Notes to Accounts of KPI Green Energy Ltd.

Mar 31, 2025

(xviii) Provisions, Contingent Liabilities and
Contingent Assets:

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. Provisions are determined by discounting
the expected future cash flows (representing the best
estimate of the expenditure required to settle the
present obligation at the balance sheet date) at a preÂ¬
tax rate that reflects current market assessments of
the time value of money and the risks specific to the
liability. When the Company expects some or all of
a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision
is presented in the Statement of Profit and Loss net of
any reimbursement. The unwinding of the discount is
recognised as finance cost. Expected future operating
losses are not provided for. A contingent liability is a
possible obligation that arises from past events whose
existence will be confirmed by the occurrence or nonÂ¬
occurrence of one or more uncertain future events
beyond the control of the Company or a present
obligation that is not recognised because it is not
probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of amount
cannot be made.

Contingent liabilities may arise from litigation, taxation
and other claims against the Company. The contingent
liabilities are disclosed where it is managementâs
assessment that the outcome of any litigation and other
claims against the Company is uncertain or cannot be
reliably quantified, unless the likelihood of an adverse
outcome is remote.

A contingent liability recognised in a business
combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the
amount that would be recognised in accordance with

the requirements for provisions above or the amount
initially recognised less, when appropriate, cumulative
amortisation recognised in accordance with the
requirements for revenue recognition.

Contingent assets are not recognised but are disclosed
in the notes where an inflow of economic benefits is
probable.

The company has the policy to provide interest on
delayed payments to MSME vendors as per the provisions
of Section 16 of the MSME Act, 2006. Accordingly, the
company recognizes the interest liability only when a
present obligation exists on account of the demand
raised by the vendor or when it is probable that the
interest is required to be paid. On the basis of the past
experience and published policies of the company, if
there is no constructive obligation in respect of the
probable outflow of the interest payment, the same is
disclosed as contingent liability.

(xix) Impairment of non-financial assets:

The Company reviews the carrying amounts of nonÂ¬
financial assets to determine whether there is any
indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). When it is
not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset
belongs. Each CGU represents the smallest Group
of assets that generates cash inflows that are largely
independent of the cash inflows of other assets or CGUs.
When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis
can be identified.

The Company bases its impairment calculation on
detailed budget and forecast calculations, which are
prepared separately for each of the Companyâs cashÂ¬
generating unit to which the individual assets are
allocated. For longer periods, a long term growth rate is
calculated and applied to project future cash flows. To
estimate cash flow projections beyond periods covered
by the most recent budget/forecasts, the Company
estimates cash flow projections based on estimated
growth rate.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its
recoverable amount. An impairment loss is recognised
immediately in the Statement of Profit and Loss.

(xx) Earnings per share:

Basic earnings per equity share is computed by dividing
the net profit/(loss) attributable to the equity holders
of the Company by the weighted average number of
equity shares outstanding during the period. Diluted
earnings per equity share is computed by dividing the
net profit/(Loss) attributable to the equity holders of the
Company by the weighted average number of equity
shares considered for deriving basic earnings per equity
share and also the weighted average number of equity
shares that could have been issued upon conversion of
all dilutive potential equity shares. The dilutive potential
equity shares are adjusted for the proceeds receivable
had the equity shares been actually issued at fair value
(i.e. the average market value of the outstanding equity
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 and potentially dilutive
equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues
including for changes effected prior to the approval
of the standalone financial statements by the Board
of Directors.

(xxi) Dividend distribution to equity shareholders
of the Company:

The Company recognises a liability to make dividend
distributions to its equity holders when the distribution
is authorised and the distribution is no longer at its
discretion. A corresponding amount is recognised
directly in equity.

(xxii) Cash Flow Statement:

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Group are segregated.

(xxiii) Segment Reporting:

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

â¢ Identification of segments:

In accordance with Ind AS 108- Operating
Segment, the operating segments used to
present segment information are identified on the

basis of information reviewed by the Companyâs
management to allocate resources to the segments
and assess their performance. An operating
segment is a component of the Company that
engages in business activities from which it earns
revenues and incurs expenses, including revenues
and expenses that relate to transactions with any
of the Companyâs other components. Results of
the operating segments are reviewed regularly
by the management team (chairman and chief
financial officer) which has been identified as the
chief operating decision maker (CODM), to make
decisions about resources to be allocated to the
segment and assess its performance and for which
discrete financial information is available.

â¢ Allocation of common costs:

Common allocable costs are allocated to each
segment accordingly to the relative contribution of
each segment to the total common costs.

â¢ Unallocated Items:

Revenues and expenses, which relate to the
Company as a whole and are not allocable to
segments on a reasonable basis, have been included
under "Unallocated corporate expensesâ. Assets and
liabilities, which relate to the Company as a whole
and are not allocable to segments on reasonable
basis, are shown as unallocated corporate assets
and liabilities respectively.

â¢ Segment Accounting Policies:

The Company prepares its segment information in
conformity with the accounting policies adopted
for preparing and presenting the financial
statements of the Company as a whole.

(xxiv) Investments in subsidiaries, associates and
joint ventures:

Investments in Subsidiaries, Associates and Joint
Ventures are carried at cost less accumulated impairment
losses, if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed and
written down immediately to its recoverable amount.
On disposal of investments in subsidiaries, associates
and joint venture, the difference between net disposal
proceeds and the carrying amounts are recognised in
the Statement of Profit and Loss.

(xxv) 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.

(xxvi) Translation of Foreign Currency
Transactions:

In preparing the financial statements of the company,
transactions in currencies other than the entity''s
functional currency (foreign currencies) are recognized
at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that date.
Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not
retranslated. Exchange differences on monetary items
are recognized in profit or loss in the period in which
they arise.

(xxvii) Exceptional items:

Exceptional items refer to items of income or expense,
within the statement of profit and loss from ordinary
activities which are non-recurring and are of such size,
nature or incidence that their separate disclosure is
considered necessary to explain the performance of the
company.

