Clean Max Enviro Energy Solutions Ltd. कंपली की लेखा नीति

Mar 31, 2026

Note 1.1 Corporate Information

Clean Max Enviro Energy Solutions Limited (the “Company”) is a public company incorporated and domiciled in India, in the year 2010.

The Company is engaged in developing renewable power projects and in generation and sale of power.

The registered office address of the Company is 4^th Floor, The International, 16 Maharshi Karve Road, New Marine Lines Cross Road No. 1, Churchgate, Mumbai, 400 020, Maharashtra, India. The Company is in the business of generation and sale of power through solar.

Note 1.2 Basis of preparation

The Standalone Financial Statements of Clean Max Enviro Energy Solutions Limited (formerly known as Clean Max Enviro Energy Solutions Private Limited) comprise the Standalone Balance Sheet as at 31^st March 2026, and the Standalone Statement of Profit and Loss (including other comprehensive income), Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows for the year ended 31^st March 2026, and notes to the Standalone Financial Statements, including material accounting policies (hereinafter referred to as “the Standalone Financial Statements”).

These Standalone Financial Statements have been prepared in accordance with Indian Accounting Standards (referred to as “Ind AS”) as specified under Section 133 of the Companies Act, 2013, as amended (the “Act”) and other accounting principles generally accepted in India and presentation requirements of Schedule III of the Act.

These Standalone Financial Statements have been prepared on a going concern basis. The accounting policies are applied consistently over the period.

These Standalone Financial Statements were authorised for issue by the Company’s board of directors on 12^th May, 2026. These Standalone Financial Statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest Million, unless otherwise indicated.

Note 1.3 Material Accounting Policies

(a) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue excludes indirect taxes which are collected on behalf of Government.

(i) Revenue from sale of power:

Revenue from sale of power is recognised when the units of electricity is delivered at the price agreed with the customer in the power purchase agreement which coincides with the transfer of

control and the Company has a present right to receive the payment.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other incentives, if any, as specified in the contract with the customer or on account of change in law. Revenue also excludes taxes or other amounts collected from customers in its capacity as an agent. If the consideration in a contract includes a variable amount or consideration payable to the customer, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods /services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

(ii) Revenue from construction contracts:

Contract revenues are recognised over a period of time, based on the stage of completion of the contract activity. Revenue is measured based on the proportion of contract costs incurred for satisfying the performance obligation to the total estimated contract costs.

Expected loss, if any, on a contracts is recognised as expense in the period in which it is foreseen, irrespective of the stage of completion of the contract.

Contract modifications are accounted for, when additions, deletions or changes are approved either to the contract scope or contract price. Accounting for modifications of contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is a standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract, if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price.

(iii) Revenue from sale of services:

Revenue from services rendered over a period of time, such as operation and maintenance contracts, are recognised over the period of the performance obligation.

(iv) Contract balances:

A trade receivable represents the Company’s right to an amount of consideration that is unconditional i.e. only the passage of time is required before payment of consideration is due and the amount is billable.

Unbilled revenue is recognised for work performed under a contract but has not yet been invoiced to the customer.

Advance from customer represents a contract liability which is the obligation to transfer goods or services to a customer for which the Company has received consideration from the customer.

(v) Interest income:

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.

(b) Government subsidy

Government grants in the nature of subsidy related to customer contracts are recognised as income in the Statement of Profit and Loss, on a prudent basis, on commissioning of the solar power plant when there is reasonable assurance that the conditions for the grant of subsidy will be fulfilled and grant will be realised. When the grant relates to an asset, the subsidy amount is deducted from the carrying amount of the asset.

(c) Share of profit or loss in Limited Liability Partnership/ Joint Venture (“LLP/ JV”)

Share of profit or loss in LLP accrues when the same is computed and credited or debited to the Capital/ Current/any other account of the Company in the books of the LLP. Accordingly, share of profit or loss in LLPs is accounted when such share of profit or loss is credited or debited to Partner’s Capital / Current Account as per the terms of the LLP agreement.

Share of profit from joint venture is recognized in the Standalone Statement of Profit and Loss when the right to receive such distribution is established.

(d) Goods and Service tax input credit

Goods and Service tax input credit is accounted for in the books in the period in which the underlying goods

and service received is accounted and when there is reasonable certainty in availing / utilising the credits.

(e) Employee benefits Short-term benefits

Salaries, wages, and other short term benefits, accruing to employees are recognised at undiscounted amounts in the period in which the employee renders the related service.

