B Material Accounting Policies

I. Statement of compliance

The Standalone financial statements have been prepared in accordance with the accounting principles generally
accepted in India including Indian Accounting Standards (Ind AS) prescribed under the section 133 of the Companies
Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to
time) and presentation and disclosures requirement of Division II of revised Schedule Ill of the Companies Act 2013,
(Ind AS Compliant Schedule Ill), as applicable to standalone financial statement.

Accordingly, the Company has prepared these Standalone financial statements which comprise the Balance Sheet
as at 31 March, 2026, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes
in Equity for the year ended as on that date, and accounting policies and other explanatory information (together
hereinafter referred to as "Standalone financial statements" or "financial statements").

These Financial statements do not reflect the effects of events that occurred after the respective dates of the
board meeting held for the approval of the financial statements as at and for the year ended March 31, 2026, as
mentioned above.

The accounting policies are applied consistently and presented in the financial statement except where a newly
issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change
in accounting policy hitherto in use.

This note provides a list of the accounting policies adopted in the preparation of the financial statement. These
policies have been consistently applied to all the year presented unless otherwise stated.

II. Basis of Preparation and Presentation

The Standalone financial statements of the Company have been prepared in accordance with the historical cost
basis except for certain assets and liabilities (financial instruments and share based payment) are measured at fair
valued, as explained in the accounting policies below.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to
the fair value measurement in its entirety, which are described as follows:

Level 1 - Quoted prices (unadjusted) 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.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value and for non-recurring
measurement, such as assets held for distribution in discontinued operations.

At each reporting date, the Management analyses the movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation,
computation to contracts and other relevant documents.

The Management also compares the change in the fair value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant
notes.

III. Functional and presentation currency

The Company''s standalone financial statements are reported in Indian Rupees, which is also the Company''s
functional currency, and all values are rounded to the nearest Millions (INR 000,000), except when otherwise
indicated.

IV. Historical cost convention

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the
historical cost convention on the accrual basis, except for the following:

¦ certain financial assets and liabilities which are measured at fair value or amortised cost;

¦ defined benefit plans and

¦ share-based payments

V. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / noncurrent classification.

An asset is classified as current when it satisfies any of the following criteria; (a) it is expected to be realised in, or is
intended for sale or consumption in, the Company''s normal operating cycle. (b) it is held primarily for the purpose
of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash
equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in
the Company''s normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be
settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option
of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Company has identified its operating cycle as 12 months.

VI. Significant judgements and estimates

The preparation of financial statement in conformity with Ind AS requires the management to make estimates and
assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount
of revenue and expenditure for the period and disclosures of contingent liabilities as at the Balance Sheet date.
Actual results could differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed
information about each of these estimates and judgments is included in relevant notes together with information
about the basis of calculation.

Critical accounting estimates:

(a) Useful lives of Property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This reassessment may result in change in depreciation expense in future periods.

(b) Income Taxes

Significant judgments are involved in determining the provision for income taxes including judgment on
whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve
complex issues, which can only be resolved over extended time periods.

(c) Deferred Taxes

Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their
carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The
ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the
periods in which those temporary differences and tax loss carry forwards become deductible. The Company
considers the expected reversal of deferred tax liabilities and projected future taxable income in making this
assessment. The amount of the deferred tax assets considered realizable, however, could be reduced in the
near term if estimates of future taxable income during the carry-forward period is reduced.

(d) Expected credit losses on financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected
timing of collection. The Company uses judgment in making these assumptions and selecting the inputs
to the impairment calculation, based on the Company''s past history, customer''s creditworthiness, existing
market conditions as well as forward looking estimates at the end of each reporting period.

(f) Defined benefit plans and compensated absences

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit
obligation are based on actuarial valuation using the projected unit credit method. 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.

(g) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment. The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or
not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create
an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the
option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable
period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated
or for a portfolio of leases with similar characteristics.

Accounting Policies

The accounting policies set out below have been applied consistently to the year presented in the financial
statements.

VII. Revenue Recognition

(a) Sale of Goods

The Company recognises revenue when control over the promised goods or services is transferred to the
customer at transaction price that reflects the consideration to which the Company expects to receive in
exchange for those goods or services. The Company has generally concluded that it is the principal in its
revenue arrangements as it typically controls the goods or services before transferring them to the customer.

