Notes to Accounts of Karma Energy Ltd.

Mar 31, 2024

f Provisions and Contingent liabilities

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

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

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

A provision for onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.

g Employee Benefits Expense

Short Term Employee Benefits : The undiscounted amount of shortterm employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

Post-Employment Benefits :

Defined Contribution Plans - A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined Benefit Plans - The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation / superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act 1972 or otherwise contractually agreed with the employees.

The gratuity liability amount is contributed to the approved gratuity fund formed (LIC) exclusively for gratuity payment to the employees. The gratuity fund has been approved by Income Tax authorities.

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

h Tax Expenses

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used.

Deferred tax assets recognised or unrecognised are reviewed at each reporting date and are recognised / reduced to the extent that it is probable / no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

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

The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

i Foreign currencies transactions

Transactions in foreign currencies are initially recorded by the company at their functional currency spot rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company’s monetary items at the closing rates are recognised as income or expenses in the period in which they arise. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rates at the date of transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

j Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the contracted rate.

Income from Sale of Entitlements from Wind Power Project is accounted for as and when sold and collection is certain.

There is no impact on account of applying the Ind AS 115 Revenue from Contract with Customers instead of erstwhile Ind AS 18 - Revneue on the Financial Statements of the Company for the year ended 31.03.19.

Interest Income - Interest income is recognised using Effective Interest Rate (EIR) method.

Income on Inter Corporate Deposits is accounted for on time accrual basis.

Dividend Income - Revenue is recognised when the Company’s right to receive the payment has been established.

k Financial instruments

i) Financial Assets

a Recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

A Financial asset is measured at amortized cost if it is held with objective to hold the asset in order to collect contractual cash flows as and when due.

A financial assets is measured at FVTOCI if it is held with an objective to achieve collecting contractual cash flows as and when due and selling financial assets.

A financial assets which is not classified under any of the above categories are measured at FVTPL. b Investment in Associates and Subsidiaries

The Company has accounted for its investments in associates and subsidiaries at cost. c Other Equity Investments

All other equity investments and equity instruments held for trading are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other Comprehensive Income’. d Impairment of financial assets

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed. e Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial assets are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

ii) Financial liabilities

Recognition and measurement - All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and a new financial liability with modified terms is recognised in the statement of profit and loss.

iii) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or realise the asset and settle the liability simultaneously. l Cash and Cash Equivalents

Cash and Cash Equivalents consist of cash on hand, cash at banks, demand deposits from banks and short term, highly liquid instruments.

m Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted aberage number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.

n Classification of current/ non current assets and liabilities

All assets and liabilities are presented as current or non current as per the Company''s normal operatin cycle and other criteria set out in Schedule III of the Companies Act,2013 and Ind AS 1 Presentation of financial statements. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of current / non current classification of assets and liabilities. o Measurement of fair values

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

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

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

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

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

p 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. The company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

1.5 ACCOUNTING JUDGEMENTS AND ESTIMATION OF UNCERTAINITY

a Depreciation and useful lives of Property, Plant and Equipment

Property, plant and equipment are depreciated over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets. The depreciation for future periods is revised if there are significant changes from previous estimates.

b Recoverability of trade receivable

Judgements are applied in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required.

c Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

d Defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

1.6 STANDARDS ISSUED BUT NOT YET EFFECTIVE

As on the date of approval of these financial statements, there were no new standards or amendments which have been notified but not yet adopted by the Company and expected to have any material impact on the financial statements of the Company.

Note **

1 Non Current Investment includes Quoted and Unquoted Equity Instruments.

The financial instruments are categorised into various levels based on the inputs used to arrive at fair value of measurements as described below:

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (inlcuding bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivates) is determined using valuation techniques which maximise the use ofobservable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in Level 3. c Financial risk management

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk;

¦ Liquidity risk; and

¦ Market risk

i Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

Trade Receivables of the Company mainly consist of receivables from the state utilities and other parties. In respect of receivable from the state utilities, all written off amounts during the past years and current year were pertaining to specific disputes and not related to credit risk. Hence, in the opinion of the management there is no credit loss on receivable from the state utilities.

