Notes to Accounts of Sungarner Energies Ltd.

Mar 31, 2025

2.12 Contingent liabilities and provisions

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

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more
uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognized when the Company has a present obligation as a result of past events, 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. Provisions are not disclosed to their present value and are determined based
on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting
date and are adjusted to reflect the current best estimates.

2.13 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year.

2.14 Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at Bank, Cash in
Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and other permissible instruments as
per Accounting Standard AS-3.

2.15 Borrowing Cost:

Borrowing Cost attributable to the acquisition or construction of a qualifying asset is capitalized as part of the
cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.16 Segment Information:

Based on the principles for determination of segments given in Accounting Standard 17 "Segment Reporting”
issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the Company is mainly
engaged in the activity surrounded with main business of the Company hence there is no reportable segment.

2.17 Prior Period Expenditure:

The change in estimate due to error or omission in earlier period is treated as prior period items. The items in
respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not treated
as prior period expenditure.

2.18 Extra Ordinary Items:

The income or expenses that arise from event or transactions which are clearly distinct from the ordinary
activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items
are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the
impact of the same on current profit can be perceived.

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Mar 31, 2024

Data Not Available

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Mar 31, 2023

(a) Rights, preferences and restrictions attached to equity shares Equity Shares

The Company has one class of equity shares having par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share. All shareholders arc equally entitled to dividend. In the event of liquidation, the equity shareholders ate entitled to receive remaining assets of the Company (after distribution of all prcicrcntial amounts, if any) in the proportion of equity shares held by the shareholders.

13. UyTincd benefit plans;

The Company provides for gratuity for employees In India as per die Payment of Gratuity Act, 1972. Employees who arc in continuous service for -a period of 5 years arc eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salarv per month computed proportionately for 15 days salary multiplied for the number of years of service.

33 The Code on Social Security. 2020 (''Code'') relating to employee benefits during employment and postemployment received Presidential assent on 28th September JUi and has

been published in the Gazette of India. However, the date on which the provisions of the Code will conic into effect has not been noufied. further, related Schemes and Rules arc

also awaited. The Company will evaluate the impact of the code after it has been notified.

34 In opinion of the Board, the loans & advances and other current assets have a value, which if realized in die ordinary course of business, will not be less than the value stated in the

Balance Sheet.

35 Additional regulatory information

(i) There arc no proceedings that have been initiated or pending against the Company for holding any benami property under the Prohibition ot Benami Property Iransactions Act, 1088 (as amended from time to time) (earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender

(iii) There arc no transactions / relationship with struck off companies.

(iv) The Company does not have any transaction 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). Further, there was no previously unrecorded income and no additional assets were required to be recorded in the books of account during the year.

(v) The Company has neither traded not invested in Crypto currency nr Virtual Currency during the year ended March 31. 2023. Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in Co-pro Currency or Virtual Currency.

(vi) The Company has not advanced or loaned or invested funds (either borrowed hinds or share premium or any other sources or kind of funds) to any oilier person or entity, including foreign enuties ("Intermediaries") with the understanding (whether recorded in wilting ot otherwise) that the Intermediary shall, whether dircedv or indirectly lend or invest in other persons/entittes identified in any other manner whatsoever by or on behalf of the Company (''ulnmaic beneficiaries'') or provide any guarantee, security or die-like on behalf of the Ultimate Beneficiaries.

(VII) Valuation of PP&H, intangible asset and investment property: The Company has not revalued ies property, plant and equipment (including right-of-usc asseis) ot intangible assets or both during the current year.

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of layers) Rules, 2017, and there arc no companies beyond the specified layers.

(ix) T*hc Company does not have any charges or satisfaction of charges which me yet to be registered with the Registrar ot Companies beyond the stannary period

(x) The Company has not received any fund from any person(s) or cnuty(ics), including foreign entities finding party") with the understanding (whether recorded in writing or Otherwise) dial the Company shall dircedy or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf ot the funding party (ultimate beneficiaries); or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

36 Previous year amounts have been regrouped and/or reclassified wherever necessary to confirm ro those ot die current year grouping and/or classification. Tim i» the summary of significant accounting policies and other explanatory inl''otmation referred to in oar report of even date.