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 ConnectedRooftop Solar PV Program (The Bank) which comprise the Program Financial Statement as at 31stMarch, 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 financialstatements that give a true and fair view of the financial position and financial performance inaccordance with the Accounting Standards specified under section 133 of the Act, read with rule 7of the Companies (Accounts) Rules, 2014 read with regulatory norms/ guidelines prescribed bythe RBI, Banking Regulation Act, 1949.

This responsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and design,implementation and maintenance of internal controls, that were operating effectively for ensuringthe accuracy and completeness of the accounting records, relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Program Financial Statements based on ouraudit.

We have taken into account the provisions of the Act, the accounting & auditing standards andmatters which are required to be included in the audit report under the provisions of the Act andthe rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements and planand .perform the audit to obtain reasonable assurance about whether the Program FinancialStatenents 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

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Chartered Accountants

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Program Financial Statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal financial control relevant to the Bank's preparation of the Program Financial Statements togive a true and fair view in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on whether the Bank has in placean adequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls.

An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management, as well as evaluating the overallpresentation of the Program Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, theProgram Financial Statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generally accepted inIndia:

(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 unitsaccounts and financial statements are reconciled;

(iii) In case of the Expenditures shown in the PFS are eligible for financing under therelevant financing agreements and

(iv) In case of the IUFRs submitted during the period are without mis-statements andsupported 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 CentralGovernment of India in terms of Section 143(11) of the Companies Act, 2013, the said orderis 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;

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Chartered Accountants

b. In our opinion, proper books of account as required by law have been kept by theCompany 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 thebooks of account;

d. In our opinion, the aforesaid financial statements comply with the Accounting Standardsspecified 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 ofthe Bank and the operating effectiveness of such controls, the said report is not applicableto the Bank and;

f. With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and tothe best of our information and according to explanations given to us this is notapplicable to this report

For Raju & Prasad Chartered AccountantsFRN. No. :003475S

Avinash T Jain(Partner)Mem No :041689

Place: MumbaiDate : 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 SinceSemester ended Sep 30, Inceptioni.e. Apr 2017 2017to Sep 2017

Sources*IBRD Loan -Advance 0.00 8332.5 8332.5CTF Loan-Advance 0.00 1999.8 1999.8CTF Grant (total upon achievement of all 0.00 333.8 333.8DLI's)

Uses(i) disbursement of loans according to the 790.0 790.0 790.0criteria set out in this OM(ii) Program establishment and operating 7.8 7.8 7.8costs including PIU costs(iii) Program advertisement costs, 0.6 0.6 0.6including outreach to aggregators insideand outside India

(iv) SBICAPS fee for advisory services 113.4 113.4 113.4provided to the Program, including out ofpocket expenses up to a level consistentwith market norms(v) training and capacity building of all 0.1 0.1 0.1key stakeholders(vi) engagement of key staff required to 0 0 0operate the Program, variousconsultancies, dissemination materials,and operating costs(vii) capitalization of a loss-offsetting fund 0 0 0(also referred to interchangeably as"guarantee facility for non-performingloans")(viii) audit fee, legal fee and independent 0 0 0verification agent (IVA) charges(ix) incentive to staff 0 0 0IBRD loan - "WB Fund -Amount to bedisbursed account"CTF loan - "WB Fund -Amount to bedisbursed 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 9542.238CTF Loan -AdvanceCTF Grant (total 333.8 211.9upon achievement ofall DLI's)GEF 0 369.9

Notes to IUFR:

1. Exchange rate for IBRD Loan : Rs 66.6596/USD for USD 125 million credited on05/10/2016

2. Exchange rate for CTF Loan Rs 66.6596/USD for USD 30 million cred!e pp05/10/2016

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 17/02/20174. Exchange rate for GEF Grant : Rs. 64.5225 per USD for USD 5.73 million drawn on

30/06/20175. No expense has been incurred up to 3 1 st March, 2017.

INTERIM UNAUDITED FINANCIAL REPORT (IUFR) AS ON 31/03/2018

(Rs. in million)

Sources and Uses: Forthe For the For the year SinceSemester i.e. Semester i.e. ended Mar 31, InceptionApril 2017 to Oct 2017 to 2018Sept 2017 Mar 2018

SourcesIBRD Loan -Advance 8332.5 1846.1 10178.6 10178.6CTF Loan-Advance 1999.8 1025.7 3025.5 3025.5CTF Grant (total upon achievement of all DLI's) 333.9 0.0 333.9 333.9GEF Grant - Drawdown 369.9 188.0 557.9 557.9Uses(i) disbursement of loans according to the criteria 790 1631.4 2421.4 2421.4set out in this OM(ii) Program establishment and operating costs 7.8 0 7.8 7.8including PIU costs(iii) Program advertisement costs, includingoutreach to aggregators inside and outside India(iv) SBICAPS fee for advisory services provided tothe Program, including out of pocket expenses 113.4 0 113.4 113.4up to a level consistent with market norms(v) training and capacity building of all key 0.1 0 0.1 0.1stakeholders ( CTF GRANT)(v) a. training and capacity building of all key 0.0 16.2 16.2 16.2stakeholders ( GEF GRANT)(vi) engagement of key staff required to operatethe Program, various consultancies, 0 0 0 0dissemination materials, and operating costs(vii) capitalization of a loss-offsetting fund (alsoreferred to interchangeably as "guarantee facility 0 0 0 0for non-performing loans")(viii) audit fee, legal fee and independent 0 0 0 0verification agent (IVA) charges(ix) incentive to staff 0 0 0 0Balances at the end of semester Balance as on 30.09.2017 Balance as on 31.03.2018IBRD loan - "WB Fund -Amount to be disbursedaccount"CTF loan - "WB Fund -Amount to be disbursedaccount"CTF Grant - GRPV WB-Expenditure** 212.0 204.7GEF Grant I - GRPV WB- Reserve Fund** 0.0 0.0GEF 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 ofaccounts reported as on 30.09.2017.2. Exchange rate for IBRD Loan Rs 64.7973/USD for USD 28.49 million credited on 31.03.20183. Exchange rate for CTF Loan Rs 64.7973/USD for USD 15.83 million credited on 31.03.20184. Exchange rate for GEF Grant Rs. 64.03/USD for USD 2.936 million drawn on 14.02.2018