Notes to Accounts of SRM Energy Ltd.

Mar 31, 2024

3.4 Provisions

Provisions are recognised when the Company has a present
legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating
losses. Provision are measured at the present value of

management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. Provisions are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.

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

3.5 Contingent liabilities, contingent assets and
commitments

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or a present obligation that
arises from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
notes to the standalone financial statements
Contingent assets are not recognized in the standalone
financial statements. However, it is disclosed only when
an inflow of economic benefits is probable.
Commitments include the amount of purchase order (net
of advances) issued to parties for completion of assets.

3.6 Employee benefits

(i) Short-term employee benefits:

All employee benefits payable wholly within twelve months
of rendering the service are classified as short-term
employee benefits. All short-term employee benefits are
accounted on undiscounted basis during the accounting
period based on services rendered by employees and
recognized as expenses in the standalone statement of
profit and loss unless related to the project in which case
they are capitalized. A liability is recognised for the amount
expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation
can be estimated reliably. These benefits include salary
and wages, bonus, performance incentives, etc.

(ii) Long-term employee benefits (Post-employment
benefits):

Defined benefit plans - Gratuity:

The liability recognised in the balance sheet is the present
value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value is determined by discounting the
estimated future cash outflows by reference to market
yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expense in the standalone statement
of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income. They are included in
retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service
cost.

(iii) Other benefits (Compensated absences):

Accumulated compensated absences, which are expected
to be availed or encashed within 12 months from the end
of the year end are treated as short term employee benefits.
The obligation towards the same is measured at the
expected cost of accumulating compensated absences
as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected
to be availed or encashed beyond 12 months from the
end of the year end are treated as other long term
employee benefits. The obligations are presented as
current liabilities in the balance sheet if the entity does
not have an unconditional right to defer settlement for at
least twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

3.7 Earnings per share

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

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.

3.8 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision Maker.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis
presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the
change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the Defined Benefit Obligation as recognised in the balance sheet.

Risk exposures: Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability
requiring higher provision.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
Asset Liability matching risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out
based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does
not have any longevity risk.

During the year, there were no plan amendments, curtailments and settlements.

(ii) The obligation for compensated absences cover the Company''s liability for earned leave. The Company during the year
has recognised compensated absences expense amounting to charge of Rs. 0.64 lakhs (31 March 2023: Rs. Nil) disclosed
under Employee benefits expense (refer note 16).

Fair value hierarchy

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

Level 2: Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity
risk (refer note (c) below); market risk (refer note (d) below).

(a) 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''s board 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.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk comprises
the carrying amounts of the financial assets. The Company''s exposure to credit risk arises mainly from cash and cash
equivalents and loans.

Cash and cash equivalents

Credit risk on cash and cash equivalent is not significant as it majorly includes deposits with banks with high credit ratings
assigned by credit rating agencies. Management does not expect any losses from non-performance by these counterparties.
Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes security deposits. Credit risk related to these is managed by
monitoring the recoverability of such amounts continuously. The expected credit loss on these financial instruments is
expected to be insignificant.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The cash flows from
operating activities are driven primarily by operating results and changes in the working capital requirements.

The table below provides details of financial liabilities further, based on contractual undiscounted payments.

26 Segment information

The Company is engaged into one reportable business segment i.e. ''generation of power”. No other operating segment
has been aggregated to form the above reportable operating segment. Accordingly, the disclosure requirements of Ind AS
- 108, Operating Segments notified under section 133 of the Companies Act, 2013 are not applicable.

27 Dues to micro and small enterprises

There are no dues outstanding to micro and small enterprises as at the end of reporting years. The information regarding
micro and small enterprises has been determined to the extent such parties have been identified on the basis of
information available with the Company. This has been relied upon by the auditors.

29 Subsequent events

There are no subsequent events that have occurred after the reporting period till the date of these standalone financial statements.

30 Other statutory information

i) Details of benami property held: 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) Wilful defaulter: The Company is not declared wilful defaulter by any bank or Financial institution or other lender during
the year.

iii) Relationship with struck off companies:The Company does not have any transactions with companies struck off.

iv) Registration of charges or satisfaction with Registrar of Companies (ROC):The Company does not have any charges or
satisfaction which is yet to be registered with ROC beyond the statutory period.

v) Borrowings secured against current assets:The Company does not have borrowings from banks or financial institutions on the
basis of security of current assets.

vi) Utilisation of borrowed funds and share premium:

A. 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.

B. 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) Compliance with number of layers of companies: The Company has complied with the requirements of the number of layers
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers)

Rules, 2017.

