Inox Green Energy Services Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

3.12 Provisions and contingencies

The Company recognizes provisions when a present obligation
(legal or constructive) as a result of a past event exists and it is

probable that an outflow of resources embodying economic
benefits will be required to settle such obligation and the
amount of such obligation can be reliably estimated.

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. If the effect of
time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is
recognised as a finance cost.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot
be measured reliably.

When there is a possible obligation or a present obligation
in respect of which likelihood of outflow of resources
embodying economic benefits is remote, no provision or
disclosure is made.

Contingent liabilities acquired in a business combination
are initially measured at fair value at the acquisition date.
At the end of subsequent period, such contingent liabilities
are measured at the higher of the amounts that would
be recognised in accordance with Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets and the amount
initially recognised less cumulative amortisation recognised
in accordance with Ind AS 18 Revenue, if any.

3.13 Financial instruments

Financial assets and financial liabilities are recognised when
the Company member becomes a party to the contractual
provisions of the instruments. Financial assets and financial
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value
of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial liabilities at
fair value through profit or loss are recognised immediately
in profit or loss.

A] Financial assets

a) Initial recognition and measurement:

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument. On initial recognition,
a financial asset is recognised at fair value, in
case of financial assets which are recognised

at fair value through profit and loss (FVTPL), its
transaction costs are recognised in the statement
of profit and loss. In other cases, the transaction
costs are attributed to the acquisition value of the
financial asset.

b) Effective interest method:

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in profit or loss and is included in the
“Other income” line item.

c) Subsequent measurement:

For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:

i. The Company''s business model for
managing the financial asset and

ii. The contractual cash flow characteristics of
the financial asset.

Based on the above criteria, the Company classifies
its financial assets into the following categories:

i. Financial assets measured at amortized
cost:

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

a) The Company''s business model
objective for managing the financial
asset is to hold financial assets in order
to collect contractual cash flows, and

b) 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.

This category applies to cash and bank
balances, trade receivables, loans, certain

investments and other financial assets of
the Company. Such financial assets are
subsequently measured at amortized cost
using the effective interest method.

The amortized cost of a financial asset is
also adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

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

a) The Company''s business model
objective for managing the financial
asset is achieved both by collecting
contractual cash flows and selling the
financial assets, and

b) 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.

Investments in equity instruments, classified
under financial assets, are initially measured
at fair value. The Company may, on initial
recognition, irrevocably elect to measure the
same either at FVTOCI or FVTPL. The Company
makes such election on an instrument-by¬
instrument basis. Fair value changes on an
equity instrument are recognised as other
income in the Statement of Profit and Loss
unless the Company has elected to measure
such instrument at FVTOCI.

The Company does not have any financial
assets in this category.

iii. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL
unless it is measured at amortized cost or at
FVTOCI as explained above.

This is a residual category applied to all other
investments of the Company. Such financial
assets are subsequently measured at fair value
at each reporting date. Fair value changes are
recognized in the Statement of Profit and Loss.
Dividend income on the investments in equity
instruments are recognised as ‘other income''
in the Statement of Profit and Loss.

d) Derecognition:

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is derecognized (i.e. removed

from the Company''s Balance Sheet) when any of
the following occurs:

i. The contractual rights to cash flows from the
financial asset expires;

ii. The Company transfers its contractual
rights to receive cash flows of the financial
asset and has substantially transferred all
the risks and rewards of ownership of the
financial asset;

iii. The Company retains the contractual
rights to receive cash flows but assumes
a contractual obligation to pay the cash
flows without material delay to one or
more recipients under a ‘pass-through''
arrangement (thereby substantially
transferring all the risks and rewards of
ownership of the financial asset);

iv. The Company neither transfers nor
retains substantially all risk and rewards of
ownership and does not retain control over
the financial asset.

In cases where the Company has neither
transferred nor retained substantially all of the
risks and rewards of the financial asset, but
retains control of the financial asset, the Company
continues to recognize such financial asset to the
extent of its continuing involvement in the financial
asset. In that case, the Company also recognizes
an associated liability.

The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.

On derecognition of a financial asset, the
difference between the asset''s carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that
had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.

e) Impairment of financial assets:

The Company applies expected credit losses
(ECL) model for measurement and recognition of
loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized
cost (other than trade receivables)

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

In case of trade receivables, the Company follows
a simplified approach wherein an amount equal
to lifetime ECL is measured and recognized as
loss allowance.

In case of other assets (listed as ii and iii above),
the Company determines if there has been a
significant increase in credit risk of the financial
asset since initial recognition. If the credit risk of
such assets has not increased significantly, an
amount equal to 12-month ECL is measured and
recognized as loss allowance. However, if credit
risk has increased significantly, an amount equal
to lifetime ECL is measured and recognized as
loss allowance.

Subsequently, if the credit quality of the
financial asset improves such that there is no
longer a significant increase in credit risk since
initial recognition, the Company reverts to
recognizing impairment loss allowance based
on 12-month ECL.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the
company expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.

12-month ECL are a portion of the lifetime ECL
which result from default events that are possible
within 12 months from the reporting date. Lifetime
ECL are the expected credit losses resulting from
all possible default events over the expected life of
a financial asset.

ECL are measured in a manner that they reflect
unbiased and probability weighted amounts
determined by a range of outcomes, taking
into account the time value of money and other
reasonable information available as a result of
past events, current conditions and forecasts of
future economic conditions.

As a practical expedient, the Company uses a
provision matrix to measure lifetime ECL on its portfolio
of trade receivables. The provision matrix is prepared
based on historically observed default rates over the
expected life of trade receivables and is adjusted for
forward-looking estimates. At each reporting date,
the historically observed default rates and changes in
the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
expense/income in the Statement of Profit and Loss
under the head ‘Other expenses''/''Other income''

B] Financial liabilities and equity instruments

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

i. Equity instruments:-

An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity
instruments issued by the entity are recognised at
the proceeds received, net of direct issue costs.

Repurchase of the entity''s own equity instruments
is recognised and deducted directly in equity.
No gain or loss is recognised in profit or loss on
the purchase, sale, issue or cancellation of the
Company''s own equity instruments.

ii. Compound financial instruments:-

Compound financial instruments issued by the
Company comprise of convertible debentures
denominated in INR that can be converted to
equity shares at the option of the holder. The
debentures will be converted into equity shares at
the fair value on the date of conversion.

The fair value of the liability component of a
compound financial instrument is determined
using a market interest rate of a similar liability that
does not have an equity conversion option. This
value is recorded as a liability on an amortised
cost basis until extinguished on conversion or
redemption of the debentures. The remainder
of the proceeds is attributable to equity portion
of the instrument net of derivatives if any. The
equity component is recognised and included
in shareholder''s equity (net of deferred tax)
and is not subsequently re-measured. The
derivative component is recognized at fair value
and subsequently carried at fair value through
profit or loss.

Interest related to the financial liability is recognized
in profit or loss (unless it qualifies for inclusion
in the cost of an asset). In case of conversion at
maturity, the financial liability is reclassified to
equity and no gain or loss is recognized.

iii. Financial Liabilities:-

a) Initial recognition and measurement :

Financial liabilities are recognised when a
Company member becomes a party to the
contractual provisions of the instrument.
Financial liabilities are initially measured at
the fair value.

b) Subsequent measurement:

Financial liabilities are subsequently
measured at amortised cost using the
effective interest rate method. Financial
liabilities carried at fair value through profit
or loss are measured at fair value with all
changes in fair value recognised in the
Statement of Profit and Loss.

The Company has not designated any
financial liability as at FVTPL other than
derivative instrument.

c) Derecognition of financial liabilities:

A financial liability is derecognized 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 between
the carrying amount of the financial liability
derecognized and the consideration
paid is recognized in the Statement of
Profit and Loss.

3.14 Earnings Per Share

Basic earnings per share is computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares
that have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the
net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive
potential equity shares, except where the results would
be anti-dilutive.

3.15 Recent Accounting Pronouncement

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. During the year ended March 31, 2025, MCA has notified
Ind AS 117 - Insurance Contracts and amendments to Ind As
116 - Leases, relating to sale and lease back transactions,
applicable from April 1, 2024.