Retirement benefits Defined contribution plan:

The Company offers its employees defined contribution plans in the form of provident fund and family pension fund. Provident fund and family pension funds cover substantially all regular employees. Contributions are paid during the year into separate funds under certain fiduciary-type arrangements. Both the employees and the Company pay predetermined contributions into provident fund and family pension fund. The contributions are normally based on a certain proportion of the employee’s salary. The contributions made are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plan:

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in Other Comprehensive Income in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

(f) Share-based payments

Equity-settled share-based payments to employees of the Company are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 38. The fair value determined at the grant date of the equity-settled share-based payments to employees of the Company is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of

equity instruments that will eventually vest, with a corresponding increase in equity at the end of year . At the end of each year, the Company revisits its estimate of the number of equity instruments expected to vest and recognizes any impact in profit or loss, such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

(g) Foreign Currencies

The functional currency of the Company is the Indian rupee (Rs.).

Income and 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 balance sheet date and exchange gains and losses arising on settlement and restatement are recognised in profit or loss.

Foreign currency denominated non - monetary assets and liabilities that are measured at historical cost are not retranslated.

(h) Exceptional items

Exceptional items refer to items of income or expense within the income statement from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Company and to assist users of financial statements in making projections of future financial performance.

(i) Taxation

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

(i) Current tax

The tax currently payable is based on taxable profit for the reporting period. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates (applicable tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income taxes are recognized in the statement of profit and loss except to the extent that the tax relates to items

recognized outside profit and loss, either in other comprehensive income 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.

The Organisation for Economic Co-operation and Development (OECD) has published the model rules for global minimum tax (Pillar Two model rules). Pillar Two legislation has been enacted, or substantively enacted, in certain jurisdictions where the Group operates. The Company is within the scope of the OECD Pillar Two model rules and has evaluated the potential exposure to global minimum tax. The Company does not expect any material financial impact for the current period.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax is not recognised for:

• temporary differences on the initial recognition of assets or liabilities in a transaction that:

- is not a business combination; and

- at the time of the transaction (i) affects

neither accounting nor taxable profit or loss and (ii) does not give rise to equal taxable and deductible temporary differences

• temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

(j) Provisions, contingent liability and contingent asset

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the

present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

A contingent liability is disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is remote. A contingent asset is disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

(k) Financial Instruments

Financial assets Classification

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

Trade receivables and debt securities issued are initially recognised when they originate and recorded at transaction price. The Company recognises financial assets (other than trade receivables and debt securities) when it becomes a party to the contractual provisions of the instrument. All financial assets (excluding trade receivables that are recorded at transaction price) are recognised initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement

For the purpose of subsequent measurement, the financial assets are classified in three categories:

• Financial assets at Amortised cost

A financial asset is measured at amortised cost if both of the following conditions are met:

- the asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest (EIR) method. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR and reported as part of interest income in the Standalone Statement of Profit and Loss. The losses if any, arising from impairment are recognised in the Standalone Statement of Profit and Loss.

• Financial assets at fair value through profit or loss (FVTPL)

Financial assets at FVTPL include financial assets that either do not meet the criteria for amortised cost classification or are equity instruments held for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. All derivative financial instruments also fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements may apply.

Assets in this category are measured at fair value with gains or losses recognised in the Standalone Statement of Profit and Loss. The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

• Financial assets at fair value through other comprehensive income (FVOCI) -debt investment

A debt investment is measured is measured at FVOCI if both of the following conditions are met:

- the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

After initial measurement, such financial assets are subsequently measured at fair value. Interest income is recognised using the effective interest (EIR) method. The loss allowance is recognized in other comprehensive income and does not

reduce the carrying value of the financial asset.

On derecognition, gains and losses accumulated in OCI are reclassified to Standalone Statement of Profit and Loss.

• Financial assets at fair value through other comprehensive income (FVOCI) -equity investment

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in Other Comprehensive Income. This election is made on an investment-by-investment basis.

After initial measurement, such financial assets are subsequently measured at fair value. Dividends are recognised as income in Standalone Statement of Profit and Loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to Standalone Statement of Profit and Loss.

Derecognition of financial asset

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised when:

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

• the Company has transferred substantially all the risks and rewards of the asset, or

• the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Investment in subsidiaries and joint ventures

The Company accounts for its investments in subsidiaries and joint ventures at cost.

Financial liabilities Classification

All financial liabilities as subsequently measured at amortised cost.

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement Borrowings

After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Standalone statement of profit and loss when the liabilities are derecognized. Amortised cost is calculated by taking into account any discount or premium on acquisition and transactions costs. The EIR amortisation is included as finance costs in the Standalone Statement of Profit and Loss.