2.3 Use of estimates and judgements:

The preparation of the Companyâs financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the
accompanying disclosures including contingent
liabilities. The estimates and associated assumptions
are based on experience and other factors that
management considers to be relevant. Actual results
may significantly differ from these estimates. The
estimates and underlying assumptions are reviewed on
an ongoing basis by the management of the Company.
Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision
affects only that period, or in the period of the revision
and future periods if the revision affects both current and
future periods. Uncertainty about these assumptions
and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or
liabilities affected in future periods.

Key Sources of Estimation uncertainty:

The key assumptions concerning the future and other
key sources of estimation uncertainty and judgements
at the reporting date, that have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year,
are described below. Existing circumstances and
assumptions about future developments may change

due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

a. Useful lives and residual value of property, plant
and equipment

In case of the wind power generation equipment and
plant and equipment for development of solar park
facilities at different location (assets), in whose case the
life of the assets has been estimated at 25 years based on
technical assessment, taking into account the nature of
the assets, the estimated usage of the asset, the operating
condition of the asset, anticipated technological changes,
manufacturer warranties and maintenance support,
except for some major components identified during the
year, depreciation on the same is provided based on the
useful life of each such component based on technical
assessment, if materially different from that of the
main asset.

b. Fair value measurement of financial instruments

In estimating the fair value of financial assets and
financial liabilities, the Company uses market observable
data to the extent available. Where such Level 1 inputs
are not available, the Company establishes appropriate
valuation techniques and inputs to the model. The
inputs to these models are taken from observable
markets where possible, but where this is not feasible,
a degree of judgment is required in establishing fair
values. Judgments include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the
reported fair value of financial instruments.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

c. Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ
from actual developments in the future. These include

the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at
each reporting date.

d. Taxes

Significant management judgment is required to
determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the
level of future taxable profits together with future tax
planning strategies and future recoverability of deferred
tax assets. The amount of the deferred income tax assets
considered realisable could reduce if the estimates of
the future taxable income are reduced. In assessing the
recoverability of deferred tax assets, the Company relies
on the same forecast assumptions used elsewhere in the
financial statements.

e. Impairment of non-financial assets

For determining whether property, plant and equipment
are impaired, it requires an estimation of the value in use
of the relevant cash generating units. The value in use
calculation is based on a Discounted Cash Flow model
over the estimated useful life of the Power Plants. Further,
the cash flow projections are based on estimates and
assumptions relating to tariff, operational performance
of the Plants, life extension plans, exchange variations,
inflation, terminal value etc. which are considered
reasonable by the Management.

f. Impairment of financial assets

The impairment provisions for trade receivables
are made considering simplified approach based
on assumptions about risk of default and expected
loss rates. The Company uses judgement in making
these assumptions and selecting the inputs to the
impairment calculation based on the Companyâs
past history and other factors at the end of each
reporting period. In case of other financial assets, the
Company applies general approach for recognition
of impairment losses wherein the Company uses
judgement in considering the probability of default
upon initial recognition and whether there has been a
significant increase in credit risk on an ongoing basis
throughout each reporting period.

g. Recognition and measurement of provision and
contingency

The Company recognises a provision if it is probable
that an outflow of cash or other economic resources will
be required to settle the provision. If an outflow is not
probable, the item is treated as a contingent liability.
Risks and uncertainties are taken into account in
measuring a provision.

h. Identification of a lease

Management assesses applicability of Ind AS 116 -
âLeasesâ, for PPAs. In assessing the applicability, the
management exercises judgement in relation to the
underlying rights and risks related to operations of the
plant, control over design of the plant etc., in concluding
that the PPA do not meet the criteria for recognition
as a lease.

i. Leases- estimating the incremental borrowing
rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Company would
have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset
of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects
what the Company âwould have to payâ, which requires
estimation when no observable rates are available or
when they need to be adjusted to reflect the terms and
conditions of the lease. The Company estimates the IBR
using observable inputs (such as market interest rates)
when available and is required to make certain entity-
specific estimates.

2.4 Recent accounting pronouncements:

Ministry of Corporate Affairs ("MCAâ) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

Terms/Rights Attached to Equity Shares

The Company has only one class of equity shares having a par value of '' 5 each. Each holder of equity shares is entitled
to one vote per share.

In the event of liquidation of the Company, the holder 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.

During the year ended March 31, 2025 the company has issued 6,56,30,202 bonus shares in the ratio of 1:2 and
6,02,82,608 shares split in the ratio of 1:1

Details of Convertible Securities:

The company has not issued any securities convertible into equity or preference shares.

Details of Shares Reserved for Employees Stock Options:

During the year equity shares of the company have been granted to the employees of the company and to the
employees of its subsidiaries companies- (i) KPIG Energia Private Limited and (ii) Sun Drops Energia Private Limited
based on the group equity settled share based payment scheme KPI GREEN-ESOP 2023. Equity shares of the
company will vest from time to time on the basis of performance and other eligibility criteria. During the year the
company has not issued any shares under ESOP plan.

(i) Securities Premium is used to record the issue of bonus shares and is utilised in accordance with the provisions
of the Companies Act, 2013.

(ii) Retained Earnings are the profits of the Company earned till date net of appropriations.

(iii) The Board of Directors at its meeting held on 21^th August, 2024, 14^th November, 2024 and 18^th February, 2025
has declared an interim dividend at '' 0.20 per share, '' 0.20 per share and '' 0.20 per share respectively for
the F.Y. 2024-2025 and '' 0.20 per share as final dividend for FY 2023-24 at its annual general meeting on
25^th September, 2024 which has been paid by the company during the year. The company has proposed final
dividend of '' 0.20 per share for financial year under reporting.This proposed dividend is subject to the approval
of shareholders in the ensuing annual general meeting.

(iv) During the year equity shares of the company have been granted to the employees of the company and to
the employees of its subsidiaries companies- (i) KPIG Energia Private Limited and (ii) Sun Drops Energia Private
Limited based on the group equity settled share based payment scheme KPI GREEN-ESOP 2023. Equity shares
of the company will vest from time to time on the basis of performance and other eligibility criteria.