On May 7, 2025, MCA notifies the amendments to Ind AS
21 - Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing
currency exchangeability and estimating exchange
rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning on
or after April 1, 2025. The group has assessed that there is no
significant impact on its financial statements.

Critical accounting judgements and use of estimates

In application of Company''s accounting policies, which
are described in Note 3, the Directors of the Company are
required to make judgements, estimations and assumptions
about the carrying value of assets and liabilities that are not
readily apparent from other sources. The estimates and
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period of
revision or future periods if the revision affects both current
and future periods.

Following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

a) Useful lives of Property, Plant & Equipment (PPE) &
intangible assets:

The Company has adopted useful lives of PPE as
described in Note 3.8 & 3.9 above. The Company
reviews the estimated useful lives of PPE & intangible
assets at the end of each reporting period.

b) Fair value measurements and valuation processes

The Company measures financial instruments at fair
value in accordance with the accounting policies
mentioned above.

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers

have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting
period and discloses the same.

When the fair values of financials assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques,
including the discounted cash flow model, which
involve various judgements and assumptions. Where
necessary, the Company engages third party qualified
valuers to perform the valuation.

Information about the valuation techniques and inputs
used in determining the fair values of various assets
and liabilities are disclosed in Note 37.

c) Other assumptions and estimation uncertainties,
included in respective notes are as under:

• Recognition of deferred tax assets is based
on estimates of taxable profits in future years.
The Company prepares detailed cash flow and

profitability projections, which are reviewed
by the board of directors of the Company. The
Company''s tax jurisdiction is India. Significant
judgments are involved in estimating budgeted
profits for the purpose of paying advance tax,
determining the provision for income taxes,
including amount expected to be paid / recovered
for uncertain tax positions - see Note 34.

• Measurement of defined benefit obligations and
other long-term employee benefits: key actuarial
assumptions - see Note 38

• Assessment of the status of various legal cases/
claims and other disputes where the Company
does not expect any material outflow of resources
and hence these are reflected as contingent
liabilities. Recognition and measurement of
provisions and contingencies: key assumptions
about the likelihood and magnitude of an outflow
of resources - see Note 42

• Impairment of financial assets - see Note 37

Notes:

(i) During the previous financial year 2023-24 the company has acquired 51% equity shares of Resowi Energy Private Limited, an
Independent O&M Wind Service Provider, on February 07, 2024. Accordingly, Resowi Energy Private Limited has become a subsidiary
of the Company with effect from 7^th February, 2024.

(ii) During the year pursuant to the approval granted by the shareholders of Inox Green Energy Services Limited ("the Company") at their 24^th Extra¬
ordinary General Meeting held on 1^st December 2023, the Company on 29^th November, 2024, has successfully completed the divestment/sale of
entire equity shares of H 10/- each held by the Company (along with shares held by its nominee) in its wholly owned subsidiary namely Inox Clean
Energy Limited (Previously known as Nani Virani Wind Energy Private Limited) to IGREL Renewables Limited, a related party controlled and owned
by significant beneficial owners of the Company, at a face value of H 10/- each.

Consequent upon the said disinvestment/sale, Inox Clean Energy Limited ceases to be a subsidiary of the Company at a considerations
of 9,000 lakhs.

(iii) During the year company has entered into share purchase agreement to sell the entire investment held by the company in the equity
share capital of Inox Neo Energies Private Limited (earlier known as Aliento Wind Energy Private Limited) a wholly owned subsidiary
comprising of 10,000 equity shares of H10/- each aggregating to H 1,00,000 to Inox Clean Energy Limited (Previously known as
Nani Virani Wind Energy Private Limited) a related party controlled and owned by significant beneficial owners of the company.
Consequent upon the said transaction Inox Neo Energies Private Limited (earlier known as Aliento Wind Energy Private Limited) shall
ceases to be a wholly owned subsidiary of the company.

(iv) During the year company has entered into share purchase agreement to sell the entire investment held by the company in the equity
share capital of Flurry Wind Energy Private Limited and Flutter Wind Energy Private Limited a wholly owned subsidiary comprising
of 10,000 equity shares of H10/- each aggregating to H 1,00,000 each, to Inox Neo Energies Private Limited (earlier known as Aliento
Wind Energy Private Limited) a related party controlled and owned by significant beneficial owners of the company.

(e) Allotment of Equity Shares in lieu of other than Cash Considerations

i) During the previous year ended 31^st March 2022, the company has issued 3,29,99,043 number of shares at a price of H80.64/
per share, for a consideration other than cash in lieu of the debt/liability/provisions owed to the allottees on account of receipt
of material / services / others / interest etc. from time to time.

ii) During the previous year ended 31^st March 2024, the company has issued 16,66,666 number of shares at a price of H48/ per
share, for a consideration other than cash in lieu of investment of subsidiary namly I-Fox Windtechnik India Private Limited.

(f) Allotment of Equity Shares

i) During the year, the company has issued 4,16,66,666 number of equity having face value of H 10/ each of the company at
price of H 48/ per equity share(including premium of H 38/ per share) fully paid up for a consideration other than cash in lieu of
compulsory convertible preference shares of the face value of H 10/ each amounting to H 20,000 lakh.

18: Equity share capital (Contd..)

ii) During the year, the company has issued number of 2,89,85,503 equity shares having face value H10/- each of the group at
price of H 138/- per equity share (including premium H128/-per share) fully paid up. The utilisation of offer proceed in relation to
the share issued are duly monitored by the authorised agency.

(g) Issue of Convertible warrants

i) During the year, the company has issued number of 4,48,27,582 convertible warrants and H 145/-per convertible
warrants(Including premium of H 135/ per warrants). The utilisation of offer proceed in relation to the warrants issued are duly
monitored by the authorised agency.

The Convertible warrants carries a right to subscribe 1 equity shares and convertible at any time within a period of 18 months
from the date of allotment, in one or more tranches. Further, during the period the company has approved the allotment of
equity shares on conversion of 27,58,620 warrants into 27,58,620 equity shares at an issue price of H 145/- per share (including
a premium of H 135/- per share).

(c) Rights, preferences and restrictions attached to 0.01% Non-Convertible, Non-Cumulative, Participating, Redeemable
Preference Shares:

The CCPS shall carry a preferential right vis-a-vis equity share of H 10/- each of the Company (“Equity Shares”) with respect to
payment of dividend and repayment in case of a winding up or repayment of capital. The CCPS shall not be redeemable as the same
are compulsorily to be convertible into Equity Shares of the Company. Holder of the CCPS shall have the right to seek conversion of
the CCPS into Equity Shares of the Company within 18 months from the date of allotment (“Tenure”). CCPS holder shall have an option
to convert CCPS into Equity Shares during the Tenure by sending prior notice of its intention of such conversion. The Company shall
convert the unexercised portion, if any, of allotted CCPS into the Equity Shares of the Company on the last day of the Tenure even
if the Proposed Allottee does not exercise the conversion option. The CCPS shall be non-participating in the surplus funds and in
surplus assets and profits, on winding-up which may remain after the entire capital has been repaid. All the 20,00,00,000 (Twenty
Crore) CCPS allotted on variation of the terms of NCPRPS shall be converted into upto 4,16,66,666 (Four Crore Sixteen Lakh Sixty
Six Thousand Six Hundred Sixty Six) fully paid up equity shares of face value of H 10/- each of the Company (“Equity Shares”), at a
price of H 48/- (Rupees Forty Eight only) per Equity Share (including a premium of H 38/- (Rupees Thirty Eight only) for each CCPS
(“Conversion Price”), from time to time, in one or more tranches and this Conversion Price has been determined based on the
Valuation Report. The number of equity shares that each CCPS converts into and the price per equity share upon conversion of each
CCPS shall be appropriately adjusted for splits or sub-divisions, reclassification, consolidation, exchange, or substitution of shares
and for any capital reorganisation including bonus issues by the Company.

Futher during the year the company has successfully converted CCPS of H 20,00,00,000 (Twenty Crore) into 4,16,66,666 (Four Crore
Sixteen Lakh Sixty Six Thousand Six Hundred Sixty Six) fully paid up equity shares of face value of H 10/- each of the Company
(“Equity Shares”), at a price of H 48/- (Rupees Forty Eight only) per Equity Share (including a premium of H 38/- (Rupees Thirty Eight
only) for each CCPS into equity shares of the company.

