Notes to Accounts of Advait Energy Transitions Ltd.

Mar 31, 2025

N. Provision, Contingent Liabilities and Contingent
Assets
Provisions

A provision is recognized when the Company has a
present obligation as a result of past events and it is
probable that an outflow of resources will be required
to settle the obligation in respect of which a reliable
estimate can be made.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows esti mated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).

Contingent liability

A possible obligation that arises from past events
and the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the enterprise are disclosed as contingent liability
and not provided for. Such liability is not disclosed if
the possibility of outflow of resources is remote.

Contingent assets

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the
control of the entity.

Contingent assets are not recognised but disclosed
only

O. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company''s cash management.

P. Earnings per share

Basic Earnings per share is calculated by dividing the
net profit for the period attributable to the equity
shareholders by the weighted average number
of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, the net profit for the period attributable to
the equity shareholders and the weighted average
number of equity shares outstanding during the
period is adjusted for the effects of all dilutive
potential equity shares.

Q. Cash flows

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items
and tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments and item
of income or expenses associated with investing or
financing cash flow. The cash flows from operating,
investing and financing activities of the Company are
segregated based on available information.

R. Current / non-current classification

An asset is classified as current if:

a) It is expected to be realized or sold or consumed
in the Company''s normal operating cycle;

b) It is held primarily for the purpose of trading;

c) It is expected to be realized within twelve
months after the reporting period; or

d) It is cash or cash equivalents unless it is
restricted from being exchanged or used to
settle a liability for at least twelve months after
the reporting period.

All other assets are classified as non-current.

A liability assets is classified as current if;

a) It is expected to be settled in normal
operating cycle;

b) It is held primarily for the purpose of trading;

c) It is expected to be settled with in the twelve
months after the reporting period;

d) It has no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the between acquisition of
assets for processing / trading / assembling and their
assembling and their realization in cash and cash
equivalents. The Company has identified twelve
months as its operating cycle.

S. Dividends

Final dividend on shares is recorded as a liability on
the date of approval by the shareholders and Interim
dividend share recorded as a liability on the date of
declaration by the Company''s Board of Directors.

Footnotes:

1 On July 4, 2024, the Board of Directors, at its meeting, approved the issuance and allotment of 5,92,940 equity shares of ?10
each at a price of ?1,388 per equity share (including a premium of ?1,378 per equity share) by way of preferential allotment, in
accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("the Regulations" ), aggregating to
approximately ?82.30 crore

2 During the period, employees exercised 7,653 stock options at an exercise price of ?10 per equity share, resulting in the
allotment of an equivalent number of equity shares under the Advait Infratech Limited ESOP Scheme 2022, in accordance with
the provisions of the said scheme. The issuance is in compliance with the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021

3 The shareholders of the Company, at their Extra-Ordinary General Meeting held on August 7, 2024, approved the issue of
convertible warrants. Subsequently, in-principle approval was granted by BSE Limited on August 21, 2024. Upon receipt of
?6.29 crore, representing 25% of the total amount payable towards the subscription of the warrants from the allottees, the
Board of Directors, at its meeting held on September 5, 2025, considered and approved the allotment of 1,41,591 warrants, each
convertible into one equity share of the Company having a face value of ?10 each and a premium of ?1,766 each. These warrants
are convertible within a period of 18 months from the date of allotment i.e. September 5, 2024.

4 On March 1,2025, the Board of Directors accorded its consent for the allotment of 19,261 equity shares of ?10 each at a premium
of ?1,766 per equity share, pursuant to the conversion of 19,261 warrants into equity shares, upon receipt of the balance 75%
payment amounting to ?2.57 crore from the respective allottees.

Notes

(i) Securities premium is used to record the premium on issue of shares. This can be utilised in accordance with the provisions of
the Companies Act, 2013.

(ii) The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
General Reserve is created by the transfer from one component of equity to another and is not an item of other comprehensive
income. This can be utilised in accordance with the provisions of Companies Act, 2013.

(iii) Exchange differences of foreign operations arising on translation of the foreign operation are recognised in other comprehensive
income and accumulated in a separate reserve within equity.

