Notes to Accounts of Starlit Power Systems Ltd.

Mar 31, 2023

PROVISION AND CONTIGENT LIABILTY ASSEST

(i) Foreign currency transactions denominated in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transaction.

(ii) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying
assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset.
Other interest and borrowing costs are charged to revenue.

(iii) In case of the new industrial unit, all the operating expenditure (including borrowing costs)
specifically for the project, incurred up to the date of installation, is capitalized and added pro-rata to
the cost of fixed assets.

(iv) Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to
the buyer. Gross revenue from operations comprises of sale of products and others operating incomes.
Excise duty in not applicable on the finished goods manufactured by the company.

(v) In the opinion of the company''s Management, there is no impairment to the assets to which Indian
Accounting Standard 36 “Impairment of Assets" applied requiring any revenue recognition.

(vi) Earnings per share

Basic Earnings per equity share is computed by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
financial year. Diluted earnings per equity share is computed by dividing the net profit or loss
attributable to equity shareholders 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.

(vii) Statement of Cash Flow

Cash flows are reported using the indirect method prescribed in IND AS 7 ''Statement of Cash Flows'',
whereby profit for the year 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 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.

(viii) Certain balances of debtors, creditor''s, loans and advances are subject to confirmation from
parties. No significant impact is expected on profit and loss account on this account. Effect of the same
will be adjusted at the time of confirmation.

(ix) As per information and explanation given to us there are no Benami Properties in the company.

(x) As explained to us by the management, the company is not declared a willful defaulter by any
financial institution.

(xi) As per the information & Explanation given to us, the Company has not traded or invested in crypto
currency or virtual currency.

(xii) The figures of previous year have been recast/re-grouped to conform to the classification required
wherever necessary to make from comparable with the figure of the current year.

(xiii) In the opinion of Board, current assets loans and advances have a realizable value equivalent to the
amount at which they are stated in the Balance Sheet and the provision for all known liabilities have
been made except to the extent appearing in the annexure to accounting policies and general notes
forming part of these financial statements.

(xiv) Company has not disclosed or surrendered any income which were not disclosed in earlier year
under the relevant provision of Income Tax Act,1961.

(xv) Related Party Disclosures