The OD from Bombay Mercantile Co. Op. Bank of '' 95
Lakhs was granted against pledge of term deposit of '' 1
Crore.

The CC from State Bank of India is secured by
hypothecation charge over the entire current assets of
the company both present and future comprising of raw
materials, semi-finished goods, finished goods, stock in
progress, stores and spare, receivables and entire cash
flows of the company.

The CC from Yes Bank was secured by first pari passu
charge by way of hypothecation on current asset both
present and future, unconditional and irrevocable
personal gurrantee of Farukbhai Patel till the tenor of
facility and Fixed Deposit-10% margin to be lien marked
upfront.

The CC from RBL Bank Is secured by First Pari passu
charge on all current assets of the company, both
present and future, 25% cash margin in the form of
FD to be placed with RBL Bank on pro rata basis and
Unconditional and irrevocable personal guarantee of
Mr. Faruk Patel.

The CC from ICICI Bank was secured by collateral security
of fixed deposit of '' 105 million, First pari passu charge
on the current assets of the company and personal
guarantee of Mr. Faruk Patel.

The CC from PNB Bank is secured by first pari passu
basis with other lenders on entire current assets, present
and future, including entrie stocks, book debts, loan and
advances etc. under multiple advances, first charge to be
held on pari pasu basis with other banks and collateral of
FD of '' 0.80 Crores.

The CC from KotaK Bank is secured by first pari passu
hypothecation charge to be shared with SBI, ICICI, and
RBL Bank/s on all existing and future current assets of
the borrower. Lien on FD of the borrower at 15% of the
total sanctioned amount and also personal guarantee of
Faruk Patel and Sohil Dabhoya.

The CC from KVB Bank is secured by First Paripassu
charge by way of Hypothecation of entire Current assets
including Stocks & Receivables both present and future
along with State Bank of India, Ratnakar Bank Limited
(RBL) and ICICI Bank Ltd, Collateral cover of 10% i.e., Lien
over FD & also personal guarantee of Mr. Faruk Patel and
Sohil Dabhoya.

The CC from HDFC Bank is secured by 10% cash
margin upfront upto 25 Crores and 20% cash margin
on remaining 45 Crores, first pari passu charge on all
current and future assets including stock and book debt
and also personal guarantee of Mr. Faruk Patel and Sohil
Dabhoya.

(i) The company has taken xerox machine on lease which is treated as a low value asset as per the exemption given
by IND AS 116 on Leases and hence the rent charged on same '' 2.79 Lakhs (1.08 Lakhs) have been debited to
Profit & Loss Account.

(ii) The company has taken hotels and guest houses on lease on temporary basis for short term accomodation of
their site personnel and for employees during travelling for work purposes. Since, the same are for a period of less
than 12 months, they have been treated as short -term leases as per the exemption given by IND AS 116 and
accordingly the rent of '' 155.87 Lakhs (26.51 Lakhs) is debited to Profit & Loss Account.

Investment in equity instruments of subsidiaries, joint ventures and associates has been accounted at cost in
accordance with Ind AS 27. Therefore not within the scope of Ind AS 109, hence not included here.

ii) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the balance sheet are categorized into three levels of
fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement,
as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

(ii) All the other long term borrowing facilities availed by the Company are variable rate facilities which are subject
to changes in underlying Interest rate indices. Further, the credit spread on these facilities are subject to change
with changes in Companyâs creditworthiness. The management believes that the current rate of interest on these
loans are in close approximation from market rates applicable to the Company. Therefore, the management
estimates that the fair value of these borrowings are approximate to their respective carrying values.

46.1 FINANCIAL RISK MANAGEMENT
(i) Risk management framework

The Companyâs activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk
which the Company is exposed to and how the Company manages the risk and the related impact in the financial
statements.

The Companyâs risk management is carried out by a
central treasury department (of the Company) under
policies approved by the board of directors. The board
of directors provides written principles for overall risk
management, as well as policies covering specific areas,
such as interest rate risk, credit risk and investment of
excess liquidity.

A) Credit risk

Credit risk is the risk of financial loss to the Company if a
customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally
from the Companyâs receivables from customers and
investments in debt securities.

The carrying amount of financial assets represents the
maximum credit exposure:

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

a) Credit risk management

The Company assesses and manages credit risk based on
internal credit rating system, continuously monitoring
defaults of customers and other counterparties,
identified either individually or by the company, and
incorporates this information into its credit risk controls.
Internal credit rating is performed for each class of
financial instruments with different characteristics. The
Company assigns the following credit ratings to each
class of financial assets based on the assumptions,
inputs and factors specific to the class of financial assets.

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank
deposits is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in
different banks.

Trade receivables

The Company closely monitors the credit-worthiness of
the debtors through internal systems that are configured
to define credit limits of customers, thereby, limiting the
credit risk to pre-calculated amounts. The Company
assesses increase in credit risk on an ongoing basis for
amounts receivable that become past due and default is
considered to have occurred when amounts receivable
become past due one year.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost
includes loans and advances to employees and others,
deposits and other recoverable. Credit risk related to
these other financial assets is managed by monitoring
the recoverability of such amounts continuously, while
at the same time internal control system in place ensure
the amounts are within defined limits.

B) Liquidity risk

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. Management monitors
rolling forecasts of the Companyâs 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 the company operates.

Maturities of financial liabilities

The tables below analyze the Companyâs financial
liabilities into relevant maturity of the Company 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.

ii) Assets

The Companyâs fixed deposits are carried at amortised
cost and are fixed rate deposits. They are therefore not
subject to interest rate risk as defined in Ind AS 107,
since neither the carrying amount nor the future cash
flows will fluctuate because of a change in market
interest rates.

c) Price risk
Exposure

The Companyâs exposure price risk arises from
investments held and classified in the balance sheet
either as fair value through other comprehensive income
or at fair value through profit or loss. To manage the price
risk arising from investments, the Company diversifies
its portfolio of assets.

