Notes to Accounts of K P Energy Ltd.

Mar 31, 2025

17. PROVISIONS

A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive
obligation that is reasonably estimable, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability.

18. FOREIGN CURRENCY
Functional currency

The functional currency of the Company is the Indian
rupee. These financial statements are presented in
Indian rupees.

Transactions and translations

Foreign-currency-denominated monetary assets
and liabilities are translated into the relevant
functional currency at exchange rates in effect at
the Balance Sheet date. The gains or losses resulting
from such translations are included in net profit in

the Statement of Profit and Loss. Non-monetary
assets and non-monetary liabilities denominated
in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date
when the fair value was determined. Non-monetary
assets and non-monetary liabilities denominated in a
foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date
of the transaction.

Transaction gains or losses realized upon settlement
of foreign currency transactions are included in
determining net profit for the period in which the
transaction is settled. Revenue, expense and cash¬
flow items denominated in foreign currencies are
translated into the relevant functional currencies
using the exchange rate in effect on the date of the
transaction.

19. EARNINGS PER EQUITY SHARE

Basic earnings per equity share are computed by
dividing the net profit attributable to the equity holders
of the Company by the weighted average number of
equity shares outstanding during the period. Diluted
earnings per equity share are computed by dividing
the net profit attributable to the equity holders of
the Company by the weighted average number of
equity shares considered for deriving basic earnings
per equity share and also the weighted average
number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares.
The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been
actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined
independently for each period presented.

The number of equity shares and potentially dilutive
equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus
shares issues including for changes effected prior to
the approval of the financial statements by the Board
of Directors.

20. EMPLOYEE BENEFITS
Provident fund

Eligible employees of K.P. Energy Limited receive
benefits from a provident fund, if any, which is a
defined benefit plan. Both the eligible employee and
the Company make monthly contributions to the
provident fund plan equal to a specified percentage
of the covered employee’s salary. There are no other
obligation other than contribution payable to the
respective statutory authorities.

No retirement benefits have been paid to any
employee during the year by the company. Retirement
benefits in the form of Gratuity and other long term/
short term employee benefits have not been provided
in the financial statements.

21. CASH FLOW STATEMENT

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

22. DIVIDENDS

The final dividend on shares is recorded as a liability on
the date of approval by the shareholders, and interim
dividends are recorded as a liability on the date of
declaration by the Company’s Board of Directors.

23. CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the Company or a present obligation that is not
recognised because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses
its existence in the financial statements.

24. LEASES

Leases under which the Company assumes
substantially all the risks and rewards of ownership
are classified as finance leases. When acquired, such
assets are capitalized at fair value or present value
of the minimum lease payments at the inception of
the lease, whichever is lower. Lease payments under
operating leases are recognized as an expense on a
straight-line basis in net profit in the Statement of
Profit and Loss over the lease term.

25. SEGMENT REPORTING

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

Identification of segments

In accordance with Ind AS 108- Operating Segment,
the operating segments used to present segment
information are identified on the basis of information
reviewed by the Company’s management to
allocate resources to the segments and assess their
performance. An operating segment is a component of
the Company that engages in business activities from
which it earns revenues and incurs expenses, including
revenues and expenses that relate to transactions
with any of the Company’s other components. Results
of the operating segments are reviewed regularly by
the management team (chairman and chief financial
officer) which has been identified as the chief
operating decision maker (CODM), to make decisions
about resources to be allocated to the segment and
assess its performance and for which discrete financial
information is available.

Allocation of common costs

Common allocable costs are allocated to each
segment accordingly to the relative contribution of
each segment to the total common costs.

Unallocated items

Revenues and expenses, which relate to the Company
as a whole and are not allocable to segments on
a reasonable basis, have been included under
"Unallocated corporate expenses”. Assets and
liabilities, which relate to the Company as a whole and
are not allocable to segments on reasonable basis, are
shown as unallocated corporate assets and liabilities
respectively.

