Notes to Accounts of Gita Renewable Energy Ltd.

Mar 31, 2024

2.12 Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated.

Differences between the actual results and estimates are recognized in the year in which the results are known materialized.

2.13 Financial Instruments:

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the relevant instrument and 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 at fair value through profit or loss are recognized immediately in profit or loss.

2.14 Financial Asset

i) Financial assets comprise of investments in Equity, Trade Receivables, Cash and Cash Equivalents and Other Financial Assets.

ii) Depending on the business model (i.e) nature of transactions for managing those financial assets and its contractual cash flow characteristics, the financial assets are initially measured at fair value and subsequently measured and classified at:

a) Amortized cost; or

b) Fair value through Other Comprehensive Income (FVTOCI); or

c) Fair value through Profit or Loss (FVTPL)

d) Amortized cost represents carrying amount on initial recognition at fair value plus or minus transaction cost.

iii) The Company classifies its financial assets for measurement as below:-

iv) The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset or part thereof, the difference between the carrying amount measured at the date of recognition and the consideration received including any new asset obtained less any new liability assumed shall be recognized in the statement of profit and Loss.

v) The company assesses at each balance sheet date whether the financial asset or group of financial assets is impaired. IND AS 109 requires expected credit losses to be measured through a loss allowance. The company recognizes lifetime expected losses for trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the financial asset has increased significantly since initial recognition.

2.15 Financial Liability

i) Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial instruments, financial guarantee obligation and other financial liabilities.

ii) The Company measures its financial liabilities as below:

iii) Financial liabilities are derecognised when and only when it is extinguished (i.e) when the obligation specified in the contract is discharged or cancelled or expired.

iv) Upon de-recognition of its financial liabilities or part thereof, the difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid including any non-cash assets transferred or liabilities assumed is recognized in the Statement of Profit and Loss.

2.16 Fair value measurement

i) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ii) The fair value of an asset or a liability is measured / disclosed using the assumptions that the market participants would use when pricing the asset or liability, assuming that the market participants act in the economic best interest.

iii) All assets and liabilities for which fair value is measured are disclosed in the financial statements are categorised within fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are unobservable.

iv) For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period (i.e) based on the lowest level input that is significant to the fair value measurement as a whole.

v) For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature, characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.

vi) The basis for fair value determination for measurement and / or disclosure purposes is detailed below:

a. Investments in Equity

The fair value is determined by reference to their quoted prices at the reporting date. In the absence of the quoted price, the fair value of the equity is measured using generally accepted valuation techniques.

b. Forward exchange contracts

The fair value of forward exchange contracts is based on the quoted price if available; otherwise, it is estimated by discounting the difference between contractual forward price and current forward price for the residual maturity of the contract using government bond rates.

c. Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, borrowings are determined for disclosure purposes calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

2.17 Additional Information to the Financial Statements

i) Remaining business of the Company is in the field of operation and maintenance of power generating units and others ancillary operations retained with the Company. There is no major adverse effect on the going concern of the Company. During the year the Total income of your Company is Rs.87,63,534/- as against Rs. 8,87,20,054/-.

ii) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Rs. Nil (Previous year Rs. Nil).

(b) Towards outstanding Letter of Credit Rs. Nil (Previous year Rs. Nil) on account of import of raw materials.

iii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil).

iv) Claims against the Company not acknowledged as Debt Rs. Nil. Contingent liabilities not provided for Rs. Nil.

v) Employee / Retirement Benefits: No provision for Retirement Benefits / gratuity to employees has been made since there are no employees eligible for the same.

vi) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2024 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vii) As on the closing date, Company has circularized/sought confirmation of balance letters to/from sundry debtors and Loans and Advance paid to parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as correct.

viii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Rs. Nil (previous year Rs. Nil).

ix) CIF Value of Imports: Rs. Nil

x) Remittance in Foreign Currency towards Dividend - Rs. Nil.

xi) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil)

xii) RELATED PARTY DISCLOSURES

Details of related parties including summary of transactions entered into by the Company during the year ended 31 March 2024 are summarized below:

Formula adopted for above Ratios:

Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand Current maturities of Long Term Debt)

Debt-Equity Ratio = Total Debt / Total Equity

Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest on term loans)

Return on Equity Ratio = Total Comprehensive Income / Average Total Equity Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories) Trade receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade receivables) Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net Revenue / Average Trade payables)

Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio -Trade payables turnover ratio)

Net Profit Ratio = Net Profit / Net Revenue

Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt)) Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets

As per our report of even date annexed For S.K GULECHA & ASSOCIATES Chartered Accountants FRN 013340S

^R IVataiajan Saraswathi

Managing Director _Director

^DIN-00595027 DIN-07140959

SANDEEP KUMAR GULECHA (MNR: 226263)

Place: Chennai

Date: 17.05.2024 _{V Kumar} Manas Ranjan

^{UDIN N}o: ^{24226263BKBNNT1589} Chief Financial Officer _r ^Sah°^o ,

Company Secretary

---

Mar 31, 2015

1.Company overview:

Gita Renewable Energy Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is engaged in power generation. The company's shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.

