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

Azure Power Energy Limited and Restricted Group

Azure Power (the "Company") is filing unaudited annual results for fiscal year ended March 31, 2022 of Azure Power Energy Limited and Restricted Group entities (collectively referred as Restricted Group-III). Restricted Group-III has underlying projects with 611 MWs operating capacity in total, compared to 621 MWs in erstwhile Restricted Group-I. During the fiscal year ended March 31, 2022, shareholding in respect to a 10 MWs rooftop project in the erstwhile Restricted Group-I was transferred as part of disposal of investment in the rooftop portfolio of Company.

The Company will file audited annual results for fiscal year ended March 31, 2022 of Restricted Group-III 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-III 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 - III

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

					As at	As at
					'March 31,	'March 31,
			2022					2021
	Notes			(Unaudited)	(Audited)
Assets
Non-current assets
Property, plant and equipment	5				28,305					30,540
Right-of-use assets	30				730					756
Capital work-in-progress	5				3					34
Financial assets	6
- Investments	6.1				-					384
- Trade receivables	6.2				351					-
- Loans	6.3				5,865					5,889
- Other financial assets	6.4				1,154					5,099
Deferred tax assets (net)	18.2				187					198
Income tax assets (net)	7				186					172
Other non-current assets	8				448					461
Total non-current assets					37,229					43,533
Current assets
Financial assets	9
- Trade receivables	9.1				3,189					2,952
- Cash and cash equivalents	9.2				290					1,942
- Other bank balances	9.3				1,278					1,511
- Loans	9.4				925					798
- Other financial assets	9.5				159					188
Other current assets	10				39					23
Total current assets					5,880					7,414
Total assets					43,109					50,947
Equity and liabilities
Equity
Capital	11.1				113					113
Other equity	11.2				7,418					8,250
Total equity					7,531					8,363
Non-current liabilities
Financial liabilities	12
- Borrowings	12.1				27,959					36,519
- Lease liabilities	30				793					778
- Other financial liabilities	12.2				4					-
Provisions	13.1				137					127
Deferred tax liabilities (net)	18.1				1,042					1,489
Other non-current liabilities	14				2,054					2,039
Total non-current liabilities					31,989					40,952
Current liabilities
Financial liabilities	15
- Borrowings	15.1				2,160					295
- Lease liabilities	30				59					56
- Trade payables
Total outstanding dues of micro and small enterprises	15.2				6					9
Total outstanding dues of creditors other than micro and
small enterprises	15.2		223					210
- Other financial liabilities	15.3				1,012					921
Other current liabilities	17				100					105
Provisions	13.2				5					4
Current tax liabilities (net)	16				24					32

Total current liabilities			3,589				1,632
Total liabilities			35,578				42,584
Total equity and liabilities			43,109				50,947
Summary of significant accounting policies	4

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

Restricted Group - III

Unaudited Special Purpose Combined Statement of profit and loss

(All amount in INR millions, unless otherwise stated)

					For the year	For the year
					ended	ended
					'March 31,
				2022		'March 31, 2021
			Notes		(Unaudited)	(Audited)
Revenue
Revenue from operations		19	6,203		6,199
Other income			20.2		248		31
Total revenue (I)				6,451		6,230
Expenses
Employee benefits expense		21	52		46
Other expenses		24	749		800
Total expenses (II)					801		846
Earnings before interest, depreciation and amortization
(EBITDA) (I)-(II) (A)			5,650		5,384
Depreciation and amortisation expense- (B)		22	2,321		2,314
Interest income- (D)		20.1	757		807
Finance cost- (E)			23		2,889		3,463
Profit before tax (A-B+D-E)				1,197		414
Tax expense:
Current tax expense		18	450		431
Income tax adjustment pertaining to earlier years		18	15		(15)
Deferred tax expense			18		417		126
Total tax expense				882		542
Net Profit/(loss) after tax				315		(128)
Other comprehensive income
Items that will be reclassified to profit or loss
Effective portion of cash flow hedge			(5,683)	(343)
Income tax effect					852		53
					(4,831)		(290)
Exchange differences on translating the financial
statements of foreign entities			3,684		971
Items that will not be reclassified to profit or loss
Re-measurement gains/(losses) on defined benefit plans			-		(2)
Income tax effect			-		1
Other comprehensive income/(loss)					(1,147	)	680
Total comprehensive income/(loss)					(832	)	552
Summary of significant accounting policies		4

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

Restricted Group - III

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

			For the year	For the year
			ended	ended
			'March 31,	'March 31,
			2022		2021
Particulars		(Unaudited)	(Audited)
A	Cash flows from operating activities
	Profit before tax		1,197		414
	Adjustment to reconcile profit before tax to net cash
	flows
	Depreciation and amortisation expense		2,321		2,314
	Interest income		(757)		(807)
	Exchange difference (net)		(163)		(8)
	Contract assets		-		(6)
	Deferred revenue		73		30
	Provision for doubtful debts/advances		77		266
	Asset written off		80		-
	Provision for dimnunition in assets		46		-
	Loss on sale of property, plant and equipment (net)		9		-
	Provisions / liabilities no longer required written back		(74	)	(14)
	Bad debts written off		2		6
	Viability Gap funding income		(85)		(80)
	Finance cost		2,816		3,463
	Operating profit before working capital changes		5,542		5,578
	Movements in working capital:
	Decrease/ (increase) in trade receivables		(667)		(522)
	Decrease/ (increase) in other current/non-current financial
	assets		(15)	(34)
	Decrease/ (increase) in Security deposit		(1)	(3)
	Decrease/ (increase) in other current assets		(16)	(1)
	(Decrease)/ increase in other current financial liabilities		(15)		(239)
	Increase/ (decrease) in trade payables		83		(43)
	Increase/ (decrease) in other current and non-current
	liabilities		22		192
	Decrease/ (increase) in other non-current assets		(22)		16
	(Decrease)/ increase in current provisions		1		1
	Increase/ (decrease) in non-current provisions		2		(57)
	Cash generated from operations		4,913		4,887
	Income tax paid (net of refunds)		(487)		(391)
	Net cash flow from operating activities	(A)	4,426		4,496
B	Cash flows from investing activities
	Property, plant and equipment (including capital work in
	progress, capital advance and capital creditors)		(200)	(174)
	Interest received		497		1,182
	Investment in/ (Proceeds from) in bank deposits		198		(1,055)
	Proceeds from sale of investment		384		-
	Loan given to others		(130)		-
	Loan given to holding/fellow subsidiaries		(4,965)		(2,596)
	Proceeds from repayment of loan by holding/fellow
	subsidiary companies		4,992		2,052
	Net cash flows (used in)/from investing activities	(B)	776		(591	)
C	Cash flows from financing activities
	Proceeds from issuance of Green Bonds		30,285		-
	Repayment of Green bonds		(37,069)		-
	Proceeds from borrowings taken from holding company		235		-
	Proceeds from non current borrowings		-		(2)