Segment accounting policies

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of
the Company as a whole.

26. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

27. SIGNIFICANT MANAGEMENT JUDGEMENT
IN APPLYING ACCOUNTING POLICIES AND
ESTIMATION UNCERTAINTY

The following are the critical judgments and the key
estimates concerning the future that management
has made in the process of applying the Company’s
accounting policies and that may have the most
significant effect on the amounts recognised in the
financial Statements or that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year.

a) Evaluation of indicators for impairment of assets
- The evaluation of applicability of indicators of
impairment of assets requires assessment of
several external and internal factors which could
result in deterioration of recoverable amount of
the assets.

b) Recognition of deferred tax liabilities - The
extent to which deferred tax liabilities can be
recognised is based on an assessment of the
probability of the future taxable income against
which the deferred tax assets can be utilised.

28. MAINTENANCE OF AUDIT LOG

The Company has defined process to take full back-up
of books of account maintained electronically on daily
basis and it maintains the daily log of such back-up for
cyclic period of 1 week.

29. SHARE BASED PAYMENTS

The Company operates group based equity-sett led
share-based compensation plans, under which the
Company receives services from employees of the

company as consideration for stock options towards
shares of the company. During the year, equity
shares of the company have also been granted to the
employees of its subsidiary and associate companies
- (i) KP ENERGY OMS LIMITED and (ii) VG DTL
TRANSMISSION PROJECTS PRIVATE LIMITED based
on the group equity settled share based payment
scheme KP Energy - ESOP 2023.

In case of equity-settled awards, the fair value of stock
options (at grant date) is recognized as an expense
in the Statement of Profit and Loss within employee
benefits as employee share-based payment expenses
over the vesting period for the shares granted to
the employees of the company and as increase
in the investment in subsidiaries in case of shares
granted to the employees of the subsidiaries, with
a corresponding increase in share based payment
reserve in other equity.

The expense so determined is recognized over the
requisite vesting period, which is the period over
which all of the specified vesting conditions are to
be satisfied. As at each reporting date, the Company
revises its estimates of the number of options that are
expected to vest, if required.

30. RECENT ACCOUNTING PRONOUNCEMENTS

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. On August 12, 2024
and September 09, 2024, MCA issued the Companies
(Indian Accounting Standards) Amendment Rules,
2024 and Companies (Indian Accounting Standards)
Second Amendment Rules, 2024 introducing
following changes:

Ind AS 117 - Insurance Contracts: Ind AS 117:
Insurance Contracts was introduced and Ind AS
104: Insurance Contracts was withdrawn. This was
accompanied with consequent amendments in other
standards.

Ind AS 116 - Leases: The amendments clarify
accounting treatment for a seller-lessee involved in
sale and leaseback transactions, and introduced some
related illustrative examples.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that it
does not have any significant impact in its financial
statements.

(b) Terms/rights attached to equity shares:

The Company has only one class of equity shares having par value of Y 5 per share. Each holder of equity shares
is entitled to one vote per share.

During the Year, the company has declared and paid the Interim Dividend of Y 333.45 Lakhs and declared
Final Dividend pertaining to F.Y.2024-25 of Y 66.69 Lakhs in its board meeting held on 14/05/2025 subject to
approval of shareholders in annual general meeting of the company.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.

D) Financial risk objective and policies:

The Company’s principal financial liabilities, comprise loans and borrowings and trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations/projects. The Company’s
principal financial assets include loans, security and other deposits trade and lease receivables, and cash and
cash equivalents that derive directly from its operations.

In the ordinary course of business, the Company is mainly exposed to interest rate risk, credit risk and liquidity
risk.

The Company’s risk management activities are subject to the management, direction and control of Chief
Financial Officer under the framework of Risk Management Policy for Currency and Interest rate risk as approved
by the Board of Directors of the Company. The Company’s central treasury team ensures appropriate financial
risk governance framework for the Company through appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is
the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

(i) Interest rate risk

The Company is exposed to changes in interest rates due to its financing, investing and cash management
activities. The risks arising from interest rate movements arise from borrowings with variable interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and
borrowings.