_viii) Valuation of Property, Plant and Equipment or Intangible Assets: The Company does not have any property, plant and equipment
or intangible assets, thus, disclosures relating to revaluation of property, plant and equipment or intangible assets is not
applicable.

ix) Loans or advances in the nature of loans to specified persons: The Company has not granted any loans or advances in the
nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) that are: (a)
repayable on demand or (b) without specifying any terms or period of repayment during the year.

_x) Compliance with approved Scheme of Arrangement: The Company has not entered into any scheme of arrangement which has
an accounting impact on current or previous financial year.

31 Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year. The Company has also not received any deposits or advances from any person for the purpose of trading
or investing in Crypto Currency or Virtual Currency.

32 Undisclosed income:The Company does not have not 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.

33 Corporate Social Responsibility: The Company does not fulfil the criteria as as specified under section 135(1) of the Act read

with the Companies (Corporate Social Responsibility Policy) Rules, 2014. Accordingly, provisions of section 135 of the Act
are not applicable to the Company.

34 In the opinion of the board of directors, assets, loans and advances have a value on realization in the ordinary course of the
business at least equal to the amounts at which they are stated and provision for all known liabilities have been made.

35 The Company did not have any long-term contracts including derivative contracts for which there were any foreseeable
losses as at 31 March 2024.

36 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2024.

37 Previous year''s figures

Previous year''s figures have been regrouped / restated / reclassified, wherever necessary, to confirm to the current year''s
presentation.

As per our report of even date attached For & on behalf of the board of directors

SRM Energy Limited

For Saini Pati Shah & Co LLP

Chartered Accountants Sharad Rastogi Vijay Kumar Sharma

Firm Registration No. 137904W/W100622 Whole-time Director Director

DIN:09828931 DIN:03272034

Ankush Shah

Partner Pankaj Gupta Raman Kumar Mallick

Membership No. 145370 Company Secretary Chief Financial Officer

UDIN: 24145370BKFVDD1264 and Compliance Officer

Place : Mumbai Membership No. A63088

Date : 28/05/2024

Place : New Delhi
Date : 28/05/2024

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Mar 31, 2015

1 CORPORATE INFORMATION

SRM Energy Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company has been engaged in setting up Thermal power project in its wholly owned subsidary.

d Terms / rights attached to equity shares

The Company has only one class of Equity Shares having a par value of Rs 10 per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

2. Capital and other commitments

i) Estimated amount of contract remaining to be executed on capital account net of advances paid as at 31/03/2015 : Nil (Previous year: Nil)

3. Contingent Liabilities:

4. Disputed dues of income tax due to non/late deposit of TDS for the assessment years 2003-04 to 2006-07: Rs 0.73 million/- (Previous year - Rs 0.73 million)

5. There has been an instance of non-compliance of Section 295 and 297 of Companies Act, 1956 in 2007-08 for which compounding application has been filed with Company Law Board.

6. CIF VALUE OF IMPORTS, EXPENDITURE, REMITTANCES AND EARNINGS IN FOREIGN CURRENCY - Nil

7. Segment Reporting :

The Company has been engaged in setting up Thermal power project, in its wholly owned subsidary, which at present, constitutes its single operating segment as per AS-17 on 'Segment Reporting'.

8. Related Party Transactions as per Accounting Standard - 18:

A. List of Related Parties

1) Holding Company: Spice Energy Pvt. Ltd

2) Subsidiaries: SRM Energy Tamilnadu Pvt. Ltd. (Wholly owned subsidiary)

3) Key Management Personnel:

Mr. Vishal Rastogi Managing Director

Mr. Gagan Rastogi Director (Resigned on November 14, 2014)

9. Deferred Tax:

Deferred tax asset has not been recognized considering the principle of virtual certainty as per Accounting Standard -22 'Accounting for Taxes on Income'.

10. Disclosure as required under AS-19 :

Disclosure as required under AS - 19 "Accounting for Leases" as prescribed under Companies (Accounting Standards) Rules, 2006 is given below:

(a) The Company has entered into cancellable / non-cancellable leasing agreement for office premises renewable by mutual consent on mutually agreeable terms.