(iv) Reserve for remeasurement of defined benefit obligations represents the effects of remeasurement of defined benefit
obligations on account of actuarial gains and losses.

(v) Retained earnings represents accumulated profit of the Company as on reporting date. The reserve can be utilised in accordance
with the provisions of the Companies Act, 2013.

40 DISCLOSURES PURSUANT TO IND AS 19 EMPLOYEE BENEFITS

(a) Define contribution plans:

The Company has certain defined contribution plans in which both employee and employer contribute monthly, at the rate of 12%
of basic salary, as per regulations to provident fund set up as trust and to the respective regional provident fund commissioner.

The Company''s contributions to provident fund, pension scheme and employee state insurance scheme are made to the
relevant government authorities as per the prescribed rules and regulations. The Company''s contributions to the above
defined contribution plans are recognised as employee benefit expenses in the statement of profit and loss for the year in
which they are due

The Company''s contribution to provident, pension, superannuation funds and to employees state insurance scheme aggregating
to '' 3.54 Lakhs (Previous year - '' 1.55 lakhs) has been recognised in the statement of profit and loss under the head employee
benefits expense [Refer note 33]

(b) Defined benefits plans:

(i) Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity shall be
payable to an employee on the termination of his employment after he has rendered continuous service for not less than
five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum period of
five years shall not be required. The amount of gratuity payable on retirement is the employees last drawn basic salary per
month computed proportionately for 15 days salary multiplied by the number of year''s service completed.

(ii) Risk exposure to defined benefit plans

The plans typically expose the Company to actuarial risks such as: Investment risk, Liquidity risk, Market risk and
Legislative risk.

Actuarial risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity
Benefits will be paid earlier than expected. Since there is no condition ofvesting on the death benefit, the acceleration of cash
flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: tf actual withdrawal rates are higher than assumed withdrawal rate assumption than the
Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as
at the resignation date.

Investment risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.

Liquidity risk:

Employees with high salaries and long dL1rations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the Company there can be strain on the cash flows.

Market risk:

Market risk Is a collective term for risks that are related to the changes and fluctuations of the financial markets One actuarial
assumption that has a material effect is the discount rate. The discount rate reflects the time.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in
calculating the defined benefit obligation liability recognized in the balance sheet.

(c) Employee Share based Payment Plan

The Company has the share option plan schemes for permanent employees of the Company in the identified grades of
employees for respective plans / schemes including any Director except promoter or independent Directors, nominee Directors
and non-executive Directors or a Director who either himself or through relatives or through anybody directly or indirectly
holds more than 10% of the outstanding equity shares of the parent Company.

[A] ADVAIT EMPLOYEE STOCK OPTION PLAN 2022 (ESOP 2022)

The award value shall be determined as percentage of Total Fixed Pay. The grant shall be at such price as may be determined
by the Committee and shall be specified in the Grant letter. The option shall not be transferable and can be exercised only
by the employees of the Company.

The number of options to be granted to each eligible employees is determined by dividing the Award Value (amount
equivalent to percentage of Annual Fix Pay) by the Fair Value of option provided. The Fair Value of option on the date of
each grant is determined by using Black Scholes model.

The acquisitions provide the Company with expansion into strategic business segments, enabling operational synergies and market
diversification.

The financial results of each subsidiary have been consolidated from their respective acquisition dates, and all interCompany
transactions and balances have been eliminated upon consolidation.

During the year, the Company''s equity interest in its subsidiary Advait Greenergy Private Limited was reduced as a result of a fresh
issue of equity shares by the subsidiary to outside investors. Prior to the issue, the Company held 76.31% of the equity share capital,
which reduced to 66.91% following the allotment of new shares. Despite the dilution, the Company continues to retain control over
Advait Greenergy Private Limited, and accordingly, it remains consolidated in the financial statements. In accordance with Ind AS 110
Consolidated Financial Statements, such a transaction is treated as an equity transaction since control is retained.