Derivative financial instruments

The Company enters into derivative contracts to hedge foreign currency transactions. Such derivative financial instruments are measured at fair value at the end of each reporting period. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss immediately.

Derecognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Standalone statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

Share capital Ordinary equity shares

Incremental costs directly attributable to the issue of ordinary equity shares and share options are recognized as a deduction from equity, net of any tax effects.

Fair value measurement

The Company’s accounting policies and disclosures require the measurement of fair values for financial and non-financial assets and liabilities. The management regularly reviews significant unobservable inputs and valuation adjustments.

When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (Unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(l) Inventories

Inventories are valued at cost or net realisable value, whichever is lower, cost being worked out on weighted average basis. Cost includes all charges for bringing the goods to their present location and condition.

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

(m) Leases:

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind AS 116.

The Company assesses, whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract involves:

(a) the use of an identified asset,

(b) the right to obtain substantially all the economic benefits from use of the identified asset, and

(c) the right to direct the use of the identified asset.

The Company as a lessee Right to Use Asset

The Company at the inception of the lease contract recognizes a Right-of-Use (RoU) asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term) and low-value assets.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease plus any initial direct costs, less any lease incentives received. Subsequently, the right of use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use assets.

Category Useful life

Leasehold Land 25-30 years

The Company applies Ind AS 36 to determine whether a Right-of-Use asset is impaired and accounts for any identified impairment loss in the Standalone Statement of Profit and Loss as described in the note (q).

Lease liabilities

For lease liabilities at inception, the Company measures the lease liability at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. The lease payments are discounted using the interest rate implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest

considering effective interest rate and reduced for the lease payments made.

The Company recognises the amount of the remeasurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in the Standalone Statement of Profit and Loss.

(n) Property, Plant and Equipment, Capital work in progress and Depreciation

All items of property, plant and equipment, including freehold land, are initially recorded at cost. Subsequent to initial recognition, property, plant and equipment other than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning.

Interest on borrowed money allocated to and utilized for qualifying assets pertaining to the period up to the date of capitalization is added to the cost of the assets.

Directly attributable costs are capitalised to the cost of capital work in progress.

Freehold land is not depreciated.

Any gain or loss arising on derecognition / disposal of an asset is included in profit or loss.

Depreciation on property, plant and equipment has been provided as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect Solar Power Plant, Wind Farms and Hybrid Farms where the life is considered as 25 years taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, manufacturers warranties and maintenance support, etc. However, with effect from 1^st January, 2026 the expected useful life of new technology solar and wind assets has been revised from 25 years to 30 years. This change has been considered as change in estimate as per Ind AS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) and has been accounted for prospectively [Refer note 3(a)(vi)].

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, as appropriate.

The estimated useful lives of property, plant and equipment are as follows:

Category of Asset	Useful Life
Plant and machinery	15 to 30 years
Furniture and fixtures	10 years
Motor vehicle	10 years
Office equipments	10 years
Computers	3 years

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Expenditure related to and incurred during implementation (net of incidental income) of capital projects to get the assets ready for intended use is included under “Capital Work in Progress (including related inventories)”. The same is allocated to the respective items of property plant and equipment on completion of construction / erection of the capital project / property, plant and equipment. Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

(o) Other Intangible Assets and Amortisation

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses (if any). Amortisation is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

The estimated useful lives of other intangible assets are as follows:

Category of Asset	Useful Life
Computer software	3 years
Customer contracts	Balance PPA Tenure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

(p) Intangible assets under development

Expenditure on intangible assets eligible for capitalisation are carried as intangible assets under development where such assets are not yet ready for their intended use.

(q) Impairment of non-financial assets

At each reporting date, non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are compared at the lowest levels for which there are largely independent cash inflows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period. Intangible assets that have an indefinite useful life or intangible assets not ready to use are not subject to amortisation and are tested annually for impairment.

(r) Impairment of financial assets

The Company assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. Expected Credit Losses (ECLs) are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL).

The Company considers a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding

contractual amounts in full before taking into account any credit enhancements held by the Company.

A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

For trade receivables, the Company applied a simplifier approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. Trade receivables of the Company are mainly from high credit worthy Commercial and Industrial (‘C&I’) customers. Delayed payment carries interest as per the terms of agreements with C&I customers.

The Company assesses ECL associated with its assets carried at amortized cost based on Company’s past history of recovery, creditworthiness of the counter party and existing market conditions. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach for recognition of impairment allowance as provided in Ind AS 109 - Financial Instruments, which requires expected lifetime losses to be recognized on initial recognition of the receivables.

(s) Borrowing Cost

Borrowing costs directly attributable to the acquisition or construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognized in Standalone Statement of Profit and Loss in the period in which they are incurred.