The Company does not have any significant
investments in equity instruments which create an
exposure to price risk.

46.2 CAPITAL MANAGEMENT

The Companyâs capital management objectives are:

- to ensure the Companyâs ability to continue as a
going concern;

- to provide an adequate return to shareholders.

The Company monitors capital on the basis of the
carrying amount of equity less cash and cash equivalents
and other bank balances as presented on the face of
balance sheet.

Management assesses the Companyâs capital
requirements in order to maintain an efficient overall
financing structure while avoiding excessive leverage.
This takes into account the subordination levels of
the Companyâs various classes of debt. The Company
manages the capital structure and makes adjustments
to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. In
order to maintain or adjust the capital structure, the
Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new
shares, or sell assets to reduce debt.

Notes: The Company has filed an appeal before the Appellate authorities in respect of the disputed matter under the
Income Tax Act, 1961 and the appeals are pending with the appellate authority. Considering the facts of the matters
and other legal pronouncements of jurisdictional HC, no provision is considered necessary by the management
because the management is hopeful that the matter would be decided in favour of the Company in the light of the
legal advice obtained by the company. Amount shown as deducted in the brackets are the amounts paid against
the demand raised by the Income Tax Department in the Scrutiny assessment. Net amount is shown as Contingent
liabilities not provided for.

The company has entered into the transactions with the vendors who were registered under the MSME Act, 2006.
Out of these vendors, the company has identified some vendors in whose case the payment was delayed beyond
the appointed date and accordingly interest is payable as per the provisions of Section 16 of the MSME Act, 2006.
However, the said vendors have not demanded any interest on delayed payments during the year nor till the date of
reporting and hence no provision has been made in the standalone financial statements since there is no constructive
obligation in respect of the probable outflow of interest payment.

51. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans:

The Company makes specified monthly contributions towards employee provident fund to Government administered
provident fund scheme which is a defined contribution plan. The Companyâs contribution is recognized as an expense
in the statement of profit and loss during the period in which the employee renders the related service.

The amount recognized as an expense towards contribution to provident fund for the year aggregated to '' 69.76
Lakhs ('' 28.72 Lakhs).

The amount recognised as an expense towards contribution to ESI for the year aggregated to '' 1.63 Lakhs
('' 1.03 Lakhs).

Company adopted Indian Accounting Standard 19 "Employee Benefitsâ (âIND AS 19â) as specified in Rule 7 of the
Companies (Accounts) Rules, 2014.

Defined Benefit Plans:

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees, which
provides a lump sum payment to vested employees at retirement, death, incapacitation or termination
of employment, of an amount based on the respective employeeâs salary and the tenure of employment.
The Company has a defined benefit gratuity plan (unfunded) and is governed by the Payment of Gratuity Act, 1972.
Under the Act, every employee who has completed at least five year of service is entitled to gratuity benefits on
departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

The sensitivity analysis have been determined based
on reasonably possible changes of the respective
assumptions occurring at the end of the reporting
period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be
representative of the actual change in the Defined
Benefit Obligation as it is unlikely that the change 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
method as applied in calculating the Defined Benefit
Obligation as recognised in the balance sheet.

There was no change in the methods and assumptions
used in preparing the sensitivity analysis from prior years.

52. The Company uses an accounting software for
maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant
transactions recorded in the accounting software
except for the changes that can be made at the
database level to log any direct data changes and at
application layer for the accounting software used for
maintaining the books of account relating to Fixed
Assets Register throughout the year. The integration of
Fixed Assets Register with the companyâs accounting

software is under development and hence the audit
trail (edit log) is not enabled to that extent. Further,
there is no instance of audit trail feature being
tampered with in respect of the accounting software
where such feature is enabled. Additionally, the audit
trail of relevant prior years has been preserved for
record retention to the extent it was enabled and
recorded in those respective years by the Company as
per the statutory requirements for record retention.

53. ADDITIONAL REGULATORY

INFORMATION PURSUANT TO THE
PROVISIONS OF SCHEDULE III OF THE
COMPANIES ACT, 2013

(i) During the year, the company has not owned any
immovable properties whose title deeds are not
held in the name of the company.

(ii) During the year, the company has not hold any
investment property.

(iii) During the year, company has not revalued any
Property, Plant and Equipment or intangible asset.

(iv) The Company has not granted any loan or advance
in nature of loan to promoters, directors, key
managerial personnel and related parties as defined
under the Companies Act, 2013 either severally or
jointly with any other person that is (a) repayable
on demand; or (b) without specifying any terms or
period of repayment.

The contribution to a section 8 Company controlled by the company has been used for following activities:

(i) Promoting Education.

(ii) Promoting health care including preventinve health care.

(iii) Setting up homes and hostels for women and orphans.

(iv) Setting up old age homes, day care centres and such other facilities for senior citizens.

(v) Welfare of the schedule caste, tribes, other backward classes, minorities and women.

54. THE CODE ON SOCIAL SECURITY, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on September 29, 2020. The Code
is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized

in the period in which said Code becomes effective and

the rules framed thereunder are notified.

55. OTHER STATUTORY REQUIREMENT

(i) The Company does not have any Benami property,
where any proceeding has been initiated or pending
against the Group for holding any Benami property.

(ii) The Company do not have any charges or satisfaction
which is yet to be registered with ROC beyond the
statutory period.

(iii) The Company have not traded or invested in
Crypto currency or Virtual Currency during the
financial year.

No funds have been received by the Company
from any person(s) or entity(ies), including foreign
entities (Funding Parties), with the understanding
(whether recorded in writing or otherwise) that
the Company shall (i) directly or indirectly, lend or
invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or (ii) provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(v) The Company is in compliance with the number of
layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017 (as
amended).

(vi) The Company does not have any such transaction
which is not recorded in the books of accounts that
has been surrendered or disclosed as income during
the year in the tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.

(vii) No Scheme of Arrangements has been approved
by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013 during the
year. Hence, the requirements of disclosure of effect
of such Scheme of Arrangements in the books of
account in accordance with the Scheme and in
accordance with accounting standards are not
applicable.