42 CONTINGENT LIABILITIES AND COMMITMENTS

The Company''s pending litigations comprise mainly claims against the Company, property disputes, proceedings pending with Tax
and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions,
wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements.

Note :

1 The total amount of Claims against the group not acknowledged as debts include '' 14.16 lakh from the service tax department
and '' 397.68 lakh from the Office of the Commissioner of Customs (SN-V). This demand include the Interest & Penalty till the
demand notice received. Corporate guarantee of '' 2000 lakh given to ICICI bank on behalf of its Subsidary and The Company
has provided contract performance guarantees in favour of customers amounting to ? 2,065.71 lakh (? 20.66 crore) as at 31
March 2025. These guarantees are contingent upon the non-fulfilment of contractual obligations by the Company.

2 The contingent liabilities amount to '' 15,211 lakh, comprising '' 3,739 lakh in letters of credit and bill payments, and '' 11,472 lakh
in bank guarantees provided to various customers by the Company.

3 In the previous year''s financial statements, a disputed income tax demand of ? 11.96 lakh was disclosed under "Disputed Demand

of Income-tax" in the contingent liabilities note. During the current year, the Company has paid the said demand, and the matter
fully settled. Accordingly, no amount is disclosed under contingent liabilities in respect of this matter as at 31 March 2025.

43 THE COMPANY HAS GIVEN LOANS TO ITS SUBSIDIARY COMPANIES AS UNDER

(a) Dislousre under Regulation 34(3) read with para A of Schedule V of Securities and Exchanges Board of India (SEBI) (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time to time):

46 FINANCIAL INSTRUMENT AND RISK MANAGEMENT
(a) Capital management

The Company manages its capital structure in manner to ensure that it will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company''s capital structure is represented by equity (comprising issued capital, retained earnings and other reserves as
detailed in notes 14 and 15) and debt (borrowings as detailed in note 22).

The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the
management considers the cost of capital and the risks associated with each class of capital. The Company''s plan is to ensure
that the gearing ratio (debt equity ratio) is well within the limit of 2:1. The Company review dividend policy from time to time.

Notes

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fa ir value that are either observable
or unobservable and consists of the following three levels:

Level 1: Inputs are Quoted (unadjusted) market prices in active markets for identical assets or liabilities. This includes quoted
equity instruments, investments in mutual funds that have quoted price.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable. This includes unquoted floating and fixed rate borrowing.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
This includes unquoted equity shares, loans, security deposits, investments in Debentures, floating rate borrowings.

(d) Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables. cash and cash equivalents, other bank balances, other
financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to their short-term
nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities
subsequently measure significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair.

(e) Financial risk management

The Company''s board of Directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The board has established the key management personnel, which is responsible for developing and
monitoring the Company''s risk management policies. The key management personnel holds regular meetings and report to
board on its activities.

The Company''s risk management policies are established to identify and analysis the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The board of Directors oversees the following risk how key management personnel monitor compliance with the Company''s
risk management polices and procedures;

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices.

Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include
loans and borrowings, trade receivables and trade payables involving instruments affected by market risk include loans
and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the
following sections relate to the position as at March 31, 2025 and March 31, 2024.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rate. The Company is exposed to foreign currency risk due to import of materials.
The Company measures risk through sensitivity analysis.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s debt obligations with floating interest rates. As the Company has certain debt obligations
with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in
market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material
movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially
independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, investments in mutual funds, cash and cash
equivalent and other balances with banks.

In respect of trade receivables, credit risk is being managed by the Company through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms
in the normal course of business. All trade receivables are also reviewed and assessed for default on a regular basis.
The concentration of credit risk is limited due to the fact that the customer base is large.

(C) Liquidity risk

(i) Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature
of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

(ii) Management monitors rolling forecasts of the Company liquidity position and cash and cash equivalents on the basis
of expected cash flows. The Company takes into account the liquidity of the market in which it operates. In addition,
the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the
level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external
regulatory requirements and maintaining debt financing plans

Maturities of financial liabilities:

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted
cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant

48 CODE ON SOCIAL SECURITY, 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post- employment benefits

received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on

which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into

effect and will record any related impact after the code become effective.

