Indosolar’s record is a story of two halves: a clean audit run since FY2023 under new ownership, and a pre-resolution period that left behind a ₹1,010 crore interest gap, a disclaimer of opinion, and contingent liabilities that remain unresolved. The post-CIRP business is entirely with its 74.93% promoter Waaree Energies, with FY27 proposed related-party limits of ₹905 crore exceeding Indosolar’s own turnover.
Key findings
- Entire business runs through promoter Waaree Energies, with FY27 RPT limits at 133% of own turnover
Major- In FY2025-26, Indosolar sold goods worth ₹294.17 crore and rendered services worth ₹201.16 crore to Waaree Energies, and purchased raw materials worth ₹72.28 crore and finished goods worth ₹7.15 crore from it. Trade receivables from Waaree stood at ₹209.61 crore as at 31 March 2026, up from ₹4.66 crore a year earlier. For FY2026-27, the company seeks shareholder approval for related-party transactions totalling ₹905 crore, which equals 133% of Indosolar’s own consolidated turnover but only 3.4% of Waaree’s. - FY2022 disclaimer of opinion exposed a ₹1,010 crore interest gap and unverified payables
Major- The FY2022 statutory auditor issued a disclaimer of opinion after finding that interest on bank facilities was not booked during the moratorium, creating a ₹1,010.28 crore difference between claims admitted by the Resolution Professional and book balances as on 16 April 2019. The auditor could not verify accounts payable of ₹86.07 crore, and reported that net foreign exchange turned negative by ₹312.13 crore after amortisation of imported plant, exposing the company to unassessed duties and penalties. From FY2023 through FY2026, the current auditor has issued unqualified opinions. - ₹1,010 crore of unpaid interest and charges remain off-balance-sheet, and preference shares carry a dilution trigger
Major- The company has not recognised finance cost on borrowings since the Insolvency Commencement Date, leaving a ₹1,010.28 crore gap between claims admitted by the Resolution Professional and book balances, comprising interest, penal interest, expenses and other charges. Separately, 20.7 crore optionally convertible preference shares issued to Union Bank of India carry a conversion right that triggers if the company fails to remedy a default within 60 days, at the higher of par value and SEBI-formula market value. The bank revoked the one-time settlement on 12 December 2018 after the company defaulted on interest from July 2018 and instalments from September 2018. - Three auditors in six years, with one resignation citing over-dues and the current appointment unregularised for over two years
Major- M/s Arun K. Gupta & Associates resigned on 14 August 2019 citing “over-dues and disagreement over remuneration”. M/s A.K.G. & Associates, appointed by the Resolution Professional, resigned effective 14 November 2022 citing “inability to continue”. The current auditor, S.G.C.O. & CO. LLP, was appointed by the board on 14 November 2022 but could not be regularised by shareholders until 13 May 2025 because the company could not convene a general meeting pending relisting approvals. - CIRP-era accounting suspended normal expense recognition, and the balance sheet was rebuilt through exceptional gains and a 99% capital reduction
Minor- During FY2021-22, the company did not recognise any expense for defined contribution or defined benefit plans, and did not recognise finance cost on borrowings, because it was under CIRP. In FY2022-23, the company recorded an exceptional gain of ₹1,037.87 crore on extinguishment of financial creditors’ liabilities and ₹89.44 crore on operational creditors’ liabilities under the NCLT-approved Resolution Plan, while issued capital was reduced from ₹372.07 crore to ₹41.60 crore by cancelling all promoter equity and 99% of public equity. - A ₹107 crore fixed-asset impairment was booked during CIRP using a 2019 valuation
Minor- In FY2021-22, Indosolar recognised a total impairment loss of ₹107.48 crore on property, plant and equipment, capital work-in-progress, and right-of-use assets, presented as an exceptional item. The impairment was determined using a valuation report dated April 2019, with depreciation applied for the intervening period, as noted by the auditor in an Emphasis of Matter, a special call-out in the audit report. The company had no revenue from operations during the year.
What to watch
- FY27 RPT omnibus approval. Shareholder vote on the ₹905 crore related-party transaction limit with Waaree Energies at the AGM on 31 August 2026.
- Independent director re-appointment. AGM vote on 31 August 2026 on the re-appointment of Mr. Nilesh Bhogilal Gandhi for a second term.
- Export obligation. Outcome of the unresolved net foreign exchange position and any consequent customs duty and penalty demands, as flagged in the FY2024-25 annual report.
- Capital subsidy. Appraisal and release decision by DEIT on the ₹300 crore claim, as noted in the FY2024-25 annual report.
Bottom line: This is a disclosed and audited post-resolution record whose clean audit opinions since FY2023 sit alongside a pre-resolution period that left a ₹1,010 crore interest gap unresolved. The business today is entirely a captive supplier to its promoter, and the ₹905 crore FY27 RPT limit puts the entire turnover inside a single related-party relationship. Watch the shareholder vote on that limit, and whether the old interest gap and export obligation ever crystallise into demands.