In respect of Other Receivables, there is no past history of credit loss from these parties, hence there is no expected credit loss on such receivalbes

iii Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

39 No transactions to report against the following disclosure requirements as notified by MCA pursuant to amendment in Schedule III

i Crypto Currency or Virtual Currency

ii Benami property held under Prohibition of Benami Transactions Act, 1988 and rules made there under

iii Registration of Charges or satisfaction with Registrar of Companies

iv Related to borrowed funds:

a Wilful defaulter

b Utilisation of borrowed fund & share premium c Borrowings obtained on the basis of security of current assets d discrepancies in utilsation of borrowings e Current maturiy of long term borrowings

40 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 intermidiary Shall:

directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of Company (Ultimate beneficiaries) or security or the like to or on behalf of the Ultimate Beneficiaries

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 :

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

41 Previous year figures have been regrouped and / or reclassified wherever necessary.

Signatures to the Notes 1 to 41 forming part of the Standalone Balance Sheet as at 31.03.24 and the Standalone Statement of Profit and Loss Account for the year ended 31.03.24

As per our report of even date attached For and on behalf of the Board

For Batliboi & Purohit Dharmendra G. Siraj

Chartered Accountants (Chairman)

Firm Regn. No. 101048W DIN : 00022021

Chetan D. Mehra

(Vice Chairman &

Managing Director)

DIN - 00040805

Atul Mehta

Partner T. V. Subramanian

Membership No. 15935 (Chief Financial Officer

Mumbai, Dated : 28.05.24 & Company Secretary)

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Mar 31, 2016

l) Deferred Tax:

Deferred income tax is accounted for by computing the tax

effect on timing differences which arise during the year and capable of reversal in subsequent periods. m) Foreign Currency Transaction:

The transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Money items denominated in foreign currency outstanding at the yearend are translated at the yearend exchange rate and the unrealized exchange gain or loss is recognized in the profit and loss account.

3) Earnings in Foreign Exchange :

Sale of Entitlement from Wind Power : Rs. Nil (P.Y. - Rs. Nil) Expenditure in Foreign Exchange : Rs. Nil (P. Y. - Rs. Nil)

4) Disclosures required under Accounting Standard 15 "Employee Benefits as per Companies (Accounting Standards) Rules 2006 The Employee''s Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method.

5) Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is Nil.

6) DISCLOSURES AS PER REGULATION 34 (3) READ WITH SCHEDULE V OF SEBI LISTING REGULATIONS, 2015

a) Loans and Advances to Subsidiary Companies

b) Loans and Advances to Associate Companies - NIL

c) Loans and Advances to Companies / Firms in which Directors are interested (Excluding Subsidiary and Associate Companies) - NIL

d) Investment by the loanee in the shares of parent and subsidiary company - NIL

9) Related Party Disclosure for the year ended 31.03.2016

In accordance with the "Accounting Standard 18 - Related Party Disclosure", the details are as follows:

Key Management Personnel : Mr. Ganesh N. Kamath -Managing Director

conservative measure recorded the revenue for FY 2014-15 of the wind power generated and fed into the grid of the state utility, at a preferential tariff of Rs.2.52 per unit as fixed by MERC for sale of power to utilities from category of projects like that of the company.

Pursuant to a favorable disposal of the petition of the Wind Power Association by MERC on 08.02.2016 permitting sale of power to third parties under Open Access for FY 2014-15 and thereafter the state utility issuing approval for Open Access, the Company recorded the difference in revenue between sale of wind power to third parties under Open Success and recording of revenue at preferential tariff and the same is reflected at Rs. 519.59 lacs Net of Open Access Expenses under Exceptional Items in the Profit & Loss Account.

B Transactions with the related Parties (including transactions which are more than 10% of the total transactions of the same type with related

13) In respect of balances of Sundry Creditors / Debtors, Loans and Advances, Banks and Unsecured Loans / Inter Corporate Deposits confirmations were not received by the Company in few cases. In the opinion of management the balances as appearing in the books are fully payable / realizable, as the case may be, in the normal course of business.

14) Previous year figures have been regrouped and / or reclassified wherever necessary.

10) Joint Venture Disclosure

The company does not have any joint venture companies

11) Segment Information

The Primary Business activity of the Company is that of Generation of Power from Renewable Sources and hence there being only one reportable segment, segment reporting has not been furnished.

12) The company in respect of its 18 MW wind farm in the state of Maharashtra, as in past years had applied for open access approval to the state utility for sale of power to third parties in FY 2014-15. However the state utility unilaterally denied granting of open access to many wind farm developers including the company leading to a petition to be filed before State Electricity Regulatory Commission (MERC) through an Association of Wind Power Developers of which the Company is a member.