56. SIGNIFICANT EVENTS AFTER THE
REPORTING PERIOD

There were no significant adjusting events that occurred
subsequent to the reporting period other than the
events disclosed in the relevant notes.

57. APPROVAL OF STANDALONE FINANCIAL
STATEMENTS

The Standalone financial statements were approved for
issue by the Board of Directors on May 14, 2025.

58. The figures for the corresponding previous year
have been regrouped/reclassified wherever necessary, to
make them comparable.

In terms of our attached report of even date

For K A Sanghavi and Co LLP For and on behalf of the Board

Chartered Accountants KPI Green Energy Limited

ICAI FRN: 0120846W/W100289

CA Amish A. Sanghavi Faruk G. Patel Mohmed Sohil Y. Dabhoya

Partner (Chairman & Managing Director) (Whole Time Director)

M. NO. 101413 DIN: 00414045 DIN: 07112947

ICAI UDIN: 25101413BMIYID4204

Place: Surat Salim S Yahoo Rajvi Upadhyay

Date: May 14, 2025 (Chief Financial Officer) (Company Secretary)

Mar 31, 2024

(xxi) Provisions, Contingent Liabilities and Contingent Assets:

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 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. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable.

(xxii) Earnings per share:

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity 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 and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the standalone financial statements by the Board of Directors.

(xxiii) Dividend distribution to equity shareholders of the Company:

The Company recognises a liability to make dividend distributions to its equity holders when the distribution is authorised and the distribution is no longer at its discretion. A corresponding amount is recognised directly in equity,

(xxiv) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated.

(xxv) Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

Â» Identification of segments:

In accordance with Ind AS 108 - Operating Segment, the operating segments used to present segment information are identified on the basis of information reviewed by the Company''s management to allocate resources to the segments and assess their performance. An operating segment is a component of the Company that engages in business activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the Company''s other components. Results of the operating segments are reviewed regularly by the management team (chairman and chief financial officer) which has been identified as the chief operating decision maker (CODM), to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

Â» Allocation of common costs:

Common allocable costs are allocated to each segment accordingly to the relative contribution of each segment to the total common costs.

Â» Unallocated Items:

Revenues and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable

basis, have been included under "Unallocated corporate expensesâ. Assets and liabilities, which relate to the Company as a whole and are not allocable to segments on reasonable basis, are shown as unallocated corporate assets and liabilities respectively.

Â» Segment Accounting Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

(xxvi) Investments in subsidiaries, associates and joint ventures:

Investments in Subsidiaries, Associates and Joint Ventures are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.

(xxvii) 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.

The Company''s risk management is carried out by a central treasury department (of the Company) under policies approved by the board of directors. The board of directors provides written principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and investment of excess liquidity

A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of financial assets represents the maximum credit exposure.

- cash and cash equivalents;

- trade receivables;

- loans & receivables carried at amortised cost; and

- deposits with banks.

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become past due one year.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

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. Management monitors rolling forecasts of the Company''s 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 the Company operates.

Maturities of financial liabilities

The tables below analyze the Company''s financial liabilities into relevant maturity of the Company 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.

49. Employee Benefit Plans Defined Contribution Plans:

The Company makes specified monthly contributions towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

The amount recognized as an expense towards contribution to provident fund for the year aggregated to ''28.72 lakhs (''9.65 lakhs).

The amount recognised as an expense towards contribution to ESI for the year aggregated to ''1.03 lakhs (''1.39 lakhs).

Company adopted Indian Accounting Standard 19 "Employee Benefitsâ (''Ind AS 19'') as specified in Rule 7 of the Companies (Accounts) Rules, 2014.

Defined Benefit Plans:

The Company has a defined benefit gratuity plan (unfunded) and is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed at least five year of service is entitled to gratuity benefits on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.

51. The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on September 29, 2020. The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are notified.

52. Other statutory requirement

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property

(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding (whether recorded in writing

or otherwise) that the Company shall (i) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

53. Significant Events after the Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

54. Approval of Standalone Financial Statements

The Standalone financial statements were approved for issue by the Board of Directors on April 25, 2024.

55.

The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.

In terms of our attached report of even date

For K A Sanghavi and Co LLP For and on behalf of the Board

Chartered Accountants KPI Green Energy Limited

ICAI FRN: 0120846W/W100289

CA Amish A. Sanghavi Faruk G. Patel Mohmed Sohil Y. Dabhoya

Partner Chairman & Managing Director Whole-Time Director

M. No.: 101413 DIN: 00414045 DIN: 07112947

ICAI UDIN: 24101413BKAACZ3614

Salim S. Yahoo Rajvi Upadhyay

Chief Financial Officer Company Secretary

Place: Surat Place: Surat

Date: April 25, 2024 Date: April 25, 2024

Mar 31, 2023

(i) There is no intent to sale any of the Intangible Asset held by the company and hence there is no Intangible Asset held for disposal.

(ii) All the Intangible Asset purchased during the year were put to use before 31^st March 2023.

(iii) During the year, there is no change in amount of the Intangible Asset due to business combination, revaluation and other adjustments.

(iv) Refer Schedule no. 19 for details on Intangible Assets pledged as security by the company.

(i) As per IND AS 109, Loan granted on other than market terms has to be fair valued and the difference between fair value and amount granted has to be treated as equity component. Accordingly, since the company has granted interest free loans to its wholly owned subsidiaries without specifying any repayment terms, it is not possible to determine the fair value of loan and hence the loan granted to subsidiaries have been classified as Deemed Investment.

(ii) The cost of these investments approximate their fair value because there is a wide range of possible fair value measurements and the cost represents the best estimate of fair value within that range.

TERMS / RIGHTS ATTACHED TO EQUITY SHARES

The Company has only one class of equity shares having a par value of H10 each. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holder 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.

During the year ended March 31, 2023 the company has issued 1,80,67,000 bonus shares in the ratio of 1:1 DETAILS OF CONVERTIBLE SECURITIES:

The company has not issued any securities convertible into equity or preference shares.