Notes of Reserves

a) Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the
financial statements of the Company and also considering the requirements of the Companies Act, 2013 and also subject to
levy of dividend distribution tax, if any. Thus, the amounts reported above may not be distributable in entirety.

b) Securities premium

Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of
the Companies Act, 2013.

c) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend or a portion of net profit t
kept separately for future purpose is disclosed as general reserve.

d) Share based payment reserve

The Company offers ESOP, under which options to subscribe for the Company''s share have been granted to certain employees
and senior management of the company. The share based payment reserve is used to recognise the value of equity settled
share based payments provided as part of the ESOP scheme. Refer note 56.

Terms of repayment

*Cash credit H97.34 Lakhs (Previous year H 983.31 Lakhs) taken from Yes bank carries interest @ MCLR Plus 0.60% against corporate
guarantee of Inox Wind Limited. First Pari Passu charge on Current assets & second pari passu charges on Existing and Future movable
fixed assets of the Company and Inox Renewable Solutions Limited (earlier known as Resco Global Wind Services Limited).

# Rupee term loans during the period amounting to H 2,000 Lakhs (Previous year H 2,000 Lakhs) carries interest @ MCLR plus 2.00%
(Previous year MCLR Plus 2.00%) against corporate guarantee of Inox Wind Limited and Security of First Pari Passu charge on Current
assets and Existing and Future current assets of the Company and Inox Renewable Solutions Limited (earlier known as Resco Global Wind
Services Limited).

36. Capital Management

For the purpose of the Company''s capital Management, capital includes issued equity share capital, security premium and all other equity
reserves attributable to the equity holders of the Company.

The Company'' s capital Management objectives are:

• to ensure the Company''s ability to continue as a going concern

• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of
the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity.
The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents,
excluding discontinued operations, if any.

The carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets.
Investment in subsidiaries are classified as equity investment have been accounted as at historic cost. Since these are scope out of
Ind AS 109 for the purpose of measurement, the same have not been disclosed in the above table.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices 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: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data (unobservable inputs).

(ii) Financial risk management

The Company''s corporate finance function provides services to the business, coordinates access to financial market, monitors and
manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by
degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk),
credit risk and liquidity risk.

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market
price. The Company does not have any foreign currency exposure, hence is not subject to foreign currency risks. Further, the
Company does not have any investments other than strategic investments in subsidiaries, so the company is not subject to
other price risks. Market risk comprise of interest rate risk and other price risk.

b) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and
floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating
rate borrowings.

37. Financial Instrument (Contd..)

Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the
end of the year. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest rate risk
internally to key management personnel and represents management''s assessment of the reasonably possible change in
interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company''s profit for the
year ended 31^st March 2025 would decrease/increase by H 9.20 Lakhs net of tax (for the year ended 31^st March 2024 would
decrease/increase by H 15.65 Lakhs net of tax). This is mainly attributable to the Company''s exposure to interest rates on its
variable rate borrowings.

c) Other price risks

The Company''s non listed equity securities as susceptible to market price risk arising from uncertainties about future values of
the investment securities. Management monitors the investment closely to mitigate its impact on profit and cash flows.

The Company is mainly exposed to the price risk due to its investment in mutual funds and. The price risk arises due to
uncertainties about the future market values of these investments. The Company has laid policies and guidelines which it
adheres to in order to minimise price risk arising from these investments.

d) Credit risk management

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables.

Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures
and control relating to customer credit risk management. The Company is providing O&M services and is having long term
contracts with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more
than 5% of the total balance of Trade Receivable for the year ended 31^st March, 2025 is H 5,555.16 lakhs (for the year ended
31^st March 2024 is H 4,776.38 Lakhs from 5 major customers) are due from 3 major customers who are reputed parties. All trade
receivables are reviewed and assessed for default at each reporting period.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables from PSU-
Non disputed and others and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period
is as follows and during the year the Company has changed the provision matrix considering the long term outstanding and
credit risk for PSU-non disputed and others.

Loans and Other Receivables

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the loans
given by the Company to the external parties. ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.

In respect of loan and investment given to wholly-owned subsidiaries (hereafter referred to as SPVs), through a request for
selection (Rfs) process under the Solar Energy Corporation of India (SECI) to set up wind farm projects, In annual general
meeting held on September 29, 2023 & September 29, 2023 of the Company and Inox Wind Limited (Holding Company)
respectively approves that if the Company is unable to recover the funds provided as Inter-Corporate deposits and Bank
Guarantee from the SPVs, Inox Wind Limited will bear the costs.

The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If
the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as
loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized
as loss allowance.

12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting
date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of
outcomes, taking into account the time value of money and other reasonable information available as a result of past events,
current conditions and forecasts of future economic conditions.

37. Financial Instrument (Contd..)

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the Statement of
Profit and Loss under the head Other Income/Other expenses respectively.

Other financial assets

Credit risk arising from other balances with banks is limited because the counterparties are banks.

e) Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company and its
holding company, which has established an appropriate liquidity risk management framework for the management of the
Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast
and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on
the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To
the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the
reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

38. Employee benefits:

(a) Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of H 66.25 Lakhs (31^st March 2024 : H 65.91 Lakhs ) is recognized as an expense and included in
Contribution to provident and other funds” in Statement of Profit and Loss.

38. Employee benefits: (Contd..)

(b) Defined Benefit Plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity
Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The level of benefits
provided depends on the employee''s length of service and salary at retirement age. The Company''s defined benefit plan is unfunded.

There are no other post retirement benefits provided by the Company.

The actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^st March 2025 by M/s Charan
Gupta Consultants Pvt Ltd, Fellow of the Institute of the Actuaries of India (for 31^st March 2024 by M/s Charan Gupta Consultants Pvt
Ltd, Fellow of the Institute of the Actuaries of India). The present value of the defined benefit obligation, the related current service
cost and past service cost, were measured using the projected unit credit method.

39. Related Party Disclosures: (Contd)

C) Guarantees/Securities

Inox Wind Limited has issued guarantee and Inox Renewable Solutions Limited (Earlier know as Resco Global Wind Service Limited)
provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March 2025 is
H 97.34 Lakh (Previous Year H 983.31 Lakh).

Inox Wind Limited ("IWL") issued guarantee and Inox Renewable Solutions Limited (Earlier know as Resco Global Wind Service
Limited) provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March
2025 is H 2,000 Lakh (Previous Year H 2,000 Lakh).

Gujarat Fluorochemicals Limited ("GFCL")(earlier known as Inox Fluorochemicals Limited), has issued guarantee and provided
security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March 2025 is H Nil
(Previous Year H 4,550 Lakhs).

The Company has given security of H Nil (Previous year is H. 19,215.79 Lakhs ) to Bank/financial institution against loan taken by Inox
Clean Energy Limited(Earlier Know as Nani Virani Wind Energy Private Limited)

The Company has given Corporate gurantee in respect of borrowing taken by Inox Renewable Solutions Limited (Earlier know
as Resco Global Wind Service Limited). The outstanding balances of such borrowings as at 31^st March 2025 is H 10,000 Lakh
(Previous Year H Nil).

The Company has issued security of fixed deposit in respect of overdraft limit taken by Inox Renewable Solutions Limited (Earlier
know as Resco Global Wind Service Limited). The outstanding balances of such overdraft as at 31^st March 2025 is H 3,667.18 Lakh
(Previous Year H Nil).

(a) Sales, purchases and service transactions with related parties are made at arm''s length price.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) No expense has been recognised for the year ended 31^st March 2025 and 31^st March 2024 for bad or doubtful trade receivables
in respect of amounts owed by related parties.

(d) There have been no other guarantees/security received or provided for any related party receivables or payables.

(e) Compensation of Key management personnel

Footnote i: Details of claims against the Company not acknowledged as debt

a) Claims against the company not acknowledged as debts: claims made by customers H H 2,398.53 lakhs (Previous year
H 13,915.59 lakhs).

b) In respect of VAT/GST matters H 2,160.71 lakhs (Previous year H 491.31 Lakhs)

The Company had received assessment orders for the financial years ended 31^st March 2017 for demand of H185.38 lakhs, in respect
of Andhra Pradesh on account of VAT and CST demand on the issue of mismatch in ITC and non submission of statutory forms.

