Chartered Accountants INDEPENDENT AUDITORS' REPORT To, Deputy General Manager (CPPD), State Bank of India. REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying Program Financial Statements ("PFS") of Grid Connected Rooftop Solar PV Program (The Bank) which comprise the Program Financial Statement as at 31st March, 2018, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements The Bank's Board of Directors is responsible for with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance in accordance with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 read with regulatory norms/ guidelines prescribed by the RBI, Banking Regulation Act, 1949. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these Program Financial Statements based on our audit. We have taken into account the provisions of the Act, the accounting & auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and .perform the audit to obtain reasonable assurance about whether the Program Financial Statenents are free from material misstatement. 1-1 Cy orate Centre, Nirmal Lifestyle Mall, LBS Rd, Mulund (W), Mumbai- 400080; Office: 2567 1155/99 \ob e: 9324087338; Website: www.rajuandprasad.com; Email: mumbai@rajuandprasad.com HEAD OFFICE: Hyderabad BRANCHES: New Delhi Bengaluru Jalgaon Tirupati Chartered Accountants An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Program Financial Statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Bank's preparation of the Program Financial Statements to give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Bank has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the Program Financial Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the Program Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) In the case of the funds were utilized for the purposes for which they were provided; (ii) In case of the Program receipts and expenditures reported in the IUFRs, Program books of accounts, World Bank website (disbursements) and SBI's Branches/operating units accounts and financial statements are reconciled; (iii) In case of the Expenditures shown in the PFS are eligible for financing under the relevant financing agreements and (iv) In case of the IUFRs submitted during the period are without mis-statements and supported by adequate detailed documentation maintained with SBI. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor's Report) Order, 2016 issued by the Central Government of India in terms of Section 143(11) of the Companies Act, 2013, the said order is not applicable to the Bank. 2. As required by Section 143(3) of the Act, we 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 purpose of our audit; X/ m il r0 11 Chartered Accountants b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c. The Program Financial Statement dealt with by this Report are in agreement with the books of account; d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; and the Companies Amendment Rules,2016 e. With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, the said report is not applicable to the Bank and; f. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to explanations given to us this is not applicable to this report For Raju & Prasad Chartered Accountants FRN. No. :003475S Avinash T Jain (Partner) Mem No :041689 Place: Mumbai Date : 26.12.2018 Grid Connected Rooftop Solar Program Interim Unaudited Financial Report for the semester ending Sep 30, 2017 (in INR Million) Sources and Uses: For the For the year Since Semester ended Sep 30, Inception i.e. Apr 2017 2017 to Sep 2017 Sources* IBRD Loan -Advance 0.00 8332.5 8332.5 CTF Loan-Advance 0.00 1999.8 1999.8 CTF Grant (total upon achievement of all 0.00 333.8 333.8 DLI's) Uses (i) disbursement of loans according to the 790.0 790.0 790.0 criteria set out in this OM (ii) Program establishment and operating 7.8 7.8 7.8 costs including PIU costs (iii) Program advertisement costs, 0.6 0.6 0.6 including outreach to aggregators inside and outside India (iv) SBICAPS fee for advisory services 113.4 113.4 113.4 provided to the Program, including out of pocket expenses up to a level consistent with market norms (v) training and capacity building of all 0.1 0.1 0.1 key stakeholders (vi) engagement of key staff required to 0 0 0 operate the Program, various consultancies, dissemination materials, and operating costs (vii) capitalization of a loss-offsetting fund 0 0 0 (also referred to interchangeably as "guarantee facility for non-performing loans") (viii) audit fee, legal fee and independent 0 0 0 verification agent (IVA) charges (ix) incentive to staff 0 0 0 IBRD loan - "WB Fund -Amount to be disbursed account" CTF loan - "WB Fund -Amount to be disbursed account" CTF Grant - GRPV WB-Expenditure** GEF Grant I - GRPV WB- Reserve Fund** GEF Grant II - GRPV WB- TA** Sources Balance as on March 31,2017 Balance as on September 30, 2017 (in INR Million) (in INR Million) IBRD Loan -Advance 10332.24 9542.238 CTF Loan -Advance CTF Grant (total 333.8 211.9 upon achievement of all DLI's) GEF 0 369.9 Notes to IUFR: 1. Exchange rate for IBRD Loan : Rs 66.6596/USD for USD 125 million credited on 05/10/2016 2. Exchange rate for CTF Loan Rs 66.6596/USD for USD 30 million cred!e pp 05/10/2016 3. Exchange rate for CTF Grant: i. Rs. 66.4/USD for USD 1.25 million credited on 04/10/2016 ii. Rs 66.905/USD for USD 3.75 million credited on 17/02/2017 4. Exchange rate for GEF Grant : Rs. 64.5225 per USD for USD 5.73 million drawn on 30/06/2017 5. No expense has been incurred up to 31st March, 2017. INTERIM UNAUDITED FINANCIAL REPORT (IUFR) AS ON 31/03/2018 (Rs. in million) Sources and Uses: Forthe For the For the year Since Semester i.e. Semester i.e. ended Mar 31, Inception April 2017 to Oct 2017 to 2018 Sept 2017 Mar 2018 Sources IBRD Loan -Advance 8332.5 1846.1 10178.6 10178.6 CTF Loan-Advance 1999.8 1025.7 3025.5 3025.5 CTF Grant (total upon achievement of all DLI's) 333.9 0.0 333.9 333.9 GEF Grant - Drawdown 369.9 188.0 557.9 557.9 Uses (i) disbursement of loans according to the criteria 790 1631.4 2421.4 2421.4 set out in this OM (ii) Program establishment and operating costs 7.8 0 7.8 7.8 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 113.4 0 113.4 113.4 up to a level consistent with market norms (v) training and capacity building of all key 0.1 0 0.1 0.1 stakeholders ( CTF GRANT) (v) a. training and capacity building of all key 0.0 16.2 16.2 16.2 stakeholders ( GEF GRANT) (vi) engagement of key staff required to operate the Program, various consultancies, 0 0 0 0 dissemination materials, and operating costs (vii) capitalization of a loss-offsetting fund (also referred to interchangeably as "guarantee facility 0 0 0 0 for non-performing loans") (viii) audit fee, legal fee and independent 0 0 0 0 verification agent (IVA) charges (ix) incentive to staff 0 0 0 0 Balances at the end of semester Balance as on 30.09.2017 Balance as on 31.03.2018 IBRD loan - "WB Fund -Amount to be disbursed account" CTF loan - "WB Fund -Amount to be disbursed account" CTF Grant - GRPV WB-Expenditure** 212.0 204.7 GEF Grant I - GRPV WB- Reserve Fund** 0.0 0.0 GEF Grant II - GRPV WB- TA** 369.9 541.7 Notes to IUFR: 1. # Disbursement of Rs. 163.14 crore includes Rs 6.60 cr. Disbursed during October 2017 to March 2018 in respect of accounts reported as on 30.09.2017. 2. Exchange rate for IBRD Loan Rs 64.7973/USD for USD 28.49 million credited on 31.03.2018 3. Exchange rate for CTF Loan Rs 64.7973/USD for USD 15.83 million credited on 31.03.2018 4. Exchange rate for GEF Grant Rs. 64.03/USD for USD 2.936 million drawn on 14.02.2018