The Company suspends capitalization of borrowing costs during extended periods in which it suspends active development of a qualifying asset.

The entity determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. If any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general

borrowings. In case if the entity borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by applying a capitalisation rate to the expenditure on that asset.

(t) Earnings per share

Basic earnings per equity share has been computed by dividing the net profit or loss for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the reporting period.

Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. If potential equity shares converted into equity shares increases the earnings per share, then they are treated as anti- dilutive and anti-dilutive earning per share is computed.

The weighted average number of equity shares is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

(u) Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjustec for such events before authorisation for issue. Nonadjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted, but disclosed.

(v) Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in Schedule III to the Companies Act 2013. 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 .

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents the Company has determined its operating cycle as

twelve months for the purpose of classification of its assets and liabilities as current and non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities. Advance tax paid is classified as non-current assets.

(w) Business Combination

In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Company has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration tesl is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair value of assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interest issued by the Company in exchange of the control of the acquiree. Acquisition related costs are recognized in Standalone Statement of Profit and Loss as incurred except if related to the issue of debt or equity securities.

Purchase consideration paid in excess / shortfall of the fair value of identifiable assets and liabilities including contingent liabilities and contingent assets, is recognized as goodwill / capital reserve respectively.

Business combination involving entities or businesses under common control are accounted for using the pooling of interest method. Under pooling of interest method, the assets and liabilities of the combining entities / business are reflected at their carrying value. The difference if any, between the consideration paid by the acquirer and the amount of share capital of the transferor is transferred to capital reserve.

Deferred tax assets and liabilities and assets or liabilities related to employee benefits arrangements are recognized and measured in accordance with Ind AS 12 “Income Taxes” and Ind AS 19 “Employee Benefits” respectively.

Potential tax effects of temporary differences and carry forwards of an acquiree that exist at the acquisition

date or arise as a result of the acquisition are accounted in accordance with Ind AS 12.

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any. For the purposes of impairment testing, goodwill is tested at the independent cash generating unit.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in Standalone Statement of Profit or Loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

(x) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

For the purpose of the Standalone Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

(y) Earnings before interest, tax, depreciation, impairment and amortization (EBITDA)

The Company presents EBITDA in the Standalone Statement of Profit and Loss; this is not specifically required by Ind AS 1. The term EBITDA is not defined in Ind AS. Ind AS compliant Schedule III allows companies to present line items, sub-line items and sub-totals as an addition or substitution on the face of the financial statements when such presentation is relevant to an understanding of the Company’s financial position or performance to or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Indian Accounting Standards.

Measurement of EBITDA

Accordingly, the Company has elected to present EBITDA as a separate line item on the face of the

Standalone Statement of Profit and Loss. In its measurement, the Company does not include exceptional items, depreciation, impairment and amortisation expenses, finance costs, share of profit/ (loss) from joint ventures and income tax expense.

(z) Prepaid Common Infrastructure Facility Charges

Prepaid common infrastructure facility charges represent upfront payments made to secure the right to use the common infrastructure facilities, where ownership remains with a third party. These payments are recognised as assets at the amount paid on the date the right is obtained and amortised over the period of use.

(aa)Critical accounting judgements and key sources of estimation uncertainty

The preparation of Standalone Financial Statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgments, estimates and assumptions, that effect the reported balances of assets and liabilities, disclosures relating to contingent liabilities/contingent assets as at the date of the Standalone Financial Statements and the reported amounts of income and expenses for the years presented. Actual results may differ from these estimates.

These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized in the period in which the estimate is revised if the revision affect only that period, or in the period of the revision and future periods if the revision affects both current and future period.

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the Standalone Financial Statements pertain to:

• Useful lives of property, plant and equipment and other intangible assets [refer note 3(a) and 4(a)]: The Company reviews the useful

life of property, plant and equipment and intangible assets at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

• Impairment of non-financial assets including ROU asset [refer note 3(a), 3(b), 4(a) and 5(b)]:

The Company estimates the value in use of the cash generating unit (CGU) based on future cash flows after considering current economic conditions and trends, estimated future operating results, growth rate and anticipated future economic and regulatory conditions.

The estimated cash flows are developed using internal forecasts. The cash flows are discounted using a suitable discount rate in order to calculate the present value.

• Impairment of investments [refer note 5]:

The Company reviews its carrying value of investments annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

• Defined benefit plans [refer note 34]: The cost of the defined benefit plans 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.