The Company has also received tax demand from kerela GST Department for H 246.85 Lakhs. (Previous year H 246.85 Lakhs).

The Company has received show couse notice of H 1,647.63 Lakhs (Previous year H Nil Lakhs) from GST Vadodara on account of input
tax credit utilization and reply of same has been filed .

The Company has received show couse notice of H 59.08 Lakh (Previous year H 59.08) from GST jaipur on account of input tax
credit utilization.

The Company has received show couse notice of H 21.77 Lakh (Previous year H Nil) from GST jaipur on account of input tax
credit utilization.

c) In respect of labour cess under Building and Other Construction Workers Act, 1996 - Nil (Previous year H 239.99 lakhs).

In respect of above matters, no additional provision is considered necessary as the Company expects favourable outcome. Further,
it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.

Due to unascertainable outcome for pending litigation matters with Court/Appellate Authorities, the management expects no
material adjustments on the standalone financial statements.

d) In respect of Income Tax matters H Nil (Previous year H 9.19 lakhs ) in respect to under reporting of Income of A.Y. 2016-17.

Footnote ii:Security Outstanding

The Company has given security of H Nil (Previous year is H 19,215.79 Lakhs ) to Bank/financial institution against loan taken by Inox Clean
Energy Limited(Earlier Known as Nani Virani Wind Energy Private Limited)

43: Capital and other Commitments
Other Commitments

Bank guarantees issued by the Company to its customers/Government bodies for H 2,555.63 lakhs (as at 31^st March 2024 : H 7,281.20 lakhs).

45: Segment Information

The Company has presented segment information in the consolidated financial statements which are presented in the same financial
report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments'', no disclosures related to segments are presented in this
standalone financial statements.

There is two customers contributed more than 10% of the total Company''s revenue amounting to H 7,076.45 (Previous year: one customers
contributed more than 10% of the total Company''s revenue amounting to H 3,047.13).

47. Discontinued Operations / Asset held for sale

The Company has decided to sale its subsidiary company viz. Inox Clean Energy Limited (earlier known as Nani Virani Wind Energy Private
Limited) vide its shareholders approval in Extra ordinary General Meeting resolution to IGREL Renewable Limited.

During the year ended 31^st March 2025, the company has received 6,39,00,000 number of shares at a price of H 10/ per share, against the
conversion of principal amount of CCD and 47,10,000 number of shares at a price of H 10/ per share, for a consideration other than cash in
lieu of the unpaid interest liability owed by Inox Clean Energy Limited (earlier known as Nani Virani Wind Energy Private Limited).

The Company on 29^th November, 2024, has successfully completed the divestment/sale of entire equity shares of H 10/- each held by the
Company (along with shares held by its nominee) in its wholly owned subsidiary namely Inox Clean Energy Limited (Previously known as
Nani Virani Wind Energy Private Limited) to IGREL Renewables Limited at gross consideration of H 29,000 Lakhs. Consequent upon the
said disinvestment/sale, Inox Clean Energy Limited ceases to be a subsidiary of the Company at a considerations of 9,000 lakhs.

48. The Company has policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a straight¬
line basis. O&M agreement of 30 WTGs (Previous year 126 WTGs) has been cancelled/modified with different customers. The company''s
management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes
& interest thereon, if any.

49. Cost of material consumed has been computed by adding purchase to the opening stock and deducting closing stock.

50. Operation & maintenance services against certain contract does not require any material adjustment on account of machine
availability, if any.

51. The Company incorporated 6 wholly-owned subsidiaries (hereafter referred to as SPVs), through a request for selection (Rfs)
process under the Solar Energy Corporation of India (SECI) to set up wind farm projects. The company invested funds in the SPVs
through Inter-Corporate deposits and also provided bank guarantees of H 5,578 Lakh. The management believes that once the projects
are commissioned and subject to pending regulatory matters and operational performance improvement, the company will be able to
recover the funds from the SPVs and release the bank guarantees. However, as at June 30, 2024, the SPVs'' project completion date had
expired and applications for extensions has been rejected on 02.09.2024 and Bank Guarantee has been invoked and IGESL further filed
the appeal before appellate authority (CERC) and same is pending with regulators. In annual general meeting held on September 29, 2023
& September 29, 2023 of the Company and subsidiary company respectively approves that if the group is unable to recover the funds
provided as Inter-Corporate deposits and Bank Guarantee from the SPVs, Inox Wind Limited will bear the costs. Further during the year
investment in shareholding of 3 SPVs has been sold by the company.

52. Due to unascertainable outcomes for pending litigation matters with Court/Appellate Authorities, the Company''s management
expects no material adjustments on the Standalone Financial Statements.

53. The Company has the policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a
straight-line basis. Certain O&M services are to be billed by amounting to H12,412.20 Lakhs (Previous year 12,379.38 lakhs) for which
services have been rendered. On the basis of the contractual tenability, and progress of negotiations/discussions/arbitration/litigations,
the company''s management expects no material adjustments in the standalone financial statements on account of any contractual
obligation and taxes & interest thereon, if any.

53a: The Company had certain disagreements with one of its customer, its associates/affiliates for certain pending projects due to
various matters and due to covid -19 pandemic etc. After various discussions with the customer, the company has taken back certain
un-commissioned Wind Turbine Generators (WTGs) and entered into settlement dated 6th May 2024 to settle all outstanding recoverable
balances and other related matters.

(a) During the financial year ended March 31, 2023 the company has recognised the deferred tax @ 34.944% instead of prevailing rate of
29.120% (companies having turnover less than 400 Crore in previous financial year). The Impact of the changes has been recognised
retrospectively.

55: Employees'' stock option plan

The company has ESOP Schemes namely " Inox Green Employee Stock Option Scheme 2024 " ("ESOS 2024/Scheme").

The shareholders of the company approved through Postal Ballot concluded " Inox Green Employee Stock Option Scheme 2024 " ("ESOS
2024/Scheme") at the Extraordinary General Meeting held on on May 05, 2024 to Emplyee stock option plan of the company to specified
categories of employees of the company. Each option granted and vested under ESOS 2024 shall entitle the holder to acquire one equity
share of face value of H 10 each of the company

The Nomination and Remuneration committee ("Committee") of the Company formulated and approved " Inox Green Employee Stock
Option Scheme 2024 " ("ESOS 2024/Scheme") at its meeting held on March 29, 2024 which is also approved by the board of director
of the company.

The fair value of the share options is estimated at the grant date using the option pricing model (for example Black- Scholes or Binomial
Model), taking into account the terms and conditions upon which the share options were granted. However, the above performance
condition is only considered in determining the number of instruments that will ultimately vest.

(iii) The Company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the
Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2025 and March 31, 2024.

(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2025 and
March 31, 2024.

(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of
Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder during the year ended March 31, 2025 and March 31, 2024.

(vi) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government
authorities during the year ended March 31, 2025 and March 31, 2024.

(vii) The Board of Directors of the Company at its meeting held on November 13, 2024 has, subject to necessary approvals, approved a
Scheme of Arrangement amongst Inox Green Energy Services Limited (‘Demerged Company'') and Inox Renewable Solutions Limited
(earlier known as Resco Global Wind Services Limited) (‘Resulting Company'' or ‘Company'') and their respective shareholders and
creditors under Section 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (‘Scheme''). The Scheme,
inter alia, provides for demerger of the Demerged Undertaking comprising the Power Evacuation Business (as defined in the Scheme)

57: Other statutory information''s: (Contd..)

of In

---

Mar 31, 2024

(a) Property, Plant & Equipment pledged as security

For details of PPE pledged are given in Note 20(a).

(a) Additionally PPE has been pledged for loan taken by Resco Global Wind Service Private Limited (as fellow subsidiaries) loan outstanding as on 31^st March 2024 H Nil (Previous year H 285,00 Lakhs).

(b) The title deeds of all the immovable properties held by the company (other than properties where the company executed in favour of the lessee) are held in the name of the company.

(c) The Company has not revalued its PPE (including ROU) as at the balance sheet date.

(i) Previous year the company had acquired 51% equity shares of I-Fox Windtechnik India Private Limited, an Independent O&M Wind Service Provider, on February 24, 2023. Accordingly, I-Fox Windtechnik India Private Limited has become a subsidiary of the Company with effect from 24^th February, 2023.