For Company''s floating rate borrowings, the analysis is prepared assuming that the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase
or decrease is used, which represents management''s assessment of the reasonably possible change in interest
rate.

(ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables and other financial assets), including deposits with banks and other financial instruments.

Customer credit risk is managed by the Company’s established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation
and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogenous groups and assessed for impairment
collectively. The calculation is based on historical data.

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the
Company’s policy.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk
may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company’s exposure to liquidity risk
arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the
liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit
facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments
in a timely and cost-effective manner.

NOTE 31: EVENT OCCURRED AFTER THE BALANCE SHEET DATE

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to
the approval of financial statements to determine the necessity for recognition and/or reporting of any of these
events and transactions in the financial statements.

The board of directors have proposed dividend after the balance sheet date which are subject to approval by the
shareholders at the annual general meeting. Refer Note 12 for details.

NOTE 32: EMPLOYEE STOCK OPTION PLAN

The KP Energy - ESOP 2023 Plan was adopted pursuant to resolutions passed by the NRC (Nomination and
Remuneration Committee). The company has granted options at an exercise price of %33 which vest 25%, 25%,
35% and 15% respectively at the end of the 1^st year, at the end of 2^nd year, at the end of 3^rd year and end of 4^th
year respectively from the date of grant of ESOP.

6. Special Civil Application No. 17093 of 2018 at
High Court of Gujarat.

7. Special Civil Application No. 6832 of 2020 at
High Court of Gujarat.

8. Assessment proceedings with Assessment
Unit, Income tax department for AY 2019-20
amounting to A179.94 Lakhs under section
147 read with Section 144B of the income tax
Act, 1961.

The Company has reviewed all its pending litigations
and proceedings and has not provided as Contingent
liabilities in its standalone financial statements.

The Company does not expect the outcome of these
proceedings to have a material adverse effect on its
standalone financial statements. Hence, no provision
has been made by the company against this litigation
in books of account.

The Company has not given any Bank Guarantees in
respect of Contingent liabilities.

NOTE 35: SEGMENT REPORTING

The Company has presented segment information
in the consolidated financial statements which are
presented in the same financial report. Accordingly,
in terms of Paragraph 3 of Ind AS 108 "Operating
segments", no disclosures related to segments are
presented in these standalone financial statements.

NOTE 36: OTHER STATUTORY INFORMATION

(i) There are no proceedings initiated or pending
against the Company for holding any benami
property under the Benami Transactions
(Prohibitions) Act, 1988 (45 of 1988) and the
rules made thereunder.

(ii) The Company does not have any transactions
with companies struck off.

(iii) The Company does not have any charges or
satisfaction which is yet to be registered with
ROC beyond the statutory period.

(iv) The Company has not traded or invested in
Crypto currency or Virtual Currency during the
financial year.

(v) The Company has 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:

(a) 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

(b) provide any guarantee, security or the
like to or on behalf of the Ultimate
Beneficiaries.

(vi) The Company has not received any fund from
any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that
the Company shall:

(a) 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

(b) provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such
transaction which is not recorded in the books
of accounts that has been surrendered or
disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961.

(viii) The Company has sanctioned borrowings/
facilities from banks on the basis of security
of current assets. The quarterly returns or
statements of current assets filed by the
Company with banks and financial institutions
are in agreement with the books of accounts.

(ix) The Company has complied with the number of
layers prescribed under clause (87) of Section 2
of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017.

(x) The Company has not been declared a wilful
defaulter by any bank or financial institution.

(xi) The title deeds of all the immovable properties
are held in the name of the Company.

Note 38: The Company has defined process to take full back-up of books of account maintained electronically
on daily basis and it maintains the daily log of such back-up for cyclic period of 1 week.

NOTE 39: The Company has used accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with.

