Notes to Accounts of GP Eco Solutions India Ltd.

Mar 31, 2025

2.3.12 PROVISIONS

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that an
outflow of resources embodying economic benefits
will be required to settle the obligation and a
reliable estimate can be made of the amount of the
obligation. The expense relating to any provision is
presented in the statement of profit or loss, net of
any reimbursement. If the effect of the time value
of money is material, provisions are discounted
using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision
due to the passage of time is recognised as part
of finance costs.

2.3.13 CONTINGENT LIABILITY AND CONTINGENT ASSETS

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognized because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses its existence in
the financial statements.

A contingent asset is a potential asset arising from
past events, whose existence will be confirmed by
future events not fully within the entity''s control.
These assets are not recognized in financial
statements because they depend on uncertain future
outcomes, and the inflow of economic benefits is
not guaranteed. However, they are disclosed if the
likelihood of the asset''s realization is more than

not. The Company does not recognized contingent
assets but are disclosed in the notes where an
inflow of economic benefits is probable.

2.3.14 EARNING PER SHARE

Basic earning per share is computed by dividing the
net profit after tax by the number of equity shares
outstanding during the period. Diluted earnings per
share is computed by dividing the profit after tax by
the average number of equity shares considered
for deriving basic earnings per share and also
the number of equity shares that could have been
issued upon conversion of all dilutive potential
equity shares. The diluted potential equity shares
are adjusted for the proceeds receivable had the
shares been actually issued at fair value which
is the average market value of the outstanding
shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity
shares are determined independently for each
period presented.

The number of equity shares outstanding during
the period is adjusted for events such as bonus
issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of
shares) that have changed the number of equity
shares outstanding, without a corresponding
change in resources.

2.3.15 GOVERNMENT GRANTS

Government grants available to the enterprise are
considered for inclusion in accounts:

(i) where there is reasonable assurance that the
enterprise will comply with the conditions
attached to them; and

(ii) where such benefits have been earned by the
enterprise and it is reasonably certain that the
ultimate collection will be made.

Mere receipt of a grant is not necessarily conclusive
evidence that conditions attaching to the grant have
been or will be fulfilled.

Grants related to specific fixed assets are
government grants whose primary condition is that
an enterprise qualifying for them should purchase,
construct or otherwise acquire such assets. Other
conditions may also be attached restricting the type
or location of the assets or the periods during which
they are to be acquired or held. The grant is shown
as a deduction from the gross value of the asset
concerned in arriving at its book value. The grant

is thus recognized in the profit and loss statement
over the useful life of a depreciable asset by way of
a reduced depreciation charge.

2.3.16 INVESTMENTS

Investments, which are readily realizable and
intended to be held for not more than one year
from the date on which such investments are
made, are classified as current investments.
All other investments are classified as long¬
term investments.

On initial recognition, all investments are measured at
cost. The cost comprises purchase price and directly
attributable acquisition charges such as bank charges,
fees, duties etc. If an investment is acquired, or partly
acquired, by the issue of shares or other securities,
the acquisition cost is the fair value of the securities
issued. If an investment is acquired in exchange
for another asset, the acquisition is determined by
reference to the fair value of the asset given up or by
reference to the fair value of the investment acquired,
whichever is more clearly evident.

2.3.17 CRITICALACCOUNTING JUDGEMENTS,ASSUMPTIONS
AND KEY SOURCES OF ESTIMATION UNCERTAINLY

The following are the critical judgements,
assumptions concerning the future, and key sources
of estimation uncertainty at the end of the reporting
period that may have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next Financial year.

i. Useful lives of property, plant and equipment

As described above, the charge in respect of
periodic depreciation for the year is derived after
determining an estimate of an asset''s expected
useful life and the expected residual value at
the end of its life. The useful lives and residual
values of Group''s assets are determined by the
management at the time the asset is acquired
and reviewed annually. The lives are based on
historical experience with similar assets as
well as anticipation of future events, which may
impact their life, such as changes in technical or
commercial obsolescence arising from changes
or improvements in production or from a change
in market demand of the product or service
output of the asset

ii. Employee benefits

The cost of defined benefit plans are
determined using actuarial valuation, which
involves making assumptions about discount

rates, expected rates of return on assets, future
salary increases, and mortality rates. Due
to the long-term nature of these plans, such
estimates are subject to significant uncertainty.

iii. Taxation

Significant assumptions and judgements are
involved in determining the provision for tax
based on tax enactments, relevant judicial
pronouncements and tax expert opinions,
including an estimation of the likely outcome
of any open tax assessments / litigations.
Deferred income tax assets are recognized
to the extent that it is probable that future
taxable income will be available, based on
estimates thereof. Significant assumptions are
also involved in evaluating the recoverability
of deferred tax assets recognised on
unused tax losses.

iv. Provisions and contingencies

Critical judgements are involved in
measurement of provisions and contingencies
and estimation of the likelihood of occurrence
thereof based on factors such as expert
opinion, past experience etc.

v. Impairment of Trade receivable - Expected
Credit loss

The Company makes allowances for doubtful
trade receivables (Expected Credit Loss
Allowance) based on a provision matrix which
takes into account Company''s past history and
adjusted for current estimates.

vi. Foreign Exchange Transactions:

A transaction in a foreign currency has been
recorded in rupees by applying to the foreign
currency the exchange rate existing at the time
of the transaction.

Assets and Liabilities are translated at
period-end exchange rates and the profit
or loss so determined and also the realized
exchange gains or losses are recognized in
profit & loss account

vii. Sundry parties balances whether in debit or in
credit are subject to confirmation.

viii. Previous yearsfigureshavebeenregroupedand
reclassified wherever considered necessary.

b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares 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 remaining assets
of the company,

after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by
the shareholders

a) Figures for the previous year have been re-grouped, reclassified, restated and re-arranged wherever necessary, in order to
make them comparable, to the best possible extent, with the figures of current year as per the requirements of schedule III
of the companies Act, 2013.

b) During the year under consideration, the company has given remuneration of H 140.00/-Lakh (Previous year remuneration H
85.00/-Lakh) to the directors of the company as per the provisions of the Companies Act 2013.

c) The Small-Scale Industrial Undertaking to whom an amount outstanding for more than 30 days is Nil as per management.

d) The Company has got confirmation from some of the parties (as required to be filed by the suppliers with the notified
authority under the Micro, Small and Medium enterprises Development Act, 2006) claiming their status as micro, small
and medium enterprises and on the basis of that details, the company has made the bifurcation in its financial statements.
However, the company has not made any provision of interest as required under MSMED.

e) Our company is actively involved in the business of distribution of a wide range of solar inverters and solar panels. As an
authorized distributor, we specialize in trading high-quality solar products serving as the representative of Sungrow for
their reliable solar inverters, Saatvik and LONGi for efficient and durable solar panels. We offer products of Sungrow, LONGi
and Saatvik in North India region, we also serve as an integrated solar energy solutions provider, delivering comprehensive
engineering, procurement, and construction ("EPC") services to our Commercial and residential customers. Our company
also has its own brand called "Invergy" through our wholly owned subsidiary named as "Invergy India Private Limited"
("Invergy"). Invergy sell hybrid solar inverters and lithium ferro phosphate batteries under the said brand. Invergy deals in
OEM manufacturing for Hybrid and LFP products. Invergy has its own quality and reliable protocol for contract manufacturing
of there said products. Invergy manages its own supply chain stream to provide easy and comfortable transitions.

n) Segment reporting

The Company is engaged in one segment of installation and operation of solar power project. The company do not have
any identifiable reportable business segment( In accordance with Accounting Standard 17) and hence business segment
information is required/not required to be disclosed.

o) Transfer Pricing

As per the Transfer Pricing Rules of the Income Tax Act, 1961, every Company is required to get a transfer pricing study
conducted to determine whether the international transactions with associated enterprises were undertaken at an arm''s
length basis for each financial year end. Transfer pricing study for the transactions during the year ended 31st March, 2025
is currently in progress and hence adjustments if any which may arise there from will be effective in the financial statements
for the year ended 31st March, 2025. However in the opinion of the Company''s management, adjustments, if any, are not
expected to be material.

p) Corporate Social Responsibility (CSR) Fund

The amount of H 12.25 lakhs/- (previous year H 6.75 Lakhs) being 2% of adjusted profit due under Corporate Social
Responsibilities under the provisions of Act, 2013 has been provided for in the books of account. The year wise breakup of
CSR provisions and spending has as follows:

As per our report of even date attached

For N K M R & CO. For and on Behalf of board of directors of

Chartered Accountants M/s GP Eco Solutions India Ltd.

Sd/- Sd/- Sd/-

CA Naveen Kumar Mittal Deepak Pandey Anju Pandey

(Partner) (Managing Director) (Director)

M. No. : 519921 DIN - 03141304 DIN - 03141290

FRN:028063N

Sd/- Sd/-

Tanushree Agarwal Neha Garg

(Company Secretary) (CFO)

UDIN: 25519921BMJBDZ9828 PAN-AJOPT1442J PAN-BAGPG3884B

Place : Noida

Date : 12 May,2025 Place : Noida

Date : 12 May,2025

---

Mar 31, 2024

II Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a

registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 - No

III where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

VI Details of Benami Property held - No

VII Where the Company has borrowings from banks or financial institutions on the basis of current assets - No

(a) whether quarterly returns or statements of current assets filed by The Company has secured Business Loan (CC/OD) of Rs. 3.74 crore outstanding at the end of the period the Company with banks or financial institutions are in agreement with 31.03.2024

the books of accounts. - Yes

(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed - NA

VIII Wilful Defaulter - No

a. Date of declaration as wilful defaulter, - NA

b. Details of defaults (amount and nature of defaults), - NA

IX Relationship with Struck off Companies'' - No

x Registration of charges or satisfaction with Registrar of Companies - Not Applicable

Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.

XI Compliance with number of layers of companies

Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be

XIII Compliance with approved Scheme(s) of Arrangements - NA

Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ''in accordance with the Scheme’ and ''in accordance with accounting standards’ and deviation in this regard shall be explained

XIV Utilisation of Borrowed funds and share premium: - NA XV Details of crypto currency or virtual currency: - NA

The Company has neither traded nor invested in cryptocurrency or virtual currency during the current or previous year.

Other Notes to Financial Statements for the year ended 31^st March 2024

a) Figures for the previous year have been re-grouped, reclassified, restated and re-arranged wherever necessary, in order to make them comparable, to the best possible extent, with the figures of current year as per the requirements of schedule III of the companies Act, 2013.

b) During the year under consideration, the company has given remuneration of Rs. 85.00/-Lakh (Previous year remuneration Rs. 45.00/-Lakh) to the directors of the company as per the provisions of the Companies Act 2013.

c) The Small-Scale Industrial Undertaking to whom an amount outstanding for more than 30 days is Nil as per management.

d) The company has got confirmation from some of the parties (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium enterprises Development Act, 2006) claiming their status as micro, small and medium enterprises and on the basis of that details, the company has made the bifurcation in its financial statements. However, the company has not made any provision of interest as required under MSMED.

e) Our company is actively involved in the business of distribution of a wide range of solar inverters and solar panels. As an authorized distributor, we specialize in trading high-quality solar products serving as the representative of Sungrow for their reliable solar inverters, Saatvik and LONGi for efficient and durable solar panels. We offer products of Sungrow, LONGi and Saatvik in North India region, we also serve as an integrated solar energy solutions provider, delivering comprehensive engineering, procurement, and construction ("EPC") services to our Commercial and residential customers. Our company also has its own brand called "Invergy" through our wholly owned subsidiary named as “Invergy India Private Limited" (“Invergy"). Invergy sell hybrid solar inverters and lithium ferro phosphate batteries under the said brand. Invergy deals in OEM manufacturing for Hybrid and LFP products. Invergy has its own quality and reliable protocol for contract manufacturing of there said products. Invergy manages its own supply chain stream to provide easy and comfortable transitions.

i) Contingent liabilities

The company has the following outstanding bank Guarantees:

Party Name (In favor)	Purpose	Amount (INR)	Secured Against
Sungrow India Pvt Ltd	To avail credit facility for goods in trade	80.00	It is secured against 15% bank FD
Sungrow India Pvt Ltd	To avail credit facility for goods in trade	320.00	It is secured against 15% bank FD

Capital Structure and Shareholding Pattern

The authorized share capital of the Company is Rs. 1200 lakhs (12,000,000 Equity shares of Rs. 10/-each.) The paid-up share capital Rs.843.48 lakhs (8434800 Equity shares of Rs. 10/- each).

m) The director of the company, Mr. Deepak Pandey, has opened a new LLC in Dubai on 20.07.2022 under the name of Invergy Power General Trading Co LLC with a share capital of DHS 2,00,000/-. The company has give n an advance of Rs.00.55 crore to the LLC during the year under consideration out of which goods worth of Rs.1.55 crore has been imported and balance of Rs.1.87 crore is still outstanding as an advance with M/s. Invergy Power General Trading Co LLC as on 31.03.2024.

n) Segment reporting

The Company is engaged in one segment of installation and operation of solar power project. The company do not have any identifiable reportable business segment( In accordance with Accounting Standard 17) and hence business segment information is required/not required to be disclosed.

o) UDIN (Unique Document Identification Number)

We initially generated a UDIN (Unique Document Identification Number) on August 5th,2024 for the purpose of a limited review report instead of company audit. This statement makes it clear that two separate UDINs were issued on the same date.

p) Approval of Consolidated Financial Statement

The consolidated financial statement were approved for issue by the Board of director on August 5th, 2024

q) Transfer Pricing

As per the Transfer Pricing Rules of the Income Tax Act, 1961, every Company is required to get a transfer pricing study conducted to determine whether the international transactions with associated enterprises were undertaken at an arm''s length basis for each financial year end. Transfer pricing study for the transactions during the year ended 31st March, 2024 is currently in progress and hence adjustments if any which may arise there from will be effective in the financial statements for the year ended 31st March, 2024. However in the opinion of the Company''s management, adjustments, if any, are not expected to be material.