(ii) During the year the company has acquired 51% equity shares of Resowi Energy Private Limited, an Independent O&M Wind Service Provider, on February 07, 2024. Accordingly, Resowi Energy Private Limited has become a subsidiary of the Company with effect from 7^th February, 2024.

(iii) Investment in Equity shares and CCD in Nani Virani Wind Energy Private Limited (Subsidiary company) has been pledged as security to Power Finance Corporation Limited against loan taken by the subsidiary company (Nani Virani Wind Energy Private Limited).

(iv) Value of investment for H Nil (as at 31^st March 2023 H 6,623.82 Lakhs) includes value of deemed equity as per Ind AS 109 is H Nil (as at 31^st March 2023 H 3232.89 Lakhs).

The Company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed long term operation & maintenance contracts with the customers. Revenue in respect of such contracts will get recognised in future years as per the accounting policy of the Company. Based on these contracts , the Company has reasonable certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realize such assets in the near future. Accordingly, the Company has created deferred tax assets on its carried forward unabsorbed depreciation and business losses.

The Company has only one class of equity shares having par value of H 10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

(e) Allotment of Equity Shares in lieu of other than Cash Consideration

i) During the previous year ended 31^st March 2022, the company has issued 3,29,99,043 number of shares at a price of H 80.64/ per share, for a consideration other than cash in lieu of the debt/liability/provisions owed to the allottees on account of receipt of material / services / others / interest etc. from time to time.

ii) During the year ended 31^st March 2024, the company has issued 16,66,666 number of shares at a price of H 48/ per share, for a consideration other than cash in lieu of investment of subsidiary namly I-Fox Windtechnik India Private Limited.

The CCPS shall carry a preferential right vis-a-vis equity share of H 10/- each of the Company (“Equity Shares”) with respect to payment of dividend and repayment in case of a winding up or repayment of capital. The CCPS shall not be redeemable as the same are compulsorily to be convertible into Equity Shares of the Company. Holder of the CCPS shall have the right to seek conversion of the CCPS into Equity Shares of the Company within 18 months from the date of allotment (“Tenure”). CCPS holder shall have an option to convert CCPS into Equity Shares during the Tenure by sending prior notice of its intention of such conversion. The Company shall convert the unexercised portion, if any, of allotted CCPS into the Equity Shares of the Company on the last day of the Tenure even if the Proposed Allottee does not exercise the conversion option. The CCPS shall be non-participating in the surplus funds and in surplus assets and profits, on winding-up which may remain after the entire capital has been repaid. All the 20,00,00,000 (Twenty Crore) CCPS allotted on variation of the terms of NCPRPS shall be converted into upto 4,16,66,666 (Four Crore Sixteen Lakh Sixty Six Thousand Six Hundred Sixty Six) fully paid up equity shares of face value of H 10/- each of the Company (“Equity Shares”), at a price of H 48/- (Rupees Forty Eight only) per Equity Share (including a premium of H 38/- (Rupees Thirty Eight only) for each CCPS (“Conversion Price”), from time to time, in one or more tranches and this Conversion Price has been determined based on the Valuation Report. The number of equity shares that each CCPS converts into and the price per equity share upon conversion of each CCPS shall be appropriately adjusted for splits or sub-divisions, reclassification, consolidation, exchange, or substitution of shares and for any capital reorganisation including bonus issues by the Company.

a) Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013 and also subject to levy of dividend distribution tax, if any. Thus, the amounts reported above may not be distributable in entirety.

b) Securities Premium

Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013.

c) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend or a portion of net profit kept separately for future purpose is disclosed as general reserve.

d) Debentures (unsecured):-

750 non convertible redeemable debentures of H 10 Lakhs each fully paid up, are issued at par, and carry interest @ 9.60% p.a. payable annually. Redemption of debenture on maturity i.e. after 24 Months from Deemed date of allotment i.e. 20 September 2022 and secured by an unconditional corporate guarantee from "Gujarat Fluorochemicals Ltd” upto H 4550 Lakhs.

*Cash credit H983.31 Lakhs taken from Yes bank carries interest @ MCLR Plus 1.5% against corporate guarantee of Inox Wind Limited and Inox Wind Energy Limited Limited. First Pari Passu charge on Current assets & second pari passu charges on Existing & Future movable fixed assets of the Company and Resco Global Wind Services Limited.

#Rupee term loans during the period amounting to H 2,000 Lakhs (Previous year H 2,400 Lakhs) carries interest @ MCLR plus 2.00% (Previous year MCLR Plus 2.00%) against corporate guarantee of Inox Wind Energy Limited and Inox Wind Limited and Security of First Pari Passu charge on Current assets & Existing & Future current assets of the Company and Resco Global Wind Services Limited.

#Inter-corporate deposit from holding and subsidiary company are unsecured, repayable on demand and carries interest @ 12%pa.

(b) Rights, preferences and restrictions attached to 0.01% Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares:

The Company has only one class of preference shares having par value of H 10 per share. These preference shares are bearing coupon rate @0.01% and are Non-Convertible, Non-Cumulative, Participating, Redeemable Preference Shares (NCPRPS), fully paid-up, at par. These preference shares shall be redeemed at any time within a period of 5 years from the date of allotment and subscriber to these NCPRPS also has right to demand the redemption at any time within a period of 5 years from the date of allotment. These NCPRPS shall rank for dividend in priority to the Equity Shares of the Company and the holders of NCPRPS will be entitled to receive a participatory dividend in a financial year in which the Company pays dividend to its equity shareholders (Participatory dividend). Such participatory dividend will be payable at the same rate as the dividend paid on the equity shares. NCPRPS shall, in case of winding up, be entitled to rank, as regards repayment of capital and dividend (if declared by the Company), up to the commencement of the winding up, in priority to the equity Shares and shall also be entitled to participation in profits or assets or surplus funds, on the event of winding-up which may remain after the entire capital has been repaid. Holders of NCPRPS shall be paid dividend on a noncumulative basis. NCPRPS shall not be convertible into Equity Shares, shall not carry any voting rights, shall be redeemable at par at any time within a period not exceeding 5 (five) years from the date of allotment as per the provisions of the Companies Act, 2013.

The tax rate used for the year ended 31^st March 2024 and year ended 31^st March 2023, in reconciliations above is the corporate tax rate of 29.12% payable by corporate entities in India on taxable profits under the Indian tax laws.

Provision for tax in the standalone financial statement for the year ended 31^st March 2024 and ear ended 31^st March 2023 are only provisional in the respective years and subject to change at the time of filing of Income Tax Return based on actual addition/deduction as per provisions of Income Tax Act 1961.

36 : Capital Management

For the purpose of the Company''s capital Management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.

The Company'' s capital Management objectives are:

• to ensure the Company''s ability to continue as a going concern

• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.

The carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets. Investment in subsidiaries are classified as equity investment have been accounted as at historic cost. Since these are scope out of Ind AS 109 for the purpose of measurement, the same have not been disclosed in the above table.

(ii) Financial risk management

The Company''s corporate finance function provides services to the business, coordinates access to financial market, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. The Company does not have any foreign currency exposure, hence is not subject to foreign currency risks. Further, the Company does not have any investments other than strategic investments in subsidiaries, so the company is not subject to other price risks. Market risk comprise of interest rate risk and other price risk.

b) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the end of the year. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended 31^st March 2024 would decrease/increase by H 15.65 Lakhs net of tax (for the year ended 31^st March 2023 would decrease/increase by H 51.25 Lakhs net of tax). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

c) Other price risks

The Company''s non listed equity securities as susceptible to market price risk arising from uncertainties about future values of the investment securities. Management monitors the investment closely to mitigate its impact on profit and cash flows.

d) Credit risk management

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables. The provision matrix at the end of the reporting period is as follows and during the year the Company has changed the provision matrix considering the long term outstanding and credit risk.

Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. The Company is providing O&M services and is having long term contracts with such customers. Accordingly, risk of recovery of such amounts is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable for the year ended 31^st March, 2024 is H 4,776.38 lakhs (for the year ended 31^st March 2023 is H 4,374.64 Lakhs from 6 major customers) are due from 5 major customers who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.

Loans and Other Receivables

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the loans given by the Company to the external parties. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.

