Accounting Policies of Taylormade Renewables Ltd. Company

Mar 31, 2025

1.3 Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in the
financial statements unless otherwise stated.

i Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and
rebates less accumulated depreciation and impairment loss, if any.

Such cost include purchase price, borrowing cost and any cost directly attributable to bringing assets
to its location and working condition or its intended use.

Depreciation

Depreciation on Tangible Assets, PPE is charged on WDV method as per the useful life prescribed in
the Companies Act, 2013 and in the manner specified therein. The residual values, useful lives and
methods of depreciation of property plant and equipment are reviewed at each financial year end and
adjusted prospectively, if any.Depreciation on fixed assets added/ disposed off/ discarded during the
year is provided on a pro-rata basis with reference to the month of addition/disposal/discarding.

Useful Life

Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the
Companies Act, 2013.

ii Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets within a
time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into following categories:

a) Financial Assets at amortized cost

b) Financial Assets at fair value through other comprehensive income (FVTOCI)

c) Financial Assets at fair value through profit or loss (FVTPL)

d) Impairment of financial assets

a) Financial Assets at amortised cost

A Financial Asset is measured at the amortised cost if both the following conditions are met:

- The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using
the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in other income in the statement of profit and loss.

b) Financial Assets at FVTOCI

A Financial Asset is measured at the amortised cost if both the following conditions are met:

- The objective of the business model is achieved both by collecting contractual cash flows and selling
the financial assets, and

- The asset’s contractual cash flows represent SPPI.

Financial Assets included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive income
(OCI). On derecognition of the asset, cumulative gain or loss previously recognized in OCI is
reclassified to the statement of profit and loss. Interest earned whilst holding FVTOCI is reported as
interest income using the EIR method.

c) Financial Assets at FVTPL

FVTPL is a residual category for Financial Assets. Any asset, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

Impairment of trade receivables

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition. Trade receivables are tested for impairment on a specific basis after
considering the outstanding amount, security deposit collected, age bracket etc. and expectations
about future cash flows.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e., removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘passthrough’ arrangement; and either (a) the Company has transferred substantially all the risks and

rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.

- When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor retained substantially all of the risks and rewards
of the asset, nor transferred control of the asset, the Company continues to recognise the transferred
asset to the extent of the Company''s continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset and the associated liability are measured on
a basis that reflects the rights and obligations that the Company has retained.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised
initially at fair value and, in the case of loans and borrowings and payables, at transaction cost net of
directly attributable transaction costs.

Subsequent measurement

The financial liabilities is measured at Amortised Cost.

Discounting of long-term financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial recognition. In case
of financial liabilities / assets which are required to subsequently be measured at amortised cost,
interest is accrued using the effective interest method.

iii Inventories

Inventories consist of goods and to be measured as per technical analysis of management''s
judgment.

iv Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks,. Bank
overdrafts that are repayable on demand and form an integral part of our cash management are
included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

v Leases

At the inception it is assessed, whether a contract is a lease or contains a lease. A contract is a lease
or contains a lease if it conveys the right to control the use of an identified asset, for a period of time,

in exchange for consideration. If lease asset held land & building are perpetual in nature, than it will
be treated as Land & Building.

To assess whether a contract conveys the right to control the use of an identified asset, Company
assesses whether the contract involves the use of an identified asset. Use may be specified explicitly
or implicitly.

- Use should be physically distinct or represent substantially all of the capacity of a physically distinct
asset.

- If the supplier has a substantive substitution right, then the asset is not identified.

- Company has the right to obtain substantially all of the economic benefits from use of the asset
throughout the period of use

- Company has the right to direct the use of the asset

- In cases where the usage of the asset is predetermined, the right to direct the use of the asset is
determined when Company has the right to use the asset or Company designed the asset in a way
that predetermines how and for what purpose it will be used.

At the commencement or modification of a contract, that contains a lease component, Company
allocates the consideration in the contract, to each lease component, on the basis of its relative
standalone prices. For leases of property, it is elected not to separate non-lease components and
account for the lease and non-lease components as a single lease component.

Company as a Lessee:

Company recognizes a right-of-use asset and a lease liability at the lease commencement date.
Right-Of-Use Asset (ROU):

The right-of-use asset is initially measured at cost. Cost comprises of the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, any initial direct
costs incurred by the lessee, an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located less any lease incentives received.

