Notes to Accounts of Gita Renewable Energy Ltd.

Mar 31, 2015

1.Company overview:

Gita Renewable Energy Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is engaged in power generation. The company's shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.

2.Movement of Shares

Authorised Capital, Issued, Subscribed and fully paid up Capital

There is no movement of shares outstanding at the beginning and at the end of the reporting period.

3. Terms / rights attached to equity shares:

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

4.Terms of repayment and rate of interest:

Rupee Term Loan of Rs.68489966/- is repayable in 8 quarterly instalments of Rs.8572000 each and it carries interest @12% pa.

Security

(Term Loan from Bank is secured by equitable mortgage of Land and Building including Plant and Machinery)

5. Additional Information to the Financial Statements

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Rs. Nil).

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Rs. Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil).

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Contingent liabilities not provided for Rs. Nil.

iv) Employee / Retirement Benefits: No provision for Retirement Benefits / gratuity to employees has been made since there are no employees eligible for the same.

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2015 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) As on the closing date, Company has circularized/sought confirmation of balance letters to/from sundry debtors and Loans and Advance paid to parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as correct.

vii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Rs. Nil (previous year Rs. Nil).

viii) CIF Value of Imports: Rs. Nil

ix) Remittance in Foreign Currency towards Dividend - Rs. Nil.

x) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Rs. Nil)

xi) Licence Agreement:

The company has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall pay lease rent of Rs.2,50,000/- p.m. plus applicable taxes to the company an interest free deposit of Rs.44,40,00,000/- and The Interest free deposit is grouped under unsecured loan.

xiii) SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2015.

Business Segment:

(a) The Company operates in Single Business Segment of 'Generation and distribution of power'. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

xv) Previous year figures:

Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

A) Movement of Shares

Authorsied Capital, Issued, Subscribed and fully paid up Capital There is no movement in of shares during the reporting period.

b) Terms / rights attached to equity shares:

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

Terms of repayment and rate of interest :

Rupee Term Loan of Rs.109,590,962/- is repayable in 13 quarterly instalments of Rs.8,572,000/- each and it carries an interest @12% pa.

Security :

Term Loan from Bank are secured by equitable mortgage of Land and Building including Plant and Mahchinery and also by hypothecation of Raw materials, Stock in process and Finished Goods. Corporate guarantee by M/s. Tamilnadu Property Developers Limited and also personally guaranteed by the CMD of the demerged company.

Notes attached to and forming part of the Balance Sheet as at 31-3-2014 and the Profit and Loss account for the period ended on that date:

1. CORPORATE INFORMATION:

Gita Renewable Energy Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is engaged in power generation through wind mills and waste heat recovery plant. The company is in the process of listing its shares in Bombay Stock Exchange Limited. Gita Renewable Energy Limited was one of the resulting companies of demerged Kanishk Steel Industries Limited.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Nil)

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil pertaining to resulting company) and for others is nil.

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not provided for: Nil

iv) Employee Benefits - There are no employees during the year 2013-14

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2014 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

vii) During the year the company has written back an amount of Rs. 2,98,56,569/- as liabilities no longer required & written off to the extent of Rs. 2,62,83,910/- from advances given to parties (Net 35,72,659/- Credit)

viii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Nil (previous year Nil)

ix) CIF Value of Imports: Nil

x) Remittance in Foreign Currency towards Dividend - Nil.

xi) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Nil)

Note : Related party relationship is as identified by the Company and relied upon by the Auditors

xiii) Licence Agreement :

Demerged Company(Kanishk Steel Industries Limited) has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG renewable Energy Private limited (OPGREPL) on the understanding that OPGREPL shall provide power to the company an interest free deposit of Rs.44,40,00,000/- accordingly it is grouped under unsecured loan.

xiv) SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2014.

Business Segment:

(a) The Company operates in Single Business Segment of ''Generation and distribution of power''. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company

(b) The Company has not yet been successful in its efforts to appoint a Company Secretary to fulfill the requirements of Section 383A of the Companies Act, 1956.

xvi) Previous year figures :

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

A) Movement of Shares Authorised Capital

Consequent to Scheme of Arrangement approved by the Honourable High Court of Judicature at Madras, the authorised capital increased from Rs. 500,000/- to Rs.42,500,000/-.