Pending disposal of the petition with MERC, the company as a

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Mar 31, 2015

1. Terms / rights attached to equity shares

a. The Company has only one class of equity shares having a par value of Rs.10/- per share.

b. Each holder of equity shares is entitled to one vote per share.

c. The dividend on equity shares proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

d. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the 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

e. The company has not issued any bonus shares or bought back the equity shares in the last 5 years immediately preceding the balance sheet date.

f. With respect to amalgamation of the Transferor company Avirodh Financial Services Ltd, the Company alloted 5561 equity shares of Rs.10/- each in the ratio of 1 Equity share of Rs10/- each of the Company for every 18 equity shares of Rs10/- each held by the Equity shareholders in the Transferor company.

Security against Term Loan from State Bank of India is charged on specific wind farm of 3.6 MW and guaranteed by Weizmann Ltd and Weizmann Forex Ltd

2. Security against Term Loans from Axis Bank Ltd is charged on receivables from specific wind farm of 18.0 MW

3. Security against Term Loan from Uco Bank is charged on receivables from specific wind farm of 7.0 MW

4. Security against Term Loan from Saraswat Co-op Bank Ltd is charged on specific vehicle

2) Contingent Liabilities: Rs Nil (Prev. Year - Rs. NIL)

3) Earnings in Foreign Exchange :

Sale of Entitlement from Wind Power : Rs Nil (Prev. Year - Rs. 127.84 Lakh)

Expenditure in Foreign Exchange : Rs Nil (Prev. Year - Rs. Nil)

4) Disclosures required under Accounting Standard 15 "Employee Benefits as per Companies (Accounting Standards) Rules 2006 The Employee's Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plant. The present value of obligation is determined based on acturial valuation using the projected unit credit method.

5) Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is Nil.

10)Joint Venture Disclosure

The company does not have any joint venture companies

11) Segment Information

The Primary Business activity of the Company is that of Generation of Power from Renewable Sources and hence there being only one reportable segment, segment reporting has not been furnished.

12) The company has, on the basis of expected life of Fixed Assets, as prescribed in Schedule II of the Companies Act, 2013, restated figures of Written Down Value of each of such fixed asset, as on 01.04.2014 and in accordance therewith the net difference arising there from aggregating to Rs.6.01 lac has been transferred to the retained earnings.

13) Exceptional item represents the difference of (i) an income of Rs.380.20 lacs being difference in tarriff for sale value of wind power sold to state power Distribution Licencee (DL) in Andhra Pradesh from January 2011 to March 2014 as per order dated 06.09.2014 issued by Hon'ble State Electricity Regulatory Commission and (ii) Net Present Value compensation of Rs.240.90 lacs paid to Sahyadri Tiger Reserve Conservation Foundation as per Order Dated 16.01.2015 of Hon'ble Supreme Court of India against which the Company has filed petition with Hon'ble Supreme Court of India.

14) The company in respect of its 18 MW wind farm in the state of Maharashtra, as in past years had applied for open access approval to the state utility for sale of power to third parties in FY 2014-15. However the state utility unilaterally denied granting of open access to many wind farm developers including the company leading to a petition to be filed before State Electricity Regulatory Commission (MERC) through an Association of Wind Power Developers of which the Company is a member.

The company had continued to feed the wind power generated into the grid of the state utility and had in the first quarter of the financial year on a conservative basis recorded the revenue from generation at the low preferential tariff of Rs.2.52 per unit. However, while the hearing on the petition was in process MERC announced a new Open Access Regulations incorporating most of the contentions of the State Utility for refusing open access for FY 2014-15. The Company considering the approach of MERC in interpreting the provisions of the Electricity Act and expecting long legal uncertainty decided to reverse the revenue recorded in the first quarter of FY 2014-15 and continued non recording of revenue from the said 18 MW wind farm.

In view of recent pronouncement of certain judgments on Open Access for Solar Energy by Appellate Tribunal for Electricity which is equally applicable to the contention of the Association in the subject petition before MERC and further since the MERC has finally heard the petition, pending judgment that may be in favour of the company, in the absence of receipt of the same at the time of finalization of the accounts for the financial year ended as at 31.03.2015, the Company without prejudice to the contentions in the said petition before MERC decided to record the revenue at the lower tariff at Rs.2.52 per unit as compared to better tariff that could be realized under open access in respect of its aforesaid wind farm.