(b) Future minimum lease payments under non-cancellable operating lease are as under:

11. In the opinion of the management, the realizable value of Current Assets, loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities are adequately made.

12. Going Concern

Though the Company's net worth has been significantly reduced and it has been incurring Cash Losses, the promoters have infused funds by way of unsecured loan and are committed to provide necessary funding to meet the liabilities and future running expenses of the company. Further,the Board of Directors of the Company, in its meeting held on March 09, 2015 have decided to sell/dispose off the Power plant transferred in its wholly owned subsidiary, subject to necessary approvals from the shareholders and other statutory authorities, if any. In view of above development, the accounts have been prepared under going concern basis.

13. Information Pertaining To Loans And Guarantees Given To Subsidiaries (Information Pursuant To Clause 32 Of Listing Agreements With Stock Exchanges And Section 186 Of The Companies Act, 2013):

14. Previous year figures have been regrouped and rearranged wherever necessary, to make them comparable to those for the current year. Figures in bracket indicate previous year's figures.

15. Figures are rounded off to the million.@'-represents figures less than Rs. 5,000 which have been shown at actual in brackets with @.

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Mar 31, 2014

1 CORPORATE INFORMATION

SRM Energy Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The company is in the process of setting up the Thermal Power Project in variious parts of India particularly in Maharashtra, Eastern India.

2.SCHEME OF ARRANGEMENT :

The Board of Directors in their meeting held on October 18, 2013 has approved the effect of the orders of the Hon''ble Bombay High Court dated 3rd September 2013, (which was filed with the Registrar of Companies on 11th October 2013 - the Effective date) approving the Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 for hive off of the Cuddalore Power Division of the Company to the SRM Energy Tamilnadu Private Limited,with effect from 1st April 2012 (the "Appointed Date"), Accordingly all the assets and liabilities of the Cuddalore Power Division of the Company at book value as on 01.04.2012 along with increase or decrease thereafter were transferred to the SRM Energy Tamilnadu Private Limited. However, the formalities of transfer of properties, assets, consents, approvals, sanctions, licenses, contracts etc pertaining to the Cuddalore Power Division in the name of the SRM Energy Tamilnadu Private Limited are in progress.

3 SHARE CAPITAL

The shareholders of the Company have given their approval for increase of Authorised Capital to Rs.15 million pursuant a resolution passed on August 13, 2010 through postal ballot. The process with Registrar of Companies is underway to increase the same.

b 6.45 million (Previous year 6.45 million) Equity Shares are held by the Holding Company - Spice Energy Pvt. Ltd. c Details of Equity Shares issued for consideration other than cash during the period of last five years:

e Terms / rights attached to equity shares

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

4 Capital work in Progress

The Company is in the process of setting up the Thermal Power Projects in various parts of the Country, particularly in Maharashtra and Eastern India. During the year, company has not incurred any expenses related to project.

5 Capital and other commitments

i) Estimated amount of contract remaining to be executed on capital account net of advances paid as at 31/03/2014 : Nil (Previous year: Nil)

6 Contingent Liabilities:

6.1 Disputed dues of Income tax due to non/late deposit of TDS for the assessment years 2003-04 to 2006-07: Rs.0.73 million/- (Previous year - Rs.0.73 million)

6.2 There has been an instance of non-compliance of Section 295 of Companies Act in 2007-08 for which compounding apllication has been filed with Company Law Board.

In assessing the Companies Post retirement liabilities, the Company monitors mortality assumptions and uses up to date mortality tables, the base being the LIC 1994-96 ultimate tables.

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

7 Segment Reporting :

The Company is in the process of setting up Thermal Power Project, which in the context of AS-17 on ''Segment Reporting'', constitutes single operating segment.

8 Related Party Transactions as per Accounting Standard - 18:

A. List of Related Parties

1) Holding Company:

Spice Energy Pvt. Ltd

2) Subsidiaries:

SRM Energy Tamilnadu Pvt. Ltd. (Wholly owned subsidiary)

3) Key Management Personnel :

Vishal Rastogi Managing Director w.e.f February 21, 2014 Gagan Rastogi Director

D. Sundararajan Managing Director & CEO up to February 11,2014

4) Enterprises over which key management personnel and relatives of such personnel exercise significant influence

Sovinchem Industries Pvt. Ltd.