Issued, Subscribed and fully Paid up Capital

4062296 Number of shares of Rs.10/- each (fully paid-up) has been issued on 19.04.2013 to the Shareholders of Demerged Company as follows:

One equity share in company of face value of Rs.10/- each as fully paid up for Seven Equity shares of Rs.10/- each fully paid up held in the Demerged Company.

b) Terms / rights attached to equity shares:

The company has only one class of Equity share at face value of Rs.10/- per share. Every shareholder is entitled to one vote per share.

At the event of liquidation of the company, such shareholders will be entitled to receive the assets of the company, in proportion to the number of equity shares held by them in the Capital of the Company.

Terms of repayment and rate of interest:

Rupee Term Loan of Rs.240,006,951/- is repayable in 28 quarterly instalments of Rs.8,572,000/- each and it carries an interest @12% pa.

Security:

Term Loan from Bank is secured by equitable mortgage of Land and Building including Plant and Mahchinery and also by hypothecation of Raw materials, Stock in process and Finished Goods. Corporate guarantee by M/s. Tamilnadu Property Developers Limited and also personally guaranteed by the CMD of the demerged company.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Nil)

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil pertaining to resulting company) and for others is nil.

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not provided for: Nil

iv) Employee Benefits - There are no eligible employees during the year 2012-13

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31,2013 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

vii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Nil (previous year Nil)

viii) CIF Value of Imports: Nil

ix) Remittance in Foreign Currency towards Dividend

x) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Nil).

3. RELATED PARTY DISCLOSURES

Details of related parties including summary of transactions entered into by the Branch during the year ended 31 March 2013 are summarized below:

Names of related parties and description of relationship:

Key management personnel Rajesh Kumar Gupta Ravi Kumar Gupta Avantika Gupta Other Related Parties Kanishk Steel Industries Limited Chennai Ferrous Industries Limited OPG Renewable Energy Private Limited

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

4. SCHEME OF ARRANGEMENT

a) Pursuant to the scheme of arrangement ("the scheme") between Kanishk Steel Industries Limited (Demerged Company) and the company as sanctioned by the Hon''ble High Court of Judicature at Madras, vide its order dated 04-01-2013, the entire assets & liabilities, and duties & obligations of its power division pertaining to the demerged Company, were transferred to and vested in the company with effect from 01-07-2010 (Appointed date). The scheme became effective on 28-02-2013 and accordingly has been given effect to these financial statements.

b) Details of Assets and Liabilities acquired pursuant to the Scheme of Arrangement (Demerger) and treatment of the difference between the net assets acquired and cost of investment by the Company in the Demerged Company together with the shares issued to the share holders of the Company.

Balance as at 01-07-2010

5. LICENCE AGREEMENT:

The Company has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall provide power to the company an interest free deposit of Rs.439,770,000/-. Accordingly it is grouped under unsecured loan.

6. SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2013.

Business Segment:

(a) The Company operates in Single Business Segment of ''Generation and distribution of power''. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

(b) The Company has not yet been successful in its efforts to appoint a Company Secretary to fulfill the requirements of Section 383A of the Companies Act, 1956.

7. PREVIOUS YEAR FIGURES:

The financial statements for the current year include the figures relating to Power Division of Kanishk Steel Industries Limited whose assets and liabilities have been transferred to and vested with the Company with effect from 01.07.2010 pursuant to a scheme of arrangement. Hence the current year figures are not comparable with that of the previous year. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2012

1. The company is yet to commence commercial operations.

2. Earnings in foreign exchange: Nil. Expenditure in foreign exchange is Rs. Nil.

3. The company did not owe any amount to micro and smal1 enterprises as defined under the Micro, Small and Medium Enterprises Development Act,

4. Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not Drovided for Rs Nil contiingent liablities not provided for NIl

5.Related Party Disclosures

Details of realted parties including summary of transcation entere into by the branch during the ended 31st march 22012 are suuuarized below

Note . Related party realtionship is as identified by the company and relied u0pon by the Auditors

Related party trasactions :

During the year no transactions were entered by the company with the related parties

6.Information with regard to the other matters specified in paragraph of part 11 of schedule vi of the Companies Act 1956 are eithter nil or not applicable to the company for the financial year

7. previous year are regrouped rerranged wherever necessary.