NOTE 40: The previous year''s figures have been re-grouped/re-classified wherever required to confirm to
current year''s classification.

For MAAK and Associates For and on behalf of Board of Directors of

Firm Registration No. 135024W K.P. ENERGY LIMITED

Chartered Accountants

CA Kenan Satyawadi Farukbhai Gulambhai Patel Affan Faruk Patel

Partner Managing Director Whole Time Director

Membership No. 139533 DIN: 00414045 DIN: 08576337

Karmit Haribhadrabhai Sheth Shabana Virender Bajari

Company Secretary Chief Financial Officer

Place: Ahmedabad Place: Surat

Date: May 14, 2025 Date: May 14, 2025

UDIN: 25139533BMLCXU5706

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Mar 31, 2024

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of ''5 per share. Each holder of equity shares is entitled to one vote per share.

During the Year, the Company has declared and paid the Interim Dividend of ''100.04 Lakhs and declared Final Dividend pertaining to F.Y.2023-24 of ''66.69 Lakhs in its board meeting held on 22/04/2024 subject to approval of shareholders in annual general meeting of the Company.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

‘Security: Secured against batching plant and including its spares, tools and accessories, software, in factory or sites of the Company situated at Village: Bhungar, Ta.- Talaja, Dist: Bhavnagar, Gujarat 364130.

‘‘Security: Secured on specific immovable property owned by the Company.

A. Details of interest rate for each type of borrowings

i. The interest on above rupee term loans from banks are linked to the respective banks base rates/MCLR which are

floating in nature. As of March 31, 2024 the interest rates ranges from 8.50% to 9.45% per annum (March 31, 2023:

8.50% to 11% per annum).

ii. The interest on above vehicle loans from banks are linked to the respective banks base rates/MCLR which are fixed

in nature. As of March 31, 2024 the interest rates ranges from 7.25% to 9.15% per annum (March 31, 2023: 7.80% to

18.10% per annum).

B) Financial instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

D) Financial risk objective and policies

The Company''s principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations/projects. The Company''s principal financial assets include loans, security and other deposits trade and lease receivables, and cash and cash equivalents that derive directly from its operations.

In the ordinary course of business, the Company is mainly exposed to interest rate risk, credit risk and liquidity risk.

The Company''s risk management activities are subject to the management, direction and control of Chief Financial Officer under the framework of Risk Management Policy for Currency and Interest rate risk as approved by the Board of Directors of the Company. The Company''s central treasury team ensures appropriate financial risk governance framework for the Company through appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken.

(i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash management activities. Currently the Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with fixed interest rates. As at March 31, 2024, all the borrowings are at floating rate of interest.

(ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily

trade receivables and other financial assets), including deposits with banks and other financial instruments.

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset.Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long-term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

E) Capital management

For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s capital management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company has a defined gratuity plan which is unfunded. Under the plan every employee who has completed at least five year of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summaries the component of the net benefits expense recognised in the statement of profit and loss account and amounts recognized in the balance sheet for the respective plan.

Sensitivity Analysis Method

The sensitivity analysis have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The 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.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

NOTE 29: LEASES

The Company has recognized lease liability measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to lease liability.

The Company majorly is having Corporate Office, Plots and Plants on Long term Lease.

NOTE 31: CONTINGENT LIABILITIES

The Company has no pending litigations which comprises

of claims against the Company by employees and

pertaining to proceedings pending with various dicrect tax,

indirect tax and other authorities except the followings:

1. Public Interest Litigation No. 85 of 2016 at High Court of Gujarat;

2. Public Interest Litigation No. 241 of 2018 at High Court of Gujarat;

3. Special Civil Application No. 9120 of 2017 at High Court of Gujarat;

4. Special Civil Application No. 6303 of 2020 at High Court of Gujarat;

5. Special Civil Application No. 1050 of 2020 at High Court of Gujarat;

6. Special Civil Application No. 17093 of 2018 at High Court of Gujarat;

7. Special Civil Application No. 6832 of 2020 at High Court of Gujarat;

8. Public Interest Litigation No. 88 of 2023 at High Court of Gujarat;

9. Assesssment proeedingss with Assessment Unit, Income tax department for AY 2019-20 amounting to ''179.94 Lakhs under Section 147 read with Section 144B of the Income Tax Act, 1961.