9 Deferred Tax:

Deferred tax asset has not been recognized considering the principle of virtual certainity as per Accounting Standard -22 ''Accounting for Taxes on Income''.

10 In the opinion of the management, the realizable value of Current Assets, loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities are adequately made.

11 Going Concern

Though the Company''s net worth has been substantially eroded and the Company has been incurring Cash Losses, the management is of strong view that that the Company would turnaround with power project of the Wholly Owned Subsidiary getting operational. The Company also intends to restart the projects in Maharashtra and Eastern India. The Company''s present assets are adequate to meet the liabilities. The Promoters are also committed to provide necessary funding to meet the liabilities and have provided Rs.5.12 million as unsecured loan till March 31,2014. Accordingly, the accounts have been drawn under the going concern assumption. However, there is a material uncertainty based in the above facts that may cast significant doubt on the Company''s ability to continue as a Going Concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business.

12 Previous year figures have been regrouped and rearranged wherever necessary.

13 Figures are rounded off to the million.

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Mar 31, 2013

1 CORPORATE INFORMATION

SRM Energy Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company is in the process of setting up the Thermal Power Project in various parts of India particularly in Maharashtra and Eastern India.

2 CAPITAL AND OTHER COMMITMENTS

i) Estimated amount of contract remaining to be executed on capital account net of advances paid as at 31/03/2013 : Nil (Previous yean Nil)

3 CONTINGENT LIABILITIES

3.1 Disputed dues of Income tax due to non/late deposit of TDS for the assessment years 2003-04 to 2006-07: Rs. 0.73 million (Previous year - Rs. 0.73 million)

3.2 There has been an instance of non-compliance of Section 295 of Companies Act in 2007-08 for which compounding application has been filed with Company Law Board

In assessing the Companies Post retirement liabilities, the Company monitors mortality assumptions and uses . up to date mortality tables, the base being the LIC 1994-96 ultimate tables.

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

4 SEGEMENT REPORTING

The Company is in the process of setting up Thermal Power Projects, which in the context of AS-17 on ''Segment Reporting'', constitutes single operating segment.

5 RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD - 18:

A. List of Related Parties

1) Holding Company:

Spice Energy Pvt. Ltd

2) Subsidiaries:

SRM Energy Tamilnadu Pvt. Ltd.

3) Key Management Personnel :

Gagan Rastogi Director D. Sundararajan Managing Director & CEO

4) Enterprises over which key management personnel and relatives of such personnel exercise significant influence [Parties with whom the Company has entered into transactions during the year]

Sovinchem Industries Pvt. Ltd.

Note: Please refer note no. 4 for transactions with wholly owned subsidiary -SRM Energy Tamilnadu Pvt. Ltd. as per the Scheme of Arrangement.

6 Particulars of Derivative Instruments as at March 31, 2013 :

i) No derivative instruments are acquired for hedging purposes.

ii) No derivative instruments are acquired for speculation purposes.

iii) Foreign currency exposures that are not hedged by derivative instruments or otherwise are :

- Capital advance of nil (previous year USD 0.10 million)

7 In the opinion of the management, the realizable value of Current Assets, loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities are adequately made.

8 Going Concern

Though the Company''s net worth has been substantially eroded and the Company has been incurring Cash Losses, the management is of strong view that that the Company would turnaround with power project of the Wholly Owned Subsidiary getting operational. The Company also intends to restart the projects in Maharashtra and Eastern India. The Company''s present assets are adequate to meet the liabilities. The Promoters are also committed to provide necessary funding to meet the liabilities and have provided Rs. 2.42 million as unsecured loan till March 31, 2013. Accordingly, the accounts have been drawn under the going concern assumption. However, there is a material uncertainty based in the above facts that may cast significant doubt on the Company''s ability to continue as a Going Concern and therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business.

9 Previous year figures have been regrouped and rearranged wherever necessary. However, the previous year figures are not comparable since it includes figures of the Cuddalore Power Division, which has been since hived off to Company''s Wholly Owned Subsidiary, as per the Scheme of Arrangement approved by the Hon''ble Bombay High Court.

