Azure Power Global : (Unaudited) Financials for period ending March 2022

Azure Power Solar Energy Private Limited and Restricted Group

Azure Power (the "Company") is filing unaudited annual results for fiscal year ended March 31, 2022 of Azure Power Solar Energy Private Limited and Restricted Group entities (collectively referred as Restricted Group-II).

The Company will file audited annual results for fiscal year ended March 31, 2022 of Restricted Group-II as soon as practicable upon filing its annual report on Form 20-F for fiscal year ended March 31, 2022 with the U.S. Securities and Exchange Commission.

Our audited financial statements of Restricted Group-II when adopted and filed with the Singapore Stock Exchange may include differences from the attached unaudited numbers and will include detailed notes and other disclosures that will be important to evaluate. The financial information provided attached file should be read in conjunction with such audited financial statements for Fiscal 2022 when they become available as well as the Company's annual report on Form 20-F for fiscal year ended March 31, 2022 when filed with the U.S. Securities and Exchange Commission and other filings that the Company may make with Singapore Exchange and/or the U.S. Securities and Exchange Commission on Form 6-K from time to time.

Restricted Group - II

Unaudited Special Purpose Combined Balance Sheet (All amount in INR millions, unless otherwise stated)

				As at			As at
				'March 31, 2022 March 31, 2021
Particulars		Notes		(Unaudited)			(Audited)
Assets
Non-current assets
Property, plant and equipment	5	31,429	33,215
Right-of-use assets	30	748	780
Capital work-in-progress	5	136	63
Financial assets
- Investments	6.1	221	221
- Trade receivables	6.2	135	-
- Loans	6.3	1,039	493
- Other financial assets	6.4	2,129	782
Deferred tax assets (net)	18.2	306	314
Income tax assets (net)	7	34	14
Other non-current assets	8		315			463
Total non-current assets				36,492			36,345
Current assets
Financial assets
- Trade receivables	9.1	1,143	1,001
- Cash and cash equivalents	9.2	674	451
- Other bank balances	9.3	1,705	1,333
- Loans	9.4	30	41
- Other financial assets	9.5	141	37
Other current assets	10		41			32
Total current assets				3,734			2,895
Total assets				40,226			39,240
Equity and liabilities
Equity
Equity share capital	11.1	73	73
Other equity	11.2	4,547	6,055
Total equity				4,620			6,128
Non-current liabilities
Financial liabilities
- Borrowings	12.1	27,646	25,939
- Lease liabilities	30	735	731
- Other financial liabilities	12.2	3,958	4,354
Provisions	13.1	279	260
Deferred tax liabilities (net)	18.1	569	280
Other non-current liabilities	14	410	405
Total non-current liabilities				33,597			31,969
Current liabilities
Financial liabilities
- Lease liabilities	30	70	68
- Trade payables
Total outstanding dues of micro and small enterprises	15.1	3	2
Total outstanding dues of creditors other than micro and small
enterprises	15.1	383	394
- Other financial liabilities	15.2	1,484	603
Other current liabilities	17	67	71
Provisions	13.2	2	3
Current tax liabilities (net)	16		-		2

Total current liabilities		2,009		1,143
Total liabilities		35,606		33,112
Total equity and liabilities		40,226		39,240
Summary of significant accounting policies	4

The accompanying notes are an integral part of the special purpose combined financial statements.

