs, including outreach to aggregators inside and outside India; (iv) SBICAPS fee for advisory services provided to the Program, including out of pocket expenses up to a level consistent with market norms; (v) training and capacity building of all key stakeholders; (vi) engagement of key staff required to operate the Program, various consultancies, dissemination materials, and operating costs; (vii) capitalization of a loss-offsetting fund (also referred to interchangeably as "guarantee facility for non-performing loans") (viii) audit fee, legal fee and independent verification agent (IVA) charges; and (ix) incentive to staff etc. 4. As provided in the OM, The Program Audited Financial Statements will include (a) IUFR for the Second Semester and (b) any other statement agreed with WB. 5. Basis of accounting: Cash Basis. ESG & Climate Finance Unit ro j,APatvush Mehrotra) Corporate Centre, Mumbai Deputy General Manager (PIU) Date:14.06.2024 CFU 3 SBI The banker to every Raju and Prasad, Chartered Accountants, 511, The Corporate Centre, Nirmal Lifestyle Mall, LBS Marg, Mulund West Mumbai- 400080 Letter No: ESG & CFUlWB/DK/45 Date: 03.12.2024 Dear Sir, This representation letter is provided in connection with your audit of the financial statements of the Grid Connected Rooftop Solar PV Program for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the financial position of the Program as of 31.03.2024 and of the sources and uses of funds for the year then ended. We acknowledge our responsibility for the fair presentation of the financial statements in accordance with the National Accounting Standards as issued by Institute of Chartered Accountants of India, and notified by the Government of India, and we confirm, to the best of our knowledge and belief, the following representations made to you during your audit: 1. The project financial statements are free of material misstatements, including omissions. 2. Program funds have been used for the purposes for which they were provided. 3. Program expenditures are eligible for financing under the relevant legal/ financing agreements. 4. There have been no irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the Program financial statements. 5. Procurement has been done as per the agreed procedures and were made available to audit all procurement documents relating to the Program. 6. We had made available to audit all books of account and supporting documentation relating to the Program. 7. The Program has complied with the conditions of all relevant legal agreements, Project Appraisal Document, the Minutes of Negotiations and Operations Manual. Yours faithfully, mfyratyush Mehrotra) Deputy General Manager (CF-Assets) ESG & Climate Finance Unit tw*taPr qFi fm T7l 7g f A-Twfmz1f rTw ESG & Clima~te Fina~nce U nit S+9122 2280 1417 9-a1 q7O¶77, ,T T 8$. 1 c 81, Corporate Centre.1st Floor yono S cqrn.esgcfuQasbi.con A ; 4 T EtT ER8 8T8P7 C Wing, Mittal Tower, O I0 40021 1 Narimu a Point. OS IT- 40002 2-4002 1, -qr7 Murnbai -400021 Raju and Prosad Chartered Accountants Independent Auditor's Report To, Deputy General Manager, ESG & Climate Finance Unit State Bank of India. Mumbai. Report on the Audit of the Project Financial Statements Opinion We have audited the accompanying special purpose financial statements of Grid Connected Rooftop Solar PV Program financed by the World Bank under Loan 8611-IN, TF0A2401 and Grant no. s A2023 and TF0A3753 and implemented by State Bank of India ("SBI" or Bank).These financial statements comprise of the Program Financial Statement as at 31st March, 2024, and notes to these financial statements, including a summary of significant accounting policies (collectively referred to as the "Project Financial Statements"). In our opinion the aforesaid special purpose Project Financial Statements give a true and fair view of the financial position of the Project as at March 31, 2024, receipts and disbursements of the Project for the year ended on March 31, 2024 and the expenditure of the Project for the year ended on March 31, 2024, in accordance with the financial reporting provisions of Section 5.09 of the General Conditions of the World Bank read with the Loan Agreements 8611-IN, TF0A2401 and Grant no. TF0A3753 dated June 30, 2016 and A2023 and Grant no. A2023 dated January 19, 2017. Basis for Opinion We conducted our audit in accordance with the Standards on Auditing issued by Institute of Chartered Accountants of India (ICAI). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the implementing agency in accordance with the ICAI's Code of Ethics for undertaking this assignment and we have fulfilled our ethical responsibilities in accordance with ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Financial statements may not be suitable for another purpose Our opinion is not modified in respect of this matter. Emphasis of Matter The PFS is prepared to assist the State Bank of India to meet the financial reporting requirements of the Project's Loan Agreements for Loans 8611-IN, TFOA2401 and Grant no's A2023 and TF0A3753 for Investment Project Financing dated 31st March, 2024 in respect of preparation of the Project Financial Statements in a manner to reflect the operations, resources and expenditures related to the Project. As a result, these special purpose financial statements may not be suitable for another purpose. Our opinion is not odified in respect of this matter. 