• Impairment of financial assets [refer note 32.4.1]: The impairment provision for financial assets (other than trade receivables) are based on assumptions of risk of default and expected loss rates. The Company makes judgements about these assumptions for selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

• Trade receivables are stated at their transaction values as reduced by appropriate allowances for estimated irrecoverable amounts which are based on the aging of the receivable balances and historical experiences. Individual trade receivables are written off when management deems them not be collectible.

• Costs to complete for Construction contracts:

The Company’s management estimates the costs to complete for each project for the purpose of revenue recognition and recognition of anticipated losses on projects, if any. In the process of calculating the cost to complete,

management conducts regular and systematic reviews of actual results and future projections with comparison against budget. This process requires monitoring controls including financial and operational controls and identifying major risks facing the Company and developing and implementing initiatives to manage those risks. The Company’s management is confident that the costs to complete the project are fairly estimated.

• Share based payment [refer note 36]:

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant.

This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses Binomial model.

• Evaluation of control / joint control / significant influence: The Company makes assumptions, when assessing whether it exercises control, joint control or significant influence over entities in which it holds less than 100 percent of the voting rights.

These assumptions are made based on the contractual rights with the other shareholders, relevant facts and circumstances which indicate that the Company has power over the potential subsidiary or that joint control exists. Changes to contractual arrangements or facts and circumstances are monitored and are evaluated to determine whether they have a potential impact on the assessment as to whether the Company is exercising control over its investment.

• Recognition of deferred tax asset: The

deferred tax assets in respect of brought forward business losses is recognised based on reasonable certainty of the projected profitability, determined on the basis of approved business plans, to the extent that sufficient taxable income will be available to absorb the brought forward business losses.

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy has been detailed in Note (h) above.

Note 2 Recent pronouncements

The Ministry Of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing Standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its financial Statements.

In August 2025, MCA notified the following amendments to:

• Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to classification of liabilities as current or non-current and non-current liabilities

with covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of current and noncurrent liabilities.

• Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f. April 1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of

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Mar 31, 2024

1.3 Summary of Material Accounting Policies

(a) Basis of preparation and presentation

The financial statements have been prepared on historical cost basis, except for
certain financial instruments that are measured at fair values, as explained in the
accounting policies below. Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services. 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 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

(b) Critical accounting judgments and key sources of estimation uncertainty

The preparation of these financial statements in conformity with the recognition
and measurement principles of Ind AS requires the management of the Company
to make estimates and judgements that affect the reported balances of assets and
liabilities, disclosures relating to contingent assets and liabilities and the reported
amounts of income and expense for the periods presented .

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

The preparation of the financial statements in conformity with the recognition and
measurement principles of Ind AS requires management to make judgements,

estimates and assumptions, that affect the reported
amounts of assets and liabilities, disclosures of
contingent liabilities at the date of the financial
statements and the reported amounts of revenue and
expenses for the years presented. Actual results may
differ from these estimates.

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

In particular, information about significant areas of
estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial statements
pertain to:

(i) Useful lives of property, plant and equipment and
intangible assets:

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

(ii) Impairment of non-financial assets:

The Company estimates the value in use of the cash
generating unit (CGU) based on future cash flows after
considering current economic conditions and trends,
estimated future operating results and growth rate and
anticipated future economic and regulatory conditions.
The estimated cash flows are developed using internal
forecasts. The cash flows are discounted using a suitable
discount rate in order to calculate the present value.

(iii) Impairment of investments:

The Company reviews its carrying value of investments
annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

(iv) Defined benefit plans:

The cost of the defined benefit plans 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 Balance Sheet date.

(v) Costs to complete for Construction contracts:

The Company''s management estimates the costs to
complete for each project for the purpose of revenue
recognition and recognition of anticipated losses on

projects, if any. In the process of calculating the cost to
complete, management conducts regular and systematic
reviews of actual results and future projections with
comparison against budget. This process requires
monitoring controls including financial and operational
controls and identifying major risks facing the Company and
developing and implementing initiatives to manage those
risks. The Company''s management is confident that the
costs to complete the project are fairly estimated.

(vi) Impairment of financial assets:

The impairment provision for financial assets (other than
trade receivables) are based on assumptions of risk of
default and expected loss rates. The Company makes
judgements about these assumptions for selecting the
inputs to the impairment calculation, based on the
Company''s past history, existing market conditions as well as
forward looking estimates at the end of each reporting
period. Trade receivables are stated at their nominal values
as reduced by appropriate allowances for estimated
irrecoverable amounts which are based on the aging of the
receivable balances and historical experiences. Individual
trade receivables are written off when management deems
them not be collectible.