2.Movement of Shares

Authorised Capital, Issued, Subscribed and fully paid up Capital

There is no movement of shares outstanding at the beginning and at the end of the reporting period.

3. Terms / rights attached to equity shares:

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

4.Terms of repayment and rate of interest:

Rupee Term Loan of Rs.68489966/- is repayable in 8 quarterly instalments of Rs.8572000 each and it carries interest @12% pa.

Security

(Term Loan from Bank is secured by equitable mortgage of Land and Building including Plant and Machinery)

5. Additional Information to the Financial Statements

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Rs. Nil).

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Rs. Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil).

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Contingent liabilities not provided for Rs. Nil.

iv) Employee / Retirement Benefits: No provision for Retirement Benefits / gratuity to employees has been made since there are no employees eligible for the same.

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2015 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) As on the closing date, Company has circularized/sought confirmation of balance letters to/from sundry debtors and Loans and Advance paid to parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as correct.

vii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Rs. Nil (previous year Rs. Nil).

viii) CIF Value of Imports: Rs. Nil

ix) Remittance in Foreign Currency towards Dividend - Rs. Nil.

x) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Rs. Nil)

xi) Licence Agreement:

The company has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall pay lease rent of Rs.2,50,000/- p.m. plus applicable taxes to the company an interest free deposit of Rs.44,40,00,000/- and The Interest free deposit is grouped under unsecured loan.

xiii) SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2015.

Business Segment:

(a) The Company operates in Single Business Segment of 'Generation and distribution of power'. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

xv) Previous year figures:

Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2014

A) Movement of Shares

Authorsied Capital, Issued, Subscribed and fully paid up Capital There is no movement in of shares during the reporting period.

b) Terms / rights attached to equity shares:

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

Terms of repayment and rate of interest :

Rupee Term Loan of Rs.109,590,962/- is repayable in 13 quarterly instalments of Rs.8,572,000/- each and it carries an interest @12% pa.

Security :

Term Loan from Bank are secured by equitable mortgage of Land and Building including Plant and Mahchinery and also by hypothecation of Raw materials, Stock in process and Finished Goods. Corporate guarantee by M/s. Tamilnadu Property Developers Limited and also personally guaranteed by the CMD of the demerged company.

Notes attached to and forming part of the Balance Sheet as at 31-3-2014 and the Profit and Loss account for the period ended on that date:

1. CORPORATE INFORMATION:

Gita Renewable Energy Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is engaged in power generation through wind mills and waste heat recovery plant. The company is in the process of listing its shares in Bombay Stock Exchange Limited. Gita Renewable Energy Limited was one of the resulting companies of demerged Kanishk Steel Industries Limited.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Nil)

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil pertaining to resulting company) and for others is nil.

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not provided for: Nil

iv) Employee Benefits - There are no employees during the year 2013-14

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2014 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

vii) During the year the company has written back an amount of Rs. 2,98,56,569/- as liabilities no longer required & written off to the extent of Rs. 2,62,83,910/- from advances given to parties (Net 35,72,659/- Credit)

viii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Nil (previous year Nil)

ix) CIF Value of Imports: Nil

x) Remittance in Foreign Currency towards Dividend - Nil.

xi) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Nil)

Note : Related party relationship is as identified by the Company and relied upon by the Auditors

xiii) Licence Agreement :

Demerged Company(Kanishk Steel Industries Limited) has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG renewable Energy Private limited (OPGREPL) on the understanding that OPGREPL shall provide power to the company an interest free deposit of Rs.44,40,00,000/- accordingly it is grouped under unsecured loan.

xiv) SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2014.

Business Segment:

(a) The Company operates in Single Business Segment of ''Generation and distribution of power''. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company

(b) The Company has not yet been successful in its efforts to appoint a Company Secretary to fulfill the requirements of Section 383A of the Companies Act, 1956.

xvi) Previous year figures :

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2013

A) Movement of Shares Authorised Capital

Consequent to Scheme of Arrangement approved by the Honourable High Court of Judicature at Madras, the authorised capital increased from Rs. 500,000/- to Rs.42,500,000/-.