Restricted Group-II

Unaudited Special Purpose Combined Statement of profit and loss (All amount in INR millions, unless otherwise stated)

			For the year ended	For the year ended
			'March 31, 2022	March 31, 2021
		Notes	(Unaudited)	(Audited)
Revenue
Revenue from operations	19	5,037		4,541
Other income		20.2	84		14
Total revenue (I)			5,121		4,555
Expenses
Employee benefits expense	21	30		34
Other expenses	24	794		489
Total expenses (II)
		824		523
Earnings before interest, tax, depreciation and
amortisation (EBITDA) (I)-(II) (A)			4,297		4,032
Depreciation and amortisation expense- (B)	22	2,022		2,029
Impairment loss- (C)	41	-		644
Interest income-(D)	20.1	137		65
Finance cost- (E)	23	2,901		2,916
Loss before tax (A-B-C+D-E)			(489	)	(1,492	)
Tax expense:
Current tax expense	18	162		168
Adjustments in relation to tax expense of previous years	18	3		(2)
Deferred tax expense	18	260		(41)
Total tax expense			425		125
Loss after tax			(914	)	(1,617	)
Other Comprehensive Income
Items that will be reclassified to profit or loss
Effective portion of cash flow hedge		251		(268)
Income tax effect			(38	)	40
			213		(228)
Exchange differences in translating the financial statements of
foreign operations			(806)	640
Items that will not be reclassified to profit or loss
Re-measurement gains/(losses) on defined benefit plans		(1)	(1)
Income tax effect		-		-
Total other comprehensive income/(loss)			(594	)	411
Total comprehensive loss			(1,508	)	(1,206	)
Summary of significant accounting policies		4

The accompanying notes are an integral part of the special purpose combined financial statements.

Restricted Group - II

Unaudited Special Purpose Combined Statement of cash flows (All amount in INR millions, unless otherwise stated)

			For the year ended	For the year ended
			'March 31, 2022	March 31, 2021
Particulars		(Unaudited)	(Audited)
A	Cash flows from operating activities
	Loss before tax		(489)		(1,490)
	Adjustment to reconcile loss before tax to net cash
	flows
	Depreciation and amortisation expense		2,022		2,029
	Impairment loss		-		644
	Interest income		(137)		(65)
	Loss on sale of fixed assets ( net)		7		11
	Loss on lease modification		-		1
	Liabilities written back		(65)		(10)
	Government grants related to assets		(12)		(6)
	Deferred viability gap funding income		(28)		(25)
	Provision for doubtful debts		70		19
	Bad debts written off		9		2
	Finance cost		2,901		2,916
	Operating profit before working capital changes		4,278		4,026
	Movements in working capital:
	Decrease/ (increase) in trade receivables		(356)		(21)
	Decrease/ (increase) in other current/non-current
	financial assets		(107)	(12)
	Decrease/ (increase) in Security deposit		(1)	(4)
	Decrease/ (increase) in other current assets		(9)	(13)
	Increase/ (decrease) in other current/non-current
	financial liabilities		15		409
	Increase/ (decrease) in other current liabilities		(4)	13
	Increase/ (decrease)Increase in trade payables		54		129
	Increase/ (decrease) in other non-current liabilities		45		47
	Decrease/ (increase) in other non-current assets		3		(36)
	(Decrease)/ increase in current provisions		(1)	1
	Increase/ (decrease) in non-current provisions		-		10
	Cash generated from operations		3,917		4,549
	Income taxes paid (net of refunds)		(187	)	(173	)
	Net cash flow from operating activities	(A)	3,730		4,376
B	Cash flows from investing activities
	Purchase of property, plant and equipment (including
	capital work in progress, capital advances and capital
	creditors)		(621)		(380	)
	Interest received		62		71
	Investment in non-current term deposits with banks		(474)		(847)
	Loan to holding/fellow subsidiary companies		(534)		(483)
	Proceeds from repayment of loan by holding/fellow
	subsidiary companies		-		1
	Net cash flows used in investing activities	(B)	(1,567	)	(1,638	)
C	Cash flows from financing activities
	Proceeds from borrowings		828		-
	Repayments of non-current borrowings		-		(5)
	Payment of lease rent		(71)		(77)
	Payment for hedging arrangements		(847)		(1,190)
	Finance cost paid		(1,845	)	(2,274	)
	Net cash flows used in financing activities	(C)	(1,935	)	(3,546	)