The Company has reviewed all its pending litigations and proceedings and provision has not provided as Contingent liabilities in its standalone financial statements.

The Company does not expect the outcome of these proceedings to have a material adverse effect on its standalone financial statements.Hence, no provision has been made by the Company against this litigation in books of account.

The Company has not given any Bank Guarantees in respect of Contingent liabilities.

The Company has not accounted interest on outstanding Balances of MSME vendors as on March 31, 2024 as the Company is of opinion that no outstanding MSME vendor would file a case under MSME Act, 2006 and would demand a interest on outstanding amount since outstanding date.

NOTE 33: EVENT OCCURRED AFTER THE BALANCE SHEET DATE

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements.

The Board of Directors have proposed dividend after the balance sheet date which are subject to approval by the shareholders at the annual general meeting. Refer Note 12 for details.

NOTE 34: SEGEMENT REPORTING

The Company has presented segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of Paragraph 3 of Ind AS 108 "Operating segments", no disclosures related to segments are presented in these standalone financial statements.

NOTE 35: OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company is not declared wilful defaulter by any bank or financial institutions or lender during the year.

(x) The title deeds of all the immovable properties are held in the name of the Company.

NOTE 37: The Company has defined process to take full back-up of books of account maintained electronically on daily basis and it maintains the daily log of such back-up for cyclic period of 1 week.

NOTE 38: The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.Further, there are no instance of audit trail feature being tampered with.

NOTE 39: The previous year''s figures have been re-grouped/re-classified wherever required to confirm to current year''s classification.

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Mar 31, 2023

PROVISIONS

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that is reasonably estimable, and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability.

18. FOREIGN CURRENCYFunctional currency

The functional currency of the Company is the Indian rupee.
These financial statements are presented in Indian rupees.

Transactions and translations

Foreign-currency-denominated monetary assets and
liabilities are translated into the relevant functional

currency at exchange rates in effect at the Balance Sheet
date. The gains or losses resulting from such translations
are included in net profit in the Statement of Profit and
Loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair
value are translated at the exchange rate prevalent at the
date when the fair value was determined. Non-monetary
assets and non-monetary liabilities denominated in a foreign
currency and measured at historical cost are translated at
the exchange rate prevalent at the date of the transaction.

Transaction gains or losses realized upon settlement of
foreign currency transactions are included in determining
net profit for the period in which the transaction is settled.
Revenue, expense and cash-flow items denominated in
foreign currencies are translated into the relevant functional
currencies using the exchange rate in effect on the date of
the transaction.

19. EARNINGS PER EQUITY SHARE

Basic earnings per equity share are computed by dividing
the net profit attributable to the equity holders of the
Company by the weighted average number of equity
shares outstanding during the period. Diluted earnings
per equity share are computed by dividing the net profit
attributable to the equity holders of the Company by the
weighted average number of equity shares considered
for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually
issued at fair value (i.e. the average market value of the
outstanding equity shares). Dilutive potential equity shares
are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented.

The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for
changes effected prior to the approval of the financial
statements by the Board of Directors.

20. EMPLOYEE BENEFITS

Provident fund

Eligible employees of Ungarn Renewable Energy Private
Limited receive benefits from a provident fund, if any, which
is a defined benefit plan. Both the eligible employee and
the Company make monthly contributions to the provident
fund plan equal to a specified percentage of the covered
employee''s salary. There are no other obligation other than
contribution payable to the respective statutory authorities.

No retirement benefits have been paid to any employee
during the year by the Company. Retirement benefits in the
form of Gratuity and other long term/short term employee
benefits have not been provided in the financial statements.

21. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby
profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or

future operating cash receipts or payments and item of
income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

22. DIVIDENDS

The final dividend on shares is recorded as a liability on the
date of approval by the shareholders, and interim dividends
are recorded as a liability on the date of declaration by the
Company''s Board of Directors.

23. CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

24. LEASES

Leases under which the Company assumes substantially all
the risks and rewards of ownership are classified as finance
leases. When acquired, such assets are capitalized at fair
value or present value of the minimum lease payments at the
inception of the lease, whichever is lower. Lease payments
under operating leases are recognized as an expense on a
straight-line basis in net profit in the Statement of Profit and
Loss over the lease term.

25. SEGMENT REPORTING

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

Identification of segments

In accordance with Ind AS 108- Operating Segment, the
operating segments used to present segment information
are identified on the basis of information reviewed by the
Company''s management to allocate resources to the
segments and assess their performance. An operating
segment is a component of the Company that engages in
business activities from which it earns revenues and incurs
expenses, including revenues and expenses that relate to
transactions with any of the Company''s other components.
Results of the operating segments are reviewed regularly
by the management team (chairman and chief financial
officer) which has been identified as the chief operating
decision maker (CODM), to make decisions about resources
to be allocated to the segment and assess its performance
and for which discrete financial information is available.

Allocation of common costs

Common allocable costs are allocated to each segment
accordingly to the relative contribution of each segment to
the total common costs.

Unallocated items

Revenues and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis,
have been included under "Unallocated corporate expenses”. Assets and liabilities, which relate to the Company as a whole
and are not allocable to segments on reasonable basis, are shown as unallocated corporate assets and liabilities respectively.

Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

26. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

27. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND
ESTIMATION UNCERTAINTY

The following are the critical judgments and the key estimates concerning the future that management has made in the
process of applying the Company''s accounting policies and that may have the most significant effect on the amounts
recognised in the financial Statements or that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.

a) Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets
requires assessment of several external and internal factors which could result in deterioration of recoverable amount
of the assets.

b) Recognition of deferred tax liabilities - The extent to which deferred tax liabilities can be recognised is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

28. RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards. There is no such
notification which would have been applicable from April 1, 2022.

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Mar 31, 2018

1 CORPORATE INFORMATION :

K.P Energy Limited (“the Company”) was incorporated on 08/01/2010 as a Private Limited company and later on converted in Public Limited company domiciled in India. Its shares are listed on BSE SME platform. The company is primarily engaged in Wind Farm development, development of Wind Mills and allied services related to it along with generation of electricity through wind mill.

TERMS / RIGHTS ATTACHED TO EQUITY SHARES

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

During the year the company has not declared in interim dividend nor proposed any final dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

DETAILS OF CONVERTIBLE SECURITIES:

The company has not issued any securities convertible into equity or preference shares.

DETAILS OF SHARES RESERVED FOR EMPLOYEES STOCK OPTIONS :

The company has not reserved any shares for employees stock options

SHARE HOLDERS HOLDING MORE THAN 5 % EQUITY SHARES IN THE COMPANY As per records of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

The company has no holding company.

LONG TERM BORROWINGS :

The company has outstanding balance of term loan from SBI Rs. 12.47 Crores (14.30 Crores), and Axis Bank Rs. 7 lakhs (Rs. 28.88 Lakhs) which are secured by first pari passu charge on all fixed assets created out of Bank finance. The loan of SBI is further secured by collateral securities of various flats of KPI Global Infrastructure Ltd., and immovable properties of the director and family members of the Directors, Other fixed assets of the Company including Plant and machineries, lands situated at various places and bank FD. The borrowings are further secured by personal guarantee of Directors and family members of directors along with corporate guarantee of KPI Global infrastructure Ltd. Loans from Axis bank are secured against the respective assets for which the loans were sanctioned by the bank.