After the commencement date, a lessee shall measure the right-of-use asset applying cost model,
which is Cost less any accumulated depreciation and any accumulated impairment losses and also
adjusted for certain re-measurements of the lease liability

Right-of-use asset is depreciated using straight-line method from the commencement date to the end
of the lease term. If the lease transfers the ownership of the underlying asset to the Company at the

end of the lease term or the cost of the right-of-use asset reflects Company will exercise the purchase
option, ROU will be depreciated over the useful life of the underlying asset, which is determined
based on the same basis as property, plant and equipment.

Lease liability:

Lease liability is initially measured at the present value of lease payments that are not paid at the
commencement date. Discounting is done using the implicit interest rate in the lease, if that rate
cannot be readily determined, then using Company’s incremental borrowing rate. Incremental
borrowing rate is determined based on entity’s borrowing rate adjusted for terms of the lease and
type of the asset leased.

Lease payments included in the measurement of the lease liability comprises of fixed payments
(including in substance fixed payments), variable lease payments that depends on an index or a rate,
initially measured using the index or rate at the commencement date, amount expected to be payable
under a residual value guarantee, the exercise price under a purchase option that the Company is
reasonably certain to exercise, lease payments in an optional renewal period if the Company is
reasonably certain to exercise an extension option, and penalties for early termination of a lease
unless the Company is reasonably certain not to terminate early.

Lease liability is measured at amortised cost using the effective interest method. Lease liability is re¬
measured when there is a change in the lease term, a change in its assessment of whether it will
exercise a purchase, extension or termination option or a revised in-substance fixed lease payment,
a change in the amounts expected to be payable under a residual value guarantee and a change in
future lease payments arising from change in an index or rate.

When the lease liability is re-measured, corresponding adjustment is made to the carrying amount of
the right-of use asset. If the carrying amount of the right-of-use asset has been reduced to zero it will
be recorded in statement of profit and loss.

Right-of-use asset is presented under “Property Plant and Equipment” and lease liabilities are
presented under “Financial liabilities” in the balance sheet.

Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases.
The lease payments associated with these leases are recognised as an expense on a straight-line
basis over the lease term.

vi Revenue Recognition

Revenue is recognised on the basis of approved contracts regarding the transfer of goods or services
to a customer for an amount that reflects the consideration to which the entity expects to be entitled
in exchange of those goods or services.

vii Sale of Goods

Revenue from the sale of the goods is recognised when delivery has taken place and control of the
goods has been transferred to the customer according to the specific delivery term that have been
agreed with the customer and when there are no longer any unfulfilled obligations. Revenue is
measured after deduction of any discounts, price concessions, volume rebates and any taxes or
duties collected on behalf of the government such as goods and services tax, etc. Accumulated
experience is used to estimate the provision for such discounts, price concessions and rebates.

viii Interest Income

For all financial assets measured either at amortised cost or at fair value through other
comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the
rate that exactly discounts the estimated future cash payments or receipts over the expected life of
the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the
financial asset or to the amortised cost of a financial liability. When calculating the effective interest
rate, the Company estimates the expected cash flows by considering all the contractual terms of the
financial instrument but does not consider the expected credit losses.

ix Finance Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A Qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.

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

x Taxes on Income

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to
the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. It is measured
using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any
tax arising from dividends.

Deferred tax

Deferred tax is recognized for the future tax consequences of deductible temporary differences
between the carrying values of assets and liabilities and their respective tax bases at the reporting
date, using the tax rates and laws that are enacted or substantively enacted as on reporting date.

Deferred tax liability are generally recorded for all temporary timing differences.

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Mar 31, 2023

1. COMPANY OVERVIEW

TAYLORMADE RENEWABLES LIMITED (''the Company'') is dealing in business of providing renewable energy solutions.

2. SIGNIFICANT ACCOUNTING POLICIESA. BASIS OF ACCOUNTING:

• The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013("the Act"), as applicable. The Financial Statements have been prepared on Accrual Basis under the Historical Cost convention. The Accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.

• All the 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 Schedule III of the Act. The Company has ascertained its operating cycle to be 12 months for the purpose of current and non-current classification of assets and liabilities.

B. PRESENTATION OF FINANCIAL STATEMENTS

• The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ( "the Act"). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards, as applicable.

C. USE OF ESTIMATES:

The preparation of the Financial Statements in conformity with Generally Accepted Accounting Principles requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported amounts of income and expenditure during the period. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

D. DEPRECIATION:

Depreciation has been provided by W.D.V. method as per Companies act 2013.