1, The Corporate Centre, Nirmal Lifestyle Mall, LBS Rd, Mulund (W), Mumbai- 400080; Tel: 022-46191257/35218456 Mobile: 9324087338; Website: www.rajuandprasad.com; Email: mumbai@rajuandprasad.com HEAD OFFICE: Hyderabad BRANCHES: Bengaluru Tirupati Thane Chennai Raju and Prasad Chartered Accountants Responsibilities of Management and those charged with Governance for the Project Financial Statements The Management of the implementing agency is responsible for the preparation and fair presentation of the Project Financial Statements in accordance with the financial reporting framework described in the Notes to these financial statements, and for such internal control as management determines is necessary to enable the preparation of Project Financial Statements that are free from material misstatement, whether due to fraud or error. The Management and those charged with governance are responsible for overseeing the implementing agency's financial reporting process. Auditor's Responsibilities for the Audit of the Project Financial Statements Our objectives are to obtain reasonable assurance about whether the Project Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 the Standards of Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Standard of Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the Project 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the Project Financial Statements, including the disclosures and whether these financial statements present the Project's operations and underlying transactions and events in a manner that achieves fair presentation in accordance with the financial reporting provisions described in Notes to the Project Financial Statements. * 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. * 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. Chartered Accountants Other Matter The implementing agency, State Bank of India, has prepared a separate set of entity financial statements for the year ended March 31, 2024 on which the independent auditors have issued a separate auditor's report to the President of India (majority Shareholder) dated March 31, 2024 and expressed an unmodified audit opinion. Report on Other Legal and Regulatory Requirements Further to our opinion on the Project Financial Statements we further report that: a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b. in our opinion, proper books of accounts have been kept by the implementing agency for Project purposes so far as appears from our examination of those books; c. the Project Financial Statements dealt with by this report is in agreement with the books of accounts; d. the Project funds were utilized for the purposes for which they were provided; e. expenditures, including assets created under the Project, shown in the PFS are eligible for financing under the Project Financing Agreements; f. Annual Financial Reports (AFR) for FY 2023-24 submitted by the Project management can be relied upon to support applications for withdrawal of the Loan, and adequate supporting documentation has been maintained to support these claims; g. Procurement has been carried out in line with the agreed procedures as detailed in the Operations Manual/Procurement Manual/Project Implementation Plan/Legal Agreements; and h. The Project has an adequate internal financial control system (including IT controls) and such controls were operating effectively as at March 31, 2024 and the Project complies with the provisions on financial management contained in the Operations Manual/Project Implementation Plan/ Financial Management Manual, in all material aspects. For Raju and Prasad Chartered Accountants Firm Registration No: 003475 S Avinash T Jain Partner Membership No: 041689 Place Mumbai Date : 13th June, 2024 UDIN : 24041689BKALKG9176 INTERIM UNAUDITED FINANCIAL REPORT AS ON 31st MARCH 2024 (Amount in INR million) Sources IBRD Loan 35,241.29 - 35,241.29 CTF Loan 6,911.37 - 6,911.37 CTF Grant (total upon achievement of all DLI's) 333.89 } -_ 333.89 GEF Grant 1- Reserve Fund Drawdown 717.00 717.00 GEF Grant II -TA Drawdown 557.96 - - 557.96 Uses (i) disbursement of loans according to the criteria set 25,275.61 2,131.83 4,423.51 31,830.95 out in this OM # (ii) Plu 32.47 5.95 0.00 38.42 (iii) Program advertisement costs, including outreach to aggregators inside and 7.86 - 7.86 outside India (iv) SBICAPS fee for advisory services provided to the Program, including out of pocket expenses up 235.77 - 235.77 to a level consistent with market norms (v) training and capacity building of all key 0.07 0.07 stakeholders ( CTF GRANT) (v) a. training and capacity building of all key 482.40 482.40 stakeholders (GEF GRANT) (vi) engagement of key staff required to operate the Program, various consultancies, dissemination materials, and operating costs (vii) capitalization of a loss- offsetting fund (also referred to interchangeably as "guarantee facility for non-performing loans") (viii) audit fee, legal fee and independent verification 7.36 0.52 0.73 8.61 agent (IVA) charges (ix) incentive to staff 8.52 Balances at the end of Balance as on 30.09.2023 Balance as on 31.03.2024 semester IBRD loan - "WB Fund - Amount to be disbursed account" CTF loan - "WB Fund - 14,745.23 10,321.72 Amount to be disbursed account" CTF Grant - GRPV WB- Expenditure 35.37 34.64 GEF Grant I-GRPV WB- Reserve Fund 717.00 717.00 GEF Grant II- GRPV WB- TA 75.56 75.56 Notes to IUFR: 1. The PDO is to increase installed capacity of GRPV and to strengthen the capacity of relevant institutions for GRPV. The Program Environmental Objective (PEO) is to achieve reduction in GHG emission through the displacement of thermal energy with solar energy. 2. The overall legal framework for the project is provided in the Loan Agreements 8611-IN, TFOA2401 and Grant no. TF0A3753 dated June 30, 2016 and Grant no. A2023 dated January 19, 2017 and Operations Manual (OM) of the GRID CONNECTED ROOFTOP SOLAR PROGRAM. 2 3. The project results areas include: 1 - Strengthening Institutional Capacity for GC- RSPV, 2 - Market Development of GC-RSPV, 3 - Expanding GC-RSPV generation with the program expenditure covering (i) disbursement of loans according to the criteria set out in this OM; (ii) Program establishment and operating costs including PIU costs; (iii) Program advertisement costs, including outreach to aggregators inside and outside India; (iv) SBICAPS fee for advisory services provided to the Program, including out of pocket expenses up to a level consistent with market norms; (v) training and capacity building of all key stakeholders; (vi) engagement of key staff required to operate the Program, various consultancies, dissemination materials, and operating costs; (vii) capitalization of a loss-offsetting fund (also referred to interchangeably as "guarantee facility for non-performing loans") (viii) audit fee, legal fee and independent verification agent (IVA) charges; and (ix) incentive to staff etc. 4. As provided in the OM, The Program Audited Financial Statements will include (a) IUFR for the Second Semester and (b) any other statement agreed with WB. 5. Basis of accounting: Cash Basis. ESG & Climate Finance Unit (Pratyush Mehrotra) Corporate Centre, Mumbai Deputy General Manager (PIU) Date: