Accounting Policies of Hi-Green Carbon Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies:

(a) Basis of preparation of financial statements:

(i) The Company was Small and Medium Sized Company (SMC) as defined under Rule 2(1)(e) of
the Companies (Accounting Standards) Rules, 2021 notified under the Companies Act, 2013
and it availed of the exemption or relaxations available to SMCs. From the financial year 2023¬
24, the Company is no longer SMC.

(ii) These financial statements have been prepared to comply with the Generally Accepted
Accounting Principles in India (Indian GAAP).

(iii) The financial statements are prepared on accrual basis under the historical cost convention.
The financial statements are presented in Indian rupees rounded off to the Lakhs of rupees
and decimal thereof.

(b) Changes in accounting policy:

(i) During the year ended on 31 March 2025, there is no change in accounting policy having
significant impact on presentation and disclosure made in the financial statements. The
company has also reclassified the previous year figures in accordance with the requirements
applicable in the current year.

(c) Use of estimates:

(i) The preparation of financial statements in conformity with Indian GAAP requires judgments,
estimates and assumptions to be made that affect the reported amount of assets and
liabilities, disclosure of contingent liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.

(ii) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the
accounting estimates are recognized in the period in which such revisions are revised and
future periods affected.

(d) Inventories:

(i) Inventories are assets (a) held for sale in the ordinary course of business; (b) in the process of
production of such sale; or (c) in the form of materials or supplies to be consumed in the
production process or in the rendering of services.

(ii) Cost of inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective present location and
condition.

(iii) Inventories are valued as under.

(iv) Costs are assigned by using weighted average method after providing for obsolescence, if any.

(e) Revenue recognition:

(i) Revenue is recognized only when risks and rewards incidental to ownership are transferred
to the customer and the company retains no effective control of the goods so transferred to a
degree usually associated with ownership and it can be reliably measured and it is reasonable
to expect ultimate collection.

(ii) Revenue from operations includes sale of goods, and services and sales during trial run
period, (excluding any indirect taxes levied on the company and collected by it from
customers and clients), and adjusted for discounts (net).

(iii) Revenue is measured by the charges made to customers or clients for goods supplied and
services rendered to them and by the charges and rewards arising from the use of resources
by them.

(iv) Claims for damages etc. against the contractors/service providers are recognized on due
basis, as and when the certainty to receive the claim is ascertained.

(v) Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the interest rate applicable. Export incentives are recognized as and when
right to receive is established.

(vi) During the financial year ended on 31 March 2025, there were no circumstances in which
revenue recognition has been postponed pending the resolution of significant uncertainties.

(vii) Goods and services tax is accounted for at the time of removal of goods cleared / services
provided and recognized separately from revenue from operations.

(f) Property, Plant, and Equipment:

Tangible Items:

(i) Property, plant and equipment are tangible items that (a) are held for use in the production or
supply of goods or services, for rental to others or for administrative purposes; and (b) are
expected to be used during more than a period of twelve months.

(ii) The costs of tangible items are recognized as an asset if, and only if (a) it is probable that
future economic benefits associated with the item will flow to the company; and (b) the costs
of item can be measured reliably.

(iii) The costs of each property, plant and equipment are measured at Cost less any accumulated
depreciation and any accumulated impairment losses.

(iv) The cost of Property, Plant & Equipment comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working condition for its intended use,
net charges on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the assets.

Intangible Assets:

(v) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/depletion and impairment loss, if any. The cost comprises purchase price,
borrowing costs, and any cost directly attributable to bringing the asset to its working
condition for the intended use and net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the intangible assets.

(g) Depreciation, amortization and depletion:

Tangible assets:

(i) Depreciation on Property, Plant & equipment is provided to the extent of depreciable amount
on the Written down value (WDV) Method. Depreciation is provided based on useful life of the
assets as prescribed in Schedule II to the Companies Act, 2013.

(ii) In respect of additions or extensions forming an integral part of existing property, plant and
equipment and insurance spares, including incremental cost arising on account of translation
of foreign currency liabilities for acquisition of property, plant and equipment, depreciation
is provided as aforesaid over the residual life of the respective property, plant and equipment.

(iii) The useful life of the property, plant, and equipment is mentioned hereunder.

(h) Foreign Currency Transactions:

(i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing
on the date of the transaction or that approximate of the actual rate at the date of transaction.

(ii) Monetary items denominated in foreign currencies at the year-end are restated at year end
rates.

(iii) In case of items which are covered by forward exchange contracts, the difference between the
year-end rate and rate on the date of the contract is recognized as exchange difference and the
premium paid on forward contracts is recognized over the life of the contracts/in time
proportion basis.

(iv) Any income or expense on account of exchange difference either on settlement or on
translation is recognized in the Profit and Loss statement except in case of long-term
liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to
the carrying costs of such assets.

(i) Investments:

(i) Investments are assets held by the company for earning income by way of interest, rental or
dividends, for capital appreciation, or for other benefits to the company.

(ii) Investments are classified as current and non-current investments.

(iii) Current investments are carried at lower of cost and quoted/fair value, computed category-
wise.

(iv) Non-Current investments are stated at cost. Provision for diminution in the value of non¬
Current investments is made only if such a decline is other than temporary.

(v) The company has made investment of (i) ^ 500.00 lakhs in wholly owned subsidiary company
Shantol Recycling Private Limited, (ii) ^ 170.00 lakhs in wholly owned subsidiary company
Samsara Recycling Private Limited and (iii) ^ 0.51 lakhs in subsidiary company Green Valley
Hydrocarbon Private Limited. This is shown in the financial statements under Non-current
Investments.

(j) Employee Benefits:

Short Term Employee Benefits:

(i) The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognized as an expense during the period when
the employees render the services. These benefits include performance incentive and
compensated absences.

Post-employment benefits defined contribution plans:

(ii) A defined contribution plan is a post-employment benefit plan under which the Company
pays specified contributions to a separate entity. The Company makes specified monthly
contributions towards Provident Fund, State Government Schemes. The Company''s
contribution is recognized as an expense in the Profit and Loss Statement during the period in
which the employee renders the related service.

Post-employment benefits defined benefit plans:

(iii) The Liability in respect of defined benefits in the form of gratuity, leave encashment, post¬
retirement medical scheme is provided based on the percentage notified by the Government.

(iv) See Note No. 26 of the financial statement attached herewith for details.

(k) Borrowing costs:

(i) Borrowing costs include exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

(ii) Borrowing costs that are attributable to the acquisition or construction of qualifying assets
are capitalized as part of the cost of such assets.

(iii) A qualifying asset is one that necessarily takes substantial period of time to get ready for its
intended use.

(iv) All other borrowing costs are charged to the Profit and Loss Statement in the period in which
they are incurred.

(l) Impairment:

(i) An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.

(ii) An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.

(m) Income Taxes:

(i) Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount
expected to be paid to the tax authorities in accordance with the provisions of the Income-tax
Act 1961, using the applicable tax rates.

(ii) Deferred income tax reflects the current period timing differences between taxable income
and accounting income for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognized only to the extent that there is a reasonable
certainty that sufficient future income will be available except that deferred tax assets, in case
there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that
sufficient future taxable income will be available to realize the same.

(iii) Deferred tax assets and liabilities are measured using the tax rates and tax law that have been
enacted or substantively enacted by the Balance Sheet date.

(iv) During the year position of Deferred tax asset and liabilities are mentioned in the note 7 of the
financial statements.

---

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES:

(a) Basis of preparation of financial statements:

(i) The Company was Small and Medium Sized Company (SMC) as defined under Rule 2(l)(e) of the Companies (Accounting Standards) Rules, 2021 notified under the Companies Act, 2013 and it availed of the exemption or relaxations available to SMCs. From the financial year 2023-24, the Company is no longer SMC.

(ii) These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP).

(iii) The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the Lakhs of rupees and decimal thereof.

(b) Changes in accounting policy

(i) During the year ended on 31 March 2024, there is no change in accounting policy having significant impact on presentation and disclosure made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(c) Use of estimates

_(i) The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

(ii) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized in the period in which such revisions are revised and future periods affected.

(d) Inventories

(i) Inventories are assets (a) held for sale in the ordinary course of business; (b) in the process of production of such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.

(ii) Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

(iii) Costs are assigned by using weighted average method after providing for obsolescence, if any.

[e) Revenue recognition

(i) Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer and the company retains no effective control of the goods so transferred to a degree usually associated with ownership and it can be reliably measured and it is reasonable to expect ultimate collection.

(ii) Revenue from operations includes sale of goods, and services and sales during trial run period, (excluding any indirect taxes levied on the company and collected by it from customers and clients), and adjusted for discounts (net).

(iii) Revenue is measured by the charges made to customers or clients for goods supplied and services rendered to them and by the charges and rewards arising from the use of resources by them.

(iv) Claims for damages etc. against the contractors/service providers are recognized on due basis, as and when the certainty to receive the claim is ascertained.

(v) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable. Export incentives are recognized as and when right to receive is established.

^(vi) During the financial year ended on 31 March 2024, there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

(vii) Goods and services tax is accounted for at the time of removal of goods cleared / services provided and recognized separately from revenue from operations.

(f) Property, Plant, and Equipment Tangible items:

i. Property, plant and equipment are tangible items that (a) are held for use in the production or supply of goods or services, for rental to others or for administrative purposes; and (b) are expected to be used during more than a period of twelve months.

ii. The costs of tangible items are recognized as an asset if, and only if (a) it is probable that future economic benefits associated with the item will flow to the company; and (b) the costs of item can be measured reliably.

iii. The costs of each property, plant and equipment are measured at Cost less any accumulated depreciation and any accumulated impairment losses.

iv. The cost of Property, Plant & Equipment comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Intangible Assets:

v. Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

(g) Depreciation, amortization and depletion:

Tangible assets

i. Depreciation on Property, Plant & equipment is provided to the extent of depreciable amount on the Written down value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

ii. In respect of additions or extensions forming an integral part of existing property, plant and equipment and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of property, plant and equipment, depreciation is provided as aforesaid over the residual life of the respective property, plant and equipment.

(h) Foreign Currency Transactions:

i. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximate of the actual rate at the date of transaction.

ii. Monetary items denominated in foreign currencies at the year-end are restated at year end rates.

iii. In case of items which are covered by forward exchange contracts, the difference between the year-end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contracts/in time proportion basis.

iv. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss statement except in case of longterm liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying costs of such assets.

(i) Investments:

i. Investments are assets held by the company for earning income by way of interest, rental or dividends, for capital appreciation, or for other benefits to the company.

ii. Investments are classified as current and non-current investments.

iii. Current investments are carried at lower of cost and quoted/fair value, computed category-wise.

iv. Non-Current investments are stated at cost. Provision for diminution in the value of non-Current investments is made only if such a decline is other than temporary.

v. The company has made investment of W 500 lakhs in Wholly owned subsidiary company M/s. Shantol Recycling Private Limited. This is shown in the financial statements under Non-current Investments.

(j) Employee Benefits:

Short term employee benefits:

i. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-employment benefits defined contribution plans:

ii. A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund, State Government Schemes. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

Post-Employment Benefits Defined Benefit Plans:

iii. The Liability in respect of defined benefits in the form of gratuity, leave encashment, post-retirement medical scheme is provided based on the percentage notified by the Government.

iv. See Note No.25 of the financial statement attached herewith for details.

(k) Borrowing costs:

i. Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

ii. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.

iii. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

iv. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

(l) Impairment:

i. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.

ii. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(m) Income taxes:

i. Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of the Income-tax Act 1961, using the applicable tax rates.

ii. Deferred income tax reflects the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

iii. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

iv. During the year position of Deferred tax asset and liabilities are mentioned in below mentioned table.

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Mar 31, 2023

I    COMPANY OVERVIEW:

1.0    M/s. Hi-Green Carbon Limited (Previously known as M/s. Shantol Green (India) Private Limited) is a public company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of Manufacturing and Recycling of waste rubber and to produce hydro carbon fuel.

2.0    During the financial year 2022-23, the Company has changed its name from M/s. Shantol Green (India) Private Limited to M/s. Hi-Green Carbon Private Limited and then from the later to M/s Hi-Green Carbon Limited

II    SIGNIFICANT ACCOUNTING POLICIES:

1.0    BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

1.1    The Company is a Small and Medium Sized Company (SMC) as defined under the Companies (Accounting Standards) Rules, 2021 notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

v

1.2    These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP).

1.3    The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the Lakhs of rupees and decimal thereof.

2.0    CHANGES IN ACCOUNTING POLICY:

2.1    During the year ended on 31^st March, 2023, there is no change in accounting policy having significant impact on presentation and disclosure made in the financial statements The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year

3.0    USE OF ESTIMATES:

3.1    The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

3.2    The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized in the period in which such revisions are revised and future periods affected.

4.0    INVENTORIES:

4.1    Inventories are assets (a) held for sale in the ordinary course of business; (b) in the process of production of such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.

4.2    Inventories are valued at the lower of cost and net realizable value, after providing for obsolescence, if any, except in case of by-products which are valued at net realizable value Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.

4.3    Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

4.4    Cost of raw materials, process chemicals, stores and spares, packing materials, finished goods, whether of trading and manufacturing and other products are assigned by using weighted average cost formula.

5.0    REVENUE RECOGNITION:

5.1    Revenue is measured by the charges made to customers or clients for goods supplied and services rendered to them and by the charges and rewards arising from the use of resources by them.

5.2    Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer and the company retains no effective control of the goods so transferred to a degree usually associated with ownership and it can be reliably measured and it is reasonable to expect ultimate collection Revenue from operations includes sale of goods, sale of services and sales during trial run period, (excluding any indirect taxes levied on the company and collected by it from customers and clients) adjusted for discounts (net).

5.3    Claims for damages etc. against the contractors/service providers are recognized on due basis, as and when the certainty to receive the claim is ascertained

5.4    Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable. Export incentives are recognized as and when right to receive is established.

5.5    During the financial year ended on 31^st March, 2023, there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties

5.6    Goods and services tax is accounted for at the time of removal of goods cleared / services provided and recognised separately from revenue from operations

6.0    PROPERTY, PLANT, AND EQUIPMENT:

TANGIBLE ITEMS:

6.1    Property, plant and equipment are tangible items that (a) are held for use in the production or supply of goods or services, for rental to others or for administrative purposes; and (b) are expected to be used during more than a period of twelve months.

6.2    The costs of tangible items are recognized as an asset if, and only if (a) it is probable that future economic benefits associated with the item will flow to the company; and (b) the costs of item can be measured reliably.

6.3    The costs of each property, plant and equipment are measured at Cost less any accumulated depreciation and any accumulated impairment losses

6.4    The cost of Property, Plant & Equipments comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets

INTANGIBLE ASSETS

6.5    Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

7.0    DEPRECIATION, AMORTISATION AND DEPLETION:

TANGIBLEASSETS:

7.1    Depreciation on Property, Plant & Equipments is provided to the extent of depreciable amount on the Written down value (WDV) Method Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

7.2    In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of Fixed Assets, depreciation is provided as aforesaid over the residual life of the respective assets

7.3	The useful life of the property, plant, and equipment is mentioned hereunder
Â	Sr. No.	Description	Useful Life (in years)
Â	1.	Free hold Land	Perpetual
Â	2.	Building - Freehold	30
Â	3.	Plant & Machinery	15
Â	4.	Furniture & Fixtures	10
Â	5.	Vehicles	8
Â	6.	Computers	_ 3
Â	7.	Office Equipments	5

8.0    FOREIGN CURRENCY TRANSACTIONS:

8.1    Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximate of the actual rate at the date of transaction.

8.2    Monetary items denominated in foreign currencies at the year-end are restated at year end rates.

8.3    In case of items which are covered by forward exchange contracts, the difference between the year-end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contracts/in time proportion basis

8.4    Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss statement except in case of longterm liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying costs of such assets.

9.0    INVESTMENTS:

9.1    Investments are assets held by the company for earning income by way of interest, rental or dividends, for capital appreciation, or for other benefits to the company

9.2    Investments are classified as current and non-current investments

9.3    Current investments are carried at lower of cost and quoted/fair value, computed category-wise.

9.4    Non-Current investments are stated at cost. Provision for diminution in the value of non-Current investments is made only if such a decline is other than temporary

10.0    EMPLOYEE BENEFITS

SHORT TERM EMPLOYEE BENEFITS

10.1 The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services These benefits include performance incentive and compensated absences

POST-EMPLOYMENT BENEFITS DEFINED CONTIBUTION PLANS

10.2    A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. State Government Schemes. The Company’s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

POST-EMPLOYMENT BENEFITS DEFINED BENEFIT PLANS

10.3    The Liability in respect of defined benefits in the form of gratuity, leave encashment, post-retirement medical scheme is provided based on the percentage notified by the Government.

11.0    BORROWING COSTS

11.1    Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

12.0    IMPAIRMENT:

12.1    An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.

12.2    An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

13.0    INCOME TAXES

13.1    Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of the Income-tax Act 1961, using the applicable tax rates

13.2    Deferred income tax reflects the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same

13.3    Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date

13.4    During the year position of Deferred tax asset and liabilities are mentioned in below mentioned table.

Sr No.	Particulars	Opening as on 01.04.2022	Charg e	Reversal	Closing as on 31.03.2023
1	Deferred tax asset related to	Â	Â	Â	Â
	Unabsorbed depreciation and loss (Additional Depreciation)	17.27	-	17.27	- :
	Unabsorbed depreciation and loss (Normal Depreciation)	268.24	-	268.24
2	Deferred Tax Liability related to	Â	Â	Â
	Property, plant and equipment (Assets)	62 10	Â	24 11	37 99
Â	Net Deferred tax asset/ liability	223.41	261.40		37 99

14.0 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

14.1 Provision is recognized in the accounts when there is a present obligation as a result of past event(s), and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

14 2 During the year provisions were made are as under

Sr N o	Particulars	Opening balance (Rs.)	Charge Against the Provision (Rs.)	Provision reversed during the year (Rs.)	Provision Made during the year (Rs.)	Closing (Rs.)
1	Income tax	-	-	Â	102.00 0.09	102 00 0.09
2	Provident Fund	-	-	-
3	Gratuity	-	-	-	18.10	18 10
4	Employees’ state insurance	-	*	*	0.05	0.05
5	Audit fees	1.00	1.00	-	1.00	1 0C 13.00
6	Electricity Expenses	-	-	-	13.00

14.3 No provision has been made in the financial statements annexed herewith for the doubtful debt and loan and advances. These may include some bad debts, which have not been determined so far

15.0 OTHERS

15.1 Advances recoverable in cash or in kind or for value to be received as shown in Note-18 Short-Term Loans & Advances include the following amount due from Companies under same management.

Name of the Company or concern	As at 31.03.2023	Maximum amount during the year	As at 31.03.2022	Maximum amount during the year
M/s. Radhe Renewable Energy Development Private Limited	432.20	432.20	Â	Â

15.2 Provision is made for accrued liability for Gratuity in respect of employees who leave the service of the Company during any year. No provision, however, is made in respect of present value for future payments.