(c )Revenue recognition

Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and revenue can
be reliably measured. Revenue towards satisfaction of a
performance obligation is measured at the amount of
transaction price (net of variable consideration) allocated to
that performance obligation. Revenue is net off trade
discounts, rebates and other similar allowances. Revenue
excludes indirect taxes which are collected on behalf of
Government.

i. Revenue from sale of power:

Revenue from sale of power is recognised when the units of
electricity is delivered at the price agreed with the customer
in the power purchase agreement which coincides with the
transfer of control and the Company has a present right to
receive the payment.

ii. Revenue from construction contracts:

Contract revenues are recognised over a period of time,
based on the stage of completion of the contract activity.
Revenue is measured based on the proportion of contract
costs incurred for satisfying the performance obligation to
the total estimated contract costs, there being a direct
relationship between the input and the productivity. Claims
are accounted for as income when accepted by the customer.

Expected loss, if any, on a contracts is recognised as expense
in the period in which it is foreseen, irrespective of the stage
of completion of the contract.

Contract modifications are accounted for, when additions,

deletions or changes are approved either to the contract
scope or contract price. Accounting for modifications of
contracts involves assessing whether the services added to
an existing contract are distinct and whether the pricing is a
standalone selling price. Services added that are not distinct
are accounted for on a cumulative catch up basis, while
those that are distinct are accounted for prospectively, either
as a separate contract, if the additional services are priced at
the standalone selling price, or as a termination of the
existing contract and creation of a new contract if not priced
at the standalone selling price.

iii. Revenue from sale of services:

Revenue from services rendered over a period of time, such
as operation and maintenance contracts, are recognised on
straight line basis over the period of the performance
obligation.

iv. Interest income:

Interest income is recognised using the effective interest
method.

v. Dividend income:

Dividend income is recognized when the right to receive
payment is established.

(d) Government Subsidy

Government grants in the nature of subsidy related to
customer contracts are recognised as revenue from
operations in the Statement of Profit and Loss, on a prudent
basis, on commissioning of the solar power plant when there
is reasonable assurance that the conditions for the grant of
subsidy will be fulfilled and grant will be realised. When the
grant relates to an asset, the subsidy amount is deducted
from the carrying amount of the asset.

(e ) Share of profit or loss in Limited Liability Partnership
(''LLP''):

Share of profit or loss in LLP accrues when the same is
computed and credited or debited to the Capital/Current/any
other account of the Company in the books of the LLP.
Accordingly, share of profit or loss in LLPs is accounted
when such share of profit or loss is credited or debited to
Partner''s Capital / Current Account as per the terms of the
LLP agreement.

(f) Goods and Service tax input credit:

Goods and Service tax input credit is accounted for in the
books in the period in which the underlying goods and
service received is accounted and when there is reasonable
certainty in availing / utilising the credits.

(g) Employee benefits

Salaries, wages, and other short term benefits, accruing to
employees are recognised at undiscounted amounts in the
period in which the employee renders the related service.

Retirement benefits
Defined contribution plan:

The Company offers its employees defined contribution
plans in the form of provident fund and family pension fund.
Provident fund and family pension funds cover substantially
all regular employees. Contributions are paid during the year
into separate funds under certain fiduciary-type
arrangements. Both the employees and the Company pay
predetermined contributions into provident fund and family
pension fund. The contributions are normally based on a
certain proportion of the employee''s salary. The contributions
made are charged as an expense based on the amount of
contribution required to be made and when services are
rendered by the employees.

Defined benefit plan:

For defined benefit plans in the form of gratuity, the cost of
providing benefits is determined using the Projected Unit
Credit method, with actuarial valuations being carried out at
each balance sheet date. Actuarial gains and losses are
recognized in Other Comprehensive Income in the period in
which they occur. Past service cost is recognised
immediately to the extent that the benefits are already vested
and otherwise is amortised on a straight-line basis over the
average period until the benefits become vested. The
retirement benefit obligation recognised in the Balance Sheet
represents the present value of the defined benefit obligation
as adjusted for unrecognised past service cost, as reduced
by the fair value of scheme assets. Any asset resulting from
this calculation is limited to past service cost, plus the
present value of available refunds and reductions in future
contributions to the schemes.

(h) Share-based payments:

Equity-settled share-based payments to employees of the
Company are measured at the fair value of the equity
instruments at the grant date. Details regarding the
determination of the fair value of equity-settled share-based
transactions are set out in Note 38. The fair value determined
at the grant date of the equity-settled share-based payments
to employees of the Company is expensed on a straight-line
basis over the vesting period, based on the Company''s
estimate of equity instruments that will eventually vest, with a
corresponding increase in equity at the end of year . At the
end of each year, the Company revisits its estimate of the
number of equity instruments expected to vest and
recognizes any impact in profit or loss, such that the
cumulative expense reflects the revised estimate, with a
corresponding adjustment to the equity-settled employee
benefits reserve.