Revenue is generally adjusted for variable consideration such as discounts, rebates, refunds, credits, price
concessions, incentives, liquidated damages or other similar deductions in a contract except when it is highly
probable it will not be provided. The amount of revenue excludes any amount collected on behalf of third
parties.

The Company recognises revenue generally at the point in time when the products are delivered to customer
or when it is delivered to a carrier for export sale, which is when the control over product is transferred to the
customer.

In revenue arrangements with multiple performance obligations, the Company accounts for individual
products and services separately if they are distinct - i.e. if a product or service is separately identifiable from
other items in the arrangement and if a customer can benefit from it. The consideration is allocated between
separate products and services in the arrangement based on their stand-alone selling prices. Revenue from
sale of by-products are included in revenue.

There is no significant financing component in revenue recognition. In case of any such financing component
is there in revenue arrangements, the Company adjusts the transaction price for financing component, if any
and the adjustment is accounted in finance cost."

(b) Other income

Dividend income from investments is recognised when the shareholder''s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Company and the amount
of income can be measured reliably).

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset''s net carrying amount on initial recognition.

VIII. Inventories

Inventories are stated at the lower of cost and net realisable value.

(a) Cost of raw materials include cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on FIFO Method basis.

(b) Cost of finished goods and work in progress include cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is
determined on FIFO Method basis.

(c) Cost of traded goods include purchase cost and inward freight. Costs is determined on FIFO Method basis.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion
and costs necessary to make the sale.

IX. Foreign currency transactions and translation
(a) Functional and presentation currency:

Items included in the Standalone Financial Statements of the Company are measured using the currency of
the primary economic environment in which the Company operates (functional currency). The Standalone
Financial Statements of the Company are presented in Indian currency, which is also the functional currency
of the Company.

(b) Transactions and balances:

Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gain / (loss) resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated in foreign currencies at year end
exchange rates are generally recognised in the Standalone Statement of Profit and Loss, except that they are
deferred in other equity if they relate to qualifying cash flow hedges. Foreign exchange differences regarded
as an adjustment to borrowing costs are presented in the Standalone Statement of Profit and Loss, within
finance costs. All other foreign exchange gain / (loss) presented in the Standalone Statement of Profit and
Loss are on a net basis within respective expense/ income head.

Non-monetary items that are measured at fair value and denominated in a foreign currency are translated
using the exchange rates at the date when the fair value was determined. Translation differences on assets
and liabilities carried at fair value are reported as part of the fair value gain / (loss). Non-monetary items that
are measured in terms of historical cost in a foreign currency are not revalued.

X. Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

(a) Current income tax

Current tax is the amount of expected tax payable based on the taxable profit for the period as determined in
accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in
the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is provided in full using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(a) When the deferred tax liability arises from the initial recognition of goodwill (b) In respect of taxable
temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, when the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised, except (a) when the deferred tax
asset relating to the deductible temporary difference arises from the initial recognition of an asset or
liability in a transaction that is not a business combination

(b) In respect of deductible temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable
that the temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

NOTE 1 : Significant Accounting Policies

a. Corporate information

Solex Energy Limited ("the Company") is a manufacturer of solar photo-voltaic modules as well as engaged in the
business of Engineering, Procurement and Construction (EPC) in the solar energy market, wherein the manufactured
modules are utilized. The registered office of the company is located at Plot No. 131/A, Phase 1, Nr. Krimy Industries,
GIDC, Vitthal Udhyognagar, Anand, Gujarat, India - 388121

b. Significant Accounting Policies

i. Statement of compliance

The financial statements has been prepared in accordance with Accounting Standards ("AS") notified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended.

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle
and other criteria set out in the Schedule II to the Companies Act, 2013. Based on the nature of products and services
and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for
the purpose of current and non-current classification of assets and liabilities.

ii. Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis. The Company has adopted the accrual
system of accounting and the accounts are prepared on a going concern concept.

The functional and presentation currency of the Company is Indian Rupee ("H") which is the currency of the primary
economic environment in which the Company operates.

iii. Property, Plant and Equipment

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses,
if any. Cost includes purchase price (net of trade discount and rebates) and any directly attributable cost of bringing
the asset to its working condition for its intended use.

Intangible assets are recorded at the consideration paid for acquisition of such assets and carried at cost less
accumulated amortization and impairment loss, if any.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant
and equipment are required to be replaced at intervals, the Company depreciates them separately based on their
specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of
the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance
costs are recognised in the statement of profit and loss as incurred.