49 OTHER DISCLOSURES

a) No proceedings have been initiated on or are pending against any of the entities in the Company for holding benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

b) None of the entities in the Company have been declared wilful defaulter by any bank or finanacial institution or government
or any government authority.

c) The Company has not traded or invested in crpto currency or virtual currency during the current or pervious year.

d) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

e) There is no income surrendered or disclosed as income during the current or pervious year in the tax assessments under
the Income Tax Act, 1961 that has not been recorded in the books of account.

f) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets or
both during the current or pervious year.

g) The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for
which such loans were taken.

h) There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

50 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES:

There are certain charges which are historical in nature, and it involves practical challenges in obtaining no-objection certicates
(NOCs) and/or getting requisite formalities completed towards charge satisfaction from the charge holders ofsuch charges, despite
repayment of the underlying loans. The Company is in the continuous process of getting the charge satisfaction e-form led and
processed with MCA, within the timelines,

51 UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS

The borrowings obtained by the Company from banks and nancial institutions have been applied for the purposes for which such
loans were taken.

52 UNDISCLOSED INCOME:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.

53 The Board of Directors have recommended a dividend of '' 1.75 per equity share for the financial year 2024-25, subject to
approval by shareholders at the Annual General Meeting and if approved, would result in cash outflow of '' 191.49 Lakh,
which has not been included as liability in these standalone financial statements.

54 The financial statement were approved for issue by the Board of Directors on 12^th May, 2025.

55 Previous year''s figure have been regroup and rearranged, whenever necessary.

Signatures to Notes 1 to 55 which form an integral part of financial statements.

In terms of our report of even date For and on behalf of the Board of Directors of

For V. Goswami & Co. ADVAIT ENERGY TRANSITIONS LIMITED

Firm Reg No. 128769W
Chartered Accountants

VIPUL GOSWAMI SHALIN SHETH REJAL SHETH DEEPA FERNANDES

Partner Managing Director Whole-time Director & Company Secretary

Membership No. 119809 DIN:02911544 Chief Financial Officer (PAN No. AOUPM6271R)

Place: Ahmedabad DIN:02911576

Date: 12^th May 2025

---

Mar 31, 2024

12.3Terms & Rights attached to equity shares:

i) The company has only one class of equity shares having a par value of ' 10 each. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject subject to approval of the shareholders in the ensuring Annual General Meeting.

12.4Dividend Proposed :

i) The Board of Directors, in the meeting on 30^th May, 2024, have proposed a final dividend of ' 1.5 per equity share for the year ended 31^st March, 2024. The proposed is subject to the approval of shareholders at the ensuing Annual General Meeting.

1)    Securities premium

Securities premium reflects issuance of the shares by the Company at a premium, whether for cash or otherwise I.e. a sum equal to the aggregate amount of the premium received on shares is transferred to a "securities premium account" as per the provisions of the Companies Act, 2013. The reserve can be utilised in accordance with the provisions of the Act.

2)    Retained earnings

The retained earnings reflect the profit of the company earned till date net of appropriations. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the balance in this reserve, after considering the requirements of the Companies Act. 2013.

1    Rupee Term Loan aggregating to ' 386.13 Lakhs (31^st March, 2023 : ' 517.34 Lakhs and 31^st March, 2022 : ' 511.20 Lakhs) included in Note 14 (i) and 20(iii) is secured on exclusive charge basis by (a) First Charge by way of hypothecation of moveable fixed asset of the company situated in the Gujarat. (b) Second Charge by way of equitable mortgage of immovable assets of the Company situated in the State of Gujarat.

2    Rupee Term Loan aggregating to ' 175.27 Lakhs (31^st March, 2023 : ' 214.51 Lakhs) included in Schedule 14 (i) and 20(iii) is secured on exclusive charge basis by (a) First Charge by way of hypothecation of moveable fixed asset of the company situated in the Gujarat. (b) Second Charge by way of equitable mortgage of immovable assets of the Company situated in the State of Gujarat.