Other long term loans from Capital First Ltd., Magma Fincorp Ltd., Tata Capital Finance Services Ltd. are unsecured loans.

Vehicle loan of Rs. 7,85,412 (Rs. 13,30,174) of which Rs. 5,71,356/- (Rs. 5,14,093) classified as Current maturities of long term debt is secured against vehicle under hire purchase contract. During the year company has taken 2 new term loans from SIDBI and outstanding balance is 17.79 Crores (‘ NIL) for setting up wind mills at Sathara, Bhavnagar and Rjnawata, Porbantar.

The amounts of all terms loans are the amounts which are left after classifying the amounts under Current maturities of long term debt.

SHORT TERM BORROWINGS

The company has taken the Cash credit facilities from SBI for Rs. 4.00 Crores (4.00 Crores) which is secured by first pari passu charge on all current assets primarily Stock and Book debts. The rate of interest on the working capital facility from bank is 10 % p.a.(i 0.00% p.a.) calculated on daily products on monthly rests. Till the renewal of the working capital facility by the bank during March, 20 i 8. During the year company has taken Stand by line of Credit (SLC) from SBI for Rs.1.80 Crores (NIL) which is secured by first pari passu charge on all current assets primarily Stock and Book debts. The rate of interest on the working capital facility from bank is ii % p.a.(NIL) calculated on daily products on monthly rests.

The same is further secured by collateral securities of various flats of KPI Global Infrastructure Ltd., and immovable properties of the director and family members of the Directors, Other fixed assets of the Company including Plant and machineries, lands situated at various places and bank FD. The borrowings are further secured by personal guarantee of Directors and family members of directors along with corporate guarantee of KPI Global infrastructure Ltd.

TRADE PAYABLES

As certified and confirmed by the management that there are no entities of trade payables which are Micro Enterprises and small enterprises.

FIXED ASSETS:

a) Amount shown as deduction from Land at Madhiya Rs. 9676 14/- is the amount of advances given for purchase of land which was wrongly included under the head fixed assets in earlier year. Hence the same is shown as deduction from the respective land and included in Short term loans and advances with the name of the person to whom the said advances were given.

b) There is no intent to sale any of the assets held by the company and hence there is no fixed assets held for disposal.

c) All the assets purchased during the year were put to use before 3 1^st March 2018. The assets which are not put to use during the year are separately shown under capital work-in-progress at the year end except wind power generation plant at Mahuva, Sathara amounted to Rs. 14,76,04,042/- which is included in total addition in the wind power generation Plant amounted to Rs. 29,12,47,373/-. The power generation plant at Mahuva, Sathara is commissioned on 29/06/2017, however, the commercial production has not been started from the said plant and hence no depreciation has been provided for this plant.

d) There is no lease hold fixed asset held by the company during the year under reporting and in the preceding year.

NON CUR RENT INVESTMENTS

During the yea r the company has acquired fu rthn r shares of the subsidiary compasiRs and accordingly the total percentage of hoi ding of yhe Company id the su bsidiary compaeins is as follows :

- KP E nnrgy Mahuva Windfarms Peiva’te Limited. 99. 03 % (98.85%)

- Ungarn Renewable E nnrgy 1^r i velIir LimiSed. 98 .20 % (95.55%)

- Windfarm DRvdopRrs Private Limited! 98.77 % (98.33%)

Evergreen Mahuva Windfarms Private Limited 5 i % (NIL)

During the yeaa the com|mny has entered ieto l_l_P as paatn nr and appoinⁿnd Mr. Fdt uk Patel to acⁿ as Drsgn atnd Partner on behalf tim Com pany. Another IDirn ctor Mn. Ashiish Ml it har is also a designate d partn nr in thnsn LLPs and _Li n (Company/ hold 99% stake in al I thn LLPs whereas Mr. Ashish Mlithani hold s i % stake i n thnsn L LF’s.