The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the Statement of Profit and Loss under the head Other Income/Other expenses respectively.

Other financial assets

Credit risk arising from other balances with banks is limited because the counterparties are banks.

e) Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company and its holding company, which has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

38 : Employee benefits:

(a) Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of H 65.91 Lakhs (31^st March 2023 : H 78.87 Lakhs ) is recognized as an expense and included in “Contribution to provident and other funds” in Statement of Profit and Loss.

(b) Defined Benefit Plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The level of benefits provided depends on the employee''s length of service and salary at retirement age. The Company''s defined benefit plan is unfunded.

There are no other post retirement benefits provided by the Company.

The actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^st March 2024 by M/s Charan Gupta Consultants Pvt Ltd, Fellow of the Institute of the Actuaries of India (for 31^st March 2023 by M/s Charan Gupta Consultants Pvt Ltd, Fellow of the Institute of the Actuaries of India). The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk. a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

Sensitivity analysis

Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The average duration of the defined benefit plan obligation at the end of period ended 31^st March 2024 reporting period is 14.04 years (31^st March 2023 : 14.14 years).

(c) Other long term employment benefits:

Annual leave & Short term leave

The liability towards compensated absences (annual and short term leave) for the period ended 31^st March 2024 based on actuarial valuation carried out by using projected accrued benefit method resulted in decrease in liability by H 5.04 lakhs (31^st March 2023: increase in liability by H 2.89 lakhs), which is included in the employee benefits in the Statement of Profit and Loss.

C) Guarantees/Securities

Inox Wind Energy Limited ("IWEL") and Inox Wind Limited has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March 2024 is H 983.31 Lakh (Previous Year H Nil).

Inox Wind Limited ("IWL") has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March 2024 is H 2,000 Lakh (Previous Year H Nil).

Gujarat Fluorochemicals Limited ("GFCL")(earlier known as Inox Fluorochemicals Limited), the fellow subsidiaries company, has issued guarantee and provided security in respect of borrowings by the Company. The outstanding balances of such borrowings as at 31^st March 2024 is H 4,550 Lakhs (Previous Year H 10,459 Lakhs). Further GFCL has issued performance Bank Guarantee as at 31.03.2024 is H Nil Lakhs (Previous Year H 3,601 Lakhs)

The Company has issued Performance Bank Guarantee to 6 (Previous year 6) subsidiaries of H 5,578.20 Lakhs (Previous year H 5,578.20 Lakhs).

The Company has issued Corporate Guarantee and provided security as at 31^st March 2024 is H Nil (Previous Year H 2,500.00 Lakhs), against term loan taken from financial Institution taken by Resco Global Wind Service Private Limited (fellow subsidiaries Company).

The Company has given security of H Nil (Previous Year is H 32,500 Lakhs) to Bank/financial institution against loan taken by Resco Global Wind Services Private Limited.

The Company has given security of H 19,215.79 Lakhs (Previous year is H 19,898 Lakhs ) to Bank/financial institution against loan taken by Nani Virani Wind Energy Private Limited.

Notes:

(a) Sales, purchases and service transactions with related parties are made at arm''s length price.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) No expense has been recognised for the year ended 31^st March 2024 and 31^st March 2023 for bad or doubtful trade receivables in respect of amounts owed by related parties.

(d) There have been no other guarantees/security received or provided for any related party receivables or payables.

(e) Compensation of Key management personnel

40 : Balance Confirmation

The Company has a system of obtaining periodic confirmation of balances from banks, trade receivables/payables, advance to vendor and other parties. The balance confirmation letters as referred in the Standard on Auditing (SA) 505 (Revised) ‘External Confirmations'', were sent to banks and parties and certain parties'' balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

42 : Contingent liabilities to the extend not provided for;		(H in Lakh)
Particulars	2023-24	2022-23
Claims against the Company not acknowledged as debt [Refer footnote (i)]	14,656.08	15,881.63
Guarantees Outstanding [Refer footnote (ii)]	7,281.20	10,562.60
Security provided on the behalf of third party [Refer footnote (iii)]	19,215.79	52,398.00
Total	41,153.07	78,842.23

Footnote i: Details of claims against the Company not acknowledged as debt

a) Claims against the company not acknowledged as debts: claims made by customers H 13,915.59 lakhs (Previous year H 12,102.07 lakhs).

b) Claims made by vendors in National Company Law Tribunal (NCLT) for H Nil (Previous year H 1,088.11).

c) In respect of VAT/GST matters H 491.31 lakhs (Previous year H 2,466.26 Lakhs)

The Company had received assessment orders for the financial years ended 31^st March 2017 for demand of H 185.38 lakhs, in respect of Andhra Pradesh on account of VAT and CST demand on the issue of mismatch in ITC and non submission of statutory forms.

The Company has filed appeals before the first appellate authority in the matter of CST and VAT demands. The company has received entry tax demand order from Rajasthan VAT department for H Nil (Previous year H 697.31 lakhs).

The Company has also received tax demand from kerela GST Department for H 246.85 Lakhs. (Previous year H 251.13 Lakhs).

The Company has received show couse notice of H Nil (Previous year H 1,332.43 Lakhs) from GST Vadodara on account of input tax credit utilization and reply of same has been filed.

The Company has received show couse notice of H 59.08 Lakh (Previous year H Nil) from GST jaipur on account of input tax credit utilization.

d) In respect of labour cess under Building and Other Construction Workers Act, 1996 - H 239.99 lakhs (Previous year H 216.00 lakhs).

In respect of above matters, no additional provision is considered necessary as the Company expects favourable outcome. Further, it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.

Due to unascertainable outcome for pending litigation matters with Court/Appellate Authorities, the management expects no material adjustments on the standalone financial statements.

e) In respect of Income Tax matters H 9.19 (Previous year H 9.19 lakhs) in respect to under reporting of Income of A.Y. 2016-17.

Footnote ii: Guarantees Outstanding

a) Bank Guarantee issued by the Company to Central Transmission Utility of India Limited / Power System Operation Corporation Ltd H 1,600.00 Lakhs (Previous Year: H 1,910.00 lakhs).

b) Bank Guarantee issued by the Company to customer for H 103 Lakhs (Previous year H 574.40 Lakhs).

c) Company has issued Performance Bank Guarantee to Solar Energy Corporation of India is H 5,578.20 Lakhs (Previous year H 5,578.20 Lakh).

d) The Company has issued Corporate Guarantee and provided security as at 31^st March 2024 is H Nil (Previous Year H 2,500.00 Lakhs), against term loan taken from financial Institution taken by Resco Global Wind Service Private Limited (fellow subsidiaries Company).

Footnote iii:Security Outstanding

The Company has given security of H Nil (Previous Year is H 32,500 Lakhs) to Bank/financial institution against loan taken by Resco Global Wind Services Private Limited.

The Company has given security of H 19,215.79 Lakhs (Previous year is H 19,898 Lakhs ) to Bank/financial institution against loan taken by Nani Virani Wind Energy Private Limited.

43 : Other Commitments Capital Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is Nil (Previous year is Nil).

44 :Leases

The Company has adopted Ind AS 116 "Leases" effective from 01^st April 2019 and considered all material leases contracts existing on 01^st April 2019. The Company neither have any existing material lease contract as on 01^st April 2019 nor executed during the year. The adoption of the standard dose not have any impact on the financial statement of the company. Following are the details of lease contracts which are short term in nature:

45 : Segment Information

The Company has presented segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments'', no disclosures related to segments are presented in this standalone financial statements.

There is no any customers contributed more than 10% of the total Company''s revenue amounting to H Nil (Previous year: Two customers amounting to H 7,940.27 lakhs).

46 : Revenue from contracts with customers as per Ind AS 115 (A) Disaggregated revenue information

In the following table, revenue from contracts with customers is disaggregated by primary major products and service lines Since the Company has only one reportable business segment, no reconciliation of the disaggregated revenue is required:

(B) Contract balances

All the Trade Receivables and Contract Liabilities have been separately presented in notes to accounts.

47 : Discontinued Operations / Asset held for sale

The company has decided to sale its Subsidiary company viz Nani Virani Wind Energy Private Limited vide its shareholders approval in Extra ordinary General Meeting resolution to IGREL Renewables Limited at gross consideration of H 29,000 Lakhs. The company is also transferring its related borrowing amounting to H 19,142 Lakhs. During the quarter the company has received H 4,900 Lakhs as part of the consideration.