10 Figures are rounded off to the million.

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Mar 31, 2012

1 Corporate Information

SRM Energy Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The company is in the process of setting up the Thermal Power Project of 3x660 MW i.e. 1980 MW capacity in Tamilnadu.

2 Capital and other commitments

i) Estimated amount of contract remaining to be executed on capital account net of advances paid as at 31/ 03/2012 : Nil and as at 31/03/2011 : Nil

ii) For commitment relating to lease arrangements, please Refer Note 23 below.

3 Contingent Liabilities:

Disputed dues of Income tax due to non/late deposit of TDS for the assessment years 2003-04 to 2006-07: t 0.73 million (Previous year - Rs. 1.07 million)

4 Capital work in Progress

The Company is in the process of setting up the Thermal Power Project of 3x660 MW i.e. 1980 MW capacity in Tamil Nadu. As such the related expenses incurred during the current year as per details below are considered as pre operative expenses pending capitalization (included under Capital Work in Progress) and will be apportioned to the assets on completion of the project: .

5 Segment Reporting :

The Company is in the process of setting up Power Project in the state of Tamilnadu, which in the context of AS- 17 on Segment Reporting', constitutes single operating segment.

Deferred tax Asset has not been recognized considering the principle of virtual certainty as per Accounting Standard -22 Accounting for Taxes on Income'.

6 During the previous year, the Company has acquired a wholly-owned subsidiary Company, SRM Energy Tamil Nadu Private limited which has not commenced its operating activities. The Management is evaluating the option of transferring its Cuddalore Power Division to this subsidiary after successful completion of the proposed Rights Issue.

7 Information relating to Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and the required disclosures are given below.

8 Going Concern

Though the Company's net worth has been substantially eroded and the Company has been incurring cash losses, the management is of the strong view that the Company would turnaround with the completion of rights issue and the power project getting operational. The Company's present assets are adequate to meet the Company's liabilities. The Promoter is also committed to provide necessary funding to meet the Company's liabilities and has also paid Rs. 498.20 million as share application money. Accordingly, the accounts have been drawn under the going concern assumption.

9 In the opinion of the management, the realizable value of Current Assets, loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities are adequately made.

10 Proposed Right Issue

The Company had filed Draft Letter of Offer to the Security Exchange Board of India (SEBI) for its proposed right issue on August 17, 2010. SEBI gave final observation vide letter dated February 8, 2011 but did not allow adjustment of Unsecured Loan brought in by the promoters against their Rights entitlement. The Company went on appeal to Securities Appellate Tribunal (SAT) and SAT vide its order dated June 6, 2011 allowed adjustment of funds brought in by the promoters against their entitlement and also against renunciations in the right issue. Subsequent to the SAT order, the Company filed Final Letter of Offer for Rights Issue at par on June 17, 2011 with SEBI for raising t 589 million.

SEBI vide its letter No. CFD/DIL/ISSUES/SP/RG/OW/3382/2012 dated February 7, 2012 informed our Merchant Banker that, as Cals Refineries Ltd.(Cals). a group Company, with a Common Promoter has been directed not to issue any equity shares or alter their capital structure in any manner till further directions in this regard, the Company is not satisfying the eligibility criteria as provided in Regulation 4(2)(a) and 4(2)(b) of the ICDR regulations and hence is not eligible to proceed with the Rights Issue till directions against Cals are in force. The Company filed an appeal to SAT on March 26, 2012 against the aforesaid direction of SEBI. The order of SAT is awaited. In the meanwhile, the Board has approved increase in amount of right issue up to Rs. 900 million. The Company intends to go ahead with right issue on receiving favorable order from SAT or when Cals is exonerated from the charges whichever is earlier.

11 Particulars of Derivative Instruments as at March 31, 2012 :

i) No derivative instruments are acquired for hedging purposes.

ii) No derivative instruments are acquired for speculation purposes

iii) Foreign currency exposures that are not hedged by derivative instruments or otherwise are :

- Capital advance of USD 0.10 million (previous year USD 0.10 million)

12 Previous year figures have been regrouped and rearranged wherever necessary.

13 Figures are rounded off to the million.

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Mar 31, 2011

1. Business Activities

The company is in the process of setting up the Thermal Power Project of 3* 660 MW i.e 1980MW capacities in Tamilnadu. As such the related expenses incurred during the current year as per details below are considered as pre operative expenses pending capitalization (included under Capital Work in Progress) and will be apportioned to the assets on completion of the project:

2. Contingent Liabilities not provided for (Amount in Rs.)

Sr. No. Particulars 2011 2009-10

I Disputed dues of Income tax due to non/late deposit of TDS for the assessment years 2003-04 to 2006-07 1,066,022 - 3. Capital Commitment

Estimated amount of contracts remaining to be executed on capital account (net of advances)and not provided for in the accounts as at 31.3.2011: Nil (Previous year: Nil).