Depreciation

Depreciation commences when as assets is ready for its intended use.

Depreciation is recognised on the cost of assets less their residual values over their estimated useful lives, using the
straight-line method as prescribed in Schedule II to the Companies Act, 2013.

Intangible Assets are amortised on straight line basis over the asset''s anticipated useful life estimated by management.

iv. Foreign Currency Transaction

Income & Expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction.
Foreign Currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on
the transaction date and exchange gains and losses arising on settlement and restatement are recognized in the
statement of profit and loss account.

The Company has outstanding balances payable to Foreign suppliers of $ 47,40,080.45 (equivalent to H4,056.61
Lacs) on year end which is Hedged through forward Forex booking.

During the year company has direct import of material, services and also Fixed Assets with their parts as follows:

v. Revenue Recognition

Revenue from contracts with customers is recognized when control of goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has concluded that it is the principal in its revenue arrangement because it
typically controls the goods or services before transferring them to the customers.

Revenue from sale of goods is recognized at the point when control of asset is transferred to the customer, generally
on delivery of the goods and services.

Revenue on installation and commissioning contracts are recognized as per terms of contracts. Revenue from
maintenance contracts are recognized pro-rata over the period of the contract.

vi. Retirement Benefits

The company is complying the provision of EPF and employer contribution and administration charges for the same
are debited to profit & loss Account.

As per information provided to us provisions of Gratuity are applicable to the Company and have comply the provision
of Gratuity Act and provision for the period is debited to profit & Loss Account

NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES

a. Corporate information

Solex Energy Limited ("the Company") is a manufacturer of solar photo-voltaic modules as well as in the Engineering, Procurement and Construction (EPC) in the solar energy market, wherein the manufactured modules are utilized. The registered office of the company is located at Plot No. 131/A, Phase 1, Nr. Krimy Industries, GIDC, Vitthal Udhyognagar, Anand, Gujarat, India - 388121

b. Significant Accounting Policies

i. Statement of compliance

The financial statements has been prepared in accordance with Accounting Standards ("AS") notified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended.

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule II to the Companies Act, 2013. Based on the nature of products and services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

ii. Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis. The Company has adopted the accrual system of accounting and the accounts are prepared on a going concern concept

The functional and presentation currency of the Company is Indian Rupee ("Rs.") which is the currency of the primary economic environment in which the Company operates.

iii. Property, Plant and Equipment

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price (net of trade discount and rebates) and any directly attributable cost of bringing the asset to its working condition for its intended use.

Intangible assets are recorded at the consideration paid for acquisition of such assets and carried at cost less accumulated amortization and impairment loss, if any.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

Estimated useful lives of the Tangible and Intangible assets

Depreciation

Depreciation commences when as assets is ready for its intended use.

Depreciation is recognised on the cost of assets less their residual values over their estimated useful lives, using the straight-line method as prescribed in Schedule II to the Companies Act, 2013.

Intangible Assets are amortised on straight line basis over the asset''s anticipated useful life estimated by management.

iv. Foreign Currency Transaction

The functional currency of the company is Indian Rupee.

Income & Expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Foreign Currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the transaction date and exchange gains and losses arising on settlement and restatement are recognized in the statement of profit and loss account.

The Company has outstanding balances payable of Foreign currency of $ 92.05 Lakh and 9681.75 EURO (equivalent to Rs. 7725.16 Lacs) on year end which is unhedged foreign currency exposure.

During the year company has direct import of material and also machinery with their parts as follows:

v. Revenue Recognition

Revenue from contracts with customers is recognized when control of goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has concluded that it is the principal in its revenue arrangement because it typically controls the goods or services before transferring them to the customers.

Revenue from sale of goods is recognized at the point when control of asset is transferred to the customer, generally on delivery of the goods.

Revenue on installation and commissioning contracts are recognized as per terms of contracts. Revenue from maintenance contracts are recognized pro-rata over the period of the contract.

vi. Retirement Benefits

The company is complying the provision of EPF and employer contribution and administration charges for the same are debited to profit & loss Account.