48 : The Company has policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a straightline basis. O&M agreement of 126 WTGs (Previous year Nil WTGs) has been cancelled/modified with different customers and also services amounting to H 7,067 (31^st March 2023 H Nil) are yet to be billed for which services have been rendered. The company''s management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes & interest thereon, if any.

49 : Cost of material consumed has been computed by adding purchase to the opening stock and deducting closing stock.

50 : Commissioning of WTGs and operation & maintenance services against certain contract does not require any material adjustment on account of delays/machine availability, if any.

51 : The Company incorporated 6 wholly-owned subsidiaries (hereafter referred to as SPVs), through a request for selection (Rfs) process under the Solar Energy Corporation of India (SECI) to set up wind farm projects. The company invested funds in the SPVs through InterCorporate deposits for project execution, amounting to H 1,003.57 Lakh, and also provided bank guarantees of H 5,578.20 Lakh. The management believes that once the projects are commissioned and subject to pending regulatory matters and operational performance improvement, the company will be able to recover the funds from the SPVs and release the bank guarantees. However, as at March 31, 2024, the SPVs'' project completion date had expired and applications for extensions are pending with regulators. In annual general meeting held on September 29, 2023 & September 29, 2023 of the Company and holding company respectively approves that if the group is unable to recover the funds provided as Inter-Corporate deposits and Bank Guarantee from the SPVs, the holding company will bear the costs.

52 : During the year, Inox Wind Limited (the holding company) as decided vide Board of Directors resolution dated February 10, 2023 and as approved by shareholders in annual general meeting held on 29^th September, 2023 being related party transactions, has bear the losses of investment in subsidiary amounting to H 2,591.40 Lakh.

53 : During the previous year, Inox Wind Limited (the holding company) has vide Board of Directors resolution dated February 10, 2023 subject to members approval being related party transactions, decided to bear the losses of unrecovered ICD amounting to H 1,215.82 Lakh and reimbursed ‘bank guarantee invoked by SECI''/liquidated damages amounting to H 6,816.00 Lakhs. Further, During the year, the holding company also decided to bear the losses amounting to H 1,850 Lakh on account of unrecovered Investment made by IGESL in its associate i.e. Wind Five Renergy Limited on behalf of the holding company.

54 : Due to unascertainable outcomes for pending litigation matters with Court/Appellate Authorities, the Company''s management expects no material adjustments on the Standalone Financial Statements.

55 : The Company has the policy to recognise revenue from operations & maintenance (O&M) over the period of the contract on a straight-line basis. Certain O&M services are to be billed by amounting to H 12,379.38 Lakh for which services have been rendered. On the basis of the contractual tenability, and progress of negotiations/discussions/arbitration/litigations, the company''s management expects no material adjustments in the standalone financial statements on account of any contractual obligation and taxes & interest thereon, if any.

(a) During the financial year ended March 31, 2023 the company has recognised the deferred tax @ 34.944% instead of prevailing rate of 29.120% (companies having turnover less than 400 Crore in previous financial year). The Impact of the changes has been recognised retrospectively.

57 : Corporate Social Responsibilities (CSR)

(a) The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility is Nil (previous year: Nil).

58 : Other statutory information''s:

(i) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section 560 of the Companies Act 1956 during the year ended 31^st March 2024 and 31^st March 2023.

(ii) There are no charges or satisfaction which are to be registered with the registrar of companies during the year ended 31^st March 2024 and 31^st March 2023 except below:

(iii) The Company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2024 and March 31, 2023.

(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2024 and March 31, 2023.

(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder during the year ended March 31, 2024 and March 31, 2023.

(vi) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authorities during the year ended March 31, 2024 and March 31, 2023.

(vii) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to 237 of the Companies Act 2013 during the year ended March 31, 2024 and March 31, 2023.

(viii) During the year ended March 31,2024 and March 31,2023, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act 1961).

(ix) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) except shown below with the understanding (whether recorded in writing or otherwise) that the company shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

In respect of above transaction, the company has complied relevant provisions of the Foreign Exchange Management Act, 1999, Companies Act 2013 and Prevention of Money-Laundering Act, 2002 to the extent applicable.

(x) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

59 : The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post-employment benefits has received Presidential assent on 28^th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

60 : There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

61 : The Previous year Figures have been regrouped, wherever necessary to confirm the current year Presentation which is not material to the Company.

62 : The company adheres to the requirements of the Goods and Services Act ("GST Act") and "chapter- xvii of the Income Tax Act, 1961 by maintaining proper documentation and information. However, the company, currently, has certain pending compliances including certain reconciliation. Management believes that there will be no significant impact on the statements.

63 : During the previous year ended 31^st March 2023, the Company has completed its Initial Public Offer (IPO) of 11,38,46,152 equity shares of face value of 10 each at an issue price of H 65 per share (including a share premium of H 55 per share). The issue comprised of a fresh issue of 5,69,23,076 equity shares and offer for sale of 5,69,23,076 equity shares by selling shareholders. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 23^rd November, 2022. The total offer expenses are estimated to be H 5,298.97 lakhs which are proportionately allocated between the Company and the selling shareholders as per respective offer size. The Company''s share of expenses of H 3,033.58 lakhs has been adjusted to securities premium.

---

Mar 31, 2023

Provisions and contingencies

The Company recognizes provisions when a present
obligation (legal or constructive) as a result of a past event
exists and it is probable that an outflow of resources
embodying economic benefits will be required to settle such
obligation and the amount of such obligation can be reliably
estimated.

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. If the effect of
time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is
recognised as a finance cost.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot
be measured reliably.

When there is a possible obligation or a present obligation
in respect of which likelihood of outflow of resources
embodying economic benefits is remote, no provision or
disclosure is made.

Contingent liabilities acquired in a business combination
are initially measured at fair value at the acquisition date.
At the end of subsequent period, such contingent liabilities
are measured at the higher of the amounts that would
be recognised in accordance with Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets and the amount
initially recognised less cumulative amortisation recognised
in accordance with Ind AS 18 Revenue, if any.

3.13 Financial instruments

Financial assets and financial liabilities are recognised when
the Company member becomes a party to the contractual
provisions of the instruments. Financial assets and financial
liabilities are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial

recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or
loss.

A] Financial assets

a) Initial recognition and measurement:

Financial assets are recognised when the Company
becomes a party to the contractual provisions of the
instrument. On initial recognition, a financial asset is
recognised at fair value, in case of financial assets
which are recognised at fair value through profit and
loss (FVTPL), its transaction costs are recognised in
the statement of profit and loss. In other cases, the
transaction costs are attributed to the acquisition value
of the financial asset.

b) Effective interest method:

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in
profit or loss and is included in the “Other income” line
item.

c) Subsequent measurement:

For subsequent measurement, the Company classifies a
financial asset in accordance with the below criteria:

i. The Company''s business model for managing the
financial asset and

ii. The contractual cash flow characteristics of the
financial asset.

Based on the above criteria, the Company classifies its
financial assets into the following categories:

i. Financial assets measured at amortized cost:

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

a) The Company''s business model objective for
managing the financial asset is to hold financial
assets in order to collect contractual cash
flows, and

b) 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.

This category applies to cash and bank balances,
trade receivables, loans, certain investments
and other financial assets of the Company. Such
financial assets are subsequently measured at
amortized cost using the effective interest method.

The amortized cost of a financial asset is also
adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

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

a) The Company''s business model objective for
managing the financial asset is achieved both
by collecting contractual cash flows and selling
the financial assets, and

b) 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.

Investments in equity instruments, classified under
financial assets, are initially measured at fair value.
The Company may, on initial recognition, irrevocably
elect to measure the same either at FVTOCI or
FVTPL. The Company makes such election on
an instrument-by-instrument basis. Fair value
changes on an equity instrument are recognised
as other income in the Statement of Profit and Loss
unless the Company has elected to measure such
instrument at FVTOCI.

The Company does not have any financial assets in
this category.

iii. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless
it is measured at amortized cost or at FVTOCI as
explained above.