3    Demand Loan aggregating to ' 546.09 Lakhs included in Schedule 20(i) is secured on exclusive charge basis by way of hypothecation of Liquid asset of the promoter of the company.

4    Demand Loan aggregating to ' 983.41 Lakhs included in Schedule 20(i) is secured on exclusive charge basis by way of hypothecation of Liquid asset of the company.

5    Demand Loan aggregating to ' 503.07 Lakhs included in Schedule 20(i) is secured on exclusive charge basis by way of hypothecation of Liquid asset of the company.

6    Working capital facility aggregating to ' 555.87 Lakhs included in Schedule 20(ii) are secured on a pari passu basis by (a) on the current assets of the Company (Present and future) (b) Second charge by the way of exclusive charge on the immovable properties situated in the state of Gujarat and Liquid assets of the company.

7    An unsecured loan from other parties includes loans from directors and NBFC, and the same are repayable on demand at the rate agreed upon in the terms of the agreement. (From Oxyzo financial service a NBFC @ 15% and from director as interest free)

37 DISCLOSURES PURSUANT TO IND AS 19 EMPLOYEE BENEFITS

(a) Define contribution plans:

The Company has certain defined contribution plans in which both employee and employer contribute monthly, at the rate of 12% of basic salary, as per regulations to provident fund set up as trust and to the respective regional provident fund commissioner.

The Company's contributions to provident fund, pension scheme and employee state insurance scheme are made to the relevant government authorities as per the prescribed rules and regulations. The Company's contributions to the above defined contribution plans are recognised as employee benefit expenses in the statement of profit and loss for the year in which they are due.

The Company's contribution to provident, pension, superannuation funds and to employees state insurance scheme aggregating to ' 1.55 Lakhs (Previous year - ' 5.89 lakhs) has been recognised in the statement of profit and loss under the head employee benefits expense [Refer note 30]

(b) Defined benefits plans:

(i)    Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum period of five years shall not be required. The amount of gratuity payable on retirement is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years' service completed.

(ii)    Risk exposure to defined benefit plans

The plans typically expose the Company to actuarial risks such as: Investment risk, Liquidity risk, Market risk and Legislative risk.

Actuarial risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: tf actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

Investment risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

Liquidity risk:

Employees with high salaries and long dL1rations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

Market risk:

Market risk Is a collective term for risks that are related to the changes and fluctuations of the financial markets One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at 31^st March, 2024 by M/s Trueval Consulting. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

(c) Employee Share based Payment Plan

The Company has the share option plan schemes for permanent employees of the Company in the identified grades of employees for respective plans / schemes including any director except promoter or independent directors, nominee directors and non-executive directors or a director who either himself or through relatives or through anybody directly or indirectly holds more than 10% of the outstanding equity shares of the parent company.

[A] ADVAIT EMPLOYEE STOCK OPTION PLAN 2022 (ESOP 2022)

The award value shall be determined as percentage of Total Fixed Pay. The grant shall be at such price as may be determined by the Committee and shall be specified in the Grant letter. The option shall not be transferable and can be exercised only by the employees of the Company.

The number of options to be granted to each eligible employees is determined by dividing the Award Value (amount equivalent to percentage of Annual Fix Pay) by the Fair Value of option provided. The Fair Value of option on the date of each grant is determined by using Black Scholes model.

Note

1    Pricing Formula : Excerise Price is fixed by the committee at the time of granting option

2    Fair Value : The Fair value is calculated by using Black Scholes method

3    Expected Volatility : Volatility was calculated using standard deviation of daily change in stock price.

38    Business combination:

During the year, the company made a strategic investment by acquiring a 100% stake in Advait Greenergy Private Limited at ' 10/-each on 4^th July, 2023. This move was aimed at expanding the business in the Green Sector. However, by the year-ending on 31^st March, 2024, the company had reduced its holding reduced to 76.31% by issuing fresh equity by Advait Greenergy private Limited (AGPL) to the other investors.

39    Contingent Liabilities and Commitments

The Company's pending litigations comprise mainly claims against the Company, property disputes, proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements.

