AFFLUENCE

During the year under review, your Company has recorded total income to the tune of ? 20,266.16 million compared to ? 17,981.42 million in the corresponding previous financial year. During the year, your Company generated earnings before interest, depreciation, and tax (EBITDA) of ? 2,019.80 million as compared to 659.34 million in the previous financial year. Net Profit for the financial year 2022-23 is ? 126.99 million as compared to the loss of ? (601.43) million in the previous financial year.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO A. Conservation of Energy (i) the steps taken or impact on conservation of energy Fab II / Falta: 1. Roof-top solar installation of 960KW (~1.5million units/year) successfully commissioned and is being operational. Fab III / Chennai: 1. Optimization of equipment’s like Chillers, Compressors and production equipment’s based on Production planning for Specific Energy Consumption Reduction (~3KWh/KW/month and ~ 14 lakh units per annum) 2. Planning for Group Captive Power Purchase for 5MW capacity by Q4’2023/24. Estimated savings INR 2crore/annum (ii) the steps taken by the Company for utilizing alternate sources of energy Fab II / Falta 1. I&C of 4 MVA Tr 33/0.415KV to reduce the Transformer Copper and Iron losses. From Present 66.8 KW to 44 KW net saving of 22.8 KW/Hour. Fab III / Chennai 1. Planning for Group Captive Power Purchase Agreement (PPA) for 5MW capacity by Q4’2023/24. Estimated savings INR 2crore/annum 2. Planning for energy exchange with 3rd Party (iii) the capital investment on energy conservation equipment. Fab III / Chennai INR 2 crore for Group Captive PPA

B. Technology Absorption (i) the efforts made towards technology absorption Fab II / Falta New Upgraded Module Manufacturing line setup as Falta Fab II Line 1, capable to produce 210 x 210 mm (G12) Glass to Glass and Glass to Back sheet Modules. New line having Dual Stack Laminator, stringing upgradable up to 20BB Cells with String EL Check, Auto taping, Auto Bussing, Auto Framing and Auto JB Fixing. With automation new Quality challenges are tackled in line by reducing human touch significantly. With auto Sorting and packing process became furthermore smooth. Topcon Technology based Hypersol module variant is also tested with buildup feasibility and soon be commercially available. New Encapsulant combination were introduced, and stable production made for Paradea module variants Fab III / Chennai: VSL Chennai Plant started with new HC MBB M6 which was upgraded compatible for manufacturing M10 sized modules with latest ATW Stringer machine with micro gap technology, Auto bussing & Dual stack laminators, auto edge trimming machine, Auto frame edge grinding machine for productivity improvement. While Chennai plant Rodeo 1.2 (Line 2) is capable of handling Glass to Glass (G2G) modules upto size G12 / 210mm cell format, we plan to upgrade the Rodeo 1.1 (Line 1) line also compatible for handling G2G product. With this upgrade, Chennai plant G2G capacity will be increased from 1.3GW to 2.5GW (ii) the benefits derived like product improvement, cost reduction, product development or import substitution ? Improved Module Performance with introduction of Mesh Rear Glass for Paradea Variants ? Reduced Lamination Cycle Time with Encapsulant Upgradation ? BOM Cost Reduction achieved upto 5% with M10 Solar Modules with product innovation ? Introduction of Vertical Packaging for M10 and above module variants improved module capacity per container. ? Reduction in Module 35mm to 30mm thickness for glass to glass module increased modules per palette ? Module tracker compatible up to Series 10 module, with most Tier 1 Tracker manufacturers ? Module are certified with latest IEC 61215 : 2021 & IEC 61730 : 2021 Guidelines ? M10 Modules are PVEL PQP Top Performer Models with proven reliability sustain Tough testing scenarios. New Product Developments: • M10 144 Cell Bifacial n-TOPCon Module HYPERSOL VSMDH.72.AAA.05 (555 – 580W) • M10 120 Cell Bifacial n-TOPCon Module HYPERSOL VSMDH.60.AAA.05 (460 – 480W) • M10 108 Cell Bifacial n-TOPCon Module HYPERSOL VSMDH.54.AAA.05 (415 – 440W) • M10 108 Cell Monofacial Black Module SOMERA VSMHBB.54.AAA.05 (395 – 420W) • M10 108 Cell Monofacial Module SOMERA VSMH.54.AAA.05 (395 – 420W) • M10 108 Cell Bifacial Module PREXOS VSMDHT.54.AAA.05 (395 – 420W) • M10 108 Cell Bifacial Module PARADEA VSMDH.54.AAA.05 (395 – 420W) • M10 156 Cell Bifacial Module PARADEA VSMDH.78.AAA.05 (585 – 610W) • G12 120 Cell Monofacial Module SOMERA VSMH.60.AAA.05 (580 – 605W) • G12 120 Cell Bifacial Module PARADEA VSMDH.60.AAA.05 (580 – 605W) • G12 132 Cell Monofacial Module SOMERA VSMH.66.AAA.05 (635 – 670W) • G12 132 Cell Bifacial Module PARADEA VSMDH.66.AAA.05 (635 – 670W) (iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- a. the details of technology imported b. the year of import c. whether the technology been fully absorbed d. if not fully absorbed, areas where absorption has not taken place, and the reasons thereof Fab III / Chennai a)i) Half cut cell technology with 156.75 mm cell ii) Half Cut MBB Cell Technology with 166 mm and 1 mm cell b) FY 2021/2022 c) Technology has been fully absorbed d) Not applicable Fab II / Falta a) i) Mesh Rear Glass Models having Power generation Gain upto a bin Jump. ii) M10 156 Half Cut Cell Module variant with generation capacity upto 600Wp iii) M10 PERC Module have been commercially available upto 555Wp iv) M10 108 Cell Module with generation upto 410Wp best suitable for rooftop application v) M10 Topcon Module Variant with Module efficiency achieved upto 22.5% and 575Wp, soon be commercially available b) 2022 & 2023 c) Technology has been fully absorbed and commercially available d) Not applicable (iv) the expenditure incurred on Research and Development ?21.55 million.

C. Foreign Exchange Earnings And Outgo During the year, the total foreign exchange earned was ? 3,484.70 million and foreign exchange outgo was ? 7,024.35 million.

DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to the requirement clause (c) of sub-section (3) of Section 134(5) of the Companies Act, 2013, your Directors confirm that: (a) in the preparation of the annual accounts for the financial year ended 31 March 2023, the applicable accounting standards have been followed along with proper explanation relating to material departures; (b) they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for that period; (c) they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (d) the Annual Accounts for the financial year ended 31 March 2023 had been prepared on a going concern basis; (e) they had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and (f) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.