DETAILS OF SHARES RESERVED FOR EMPLOYEES STOCK OPTIONS :

The company has not reserved any shares for employees stock options.

(i) Securities Premium is used to record the premium on issue of bonus sshares and is utilised in accordance with the provisions of the Companies Act, 2013.

(ii) Retained Earnings are the profits of the Company earned till date net of appropriations.

(iii) The Board of Directors at its meeting held on 7^th May,2022, 13^th August,2022, 18^th October,2022 and 31^stJanuary,2023 has declared an interim dividend at H 2.10 per share, H0.30 per share, H0.25 per share and H 0.20 per share respectively for the FY. 2022-2023 which has been paid by the company during the year.

(i) The company has taken xerox machine on lease which is treated as a low value asset as per the exemption given by IND AS 116 on Leases and hence the rent charged on same H 0.62 Lakhs (0.55 Lakhs) have been debited to Profit & Loss Account.

(ii) The company has taken hotels and guest houses on lease on temporary basis for short term accomodation of their site employees and for employees during travelling for work purposes. Since, the same are for a period less than 12 months, they have been treated as short -term leases as per the exemption given by IND AS 116 and the rent charged on same of H 4.10 Lakhs (2.16) Lakhs have been debited to Profit & Loss Account.

ii) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the balance sheet are categorized into three levels of fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation process and technique used to determine fair value

(i) The fair value of investments in government securities and quoted equity shares is based on the current bid price of respective investment as at the balance sheet date.

(ii) The fair value of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of these mutual fund units in the published statements as at the Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

(iii) In order to arrive at the fair value of unquoted investments, the company obtains independent valuations. The techniques used by the valuer are as follows:

a) Asset approach - Net assets value method

b) Income approach - Discounted cash flows (âDCF") method

c) Market approach - Enterprise value/Sales multiple method"

The management assessed that security deposits, loan to related parties, other financial assets and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(i) Long-term fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as interest rates, individual creditworthiness of the customer and other market risk factors. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

(ii) All the other long term borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying Interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company''s creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

44.1 Financial risk management

(i) Risk management framework

The Company''s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of financial assets represents the maximum credit exposure.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become past due one year.

Other financial assets measured at amortised cost

B) Liquidity risk

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. Management monitors rolling forecasts of the Company''s 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 the company operates.

Maturities of financial liabilities

The tables below analyze the Company''s financial liabilities into relevant maturity of the Company 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.

i) Liabilities

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at March 31, 2023, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

The Company''s investments in fixed deposits all pay fixed interest rates.

ii) Assets

The Company''s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(C) Price risk

Exposure

The Company''s exposure price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.

The Company does not have any significant investments in equity instruments which create an exposure to price risk.

44.2 Capital management

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents and other bank balances as presented on the face of balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

Notes: The Company has filed an appeal before the Appellate authorities in respect of the disputed matter under the Income Tax Act, 1961 and the appeals are pending with the appellate authority. Considering the facts of the matters and other legal pronouncements of jurisdictional HC, no provision is considered necessary by the management because the management is hopeful that the matter would be decided in favour of the Company in the light of the legal advice obtained by the company. Amount shown as deducted in the brackets are the amounts paid against the demand raised by the Income Tax Department in the Scrutiny assessment. Net amount is shown as Contingent liabilities not provided for.

49. Employee Benefit Plans:

Defined Contribution Plans:

The Company makes specified monthly contributions towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

The amount recognized as an expense towards contribution to provident fund for the year aggregated to H 9.65 Lakhs (H 4.17 Lakhs).

The amount recognised as an expense towards contribution to ESI for the year aggregated to H 1.39 Lakhs (H 1.05 Lakhs).

Company adopted Indian Accounting Standard 19 âEmployee Benefits" (''IND AS 19'') as specified in Rule 7 of the Companies (Accounts) Rules, 2014."

Defined Benefit Plans:

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change 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 method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

50. Additional Regulatory information pursuant to the provisions of Schedule III of The Companies Act, 2013

(i) During the year, the company has not owned any immovable properties whose title deeds are not held in the name of the company.

(ii) During the year, company has not revalued any Property, Plant and Equipment.

(iii) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of account and hence there is no reconciliation for any discrepancies.

(iv) During the year, the company was not declared as wilful defaulter by any bank or financial Institution or other lender.

(v) Based on the information available with the Company, there are no transactions with struck off companies.

The company has undertaken following activities towards Corporate Social Responsibility:

(i) Promoting Education.

(ii) Setting up old age homes, day care centres and such other facilities for senior citizens.

The contribution to a section 8 Company controlled by the company has been used for following activities:

(i) Promoting Education.

(ii) Promoting health care including preventinve health care.

(iii) Setting up homes and hostels for women and orphans.

(iv) Setting up old age homes, day care centres and such other facilities for senior citizens.

(v) Welfare of the schedule caste, tribes, other backward classes, minorities and women.

51. The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on September 29, 2020. The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are notified.

52. Other statutory requirement

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

(v) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

53. Significant Events after the Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

54. Approval of Standalone Financial Statements

The Standalone financial statements were approved for issue by the Board of Directors on May 26, 2023.

55. The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.

Mar 31, 2018

1 CORPORATE INFORMATION :

K.P.I. Global Infrastructure Limited (âthe Companyâ) was incorporated on 01/02/2008 as a Public Limited company domiciled in India. The company is primarily engaged in Development and Trading of Plots of Solar Park. Development of Solar Parks for Generation and Distribution of Energy and also generation of solar energy. During the year under reporting the company has increased authorized capital to Rs. 20,00,00,000/- (5,50,00,000/-)comprised of 2,00,00,000 (55,00,000) eq. shares of Rs. 10/- each. During the year under reporting the company has issued further fully paid eq. shares through Private placement/ preferential allotment at premium of Rs. 130/- per share by way of Foreign Direct Investment (âFDIâ) out of which 6,78,722 eq. shares allotted to Raisonneur Capital Ltd., Mauritius and 2,93,500 eq. shares allotted to Aspire Emerging Fund, Mauritius on January 24, 2018. Company has issued bonus equity shares of Rs. 10/- each to the existing shareholders of the company in the proportion of 1:1 on March 5,2018.