1    No amount in respect of related parties have been written off/ written back during the year, nor has any provision been made for doubtful debts/ recevables during the year.

2    Related party relationships have been identified by the management and relied upon by the Auditors.

3    Terms and conditions of sales and purchase: the sales and purchase transactions among the related parties are in the ordinary course of business based on normal commercial terms, conditions, market rates, and a memorandum of understanding signed with the related parties.

41 Disclosure as per Ind AS 101 First-time adoption of Indian Accounting Standards:

(a) Overall principle:

The Company has migrated to mainboard from SME on Bombay Stock Exchange, So prepared the opening balance sheet as per Ind AS as of 1^st April, 2022 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities.

However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below:

Deemed cost for property, plant and equipment and intangible assets:

The Company has elected to continue with the carrying value of all of its plant and equipment, capital workin- progress and intangible assets recognised as of 1^st April, 2022 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

Classification and measurement of financial assets:

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss . Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

ii.    Financial liabilities and related transaction cost at amortised cost:

Processing fees on borrowing which were recognised at historical cost under previous GAAP have been recognised at amortised cost under IndAS with the difference been adjusted to opening retained earnings. Under Previous GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to statement of profit or loss. Under IND AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged to statement of profit or loss over the tenure of the borrowings using the effective interest rate method.

iii.    Defined benefit liabilities:

Under IND AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss

iv.    Depreciation of property, plant and equipment

Under the previous IGAAP, The company follow WDV method for calculation of depreciation. Now Company change method of depreciation has been changed from WDV to SLM in compliance with the Indian Accounting Standards applicable to the Company from 1t April 2023.

Accordingly the Written Down Value of the Fixed Assets as on 1^st April 2021 were taken as the deemed cost of Property, Plant & Equipment as per Ind AS 101 and the depreciation for the financial years 2021-22 and 2022-23 were recalculated. Depreciation was reduced in 2021-22 by ' 10.28 Lakhs and in 2022-23 by ' 181.05 lakhs. The effect of reduction of depreciation has been been recorded in Retained Earnings.

v.    Deferred Tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IND AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of IND AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

vi.    Other comprehensive income:

Under IndAS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as 'other comprehensive income' includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

vii.    Remeasurement of gratuity recognised in other comprehensive income

Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability I asset and are recognised in other comprehensive income. Under previous GAAP, actuarial gains and losses were recognised in statement of profit and loss.

viii.    Fair valuation of investment in equity recognised in other comprehensive income

Under Ind AS, Investment in unqouted equity shares of joint venture and subsidaires are valued at cost due to relaxation given in IndAS 101. Quoted equity and mutual fund is classified for fair value through other comprehensive income. Under previous GAAP, investment are carried at cost.

42 As the Company's business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclousre requirements as per IndAS-108 "Segment Reporting" issued by the Ministry of Corporate Affairs. However, the company has a geographical turnover and hence it require to be reported.

43 Financial instrument and risk management (a) Capital management

The Company manages its capital structure in manner to ensure that it will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company's capital structure is represented by equity (comprising issued capital, retained earnings and other reserves as detailed in notes 12 and 13) and debt (borrowings as detailed in note 20).

The Company's management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. The Company's plan is to ensure that the gearing ratio (debt equity ratio) is well within the limit of 2:1.

Debts is defined as all long term debt outstanding (including unamortised expense) + Contingent liability pertaining to corporate I financial guarantee given + Short term debt outstanding in lieu of long term debts.

Total Equity is defined as Equity share capital+ all reserve (excluding revaluation reserve) + deferred tax liabilities - deferred tax assets - intangible assets - intangible asset under development.

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fa ir value that are either observable or unobservable and consists of the following three levels:

Level 1: Inputs are Quoted (unadjusted) market prices in active markets for identical assets or liabilities. This includes quoted equity instruments, investments in mutual funds that have quoted price.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. This includes unquoted floating and fixed rate borrowing.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. This includes unquoted equity shares, loans, security deposits, investments in Debentures, floating rate borrowings.