(i) Foreign currencies:

The functional currency of the Company is the Indian rupee (Rs.).

Income and 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
balance sheet date and exchange gains and losses arising on
settlement and restatement are recognised in profit or loss.

Foreign currency denominated non - monetary assets and
liabilities that are measured at historical cost are not
retranslated.

(j) Taxes:

Income tax expense comprises current tax expense and the
net change during the year, in the deferred tax asset or
liability. Current and deferred taxes are recognised in profit or
loss, except when they relate to items that are recognised in
other comprehensive income or in equity, in which case the
related current and deferred tax are also recognised in other
comprehensive income or in equity, respectively.

Current and Deferred Taxes 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.

Tax assets and tax liabilities are offset when there is a legally
enforceable right to set off the recognised amounts.

i. Current income tax:

Provision for current income tax is made for the tax liability
payable on taxable income after considering tax allowances,
deductions and exemptions determined in accordance with
the applicable tax rates and the prevailing tax laws.

ii. Deferred tax:

Deferred income tax assets and liabilities are recognised for
deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their
carrying amount.

Deferred income tax assets are recognised to the extent that
it is reasonable 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.

The carrying amount of deferred income 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 income tax
asset to be utilised.

(k) Exceptional items:

Exceptional items refer to items of income or expense within
the income statement from ordinary activities which are

non-recurring and are of such size, nature or incidence that
their separate disclosure is considered necessary to explain
the performance of the Company and to assist users of
financial statements in making projections of future financial
performance.

(l) Property, plant and equipment and Capital work in
progress:

Property, plant and equipment are stated at cost of
acquisition or construction including any cost attributable in
bringing the asset to its working condition for its intended
use, net of subsidy (if any) less accumulated depreciation.

Interest on borrowed money allocated to and utilised for
qualifying assets pertaining to the period up to the date of
capitalisation is added to the cost of the assets.

Depreciation on property, plant and equipment has been
provided on the Straight line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013 except
in respect Power Generating Plant where the life is
considered as 25 years taking into account the nature of the
asset, the estimated usage of the asset, the operating
conditions of the asset, manufacturers warranties and
maintenance support, etc.

Salary cost and cost of travelling directly attributable to the
construction of property, plant and equipment has been
capitalised to the cost of property, plant and equipment.

Freehold land is not depreciated.

Any gain or loss arising on derecognition / disposal of an
asset is included in profit or loss.

The residual values, useful lives and methods of depreciation
of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, as appropriate.

Expenditure related to and incurred during implementation
(net of incidental income) of capital projects to get the assets
ready for intended use is included under "Capital Work in
Progress (including related inventories)". The same is
allocated to the respective items of property plant and
equipment on completion of construction / erection of the
capital project / property, plant and equipment. Capital work
in progress is stated at cost, net of accumulated impairment
loss, if any.

(m) Intangible assets:

Intangible assets acquired are measured on initial
recognition at cost. Subsequent to initial recognition,
intangible assets are carried at cost less any accumulated
amortisation. Intangible assets of the Company have finite
lives and are amortised over the estimated useful economic
life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.

(n) Impairment of assets

Property, plant and equipment and intangible assets with
finite lives are evaluated for recoverability whenever there is
any indication that their carrying amounts may not be
recoverable. If any such indication exists, the recoverable
amount (i.e. higher of the fair value less cost to sell and the
value-in-use) is determined for the individual asset, unless
the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the cash generating
unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated
to be less than its carrying amount, the carrying amount of
the asset (or CGU) is reduced to its recoverable amount and
an impairment loss is recognised in profit or loss

(o) Financial instruments
Recognition and initial measurement

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 and financial
liabilities are recognized by the Company when it becomes a
party to the contractual provisions of the financial
instrument.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of a financial
instrument are adjusted to fair value, except where the
financial instrument is measured at Fair Value through profit
or loss, in which case the transaction costs are immediately
recognized in profit or loss.

Financial assets

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk of
change in value and having original maturities of three
months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised
cost if these financial assets are held within a business
whose objective is to hold these assets to collect
contractual cash flows and the contractual terms of the
financial assets give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or
loss unless they are measured at amortised cost or at fair
value through other comprehensive income on initial
recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value
through profit or loss are immediately recognised in profit or
loss.

