Accounting Policies of Solex Energy Ltd. Company

Mar 31, 2025

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

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Mar 31, 2024

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

	are as follows:
	Tangible Assets	Useful lives (Years)
	Furniture & Fixtures	7
	Plant & Machinery	5
	Plant & Machinery (Renewable Energy Device manufacturing)	3
	Computer	3
	Office Equipment	5
	Vehicle	10
	Software	10
	Trademark	1

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:

	Import of	Currency	Currency (Foreign)	Currency (Indian Rs. In Lakhs)
	Material	USD	91,13,204.81	7637.15
	Machinery	USD	37,500.00	31.35
	Testing Charges	USD	54,764.25	47.84
	Testing Charges	EURO	9681.75	8.83

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

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Mar 31, 2023

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.

Estimated useful lives of the Tangible and Intangible assets are as follows:

	Tangible Assets	Useful lives (Years)
	Furniture & Fixtures	7
	Plant & Machinery	5
	Plant & Machinery (Renewable Energy Device manufacturing)	3
	Computer	3
	Office Equipment	5
	Vehicle	10
	Software	10
	Trademark	1

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:

	Import of	Currency	Currency (Foreign)	Currency (Indian Rs. In Lakhs)
	Material	USD	2397694.16	1936.90
	Machinery	USD	1741177.44	1363.17
	Testing Charges	USD	4720.00	12.67
	Testing Charges	EURO	10154.25	8.90

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.

	Particulars		Amount (Rs in lakhs)
	Fixed Asset as per Company Act		5,455.14
	Add : Loss as per Company Act		-
	Less: Fixed Asset as per Income Tax Act		5,001.99
	Less:Taxes Disallowed during the year u/s 43B		-
	Less: Accumulated Depreciation		-
	Depreciation claimed Excess up to 31-03-2023		453.15
	DTL as on 31.03.2023 @ 25.168%		114.05
	MAT Credit		66.09
	Net DTL as on 31.03.2023 @ 25.168%		47.95
	Opening Balance of DTL as on 31.03.2022		1.85
	The amount credited to Profit & Loss Account		46.11
	Advance taxes and provisions for current income taxes are prescribed in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction and the intention is to settle the asset and liability on net basis.
g.	Payments to Auditors		(Rs. In Lakhs)
	Particulars	FY 2022-23	FY 2021-22
	Statutory Audit Fees	1.25	1.25
	Tax Audit Fees	1.00	1.10
	Other Services	0.25	0.15
	Total	2.50	2.50