Accounting Policies of Techknowgreen Solutions Ltd. Company

Mar 31, 2025

A. Corporate Information

TechknowgreenSoiutio ns Limited is a company domiciled in India with its registered atfieeat Fiat No. 202. Hem Opal Apartment, Plot No. 25, Ekta Society, Wakadewadi, Shivajinagar, Pane - 411005. The Company was formed by conversion of a partnership firm. "Technogreen Environmental Solutions'' {''''Firm") under the provisions of Chapter XXI of Companies Act 2013. The Firm was formed and registered as a partnership firm under the provisions of Indian Partnership Act, 193Z pursuant to a deed of partnership dated April 05, 2001, os amended ana supplemented from time to time. The Firm was converted to public limited company on January 02. 2023. the Company Is engaged in the business of ''providing consulting services in almost every realm of environment & infrastructure planning,, solutions to every problem of environment & climate charge, which are both environmentally as well as economically feasible

B. Significant Accounting Policies

1 Basis of accounting:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2021 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis.

2. Use of Estimates

The preparation of financial statements inconformity with Indian GAAP roquiresthemonagemem to make Judgments, estimates and assumptions that of feet the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period Although these estimates are based on the management''s best knowledge of current events and octions, uncertainty about these assumptions ana estimates could result in the outcomes requiring a marei iol adjustment to the carrying amounts of assets or liabilities in future periods

3. Revenue Recognition:

As set our in Accounting Standard 9: Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flaw to the Company and the revenue can be reliably measured. Revenue from services and sale of product is recognized during in the year in which services are rendered.

The company is following the percentage of completion method ot accounting for its works contract project as per "Accounting Standard 7 (Revised) - Construction Contracts" as notified under Companies (Accounting Standard) Rules, 2005 (as amended).

Revenue is recognized to the extent that it is probable that the economic benefits will flaw to the Company and the revenue can be reliably measured

Fixed price contracts: When the outcome ot the contract is ascertained reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using th© percentage of completion method. Percentage ot completion is the proportion of cost of work performed to date, to the total estimated contract costs.

Cost plus contracts: Contract revenue Is determined by adding the aggregate cost-plus proportionate margin as agreed with the customer,

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the cage may be} exceeds the progress billing, the surplus fs shown as ''Unbilled revenue ''for milestones achieved and contract asset for milestones not achieved

For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be), the surplus is si town as contract liability and termed as ''Excess of billing over revenue'' Amounts received before the related work is performed are disclosed in the Balance Sheet as contract liability and termed as "Advonces from customer''. The amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables.

It it is expected that flcontract will make a loss, the estimated lass would be provided tor In the books of account Such losses would be based on technical assessments

Deferred Revenue Expenditure- Expenses incurred during The year fen consultancy and service contracts, where revenue recognition is contingent upon achieving specific milestones shall be classified as Deferred Revenue Expenditure. These costs shall be disclosed separately and carried forward in the financial statements until the milestone is achieved Upon completion of the milestone, the delerred expenditure shall be recognized as an expense in the Statement of Profit and Loss, in accordance with the revenue recognition principles prescribed under Indian GAAP.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

Expenses are accounted on accrual basis and provision is made for all known losses and expenses

1. Property. Plant & Equipment

Property. Plant & Equipment including Intangible assets are stated at their original cost of acquisition including raxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

2. Depreciation

Depreciation on Hxed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation Is provided Posed on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

All fixed assets Individually costing Rs. 5,000/- or less are fully depreciated in the year of insta II ati o n /p u rcha se.

Depreciation on assets acquired/sold during The year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on iriternal/exlernai factors An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount The recoverable amount is the greater of the ossets, net selling price and value in use. in assessing value in use, the estimated luture cosh flows are discounted to their present value using a pre-tax discount rate that reflects cunent market assessments of the time value of money and risks specific to the asseu

After impairment depreciation is provided on the revised carr ying amount of the asset over Its remaining useful life,

3. Investments^

Investments, which are readily realizable and Intended to be hefd for not more than one year from the date an which such investments are made, are classified as current investments All othei investments are classified as non-current investments. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminutions in vaiue is made to recognize a decline other than temporary in the value of the investments.

Disposal a) an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profir and loss

1. Inventories

Inventories ore valueti as underwork in Progress At cost or net realizable value

Borrowing costs that ar© attributable to the acquisition or construction of the qualifying assets are capitalized as pan of the cost of such assets. A qualifying assets is one that necessarily takes a substantia! period of time to get ready for its intended uses or sale. AN other borrowing costs are charged to revenue in the year of incurrence.

3. Retirement Benefits:-

The gratuity has been provided in books on accrual basis. This section provides the Report under AS 15 (Revised 2005) in respect of Grotuiry Plan.

4. Taxes on Income:-

Provision for current tax is mode on the basis of estimated taxable income for the current accounting year in accordance with rh.e Income Tax Act 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of defei rea tax is reviewed to reassure realization.

Provisions are recognized only when there is a present obligation as a result of past events and when ? reliable estimate of the amount of the obligation can be made

Contingent Liabilities fs disclosed in Notes to the account for;

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(if) Present Obligations arising from past events where ir is not probable that art outflow of resources will b© required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized In the financial statement since this may result In the recognition of the Income that may never be realized

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

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Mar 31, 2024

Note No.: 1

A. Corporate Information

Techknowgreen Solutions Limited is a company domiciled in India with its registered office at Flat No. 202, Hem Opal Apartment, Plot No. 26, Ekta Society, Wakadewadi, Shivajinagar, Pune - 411005. The Company was formed by conversion of a partnership firm, ''Technogreen Environmental Solutions'' ("Firm") under the provisions of Chapter XXI of Companies Act 2013. The Firm was formed and registered as a partnership firm under the provisions of Indian Partnership Act, 1932, pursuant to a deed of partnership dated April 05, 2001, as amended and supplemented from time to time. The Firm was converted to public limited company on January 02, 2023. The Company is engaged in the business of ''providing consulting services in almost every realm of environment & infrastructure planning, solutions to every problem of environment & climate change, which are both environmentally as well as economically feasible.

B. Significant Accounting Policies

1. Basis of accounting

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified 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 financial statements have been prepared under the historical cost convention on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis. Revenue 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.

4. Property, Plant & Equipment

Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

5. Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

All fixed assets individually costing Rs. 5,000/- or less are fully depreciated in the year of installation/ purchase.

Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

6. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminutions in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

7. Inventories

Inventories are valued as under:-

Work in Progress : At cost or net realizable value

8. Borrowing cost

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of time to get ready for its intended uses or sale. All other borrowing costs are charged to revenue in the year of incurrence.

9. Retirement Benefits

The gratuity has been provided in books on accrual basis. This section provides the Report under AS 15 (Revised 2005) in respect of Gratuity Plan.

Table I: Assumptions

10. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure realization.

11. Provisions. Contingent Liabilities and Contingent Assets:- (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for:-

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

General:

Except wherever stated. accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

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Mar 31, 2023

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