Financial assets at fair value through other comprehensive
income (FVTOCI)

On initial recognition, the LLP can make an irrevocable
election (on an instrument-by-instrument basis) to present
the subsequent changes in fair value in other comprehensive
income pertaining to investments in equity instruments. This
election is not permitted if the equity investment is held for
trading. These elected investments are initially measured at
fair value plus transaction costs. Subsequently, they are
measured at fair value with gains and losses arising from
changes in fair value recognised in other comprehensive
income and accumulated in the ''Reserve for equity
instruments through other comprehensive income''. The
cumulative gain or loss is not to be reclassified to the
statement of profit and loss on disposal of the investments.

Dividends on these investments in equity instruments are
recognised in the statement of profit and loss when the
Company''s right to receive the dividends is established, it is
probable that the economic benefits associated with the
dividend will flow to the entity, the dividend does not
represent a recovery of part of cost of the investment and the
amount of dividend can be measured reliably. Dividends
recognised in the statement of profit and loss are included in
the ''Other income'' line item.

Investment in subsidiaries and joint ventures

The Company accounts for its investments in subsidiaries
and joint ventures at cost.

Financial liabilities and equity instruments
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities designated upon initial recognition as at
fair value through profit or loss.

(Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109
are satisfied.)

Other financial liabilities

Other financial liabilities (including borrowings, trade and
other payables) are subsequent to initial recognition,
measured at amortised cost using the effective interest rate
(EIR) method.

Equity instruments

An equity instrument is a contract that evidences residual
interest in the assets of the Company after deducting all of its
liabilities. Equity instruments recognised by the Company are
recognised at the proceeds received net off direct issue cost.

Derivative financial instruments

The Company enters into derivative contracts to hedge
foreign currency transactions. Such derivative financial
instruments are measured at fair value at the end of each
reporting period. Derivatives are carried as financial assets
when the fair value is positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss immediately

Derecognition of financial instruments

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expires or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognised from
the Company''s Balance Sheet when the obligation specified
in the contract is discharged or cancelled or expires.

Fair value measurement

When the fair values of financial assets or financial liabilities
recorded or disclosed in the financial statements cannot be
measured based on quoted prices in active markets, their fair
value is measured using valuation techniques including the
Discounted Cash Flow (DCF) model. The inputs to these
models are taken from observable markets where possible,
but where this is not feasible, a degree of judgment is
required in establishing fair values. Judgments include
consideration of inputs such as liquidity risk, credit risk and
volatility.

(p) Inventories

Inventories are valued at cost or net realisable value,
whichever is lower, cost being worked out on weighted
average basis. Cost includes all charges for bringing the
goods to their present location and condition.

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

(q) Leases

The Company evaluates each contract or arrangement,
whether it qualifies as lease as defined under Ind AS 116.

The Company as a lessee

The Company assesses, whether the contract is, or contains,
a lease. A contract is, or contains, a lease if the contract

involves:

(a) the use of an identified asset,

(b) the right to obtain substantially all the economic benefits
from use of the identified asset, and

(c) the right to direct the use of the identified asset.

The Company at the inception of the lease contract
recognizes a Right-of-Use (RoU) asset at cost and
corresponding lease liability, except for leases with term of
less than twelve months (short term) and low-value assets.

The cost of the right-of-use assets comprises the amount of
the initial measurement of the lease liability, any lease
payments made at or before the inception date of the lease
plus any initial direct costs, less any lease incentives
received. Subsequently, the right of-use assets is measured
at cost less any accumulated depreciation and accumulated
impairment losses, if any. The right-of-use assets is
depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful
life of right-of-use assets.

The Company applies Ind AS 36 to determine whether a
Right-of-Use asset is impaired and accounts for any identified
impairment loss in the Statement of Profit and Loss as
described in the Note 1.3.(n) above.

For lease liabilities at inception, the Company measures the
lease liability at the present value of the lease payments that
are not paid at that date. The lease payments are discounted
using the interest rate implicit in the lease, if that rate is
readily determined, if that rate is not readily determined, the
lease payments are discounted using the incremental
borrowing rate.

The Company recognizes the amount of the re-measurement
of lease liability as an adjustment to the right-of-use assets.
Where the carrying amount of the right-of-use assets is
reduced to zero and there is a further reduction in the
measurement of the lease liability, the Company recognizes
any remaining amount of the re-measurement in the
Statement of Profit and Loss.

For short-term, low value leases and for variable lease
payments, the Company recognizes the lease payments for
such items as an operating expense on a straight-line basis
over the lease term and are recognised in profit or loss in the
period in which the condition that triggers those payments
occurs.

Lease payments (other than short term, low value leases and
variable lease payments that are dependent on sales) have
been classified as cash used in Financing activities in the
Statement of Cash Flows.

The Company has no assets given on lease to others.