SHARE HOLDERS HOLDING MORE THAN 5 % EQUITY SHARES IN THE COMPANY As per records of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. -

The company has no Holding Company and / or Associate Company.

TERMS / RIGHTS ATTACHED TO EQUITY SHARES

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

During the year the company has increased authorised share capital of the company from Rs. 5,50,00,000/- to Rs. 20,00,00,000/- and the total authorised share capital at the end of the year is Rs. 20,00,00,000/- divided in 2,00,00,000 equity shares of Rs. 10/- each.

During the year the company has issued 9,72,222 equity shares through private placement / preferential allotment at Rs. 10/- each at premium of Rs. 130/- each by way of Foreign Direct Investment (âFDIâ). Out of which 6,78,722 equity shares allotted to Raisonneur Capital Ltd., Mauritius and 2,93,500 equity shares allotted to Aspire Emerging Fund, Mauritius. Further the company has issued Bonus equity shares to the existing share holders of the company from Security Premium reserve in ratio of 1:1 i.e. 64,72,222 shares of Rs. 10 each fully paid up. The total equity share capital of the company at the end of the year is Rs. 12,94,44,440/- divided into 1,29,44,444 shares of Rs. 10/- each fully paid up.

In the event of liquidation of the Company, the holder 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.

DETAILS OF CONVERTIBLE SECURITIES:

The company has not issued any securities convertible into equity or preference shares.

DETAILS OF SHARES RESERVED FOR EMPLOYEES STOCK OPTIONS :

The company has not reserved any shares for employees stock options.

LONG TERM BORROWINGS :

The company has taken term loan from SBI Rs. 45.25 (Rs. 45.25) Crores which are secured by first pari passu charge on all fixed assets created out of Bank finance. The same is further secured by collateral securities of various flats and plots of the company, immovable property of Faaiz Money Changer Private Limited and the personal guarantee of the directors.

UNSECURED LOANS :

Amount of unsecured loans Rs. Nil (16.72) Lakhs includes the amount which the company has taken as deposit from various employees which are not deposits as defined under the Companies Acceptance of Deposit Rules, 2014. Further Rs. 38.00 ( Rs. 100.00) Lakhs amount in unsecured loans are the loans taken by the company from directors, members, promoters and relatives of promoters as provided in the sanction letter of the bank from which the company has taken the loansâ

TRADE PAYABLES

As certified and confirmed by the management that there are no entities of trade payables which are Micro Enterprises and small enterprises. The balance of sundry creditors include the amounts paid to suppliers as advance having debit balances. The amount shown against the sundry creditors is the balancing amount after netting off the said advances of Rs. 2,20,77,128/-.

CAPITAL WORK IN PROGRESS

The company has acquired solar panel and incurred the other related expenses for development of Solar Park and the same were not ready for generation and distribution of Energy till end of March 31, 2018. Therefore the same are included in Capital work in progress.

Interest paid on advances received from customers has been transferred to Work in progress account since the solar plant is under construction as per the requirements of AS 16.

INVENTORIES :

Inventories comprise the cost of flats at KP Avenue, REC stock and plot held at Village Sudi for development of Solar project. Inventories are valued at cpst or net realisable value whichever is lower. The cost of inventory comprise the actual cost incurred to bring them at their present location and condition.

TRADE RECEIVABLES:

Sundry debtors are trade receivables which are due in respect of goods sold in the normal course of the business and net off by the amount of advances received from individual customers. The debtors outstanding for more than 6 months are those debtors which are outstanding for more than 6 months from the date of Invoice but all of them are good as reviewed by the management and hence no provisions for doubtful debts has been made.

2. Operating leases :

Premises

The Company has taken office on lease rental agreement of 5 years with fixed rental on monthly basis for each of the years included in the lease period which is increasing every year. Each renewal is at the option of lessee. There are no restrictions placed upon the company by entering into these leases. The total rental expenses during the period was Rs. 1,75,000 (1,62,000).

The company has not entered into any lease agreements with any person during the year whereby any operating lease incomes are generated. The company has not acquired any fixed assets under finance lease / operating lease agreements during the year.

Total rent payable for not later than one year is Rs. 40,500/-

Smce the company has not issued any convertible preference shares or convertible debentures, the diluted EPS is same as that of Basic EPS. â

Since the company lias issued bonus shares in the ratio of 1:1 during the year under reporting, the EPS for F.Y. 2016-17 has been restated after giving effect of bonus shares.

3. Segmental Reporting (AS 17):

The company has disclosed business segment as the primary segment. Segments have been identified taking into account the risk and return related to the segment. The company operations predominantly relate to manufacturing and sale of solar power and in real estate in India. Therefore, the company has identified its business segments as dealing in plots (real estate) and solar power operations. The company is operating in single geographical segment i.e. India, therefore the company has not identified and geographical segment.

Segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments. Inter-segment transfers have been carried out at mutually agreed prices which are at armâs length price.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the note on significant accounting policies.

4. Related Party Disclosures as per AS 18:

a- List of related parties and nature of relationships where control exists :

I here is no such concerns which are subsidiary or holding of the company.

b. Other related parties with whom transactions have taken place during the year:

i) Entities where Key Management Personnel (KMP^ / relatives of kev management personnel (RKMPI have significant influence : -

- KP Energy Limited,

- KP Sor-Urja Limited,

- KP Human Development Foundation,

- KP Buildcon Private Limited,

- Rays Energy - Partnership Firm

ii) Kev Management Personnel :

- Farukbhai Gulambhai Patel - Managing Director,

- Santoshkumar Singh - Whole time Director

- Afzal Aiyub Patel â Chief Financial Officer

- Rajvi Vinodchandra Upadhyay- Company Secretary

- Nayankumar Babubhai Gamdha - Company Secretary (resigned on 12/09/2017)

iii) Relatives of key management personnel :

- Gulammahmad Alibhai Patel

- Valiidabanu Faruk Patel,

- Aayesha Faruk Patel,

5. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

6. Based on the information available with the company, there are no dues to Micro & Small Enterprises under the Micro, Small and medium Enterprises Development Act, 2006.

