Streamlining Revenue Recognition for a Leading Solar EPC Company

From Confusion to Clarity :

PGAS & Associates Transforms Revenue Reporting for a Leading Solar EPC Company”

Quick Highlights

Ind AS 115 Implementation

Implemented Ind AS 115–compliant revenue recognition across all projects

Unbilled Revenue Recognition

Recognized ₹11.8 crores of unbilled but completed revenue, improving accuracy

Clean Audit Achievement

Achieved a clean audit report with zero revenue-related qualifications

Cross-Functional Collaboration

Enhanced coordination between operations and finance for real-time visibility

Client Overview & Requirement

Our client, a leading solar EPC company with an annual turnover exceeding ₹220 crores, provides end-to-end solar solutions — from design and procurement to installation and commissioning.

With India’s renewable energy sector expanding rapidly, the company scaled operations across multiple states. However, its revenue recognition process lagged behind business growth, causing inconsistencies in project reporting, delayed closures, and auditor concerns over Ind AS 115 compliance.

The management appointed PGAS & Associates to:

Review and standardize revenue recognition practices
Ensure full compliance with Ind AS 115 and ICDS-IV
Improve accuracy and transparency in project-based financial reporting

Challenges Identified

PGAS’s diagnostic review revealed key issues.

These inconsistencies affected both financial credibility and investor confidence.

Inconsistent Revenue Recognition

Revenue recognition varied between billing, cash, and completion methods

Unbilled Revenue Backlog

Unbilled work worth ₹12+ crores remained unrecognized

Process Misalignment

Lack of synchronization between project execution and finance reporting

Audit Accounting Issues

Prior audit remarks for inconsistent accounting under Ind AS 115

PGAS & Associates’ Approach

PGAS implemented a structured and compliant revenue recognition framework through a four-step transformation plan

01

Contract Mapping

Analyzed EPC and O&M contracts to identify performance obligations and mapped them to Ind AS 115 models (over-time vs. point-in-time).

02

Framework Design

Developed a standardized recognition matrix linked to project milestones and integrated it with ERP for automated monthly tracking.

03

Data Reconciliation

Identified and recorded ₹11.8 crores of unbilled revenue as contract assets, supported by verified project and billing documentation.

04

Compliance Integration

Assisted statutory auditors with reconciliations, disclosures, and ensured audit-readiness under Ind AS 115 and ICDS-IV.

Results & Impact

Parameter	Before PGAS	After PGAS	Impact
Revenue Recognition	Inconsistent / Billing-based	Ind AS 115 Compliant	✅ Standardized
Unbilled Revenue	₹12.4 Cr Unrecognized	Fully Recognized	💰 Accurate Turnover
Audit Qualification	Yes	Nil	🧾 Clean Report
Reporting Frequency	Irregular	System-based Tracker	📊 Improved Visibility
Finance–Operations Coordination	Weak	Aligned	⚙️ Streamlined Processes

Client Feedback

PGAS & Associates brought structure and logic to our revenue reporting. Their clarity on Ind AS 115 helped us gain confidence with auditors and investors alike. What was once a complex, manual process is now accurate, transparent, and scalable.”

— Chief Financial Officer.

The Value of Scalable Accounting Solutions

In industries like solar EPC, where contracts are long-term and milestone-based, accurate revenue recognition defines business credibility.

Through this engagement, PGAS & Associates delivered:

Ind AS 115 Reporting

Ind AS 115–aligned financial reporting

Audit & Investor Confidence

Improved audit outcomes and investor confidence

Project Profitability Insights

Real-time tracking and project-level profitability insights

Scalable Revenue Processes

Sustainable revenue processes that grow with the business