As per information provided to us provisions of Gratu ity are applicable to the Company and have complythe provision of Gratuity Act and provision for the period is debited to profit & Loss Account

c. Provisions, Contingent Liability & Contingent Assets

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

For the year company has executed various tenders and recovered O&M charges from various customers from services and maintenance during future period as specified under respective contractsand has been provided in proportionate maintenance income for remaining period of contract. The outstanding obligation towards O&M charges is Rs. 2,16,82,852 as on date of balance sheet.

d. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual and estimates are recognized in the period in which the result are known or materialize.

e Provision for Current and Deferred Tax

Current income tax expense comprises of taxes on income from operations in India. Income tax payable in India is determined in accordance with the applicable rates and the provisions of the Income Tax Act, 1961. A provision made for income tax annually, based on tax liability computed, after considering tax allowances and exemptions. Tax expense for a year comprises of current tax and deferred tax

NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES

a. Corporate information

Solex Energy Limited (“the Company”) is a manufacturer of solar photo-voltaic cells and modules as well as in the Engineering, Procurement and Construction (EPC) in the solarenergy market, wherein the manufactured cells/modules are utilized. The registered office ofthe company is located at Plot No. 131/A, Phase 1, Nr. Krimy Industries, GIDC, Vitthal Udhyognagar, Anand, Gujarat, India - 388121

b. The Company has shown Net of Debtors and Creditors in case of Sub-Contrat (Back to Back) Contracts

c. Significant Accounting Policies

i. Statement of compliance

The financial statements has been prepared in accordance with Accounting Standards (“AS”) notified under section 133 ofthe Act, read with Rule 7 ofthe Companies (Accounts) Rules, 2014, as amended.

All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule II to the Companies Act, 2013. Based on the nature ofproducts and services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

ii. Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis. The Company has adopted the accrual system ofaccounting and the accounts are prepared on a going concern concept

The functional and presentation currency of the Company is Indian Rupee (“Rs.”) which is the currency of the primary economic environment in which Company operates.

iii. Property, Plant and Equipment

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price (net of trade discount and rebates) and any directly attributable cost of bringing the asset to its working condition for its intended use.

Intangible assets are recorded atthe consideration paid for acquisition of such assets and carried at cost less accumulated amortization and impairment loss, if any.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount ofthe plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

Depreciation

Depreciation commences when as assets is ready for its intended use.

Depreciation is recognised on the cost ofassets less their residual values overtheir estimated useful lives, using the straight-line method as prescribed in Schedule II to the Companies Act, 2013.

Intangible Assets are amortised on straight line basis over the asset’s anticipated useful life estimated by management.

iv. Foreign Currency Transaction

The functional currency of the company is Indian Rupee.

Income & Expenses in foreign currencies are recorded at exchange rates prevailing on the date ofthe transaction. Foreign Currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the transaction date and exchange gains and losses arising on settlement and restatement are recognized in the statement of profit and loss account.

The Company has outstanding balances payable of Foreign currencyof $ 387448 (equivalentto Rs. 293.71 Lacs) on yearend which is unhedgedforeign currency exposure.

During the year company has direct import of material and also machinery with their parts as follows:

v. Revenue Recognition

Revenue from contracts with customers is recognized when control of goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods orseivices. The Company has concluded that it is the principal in its revenue arrangement because it typically controls the goods or services before transferring them to the customers.

Revenue from sale of goods is recognized at the point when control of asset is transferred to the customer, generally on delivery of the goods.

Revenue on installation and commissioning contracts are recognized as per terms of contracts. Revenue from maintenance contracts are recognized prorata over the period of the contract.

vi. Retirement Benefits

The company is complying the provision of EPF and employer contribution and administration charges for the same are debited to profit & loss Account.

As per information provided to us provisions of Gratuity are applicable to the Company and have comply the provision of Gratuity Act and provision for the period is debited to profit & Loss Account

d. Provisions, Contingent Liability & Contingent Assets

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

For the year company has executed various tenders and recovered O&M charges from various customers from services and maintenance during future period as specified under respective contracts and has been provided in proportionate maintenance income for remaining period of contract. The outstanding obligation towards O&M charges is Rs. 3,49,40,461 as on date of balance sheet.

e. Use of Estimates

The preparation of financial statements in conformitywith the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual and estimates are recognized in the period in which the result are known or materialize.

f. Provision for Current and Deferred Tax

Current income tax expense comprises of taxes on income from operations in India. Income tax payable in India is determined in accordance with the applicable rates and the provisions of the Income Tax Act, 1961. A provision made for income tax annually, based on tax liability computed, after considering tax allowances and exemptions. Tax expense for a year comprises of current tax and deferred tax

During the year 2022-23, the Deferred Tax Asset (DTA) and Deferred Tax Liability(DTL) comprise of the effect of the following time difference.