(d)    Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables. cash and cash equivalents, other bank balances, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities subsequently measure significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair.

(e)    Financial risk management

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board has established the key management personnel, which is responsible for developing and monitoring the Company's risk management policies. The key management personnel holds regular meetings and report to board on its activities.

The Company's risk management policies are established to identify and analysis the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The board of directors oversees the following risk how key management personnel monitor compliance with the Company's risk management polices and procedures;

(A)    Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31,2024 and March 31,2023.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31,2023

(i)    Foreign currency exchange rate risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign currency risk due to import of materials. The company measures risk through sensitivity analysis. No outstanding amount is payable for purchase of imported material as on March 31,2024.

(ii)    Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B)    Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, investments in mutual funds, cash and cash equivalent and other balances with banks.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. All trade receivables are also reviewed and assessed for default on a regular basis. The concentration of credit risk is limited due to the fact that the customer base is large.

(C)    Liquidity risk

(i)    Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

(ii)    Management monitors rolling forecasts of the Company liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which it operates. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans

Maturities of financial liabilities:

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant

45    Code on social security, 2020

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post- employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes into effect and will record any related impact after the code become effective.

46    The financial statement were approved for issue by the Board of Directors on 30th May, 2024.

47    Previous year's figure have been regroup and rearranged, whenever necessary.

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Mar 31, 2023

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

1.13 Prior Period Adjustment, Extraordinary Items and Changes in Accounti ng Policies

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

1.14 Leases

Asset held under lease

Leases of property, plant and equipment that transfer substantially all the risks and rewards of ownership are classified as finance leases. All the other leases are classified as operating leases. Assets held under operating leases are neither recognised (in case the Company is lessee) nor derecognized (in case the Company is lessor) from the Company''s Balance Sheet.

Lease payments

Payments made or received under operating leases are generally recognised in profit or loss on a straight-line basis over the term of the lease unless such payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

30. The inventories are shown on the basis of physical stock as at the end of the year as certified by the Management.

31. Balances of Sundry Creditors, Sundry Debtors, Loans and Advances are subject to confirmation and reconciliation, if any.

32. Details of Dues to Micro, Small & Medium Enterprises as defined under MSMED Act, 2006

Steps have been taken to identify the suppliers who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from some of the suppliers regarding their status under the said Act as at 31st March 2022, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

33. In the opinion of the Board of Directors, Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated and all known liabilities are provided for.

34. The management of the company has, during the period. Caried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 issued by the institute of Chartered Accountants of India. Based on the judgment of the managment and certified by the Directors, no provision for impairment is found to be necessary in respect of any assets.

35 As the Company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements as per Accounting Standard AS-17 "Segment Reporting" issued by the I nstitute of Chartered Accountants of I ndia are not applicable

Based on aforesaid assessment, management believes that as per estimates made conservatively, the Company will continue as a going concern and will be able to discharge its liabilities and realise the carrying amount of its assets as on March 31,2023

36 Previous year''s figure have been regrouped and rearranged, wherever necessary.

37 The amounts in the Balance Sheet and Profit & Loss Account are rounded off to Lakhs

For V.GOSWAMI & CO For and on behalf of the Board of Directors for. ADVAIT INFRATECH

Chartered Accountatns LIMITED

Firm Reg No. 128769W

Sd/- Sd/- Sd/- Sd/-

Vipul Gosawami Daisy Mehta Shalin Sheth Rejal Sheth

Partner Company Secretary Director Director

Mem No. 119809 DIN:02911544 DIN : 029115765

Date : 20^th May, 2023 Place : Ahmedabad

For V.GOSWAMI & CO For and on behalf of the Board of Directors for. ADVAIT INFRATECH

Chartered Accountatns LIMITED

Firm Reg No. 128769W

Sd/- Sd/- Sd/- Sd/-

Vipul Gosawami Daisy Mehta Shalin Sheth Rejal Sheth

Partner Company Secretary Director Director

Mem No. 119809 DIN:02911544 DIN : 029115765

Date : 20^th May, 2023 Place : Ahmedabad