4. In the opinion of the Board, the realizable value of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known and determined liabilities are adequately made.

5. Segment Reporting :

The Company is in the process of setting up Power Project, which in the context.of AS-17 on Segment Reporting, constitutes single operating segment.

6. Disclosure as required by Accounting Standard (AS) -19 are as follows:

The company has taken office premises under leave and license agreement against refundable interest free deposit. These are generally cancellable and are renewable by mutual consent on mutually agreed terms. The obligation towards non-cancellable leases are as under: (Amount in)

7. Going Concern:

Though the Companys net worth has been substantially eroded, earlier businesses have been discontinued and the Company has been incurring cash losses, the management is of the strong view that once the power project, which is being set up by the Company gets going, the Company would have a turnaround. Even otherwise, the Companys present assets are adequate to meets its liabilities. The promoter is also committed to provide necessary funding to meet Companys Liabilities. Accordingly the accounts have been drawn under going concern assumption.-

8. During the year, the Company has acquired a wholly-owned subsidiary Company, SRM Energy Tamil Nadu Private Limited, which has not commenced its operating activities. The Management is evaluating the option of transferring its Cuddalore Power Division to this subsidiary after successful completion of the proposed Rights Issue.

9. Based on the information available with the company, both the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 and interest paid / payable during the year under the terms of said act under the terms of MSMED Act are Nil (previous year Nil).

16. Previous year figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2010

1. The company is in the process of setting up the Thermal Power Project of 1600 MW - 2000 MW capacities in Tamilnadu. As such the related expenses incurred during the current year as per details below are considered as pre operative expenses pending capitalization (included under Capital Work in Progress) and will be apportioned to the assets on completion of the project:

2. Contingent Liabilities:

Arrears of preference dividend for the years from 1989-90 to 1996-97 amounting to Rs. 2,400,000/ - (previous year Rs. -2,400,000/-).

3. During the year 2007-08, the Company has hived off its Non-woven Fabric Business comprising of manufacturing and marketing activities of the Company in respect of manufacture of Needle punched, non-woven fabrics along with all the assets and liabilities by way of a Slump Sale on a going concern basis to Hitkari Hi Tech Filters Private Ltd.(now known as Hitkari Fibres Pvt. Ltd.) as per Slump Sale Agreement dated 18-03-2008. Accordingly, all the assets and liabilities including materially known contingent liabilities and disputed dues and employees related to the said business of the Company as on 18-3-2008 have been transferred to Hitkari Hi Tech Fibres Pvt. Ltd. The necessary formalities for changing / transferring the name in respect to disputed dues of Sales Tax & Excise are under process.

4. The disclosure required as per AS -15, Employees Benefit, issued by ICAI are as under: The Company has classified the various benefits provided to employees as under: (i) Defined Contribution plans --Nil—

5. Segmental Reporting as per Accounting Standard (AS) -17 issued by ICAI: In the opinion of management, as the Company has already hived off its fibres business as explained in note no 3 above and is now in process of setting up Power Project, it operates in one segment only, separate segment wise reporting is not required.

6. Based on the information available with the company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is Nil (previous year nil). Further, no interest during the period has been paid or payable under the terms of the MSMED Act, 2006. (previous year nil).

7. Going Concern

Though the Companys net worth has been substantially eroded, earlier businesses have been discontinued and the Company has been incurring cash losses, the management is of the strong view that once the power project, which is being set up by the Company gets going, the Company would have a turnaround. Even otherwise, the Companys present assets are adequate to meets its liabilities. The management is also committed to provide necessary funding to meet Companys Liabilities. Accordingly the accounts have been drawn under going concern assumption.

8. Figures for the previous year have been regrouped / rearranged wherever necessary to confirm to this year of classification.

9. Figures are rounded off to the nearest rupee.