15) An Association of Wind Power Generators of which the Company is the member has filed a petition before Hon'ble Maharashtra State Electricity Regulatory Commission on the matter of refusal to grant Open Access for sale of wind power to third parties by the State Utility for Fy 2014-15. Though hearing is completed, order is yet to be issued. If the order is in favour of the Association the Company would stand benefitted in realising higher revenue from sale of wind power to third parties from its 18 MW wind farm in state. If the decision is against the Association, there would not be any adverse impact as the company has recorded revenue for FY 2014-15 at lower tariff which would be realised.

An Association of Wind Power Generators of which the Company is a member is a respondent in a Civil appeal filed before Hon'ble Supreme Court of India by State Utility in Maharashtra in the matter of payment of interest on delayed remittance of wind power generation dues. The company had in the earlier years recorded such interest of Rs.201.99 lacs as directed to be paid by Hon'ble Appelate Tribunal for Electricity. In the event the Apex Court upholds the contention of state utility the said revenue recorded may have to be provided for.

The Company has filed an Impleading Application before Hon'ble Supreme Court of India in the matter of an Order issued by the Apex Court directing payment of Net Present Value (NPV) with Wild Life Authorities in respect of selected wind mills of the Company in Maharashtra. In compliance with the order of the Apex Court the Company has paid and charged to expenses in the financial statement an amount of Rs.240.90 lacs. If the Apex Court upholds the contention of the Company the said payment has to be recovered and credited to revenue.

16) In respect of balances of Sundry Creditors / Debtors, Loans and Advances, Banks and Unsecured Loans / Inter Corporate Deposits confirmations were not received by the Company in few cases. In the opinion of management the balances as appearing in the books are fully payable / realisable, as the case may be, in the normal course of business.

17) Previous year figures have been regrouped and / or reclassified wherever necessary.

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Mar 31, 2014

1) Contingent Liabilities: Rs Nil (Prev. Year - Rs. NIL)

2) Earnings in Foreign Exchange :

Sale of Entitlement from Wind Power :

Rs 127.84 Lakh (Prev. Year - Rs. 90.78 Lakh)

Expenditure in Foreign Exchange : Rs Nil (Prev. Year - Rs. Nil)

3) Disclosures required under Accounting Standard 15 "Employee Benefits as per Companies (Accounting Standards) Rules 2006

The Employee''s Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plant. The present value of obligation is determined based on acturial valuation using the projected unit credit method.

4) Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is Nil.

c) Loans and Advances to Companies / Firms in which Directors are interested (Excluding Subsidiary and Associate Companies) - NIL

d) Investment by the loanee in the shares of parent and subsidiary company - NIL

9) Related Party Disclosure for the year ended 31.03.2013

In accordance with the "Accounting Standard 18 - Related Party Disclosure", the details are as follows:

A Related Party and their RelationshiD Subsidiaries

Almi Hydro Electric Projects Limited Baledh Energy Projects Limited Batot Hydro Power Limited Brahmanvel Energy Limited Greenweiz Projects Limited Joiner Hydro Power Projects Limited Khandesh Energy Projects Limited Vajharpada Energy Limited

Joint venture :

Weizmann Energy Ltd Associates

Parmatma Power Projects Pvt Ltd

Weizmann Corporate Services Ltd

upto 21.03.2014 upto 07.03.2014 wef 30.11.2013

Key Management Personnel :

Mr.Ganesh N.Kamath Managing Director

5) In respect of balances of Sundry Creditors / Debtors, Loans and Advances, Banks and Unsecured Loans / Inter Corporate Deposits confirmations were not received by the Company in few cases. In the opinion of management the balances as appearing in the books are fully payable / realisable, as the case may be, in the normal course of business.

6) Segment Information

The Primary Business activity of the Company is that of Generation of Power from Renewable Sources and hence there being only one reportable segment, segment reporting has not been furnished.

7) Previous year figures have been regrouped and / or reclassified wherever necessary.