Rnfnr Noon No. 3 4

INVENTORIES:

Inventories are valued at cost or net realisable value whichever is lower by following FIFO method. Inventories of leasehold lands are valued at cost. Inventory includes stock of power valued at net realisable value.

TRADE RECEIVABLES:

Sundry debtors are trade receivables which are due in respect of goods sold in the normal course of the business. The debtors outstanding for more than 6 months are those debtors which are outstanding for more than 6 months from the date of Invoice but all of them are good as reviewed by the management and hence no provisions for doubtful debts has been made.

SHORT TERM LOANS AND ADVANCES

Amount shown under the head short term loans and advances are the amounts of current capital contribution to various subsidiary LLPs.

2 Operating Leases

The Company has taken certain premises under cancellable operating leases. However there is no escalation clause. Each renewal is at the option of lessee. There are no restrictions placed upon the company by entering into these leases. The total rental expense under cancellable operating leases during the period was Rs 15,03,777 (Rs. 10,49,823).

3 Earning / (loss) per share

Basic and Dilutive Earnings per Share (“EPS”) computed in accordance with Accounting Standard (AS)

4 Earnings per Share’.

Since the company has not issued any convertible preference shares or convertible debentures, the diluted EPS is same as that of Basic EPS.

5 Segmental Reporting (AS 17):

As permitted by paragraph 4 of Accounting Standard-17 (As-17),”Segment Reporting”, if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need by presented only on the basis of the consolidated financial statements. Thus, disclosures required by AS-17 are given in consolidated financial statements.

6 Related Party Disclosures

a. List of related parties and nature of relationships where control exists :

a. Other related parties with whom transactions have taken place during the year :

i) Entities where Key Management Personnel (KMP) / relatives of key management personnel (RKMP) have significant influence :

Faaiz Money Changer Private Limited,

KP Sor-Urja Limited,

KP Human Development Foundation,

KPI Global Infrastructure Limited,

KP Buildcon Private Limited.

ii) Key Management Personnel :

Faruk Gulambhai Patel - Managing Director Ashish Ashwin Mithani - Whole Time Director Pravin Singh - Chief Financial Officer Karmit Haribhadrabhai Sheth - Company Secretary

iii) Relatives of key management personnel :

Vahidabanu Faruk Patel,

Aayesha Farukh Patel,

Jolly Ashish Mithani,

Gulambhai Mahamad Ali Patel Rashida Gulambhai Mahamad Patel

Loans given to related parties are repayable on demand. The loans given to related parties are interest free. These loans have been utilized by these related parties for funding their business operations.

Note : No loans have been granted by the Company to any person for the purpose of investing in the shares of K p Energy Limited or any of its Subsidiaries.

7. Cash Flow Statement :

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

8. Based on the information available with the company, there are no dues to Micro & Small Enterprises under the Micro, Small and medium Enterprises Development Act, 2006.

9. Disclosure required U/S. 186(4) of The Companies Act, 2013 :

For details of loans and guarantees given to and given by related parties, refer Note No. 34.

For details of securities provided by the related parties, refer Note No. 5 & 34.

For details of Investments made refer Note No. 14.

10. The provisions of sec. 135 of the Companies Act, 2013 related to Corporate Social Responsibility are applicable to the company hence, expenses is made out of profit and expenses were incurred by the company during the reporting period.

11. During the year the company has not entered into any hire purchase agreement with any institutions.

12. Provision for trade guarantees / warrantees :

The company is primarily engaged in Wind Farm development, development of Wind Mills and allied services related to it along with generation of electricity through wind mill and not provided or entered into any service contracts which creates the liability of warranties etc. and therefore, no such liabilities are provided.

13. Capital and other commitments :

There are no contracts remaining to be executed on Capital account and hence no provision has been made on this account.

The Company has no obligation on account of non-fulfilment of export commitments under various advance licenses during the reporting period and hence no provisions have been made.

14. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting policies. (GAAP).

15. The previous year’s figures have been regrouped or reclassified wherever necessary to confirm with the current year’s presentation.