Issued, Subscribed and fully Paid up Capital

4062296 Number of shares of Rs.10/- each (fully paid-up) has been issued on 19.04.2013 to the Shareholders of Demerged Company as follows:

One equity share in company of face value of Rs.10/- each as fully paid up for Seven Equity shares of Rs.10/- each fully paid up held in the Demerged Company.

b) Terms / rights attached to equity shares:

The company has only one class of Equity share at face value of Rs.10/- per share. Every shareholder is entitled to one vote per share.

At the event of liquidation of the company, such shareholders will be entitled to receive the assets of the company, in proportion to the number of equity shares held by them in the Capital of the Company.

Terms of repayment and rate of interest:

Rupee Term Loan of Rs.240,006,951/- is repayable in 28 quarterly instalments of Rs.8,572,000/- each and it carries an interest @12% pa.

Security:

Term Loan from Bank is secured by equitable mortgage of Land and Building including Plant and Mahchinery and also by hypothecation of Raw materials, Stock in process and Finished Goods. Corporate guarantee by M/s. Tamilnadu Property Developers Limited and also personally guaranteed by the CMD of the demerged company.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Nil)

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil pertaining to resulting company) and for others is nil.

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not provided for: Nil

iv) Employee Benefits - There are no eligible employees during the year 2012-13

v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31,2013 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

vii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Nil (previous year Nil)

viii) CIF Value of Imports: Nil

ix) Remittance in Foreign Currency towards Dividend

x) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Nil).

3. RELATED PARTY DISCLOSURES

Details of related parties including summary of transactions entered into by the Branch during the year ended 31 March 2013 are summarized below:

Names of related parties and description of relationship:

Key management personnel Rajesh Kumar Gupta Ravi Kumar Gupta Avantika Gupta Other Related Parties Kanishk Steel Industries Limited Chennai Ferrous Industries Limited OPG Renewable Energy Private Limited

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

4. SCHEME OF ARRANGEMENT

a) Pursuant to the scheme of arrangement ("the scheme") between Kanishk Steel Industries Limited (Demerged Company) and the company as sanctioned by the Hon''ble High Court of Judicature at Madras, vide its order dated 04-01-2013, the entire assets & liabilities, and duties & obligations of its power division pertaining to the demerged Company, were transferred to and vested in the company with effect from 01-07-2010 (Appointed date). The scheme became effective on 28-02-2013 and accordingly has been given effect to these financial statements.

b) Details of Assets and Liabilities acquired pursuant to the Scheme of Arrangement (Demerger) and treatment of the difference between the net assets acquired and cost of investment by the Company in the Demerged Company together with the shares issued to the share holders of the Company.

Balance as at 01-07-2010

5. LICENCE AGREEMENT:

The Company has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall provide power to the company an interest free deposit of Rs.439,770,000/-. Accordingly it is grouped under unsecured loan.

6. SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2013.

Business Segment:

(a) The Company operates in Single Business Segment of ''Generation and distribution of power''. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

(b) The Company has not yet been successful in its efforts to appoint a Company Secretary to fulfill the requirements of Section 383A of the Companies Act, 1956.

7. PREVIOUS YEAR FIGURES:

The financial statements for the current year include the figures relating to Power Division of Kanishk Steel Industries Limited whose assets and liabilities have been transferred to and vested with the Company with effect from 01.07.2010 pursuant to a scheme of arrangement. Hence the current year figures are not comparable with that of the previous year. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

---

Mar 31, 2012

1. The company is yet to commence commercial operations.

2. Earnings in foreign exchange: Nil. Expenditure in foreign exchange is Rs. Nil.

3. The company did not owe any amount to micro and smal1 enterprises as defined under the Micro, Small and Medium Enterprises Development Act,

4. Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not Drovided for Rs Nil contiingent liablities not provided for NIl

5.Related Party Disclosures

Details of realted parties including summary of transcation entere into by the branch during the ended 31st march 22012 are suuuarized below

Note . Related party realtionship is as identified by the company and relied u0pon by the Auditors

Related party trasactions :

During the year no transactions were entered by the company with the related parties

6.Information with regard to the other matters specified in paragraph of part 11 of schedule vi of the Companies Act 1956 are eithter nil or not applicable to the company for the financial year

7. previous year are regrouped rerranged wherever necessary.