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Mar 31, 2013

1) Contingent Liabilities: Rs Nil (Prev. Year - Rs. NIL )

2) Consequent to the petition filed by Central Power Distribution Company of A.P. Ltd (APCPDCL), the distribution licensee, Andhra Pradesh Electricity Regulatory Commission (APERC) dated 16.11.2012 reviewed its earlier tariff order of Rs.3.37 per unit and fixed interim ad-hoc rate of Rs.1.69 per unit for the wind power supplied by the company. In view of the said order, amount unpaid for sale of power by APCPDCL for the period January 2011 to March 2012 the company reversed the portion of sale of wind power being difference of Rs.3.37 per unit to ad-hoc tariff of Rs.1.69 per unit totalling to Rs.127.28 lac and is shown as exceptional item. Further adjustments, if any, would be given effect to on APERC issuing the final order in the matter.

3) Earnings in Foreign Exchange :

Sale of Entitlement from Wind Power : Rs 90.78 Lac (Prev. Year - Rs. Nil)

Expenditure in Foreign Exchange : Rs Nil (Prev. Year - Rs. Nil )

4) Disclosures required under Accounting Standard 15 "Employee Benefits as per Companies (Accounting Standards) Rules 2006

The Employee''s Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plant. The present value of obligation is determined based on acturial valuation using the projected unit credit method.

5) Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is Nil.

6) In respect of balances of Sundry Creditors / Debtors, Loans and Advances, Banks and Unsecured Loans / Inter Corporate Deposits confirmations were not received by the Company in few cases. In the opinion of management the balances as appearing in the books are fully payable / realisable, as the case may be, in the normal course of business.

7) Segment Information

The Primary Business activity of the Company is that of Generation of Power from Renewable Sources and hence there being only one reportable segment, segment reporting has not been furnished.

8) Previous year figures have been regrouped and / or reclassified wherever necessary.

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Mar 31, 2012

1) Pursuant to the scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956, sanctioned by The Honorable High Court of Bombay on 13.04.2012, the company Avirodh Financial Services Limited (Transferor Company) stands amalgamated with the company w.e.f. 01.04.2011. Accordingly, the Assets and Liabilities of the said Transferor Company stands vested in the Company and the transaction post 1st April,2011 have been incorporated in the accounts of the Company. Consequently, the figures for the year are not comparable with those of the previous year.

With respect to amalgamation of the Transferor company Avirodh Financial Services Limited, the Company proposes to issue and allot 5561 equity shares of Rs.10/- each computed in the ratio of 1 Equity shares of Rs.10/- each of the Company for every 18 equity shares of Rs.10/- each in the Transferor Company Avirodh Financial Services Limited held by the Equity shareholders of the Transferor company on the record date. The net increase in Paid up Capital after the proposed allotment as above is represented as "Share Capital Suspense" under Share Capital in the Accounts. The difference between the consideration to the shareholders of the Transferor Company and net assets of the Transferor Company acquired is represented as Capital Reserve on Amalgamation account at Rs.9.45 lakh as per the scheme approved by Honorable High Court of Bombay.

2) Contingent Liabilities: Rs Nil (Prev. Year - Rs. NIL)

3) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 15.54 lakh (Prev. Year - Rs.131.07 lakh).

4) Earnings in Foreign Exchange :

Sale of Entitlement from Wind Power : Rs Nil (Prev. Year - Rs. 153.38 Lakh).

Expenditure in Foreign Exchange : Rs Nil (Prev. Year - Rs. NIL)

5) Disclosures required under Accounting Standard 15 "Employee Benefits as per Companies (Accounting Standards) Rules 2006.

The company has covered its gratuity liabilities with Life Insurance Corporation of India w.e.f. 01.04.2011. On follow up with LIC for statement under AS 15, the company has been informed by them that as per their system though the company would be paying the premium annually on the Annual Renewal date as per their notice, the information as per AS 15 can be obtained from their system only after the fund subsists for minimum three years.

Therefore, the disclosure required under AS 15 has not been given even though the liability has been provided for as per their Annual renewal notice.

6) Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is Nil.

7) In respect of balances of Sundry Creditors / Debtors, Loans and Advances, Banks and Unsecured Loans / Inter Corporate Deposits confirmations were not received by the Company in few cases. In the opinion of management the balances as appearing in the books are fully payable / realisable, as the case may be, in the normal course of business.

8) Segment Information

The Primary Business activity of the Company is that of Generation of Power from Renewable Sources and hence there being only one reportable segment, segment reporting has not been furnished.

9) Previous year figures have been regrouped and / or reclassified wherever necessary to correspond with current year's classification / disclosure in consonance with the revised schedule VI of the Companies Act, 1956.