7. Disclosure required D/S. 186(4) of The Companies Act, 2013 :

For details of loans and guarantees given to and given by related parties, refer Note no. 34. For details of securities provided by the related parties, refer Note No. 5 & 34.

8. Provision for trade guarantees warrantees

The company is engaged in the business of developing solar plants, generation and sale of solar power, sale of plots etc. and not provided or entered into any service contracts which creates the liability of warranties etc. and therefore, no such liabilities are provided.

Notes:

1. The Company has filed an appeal before theâAppellate authorities in respect of the disputed matter under the Income Tax Act, 1961 and the appeal is pending with the appellate authority. Considering the facts of the matters and other legal pronouncements of jurisdictional HC, no provision is considered necessary by the management because the management is hopeful that the matter would be decided in favour of the Company in the light of the legal advice obtained by the company. However, the company has paid Rs. 4,48,000/- under protest which is shown by way of deduction from the total tax demand for A Y. 2014-15 and only the net amount is mentioned.

9. Capital and other commitments :

There are no contracts remaining to be executed on Capital account and hence no provision has been made on this account.

The Company has no obligation on account of non-fulfilment of export commitments under various advance licenses during the reporting period and hence no provisions have been made.

10. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting policies. (GAAP).

11. The previous yearâs figures have been regrouped or reclassified wherever necessary to confirm with the current yearâs presentation.

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Notes to Accounts of KPI Green Energy Ltd.

(xviii) Provisions, Contingent Liabilities andContingent Assets:

(xix) Impairment of non-financial assets:

(xx) Earnings per share:

(xxi) Dividend distribution to equity shareholdersof the Company:

(xxii) Cash Flow Statement:

(xxiii) Segment Reporting:

â¢ Identification of segments:

â¢ Allocation of common costs:

â¢ Unallocated Items:

â¢ Segment Accounting Policies:

(xxiv) Investments in subsidiaries, associates andjoint ventures:

(xxv) Cash and Cash Equivalents:

(xxvi) Translation of Foreign CurrencyTransactions:

(xxvii) Exceptional items:

2.3 Use of estimates and judgements:

Key Sources of Estimation uncertainty:

a. Useful lives and residual value of property, plantand equipment

b. Fair value measurement of financial instruments

c. Defined benefit plans (gratuity benefits)

d. Taxes

e. Impairment of non-financial assets

f. Impairment of financial assets

g. Recognition and measurement of provision andcontingency

h. Identification of a lease

i. Leases- estimating the incremental borrowingrate

2.4 Recent accounting pronouncements:

Terms/Rights Attached to Equity Shares

Details of Convertible Securities:

Details of Shares Reserved for Employees Stock Options:

ii) Fair values hierarchy

46.1 FINANCIAL RISK MANAGEMENT(i) Risk management framework

A) Credit risk

a) Credit risk management

B) Liquidity risk

Maturities of financial liabilities

c) Price riskExposure

46.2 CAPITAL MANAGEMENT

51. EMPLOYEE BENEFIT PLANSDefined Contribution Plans:

Defined Benefit Plans:

53. ADDITIONAL REGULATORY

INFORMATION PURSUANT TO THEPROVISIONS OF SCHEDULE III OF THECOMPANIES ACT, 2013

54. THE CODE ON SOCIAL SECURITY, 2020

55. OTHER STATUTORY REQUIREMENT

56. SIGNIFICANT EVENTS AFTER THEREPORTING PERIOD

57. APPROVAL OF STANDALONE FINANCIALSTATEMENTS

CA Amish A. Sanghavi Faruk G. Patel Mohmed Sohil Y. Dabhoya

(xxi) Provisions, Contingent Liabilities and Contingent Assets:

(xxii) Earnings per share:

(xxiii) Dividend distribution to equity shareholders of the Company:

(xxiv) Cash Flow Statement:

(xxv) Segment Reporting:

(xxvi) Investments in subsidiaries, associates and joint ventures:

(xxvii) Cash and Cash Equivalents:

49. Employee Benefit Plans Defined Contribution Plans:

Defined Benefit Plans:

51. The Code on Social Security, 2020

52. Other statutory requirement

53. Significant Events after the Reporting Period

54. Approval of Standalone Financial Statements

55.

TERMS / RIGHTS ATTACHED TO EQUITY SHARES

DETAILS OF SHARES RESERVED FOR EMPLOYEES STOCK OPTIONS :

ii) Fair values hierarchy

Valuation process and technique used to determine fair value

(i) Risk management framework

A) Credit risk

a) Credit risk management

Trade receivables

Other financial assets measured at amortised cost

B) Liquidity risk

Maturities of financial liabilities

i) Liabilities

ii) Assets

(C) Price risk

Exposure

Defined Contribution Plans:

Defined Benefit Plans:

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(xviii) Provisions, Contingent Liabilities and
Contingent Assets:

(xxi) Dividend distribution to equity shareholders
of the Company:

â¢ Identification of segments:

â¢ Allocation of common costs:

â¢ Unallocated Items:

â¢ Segment Accounting Policies:

(xxiv) Investments in subsidiaries, associates and
joint ventures:

(xxvi) Translation of Foreign Currency
Transactions:

a. Useful lives and residual value of property, plant
and equipment

g. Recognition and measurement of provision and
contingency

i. Leases- estimating the incremental borrowing
rate

46.1 FINANCIAL RISK MANAGEMENT
(i) Risk management framework

c) Price risk
Exposure

51. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans:

INFORMATION PURSUANT TO THE
PROVISIONS OF SCHEDULE III OF THE
COMPANIES ACT, 2013

56. SIGNIFICANT EVENTS AFTER THE
REPORTING PERIOD

57. APPROVAL OF STANDALONE FINANCIAL
STATEMENTS