This is a residual category applied to all other
investments of the Company. Such financial assets
are subsequently measured at fair value at each
reporting date. Fair value changes are recognized
in the Statement of Profit and Loss. Dividend
income on the investments in equity instruments
are recognised as ‘other income'' in the Statement
of Profit and Loss.

d) Derecognition:

A financial asset (or, where applicable, a part of a financial
asset or part of a Company of similar financial assets)
is derecognized (i.e. removed from the Company''s
Balance Sheet) when any of the following occurs:

i. The contractual rights to cash flows from the
financial asset expires;

ii. The Company transfers its contractual rights to
receive cash flows of the financial asset and has
substantially transferred all the risks and rewards of
ownership of the financial asset;

iii. The Company retains the contractual rights to
receive cash flows but assumes a contractual
obligation to pay the cash flows without material
delay to one or more recipients under a ‘pass¬
through'' arrangement (thereby substantially
transferring all the risks and rewards of ownership
of the financial asset);

iv. The Company neither transfers nor retains
substantially all risk and rewards of ownership and
does not retain control over the financial asset.

In cases where the Company has neither transferred
nor retained substantially all of the risks and rewards
of the financial asset, but retains control of the financial
asset, the Company continues to recognize such
financial asset to the extent of its continuing involvement
in the financial asset. In that case, the Company also
recognizes an associated liability.

The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.

On derecognition of a financial asset, the difference
between the asset''s carrying amount and the sum
of the consideration received and receivable and the
cumulative gain or loss that had been recognised in
other comprehensive income and accumulated in
equity is recognised in profit or loss if such gain or loss
would have otherwise been recognised in profit or loss
on disposal of that financial asset.

e) Impairment of financial assets:

The Company applies expected credit losses (ECL)
model for measurement and recognition of loss
allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized cost (other
than trade receivables)

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

In case of trade receivables, the Company follows a
simplified approach wherein an amount equal to lifetime
ECL is measured and recognized as loss allowance.

In case of other assets (listed as ii and iii above), the
Company determines if there has been a significant
increase in credit risk of the financial asset since initial
recognition. If the credit risk of such assets has not
increased significantly, an amount equal to 12-month
ECL is measured and recognized as loss allowance.
However, if credit risk has increased significantly,
an amount equal to lifetime ECL is measured and
recognized as loss allowance.

Subsequently, if the credit quality of the financial asset
improves such that there is no longer a significant
increase in credit risk since initial recognition, the
Company reverts to recognizing impairment loss
allowance based on 12-month ECL.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance with
the contract and all the cash flows that the company
expects to receive (i.e., all cash shortfalls), discounted at
the original effective interest rate.

12-month ECL are a portion of the lifetime ECL which
result from default events that are possible within 12
months from the reporting date. Lifetime ECL are the
expected credit losses resulting from all possible default
events over the expected life of a financial asset.

ECL are measured in a manner that they reflect unbiased
and probability weighted amounts determined by a
range of outcomes, taking into account the time value of
money and other reasonable information available as a
result of past events, current conditions and forecasts of
future economic conditions.

As a practical expedient, the Company uses a provision
matrix to measure lifetime ECL on its portfolio of trade
receivables. The provision matrix is prepared based on
historically observed default rates over the expected
life of trade receivables and is adjusted for forward¬
looking estimates. At each reporting date, the historically
observed default rates and changes in the forward¬
looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as expense/income in

the Statement of Profit and Loss under the head ‘Other
expenses''/''Other income''

B] Financial liabilities and equity instruments

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

i. Equity instruments:-

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the entity are recognised at the proceeds
received, net of direct issue costs.

Repurchase of the entity''s own equity instruments
is recognised and deducted directly in equity.
No gain or loss is recognised in profit or loss on
the purchase, sale, issue or cancellation of the
Company''s own equity instruments.

ii. Compound financial instruments:-

Compound financial instruments issued by the
Company comprise of convertible debentures
denominated in INR that can be converted to equity
shares at the option of the holder. The debentures
will be converted into equity shares at the fair value
on the date of conversion.

The fair value of the liability component of a
compound financial instrument is determined using
a market interest rate of a similar liability that does
not have an equity conversion option. This value is
recorded as a liability on an amortised cost basis
until extinguished on conversion or redemption of
the debentures. The remainder of the proceeds
is attributable to equity portion of the instrument
net of derivatives if any. The equity component is
recognised and included in shareholder''s equity
(net of deferred tax) and is not subsequently re¬
measured. The derivative component is recognized
at fair value and subsequently carried at fair value
through profit or loss.

Interest related to the financial liability is recognized
in profit or loss (unless it qualifies for inclusion in the
cost of an asset). In case of conversion at maturity,
the financial liability is reclassified to equity and no
gain or loss is recognized.

iii. Financial Liabilities:-

a) Initial recognition and measurement :

Financial liabilities are recognised when a
Company member becomes a party to the
contractual provisions of the instrument.
Financial liabilities are initially measured at the
fair value.

b) Subsequent measurement:

Financial liabilities are subsequently measured
at amortised cost using the effective interest
rate method. Financial liabilities carried at fair
value through profit or loss are measured at fair
value with all changes in fair value recognised
in the Statement of Profit and Loss.

The Company has not designated any financial
liability as at FVTPL other than derivative
instrument.

c) Derecognition of financial liabilities:

A financial liability is derecognized 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 between the carrying amount
of the financial liability derecognized and
the consideration paid is recognized in the
Statement of Profit and Loss.

3.14 Earnings Per Share

Basic earnings per share is computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares
that have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the
net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive
potential equity shares, except where the results would be
anti-dilutive.

3.15 Recent Accounting Pronouncement

standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards)
Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This
amendment requires the entities to disclose their material
accounting policies rather than their significant accounting
policies. The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2023. The
Company has evaluated the amendment and the impact of
the amendment is insignificant in the standalone financial
statements.

Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors - This amendment has introduced
a definition of ‘accounting estimates'' and included
amendments to Ind AS 8 to help entities distinguish changes
in accounting policies from changes in accounting estimates.
The effective date for adoption of this amendment is annual
periods beginning on or after April 1, 2023. The Company
has evaluated the amendment and there is no impact on its
standalone financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed
the scope of the initial recognition exemption so that it does
not apply to transactions that give rise to equal and offsetting
temporary differences. The effective date for adoption of this
amendment is annual periods beginning on or after April 1,
2023. The Company has evaluated the amendment and
there is no impact on its standalone financial statement.

4 Critical accounting judgements and use of
estimates

In application of Company''s accounting policies, which are
described in Note 3, the Directors of the Company are required
to make judgements, estimations and assumptions about the
carrying value of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects
only that period, or in the period of revision or future periods if the
revision affects both current and future periods.

4.1 Following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

a) Useful lives of Property, Plant & Equipment (PPE) &
intangible assets:

The Company has adopted useful lives of PPE as
described in Note 3.8 & 3.9 above. The Company
reviews the estimated useful lives of PPE & intangible
assets at the end of each reporting period.

b) Fair value measurements and valuation processes

The Company measures financial instruments at fair
value in accordance with the accounting policies
mentioned above.

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring basis, the
Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing
categorization at the end of each reporting period and
discloses the same.

When the fair values of financials assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques,
including the discounted cash flow model, which
involve various judgements and assumptions. Where
necessary, the Company engages third party qualified
valuers to perform the valuation.

Information about the valuation techniques and inputs
used in determining the fair values of various assets and
liabilities are disclosed in Note 37.

c) Other assumptions and estimation uncertainties,

included in respective notes are as under:

• Recognition of deferred tax assets is based
on estimates of taxable profits in future years.
The Company prepares detailed cash flow and
profitability projections, which are reviewed by the
board of directors of the Company. The Company''s
tax jurisdiction is India. Significant judgments are
involved in estimating budgeted profits for the
purpose of paying advance tax, determining the
provision for income taxes, including amount
expected to be paid / recovered for uncertain tax
positions - see Note 34.

• Measurement of defined benefit obligations and
other long-term employee benefits: key actuarial
assumptions - see Note 38

• Assessment of the status of various legal cases/
claims and other disputes where the Company
does not expect any material outflow of resources
and hence these are reflected as contingent
liabilities. Recognition and measurement of
provisions and contingencies: key assumptions
about the likelihood and magnitude of an outflow of
resources - see Note 42