E. FIXED ASSETS:

Tangible Fixed Assets:

Gross Fixed Assets are stated at cost of Acquisition including incidental expense relating to acquisition and installation. Cost includes purchase price, taxes and duties which are not recoverable as credit under specific act, labour cost and other direct costs incurred up to the date the asset is ready for its intended use. Allocation of indirect expenses to capital account is done on the basis of technical evaluation by the management. If any.

F. INVESTMENTS:

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and duties.

G. BORROWING COST AND FINANCE CHARGES:

Interest and other borrowing costs attributable to qualifying assets has not capitalized. Other interest and borrowing costs are charged to the revenue. If any, Other Finance cost incurred for raising long term borrowing is amortized over the tenure of the borrowing. If any,

Interest and other costs in connection with the borrowing of the funds to the extent related/ attributed to the acquisition / construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalized as part of the cost of asset in conformity with the provision of AS -16 " Borrowing Costs" and other borrowing costs are charged to Profit and Loss Account for the year in which they are incurred.

H. INVENTORIES:

Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary.

I. REVENUE RECOGNITION:

Revenue from operations is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sales of Goods is recognized when significant risks and rewards of ownership of Goods have been passed to Buyers

Interest income is recognized on time proportion basis taking into account the principal amounts outstanding and the rate of interest.

J. TAXATION:

Taxes on income are accounted with AS-22 " Accounting for Taxes on Income". Taxes on income comprises both current tax and deferred tax.

• Provision for Income tax is determined considering the disallowance, exemptions and deductions and/or liabilities/ credits and set off available as laid down by the tax law and interpreted by various authorities.

• Deferred Tax being the tax effect of timing difference representing the difference between taxable income and accounting income that originate in one period and are cable of reversal in one or more subsequent period(s). This is measured using substantively enacted tax rate and tax regulation.

• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realize

• The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its appropriateness.

• 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 deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

• Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The company recognizes MAT credit available as an asset only to the extent there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the statement of Profit and Loss and shown as "MAT Credit Entitlement."

The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the sufficient period.

K. PROVISIONS, CONTINGENT LIABILITIES AND ASSETS:

Provisions:

A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent Liabilities:

A Contingent liability is a possible obligation that arises from the 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 liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements by way of notes to accounts.

L. EMPLOYEE BENEFITS:

Defined contribution plan:

• Provident Fund is Defined contribution scheme for all applicable employees. Company''s contribution to defined contribution scheme are recognized to the statement of Profit & Loss for the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

• Leave encashment is recognized as a liability as per rules of the company. Accumulated leave can be availed at any time during the tenure of employment but can be enchased on the completion of service, the liability is recognized on accrual basis.

• The company provides for Gratuity on the basis of actuarial valuation. The cost of providing defined benefits is determined using the Projected Unit Credit Method with acturial valuation being carried out at each balance sheet date.

• The Company presents the above liabilities as current and non-current in the balance sheet as per actuarial valuation by the independent actuary.

M. IMPAIRMENT OF ASSETS:

The carrying amounts of the assets are reviewed at each balance sheet date if there is any indication of impairment based on the internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in the prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

N. EARNING PER SHARE:

The company reports basic and diluted Earnings per share in accordance with accounting standard 20 "Earning per Share". Basic earnings per share are computed by dividing the net profit or loss after tax for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per shares outstanding during the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares except where the result are anti - dilutive.

O. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and short-term investments with an original maturity of three months or less.

P. Pre-operative Expenditure:

Pre-operative Expenditure incurred for expansion project including specific financial cost till commencement of commercial production, attributable to fixed assets are capitalized.

3. RELATED PARTY DISCLOSURES:

The Company has not any transaction of a material nature with the promoters, Directors of management, their subsidiaries or relatives that may have potential conflict with the interest of the company at large. The register

of contacts containing the transaction in which Directors are interested in place before the board regularly for it approval.

The Company confirms that none of the transactions, if any, with the related parties was in material conflict with the interest of the Company.

4. In the opinion of the Board of Directors, the current assets, loans and advances would realize not less than the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and reasonably estimated.

5. The Company has not received any memorandum (as required to be filled by the suppliers with the notified authority under Micro, Small and Medium Enterprise Development Act, 2006) claiming their status during the year as micro, small or medium enterprises. Consequently, there are no amounts paid/ payable to such parties during the year.

6. Previous year figures have been regrouped /rearranged wherever necessary to correspond with the current year''s classifications/disclosure.

7. The Company is operationally and financially fully supported by its promoter companies. In view of the Company''s long term business projections and promoter''s commitment to the business by providing for necessary funds as and when need arises, the financial statements have been prepared on a going concern basis.